Browsing by Author "ENDALKACHEW ADEM MUSSA"

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    THE ROLE OF MICRO AND SMALL ENTERPRISES IN CREATING EMPLOYMENT OPPORTUNITIES IN HAWASSA CITY
    (Hawassa University, 2014-06) ENDALKACHEW ADEM MUSSA
    Developing countries like Ethiopia suffered by the prevalence of the problems of poverty and unemployment in most of urban areas of the country due to the expansion of urban population and low level of economic development. Overcoming unemployment and poverty can be possible through establishing MSEs which is one of the strategies adopted in all over the country. MSEs are very essential to create employment opportunities, increase income of households, and absorb large labor force, easily adopted, require less capital and flexible and others. However, beside the expected contribution of the sector made to employment generating and to the economic development process of the nation, there is limitation of study conducted to analyze the actual potential contribution of implemented national MSEs development strategies to employment creation in most of the urban areas. Therefore, this study entitled to the role of micro and small business enterprises in creating employment opportunity is conducted with an objective of analyzing/determining the potential role of the sector to create employment opportunity in the city. In this regard, this study conducted by employing 123 MSEs and 486 individual operators as sample size for the study and the required data collected by using structured questioner format. Both qualitative and quantitative methodology is applied in the study for demonstrating the characteristics and effects of qualitative and quantitative data collected from sample MSEs and individual operators using questionnaire. The study variable, that support the objective of the study is the employment creation role of MSEs, this is determined on the basis of the view of operators towards MSEs employment creation or on the basis of believe of MSEs operators whether employment opportunity is created or not for them by the business enterprise they are currently operating. The variables that are identified and expected to determine the study variable are age, sex, education, experience and average monthly income of operators. As such, the study variable is qualitative response of operators, the appropriate economics model applied to demonstrate the problem of this study is binomial logit. This logit regression model determines the probability of the MSEs sector to create employment opportunity by considering the effects of determining variables and its value ranges between 0 and 1. Thus, the regression output for the logit model identifies the value probability equals to 0.77, this implies that the MSEs sector in the study area create employment opportunity for 77% of operators or in other word 77% of operators believed as employment opportunity is created for them by the MSEs. In addition this study analyze the MSEs with regards to their age, current capital, performance on capital, production, sales, profit and saving aspects, and problems of MSEs. With regard to performance majority of MSEs exhibits improvement in all variables, the problems of MSEs identified in this study are : lack of capital and credit, lack production and selling space, lack of market for their products, etc. finally, In order to support potential role of the sector and also to minimize and alleviate the existed problems, some policy implications are recommended.