SMEs role is indispensable as it plays commendable for national development of countries.
Currently more than 1000 SMEs are operating in Ethiopia contributing to 2% of GDP and source of job creation.
However SMEs are currently facing multitude of challenges that emanates from enabling policy environment and strategic issues, remarks the study commissioned by Addis Chamber.
Having the theme “Situation Analysis of Policies, strategies and Impediments of small and medium Enterprises in Addis Ababa” the study report attributes both internal and external factors in affecting the business activities of SMEs.
Such factors include lack of leadership and management skill, lack of finance, sustainable provision of infrastructure, policy factors and corruption that impedes the operation of such businesses.
In addition inadequate working premises, inaccessible and non-affordable technology are blamed for inefficient SMEs in Ethiopia, the study further explains.
The new study also reveals explicit policy gap where such policies are not quite enough to incentivize and provide fund as well as unable to support market access to SMEs in Ethiopia.
During the validation workshop, the best experiences of countries have shared to be taken as lessons for Ethiopia.
Such countries include Brazil, Ghana and Indonesia who’s SMEs is vibrant and key players in the national development of their respected countries, the study reports.
Strengthening synergy in SMEs and advocacy power are vital to reinvigorate SMEs suggests the study.
Establishing specific unit for such enterprises, nurturing networking culture as well as promoting SMEs product among local market is also recommended to be considered as policy input.