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Enterprise
Ethiopia P.O. Box: 1674 Code 1110, Tel. 625533-35,624563, E-mail. enter-ethio@telecom.net.et 1. An overview of Enterprise Ethiopia EE is part of an international network of enterprise development programmes, particularly the EMPRETEC Programme that was initiated by UNDP in 1980s. EMPRETEC is an integrated entrepreneurship and innovation capacity building programme that provides training, technical assistance and institutional base for the formation, expansion and internationalisation of SMEs. EMPRETEC Programme has successfully promoted SMEs in Argentina, Brazil, Chile, Colombia, Peru, Uruguay and Venezuela in Latin America and Ghana, Zimbabwe and Botswana in Africa. Similar programmes are being initiated in Namibia, Nigeria, Mozambique and South Africa. EE is thus part of such SMEs development initiatives under UNDP Enterprise Africa Regional Programme. EE is the initiative of the Government of Ethiopia, the private Sector, Enterprise Africa Regional Programme, UNDP, UNCTAD and other domestic and international donors. EE, while based on tested programmes elsewhere, provides customized services to reflect Ethiopian realities. EE identifies growth-oriented entrepreneurs and then provide a comprehensive range of business development services like training, business advisory services, etc. In short EE is a programme that is geared towards identifying promising entrepreneurs and assisting them to grow their businesses. In doing so it would complement other efforts being made for the creation of a dynamic private entrepreneurial class capable of going into large-scale operations. EE will also assist Ethiopian SMEs to face the challenges of economic globalization. Technological development, particularly development of information technology has reduced problems facing cross-boarder transactions and investments. This has changed the nature of international competitiveness. Customer satisfaction and quality have become more important than economic of scale. EE will contribute towards the promotion of export by initiating two complementary measures. First EE will identify SMEs with export potential and then provide them with skill enhancement training programmes and undertake post training follow-up services. Second, as part of the international EMPRETEC networking, client SMEs of EE will be part of national, sub-regional and international EMPRETEC networking, client SMEs of EE will be part of national, sub-regional and international network of entrepreneurs who speak common languages. This will augment exchange of information b/n SMEs, which will enhance their international competitiveness. As far as economic development dialog is concerned, EE facilitates the formation of client associations which shall work with other similar associations, the private sector, the government and other stakeholders in the economy. In general EE is an institutional intermediary that cater the increasing needs of the Ethiopian private sector, particularly SMEs. 2. Objectives of EE The objective of EE are summarized next
The objectives of EE are in line with the development objective of the Government of the Federal Democratic Republic of Ethiopia which aims at creating a strong basis for all round development of the economy through sustainable and reliable growth. 3. Organizational & Staff of EE EE is not for profit institution with an independent management unit accountable to an Advisory Board. The programme management unit, managed by a director has a core staff of profound qualification, experience and extensive exposure in the governmental, non-governmental and international organizations which serve as an asset for the operation of EE in fulfilling its national mandate of promoting SMEs in Ethiopia. To undertake the activities of training and business advisory services, EE also uses the services of competent and qualified associate consultants. 4. Activities of EE As already been indicated EE is designed to promote growth oriented SMEs that have clear business objectives and strategies. It has been officially launched on December 17,1999. It plans to initiate the following programmes. a) Entrepreneurship Training Workshop The workshop focuses on motivation and on strengthening of entrepreneurial talents required for business growth and for building a basis for creating competent and committed entrepreneurs. It is aimed at sharpening the entrepreneurial competencies of participants and building the skills necessary to implement business ideas. The experiential and interactive nature of the workshop allows for self-appraisal in order to establish the competence levels of participants. Those entrepreneurs who have undergone the training will become the driving forces of EE. The first workshop was organised between 6th - 17th December 1999. Out of 42 applicants 30 growth oriented entrepreneurs were selected for the workshop. The closing of the workshop coincided with the official launching of EE. As a first step to create network among SMEs the participants have formed EE client Association. b) Business Management Training Business Management training are those types of training designed to address key functional areas in management such as product diversification, financial management, business negotiation skills, subcontracting opportunities, etc c) Business Development Services EE has a mission of developing a corps of growth-oriented entrepreneurs and internationally competitive business in Ethiopia. To this end the wide range of subsidized services and expertise are mobilized to assist any one engaged in a value-added business process. EE starts its intervention with a health check diagnostic study designed to uncover a firm's strength and weaknesses, and the opportunities and threats lurking in the environment in which the firm operates. On the basis of the observations made, an appropriate assistance package will be designed, taking into account the firm's peculiar circumstances. EE's assistance to an entrepreneurs therefore takes the form of a comprehensive package of services designed to assist both start ups and existing businesses to resolve their problems and plans for growth using a multi-faceted approach. The range of post-training business development services include:
To be successful business these days, so much depends on ready access to information. That is why companies around the world are rushing to install information systems and link their employees through electronic networks. EE offers information technology (IT) solutions to businesses. Example of such service will include information technology awareness seminars. 5. Future Plan EE is committed to be the center of excellence and focal point for the development of the Ethiopian Privet Sector. It thus plans to be the domestic partner of bilateral and multilateral donor agencies by enabling them follow-up and insure the implementation of their grant in more, cost effective manner. Accordingly, one of the areas of activity would be managing of grants destined for the development of the private sector on behalf of the government and donor agencies. Initially EE's activities have concentrated in Addis Ababa. The rational is simple. Addis Ababa accounts for most of the SMEs targeted by EE. In order to rapidly increase the urban sectors to be covered by EE reconnaissance studies would be conducted in the major urban centers so as to identify the urban centers with sufficient number of beneficiary clients. On the basis of the survey promotional words would be started in 2000/2001 in all major urban centers namely Awass, Bahir Dar, Dire Dawa & Harar, Mekele and Nazareth. The aim is to gradually cover the major urban centers in a year or two. EE also plans to be the development partner of the Regional Governments that are relatively less developed by initiating innovative promotional activities in collaboration with their relevant bureaux. EE, as part of the international EMPRETEC initiatives, aims at spotting growth oriented entrepreneurs and speed up their growth through the provision of a multitude of training and business advisory services as well as various follow up support programmes. In order to live up to its expectation EE emphasises the creation of effective and active coalitions of public sector, private sector and international and local donor agencies. The creation of such coalitions will make EE a sustainable programme that fosters the development of managerial and training capability in the country. The programme would charge cost-recovery fees, which will be increased, gradually to full cost recovery within three to four years. Given the weak financial capability of a large number of SMEs in Ethiopia recovering of costs may not be realized immediately. Therefore, the programme, while charging modest/marginal fees, would depend on grants and sponsorships from bilateral and multi lateral donors. In the long run EE will evolve into a foundation mostly owned by the private sector. The Ethiopian Private sector will be largely responsible to effectively utilize it and support its activities by directly participating and/or sponsoring its activities until it becomes self-reliant.
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