Rationales
of MSEs Development Program
It is based on the following main rationales
that the regional government has decided
to promote MSEs in the region:
- MSEs
have strong impact on employment creation
& income generation, especially
for urban poor.
- Serve
as an effective tool for poverty reduction
and sustainable development and hence
achieve PASDEP /Plan for accelerated
and Sustainable Development for Eradicating
Poverty / & Millennium Development
Goal.
- Create
strong backward and forward linkage
between Agriculture and Industry.
- Lay
a base for Industrial & Entrepreneurship
Development and Innovation,
- Facilitate
Equitable Income Distribution in the
Regional Economy,
- Promote
the process of building market economy
and private sector.
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VISION
of the MSE's Development Program
Create Micro and Small Enterprises that
are competitive in the domestic and international
markets and play superior role in the Region’s
economic and social development and creating
middle income urban communities in large
numbers in the coming 20 to 30 years.
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Sub-Programs
Regional MSEs Development Program is subdivided
and organized in to the following 13 subprograms
and supports:
- Information
and Public Relations Service,
- Market
Support Service,
- Training
and Business Counseling Service,
- Entrepreneurship
Development Service,
- Production
and Sales Premises Service,
- Financial
Service,
- Appropriate
Technology and Production Equipment
Service,
- Raw
Materials Supply Service,
- Infrastructure
Development and Provision Service,
- Organizational
Service,
- Product
Quality and Productivity Improvement
Service,
- Legal
and Contract Implementation Support
Service, and
-
One-Stop Shop Service
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Beneficiaries
of the Program
- Operators
in micro, small enterprises and handicrafts
whose paid-up capital ranges up to Birr
500,000.
- Those
individuals establishing a new business
or operating existing micro and small
enterprises will benefit from this program.
This is possible through private, partnership,
cooperative, micro enterprise associations
business.
- Graduates
of technical and vocational training
institutes, the youth, women, those
living with HIV/AIDS virus, traditional
handicraft workers, Disabled people,
etc.
- Cities
recognized by the Regional State as
Municipality
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Networks
for the Implementation of MSE Development
Program
Since problems faced by MSE are multisectoral,
the solution to these problems requires
the networking of several institutions.
The MSEs Development Network will be formed
at four levels as follows:
-
First, stakeholders’ network consisting
of Government, NGO, individuals engaged
in the sector, the community, private
sector and associations that are directly
or indirectly involved in MSES development,
- Second,
a network of micro and small enterprises
(MSEs) and medium and large-scale industries
(MLIs) will be formed,
- Third,
a network of MSEs comprising of operators
in trade, industry, handicrafts and
services will be formed,and
- Fourth,
MSEs sectoral network will be formed.
These
networks will be created at regional, zonal,
Woreda and city levels. The networks formed
at all levels will have councils, board
of directors and technical committees.
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Major
MSEs Development Constraints and Challenges
in the Region
- Problems
of attitude and orientation,
-
Deficiency of implementation capacity,
- Weak
provision of training on entrepreneurship,
business management and technical skills,
- Weak
provision of business development service,
- Insufficient
supply land for production and sales
premises,
-
Weak credit service,
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