Ethiopia’s developing economy has created opportunities in a variety of industries, including agriculture, food processing, information technology, and the service sector. As a result, you have a good chance of succeeding in creating a profitable business in Ethiopia.
There are no more excuses for individuals who wish to transform their life and the lives of their families by starting a business.
Best Small Business Ideas in Ethiopia
1. Open a Daycare and Nursery Center
The role of childcare provider necessitates prudence. It brings together experts and instructors to receive and care for children aged 6 months to 13 years.
This business is in great demand in the city, and owing to scarcity, it may be quite competitive. After intensive and extensive discussions with child specialists and professionals, the childcare business should be formed.
2. Open a Restaurant
For decades, the restaurant industry has been a source of millionaires in Ethiopia. There will always be a demand for restaurants. You may take advantage of this chance and start your own restaurant business in Ethiopia right now.
Restaurants are one of the most profitable businesses to start in Ethiopia and many other parts of the world.
3. Assembly of Small Diesel Engines
Diesel generators of all sorts are imported into the nation, and this import will increase as the economy grows and requires more electricity.
Many diesel engine parts are created by specialist manufacturing units and supplied to manufacturing-cum-assembling facilities due to economies of scale.
4. Start an agricultural and food processing business
In Ethiopia, this is a significant industry. Agriculture is critical in Ethiopia, accounting for more than 85 percent of employment.
Crops that may be produced in the nation range from grains to fiber crops and flowers, to tea and coffee plantations, and so on.
Forestry, like fisheries, is an important resource in the nation. Furthermore, commercial processing of agricultural output and raw materials gives a potential for business in Ethiopia.
5. Event Planning and Management
Ethiopia’s expanding economy has a high need for event management services. You may start your event management services by managing various business and social events.
Event management will need you to pay close attention to every element of an event, from the location to the guest list to the décor and cuisine offered.
More clients will come your way after you complete a few successful tasks. The fees charged by the event management business are extremely expensive.
6. Brick Making
Ethiopia has experienced a true growth in the construction of residences, offices, malls, and government buildings, among other things. However, this boom in the building industry is not restricted to large corporations with vast financial means.
Small and medium-sized enterprises can also benefit greatly from Ethiopia’s building boom. One automated brick production machine costs around 29,180 ETB or $1,080 USD.
7. Make an investment in the music Industry
There are several methods to get engaged in the music business. The first step is to plan and promote events. For example, a specific promoter just struck a deal with a beverage business for 3.4 million Birr. They paid the performing artists between 20,000 and 500,000 dollars, depending on their notoriety, and their net return from the event would be 2-5 times larger than the initial investment.
Making music videos is another fantastic way to become involved in the music industry. Music videos may be promoted and monetized via platforms such as YouTube and other websites.
8. Open a Football Watching Center
You may start your own football viewing center right now and make a lot of money.
Have you ever considered turning your passion for football into a career? If so, you’ll find a large group of fans eager to assist you.
The opportunity to generate money from men and women who are enthusiastic about football is only a step away. And the step is on flat ground.
The coming together does not stop at the stadium, as thousands of fans congregate to cheer for their favorite teams. This is one of Ethiopia’s most profitable businesses.
9. Hand Pump Fabrication and Assembly
For example, in the Amhara area, there are now approximately 5000 water stations that use hand pumps, with clean water supply coverage of less than 25%. This implies that the Region still has a long way to go in terms of providing clean water to the Region’s urban and rural populations.
The hand pump market consists of replacing existing hand pumps and installing new hand pumps. If we estimate that 10% of the existing hand pumps must be replaced and that another 2000 hand pumps are installed across the Region, the yearly demand for hand pumps will be around 2500.
10. Open a Hair Salon
Barbers have a certain role in our societies since we humans will never go out of style as long as they exist.
They are necessary to make us seem nice, to enhance our face appearance, and to trim down on the hair that, if left unchecked, might make us look like wild animals.
11. Open an Entertainment Lounge
Ethiopia has a large population of foreigners and foreign employees, particularly in Addis Abeba. Most of these individuals, as well as locals, would require somewhere to unwind and rest after a long day’s work and on weekends.
You may fulfill the demands of these thrill seekers by opening an entertainment lounge such as a bar, hotel, casino, restaurant, movie, nightclub, and so on. There are an unlimited amount of options available, so choose one and start your business.
12. Laundry Services
Laundry services are a fantastic business to start since they are in high demand in Ethiopia. You can do your laundry at home if you have enough room.
Otherwise, you’ll have to rent a spot. Laundry machines, driers, and other equipment are required for the laundry business.
You will get more money if you iron the washed garments. Set up your laundry in a residential neighborhood where you may attract customers.
Use brochures, posters, and banners to promote your washing business.
13. Solar Panel Sales and Installation Service
Solar panel prices are at historic lows, and when combined with significant improvements in battery storage technology, Ethiopia has the ingredients for a highly lucrative and profitable business model.
The Ethiopian Ministry of Environment, Forestry, and Climate Change (MoWIE), the Ethiopia Standards Agency, and the Ethiopian Ministry of Water, Irrigation, and Electricity have prepared a proposal to implement a new standard for residential solar panel imports.
14. Computer Repair and Maintenance
One of the best business out there is computer maintenance.
Because there has been a significant growth in the number of personal computer owners and users, repairing hardware or virus would earn at least 100-800 Birr.
This business is ongoing and allows for collaboration with large corporations. Importing spare parts and hardware is also more cost effective.
15. Open a Grocery Store
Starting a supply shop is a fantastic business to start because of how successful and lucrative it can be. The business includes having a shop or a place where you stock essential household supplies and products that people use and require on a daily basis.
To earn a profit, the business also buys items in bulk at wholesale rates and sells them to customers at retail prices.
This is a business that does not require a large investment because you will be dealing with basic household items that are not particularly expensive, as opposed to major supermarkets, which cater to a variety of people’s needs as evidenced by the various types of goods purchased and stocked in the supermarket.
16. Start Refills for Ball Point Pens
Students are the primary users of ball point pens and refills. There are around 3.7 million pupils in the Amhara Region alone (2006/2007).
Ball point pens and refills are imported for use by students in the Region and their countrymen in other parts of the nation.
If we estimate that each student uses around 10 ball point pens (with refills) every academic year, the yearly consumption of ball point pens or refills in the Amhara Region is approximately 37 million.
17. Start a Catering Service
Food is an essential component of every gathering. People are finding it increasingly difficult to make exquisite meals on their own as gatherings get more sophisticated than before.
As a result, the need for food caterers at events is growing over time.
So, if both of your hands are capable of producing delectable meals, you might consider starting a catering service business.
18. Start a Soap Manufacturing Business
Soaps unquestionably have a sizable and increasing market. Soaps are chemical-based preparations that are used for bathing or cleaning clothes, dishes, automobiles, and even glass windows.
This sector is still growing, and there is plenty of space for new soap producers to enter and sell their products.
So, if you notice a simple business in the chemical sector that may provide you with a regular income, you can consider starting a soap business.
19. Open a Beauty Salon
Salons are always a successful business concept in any location, but especially in Ethiopia. Start your salon in a suitable area.
Use good beauticians and herbal and organic items that are in high demand. Decorate your salon such that it is both convenient and comfortable for your customers.
Additionally, if you can make it a unisex salon, you will be able to generate more money from your salon business.
20. Launch a Cleaning Service Business
Cleaning Services or Janitorial Contracting Services are becoming increasingly popular in Ethiopia. This is owing to the large number of offices, particularly in Addis Abeba. The need for cleaning service firms is growing as the number of non-governmental organizations, multinational corporations, and local enterprises grows.
Unlike in other nations, particularly in the developed world, providing cleaning services for furniture, walls, and floors is not prevalent in Ethiopia.
In 2014, Ethiopia has just 48 licensed cleaning service firms. Entrepreneurs should recognize that this business area is very profitable due to its low input costs and Ethiopia’s relatively easy access to human resources.
21. Open a Bakery Store
Here are a few instances of bakery enterprises that have turned a profit.
Enrico Pastry was established in 1954. This bakery is believed to make 4000-9000 cakes every day. Mulmul Bakery, which recently opened, is another example.
It only utilized one quintal of flour per day when it first opened, but it currently has six locations around the city and 320 workers.
It offers 104 different sorts of goods. Other businesses such as Caravan Cake and the well-known Shoa Bakery, demonstrate that the bakery and pastry business is both profitable and easily expanding.
22. Start a Hotel business
Another profitable business that is now thriving in Ethiopia is the hotel business. This post will explain how to start a hotel business in Ethiopia.
There is real money in the hotel and hospitality sector, and you can get a piece of it right now.
For a tiny start, your hotel does not need to be large; instead, it may be as simple as a compact lodge, a beer parlor, and a small restaurant.