Small business in Sub-Saharan Africa - Research Paper Example

The benefits of small business development in Ethiopia are numerous and varied. At the very basic level, small businesses provide competition and employment (Anonymous 2009). Innovation is another product of small business evolution (Anonymous 2009). Job creation and the development of a competitive business sector are all due to the development of small businesses (Anonymous 2009). Therefore, it is essential that Ethiopian authorities invest material and non-material resources to encourage small business development in the country.

This paper provides a brief evaluation of the small business climate in Ethiopia. The paper includes recent news and changes in Ethiopia’s small business climate. A discussion of the conditions and factors affecting economic and business development in Ethiopia is provided. The paper also includes a detailed discussion of barriers to creating a sustainable small business atmosphere in the country. The goal of the paper is to create a clearer picture of the conditions and barriers to small business in Ethiopia.

This information will create a basis for developing and implementing a set of recommendations to improve the small business climate in Ethiopia. In February, 2011, IBM announced its decision to provide Africa’s small businesses, including those in Ethiopia, with free antivirus software (Tadesse 2011). Based on customer feedback, IBM made changes and adjustments to its licensing agreement, to make sure the program provided was free and available to African businesses. Providing Microsoft’s Security Essentials program is merely a part of a broader initiative aimed at supporting small businesses in Sub-Saharan Africa.

Insignificant at first glance, the event has far-reaching implications for understanding the current state of small business development in Ethiopia. On the one hand, it is clear that other countries and companies want to support small businesses in their way to