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Trade and Industry Bureau Addis Ababa. Micro and Small Enterprises Development Achievements in Addis Ababa. June 2005. Definition : The working definition of MSE in Ethiopia is based on capital.
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Micro and Small Enterprises Development Achievements in Addis Ababa
1.1Micro Enterprises:- are those business enterprises with a paid up capital of not exceeding Birr 20,000 (about $ 2326), and excluding high tech consultancy firms and other high-tech establishments.
1.2Small Enterprises: are those business enterprises with a paid up capital above Birr 20,000 and not exceeding Birr 500,000 (about $ 58,140), and excluding high-tech consultancy firms and other high-tech establishments.
Number of Establishments
Informal sector operators
Small Scale Manufacturing Industries
2. Size of MSE’s in Addis Ababa
No. Of Enterprises based on capital (in birr)
Total No. of
Sub. Sector Share in %
3. Licensed Enterprises in Addis Ababa .
- - 68 643 (75.4%) are Micro enterprises.
- - 19, 079 (20.9%) are small enterprises
- - 3,337 (3.7%) are small including medium & large Enterprise
TThe size of the sub-sectors
- - Retail & service Enterprises = 83,915 (92.1%)
- - Whole sale, Agriculture, Industry = 7 144 (7.9%)
TThe whole Business is Dominated by MSE’s = 87 722 (96.3%)
Based on the rapid assessment survey conducted (1995 Ethc.) in 11,000 enterprises in the city the main constraints identified were:-
-Lack of working space for production and marketing.
-Shortage of credit and finance
-Regulatory problems (licensing, organizing, illegal
-Poor production techniques.
-In put access constraints
-Lack of Information
-Inadequate management and Business skill
-Absence of appropriate strategy
-Textile and Garment
-Wood & Metal Works
-Large market size for their product
-Employment observation capacity
-Short period of return over Investment
-High role for poverty reduction
-TVET graduates from different fields of studies.
-Poor and un employed women.
-MSE operators under high risk
-Disabled people with different skills.
-All Enterprises in the selected sub sectors
8.1 Preparation of Business plans for 3 sub-sectors namely:
– Textile and garment
– Food Processing
– Wood & Metal Works
8.2 Different types of Income generating projects implemented
- Kiosk shops - Urban agriculture
- Eat fruit Tents - Car wash
- Sunday markets - Mobile kitchen
- Leather crafts - Compost etc.
8.3 The urban land leasing is made to address the problem
of working and marketing space for MSE’s.
8.4 All extension Agents were trained in different business
skills with the help & support of G.T.Z, Femseda and
8.10 All the kebeles in the city are made to provide one stop service to all MSE operators and to the New interies focusing on:-
–Provision of premises for production and sales.
–Technical and managerial training for the operators.
–Provision of Business Development Services.
–Provision of appropriate Technology
–Provision of credit.
–Provision of Information
–Licensing and legalization of Businesses.
The Bureau (MSE Sector) was clothly working with:-
9.1 Government offices & Bureaus
9.2 Micro Financing Institutions – In the provision of loan
9.3 TVET’s - skill test, skill gap training
9.4 Productivity improvement center (PIC) – Training, skill test, prototype development, research etc..
9.5 NGO’s (MSE-Forum, GTZ, Plan Ethiopia, wise, concern etc.) Training& Marketing Promotion.
9.6 MSE councils – At City, Sub – City, and Kebele level Advisory and promotional support.
9.7 MSE committee of the Advisory council of the City Government – Advisory support.
9.8 Project support unit-(EU-Fund) – in Training fund support.
9.9 Private Enterprises, NGO’s and Government Work shops – in the production of looms for weavers handcrafts for Dry wast collection, etc.