RIFT VALLEY UNIVERSITY BOLE CAMPUS

MASTERS PROGRAM INDIVISUALL ASSIGNMENT FOR MBA DEPARTEMENT

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT COURSE

NAME: SEIFU DECHASA REGGASSA

SECTION G

SUBMITTED TO DR. REJALU

ID NO 0460/2018

ASSIGENMENT QUESTION: Evaluate, criticize and recommend Ethiopia

case entrepreneurship.

JULY/13/2019
 Evaluation of Ethiopia entrepreneurship

Entrepreneurship is taking the risk of doing something and also doing it in a

different way than it has been done before. In Ethiopia, it has been taken as one of
the ways to create more jobs and reduce poverty. The government showed its
commitment to entrepreneurs by budgeting 21 billion Br on its five-year strategic
plan.

The World Bank though acknowledges that the country has made some positive
strides such as removing the requirements to open a bank account for company
registration and a paid-up minimum capitals.

Ethiopia’s Growth and Transformation Plan (GTP II) seeks to bring about broad-
based transformative structural changes required to steer the economy on a rapid
growth path towards becoming a middle-income country by 2025.

The country's strategy gives due emphasis to the promotion of domestic private
sector development and stimulating the rapid growth of micro, small and medium
businesses to create wealth and employment opportunities.

Ethiopia is Africa’s second most populous nation after Nigeria. So creating jobs for
young workers is imperative, as a majority of the nation is under 25 years old.

The GTP emphasizes the need to provide comprehensive support to MSEs and
existing medium sized enterprises to unleash their full potential to create wealth
and jobs, and thereby help to substantially reduce poverty As much as our huge
population can be a source of strength and growth, it could also be a source of
vulnerability and social tension unless we are in a position to offer job
opportunities that can absorb this huge chunk of our population.

The goal now the government to encourage a bigger role for the private sector in
the East African country.

Ethiopia also pointed out that the new three-year program will not establish new
businesses just for the sake of having more entrepreneurs in the country.

The Ethiopian government and the United Nations want to train more than 200,000
entrepreneurs in the East African country. Both believe Ethiopia needs a stronger
private sector to maintain its fast economic growth.
The Ethiopian government and the United Nations Development Program, UNDP,
have launched a three-year program to train the entrepreneurs. The say the
businesses established by these new entrepreneurs potentially could create about
1.2 million jobs.

In spite [instead] of looking for jobs and living as employees, to challenge their
attitudes to become social and economic entrepreneurs who will create jobs for
others. Viable and competitive enterprises that will become the backbone and
foundation of the country’s industrial growth and transformation.

The development program is based on four pillars from that entrepreneurial

development training and business development services basic program in Ethiopia

Criticism of Ethiopia entrepreneurship

Yet, many businesses got interrupted before reaching their intended goal, and the
government has been criticized for its rigid business starting procedures,
unintegrated institutions and for hesitant response to ever-growing
entrepreneurship demands Even if there is a demand to take a formal education in
entrepreneurship, there is a few academic institution that offers the discipline.

Financial constraint is found out as a general challenge to entrepreneurs. In

addition, different constraints such as training, access to finance, market
opportunities, policy and legal measures are affect entrepreneurs at a different
rates.

The lack of innovation from the side of entrepreneurs and a weak support from the
government and other supporting institutions. In view of these an innovative
support such Overall, the result discloses a high failure rate of entrepreneurs in
Ethiopia.

Entrepreneurs who graduating from the program are expected to train others but in
Ethiopian government they will come up with the rest of the needed money and
they are Weakness in networking, in risk-taking and persistence.
The finding reveals that the gender of the entrepreneurs is dominated by favor of
male entrepreneurs when compared to that of their female counterparts.
High level of unemployment, high poverty incidence, lack managerial skills and
low industrialization capacity, lack of finance, inconsistent government policies are
challenges that affect the development of entrepreneurs in Ethiopia.
 Recommendation on Ethiopia entrepreneurship

Government should establish training institution for entrepreneurs to provide short

and long term training with the object of developing their entrepreneurial and
managerial capacity

Boosting capacity and skill of the operation through continuous training and
provision of consulting is mandatory.

Develop innovation guarantee scheme should be designed to support entrepreneurs

to these affect a number of innovation mechanism could implemented. The
labyrinth of bureaucratic controls, lack of access to credit, a financial system, lack
of managerial skill amongst others, all require priority attention.

The government aim should be bridge the gap between unemployed youngsters,
students and established entrepreneurs and develop their skill by giving training.

Developing a platform that help to develop basic skills and allow them to develop
through practice and mentorship and also developing the engagement of
entrepreneur’s in local and global market.
Development of entrepreneurship and support to business start-ups helps address
this employment gap, helping people to develop their own potential and find ways
to generate income and employment for themselves and others
The Entrepreneurs Development Center (EDC) coordinates with the UNDP by
provide training, policy advocacy and facilitating finance to women entrepreneurs

Promote the culture of experience sharing by successful entrepreneurs, startups,

and a conducive policy that eases registering a business, closing a business, tax
compliance and accesses to finance and information.

Developing study area and practical experience that is gained entrepreneurial

family back ground and relevant previous acceptation.

The government developed new formal academic center for training and comes
with more platform for individual entrepreneurs to fight for their dreams.

Make the system flexible and fair to see more entrepreneurs and to address such
issues, experts and entrepreneurs call for policy and institutional reforms and for
the enactment of national entrepreneurship policy.
 REFERENCE

1. Mesfin Seyoum Kebede (October 2015) Challenges and Prospects of Small

Enterprises in Ethiopia.
2. Mohammed Getahun the Challenge and Prospects of Small Scale Enterprise in
Ethiopia: A Survey of Some Selected Small Scale Enterprise in Addis Ababa City
(International Journal of Scientific and Research Publications, Volume 6, Issue 5,
May2016.
3. Website:http://www.businessdictionary.com/definition/ entrepreneurship.
4. Federal Micro and Small Enterprises (FDRE). 2000. Micro and small enterprise
support development support scheme, and implementation strategies. Addis Ababa:
Federal Micro and Small Enterprises Agency.