Trade has many multiplier effects including social, political and environmental benefit. In case of creating employment opportunity, optimizing efficient allocation of resources, trade has lion share in urban economy. In addition, it engenders cooperation between sectors and it provides areas that lack certain resources to have product, which would be otherwise un available.
In Bishoftu city, trade is the most dominant source of economy in terms of people engaged in. That means the city economy is mainly depended on trade and other business activities. Geographical location of the city, high demand that is emanated from increase in population, increase in investment activities and high flow of tourists are all favorable conditions that strengthen the activities of trade in Bishoftu town. Furthermore, the city administration has given due attention for the expansion of modern market centers and the upgrading of the existing market centers to create favorable environment for trading activities. The data obtained from the municipality reveals that 2,375 shops were constructed at the two market centers of the city and rented for traders. In addition, the office is creating a more suitable condition on market place for traders The following pictures justify the activities toward the development of market centers made by the city administration.
Because of the above facilities and the current free market economic policy of the country, the number of traders in the city is increased from year to year. The data obtained from Bishoftu city administration trade office reveals that 21 whole sellers, 10,364 retailers, 2573-service trade and 146 other types of traders with different volume of working capital in ETB are currently exist in the city.