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Ethiopian Somali Regional State

Micro and Small Enterprises Development


Agency

Second Draft of MSEs Development Agency’


Strategic Plan for the coming Five Years (2008-
2012E.C)

Tahsas, 2008

1
1. Chapter One: Current Situational Analysis
1.1. Overview of the Sector

With the support of good governance and socio-economic development programs, our country
Ethiopia has scored fast growth in the past consecutive years. Recognizing the role of MSE’s on
the socio-economic development of the country and, giving due attention to the sector, MSE
strategy and policy was formulated and has been implemented in the past years.

MSE is one of the institutions given recognition in the country’s industry development plan and
is the fact that it serves as vehicles for employment opportunities at urban center and as it
underpin (support from below with masonry) the economic development. MSE serves as
sources for sustainable job opportunities not only for developing countries like ours, but also
for developed countries. Thus they should be given prior attention as they are important and
serve for sustainable source of job opportunities to our country

Unemployment is one of the major problems in Ethiopia at 26 percent of unemployment rate. It


is manifested by deep rooted social problems and poverty in both urban and rural areas. As per
1997 E.C CSA survey results, unemployment in the Somali region is estimated at 30 percent.
According to this survey results, projection shows that unemployment will grow
correspondingly with the fast urban population growth. Accordingly, unemployment was
estimated to grow by 7 percent in 2001 and 17 percent in 2002 EFY.

1.1.A. Scope of the Intervention of the sector

According to the SPM plan the scope of the agency for the past five years was the capital cities
of nine zones of the region but, our intervention was confined to only four city administrations.

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1.1.B. Achievements of the last five years

Somali Regional State Micro & Small Enterprises Development Agency (SoReMSEDA) was
established in 2012/2004 by the ESRS. The major aim of the agency is to create job
opportunities to the unemployed women & youth living in the urban areas, reduce
unemployment of the region and create strong and competitive MSEs. Therefore, to achieve
the afro mentioned objectives the Agency prepared Organizational Structure relevant to the
implementation, selected & recruited qualified and experienced personnel comprising of
people with masters degrees, first degree and diploma level credentials of different fields. .
Accordingly the following results were achieved in the past 5 years (2002-2007 E.C).

During the five years of the plan, 30,200 Job opportunities were created, to unemployed youth,
women & other parts of the community in main towns of the Region while 1710 new micro and
small enterprises was organized.

With regard to capacitating the small enterprises, 22,400 operators and 72 extension agents
became beneficiaries of various technical and business management trainings i.e Business
management, bookkeeping, business plan preparation, Auditing, entrepreneurship including
Business Development Services /BDS, and 110,552,311.48 Birr loan was facilitated through MFI.
Besides this, a market linkage was created to the enterprises which they gained 31,670,450Birr.
Approximately 250,000 M2 land has been prepred and provided to MSEs.

In addition to this various awareness campaigns programs relating to attitude change, rent
seeking, cultivating saving culture, MSEs strategy and regulations were conducted to
implementers (MSEs, TVET, and MFI), higher, medium and lower levels officials, unemployed
youth and women as well as operators (members of the enterprises) of the region by using face
to face training, PLASMA, and printing of pamphlets.
Last but not least seven regional and zonal exhibitions were prepared.

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MSES
Descriptions Indi Baselin 2003EF 2004EF 2005E 2006EF 2007EFY SPM Gap
cato e Y Y FY Y Target
r (2002EF 2007
Y) EFY
MSEs growth % 0.92% 1.44% 3.89% 4.87% 15.65% 25% 50% 25%
MSEs sustainability % 0.92% 1.44% 3.89% 4.87% 11.65% 25% 60% 35%
MSEs support % 0.92% 1.44% 3.89% 4.87% 11.65% 25% 50% 25%
MSEs employment creation % 0.92% 5% 8% 14% 20% 30% 50% 20%
potentials
Access of MSEs to MFIs % 0.92% - 10% 17% 25% 30% 50% 20%

Women participation in MSEs % 0% 15% 20% 30% 40% 50% 60% 10%

The number of women No 400 259 1722 2658 4400 5000 25,900 11,461
beneficiaries from MSEs
cooperatives

The number of assessments on No 0 1 1 1 1 1 5 0


the number & type of the
existing MSEs their
employment generating
capacities as well as un
employment status in the
major towns of the region

MSES

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Descriptions Indicat Bas 2003EF 2004EF 2005E 2006EF 2007EFY SPM Gap
or elin Y Y FY Y Target
e 2007
(200 EFY
2EF
Y)
The number of hectares of No - - 248,458 - - - 3,110,1 2,861,6
appropriate land for production m2 14 M2 56
and markets availed to MSEs
The number of shades, working No - - - 20 - 40 838 778
premises, & market centers shade
constructed for MSEs s
The amount of local financing finance - - 588,000 892,0 64,475, 35,000,00 100,000 524,38
availed/given & market link 00 611 0 ,000 9
opportunities to MSEs
market - - 240 105 130 150
operators involved in the
various MSEs sub-sectors

The number of MSEs operators, MSEs - 600 950 1210 1,440 1300 8000 2500
experts & extension agents operat
provided with entrepreneurial ors
& technical skills training Extensi - 30 65 125 80 80 542 162
on
Agents

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MSES
Descriptions Indicato Baseli 2003 2004EF 2005E 2006EF 2007EFY SPM Gap
r ne EFY Y FY Y Target
(2002 2007
EFY) EFY
The number of Regional & No - - - 2 1 4 14 7
Zonal Exhibitions & Bazaars
organized & conducted for
MSEs
The number of one stop One s s c 1 2 4 1 2 2 61 49
centers established &
Extension 3 7 16 4 5 15 188 132
strengthened with extension agent
agents deployed in 52 towns of
the Region

1.1.C. Challenges encountered

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 Lack of support/understanding by the top Regional administrators in giving due
consideration/priority to the established small enterprises of the region during
BID/contract competition, specially construction programs
 Less attention and limited knowledge of top leaders of the region about the importance
of MSEs development;
 Delay of the approval of MSEs development regulations issued to immplement the
strategy
 Delay of provision of land for the construction of shades and cluster/market centers by
all cities administrations;
 Absence of grant fund due to delay of regulation approval
 Lack of capital budget to key projects including ( Cluster and shades (Production &
Market Centers), technical skills, technology transfer, exhibitions/bazaars and capacity
building for staff/implementers and MSEs operators)
 High staff turnover of one stop service center
1.1.D. Good Practices and Lessons Learned

The best practices of the agency were loan repayment.

Lessons learned.

 Supports to be provided to the MSEs should be based on their growth stage


(start up, growth and maturation levels).
 Support should be demand driven.
 The administration of the sectors development should be coordinated and
integrated, from the highest to the lowest level.
 The promotion of the sector requires strong political commitment both at
regional and city administration Level.
 Developmental army program is the key for the sector development as whole.

2. Chapter Two: Mandate, Vision, mission and SWOT analysis

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2.1. The Mandate, Vision and mission of the Organization
2.1.A. Mandate
 To propose policies,strategies and laws for the development and
expansion of Micro & Small Enterprises and ensure their
implemention.
 Shall device a plan with respect to in building the performance
capacity of members of Micro & Small Enterprises development of
the region .
 Shall prepare sufficient and enough land for the Micro & Small
Enterprises to be used for production & marketing.
 Shall establish a system that promotes stakeholders to coperate
actively with agency through by planning plenary and consultative
meetings.
 Shall facilitate the expansion of industrial & credit services where are
the Micro & Small Enterprises to start their undertakings
operational ,in collobration with technical ,vocational and education
training centers and Micro finance institutions.
 Adopt a system of one stop services centres of providing Micro &
Small Enterprises , the registration , testimonial letters ,
establishment, renewal and cancelation services in a simultinous.
 Shall study and forward solutions forbany obstacles for the proper
implemention of the Micro & Small Enterprises development policy .
 To establish co’operatives society and enterprises engaged in Micro &
Small scale enterpreuner activities and provide an assistance in
having business networking relationship with the market.
 To Facilitate Provision of Credits/Loans to MSEs & follow up its
Repayments
 Shall provide supports in relation to the business management
including , business plan preparation ,bookkeeping, auditing system ,

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consultances services support and facilitating technical skills training
to enable Micro & Small Enterprises are empowered in respond to
their customer needs.
 To device an appropiate strategies and mechanism that enables to
benefit from various potenial resoures of the region.
 To undertake assessment relating to the market prices of local
productions as to maintain a reliable information that can be
dependent.
 To collect, compile and disseminate information on market, business
activities and their related issues relevant to the economic sector.
 Based on the criteria set by the new Micro & Small Enterprises
development strategy shall evaluate the MSEs to be graded according
to their level of growth ( start up, growth and maturity level).
 To audit accounts of Micro and Small enterprises at least once a year
with auditos of the agency or through other auditors designated by it.
 Undertake other related duties as may be entrusted it by the
appropiate organs.
2.1.B. Vision

The vision of the sector is to see “created competitive and convenient base for industry
development

2.1.C. Mission

Through creating job opportunity, bring equal development, improve income of the society and
poverty reduction, and thereby facilitate economic growth that lays foundation for industry
development and create developmental investors.

2.1.D. Core Values

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 Customer first
 Transparency and Accountability
 Timely service delivery
 Commitment & Change-oriented
 Honest and professionalism
 Collaboration
 Affirmative action for service delivery to women and youth
 Encouraging Entrepreneurs
 Struggling Rent seeking and Negative attitude
2.2. Customer and Stakeholder Analysis

Customers of the agency are small traders, job seeking women and youth and other
communities that are willing to start their own business. Stakeholder analysis is a process of
systematically gathering and analyzing qualitative information to determine whose interests
should be taken into account when developing and/or implementing a policy or program.
Therefore the following institutions are the key stakeholders of MSEs.
SN Stakeholder What is expected from What the What happens if the Level of
the stakeholder stakeholder stakeholders Impact
expects expectation is not
met
1 Urban  Formulating details  Implementing  Distortion of High
development, of implementation all activities entire
construction and regulations and  development of
industry follow up the sect the sector
oral development
support frameworks,
 Preparing production
and sales site for
enterprises
 Perform market

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development
activities.

TVET agency/  Capacitate TVET in  organize  enterprises will high


bureau order to produce tentative not gain the
appropriate forums to required support
technologies discuss, plan, 
 provide and and evaluate
disseminate effective the sector’s
efficient technology integrated plan
development
The TVET  Organize and provide  coordinate the  Failure of entire High
industry extension implanters plan activities
services  identify the
 providing training on skill gap and
the basis of MSE submit
level of growth enterprises
/development
 Provide training and
advice services about
job
creation/innovation/
hard working
competency, and
KAIZEN
The MFI  Prepared /produced  Awareness  entrepreneurship high
financial product on creation about development will
the basis of MSE saving culture grow as required
level of the  training about  lack of trust

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growth/developmen business plan, about the
t business mgt, government
 Create a system that bookkeeping
encourage saving
culture of MSE
 Delivering and
collect credit/loan on
time
 Machinery lease
One center  Create market  Organize, and  Close monitoring,
service of towns opportunity and register evaluation and
facilitate market and enterprises support can’t be
sales sites.  Unemployment made
 Treat and implement registration  Organization of
legal systems.  Provide various Enterprises will
 Facilitating credit supports the be difficult
service, training and enterprise
technology.
NGO and  Support capacity  Identify gaps of  Existence gaps Moderate
development building programs of the sector
collaborators MSEs, TVET, and MFI  Prepare
 Analyze best proposals
experience, support indicating the
human resource and need
finance
  

2.3. SWOT Analysis

1. SWOT Analysis

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Analysis of strengths, weaknesses, opportunities and threats is a crucial step in planning
process and it’s a part and parcel of GTP II planning process. Prior identification of weaknesses
and threats help to identify relevant strategies for internal improvement and mitigation of
adverse impacts of factors beyond the sector’s control. Recognition of strengths and
opportunities facilitate ripping of maximum benefits from internal and external environments
in order to achieve the goals and targets to be set in GPT II. The table below provides a
summary of the strengths, weaknesses, opportunities and threats in the Micro and small
enterprises development sector of the Region.

2.3.A. Internal Strength and Weakness

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Strength Weakness
1. Job Creation 1. Job Creation

 Amble of jobs were created to  Most of created jobs are temporary


unemployed youth and women  Unemployment was not reduced according
 Some university and TVET graduates are to the target
implementing Government projects like
Telecommunication, electric, Road
construction, etc
 Good effort for establishing
developmental army at urban centers

2. Capacity building of Implementers and


Enterprises
2. Capacity building of Implementers &
Enterprises
 Failure to meet the increasing demand of
 Various training manuals were
technical skill trainings of MSEs
produced
 The frequency and length of business training
 ToT was provided to MSEs
is limited and short in duration
Implementers
 Some Technical skill training was
given to different MSEs
3. Industry Extension Service
3. Industry Extension Service
 Limitations in implementing the extension
 TOT on Kaizen was given to MSEs
service based on the industry development
Implementers, and Enterprises
strategy direction and supporting MSE
 There is Good starts in BDS
 Limited skill of the industry extension
 Encouraging results were gained from
service staffs
implementation of Kaizen and CoC.

4. One Stop Service Centers


4. One Stop Service Centers

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Strength Weakness
 Established One stop service centers  Existence of nominal One stop service
 Facilitated the registration of centers that can’t deliver its assigned
unemployed youth responsibilities
 Establishment of Consultation services  High staff turnover
 Miss match of actual staff and required
(Approved structure) staff for
implementing the activities
 Skill gap of the staff
5. Finance support 5. Finance support
 Finance support was given to MSEs  Grant fund regulation was approved
 Successfully facilitated on loan  Limited targeted groups are benefited
repayment 

2.3.B. External Opportunities AND THREATS

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Opportunities Threats
 Existence of MSEs given due  Lack of support/understanding by the
attention at national level Regional Bureaus in giving due
 Graduates willing to start business consideration/priority to the established
 Expansion of TVET centers and MFIs small enterprises of the region during
 Increment of NGO’s and DONORs BID/contract competition, specially
involved in livelihood program and construction programs
job opportunities activities  Lack of delegating of one stop service
 Commencement of mega in the centers to provide complete services to the
region that an ample job community such as providing trade license,
 Development of Developmental investment license, TIN/VAT registrations,

army instrument s to lead the sector Cooperative Certificates, Title deeds,


development bylaws in one stop center

 Expansion of infrastructure  Delay for the approval of MSEs Regulations

 Growth of agricultural economic  Delay of provision of land for the

sector construction of shades and cluster/market

 Improvement of community’s and centers by all cities administrations;

beneficiaries’ attitude toward the  Shortages of budgets allocated for the


importance of the sector construction of shades and clusters;

 Establishment of Mass media Agency  Limited awareness by the Regional


transmitting on local language Stakeholders about MSE Development

 Availability of new universities and Strategy, Regulations & Directives

research institutions (stockholders mainly Regional Bureaus)


 Lack of capital budget to key projects
including ( Cluster and shades (Production
& Market Centers), technical skills,
technology transfer, exhibitions/bazaars
and capacity building for
staff/implementers and MSEs operators)

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Opportunities Threats
 Lack of industry extension service support
capable of improving the quality and
productivity standard
 Failure to produce import substitute goods
and enhance export product

3. Chapter Three: Strategic Pillars and Directions of the Plan

This section provides the strategic directions that Agency has developed to create a more
effective and coherent approach to small enterprise development for the coming five years. It
sets out the principles of integration, provides a summary of the strategic pillars that have been
developed to integrate the potential roles of government, and identifies the target groups that
have been prioritized by government in order to address unemployment, poverty, market
failures and lay foundation for industry development.

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In particular, this strategy has a vision of Ethiopian Somali Region as an entrepreneurial Region
that rewards and recognises those who recognise a business opportunity and pursue it, with a
vibrant and competitive small enterprise sector with enterprises that grow in both size and
success.

 Entrepreneurship Development and Implementation Capacity Building


 Job Creation
 Facilitation of Enterprises Development
3.1. Entrepreneurship Development and Implementation Capacity Building
Program

There are various problems that hindered the development of the sector. They can be revealed
in various forms for example; perceiving the MSE themselves as reflection of poverty and
backwardness, waiting government for job rather than being innovative, failure in developing
the culture of saving and living with ones income/ dependency/ are some of the indicators of
failure in improving productivity and being competent in market.

Capacity building of the implanters is one of the best ways that can solve existing gaps of
implementing bodies, prevailing attitude of the operators and community toward the
development of the sector. Implementer’s needs training on sustainable attitudinal change, and
developing knowledge and skill in order to execute development plan of the sector effectively,
thereby prepare and implement supports based on knowledge.

It helps implementers to design and expand best practices, increases the participation of job
seekers, enterprises and community at large developing sense of self initiation by giving due
attention for developing entrepreneurship thought and knowledge, and making them free from
dependency.

3.2. Job Creation

MSE is one of the institutions given recognition in the country’s industry development plan and
is the fact that it serves as vehicles for employment opportunities at urban center and as it

18
underpin the economic development. MSE serves as sources for sustainable job opportunities
not only for developing countries like ours, but also for developed countries like USA. Thus they
should be given prior attention as they are important and serve for sustainable source of job
opportunities to our country.

The major aim of this strategic pillar is to play decisive role in solving unemployment by
providing job opportunities to university and TVET graduates and other part of community,
create developmental investors who contribute in creating industry development and by
building up developmental political economy in urban.

3.3. Facilitation of Enterprises Development

Understanding the strategic value and giving due attention for the development of MSE should
not be the end rather it is just beginning. In the process of developing MSE their core problems
should be identified and designed solutions/directions accordingly. Although there are various
problems that hinder the development of MSE, the main problem is backward attitude towards
rent seeking, technology and skill gap, capital and market challenges.

The reason for such challenges is geared with poor attitude towards development and
democratic thought. Lack of access to sufficient seed money or finance facing huge capital
problem at start up stage is another bottleneck, and is resulted from failure of having strong
trust in ones saving effort with both the actors and families of actors. Lack of commitment
towards changing the backward technology, lack of access to market for their products and
services coupled with failure in producing according to market in terms of Quality and Price,
and Competitive Approach, is the other problem.

4. Chapter Four: Strategic Goals, Objectives, Targets and Implementation Strategies

General direction of development

The short term of the sector is to ensure fast development by saving capital and thereby
benefiting the society from the development, the medium and long term plans are

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targeted at serving as source of investors and time for entering to sustainable and fast
growth cycle by strengthening technology and capital ability.
MSE plays decisive role in solving unemployment by creating developmental investor
who contribute in creating industry and by building up developmental political economy
in urban. The government thus will give prior attention to MSE’s development in the
industry and urban development sector.
Providing job opportunities to those graduated from university and TVET by developing
youth’s skill and innovation, perception and improving their saving culture
To realize human resource and technology development, the TVET institution will take
the task of industry extension service in ownership right based on the direction of
industry development strategy.
The sector will be developed by integrating with agriculture, medium and higher
industry.

Therefore based on principles indicated on sectors strategic development program and


Implementation Direction the following major directions are identified;

 Directions on Job creation of the sector, ensuring urban food security, incubation of
developmental investors to facilitate economic growth and lays foundation for industry
development

 Based on market demand and value chain assessment; follow direction that enables the
industrial extension services (Training, Technology, Kaizen, BDS and Entrepreneurship)
establish and expand model enterprises engaged in production and service sector.
 Enabling job seekers to be free from sense of dependency, develop their saving culture
and strength their entrepreneurship capacity there by ensure to make them identify and
solve their challenges in a individual and organized manner
 Based on the nature of enterprises and level of growth create One stop service centers
that facilitates legalities and governmental support

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 Follow Directions that give due attention and provide full support to the Enterprises
engaged in Manufacturing sector so as to develop their competitiveness and link with
medium and large industries
 Designing directions that ensures women, youth and disabled people are full
participating and benefiting the sector
 Follow directions that ensures equitable distribution of wealth

Strategic Objectives

The key strategic objectives can be summarized as follows

Increase the contribution of small enterprises to the growth of the region’ economy
create an enabling environment for small enterprises with a level playing field between
big business and small enterprises, that reduces the disparities between urban and rural
enterprises and is conducive to entrepreneurship,
create sustainable long-term jobs in the small enterprise sector
ensure equitable access and participation in term of race, gender, disability, age,
geographical location and sector,
Increase the competitiveness of the small-enterprise sector and its enabling
environment so that it is better able to take advantage of opportunities emerging in
regional and national markets.

4.1. Pillar1: Entrepreneurship Development and Implementation Capacity Building

Capacity building of the implanters is one of the best ways that can solve existing gaps of
implementing bodies, prevailing attitude of the operators and community toward the
development of the sector. Implementer’s needs training on sustainable attitudinal change, and
developing knowledge and skill in order to execute development plan of the sector effectively,

21
thereby prepare and implement supports based on knowledge. Having knowledge and skill
based on other regions or countries best experience and to implement the strategy on the basis
of existing situation of the region is necessary.

It helps implementers to design and expand best practices, increases the participation of job
seekers, Enterprises and community at large developing sense of self initiation by giving due
attention for developing entrepreneurship thought and knowledge, and making them free from
dependency.
4.1.A. Goal 1: the promotion of entrepreneurship and the preconditions for
entrepreneurial

Target:

 Provide training of trainees on attitude and skill to 200 top level management and 500
middle and lower level management members of implementers and stakeholders and
1200 experts of the sector
 Provide continues training to 300 front line community leaders in the d/t level
 Prepare community mobilization manuals and train 75,000 communities to enhancing
the understanding and knowledge towards the sector there by participate in the
planning, implementation, monitoring and evaluation process
 Provide 10 times of long term training and 20 times of medium term training and 30
times of short term training to leaders and professionals.
 Provide continues awareness creation training on entrepreneurship attitude &
entrepreneurial skill to 75,000 operators, new job seekers, & overall community levels
 Establishment of one Entrepreneurship Development center
 Provide entrepreneurship trainings to 400 ToT Trainers and 5000 existing enterprises,
75,000 job seekers specially to 4,000 TVET graduates and 2000 university graduate
candidates so as to enrich their entrepreneurship knowledge
 Reviewing previous 11 regulations to identify their drawbacks and rectify based on the
interest of the enterprises. In addition to this, 15 new regulations will be issued

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 Selection of 50 best practices of support service delivery system and best practices of
model enterprises to transfer to others
 Adopt 10 best practice from different regions of the country
 Preparation of one document facilitating the expansion of best practices and provide
award/certificate to 2 model city administration, 5 model one stop centers, 15 model
experts, and 50 enterprises once a year

Implementation Strategies

 Provision of need-based and tailor-made capacity building and skill training programs
for MSEs in collaboration with specialized government and non-governmental regional,
national and international institutions;
 Awareness and attitudinal changing programs for youth and women groups about the
principles of MSEs and importance of self employing income generating activities ;
 Development of entrepreneurship and entrepreneurial skills via massive skill training
and capacity building programs;
 Further spread the inclusion of entrepreneurship modules in the teaching of technical,
commercial and other skills at TVET institutions,
 Carry the message of entrepreneurship as “driver of MSE growth and job creation” into
lower-income communities, townships, youth groups and generally all the segments of
the economy, where there is still much misunderstanding about entrepreneurial routes
towards self-employment and poverty alleviation.
 Handholding or mentoring interventions for start-ups will be encouraged and supported
Significantly increase applied research into the factors that determine entrepreneurship
participation levels in communities, and steps that can be taken to strengthen
entrepreneurial abilities at different age, gender, literacy and skill levels, and to
disseminate those results in a way that makes them accessible to business leaders,
educators and policy planners

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 Strengthen public awareness about the significance of entrepreneurship for future
growth and global competitiveness and to spread awareness about important tools for
such a strengthening,
4.2. Pillar 2: Job Creation and Urban safety net

One of the major challenges in reducing informal employment in the country is to facilitate the
transition to formality of micro and small enterprises, which are the main generators of
employment in our region. This is a complex challenge as informality is a multidimensional
phenomenon and as the reality of MSEs is highly heterogeneous. The design of MSE policies
needs to take into account that there is a difference between formalizing small enterprises and
formalizing employment in these firms. The reality is that undeclared work also exists in an
important share of registered MSEs. Therefore special attention should be paid to strategies for
the creation of formal jobs in this segment of enterprises.

4.2.A. Goal 2: Facilitate and Promote the Formation of MSEs


Major Targets:
Urban safety net

 Psychological & life skill training support for 15,000 socially vulnerable groups.
 Depending on the growing urban population 10,000 jobs will be created.

Manufacturing Sector

 By providong full support Create 15,000 job opportunities for unemployed citizens
seeking job in Manafacturing Sector & provide full support specially 5000 jobs in metal
works, 5000 wood works, 250 Bamboo and 2000 traditional materials,
 By providong full support Create job opportunities 1500 in textile and garments, and
1500 jobs in Agro-processing and food preparation for unemployed citizens seeking job;

Urban Agriculture

24
 By providong full support Create 10,000 job opportunities for unemployed citizens
seeking job in Urban-Agriculture

Construction Sector
 By providong full support Create 20,000 job opportunities for unemployed citizens
seeking job in Construction Sector & provide full support
Governmental Development Projects
 Create 5000 job opportunities for unemployed citizens seeking job in Government
Projects like sugar factory, road development, electric expansion and other new
projects
Trade and Service Sector
 By providong full support Create 15,000 job opportunities for unemployed citizens
seeking job in Trade and Service Sector
Implementation Strategies

 Awareness and attitudinal changing programs for youth and women groups about the
principles of MSEs and importance of self employing income generating activities ;
 Development of entrepreneurship and entrepreneurial skills via massive skill training and
capacity building programs;
 Registration and categorization of unemployed youth and women groups for easy
organization, and
 Establishment of one-stop centers with bill boards at kebele level that provides regulatory,
assessments and support services.

4.3. Pillar 3: Enterprises Development


Support programs required by MSEs include measures related to facilitating access to finance,
provision of incentives, promotion of partnerships, training, access to appropriate technology,
access to market, access to information and advice, infrastructure and institutional
strengthening of the private sector associations and chamber of commerce.

4.3.A. Goal 3: Create an Enabling and Conducive Environment for MSEs Operators
25
Major Targets
Strengthening and Expansion of One stop Service Centers
One stop service center is a service established to provide MSE to be involved in production and
services legally, to be beneficiary from government support and to enable to provide services in
an integrated, transparent and efficient way

 Establishment of 44 New One Stop Service Centres to ensure that enterprises are
provided full support of the government
 Strengthening of 10 existing one stop service center by making sure that their human
resource, material, and standard system are fully met thereby provide standardized
quality, full and growth level based support service to 100,000, Beneficiaries
Legalizations
 Registration of 75,000 job seekers, identify organizational type that can make them
competitive and profitable, give brief awareness on types (nature) of organization, and
issue trade license and tax identification number (TIN) to 7500 Enterprises
 Facilitate and ensure that 100,000 existing and new enterprises are using modern
bookkeeping system and giving priority to manufacturing engaged enterprises provide
1200 and 500 enterprises bookkeeping and audit service respectively;

Governmental provisions and services

 Prepare 5 fund raising proposals that can help capacity building of implementers, job
creation, strengthening & constructing shades, cluster and market center
 Provide 75,000 registered job seekers full information and advice on nature of
organization, business plan preparation, provision of government support and utilization
 Create cluster development linkage to 35,000 new and existing cities
 Ensure that 6,110,114 M2 of appropriate land for production and markets is availed for
MSEs; Construct 500 shades market centers (Small kiosk), 50 Buildings, and 15 working
premises; and facilitate to 25,000 new enterprises
 Prepare new regulations improving finance service delivery system
 Facilitate 1 billion Birr loan service support to 75,000 Operators

26
 Based on the growth level support provisions ensure that 450 micro enterprises are
transferred to small enterprise and 350 small enterprise are transferred to medium
enterprise
Development of manufacturing sector
The development of an integrated manufacturing strategy aims to maximize the potential
contribution of the manufacturing sector within the domestic economy. It also tries to help
industry integrate into the global economy and build competitiveness based on an increased
knowledge intensity and greater value addition. Naturally, small enterprises have to play a
crucial role in this evolving strategy.

 Establishment of lease machine institution


 To increase the production, productivity and quality 1500 enterprises will be facilitated
capital finance
 To lessen the burden of production premises of enterprises and minimize their
operational expenses a total of 15 building will be constructed and facilitated to 50 for
metal and wood works, 50 for textile and hides, and 50 for Agro-processing .
Market development and marketing project
 Create local market opportunity of Birr 1 billion to 7500 Enterprises
 Facilitate 15 regional and 10 national exibition and Bazaar for experience sharing and
market linkage to 1500 model enterprises and market opportunity of Birr 50 Million and
10 Million respectively
 By improving the product quality and competitiveness create export marked linkage to
1000 enterprises and market opportunity of Birr 30 Million

Industry Extension service

Industry Extension service supports activities such as organizing information, providing training
on entrepreneurship and trade management, technological development and growth selection
of technological transfer, marketing productivity quality improvement and ISO and include
analyzing and transfer best experience.

27
 Provide Business mgt training to 75,000 members of the existing & newly established
enterprises and technical & skill training to 15,000 members of the existing & newly
established enterprises through TVET institutes
 Provide ToT training on Basic Entrepreneurship and BDS to 500 implementers
 Development of 30 Prototype of which 20 will be transferred to MSEs
 COC assessment to 5000 Enterprises
 Provide Kaizen service support to 5000 Enterprises
 Provide ToT training on Basic Entrepreneurship attitude and skill through BDS to 500
trainers

Implementation Strategies:
 Establish MSEs boards at regional, zonal and woreda levels that help to ensure support
from stakeholders are coordinated as required and constraints faced addressed;
 Establish strong relationship of MSEs and TVET colleges to ensure that TVET colleges are
aligned with knowledge and skill demands of MSEs;
 Establishment of ten new MSEs Development Agency with appropriate structure;
 Massive various awareness programs including workshops, seminars, publications,
brochures, manuals, etc, enhancing the understanding and perception towards MSEs by
stakeholders and to enable the accomplishments of goals and targets of the plan;
 Seek and prepare appropriate land for production and markets for MSEs;
 Enhancing sub-contracting system of government projects to MSEs to enable MSEs capacity
and employment generation activities;
 Creation and expansion of market opportunities to MSEs enterprises to enable them to be
competent and supply their goods and service with ease;
 Provision of business development services support such as modern technologies for MSEs
to enhance their product quality and minimize failure of MSEs;
 Development of website that provides business and market information for MSEs
products, and
 Provision of information, counseling and coaching services directly and indirectly by
developing website and database that provides business and market information.

28
Strengthening modern data recording and mgt system sub program

 To ensure the smooth flow of data recording/ handling, organization and dissemination of the sector
information technology infrastructure will be established in nine regions & 2 city administration
 The established information technology infrastructure will be implemented and upgraded
 Establishment of new system that can be easily managed the human, material and financial resource
 Provision of business development services support such as modern technologies for MSEs
to enhance their product quality and minimize failure of MSEs;
 Development of website that provides business and market information for MSEs
products, and
 Provision of information, counseling and coaching services directly and indirectly by
developing website and database that provides business and market information

Social Safety net Project

 By greening parking lots, resting places, schools, festival/ceremonial places and


government offices provide 5000 job opportunities to unemployed youth and women
 Provide 4000 job opportunities to unemployed youth and women on plantation of
decorating trees in the street/road area and stadiums
 Conduct master plan in five cities of which 100,000 and above population are living
thereby create 2500 jobs to un employed youth and women in recycling and greening of
condominiums

Integrated irrigation Development Project of Cities

 Promote green development strategy and create 2500 job opportunity to unemployed
youth and women on plantation/greenery activities in water areas of the cities
 Based on irrigation development conduct agricultural and forestry development
activities thereby create 7500 job opportunity to unemployed youth and women living
in five Urban and Pre-urban areas

29
 In line with the urban greening development strategy implement sustainable water
conservation and utilization technology in 10 cities by creating 2000 jobs to unemployed
youth and women
 Create 4000 job opportunity to unemployed youth and women in nursery production
sites that will produce new and existing decoration trees, fruit, forage and grasses

Solid Waste Collection and Disposal Project

 Create 15,000 job opportunity to unemployed youth and women in door to door solid
waste collection and disposal activities
 Provide 7,000 job opportunity to unemployed youth and women in main road and coble
stone sanitation activities
 Provide 10,000 job opportunity to unemployed youth and women in door to door solid
waste collection, segregation and recycling
 Create 5,000 job opportunity to unemployed youth and women living in cities for
compost making of solid wastes.
 Create 3500 jobs to un employed youth and women the collection of solid wastes in
market places of cities which 100,000 and above population are living

Social safety net Project

 Provide direct and Psychological support for 50,000 socially vulnerable groups like
elders, disabled, children and those are not mentally fit
 Give Psychological, consultation and financial support to 6,000 homeless and beggars
 Provide direct support to 50,000 people living the region

Urban Agriculture Project

 Provide 2500 job opportunity in fruit and vegetable development to members and
families living below the poverty line thereby improving their income
 Provide 250 job opportunity in nursery to members and families living below the
poverty line thereby improving their income
 Provide 500 job opportunity in Mushroom to members and families living below the
poverty line thereby improving their income

30
 Provide 7000 job opportunity in livestock production and fattening to members and
families living below the poverty line thereby improving their income
 Provide 1500 job opportunity in bee and honey production to members and families
living below the poverty line thereby improving their income
 Provide 500 job opportunity in to members and families living below the poverty line
thereby improving their income
 Provide 150 job opportunity in fish production and fishing to members and families
living below the poverty line thereby improving their income

Input Supply Project

 5000 street traders will be availed market and production centers


 50,000 people committed to improve their living standard will be facilitated marketing
and technology
 100,000,000 Birr of market linkage will be created from Governmental and Non
Governmental Organizations
 Facilitate 1 billion Birr loan service support to 75,000 Operators
4.4. Cross-cutting foundation services
 Increase the women beneficiaries of MSEs sector from 40% to 50%
 Ensuring HIV mainstreaming in every plans of the sector
 Integration of awareness creation programs of the sector with HIV awareness

31
Target Implementation Schedule

S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
1
1.1. The promotion of entrepreneurship &
implementation capacity building Sub Program
1.1.1. Promotion of entrepreneurship &
implementation capacity building projects
1.1.1.1. Provide training of trainees on attitude and skill Top level mgt 200
to 200 top level management and 800 middle
and lower level management members of
implementers and stakeholders and 1200
experts of the sector
Middle & lover 1000
level mgt
Experts 1200
1.1.1.2. Provide continues training to 300 front line front line leaders 300
community leaders in the d/t level
1.1.1.3. Provide 10 times of long term training and 20 long term 10
times of medium term training and 30 times of
short term training to leaders and
professionals.
Medium term 20
Short term 30
1.1.1.4 Provide continues awareness creation training overall 75,000
on entrepreneurship attitude & entrepreneurial community
skill to 75,000 operators, new job seekers, &

32
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
overall community levels
1.1.1.5 Identification of challenges facing to four regions Projects
that need special support
1.1.1.6 Establishment of six Entrepreneurship Center 0
Development centers to six regions
1.1.1.7 Strengthening of four TVET centers that provide Center 1
Entrepreneurship services
1.1.1.8 Provide short term trainings on ToT Trainers 400
entrepreneurship development culture to 400
ToT Trainers and 5000 existing enterprises,
75,000 job seekers specially to 8000 TVET
graduates and 3000 university graduate
candidates so as to enrich their
entrepreneurship knowledge
existing enterprise 5000
TVET graduates 4000
university 2000
graduate
2.1.2. Development of Enterprises and their production
project
2.1.2.1 Based on the increasing population 75,000 job Job created 75,000

opportunities will be ceated MSEs


2.1.2.2 By providong full support Create 15,000 job metal works 5000

opportunities for unemployed citizens seeking


job in Manafacturing Sector & provide full
support specially 5000 jobs in metal works,

33
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
5000 wood works, 2000 traditional materials,

wood works 5000


Bamboo 250
traditional 2000
materials
2.1.2.3 Create 1500 job opportunities in textile and textile 1500
garments and hide and skin
hide and skin 1500
2.1.2.4 Create 1500 job opportunities in Agro- Agro-processing 500
processing and food preparation to
unemployed citizens seeking job
food preparation 1000
2.1.2.5 By providong full support Create 10,000 job Urban-Agriculture 10,000

opportunities for unemployed citizens seeking


job in Urban-Agriculture

2.1.2.6 By providong full support Create 20,000 job Construction 20,000

opportunities for unemployed citizens seeking


job in Construction Sector & provide full
support

2.1.2.7 Create 5000 job opportunities for unemployed Government 10,000


Projects
citizens seeking job in Government Projects

34
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
like sugar factory, road development, electric
expansion and other new projects

2.1.2.8 By providong full support Create 15,000 job Trade and Service 15,000

opportunities for unemployed citizens seeking


job in Trade and Service Sector
Service 9000
Trade 6000
2.2. Government Facilitation Support Sub Program
2.2.1 Facilitation of Government Support Services Project
2.2.1.1. Continuous evaluation of guideline and regulations Modification of 3
of the sector development thereby rectify the guideline and
identified gaps and prepare new regulation and regulations
guidelines applicable to the prevailing situation
new regulations 15
prepared
2.2.1.2 Prepare 5 fund raising proposals that can help fund proposals 5

capacity building of implementers, job


creation, strengthening & constructing shades,
cluster and market center
2.2.1.3 Establishment of 44 New One Stop Service New One Stop 44
Service
Centres to ensure that enterprises are provided
established
full support of the government
2.2.1.4 Strengthening of 10 existing one stop service 10 existing one 10
stop service
center by making sure that their human

35
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
resource, material, and standard system are
fully met thereby provide standardized quality,
full and growth level based support service to
100,000, Beneficiaries
No of Operators 100,000
2.2.1.5 Registration of 75,000 job seekers, identify Registration of job 75,000
seekers
organizational type that can make them
competitive and profitable, give brief
awareness on types (nature) of organization,
and issue trade license and tax identification
number (TIN) to 7500 Enterprises
No of enterprises 7,500
established
2.2.1.6 Facilitate and ensure that 100,000 existing and No Enterprises 12,000
new enterprises are using modern bookkeeping obtained
system and giving priority to manufacturing bookkeeping
engaged enterprises provide 1200 and 500
enterprises bookkeeping and audit service
respectively
No Enterprises 5000
obtained Auditing
2.2.1.7 Provide 75,000 registered job seekers full No of new entrants 75,000
information and advice on nature of
organization, business plan preparation,
provision of government support and utilization
2.2.1.8 Create cluster development linkage to four city Cities 4

36
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
administrations
2.2.1.9 Ensure that 6,110,114 M2 of appropriate land Prepared land 6,110,114
M2
for production and markets is availed for MSEs;
Construct 500 shades market centers (Small
kiosk), 50 Buildings, and 15 working premises;
and facilitate to 25,000 operators consisting
2500 new enterprises
Buildings 50
Shades 500
market centers 15
Operators 25,000
enterprises 2,500
2.2.1.10 Facilitate 1 billion Birr loan service support to Loan distributed 1,000,000,
000
75,000 Operators
No of Beneficiaries 75,000
Loan repayment 1,000,000,
000
2.2.1.11 Improve saving culture of enterprises, implementers Saving 800,000,00
and entire society thereby ensure that 80% of the 0
distributed loan comes from saving
2.2.1.12 Based on the growth level support provisions From micro to 1000
small enterprise
ensure that 1000 micro enterprises are
transferred to small enterprise and 350 small
enterprise are transferred to medium

37
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
enterprise
small to medium 350

enterprise
2.2.1.13 to increase the production, productivity and No of Enterprises 1000

quality 1000 enterprises will be facilitated


capital finance

2.2.1.14 To lessen the burden of production premises of No of enterprises 2,500

enterprises and minimize their operational


expenses a total of 15 building will be
constructed and facilitated to 50 for metal and
wood works, 50 for textile and hides, and 50 for
Agro-processing
metal and wood 50
works
textile and hides 50
Agro-processing 50
2.2.1.15 Create local market opportunity of Birr 1 billion Market linkage in 1,000,000,
Birr 000
to 7500 Enterprises

No of enterprises 7,500
No of Exhibitions at 15
regional
2.2.1.16 Facilitate 15 regional and 10 national exibition No of enterprises 1500

38
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
and Bazaar for experience sharing and market at regional
linkage to 1500 model enterprises and market
opportunity of Birr 50 Million and 10 Million
respectively
Market linkage 50,000,000
created at regional
No of Exhibitions at 10
national
No of enterprises 100
at national
Market linkage 10,000,000
created at national
No of Exhibitions at 0
international
No of enterprises 0
at international
Market linkage 0
created at
international level
2.2.1.17 Create export market opportunity of 30 million No of enterprises 1000

USD to 1000 Enterprises

Market linkage 30,000,000


created
2.2.1.18 Establishment of Online marketing service No of enterprises 20
2.2.2 Cross cutting Activities
2.2.2.1 Increase the women beneficiaries of MSEs Participation of Job 50%
opportunities

39
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
sector from 40% to 50%
Participation of 50%
trainings
Access of finance 50%
Access to Market 47%
center/shades
Access to Market 50%
linkage
2.3. Industry Extension service sub program
2.3.1 Improvement of Extension Delivery Service Project
2.3.1.1 Provide Business mgt training to 75,000 No of Enterprises 7500
gained Extension
members of the existing & newly established Service
enterprises and technical & skill training to
15,000 members of the existing & newly
established enterprises through TVET institutes
No of operators 75,000
gained business
mgt

No of operators 15,000
gained technical kill
training
2.3.1.2 Provide ToT training on Basic Entrepreneurship No of Trainees 500

and BDS to 500 implementers


2.3.1.3 Development of 30 Prototype of which 20 will No of prototype 30
developed
be transferred to MSEs
No of Distributed 20

40
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
2.3.1.4 Provide Kaizen service support to 5000 No of Enterprises 5000

Enterprises

2.3.1.5
2.3.1.6 Provide ToT training on Basic Entrepreneurship No of Trainees 500

attitude and skill through BDS to 500 trainers


2.4 Strengthening modern data recording and mgt
system sub program
2.4.1 Infrastructure development and database mgt
system project
Ensure
2.4.1.1 To ensure the smooth flow of data recording/ information 1
handling, organization and dissemination of the technology
sector information technology infrastructure will be infrastructure
established in nine regions & 2 city administration
2.4.1.2 The established information technology System Roll Out 1
infrastructure will be implemented and upgraded
2.4.1.3 Establishment of new system that can be easily MIS 1
managed the human, material and financial
resource
3. Urban Food Security and Developmental Safety
Net
3.1. Social Safety net Project
3.1.1. By greening parking lots, resting places, schools, Job created from 5000
green development
festival/ceremonial places and government
offices provide 5000 job opportunities to
unemployed youth and women

41
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
3.1.2 Provide 4000 job opportunities to unemployed Job created from 4000
street decorating
youth and women on plantation of decorating
trees in the street/road area and stadiums
3.1.3 Conduct master plan in five cities of which Jobs created from 2500
100,000 and above population are living recycling and
thereby create 2500 jobs to un employed youth greening of
and women in recycling and greening of condominiums
condominiums
3.2. Integrated irrigation Development Project of
Cities
3.2.1 Promote green development strategy and Jobs created 2500
create 2500 job opportunity to unemployed
youth and women on plantation/greenery
activities in water areas of the cities
3.2.2 Based on irrigation development conduct Jobs created 7500

agricultural and forestry development activities


thereby create 7500 job opportunity to
unemployed youth and women living in five
Urban and Pre-urban areas
3.2.3 In line with the urban greening development Jobs created 2000

strategy implement sustainable water


conservation and utilization technology in 10
cities by creating 2000 jobs to unemployed
youth and women

42
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
3.2.4 Create 4000 job opportunity to unemployed Jobs created 4000

youth and women in nursery production sites


that will produce new and existing decoration
trees, fruit, forage and grasses
3.3. Solid Waste Collection and Disposal Project
3.3.1 Create 15,000 job opportunity to unemployed Jobs created 15,000

youth and women in door to door solid waste


collection and disposal activities
3.3.2 Provide 7,000 job opportunity to unemployed Jobs created 7000

youth and women in main road and coble stone


sanitation activities
3.3.3 Provide 10,000 job opportunity to unemployed Jobs created 10,000

youth and women in door to door solid waste


collection, segregation and recycling
3.3.4 Create 5,000 job opportunity to unemployed Jobs created 5000

youth and women living in cities for compost


making of solid wastes.
3.3.5 Create 3500 jobs to un employed youth and Jobs created 3,500

women the collection of solid wastes in market


places of cities which 100,000 and above
population are living
3.4. Social safety net Project

43
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
3.4.1 Provide direct and Psychological support for Jobs created 50,000
50,000 socially vulnerable groups like elders,
disabled, children and those are not mentally fit
3.4.2 Give Psychological, consultation and financial Jobs created 6000
support to 6,000 homeless and
3.4.3 Provide direct support to 50,000 people living Jobs created 50,000
the region
3.5. Urban Agriculture Project
3.5.1 Provide 2500 job opportunity in fruit and Jobs created 2,500
vegetable development to members and
families living below the poverty line thereby
improving their income

3.5.2 Provide 250 job opportunity in nursery to Jobs created 250


members and families living below the poverty
line thereby improving their income
3.5.3 Provide 500 job opportunity in Mushroom to Jobs created 500
members and families living below the poverty
line thereby improving their income
3.5.4 Provide 7000 job opportunity in livestock Jobs created 7,000
production and fattening to members and
families living below the poverty line thereby
improving their income
3.5.5 Provide 1500 job opportunity in bee and honey Jobs created 1,500
production to members and families living
below the poverty line thereby improving their
income
3.5.6 Provide 500 job opportunity in to members and Jobs created 500
families living below the poverty line thereby

44
S/No Programs and Goals Indicators Baselin Five Years 2008 2009 2010 2011 2012
e Plan
improving their income
3.5.7 Provide 150 job opportunity in fish production Jobs created 150
and fishing to members and families living
below the poverty line thereby improving their
income
3.6. Input Supply Project
3.6.1 5000 street traders will be availed market and No beneficiaries 5000
production centers
3.6.2 50,000 people committed to improve their No beneficiaries 50,000

living standard will be facilitated marketing and


technology
3.6.3 100,000,000 Birr of market linkage will be market linkage 100,000,0
00
created from Governmental and Non
Governmental Organizations
3.6.4 Facilitate 1 billion Birr loan service support to Loan facilitated 1,000,000,
000
75,000 Operators

45
46
6. Chapter Five: Monitoring and Evaluation
6.1. Research and Policy Program

The importance of systematic, regular and objective monitoring and evaluation of progress with
the overall strategy and its different components is beyond dispute.
Hence, one of the core issue given priority in the sectors’ development is research and policy
program. The main aim of this program is to periodically assess status of the sector and
coordinate the implementation by monitoring whether the planned resulted are obtained,
correct any deviations and identify the gaps and finally come up with concrete solution for the
future directions.

 Conduct Assessment on the sectors development


 Fund raising for the sector development
6.2. Align and Integrate Regional and City Administrations Strategic plan

 Develop guidelines for Municipalities for developing their MSE Strategies and Programs
 Develop monitoring guidelines across the Region on MSE support
6.3. Ongoing Monitoring of the Implementation of the Strategy

Monitoring is a continuing function that aims primarily to provide early indications of progress,
or lack thereof, in the achievement of objectives. Monitoring helps to identify and assess
potential successes and challenges and provides the basis for corrective actions to improve
implementation and to obtain quality results. The most important issue about monitoring is
what needs to be monitored in order to come up with relevant monitoring tools relevant to this
Strategy.

As already mentioned above, what needs monitoring is the objective of the strategy, the
achievement of its pillars and its strategic priority areas.

6.4. Evaluation of the Strategic Plan

Evaluation is a time-bound task that attempts to assess systematically and objectively the
relevance, performance and success of ongoing or completed projects. It is a process by which

47
the project inputs, activities and results are analyzed and judged against explicitly stated norms
– objectives, work schedule, budget etc.

The evaluation of this strategy will take the form of six months evaluations. The terms of
reference for all evaluations should be in line with the business plans and activities planned for
MSE development. The reports should assist in fine tuning implementation activities and
identify more challenges and opportunities.

48

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