An earlier firm-level survey of Ethiopia was conducted in 2002/03 through a collaborative effort of the World Bank, EDRI, Ministry of Trade and Industry, Ethiopian Export Promotion Agency, CSA, Ethiopian Chamber of Commerce, Ethiopian Private Industries Association, Ethiopian Investment Authority, Addis Ababa Women Entrepreneurs’ Association, and UNIDO. Similar surveys have also been carried out in other developing countries. It is believed that a number of reform attempts have been done to encourage the performance of the private sector since the last survey. These include, tax reforms, streamlining business registration processes, investment in the power sector, etc. The current survey in Ethiopia is a follow-up data collection to further look at the effects of past policy reforms on the business climate indicators that affect business performance and growth; identify the current microeconomic impediments and discuss policy options with the government in order to improve the investment climate in Ethiopia. The sample for Enterprise Surveys is consistently defined in all countries and includes the entire manufacturing sector, the services sector, and the transportation and construction sectors. Public utilities, government services, health care, and financial services sectors are not included in the sample. Enterprise Surveys collect a wide array of qualitative and quantitative information through face-to-face interviews with firm managers and owners regarding the business environment in their countries and the productivity of their firms. The topics covered in Enterprise Surveys include the obstacles to doing business, infrastructure, finance, labor, corruption and regulation, law and order, innovation and technology, trade, and firm productivity. The Ethiopia Enterprise Survey was conducted between February and October 2006. Data from 484 establishments were analyzed.