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Micro- and Small Enterprises as Vehicles for Poverty Reduction, Employment Creation and Business Development: The Ethiopian Experience
[ Introduction ] [ TOC ]
FSS Research Report: No. 6 In many countries, there is now a wide recognition of the contribution of micro- and small enterprises (MSEs) to economic growth. In a cross-section of both developed and emerging economies, the contribution of the MSE sector to total employment, entrepreneurship and innovation cannot be underestimated. For example, this sector generates about 6.2 percent of the aggregate employment in the United States, 22.3 percent in China, about 80 percent in India, 67 percent in Japan and about 70 percent in EU countries (Carter and Jones-Evans 2004). To further underscore the social and economic importance of micro- and small enterprises, one UN study indicated that the sector represented 99 percent of all enterprises and provided around 65 million jobs in EU countries (UNCTAD 2005).