Summary

“The promotion of micro and small enterprises has been a centerpiece of the Ethiopian government’s strategy to alleviate urban unemployment among the youth since 2004. Since this time, the government has adopted twin strategies of creating a business environment conducive to start and operate MSEs while at the same time actively triggering the establishment of new MSEs.

In this research, using a large dataset collected from 13 major cities in Ethiopia, we explore whether government-induced enterprises (cooperatives) differ from self-initiated enterprises (non-cooperatives) in various aspects of business productivity, business practices and performance.”