Limitations of Ethiopian public administration's bureaucracy for establishing a small business: The case of bread baking and distribution businesses in Addis Ababa, Ethiopia

The research study identifies and analyzes the elements that facilitate or prevent the establishment of small businesses in Ethiopia from the perspective of neoliberal thoughts of economic development and its application in non-western context. In order to study the bread baking and distribution business sector in Addis Ababa, this research used a mixed methods approach which included both quantitative and qualitative data collection and analysis. While the quantitative technique was used to assess the establishment experience of bread baking businesses in relation with public administration, the qualitative technique addressed public officials' issues and concerns about the Ethiopian constraints to the development of the private sector. Despite the improvements seen in public administrations' overall delivery of services brought by consecutive reforms, the findings indicate that bureaucratic constraints continue to limit the establishment of small businesses in Ethiopia. Constraints such as information delivery, lack of communication and coordination within public bureaus, lack of management capacity and corruption are important factors that affect the private sector development. In addition, the thesis findings present the groundwork for further research about the Ethiopian bureaucracy and private sector development. Moreover, the thesis includes macro and micro level recommendations considered necessary to improve the investment climate for Addis Ababa bakeries.