Today’s guest is Hassen Hussein,(PhD), General Manager of Entrepreneurship Development Institute (EDI). He was born and raised in Ethiopia. After completing his high school education, he joined Addis Ababa University and received a Bachelor of Arts in Business Management in 1989.
With a vision of furthering his education, he went to the United States of America to study Business Administration and Management where he obtained an MBA in 1993 from the Rochester Institute of Technology. He then pursued a doctoral degree in Leadership at Saint Mary’s University of Minnesota, graduating in 2017.
Dr. Hassen has been serving Saint Mary’s University of Minnesota for over 14 years as an academic staff member, holding the position of Assistant Professor since 2010. He later joined African Economic Development Solutions (AEDS) as the Director of Program and Operations for approximately four years starting in September 2015. Subsequently, he served as the Executive Director of the Oromo Community of Minnesota from October 2012 for almost three years.
During his interview with The Ethiopian Herald newspaper, Hassen Hussein (PhD) discussed a range of issues related to entrepreneurship skills development and identified gaps in the field, as well as the initiatives his institute is undertaking to address these gaps. Enjoy the read!
Can you please share your thoughts on Entrepreneurship Week and its purpose?
Entrepreneurship Week is a global event that has been held for the past 15 years. We are currently celebrating it for the 10th time in Ethiopia, with the Entrepreneurship Development Institute serving as the national host for the Global Entrepreneurship Week. The main goal of this event is to honor and recognize entrepreneurs and innovators for their significant contributions in transforming society, creating job opportunities, utilizing resources effectively, and solving various challenges. It is a week dedicated to celebrating the creativity and talent of individuals within our community.
One of the mandates of the institute you are currently leading is conducting research and development. What else do you focus on?
That’s one of the things we do. Our main task is providing training. We offer a unique type of training, which is based on a behavioral methodology. Our goal is to change people’s mindsets, attitudes, and equip them with the skills typically associated with successful entrepreneurs. Training is a major part of our portfolio. Additionally, we provide business development services, access to finance through various financial institutions, and market linkage. We work with individuals, organizations, and build ecosystems, offering a variety of services.
Research and development is another aspect of our work. One thing that sets us apart is our focus on turning knowledge into solutions, rather than just accumulating knowledge. We instrumentalize knowledge and tailor it to create practical solutions. For example, our training methodology is custom-built for different social groups and demographics, based on fundamental principles of human behavior and mindset change. Our role is to transform knowledge into tangible solutions. That is our primary focus and what sets us apart.
The reason I raise the previous question for you is, to know what sort of gaps you identify through research so far?
Well, there are many gaps. Currently, we are organized under the Ministry of Labor and Skills as job creation is a major focus of it. As you know, we have millions of unemployed and underemployed youth in the country.
When you consider where these individuals could find employment, the government sector, which is largely bloated, is an option. However, reducing public sector employment is necessary to ease the burden on the government and the public purse. On the other hand, our private sector has one of the lowest numbers of enterprises per capita in sub-Saharan Africa.
In villages or districts, finding a company capable of hiring 100 people is rare. While there may be a few in Addis, the majority of unemployed individuals are high school dropouts. Without the creation and growth of new enterprises, we will face significant societal challenges.
Additionally, the government offers robust job creation packages and supports individuals in starting their own businesses by organizing them into groups. However, data shows that 85 to 90% of these businesses are micro and do not generate many jobs. Once government support is withdrawn, these businesses often fail. Therefore, it is crucial to invest limited public resources in enterprises with high job creation potential and growth prospects.
We need to ensure that limited public resources are invested in enterprises that create a lot of jobs and have high growth potential. Another area we are examining is why people don’t start their businesses. The number one reason is a mindset issue.
There is a lot of externalization, where people blame the government for their problems instead of taking ownership of their successes and failures and focusing on their behavior. In our trainings, we help people develop behaviors and skills associated with success and achievement.
Externalization, lack of proper mindset and attitude, and behavior are significant barriers in this country with numerous socio-economic and ecological problems. Entrepreneurs have a vast opportunity, but people often fail to see it due to a lack of awareness. Attitude, mindset, and behavior are critical factors.
The regulatory environment in our country is cumbersome, unresponsive, and bureaucratic, making it difficult for young people to start or close a business. The public sector’s response is usually impossible, leading to frustration. We need to create a more enabling environment for businesses to thrive and generate jobs. Access to finance is also a major problem, as the financial system primarily serves the wealthy.
We need more large and medium-growing companies to provide employment opportunities, but many barriers prevent their formation and growth. Our organization works closely with the government to address these issues but is not funded by them. We focus on promoting entrepreneurship and job creation as top priorities.
We have made significant progress since 2021 in reaching various sectors of society, including farmers, university professors, company heads, and women from different backgrounds. However, more needs to be done to empower young people to start their own businesses and turn their creative ideas into reality.
Mainstreaming entrepreneurship and innovation throughout the country will encourage more young people to pursue their ideas and learn from their mistakes. Empowering creative and innovators is essential for addressing ongoing challenges and fostering competitiveness in Ethiopia and Africa.
To address these gaps, our organization collaborates with other entities working in this area to support entrepreneurs and promote job creation.
Innovators on one side and entrepreneurs on the other are striving to be more effective independently. How can they link with each other?
For me, the two are one and the same. I think innovation doesn’t mean anything unless you turn it into a viable business that solves people’s problems. An entrepreneur without an innovative idea is not truly an entrepreneur.
You have to solve people’s problems through innovation. Innovation, science, and creativity are the tools that entrepreneurs use to reach their market and make an impact. I don’t see them as separate entities.
In entrepreneurship without innovation, there is no true entrepreneurship. An entrepreneur can have a series of creative ideas. One challenge we aim to overcome is ensuring that people do not just sit on their creative and innovative ideas. These ideas must have value to others so they are willing to pay for them.
Having an idea, a creative idea, and innovation is essential. Even an invention must be tested in the market. If people like it, then it’s innovative. Otherwise, what is the point?
There used to be a strong connection between industry and universities. Where is it now?
I am unsure of its current status. However, it is not sufficient. We also collaborate with universities. This is an area where we aim to support both industries and universities. There must be a closer collaboration between the two. Currently, they are isolated from each other.
There is a lack of communication and idea exchange. Our universities should not be isolated institutions. They are integral parts of society and should be able to solve real-world problems. Academia and industry should not be divided by impenetrable barriers.
They need to work closely together. Many universities have departments dedicated to industry and community outreach, but in terms of results, there is still much progress to be made. This is an area that requires significant improvement.
In this era of globalization, product quality is a serious issue for enterprises competitiveness. What steps have been taken to address such a daunting challenge?
We tackle this issue through our capacity-building programs. Quality should be a priority from the beginning. Creating a problem and then fixing it later is too costly. It is more cost-effective to prioritize quality from the start. I believe it is a mindset problem. If you have the right mindset, focused on quality, the products and services you produce will be top-notch. By shaping people’s mindsets, we are also improving quality.
We support young individuals with innovative ideas. We guide them through the process of developing their ideas into products and eventually into companies. Throughout this journey, maintaining high quality is crucial. They must be able to compete on a global level. Having an average product is not sufficient. These are some of the initiatives we are implementing.
Does the reform bring anything new for entrepreneurs?
Yes, we are referring to them. Ideas are generated after the change. We are increasingly discussing start-ups. Some laws are being developed for start-ups. Entrepreneurship is being given priority. I don’t believe it’s sufficient. We still have a long way to go. Nevertheless, I believe we are heading in the right direction.
What do you wish for entrepreneurs?
I wish for a country where it is easy to start a business, grow them, and create wealth and opportunities for Ethiopians. I would like to see a country where young people with ideas are encouraged to try them and are rewarded for their bright ideas. I want a society that can solve its problems and does not cherish its ability to live with problems.
I think we need to leave some of our problems behind. A more confident country, a country that is able to have an influence on the continent and the globe. I want to see a country known for its innovations and great companies rather than for the many problems we’ve been associated with in the past.
Thank you very much for your time and willingness.
Thank you for having me.
BY GIRMACHEW GASHAW
THE ETHIOPIAN HERALD SATURDAY 23 NOVEMBER 2024
