Introduction Ethiopia adopted a Micro and Small Enterprises Development Strategy, Provision Framework and Methods of Implementation (Hereafter referred to as MSE Strategy) in 2011. This strategy covers issues like the definition of micro and small enterprises, the strategy for the development of the same and support program for the effective realization of the goals stated in the policy. The strategy left the definition of micro and small enterprises for a regulation to be promulgated. Accordingly, it is provided under a separate set of legal instrument. The definition of micro and small enterprises varies according to the sector in which they are engaged. For those engaged in the industry sector (e.g. manufacturing, construction and mining), a micro enterprise is an enterprise that operates with five people including the owner and/or having a total asset/capital not exceeding 100,000 ETB; whereas for those involved in the service sector (e.g. retailer, transport, hotel, tourism, ICT and Maintenance), a micro enterprise is an enterprise that operates with five persons including the owner and/or having a total asset not exceeding 50,000 ETB. Small enterprises (involved in the industrial sector) are those enterprises that operate with 6-30 persons and/or having total asset not exceeding between 100,000 ETB and 1.5 million ETB. Enterprises involved in the service sector are considered to be small enterprises if they operate with 6-30 persons and/or have a total asset between 50,000 and 500,000. Description The MSE Strategy envisions the creation of competitive and convenient base for industry development. Its objectives are: improving income of the society, reducing poverty and bringing equal opportunity through the creation of job opportunity; enabling the sector to be competent enough in facilitating economic growth and laying the foundation for industry development and expanding the sector’s development by creating developmental investors. The strategy identifies a number of challenges faced by micro and small enterprises with regard to supply of finance, human resource development, production and sales cluster development and industrial extension. Failure of TVET to develop sensitizing on technology transfer and capacity/gap problem with experts in developing and disseminating technology; absence of readiness to accept and use new
Introduction Ethiopia adopted a Micro and Small Enterprises Development Strategy, Provision Framework and Methods of Implementation (Hereafter referred to as MSE Strategy) in 2011. This strategy covers issues like the definition of micro and small enterprises, the strategy for the development of the same and support program for the effective realization of the goals stated in the policy. The strategy left the definition of micro and small enterprises for a regulation to be promulgated. Accordingly, it is provided under a separate set of legal instrument. The definition of micro and small enterprises varies according to the sector in which they are engaged. For those engaged in the industry sector (e.g. manufacturing, construction and mining), a micro enterprise is an enterprise that operates with five people including the owner and/or having a total asset/capital not exceeding 100,000 ETB; whereas for those involved in the service sector (e.g. retailer, transport, hotel, tourism, ICT and Maintenance), a micro enterprise is an enterprise that operates with five persons including the owner and/or having a total asset not exceeding 50,000 ETB. Small enterprises (involved in the industrial sector) are those enterprises that operate with 6-30 persons and/or having total asset not exceeding between 100,000 ETB and 1.5 million ETB. Enterprises involved in the service sector are considered to be small enterprises if they operate with 6-30 persons and/or have a total asset between 50,000 and 500,000. Description The MSE Strategy envisions the creation of competitive and convenient base for industry development. Its objectives are: improving income of the society, reducing poverty and bringing equal opportunity through the creation of job opportunity; enabling the sector to be competent enough in facilitating economic growth and laying the foundation for industry development and expanding the sector’s development by creating developmental investors. The strategy identifies a number of challenges faced by micro and small enterprises with regard to supply of finance, human resource development, production and sales cluster development and industrial extension. Failure of TVET to develop sensitizing on technology transfer and capacity/gap problem with experts in developing and disseminating technology; absence of readiness to accept and use new
Annex%204D%20Research%20Report%20on%20Policy%20Information%20Gap%20Analyis.docx