Solomon Desalegn, Co-Founder and Executive Director of Biruhminds Consult PLC, brings over 15 years of experience in sustainable development, youth leadership, and environmental policy to Ethiopia’s pressing socio-economic challenges. Having played a key role among civil society scholars contributing to Ethiopia’s Climate Resilient Green Economy Strategy and represented major groups during the development of the UN Sustainable Development Goals (SDGs), Solomon has a unique perspective at the crossroads of policy formulation and practical action. Leading a company that specializes in research, training, and business advisory services, he is deeply engaged with initiatives that promote inclusive growth, entrepreneurship, and innovation across Ethiopia. In this exclusive interview with Capital, Solomon shares insights on how his expertise aligns with Biruhminds’ mission, the critical role of Business Development Services (BDS), and the imperatives for transforming Ethiopia’s entrepreneurial ecosystem while bridging the gap between policy and on-the-ground realities.
Capital: How do your skills and experience align with Biruhminds Consult’s mission to integrate policy and action in response to Ethiopia’s development needs?
Solomon Desalegn: At Biruhminds, we hold a core belief: transformative knowledge and soft skills should not be restricted to a small group of experts. As a member of our senior associate team, I’ve seen how this philosophy shapes our work at the intersection of policy and practice. The Liyu Milketa Expo 2024 exemplified this philosophy by bringing together policymakers, financiers, and grassroots entrepreneurs to collaboratively develop solutions for SME financing. Over the past five years, we have cultivated unparalleled contextual expertise, advising more than 40 public-private partners on inclusive development. This Expo was not merely an event; it illustrated our conviction that Ethiopia’s socio-economic challenges require policies informed by both data and real-world experiences.
Capital: How do you blend global best practices with local expertise to create transformative solutions for Ethiopia’s unique development challenges?
Solomon: Ethiopia, like many African nations, grapples with rapid population growth, climate vulnerability, and underutilized resources. While our development plans demonstrate strong political will, we need to move beyond rhetoric and fundamentally rethink our approach. The real opportunity lies not in donor-dependent models but in strategically utilizing our human capital—especially our youth—and our substantial social capital. Countries like Germany and the Netherlands succeeded not due to natural resources but because they invested in their people and fostered private sector innovation. Ethiopia has even greater potential, yet we often squander resources on rigid, low-return investments instead of tapping into the entrepreneurial spirit of our young population.
At Biruhminds, we connect global best practices with Ethiopian realities through three key pillars: First, we emphasize human-centered development for youth and micro, small, and medium enterprises (MSMEs). Second, we challenge the conventional reliance on aid by promoting private sector-led solutions, such as leveraging diaspora expertise and remittances for impactful investments. Third, we advocate for policy changes that encourage innovation, exemplified by our work in streamlining business registration to stimulate startup growth. We must reevaluate the role of the private sector, the contributions of our citizens abroad, and most importantly, reassess our development policies to effectively cultivate and harness the untapped potential of young Ethiopian entrepreneurs. The Liyu Milketa Expo showcased this approach, merging global expertise with local realities. Moving forward, we must transition from aid dependency to an entrepreneurial ecosystem that leverages Ethiopia’s strengths: its youth, local resource mobilization, and cultural assets. This isn’t just a theory; it is the only viable path to sustainable growth.
Capital: How do you think Business Development Services (BDS) play a critical role in enhancing Ethiopia’s entrepreneurial ecosystem?
Solomon: Business Development Services (BDS) serve as the driving force behind Ethiopia’s entrepreneurial ecosystem, functioning through two main pathways: non-financial advisory services—such as training, coaching, and market strategy development—and financial support, which includes startup capital and working finance. Collectively, these services transform raw business ideas into successful enterprises that generate jobs, especially for our youth. While large-scale projects often capture the headlines, BDS creates a more profound impact by producing a multiplier effect that converts ordinary citizens into productive, tax-paying contributors to both the formal and informal economy. The evidence is clear: customized and standardized BDS not only benefits individual businesses but also strengthens entire supply chains, boosts GDP, and decreases reliance on imports by empowering local producers to compete globally.
At Biruhminds, we have witnessed this transformation firsthand. The significance of BDS extends far beyond that of major development projects, as it fosters the growth of productive and prosperous citizens in both formal and informal economic sectors. Enhanced and standardized BDS will invigorate the private sector, including MSMEs, thereby contributing to national GDP and creating new employment opportunities. Another advantage of BDS is its potential for import substitution, allowing local producers to export improved manufacturing products and generate more revenue in hard currency. Consequently, BDS has the capacity to transform Ethiopia’s entrepreneurial ecosystem.
Capital: What are the key challenges faced by small and medium-sized enterprises (SMEs) in Ethiopia? How can capacity-building programs address these challenges?
Solomon: Through our extensive engagement with Ethiopia’s entrepreneurial ecosystem, we have identified four main challenges that MSMEs and startups face: limited access to finance, inefficient market systems, inadequate working spaces, and difficulties in developing innovative solutions. Despite significant efforts by the government and development partners through various livelihood and economic empowerment programs, these systemic barriers remain due to fragmented interventions and a lack of institutionalized support systems.
To tackle these challenges, we propose a comprehensive three-pillar solution based on practical, scalable approaches. First, we advocate for the standardization and institutionalization of Business Development Services (BDS) by formally adopting national BDS standards under the Ministry of Labor and Skills (MoLS) or other relevant ministries. This critical step will ensure quality, consistency, and accountability in business advisory services across Ethiopia, creating a unified framework for MSME support. Second, we emphasize the need for capacity building among BDS providers through strategic investments in training and certifying both public and private advisors. Third, we promote tech-enabled market solutions, including the development of affordable digital BDS platforms and market information systems. These innovations are vital for connecting MSMEs to real-time data, financial services, and buyer networks, as demonstrated by our MENSH digital BDS, which achieved a 35% increase in participant sales within just six months. Together, these three pillars form a robust, integrated approach to transforming Ethiopia’s MSME ecosystem.
Capital: In your opinion, what are the most critical areas of research and analysis that can inform policy formulation and program design for economic development in Ethiopia?
Solomon: Honestly, it is challenging to identify specific solutions due to the complexity of the country’s economic issues. However, focusing on our area of expertise, Ethiopia’s youth employment crisis requires urgent, evidence-based solutions that reflect our evolving economy. In my opinion, the most critical research areas for informing economic development policy in Ethiopia include understanding the dynamics of youth employment and underemployment, exploring the digital economy’s job creation potential, and addressing the gap between vocational training and labor market needs. It is also vital to examine barriers to youth entrepreneurship, particularly access to finance, and investigate why existing youth funds have low disbursement rates. Implementing bottom-up, human-centered policy design that utilizes indigenous knowledge and technology, while strengthening good governance and leadership, is essential for creating inclusive and sustainable development programs.
Capital: How can innovative financial solutions be designed to improve Ethiopian entrepreneurs’ access to capital and contribute to sustainable business growth?
Solomon: Access to finance is a crucial factor for the steady growth and effectiveness of MSMEs in entrepreneurship development. Unfortunately, existing financial institutions lack tailored financial products and services for MSMEs. The Development Bank of Ethiopia’s efforts to provide lease finance services are commendable, and private banks, microfinance institutions (MFIs), and cooperatives must take the lead in creating competitive loan packages to support sustainable development and equitable economic growth in the country.
Due to a poor saving culture and stringent regulations, Ethiopian financial institutions are not operating at their full potential. Despite the challenges and conditions set by the national bank, their commitment to reaching out to MSMEs and startups is limited. Collateral requirements, short repayment periods, and high interest rates are additional barriers for young entrepreneurs seeking financial services. Therefore, various alternative financing products should be developed for MSMEs and startups in collaboration with key stakeholders. I propose establishing risk-sharing partnerships with NGOs and the government to encourage financial institutions to create innovative solutions. We are currently developing different models to test with selected small enterprises and financial institutions.
Capital: What strategies do you propose to bridge the gap between policy and practice in addressing socio-economic problems in Ethiopia?
Solomon: To effectively bridge the gap between policy and practice in tackling Ethiopia’s socio-economic challenges, it is essential to adopt pragmatic, context-driven strategies. As a private Business Development Services (BDS) expert, I believe the first step is to foster stronger collaboration among the government, private sector, and local communities to ensure policies reflect on-the-ground realities. This involves establishing feedback mechanisms that allow implementers and beneficiaries to share insights and challenges, facilitating adaptive policy adjustments.
Capacity building is also crucial—empowering local institutions and frontline service providers with practical skills, resources, and the autonomy to innovate and respond to emerging needs. Additionally, piloting and scaling successful grassroots initiatives can yield valuable lessons for broader policy implementation. Emphasizing data-driven decision-making, continuous monitoring, and transparent evaluation will help identify bottlenecks early and promote accountability. Finally, integrating digital tools and indigenous knowledge can enhance inclusivity and sustainability, ensuring that solutions are both modern and locally relevant. This holistic, participatory approach is key to translating policy intent into tangible socio-economic progress.
Capital: What metrics do you think are most important in evaluating the success of development programs in Ethiopia?
Solomon: I believe development should be measured against the specific needs of society, making human-centered approaches particularly vital for Ethiopia. While large-scale infrastructure projects are important, sustainable and inclusive prosperity fundamentally relies on human capital development. To provide a more comprehensive evaluation of progress, I prefer using the Human Development Index (HDI) alongside traditional economic indicators like GDP. However, there is a growing misconception that development is solely the government’s responsibility, often leading to excessive state intervention in economic activities.
In my view, the government’s primary roles should focus on ensuring peace and security, regulating markets, and facilitating economic growth through sound policy and leadership, rather than directly implementing development projects, except for major infrastructure. When the public sector competes directly with private enterprises, it risks stifling private sector growth, which is essential for sustainable long-term development. Therefore, metrics that capture human development, economic performance, and the enabling environment for private sector participation are crucial for evaluating the true success of development programs in Ethiopia.
Capital: How can partnerships with various stakeholders (e.g., government, NGOs, private sector) be used to bring about transformative solutions in Ethiopia?
Solomon: Partnerships with various stakeholders in Ethiopia can be transformative only if they are rooted in the real needs and priorities of local communities rather than imported development models. Resources are not the main challenge; instead, the success of development initiatives relies on genuine community ownership and the alignment of policies with grassroots realities. The government must play a strategic leadership role by fostering coordination and commitment among all actors—government bodies, NGOs, and the private sector—while ensuring peace, security, and effective market regulation. NGOs are crucial in emergency response and addressing gaps in health and gender-responsive socio-economic development, whereas the private sector drives innovation and job creation.
For instance, significant investments by partners like the Mastercard Foundation in job creation require strong coordination and accountability mechanisms led by institutions such as the Ministry of Labor and Skills. Enhancing the capacity and awareness of local and middle-level leadership is also critical to mobilizing communities toward sustainable development. Ultimately, effective partnerships should be inclusive, participatory, and built on mutual accountability to convert resources and policies into meaningful, locally owned socio-economic progress in Ethiopia.
Capital: What role do you believe ethical standards play in ensuring sustainable growth and system-level impact of development initiatives in Ethiopia?
Solomon: Ethical standards are foundational for ensuring sustainable growth and system-level impact of development initiatives in Ethiopia by promoting accountability, transparency, and respect for human rights across all sectors. Specifically, gender parity and social inclusiveness should be carefully integrated into development projects from the design phase. Implementation is equally important; even with strong ethical standards and sound policies, practical implementation requires commitment and patience to adhere to laws and regulations. The growth of any business sector largely depends on operating with high ethical standards, which can facilitate system-level changes and macroeconomic transitions.
For business advisory and development service providers, the lack of national standards in Ethiopia complicates the achievement of measurable impact on decent job creation and sustainable development programming at scale.
Capital: Biruhminds aims to address complex socio-economic problems with measurable impact. Can you provide an example of how you demonstrate measurable impact in a project related to job creation?
Solomon: As a private consultancy, Biruhminds bridges policy, research, and grassroots implementation to tackle complex socio-economic challenges. Our services encompass entrepreneurship ecosystem development, MSME capacity building, policy advocacy, and impact-focused program design, all aimed at sustainable job creation and inclusive economic growth. Impact evaluation is essential for any job creation or development intervention.
While several actors and stakeholders contribute to outcomes, we cannot claim that all positive results stem solely from our project implementation. However, based on our mid-term and end-line evaluations, the DAC criteria from the OECD help us clearly identify what worked well and what did not following our targeted interventions.
A notable example from our entrepreneurship program is the impact of improved business advisory and development services for MSMEs, which we implemented in partnership with SNV under their Expanded LIWAY initiative. Our market system approach to providing business development services has benefited over 250 MSMEs, enhancing the competitiveness and productivity of previously stagnant enterprises.
We utilized innovative tools and customized modules to address core challenges, while encouraging participants to pay a small service fee for quality advisory services through a cost-sharing model. We observed remarkable improvements in operational standards, brand visibility, market share, access to finance, and business-to-business networking among the targeted MSMEs, which can be quantified and qualified.
As a result, we plan to scale up and digitalize our services to reach thousands of similar enterprises nationwide through public-private and private-private partnerships (PP & PPPs). In this specific project, we facilitated job creation for over 600 individuals within a year and a half, significantly improving the livelihoods of predominantly women-owned households and youth in Addis Ababa. We prioritize decent job creation for young people, recognizing its ripple effect on their socio-economic development. Another best practice worth mentioning is our quality business development service for 111 young people in Modjo town, in partnership with UNIDO. The improvements in their livelihoods following enterprise development and employment opportunities in the leather business are meaningfully shaping their futures.
