CHAPTER

TWO

1. RELATED REVIEW LITERATURE (WEAK

REVIEW)

2.1. Definitions and concepts

There is no universally accepted definition of micro enterprises. Different countries have

defined enterprises based on different conditions. Among the criteria used to define
enterprises, the most common and widely used ones include the number of paid employees
by the sector, the amount of paid- up capital, total assets, volume of sales, and value added or
net worth. Ministry of trade and industry (MoTI) of Ethiopia (1997), on its enterprises
strategy document defines: micro enterprises are those business enterprises with a paid -up
capital of less than birr 20,000 and excluding high tech consultancy firms and other
technology establishments, small enterprises are those business enterprises with a paid - up
capital of above birr 20,000 and not exceeding birr 500,000, and excluding high tech
consultancy firms and other technology establishments, large and medium enterprises are
those with more than birr 500,000 in p aid-up capital (MoTI,1997).