Research has shown that there are factors that contribute to success or failure in small enterprises in the government departments in the world. An environment conducive for the growth of MSEs is required, and this has necessitated an investigation into the factors affecting the performance of SMEs in North Shewa Zone, Ethiopia. The general objective of the study is to investigate factors that influencing the performance of micro and small enterprises in North Shewa Zone town, Ethiopia. The research used probability; strata sampling techniques. The researcher selected 386 respondents out of 11,244 populations. For data analysis, we have used OLS regression analysis Pearson correlation Coefficient. Based on the data collected from 386 MSEs in North Shewa Zone, Ethiopia, the results showed that there is a significant positive relationship between entrepreneurship, labour skill, infrastructure, finance, leadership skill and the performance of SMEs. This study recommends that the MSE businesses and government should effectively address the infrastructure especially in terms of electricity, work place, market place and roads in order to increase their performance.

The objective is to investigate the effects of service quality on customer satisfaction. Convenience sampling method been utilized to collect data from 27 hotels at six towns found in the Administration zone. The results from the different dimensions show that averagely the expectations lies above the perceptions line that indicates there is a gap between expectations and perceptions which resulted with the customers are not fully satisfied on the service quality. There are gaps between expectations and perceptions. The service quality delivered did not fully meet the expectations. The finding shows that the top four major quality dimension gaps are shown on: staff dressed well, employees who understand the need of their customers, feel safe in receiving service, and staff willing to help customers. Priorities and high attention have to be given for dimensions outlined in the findings above.

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