The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia

Markos Kidane; Dugassa Mulugeta; Addis Adera; Yonas Yimam; Tigabu Molla

doi:doi:10.11648/j.jwer.20150403.12

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The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia

Markos Kidane, Dugassa Mulugeta, Addis Adera, Yonas Yimam, Tigabu Molla

Published in Journal of World Economic Research (Volume 4, Issue 3)

Received: 2 May 2015 Accepted: 11 May 2015 Published: 29 May 2015

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Abstract

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.

Published in	Journal of World Economic Research (Volume 4, Issue 3)
DOI	10.11648/j.jwer.20150403.12
Page(s)	61-70
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Microenterprises, Socioeconomic Development, Youth Group, Associated Factors

References

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[11]	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.
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[15]	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.
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[17]	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.
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[19]	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.
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APA Style

Markos Kidane, Dugassa Mulugeta, Addis Adera, Yonas Yimam, Tigabu Molla. (2015). The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia. Journal of World Economic Research, 4(3), 61-70. https://doi.org/10.11648/j.jwer.20150403.12

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ACS Style

Markos Kidane; Dugassa Mulugeta; Addis Adera; Yonas Yimam; Tigabu Molla. The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia. J. World Econ. Res. 2015, 4(3), 61-70. doi: 10.11648/j.jwer.20150403.12

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AMA Style

Markos Kidane, Dugassa Mulugeta, Addis Adera, Yonas Yimam, Tigabu Molla. The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia. J World Econ Res. 2015;4(3):61-70. doi: 10.11648/j.jwer.20150403.12

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@article{10.11648/j.jwer.20150403.12,
  author = {Markos Kidane and Dugassa Mulugeta and Addis Adera and Yonas Yimam and Tigabu Molla},
  title = {The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia},
  journal = {Journal of World Economic Research},
  volume = {4},
  number = {3},
  pages = {61-70},
  doi = {10.11648/j.jwer.20150403.12},
  url = {https://doi.org/10.11648/j.jwer.20150403.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20150403.12},
  abstract = {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.},
 year = {2015}
}

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TY  - JOUR
T1  - The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia
AU  - Markos Kidane
AU  - Dugassa Mulugeta
AU  - Addis Adera
AU  - Yonas Yimam
AU  - Tigabu Molla
Y1  - 2015/05/29
PY  - 2015
N1  - https://doi.org/10.11648/j.jwer.20150403.12
DO  - 10.11648/j.jwer.20150403.12
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 61
EP  - 70
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20150403.12
AB  - 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.
VL  - 4
IS  - 3
ER  -

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Author Information

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

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APA Style

Markos Kidane, Dugassa Mulugeta, Addis Adera, Yonas Yimam, Tigabu Molla. (2015). The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia. Journal of World Economic Research, 4(3), 61-70. https://doi.org/10.11648/j.jwer.20150403.12

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ACS Style

Markos Kidane; Dugassa Mulugeta; Addis Adera; Yonas Yimam; Tigabu Molla. The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia. J. World Econ. Res. 2015, 4(3), 61-70. doi: 10.11648/j.jwer.20150403.12

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AMA Style

Markos Kidane, Dugassa Mulugeta, Addis Adera, Yonas Yimam, Tigabu Molla. The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia. J World Econ Res. 2015;4(3):61-70. doi: 10.11648/j.jwer.20150403.12

Copy | Download

@article{10.11648/j.jwer.20150403.12,
  author = {Markos Kidane and Dugassa Mulugeta and Addis Adera and Yonas Yimam and Tigabu Molla},
  title = {The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia},
  journal = {Journal of World Economic Research},
  volume = {4},
  number = {3},
  pages = {61-70},
  doi = {10.11648/j.jwer.20150403.12},
  url = {https://doi.org/10.11648/j.jwer.20150403.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20150403.12},
  abstract = {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.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - The Relationship Between Microenterprises and Socioeconomic Development Among Youth Group in Addis Ababa, Ethiopia
AU  - Markos Kidane
AU  - Dugassa Mulugeta
AU  - Addis Adera
AU  - Yonas Yimam
AU  - Tigabu Molla
Y1  - 2015/05/29
PY  - 2015
N1  - https://doi.org/10.11648/j.jwer.20150403.12
DO  - 10.11648/j.jwer.20150403.12
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 61
EP  - 70
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20150403.12
AB  - 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.
VL  - 4
IS  - 3
ER  -

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