By Tesfaye Getnet
Although it is a slight decrease from last year’s number of 13,323, last year 12,395 business licenses were returned in Addis Ababa,
according to information that Capital obtained from the Addis Ababa Trade Bureau.
Many of these abandoned businesses were retail shops. Even though recent studies indicate that the city business license process has
improved over the last five years, soaring rental costs are a big reason most businesses shutter. The high price of imports and unfair
competition are also major factors.
Many are asking the government to build more shops so that rent prices decrease. Other problems people encounter are lack of a
Million Moges, an expert in license renewal and revocation at the bureau told Capital that people need to study the market and make a
plan before they open a shop or start a business.
“Some people go into business with the idea that they don’t need to conduct any study or work hard for their business to succeed.”
“The other problem is that there are few shops for the business community, the supply of shops is very small and the demand is very high.
As a result small rooms are being rented for a large amount of money so new business people cannot afford to rent them which ultimately
affects new entrepreneurs,” he added.
Ethiopia is ranked 159 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The
rank of Ethiopia improved to 159 in 2018 from 161 in 2017. The Ease of Doing Business in Ethiopia averaged 133.45 from 2008 until
2018, reaching an all-time high of 161 in 2017 and a record low of 104 in 2010.
There are over 300,000 businesses in Addis Ababa. (Capital Ethiopia)