The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia
Journal of World Economic Research
Volume 4, Issue 3, June 2015, Pages: 61-70
Received: May 2, 2015;
Accepted: May 11, 2015;
Published: May 29, 2015
Views 5466 Downloads 241
Markos Kidane, Department of Economics, Faculty of Business and Economics, Unity University, Addis Ababa, Ethiopia
Dugassa Mulugeta, Departments of Economics, Faculty of Business and Economics, Addis Ababa University, Addis Ababa, Ethiopia
Addis Adera, Department of Nursing, Faculty of Health Sciences, Woldia University, North Wollo, Amhara Region, Ethiopia
Yonas Yimam, Department of Nursing, Faculty of Health Sciences, Woldia University, North Wollo, Amhara Region, Ethiopia
Tigabu Molla, Department of Economics, Faculty of Business and Economics, Woldia University, North Wollo, Amhara Region, Ethiopia
Back Ground The unemployment rate of youth group is currently 31.46% in Addis Ababa. Moreover, it is believed that, as the major source of social problem to youth group is “lowest economic capacity”. Objective: The main objective of this study was to assess the relationship between microenterprises and socioeconomic development among youth group in Addis Ababa, Ethiopia. Method: A survey based study was used to collect data on the relationship between microenterprises and socioeconomic development among youth group in Addis Ababa, Micro and Small Enterprise Program started before 7 years (2004) it has to be changed in to 2003G.C. This program targeted different parties of the society (MSE 2010).The total of 120 micro enterprises which operated by youth groups. The sampling method was involved in ten sub-cities of Addis Ababa. The major micro and small enterprise activity identification was based on the available information from MSE packages and selected randomly. Data analysis was made by using descriptive statistics. Results: The findings of this study have vital implications to poverty reduction, employment creation, women empowerment of microenterprises, and the use of consultancy services by microenterprises targeting youth group for the growth of their enterprises. The major constraints of the sector, specifically, for youth target microenterprises, such as place; credit access; and misunderstanding, disagreement and mistrust among group members has to be addressed. This could be achieved by coordination of the different stakeholders of the sector such as Addis Ababa City Municipality, Addis Ababa MSE Agency, Addis Ababa Youth Association, Microfinance Institutions, and NGOs. Moreover, different supports for youth group microenterprises have to be continuing and it has to be strengthening, furthermore, such supports have to be more of growth oriented. Since, the results of the study shows that majority of youth targeting micro enterprises are not using consultancy services, the stake holders of the sector has to provide favorable conditions. Conclusion: Most of the respondents believed that employment in microenterprises could reduce poverty, and leveled as high in terms of its extent of importance to poverty reduction. From the available psychosocial constraints afraid of failure and criticism, faulty socialization, and low dignity of labor and inadequate motivation are the most serious problems that young entrepreneurs are facing.
The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia, Journal of World Economic Research.
Vol. 4, No. 3,
2015, pp. 61-70.
Abebe, G., Belay, G. (2005) Micro Business Development in Ethiopia. In Wolday Amha et. al. (Eds) (2005.). Small-Scale Enterprise Development in Ethiopia, Proceedings of the Sixth Annual Conference on the Ethiopian Economy. Ethiopian Economic Association (EEA); Addis Ababa University, Department of Economics. Addis Ababa.
Altekar, R V. (2007) Enterprise Wide Resource Planning: Theory and Practice. 4th Printed. Prentice Hall of India Private Limited. New Delhi, India.
Achieng, M (2013). Assessing the Readiness by SMEs and Financial Institutions in The Establishment of an Integrated ICT Infrastructure for Financial Transactions in Kenya, International Journal of Intelligent Information Systems. 2(1) : 40-45. doi: 10.11648/j.ijiis.20130202.13
Asian Development Bank (ADB) (1997 G.C). Micro Enterprise Development: Not By Credit Alone. Asian Development Bank. (n.p).
CSA (Central Statistical Agency) (2010). Manual, Central Statistical Agency, February2001, Ethiopia[eth], Amharic [amh], "Doc\Technical\Enumerators_manual-2010.pdf"
CSA (Central Statistical Agency) (2009).Urban Employment Unemployment Survey 2009 (2002 E.C) - Supervisor's Manual, Central Statistical Agency, February 2009, Ethiopia [eth], Amharic [amh], "Doc\Technical\Supervisor_Manual-2010.pdf"
CSA (Central Statistical Agency) (2010 G.C).Statistical Report on 2010 Urban Employment Unemployment Survey. Printed in CSA. Addis Ababa, Ethiopia.
CSA (Central Statistical Agency) (2010 G.C).Statistical Report on 2010 Urban Employment Unemployment Survey: Addis Ababa City Administration. Printed in CSA. Addis Ababa, Ethiopia.
CSA (Central Statistical Agency) (2010). Ethiopia Central Statistical Agency, Ministry of Finance and Economic Development(2011) .Urban Employment Unemployment Survey 2010 (2003 E.C)
Desai, V. (2009). The Dynamics of Entrepreneurial Development and Management. Preventing and Mitigating AIDS in Sub-Saharan Africa: Research and Data Priorities for the Social and Behavioral Sciences 2nd Edition, New Delhi: Himalaya Pub. House,
ECA (Economic commission for Africa) (2008). Assessing Progress towards the Millennium Development Goals in Africa – 2008; the UN Economic Commission for Africa, African Union Commission, and African Development Bank, 2008.
FDRE (Federal Democratic Republic of Ethiopia) (2010).Education sector Development program IV (ESDP) from 2010/2011-2014/2015. Program Action Plan .PP1-113, Addis Ababa, Ethiopia.
Hamde, M. (2012). Enterprise wide Resource Altekar, Rahul. V. Prentice- Hall of India planning: theory and of fact: new ash Russell penguin books India for 2007 335.
http://www.fao.org/giews/countrybrief/country.jsp?code=ETH for the FAO‘s Crop Estimates report. CSA‘s 2010/11 crop estimate data is provided in its October 2011 publication ―Agriculture in Figures: Key Findings of the 2008/09 – 2010/11 Agricultural Sample Surveys.
IMF (International Monetary Fund) (2010). Data for government expenditure based on MOFED budget data. Credit to government and credit to public sector figures from the IMF Staff Report of November 2010 (www.imf.org), with FY 2010/11 representing estimates.
Mengistu K., Mengistu U., Nigussie D., Endrias G., Mohammadamin H., Temesgen K., & Yemisrach G.(eds.), (2013). Proceedings of the National Conference on ‘Loan and Saving: the Role in Ethiopian Socioeconomic Development’, 15-16 February 2013, Haramaya, Ethiopia.
MOE (Ministry of Education) (2008): Current Status of Girls Education in Ethiopia. Paper presented at the National Women’s Meeting Organized by the Federal Ministry of Women’s Affairs on Gender and Educational Equity.
MOFED (Ministry of Finance and Economic Development) (2010). The First Five Years (1998-2002 E.C.) Development Plan Implementation and The next Five Years (2003 to 2007 E.C.) Growth and Transformation Plan Preparation: Inception Report for Panel Discussion to the Federal Government Conference. (n. p).Addis Ababa, Ethiopia.
MOFED (Ministry of Finance and Economic Development) (2010/2011). (for GDP data); IMF REO Oct 2011 and Nov 2010 Staff Report (for monetary, fiscal, investment, BOP data); CSA (for inflation data); National Bank of Ethiopia. Access Capital estimates for most 2010/11 data points and for all 2011/12 projections.
MSE (Micro and Small Enterprise) (2011). Addis Ababa City Administration, Micro and Small Enterprises Agency: Inception Report on Micro and Small Enterprises Development in Addis Ababa. (n.p).Addis Ababa, Ethiopia.
Moyi, ED(2013). Credit and Employment Growth among Small Enterprises in Kenya, International Journal of Business and Economics Research. 2(3): 69-76. doi: 10.11648/j.ijber.20130203.14
Negash, E., Amentie, C. (2013). An Investigation of higher education student’s Entrepreneurial intention in Ethiopian Universities: Technology and Business fields in focus Organized by College of Business and Economics, Jimma University. Proceedings of the Fourth Annual Research Conference of Jimma University.95-105.ISBN 978-99944-855-0-5
Parisotto, A. (2007). “Local employment generation – LGU practices in the Philippines.” Local eco¬nomic development for employment generation, peace and security: Approaches, tools, and good practices in the Philippines. Report of an ILO-SRO Manila Technical Workshop. Manila: International Labour Office.
Raj, Felix et.al. (2006). Contemporary Development Economics: From Adam Smith to Amartya Sen. New Central Book Agency Pvt. Ltd. Chintamoni Das Lane, India.
Van Klinken, G. (2008). Blood, timber, and the state in West Kalimantan, Indonesia. Asia Pacific Viewpoint. 49(1) pp 35-47