Assessment of Policies and Practices of Doing Business in Ethiopia
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Date
2014-06
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Addis Ababa University
Abstract
This research aims to investigate policies and practices of doing business in Ethiopia with a
special emphasizes on policies and practices of business start-ups and access to credit facility. For
the purpose of this study, the population that the researcher identified to conduct this research
were the small and medium sized enterprises in Addis Ababa. As the complete coverage of the
population is not possible, a subset of the population was selected. To conduct this study a
descriptive survey method was employed and purposive sampling method were employed and for
that reason judgmental sampling technique was identified to be more appropriate and preferable
for this study. Furthermore, the data were collected through closed and open ended questionnaires,
interviews and document review. Thus, questionnaires were analyzed using descriptive methods
which mainly focused on data presentation and analysis using frequencies and percentiles with the
help of tables and figures. The information gleaned through questionnaire from a sample of 50
small and medium sized enterprise owners and face-to-face interviews were conducted with high
officials from Ministry of Trade and National Bank of Ethiopia.
To this end, the major findings were the role of Small and Medium sized enterprises; in
policymaking process, in ameliorating the business start-up registrations and also in ameliorating
the credit facility to the ease of doing business is very low in our country. There exists also a less
transparent system of credit facility and it was identified that there has been few reforms done so
far.
Thus in light of the major problems the following recommendations were forwarded, policy
initiatives could produce a better result if problems are conducted or policies are initiated from
bottom –up approach or from the general public instead of top-down approach by Ministry
department or the incumbent party. The policies or the reforms done could be more successful if it
relies up on creating a single interface: the one-stop shop and utilizing information and
communication technologies and the policies and procedures of the institutions like Commercial
Banks providing credit service to the SMEs is dependent up on its flexibility. From this point of
view, the challenges shall be minimized by enhancing the quality of access to credit and other risk
management products
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Keywords
Doing business, Ethiopia