Small and medium enterprise in Ethiopia

Abstract

Small and Medium Enterprises have been widely credited for being an indispensable part of economic development. Its strength is gauged by the dexterity to create jobs, contribute to industrialization and boost national economic output. As a developing country, Ethiopia stands to gain by tapping into this sector. This study therefore seeks to among other things to conduct an exhaustive appraisal of the state of SMEs in Ethiopia and crucially identifying how they can be leveraged to augment the developmental quest of the country. It highlights structural and policy weaknesses that are badly in need of reform that can facilitate the goal of wrestling down poverty, improving business climate by creating the leeway for SMEs to take hold of the commanding heights of the economy.