The development of micro-small and medium-sized enterprises (MSMEs) is the most viable and preferred path toward alleviating widespread poverty and building sustainable economy, according to the Ethiopian Enterprise Development.
The international day of micro-small and medium-sized enterprises (MSMEs) was celebrated today under the theme of “Galvanizing MSMEs Worldwide by Supporting Women and Youth Entrepreneurship and Resilient Support Chain” in Mojo town.
Speaking at the event, Ethiopian Enterprise Development Director-General Alebachew Negussie said Ethiopia has been exerting sustained efforts to transform MSMEs and enhance their contribution to drive economic growth.
Through these efforts, the country has succeeded in creating hundreds of thousands of enterprises that provided job opportunities for millions and created opportunities for many others to survive beyond themselves.
According to the director-general, the government has given special attention to resolving challenges in the manufacturing sector as it is an important sector for social justice and pivotal for job creation.
MSMEs face numerous challenges, including financial constraints, skill shortage, and shortage of supplies, among others.
Alebachew stressed that transforming micro-small and medium-sized enterprises is the most viable and preferred development strategy to overcome widespread poverty, reduce unemployment, and build sustainable economy.
The Ethiopian Enterprise Development is established to further invigorate the efforts, and to especially support and guide the development of manufacturing enterprises with better focus and capacity.
The United Nations Industrial Development Organization (UNIDO) Deputy Representative to Ethiopia, Asegid Adane said it is crucial that countries and development partners continue to support and empower MSMEs and unlock their full potential through inspiring innovation, creativity, and decent work for all.
“UNIDO recognizes the importance of MSMEs for employment creation and poverty alleviation. That is why we have invested in projects to benefit more than 377 enterprises that employed 3,800 workers,” he added.
In developing countries, the private sector mainly consists of micro-small and medium-sized enterprises that generate a large share of employment and income opportunities.
Often, however, their development potential remains untapped as firms operate in isolation and locked into uncompetitive production patterns, and unable to approach dynamic business partners that could bring in new expertise and know-how, Adane noted.
The deputy representative reiterated that UNIDO will continue to support the development of the industrial sector in Ethiopia.
Source: Ethiopian News Agency