Research Institute Urges Policymakers to Support Infant Micro and Small Manufacturing Enterprises

Addis Ababa September 22/2018 The Ethiopian Development Research Institute has called on policymakers and practitioners to support infant micro and small manufacturing enterprises gain access to finance, market, and work space.

Authors of the baseline survey report issued yesterday under the title “Main Features of Micro and Small Manufacturing Enterprises in Ethiopia” revealed that the survey was conducted on manufacturing MSEs operating in 10 large cities.

Of these, the total enterprises, 8,174 samples were selected.

One of the contributors to the report, Mulu Gebreeyesus said access to market is one of the important driving factors for the growth of micro and small manufacturing enterprises.

Despite this, the development strategy of MSEs in Ethiopia that embodies the creation of access to market “does not seem well utilized to benefit more enterprises.”

In line with this, the research findings indicated that only 6 percent of the sampled enterprises benefited from access to market supported by the strategy.

So, he recommended that policymakers and practitioner create favorable environment through which the MSEs would have access to market and be encouraged to look for market linkage.

The other researcher, Abebe Ambachew said on his part access to finance for manufacturing of MSEs is instrumental in realizing sustainable growth in the sector.

Stating the barriers to credit owing to the rigid collateral requirement by creditors, he urged the government to show more commitment to support the enterprises and mobilize nongovernmental organizations to deposit money in the account of the creditor.

On the occasion, Tsegaye Gebrekidan said MSEs generally tend to be confronted with lack of work space which would impede the MSEs from generating more jobs.

According to the finding of the study, MSEs have created 72,584 jobs in 2016/17 in 10 major cities.