@TechReport{iza:izadps:dp7553,
            	author={Schwidrowski, Zuzana Brixiova and Ncube, Mthuli},
            	title={Entrepreneurship and the Business Environment in Africa: An Application to Ethiopia},
            	year={2013},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={7553},
            	url={https://www.iza.org/index.php/publications/dp7553},
	abstract={Since mid-2000s, Ethiopia has been one of the fastest growing countries in the world. However, productive entrepreneurship in high-value added activities has made limited contributions to this growth, in part because of a weak business environment. Moreover, the low-productive firms in the informal sector still account for a large share of employment. Reflecting these facts, this paper presents a model of costly entrepreneurial start-ups in an economy with a large informal sector and rigid business environment where an equilibrium outcome can be a low-skill, low-productivity trap. By fostering productive start-ups and skilled employment, creation of an enabling business environment could help move the Ethiopian economy into high-productivity equilibrium.},
	keywords={entrepreneurship;SME start-ups;low productivity trap;multiple equilibria;Africa},
            }