The state of social enterprise inEthiopia

Social enterprise activity in Ethiopia is growing. We set out to quantify social enterprise activity in Ethiopia. We surveyed 134 social enterprises and found that:

Totaljobs created

full-time equivalent

Of whichare part time

2,159 2,836

315 571

THIS YEAR

66% 34% 68% 32%

55% 45% 62%

38%

Social enterprise is growing: Ethiopian social enterprises have an average of 21 full-time equivalent sta� and median turnover of 70,000 ETB [3,182USD]. 85% of social enterprises expect turnover to increase in the coming year.

Women and social enterprise: Over a quarter of Ethiopian social enterprises are led by women – signi�cantly higher than in mainstream business (4.5%). Women in social enterprises make up 32% of the full-time equivalent workforce, higher than in the general workforce.

A young social enterprise scene:Ethiopian social enterprises are young and so are their leaders. 75% started operations since 2010. Nearly half of leaders are aged under 35

Social enterprises Mainstream business

Leaders

28%

4.5%

Workforce

32%

28%

2015

Women Women

2016LAST YEAR

This Project is Financed by the European Union

GROWTH PLANS BARRIERS

Capital debt or equity

Suitablepremises

Grant funding

Cash �ow

Support and advisory services

Managerial skills

21%

16%

10%

Expand intonew geographicareas

Attract newcustomers

New productsand services

Attractinvestment

Increase sales with existing customers

Merge

17%

16%

7%

58%

31%

22%

32%

31%

20%

Growth is set to continue: Most Ethiopian social enterprises expect their venture to grow and they have wide-ranging growth plans – particularly through attracting new customers or clients or expanding into new geographical areas.

TOP

Creating employment

44%

Selling a product

40%

Improving a particular community

37% Improving health and well-being

31%

Addressing �nancial exclusion

9% Supporting other social enterprises

7%

MID

LOWER

PRIMARY FOCUS

© British Council 2017 The British Council is the United Kingdom’s international organisation for cultural relations and educational opportunities.

Access to capital and grantsLack of access to capital is seen as the biggest barrier to growth, followed by access to grant funding.

Finance and fundingDonations and grants are the most common sources of funding, with few social enterprises securing concessional loans or equity. Limited capital supply is seen as the primary funding constraint.

Policy, �scal and regulatory environment With speci�c regard to social enterprise in Ethiopia is the very early stage of development. This policy landscape may evolve in future to o�er greater explicit recognition to social enterprises and their impact on communities.

See full report at www.ethiopia.britishcouncil.org

Based on the very small unrepresentative sampling process, there are close to 55,000 social enterprises currently operating in Ethiopia, with growth expected.

55,000social enterprises

in Ethiopia

Many social enterprises in Ethiopia exist to create employment opportunities. Job creation is often a primary focus.