Professional Documents
Culture Documents
Women Konjit Debela
Women Konjit Debela
ADDIS
ABABA CITY ADMINISTRATION
MICRO&SMALLENTERPRISES
DEVELOPMENT BUEARU
DEVELOPMENTBUEARU
WOMENINTHEDEVELOPMENTOFMICRO&SMALLENTERPRISESTO
ENSURE SUSTAINABLE DEVELOPMENT & FOOD SECURITY
ENSURESUSTAINABLEDEVELOPMENT&FOODSECURITY
Konjit Debela
ETHIOPIA
ADDISABAABA
Content:
Part One:
PartOne:
Introduction
Part Two:
PartTwo:
PartThree:
FundamentalpointsofEthiopianSMEStrategy
p
p
gy
PartFour:
WomenandSMEs
PartFive:
WhoBenefitsfromMSEsdevelopmentprograms
PartSix:
Challengesandwayout
PartSeven:
SupportAreas
MICRO&SMALLENTERPRISESDEVELOPMENT
In Ethiopia (ADDIS ABABA)
InEthiopia(ADDISABABA)
Thus, by considering the critical role of the sector and the constrained
faced by SME operators since 2004/2005 the government of Ethiopia
decide to establish SMEs coordinating body at regional level.
level
PartTwo:OrganizationalStructureof
SMEsDevelopment
B
Bureau
Head
DeputyHead
EnterpriseOrganizing
&Promotion
Department
DeputyHead
EnterpriseSupport
FacilitationDepartment
CaseTeams
MarketLinkage&
Workingpremises
D l
Development
t
Experts
p
CaseTeams
Experts
City
60 Experts
60Experts
SubCity
130 E
130Experts
District
2300Developmentworkers
PartThree:Fundamentalpoints
p
ofEthiopianSMEStrategy
Enterprise level
Sector
Hired labor
Capital
1.
Micro
Industry
<5
$6000.00
or
4500.00
<Birr 100,000.00
00,000 00
Service
<5
$3000.00
or 2200.00 or
<Birr 50,000.00
2.
Small
Industry
6-30
$90,000.00
or
70,000.00
<Birr 1,500,000.00
Service
6 30
6-30
<Birr 500,000.00
500 000 00
Growthorientedsectorsselectioncriteria:
Largemarketsizefortheirproduct,
Employmentabsorptioncapacity,
p
,
Shortperiodofreturnoverinvestment,
Localrawmaterialutilization,
Highroleforpovertyreduction,and
Opportunitytotransformedtomediumandlargescaleindustry
Opportunity to transformed to medium and large scale industry.
TypesofGovernmentSupportforSMEs:
Maximumsupport(forgrowthorientedsector)
1.Workingpremiseswithleastleasingprice,
gp
gp
2.Productdisplaycenterwithleastleasingprice,
3.Technicalandbusinessmanagementtraining,
4.Counselingservice
5.Loanprovision,
6.Marketlinkageparticularlywithgovernmentdevelopmentprograms(eg.
Housingdevelopment,)
7 E hibiti
7.Exhibition,tradefairorganization
t d f i
i ti
8.Accesstotechnology
Minimumsupport
i i
1. Loanprovision,
2. Exhibition,tradefairorganization
3 Technicalandbusinessmanagement
3.
Technical and business management
training,and
4 Counseling service
4.Counselingservice
3.3Typesofenterprisesgrowthstage
yp
p
g
g
Microenterprises
3.Maturity
Smallenterprises
4.Emergingmedium
3.Maturity
2.Growth
2.Growth
1 Start up
1.Startup
1.Startup
GovernmentSupportandGrowthstageofEnterprises
Government support either for growth oriented or non
growth oriented sectors base the growth stage/cycle of
the enterprises.
Based on the new strategy enterprises that wants to
get support from government are obliged to know the
stage of their enterprise.
enterprise
The size of support to SMEs (either maximum or
minimum) depends up on the growth stage of the
enterprises. That is, enterprises in the higher stage
wants large support to be successful in their business
activity.
PartFour:WomenandSMEs:
4.1WomenintheConstitution:
The
ThebasicpointofEthiopiaconstitutionpertainingto
basic point of Ethiopia constitution pertaining to
Womenempowermentisequalpower&rightinthesocial,
economicandpoliticalparticipation.
Tocomeuptothebacklogasregardsgenderdiscrimination
someaffirmativeactionsareapplied.
WomenhavegotownershiptitleonresourceslikeLand.
Women have got ownership title on resources like Land
Atnationallevelwomenaffairpolicyispublishedin1992.
AndministerofficeandregionallevelWomenaffairBureau
And minister office and regional level Women affair Bureau
aresetuptomaketheconstitutionrealistic.Themajorduty
andresponsibilityofthesegovernmentinstitutionsareto
empowerwomen,awarenesscreationongender
inequalities,etc
4.2Women&SMEs
Womenareverymuchencouragedtoparticipatein
growthorientedsectors.
Insomesectorslikecarparkingservices,solidwaste
collection,etcarepredeterminedforwomen.Members
of the enterprise should include 50% of women This is
oftheenterpriseshouldinclude50%ofwomen.Thisis
becausetheactivitiesarefullyoutsourcedby
government.
Toraisetheconsciousnessandtherebyincreasethe
participationofwomenintheeconomicactivitiesto
ensure sustainable development & food security the
ensuresustainabledevelopment&foodsecurity,the
followingsystemsareapplied:
1 Initiatingandsupportingwomennetworkgroups:
1.
I iti ti
d
ti
t
k
i.
ii.
iii.
Womenexportersassociation,
Womenentrepreneursassociation,
p
,
Insomesectorswomenformunions
2.Selectionofbestperformingwomenownedenterprises
toteachotherwomen:
Model
M
d l women enterprises
t
i
t i other
train
th
women (both
(b th
unemployed & unsuccessful women in SMEs) about how to
create job, challenges they faced, how to overcome the
challenges in the business world, etc
3. W
3
Womenjobcreationteams(WJCT):
j b
i
(WJCT) groupofunemployed
WJCTsareorganizedinallprovinceswiththeaimof
raising economic benefit of women
raisingeconomicbenefitofwomen.
unemployed
unemployed
unemployed
779WJCTcreatedineach
779
WJCT
t di
h
ketena
Ineachprovincedependinguponthetotalno ofpopulation
andthesizeofboundarythereare510womenjobcreation
teams (WJCT)
teams(WJCT).
ketena
One
District
ketena
Accordingly
Accordingly, with in six months more than 60% of
WJCT organized and started to operate in different
SMEs sectors . Most of them operate in cobble
stone production
d
sector.
Around 12,000 women business need have been
identified form business organization,
identified,
organization trained in
different fields and started operation.
Although this type of women structure has great
benefit to move up the economic involvement of
women sustainability of the WJCT
women,
has face
challenges like:
Un equal
q commitment of members,,
Loose participation of members,
In some WJCTs, members after involving in SMEs
sector, totally
ll not participate in the
h WJCT,
Lack of fixed place to gettogether, etc
4.3SMEsdevelopmentplanandwomen
participation:PlanandAchievements:
ti i ti
Pl
d A hi
t
a.Plan
Plan
Becausemorethanhalfofthepopulationofthecityare
women(51%),eachyearitisplanedthat50%ofthejob
(
),
y
p
j
opportunitywillbecreatedforwomen.
A
Accordinglydifferentmeasureshavebeentaken.
di l diff
t
h
b
t k
ViaWomencivicassociations:continuousawareness
creationprogramconductedinalllevels,
p g
GenderUnit:throughthisunitmonthlygenderreview/
checkhavebeenconducted.
ThusfromyeartoyearwomeninvolvementinSMEs
Th f
t
i l
t i SME
sectorincreasesatincreasingrate.In2010ofthetotal
jobcreation37%arewomen.
b. MajorAchievementsofthecityto
the development of the sector:
thedevelopmentofthesector:
1. Policy Guidance and Regulation:
1.PolicyGuidanceandRegulation:
Anorganresponsibletothedevelopmentofthesector
isestablished.Thatis,MicroandSmallEnterprise
,
p
DevelopmentBureau,
Differentsupportpackagestogrowthorientedsectors
havebeendeveloped,
Procedureandstrategyontransformationofsmall
enterprisestomediumscale,
Manualisdevelopedtoselectmodelenterprises,
Taxpolicyandwomen:
MSE
MSEshavetheprivilegeoftaxexemptionforthe
h
h
i il
f
i f h
first3years.
However each SMEs have to get tax identification
number (TIN) during licensing. This is just to
control & make SMEs learn the habit to pay tax
after 3 years.
This policy basically benefited to women because
most women take p
part in SMEs rather than
medium & large scale industry.
2.Marketlinkage&marketfacilitation:
2
Market linkage & market facilitation:
Directmarketlinkagewithgovernment
development program like housing
developmentprogram,likehousing
development
Housingdevelopmentprogram:since2003
Housing development program: since 2003
80,245housesareconstructed.
More than 12,000 SMEs are participated.
Morethan12,000SMEsareparticipated.
Organizingwomenentrepreneurstradefair
& exhibition (at city sub city & district level)
&exhibition(atcity,subcity&districtlevel)
Localmarketassessment Marketlinkage
between & among SMEs medium & large
between&amongSMEs,medium&large
scaleindustries.
Mostwomeninfoodprocessingsectorare
Most women in food processing sector are
linkedwithsupermarkets.
3 Li
3.LicensingService&Creationofenterprises:
i S i & C ti
f t
i
onestopshopisorganizedtomakesuitablebusiness
environmentforwomenandyouth.
y
Accordinglyfrom2003 2010morethan22,000new
enterpriseshavegotbusinesslicenseandnowtheyare
underfunction.Ofthis37%arewomen.
4.Technicaltrainingsupport:
from2003 2010around295,084operatorshavegot
businessandtechnicalskilltrainingsupportfrom
government.Ofthis32%arewomen.
5.Loanprovision/disbursement:
Since2003to2010foratotalnumberof200,289
i
f
l
b
f
businessoperatorshavegotbirr
1,335,092,912($111,257,742).Ofthismorethan
,
,
,
(
,
,
)
40%oftheloanhavebeengiventowomen.
6.Workingpremisessupport:from2003
gp
pp
2010
Built&distributedworkingshed:
996metal&woodworkshed
612foodprocessing(97%)
p
g(
)
639construction
127 b
127urbanagriculture
i l
71G+4buildingsfortextile,garment&
leatherproducts
8.EnterpriseTransformationfromSmallto
p
Mediumscaleindustry:Accordingly250small
Enterprises(having1,685businessmembers)are
transformed to Medium Industry (2010)
transformedtoMediumIndustry(2010),
Ofthetotalbusinessmembers24%arewomen.
9.Modelenterprisesandbestpracticeexpansion
program
182ModelEnterprises(enterpriseswithbestpractice)areselectedwiththe
objectiveofExpandingtheirtopperformancetoothers.
PartFive:WhoBenefitsfromMSEs
development programs
developmentprograms
Theprogrammorefocusesonpropoorpeople:
Unemployedyouth&women
U
l d
th &
TVETschoolgraduates
Schooldropouts
ExistingSMEssuchasweavers,streetvendors,
Existing SMEs such as weavers street vendors
traditionalhandicraftoperators,
PeoplewholiveontheStreet
P
l h li
h S
Etc
PartSix:Challengesandwayout
1.Challenges:
EnterprisesAttitude:
Rentseekingattitude
Enterpriseformationjusttogetandsell/leaselimitedgovernment
supports(e.g.Workingpremises)
Usinginappropriateconstructionmaterialforhousing
development
Violationofcontracts
Missutilizationofgovernmentsupport
Liketransferringpremisestothirdparty
Reluctanttorepayloanontime
Reluctant to repay loan on time
Dependency
Alwayshangaroundgovernmentmarket
Unwillingtosave,someofthemarenotvisionary(anintentto
(
snatchgovernmentsupport)
Enterprisesfacelackofmarket,finance,skill,etc
p
,
,
,
2.WayOut:Systemsetupforcoordination
amongsupportingorganization
Rule issetuptoindicatehowtoplan,howtoimplementand
worktogether,whenandhowtoevaluatetheworketc
Basedontherulethereisaformofsteeringcommitteewhich
includethethreeorganizationsandotherstakeholders.This
steeringcommitteewiththesameformofmembershipis
organizedatsubcity&wereda
i d t b it &
d (district)level.
(di t i t) l l
Themajortaskofthesteeringcommitteeistopromote&solve
problemsfacedbySMEsoperators.
Inadditiontoformingstakeholderscommitteetomakesuitable
businessenvironmenttoSMEs,thethreemajorstakeholders
(SMEsDevt Bureau,MFIs&TVETs)atdistrictlevelsetuptheir
officeintheformofonestopshop.
ff
f
f
Thethreeorganizationshavetimetomonitorandevaluatethe
serviceprovidedtoSMEs(monthly,quarterly,yearly).
Taskforceisorganizedamongtough
SMEssupportingorganizations
TheMajorSMEssupportingorganizationare:
SMEs
Development
Bureau
Micro
i
Finance
Institutions
TVET
Premisessupport,marketlinkage,counselingservice,
businessplandevelopment
Loanprovision,savingservice,awarenesscreationonsaving,
consultation
TVETCenters
Provisionoftechnicalandbusinessmanagementtraining,
Technologydevelopment
AddisAbabaCommunicationBureau
communicate
communicatethecommunityonthedevelopmentofSMEs,
the community on the development of SMEs
bestpracticeexpansion,promotion
AddisAbabaTrade&Industry
B
Bureau
TradeLicensing,investmentlicensing,supporttransformed
enterprises from SMEs to medium & large scale industry
enterprisesfromSMEstomedium&largescaleindustry
AddisAbabaDesign&Construction Designing&followtheconstructionofSMEsworkingsheds
andbuildings,marketlinkagetoSMEsengagedinconstruction
Bureau
sectors
sectors.
AddisAbabaHousingProjectOffice marketlinkagetoSMEsengagedinconstruction
sectors.
AddisAbabaWomenandYouth
AffairBureau
Attitudechangeworkinghabit,awarenesscreationon
SMEsbenefit&role,financesupporttowomen,