Trade&Transport Activities

Tourism, Parks & Hotels

Inverstment Opportunities

Contact Address

Micro Small Enterprise Development

Definition of Micro and Small Enterprises

In our country, Ethiopia, micro and small enterprises are given different meanings at different times and the definition given by the Central Statistics Authority in using information analysis and that given by the Ministry of Trade are Industry in 1997 are basic applicable definitions. The Central Statistics Authority defines small trade organization that employ less them 10 people. Those engaged in handicraft and informal work sectors are categorized as micro enterprises. As the name indicates, informal trade organizations are to mean those who are engaged in various works without possessing trade license.

The definition of micro and small trade enterprises can vary depending on the level of capacity of subsiding of each country and from time to time. In our country, the definition of micro and small trade enterprises is determined from time to time by the Ministry of Trade and Industry by evaluating the situation of the time. Accordingly, when seen from the current development level (standard) and capacity, the following definition is determined to be applicable by the Ministry of Trade and Industry.
 

• Micro Trade work enterprises means trade organization whose capital is not exceeding  from Birr 20,000.00 and higher consultancy service organizations and other higher technological enterprises are not included.

• Small business organizations means trade work organizations whose minimum paid up capital is not less than Birr 20,000.00 and not exceeding from Birr 500,000.00 and shall not include higher technological consultancy service and other higher technological institutions.
• Micro and small business works sectors means, without including those mentioned by the two capital level above (higher technical consultancy service and other higher technological institutions) trade industry and technical (hand craft) intuitions.
• Trade means supplying for market any product or service for the purpose of getting profit.
• For the purpose of this program industry shall mean manufacturing industry. Manufacturing industry shall mean the process of producing new product privately or joint possession using mechanical or chemical methods; using organic or inorganic matters through machinery or labor.
• Handicraft means the process of producing a product mainly through hand and small hand tools without motor power.
• In the region, when we refer micro and small enterprises, it is based on the definition given to it by the Ministry of Trade and Industry here in above.