Informal Sector and Government Policy in Ethiopia
[Type the company name] | Government Policy towards Informal sector in Ethiopia | A term paper submitted in partial fulfillment of the requirement for the course Entrepreneurship and private sector development | | | |
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The Ethiopian Informal sector
A term paper submitted in partial fulfillment of the requirement for the course Entrepreneurship and private sector development
Contents 1. Introduction 4 2. Country Profile of Ethiopia 4 3. Defining the informal sector 6 4. Informal sector in Ethiopia 6 5. Size and composition of the urban informal sector in Ethiopia 7 5.1 Size 7 5.2 Composition 9 6. Doing Business in Ethiopia 11 7. Pros and Cons of the Informal sector 12 8. Government policy towards informal sector 16 9. The challenges of the informal sector 17 10. Conclusion 21 11. Recommendation 22 Bibliography 23
1. Introduction
The Informal sector refers to a large part of unregulated and unregistered economic activities. They are for the most part unregistered and operating on a very small scale and with a low level of organization. Most entrepreneurial activities or employment creation in developing countries comes from the informal sector. Due to structural problems or under development of the formal sector, most people resort to the informal sector as a source of employment and income. As a result the sector employs a significant portion of labor force in developing countries.
The situation in Ethiopia is not an exception. According to a statistical report of national labor force survey around 50.6% of urban employment comes from the informal sector ( (MLSA 2009). Most of them have very low level of productivity and income. They tend to have little or no access to organized markets, to credit institutions, to modern technology, to formal training and to many public services and amenities. A large number of them are carried out without fixed location or in places such as small
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The Ethiopian Informal sector
A term paper submitted in partial fulfillment of the requirement for the course Entrepreneurship and private sector development
Contents 1. Introduction 4 2. Country Profile of Ethiopia 4 3. Defining the informal sector 6 4. Informal sector in Ethiopia 6 5. Size and composition of the urban informal sector in Ethiopia 7 5.1 Size 7 5.2 Composition 9 6. Doing Business in Ethiopia 11 7. Pros and Cons of the Informal sector 12 8. Government policy towards informal sector 16 9. The challenges of the informal sector 17 10. Conclusion 21 11. Recommendation 22 Bibliography 23
1. Introduction
The Informal sector refers to a large part of unregulated and unregistered economic activities. They are for the most part unregistered and operating on a very small scale and with a low level of organization. Most entrepreneurial activities or employment creation in developing countries comes from the informal sector. Due to structural problems or under development of the formal sector, most people resort to the informal sector as a source of employment and income. As a result the sector employs a significant portion of labor force in developing countries.
The situation in Ethiopia is not an exception. According to a statistical report of national labor force survey around 50.6% of urban employment comes from the informal sector ( (MLSA 2009). Most of them have very low level of productivity and income. They tend to have little or no access to organized markets, to credit institutions, to modern technology, to formal training and to many public services and amenities. A large number of them are carried out without fixed location or in places such as small
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