Impact of Technology Adoption on Growth of Micro and Small-Scale Enterprises | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Impact of Technology Adoption on Growth of Micro and Small-Scale Enterprises Tadele Alamneh, Yimeku Adamu This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8418877/v1 This work is licensed under a CC BY 4.0 License Status: Under Review Version 1 posted 13 You are reading this latest preprint version Abstract Micro and small enterprises (MSEs) are vital to economic growth, innovation, job creation, and poverty reduction. Yet, most studies focus narrowly on specific sectors like manufacturing than holistic view of all SMEs. This study examines how technology adoption affects MSE growth in Merawi town, Amhara Region, Ethiopia. Using stratified random sampling, data from 325 enterprises were collected via a structured questionnaire. MSE growth was measured using income, asset value, and employment, analyzed through a binary endogenous switching regression model. Results show that Average Treatment Effect on the Treated (ATT) was 0.436 for income, 0.365 for assets, and 0.434 for employment. In contrast, Average Treatment Effect on the Untreated (ATU) the expected gains for non-adopters if they adopted technology was 0.187 for income, 0.167 for assets, and 0.007 for employment. The difference between ATT and ATU, i.e., Transitional heterogeneity, was 0.248 for income, 0.198 for assets, and 0.426 for employment depicting that MSEs adopting technology significantly outperformed non-adopters across all growth indicators. Factors influencing both growth and technology adoption include age, education, teamwork, infrastructure access, marketing skills, and experience. The study recommends stronger government-enterprise collaboration, promotion of teamwork, better planning, diversified financing, and consistent financial record-keeping to support sustainable MSE development. Micro and Small Enterprise Growth Technology Binary Endogenous Switching Merawi Town Ethiopia Full Text Additional Declarations No competing interests reported. Supplementary Files coverletter2025.docx Cite Share Download PDF Status: Under Review Version 1 posted Editorial decision: Revision requested 17 Feb, 2026 Reviews received at journal 03 Feb, 2026 Reviewers agreed at journal 30 Jan, 2026 Reviewers agreed at journal 27 Jan, 2026 Reviews received at journal 26 Jan, 2026 Reviewers agreed at journal 21 Jan, 2026 Reviewers agreed at journal 21 Jan, 2026 Reviews received at journal 18 Jan, 2026 Reviewers agreed at journal 16 Jan, 2026 Reviewers invited by journal 16 Jan, 2026 Editor assigned by journal 26 Dec, 2025 Submission checks completed at journal 26 Dec, 2025 First submitted to journal 26 Dec, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-8418877","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":577025052,"identity":"5082bf37-82a5-4148-bd68-929a055707c4","order_by":0,"name":"Tadele 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[email protected]","identity":"discover-global-society","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"","sideBox":"Learn more about [Discover Global Society](https://www.springer.com/journal/44282)","snPcode":"44282","submissionUrl":"https://submission.nature.com/new-submission/44282/3","title":"Discover Global Society","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Discover Series","inReviewEnabled":true,"inReviewRevisionsEnabled":true},"keywords":"Micro and Small Enterprise, Growth, Technology, Binary Endogenous Switching, Merawi Town, Ethiopia","lastPublishedDoi":"10.21203/rs.3.rs-8418877/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-8418877/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eMicro and small enterprises (MSEs) are vital to economic growth, innovation, job creation, and poverty reduction. Yet, most studies focus narrowly on specific sectors like manufacturing than holistic view of all SMEs. This study examines how technology adoption affects MSE growth in Merawi town, Amhara Region, Ethiopia. Using stratified random sampling, data from 325 enterprises were collected via a structured questionnaire. MSE growth was measured using income, asset value, and employment, analyzed through a binary endogenous switching regression model. Results show that Average Treatment Effect on the Treated (ATT) was 0.436 for income, 0.365 for assets, and 0.434 for employment. In contrast, Average Treatment Effect on the Untreated (ATU) the expected gains for non-adopters if they adopted technology was 0.187 for income, 0.167 for assets, and 0.007 for employment. The difference between ATT and ATU, i.e., Transitional heterogeneity, was 0.248 for income, 0.198 for assets, and 0.426 for employment depicting that MSEs adopting technology significantly outperformed non-adopters across all growth indicators. Factors influencing both growth and technology adoption include age, education, teamwork, infrastructure access, marketing skills, and experience. The study recommends stronger government-enterprise collaboration, promotion of teamwork, better planning, diversified financing, and consistent financial record-keeping to support sustainable MSE development.\u003c/p\u003e","manuscriptTitle":"Impact of Technology Adoption on Growth of Micro and Small-Scale Enterprises","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2026-01-20 09:55:47","doi":"10.21203/rs.3.rs-8418877/v1","editorialEvents":[{"type":"communityComments","content":0},{"type":"decision","content":"Revision requested","date":"2026-02-17T06:58:13+00:00","index":"","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2026-02-03T12:03:23+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"62891712994030991674180971694872177881","date":"2026-01-30T23:58:31+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"293050631724131885847249988562995761561","date":"2026-01-27T17:43:42+00:00","index":"hide","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2026-01-26T11:17:39+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"40380378290535331221619360206837258278","date":"2026-01-21T09:57:17+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"35956044255976499474613032476261602874","date":"2026-01-21T09:27:05+00:00","index":"hide","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2026-01-18T12:36:05+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"275090547271029353620608157018193546276","date":"2026-01-16T09:09:09+00:00","index":"hide","fulltext":""},{"type":"reviewersInvited","content":"","date":"2026-01-16T07:41:26+00:00","index":"","fulltext":""},{"type":"editorAssigned","content":"","date":"2025-12-26T11:05:00+00:00","index":"","fulltext":""},{"type":"checksComplete","content":"","date":"2025-12-26T09:33:54+00:00","index":"","fulltext":""},{"type":"submitted","content":"Discover Global Society","date":"2025-12-26T09:25:41+00:00","index":"","fulltext":""}],"status":"published","journal":{"display":true,"email":"
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