Micro & Small enterprise (MSE) system
Increasing incomes by reducing barriers to business entry and growth and stimulating innovation
Micro and small enterprises (MSEs) are key drivers of income generation and job creation in Addis Ababa, particularly as wage employment opportunities are unable to keep pace with the burgeoning labour supply. However, despite government strategies and initiatives to support MSE start-up and growth, MSEs continue to be constrained by several factors. Women and youth experience even greater constraints with respect to business start-up and growth due to factors such as societal expectations, domestic responsibilities, weak social networks, and lack of access to resources.
Critical Constraints
We identified critical constraints with the greatest potential for sustainable change and impact at scale
Limited access to appropriate and affordable operational space for MSEs to produce and promote products
Lack of access to finance due to financial products and requirements that do not meet the needs and realities of many MSEs
Lack of quality, up-to-date business-related information and networks suited to MSEs
Rules and regulations that are unconducive to MSE start-up and growth
Intervention Focus areas
We are focused on the following intervention areas to address the critical constraints
Availability of accessible and affordable physical and online spaces for MSE production and trade such as shared workspaces, physical bazaars, and digital platforms
New financial products and requirements suited to MSEs, including new credit, savings, and digital finance offerings, and new forms of collateral
Availability and relevance of business-related information for MSEs to help start and grow businesses
Value chain partnership to create new business opportunities, ensure consistent product supply and prices, and provide access to goods on credit
Policy and regulation reform to create an enabling environment for MSEs
System Lead: SNV
Other focus systems
Medium & large
enterprise (mle)
system
Reducing barriers to business entry and growth and stimulating innovation
Skills
system
Improving skills development to unlock wage and self-employment opportunities