DOI: 10.7176/PPAR/10-3-03 Publication date: March 31 st 2020 1. Introduction A policy is a definite course or method of action selected (by government, institution, group or individual) from among alternatives and in the light of given conditions to guide and, usually, to determine present and future decisions (Webster's dictionary). Public Policy is a statement by government on what it intends to do or not to do such as law, regulation, decision or order, or a combination of these that govern a particular issue areas or problem (Birkland, 2001:9). Public policy may refer to what government intends to do to achieve certain goals. This definition makes public policy look like a mere decision. That is to say that mere declaration of intentions, wishes, principles, or expression of desires cannot be called public policy. Public policy should mean actual resource allocation presented by projects and programs designed to respond to perceived public problems and challenges requiring government action for their solution. That is, it should mean hard patterns of resource allocation presented by projects and programs designed to respond to perceived public demands. This conception of public policy can be identified with a political scientist, James E. Anderson who defines policy as a relatively stable, purposive course of action followed by an actor or set of actors in dealing with a problem or a matter of concern (Anderson, 1997). This statement focuses on what is actually done instead of what is only proposed or intended, and it differentiates a policy from mere decision, which is essentially a choice among competing alternatives. Public policy, therefore, is that policy developed and implemented by government agency and officials, though non-state actors and factors may influence its process. A country like Ethiopia with abundant labor force is, thus, required of to have a right employment policy in place in order to effectively use its growing labor force in a productive manner. In this regard the country is exerting efforts to make sure that new entrants to the labor force are equipped with the necessary knowledge, skill, and attitude that the economy needs. Micro and Small Enterprises have strategic relevance for employment creation, poverty reduction, rural-urban linkages, and for the growth of the private sector. A considerable number of permanent and temporary employment opportunities are being created as a result of the appropriate investment policy of the country attracting the private sector and also due to public investments especially in infrastructure, urban development, and housing construction.
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