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Business Environment In Higher Education: The Perception Of Thirty Private Higher Education Business Firms In Addis Ababa


This paper aimed at assessing the existing Business Environment in private higher education sub sector based on a survey on randomly selected Education Firms (30), Staffs (60), Students (60), Alumina (60), and Employers (30) and Parents (30). Indicators mainly related to Infrastructure, Competition, and Relationship with Government, Crime, Disorder and Justice System were considered. Constraints and opportunities are identified based on respondent's rank. Comparisons with other private firms and equivalent government institutions are also made. The findings indicate that there is competition among domestic education firms, mainly by using rumors or lowering costs. The majority of firms capacity utilization is 75%, having middle and low income groups as their main market. Respondent firms confirmed for their awareness and participation of policy related matters, also consider the basic service and inspection of the government as efficient and helpful except the issue of predictability of rules and regulations, the lengthy licensing and inspection process of MOE. Access to land, electricity, access to finance are the leading constraints identified. In other hand the undrtaken reform have brought benfite related to access to land, electricity, macroeconomic and poltical stablity, licensing and permit and access to finance. This result implies the need for additional improvement programs related to access to land and finance, hoping that electricity related constraints will be addressed in the near future by the undergoing investment. The education service evaluation revealed that private higher education service is similar between the competitors and at least comparable to equivalent government institutions which implies the shortcomings of higher education service may not be strictly associated with being provided by private firms

Corporate Author: 
Getnet Alemun & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Ethiopian Economic Association (EEA)
Primary Descriptors: 

Business Environment

Secondary Descriptor: 

Private Higher Education

Geographic Descriptors: 
Ethiopia, Addis Ababa
Cataloge Date: 
Broad Subject heading: 
Call Number: 
330.963 PRO 2010
Serial Key Title: 
Proceedings of the Seventh International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Publication date: 
2013-05-27 23:10:00
Forum or Discussion date: 
2013-02-27 15:09:20
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Current frequency: