Factors Determining Entrepreneurial Passion of Micro and Small Enterprises at the Municipal Level: The Case of Dire Dawa City in Ethiopia

Markos Belayhun Dessie

Journal of Applied Economic Research, 2025, vol. 24, issue 1, 257-286

Abstract: This study explores the factors determining entrepreneurial passion among Micro and Small Enterprises (MSEs) in the service and industrial sectors of Dire Dawa, Ethiopia. The research investigates the extent of entrepreneurial passion among MSE operators, identifies key personal, environmental, and institutional factors, and analyzes their impact on the success, growth, and sustainability of MSEs. The purpose of the study is to understand how these factors shape entrepreneurial passion, identify key drivers and barriers and offer practical recommendations for enhancing MSE performance. Utilizing a mixed-methods approach, both quantitative and qualitative data were collected from 248 MSE operators selected via stratified sampling across five sectors. The findings reveal a strong sense of passion, motivation, and emotional commitment, primarily driven by financial independence, growth opportunities, creativity, and resilience in overcoming challenges. Regression analysis highlights the significant role of personal characteristics such as age, education, prior experience, and risk-taking propensity in fostering entrepreneurial passion. Additionally, external factors, including market competition, technological advancements, government policies, and supportive networks, are shown to be critical in encouraging innovation and creating a conducive environment for entrepreneurship. The research concludes that entrepreneurial passion is influenced by a dynamic interaction of intrinsic and extrinsic factors. The study's theoretical contribution lies in advancing understanding of the drivers of entrepreneurial passion, while the practical significance includes recommendations for policymakers, educators, and practitioners to address challenges such as financial constraints, regulatory barriers, networking difficulties, and work-life balance issues. These insights can help enhance MSE success, sustainability, and long-term entrepreneurial passion.

Keywords: micro and small enterprise; entrepreneurial passion; entrepreneurship; factor (search for similar items in EconPapers)
JEL-codes: L22 L25 P23 R12 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:aiy:jnjaer:v:24:y:2025:i:1:p:257-286

DOI: 10.15826/vestnik.2025.24.1.009

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