Abebe Ayalew Balcha and Gemechu Abdisa
Purpose: Small and medium business enterprises had an extensive roles to home-grown employments and inclusive gross of domestic product in developing countries like Ethiopia. This study intends to scrutinize the current determinant factors that affects the growth of small and medium enterprise in Ethiopia where the Case is the Oromia regional state, Ambo Town. Currently, there are crucial factors like coronavirus, and political instability which created room for immense corruption in Ethiopia are concurrently affects the growth of SMEs. These issues have decisive implications on the sustainability of SMEs in Ethiopia.
Research methodology: To this end, the researcher used descriptive and explanatory research designs.
Findings: The results of empirical analysis show that currently, political instability, corruption, and COVID-19 had negatively affected the the grorth of SMEs. Hence, the study strongly supports sequential policy reform in the region and also recommends review of the ongoing policies towards ensuring effective control of corruption in the region and bringing stability of political enviromets.
Research Limitations: The study sample did not represent all the SMEs in the Ethiopian country. It had predominantly focused on the SMEs found in only one region of specific zonal town of the country. Therefore, future research has to consider SMEs found in the all ten regions of the country.
Practical Implications: This outcome has substantial theoretical implications since it advocates that when firm performance is measured corruptions and political instability should be distinguished. Any concrete analysis of this room which does not reflect these two factors, will neglect foremost variables, leading to a partial guesstimate of the performance of firms.
Originality/Value: The originality of the study lies in the presented practical methodology to identifying the current trends and challenges that mostly affect the Sustainable Growth of Small and medium enterprises and modeling the process of responding to this effects