The Small and Medium Enterprises (SME) are recognized as important vehicles to address the challenges of unemployment, support value addition, foster innovation, promote a healthy market economy and contribute share to national socio economic growth. They are also critical to promote sustainable and inclusive economic growth.
According to the European Bank for Reconstruction and Development (EBRD), creating the conditions for small and medium businesses to thrive is fundamental for economic growth.
The Ethiopian government taking into account the irreplaceable role the sector can play, has been working to the promotion and development of small and medium industries. On top of this, it has been undertaking a lot of measures to promote and flourish vibrant industries through formulating enabling strategy and policy to lessen the challenges faced by the existing ones, boost up their efficiency and promote the establishment of new industries.
According the Federal Small and Medium Manufacturing Industry Promotion Authority, [which is mandated to support and follow up the enterprises] it is working to promote strong small and medium industries through guiding the industries, providing the necessary support and trainings for members of enterprises so as to improve internal inefficiencies and expand their operations.
Ashenafi Melesse, Communication Director of the Authority said that the Authority has been expanding new small and medium industries via arranging a number of support services including measures with regard to creating an enabling legal framework and streamlining regulatory conditions that hinders the expansion of the existing industries and constraint the new entrants in the business environment,
Moreover, it has been undertaking activities to enhance the technological capacity of industries through working in collaboration with different training and research institutions.
With the aim to solve the problems encountered by industries with regard to the scarcity of raw materials, and better enable them to exploit the market opportunities, the Authority is working with Ethiopian Industrial Inputs Development Enterprise and other sectors.
Yared Estifanos, owner of Yared Machinery Manufacturing Medium Industry on his part said that the Authority has been providing support for his industry in various ways since it has become operational. Ranging from offering capital to capacity building trainings, as well as various technical supports, it has assisted them to strengthen their capacity, shown greater advancement in terms of manufacturing capacity, utilization of technology and grown competitiveness so at domestic market.
He noted that by using up to date technologies, the industry is producing different types of machinery including bread baking and, food processing machines.
Currently, he added, owing to the quality of the machines they are manufacturing, they become successful in markets and are gaining a monthly income of one million. The industry has also created job for 40 citizens.
“The helpful evaluation and monitoring supports provided by the Authority along with government bodies has led the industry to be profitable and deposit a total capital of ten million from a startup capital of 100 thousand. Currently, we have finalized preparation to transfer from medium sized industry to higher industry.”
While talking the challenges his industry encountered, Yared said that the Authority though has a lot of supportive mechanisms, electric power outage is adversely affecting the industry and lowering its production capacity, profitability and competitiveness. Government has to do a lot in this regard.
Authority Senior Communication Officer, Tsehaynesh Mengiste on her part said that following the Authority support and follow up, in the past nine months considerable strides are made. A lot of industries transferred from small industry to medium and from medium to higher industries.
Furthermore, the Authority has been playing substantial roles to create market linkage with local and foreign markets, along with different local and foreign institutions. As a result, within the past nine months, the industries have put up their products for sale in both local and foreign markets and gained 706 million Birr.
In different times, exhibitions were also prepared at city, zonal, state and federal levels to promote products of the enterprises. Over 8,000 industries took part in the bazaar. Similarly, Ethiopia’s small and medium industries took part in international exhibitions.
According to a report from the Authority, in the past nine months in collaboration with the Ministry of Science and Higher Education, the Authority has established entrepreneurship center at nine universities to assist youth entrepreneurs so as to equip them with the desired knowledge and skills.
The Ethiopian Herald June 19, 2019
BY TAMERU REGASA
