Main Features of Micro and Small Manufacturing Enterprises in Ethiopia

Main Features of Micro and Small Manufacturing Enterprises in Ethiopia
File Size:
8.34 MB
Mulu Gebreeyesus, Abebe Ambachew, Tigabu Getahun, Berihu Assefa, Girum Abebe, Seid Hassen and Haileselassie Medhin
01 July 2018
432 x


The Ethiopian economy has seen remarkable growth over the last decade. In varying degrees all sectors contributed to the registered economic growth. Ethiopia has also made a big push in investment in infrastructure and human development. Cumulatively, this has contributed to increased employment, income, and poverty reduction. Regarding the structure of economy, smallholder agriculture and services are dominant sectors. The structural transformation of the economy through industrialization as envisaged in the industrial policy is yet to be realized. The current contribution of the industry sector to GDP is not more than 17%. Particularly, the current performance of the manufacturing sub-sector is much lower than expected (with 4% GDP share) and the government has given special emphasis for this sub-sector to gradually take the lion’s share in country’s industrial sector.

As can be observed, this is key pillar of the growth and transformation plan (GTP). One of the key strategy to achieve these targets and build an industryled economy is through promoting the development of Micro and Small Enterprises (MSEs). The Government of Ethiopia has been committed to the development of the MSE sector as it is stipulated in the MSE development strategy and other sectors’ policies and strategies. Similarly, in the second GTP, MSE sector (specially the manufacturing MSEs) is given due emphasis in view of its strategic importance in generating employment as well as a learning platform for entrepreneurship and emergency of value adding, private sector that is willing and able to invest in manufacturing industries.

However, the timely revision of the sector’s policy and strategy as well as its implementation process should be guided by a systematically generated, credible, and timely information. The sector suffers from lack of such information and I found this book as an excellent contribution to the development of the MSE sector produced at the right time to partly fill this gap. This book is prepared based on the survey data generated through deliberately designed original research to follow up the state of the micro Main Features of Micro and Small Manufacturing Enterprises in Ethiopia and small manufacturing enterprises in urban Ethiopia. It is based on rigorous analysis by experienced researchers in the field on scientifically generated fresh data from 8174 micro and small manufacturing enterprises in 10 largest cities of the country. The book covers a wide ranges of information on different aspects of the MSE development including on characteristics of enterprises and entrepreneurs; job creation, sales, marketing, investment, financing, competition and innovation activities or performances of MSES; the state of MSE workers and working conditions such as earnings, labor turnover, and occupational safety; greening MSEs which clearly shows the interaction of the MSEs with the physical environment; and the business  environments as well as the major obstacles of the MSEs in different geographical areas. I enjoyed the interesting findings of the study under all these topics which are worth studying in such detail and I am sure readers will benefit a lot from reading this book.

Mekonnen Manyazewal

With the Rank of Minster

Executive Director of EDRI

Addis Ababa, 2018

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