Study Identifies Major Challenges Facing Micro,Small Enterprises

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Addis Ababa October 24/2017 Lack of suitable working premises, electric power supply and adequate credit services remain to be the major challenges to the development of micro and small enterprises, Ethiopian Development Research Institute revealed.  

The challenges were identified by a study conducted between December 2016 and May 2017 in 8,000 micro and small enterprises in 10 cities of the country.

Although the country has registered commendable results in the development of micro and small scale enterprises, the study stressed that the government and all concerned stakeholders have yet to address the challenges that the enterprises are facing in terms of acquisition of appropriate workplace, electric supply and credit services needs by enterprises.

Presenting the study, Dr. Mulu Gebryesus said the development of Micro and Small Enterprises (MSEs) has been high on the agenda of the Ethiopian government as a means to generate employment and reduce poverty.

Creating awareness and knowledge among stakeholders on the identified problems in order to solve them is the main objective of the research program, he added.

He noted that stakeholders need to work in coordination to advance the objectives for which the enterprises are established.

Industry State Minister Dr. Mebratu Meles said the outcomes and recommendations by the Ethiopian Development Research could be used as inputs for the government’s efforts to enhance the development of the sector over the coming years.

He stated that the government will use the findings as critical inputs for further improvement of the sector.

More than 766,000 micro and small scale enterprises are currently operating nationwide.

The study, Micro and Small Manufacturing Enterprises in Ethiopia, was financed by European Union and International Development Research Centre.


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