Best Cities and Towns in Ethiopia to start a Business with little Capital and earn a huge Profit in 2023

Ethiopia is a country with a vibrant economy and several potential business opportunities. Starting a business with little capital and earning huge profits may sound daunting, but it is possible. In this article, you’ll be exploring the best cities and towns in Ethiopia to start a business with little capital and earn a huge profit.

All you need to do is to ensure you read till the end.

List of the Best Cities and Towns in Ethiopia to start a Business with little Capital and earn a huge profit

Some of the best cities and towns in Ethiopia to start a business with little capital and earn a huge profit you need to know are:

Addis Ababa

Addis Ababa is known as the capital city of Ethiopia and the largest city in the country. It is the economic and political hub of Ethiopia, and therefore it is definitely a great place to start a business in 2023.

The city has a diverse range of businesses which includes and not limited to manufacturing, hospitality, and technology.

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The city’s business environment is conducive to startups, with several resources available for entrepreneurs.

This article is actually not complete without making Addis Ababa the top on the list of best cities and towns in Ethiopia to start a business with little capital and earn a huge profit.

Dire Dawa

Dire Dawa is the second-largest city in Ethiopia and is located in the eastern part of the country. 

The city has a strategic location, being a gateway to the Ethiopian market and neighboring countries. 

The city has a well-developed transportation infrastructure, including a modern airport and a railway line. 

Dire Dawa is a great place to start business entrepreneurs especially those interested in venturing into the transportation and logistics sector.

It is arguably the second of the best cities and towns in Ethiopia to start a business with little capital and earn a huge profit.

Adama

Adama, formerly known as Nazret, is a city located in the Oromia region of Ethiopia.

The city has a strategic location, being located on the Addis Ababa-Djibouti railway line and the highway connecting Addis Ababa to the eastern part of the country. 

Adama has a vibrant business community, with several manufacturing and service businesses. 

The city is a great place to start a business in the manufacturing or service sector.

Hawassa

Hawassa is also one of the cities for entrepreneurs to kickstart their businesses. It is a city situated in the Southern Nations, Nationalities, and Peoples’ Region of Ethiopia. 

The city has a strategic location, being located on the Addis Ababa-Mombasa highway and the railway line connecting Addis Ababa to Djibouti. 

Hawassa is a great place to start a business in the hospitality or manufacturing sector, with several opportunities available to everyone around.

Bahir Dar

Bahir Dar is also amongst the list of best cities and towns in Ethiopia to start a business with little capital and earn a huge profit. The city is located in the Amhara region of Ethiopia. 

The city is located on the shores of Lake Tana, and it is a popular tourist destination. 

The city has a well-developed hospitality industry, with several hotels and resorts. Bahir Dar is a great place to start a business in the hospitality or tourism sector.

Mekelle

Mekelle is the capital city of the Tigray region of Ethiopia. 

The city has a strategic location, being located on the Addis Ababa-Djibouti railway line and the highway connecting Addis Ababa to the northern part of the country. 

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Mekelle has a vibrant business community, with several manufacturing and service businesses. 

The city is a great place to start a business in the manufacturing or service sector.

Gondar

Gondar is a city located in the Amhara region of Ethiopia. 

The city has a rich history and is a popular tourist destination. 

The city has a well-developed hospitality industry, with several hotels and resorts. Gondar is a great place to start a business in the hospitality or tourism sector.

Jimma

Jimma is a city located in the Oromia region of Ethiopia. 

The city is known for its coffee production and is home to the Jimma Agricultural Research Center. 

Jimma is a great place to start a business in the agricultural sector, with several opportunities available.

Harar

Harar is a city located in the Harari region of Ethiopia. 

The city is known for its historic walled city and is a popular tourist destination. 

The city has a well-developed hospitality industry, with several hotels and resorts. Harar is a great place to start a business in the hospitality or tourism sector.

Wolaita Sodo

Wolaita Sodo is the last on this list of best cities and towns in Ethiopia to start a business with little capital and earn a huge profit in 2013

It is a city located in the Southern Nations, Nationalities, and Peoples’ Region of Ethiopia.

The city has a strategic location, being located on the highway connecting Addis Ababa to the southern part of the country. Wolaita Sodo has a vibrant business community, with several manufacturing and service businesses. The city is a great place to start a business in the manufacturing or service sector.

Top 10 best businesses to start in Ethiopia with little Capital and earn huge profits in 2023

Here are the top 10 best businesses in Ethiopia cities and states to start with little capital to earn profit:

• Coffee shop
• Tailoring and fashion design
• Grocery store
• Mobile food business
• Cleaning service
• Car wash business
• Solar panel installation and maintenance
• Bakery
• Restaurant
• Photography and videography services

Frequently Asked Questions On The Best Cities and Towns in Ethiopia to Start a Business with Little Capital and Earn a Huge Profit

Here are some frequently asked questions related to the best cities and towns in Ethiopia to start a business with little capital and earn a huge profit:

What are the most profitable businesses in Ethiopia?

Some of the most profitable businesses in Ethiopia include agriculture, construction, manufacturing, hospitality, and service-based industries such as healthcare and education.

How much capital do I need to start a business in Ethiopia?

The amount of capital required to start a business in Ethiopia varies depending on the type and size of the business. Generally, small businesses can be started with as little as ETB 10,000 to ETB 50,000 (around USD 250 to USD 1,200), while larger businesses may require hundreds of thousands or even millions amount of money.

What is the best investment in Ethiopia?

The best investment opportunities in Ethiopia also vary depending on factors such as market demand, government policies, and the level of competition. However, there are some promising sectors include manufacturing, agriculture, energy, infrastructure, and technology.

How to start a business with small capital in Ethiopia?

Starting a business with small capital in Ethiopia can be challenging, but there are some steps you can take to increase your chances of success.

These include identifying a profitable business idea, conducting market research, creating a business plan, obtaining necessary licenses and permits, and finding ways to reduce costs and increase efficiency.

You may also consider seeking support from business incubators or microfinance institutions.