A few months ago, at a small meeting in Addis Ababa, a well-known economist said something that stayed with me: “Not everyone can be an employer—and not everyone should be.” That moment inspired me to reflect more deeply on the growing startup wave in Ethiopia—and the silent devaluation of formal employment that comes with it.
In Ethiopia today, the startup culture is rising fast. From college classrooms to Telegram groups and tech incubators, it seems nearly every graduate is preparing to launch a business. Entrepreneurship is no longer just encouraged — it is idealized. Formal employment, in contrast, is often dismissed as unambitious, outdated, or even humiliating.
Behind this cultural shift lies a deeper question: when did being employed become a failure? And why are we, as a society, so quick to glorify entrepreneurship while undervaluing the dignity and potential of formal work?
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This change in thinking didn’t emerge out of thin air. Over the past decade, many young Ethiopians, be it in private or public sector, have been facing underemployment and stagnant wages. Even those lucky enough to secure jobs often feel overworked, underpaid, and unappreciated. So when entrepreneurship arrives offering autonomy, flexibility, and the promise of wealth, it’s little surprise that it captures the imagination.
But there’s a difference between being driven by inspiration and being pushed by despair. And while it’s true that Ethiopia needs more homegrown businesses, it’s equally true that the current startup obsession risks turning into a kind of economic mirage.
This is not just an Ethiopian phenomenon. Around the world, especially in developing economies, there’s a growing narrative that equates entrepreneurship with empowerment. Global institutions, motivational speakers, and even governments now urge youth to “be your own boss” as the ultimate career goal.
But here’s the truth: most people are not meant to be entrepreneurs. And that’s okay.
As the economist Mariana Mazzucato argues, value in an economy doesn’t come only from risk-takers and innovators; it also comes from teachers, engineers, nurses, civil servants, and corporate employees. A thriving society needs people who build institutions, improve systems, and provide reliable services—not just founders chasing unicorn status.
Likewise, according to the World Bank, more than 80 percent of the global workforce remains in wage employment. Entrepreneurship, while vital, simply cannot be the default path for all. In fact, when too many people chase the startup dream without adequate skills, capital, or market demand, the result is not prosperity—it’s disillusionment.
In Ethiopia, the risks of this trend are becoming clear. With limited access to finance, mentorship, and market linkages, many startups fail within the first year. Too often, “entrepreneurship” becomes a polite euphemism for unemployment. Meanwhile, graduates who choose stable jobs in banks, NGOs, or the public sector are increasingly viewed as playing it safe—or worse, giving up on their potential.
This binary thinking is not right. It devalues the contributions of countless professionals who keep the country running. It also feeds a culture where titles matter more than impact. Everyone wants to be called a founder or CEO, but few are trained to manage risk, lead teams, or navigate complex markets.
Moreover, Ethiopia’s current economic structure cannot absorb millions of aspiring entrepreneurs. As Harvard’s Ricardo Hausmann explains through the lens of “economic complexity,” development requires a diversity of roles and productive know-how. Simply pushing more people to start businesses without building the surrounding ecosystem—credit systems, logistics, stable demand—can lead to fragility, not growth.
Being employed is not a failure; it is a foundation. In well-functioning economies, employment is not just a stopgap — it’s a path to mastery. Jobs help people build skills, accumulate savings, understand industries, and contribute to collective value creation. Many of today’s successful entrepreneurs, both in Ethiopia and abroad, started out as employees.
We should therefore reframe employment not as a fallback, but as a choice worthy of respect. In fact, a growing body of research—from ILO studies to African Development Bank reports—suggests that focusing on formal job creation, wage protections, and skill development often delivers more inclusive growth than narrowly promoting startups.
Not everyone can be an employer. And not everyone should be. A successful economy needs builders as much as dreamers, employees as much as entrepreneurs.
Samson Berhane is an economics graduate with expertise in business and economic reporting and communications. He can be reached at [email protected]. The views expressed in this article are his own and do not represent the opinions of the institutions he is affiliated with nor that of the magazine.
