Title: YOUTH ENTREPRENEURSHIP IN ETHIOPIA: THE CASE OF MANUFACTURING MICRO AND SMALL ENTERPRISES IN ADDIS ABABA
Abstract: The objective of this paper is to shed light on general situations of MSEs run by
young people while identifying the factors influencing enterprise formation by
young people and enterprise development in the MSEs. It also identifies
concrete barriers and specific constraints that impede young people from
starting and running a business in the micro and small business sector; and
stimuli that makes starting a business a viable alternative for youth.
The study employed a triangulation of descriptive analysis, binary logit
regression analysis and focus group discussion to enrich the output of the study
and to achieve the study objectives. The primary findings of the paper indicated
that sex of the individual; birth place of the youth; education level;
psychological motives such as commitment, need for autonomy, and need for
achievement as well as family background have significant influence on
enterprise formation of young people. Besides, the general entrepreneurial
environment such as business situation, availability of business support,
education and training facilities, business infrastructure have an impact on the
performance of the young entrepreneurs. In addition, the potential of
entrepreneurial development in the Micro and Small Enterprise sector is not
fully utilized because of various barriers, especially for those operated by young
people. Lack of business infrastructures, financial problems, lack of demand or
market and less encouraging societal attitude towards young entrepreneurs
were identified to be the main challenge for entrepreneurs in the study. With all
the challenges the self-motivated young entrepreneurs in this study have proven
the desire towards enterprise, growth and achievement. They have relatively
better operating results, business management skill and expansion concern in
addition to the risk and initiative they took to establish their own enterprises. It
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is, however, paradoxical they are less favoured by government promotional
activities.
Publication Year: 2006
Publication Date: 2006-08-01
Language: en
Type: dissertation
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Cited By Count: 2
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