Policy Impact and Regulatory Challenges of Micro and Small Enterprises (MSES) in Ethiopia

Course ID
Ethiopian Economics Association (EEA)
Gebrehiwot Ageba

The purpose of this paper is to give an overview of the background of the MSE operators and MSEs and present a systematic analysis of policy and regulatory changes, impact and constraints in the development of the MSE sector in Ethiopia. The primary data were collected from 974 MSE operators using structured questionnaire. Although there have been serious attempts by the government to liberalize and improve the policy and regulatory environment of the MSE sector, which resulted in increase in investment and competition and improvement in the licensing procedures, the information from the survey data indicates that there is divergence between policies and directives issued and their actual implementation on the ground. The results show that capital shortage, inadequate business premise, inadequate/uncertain market and high taxes as the major constraints to expand MSEs in Ethiopia. Moreover, the MSE operators revealed that the policy predictability is quite low which implies that a lot remains to be done to create an enabling policy environment for the MSE sector. Concrete and coordinated regulatory and institutional support (infrastructure facilities like business premises, water and power; financial services; extension services; aid in the transfer of technologies; promotion of marketing facilities; and provision of training on sustainable basis) has yet to be provided by the government

Corporate Author: Alemayehu Seyoum … [et al.] (editor)
Publisher: Ethiopian Economic Association (EEA)
Primary Descriptors: Small scale enterprise, Micro & Small Enterprises(MSE)

Secondary Descriptor: Investemnt; Market liberalization

Geographic Descriptors: Ethiopia
Cataloge Date: 02/27/2013
Broad Subject heading: Small business-Government policy
Call Number: 330.963 PRO 2005
Serial Key Title: Proceedings of the Second International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Volume: I
Publication date: 2013-05-27 23:05:00
Forum or Discussion date: 2013-02-27 14:55:42
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annualy
Author: Gebrehiwot Ageba and Wolday Amha