Browsing by Author "Setegn, Lemma PhD)"

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    The Role of Micro and Small Enterprises in Reducing Youth Unemployment of Technical and Vocational Education and Training Graduates in Addis Ababa
    (Addis Ababa University, 2007-07) Abera, Temesgen; Setegn, Lemma PhD)
    Extreme poverty and youth unemployment have been critical problems and concern for developing countries. Cognizant (j/ this, Technical and Vocational Education and Training (TVET) institutes are particularly viewed as major instruments to attain the desired development and employment. In this regard, Micro and Small Enterprise (MSE.I) are the main income generating activities of youth operating enterprises in Ethiopian cities and towns thereby contribute to unemployment reduction and poverty alleviation. Overall. allention needs to be given to the neglected area, especially, such as the role orthese MSEs ' in slIslCiinable employment creation./or youth TVET graduates. The objective of the research was to identifY the role of MSE in reducing youth unemployment or creating employment opportunities for rVEr graduates in Addis Ababa City Administration, speci/ically in the Cooperatives Induslry Areas (CIAs) and to provide possible solutions. rhe Similarity o/training and current job orMSE operators, the factors of self-employment, the causes of unemployment. the assessment 0/ underemployment, the contributions 0/ the MSE sector, the provision 0/ credit services. and the stanis o/BDSfacilitation were the major themes of the study. In order to gather relevant in/ormation/i'om MSEfacilitators and rVEr graduates, descriptive survey method was employed. Moreover, jive Cooperative Industry Areas (CIAs) was included in the study that had highly concentration of both types o/formal and non-formal rVEr graduates who are operators o/MSEs in Addis Ababa CIAs. The selections (j/those CIAs were based on 'one CIAji-om one Sub city ' basis using purposive sampling technique. Since both types of rVEr graduates are highly concentrated in those jive sub cities. 52 formal rVEr graduates, 30 non-formal rVET graduates and 20 MSE/ aeili'ators (/iJllr Regional MSE faCilitators, eight Sub city MSEfacilitators, eight Kebele MSE officer.l) were taken using availability sampling technique. Based on Ihe basic questions or Ihe study, the coliected data through two main groups of questionnaires were analvzed Finally, summw)' of major jindings, concluding remarks and recommendations have been made based on the major themes of the research. The research results revealed that the majority or the TVET graduates' present job was completely di./Jerent /ronl their training area. In addition. among them the majorilies were not self-employed ajier graduation and didn't obtain wage employment alier graduatiOn. Moreover, the current production capacity (j/ their enterprises ' was/ound being under production capacity and most of the rVEr graduates are currently looking .lor other jobs. Consequently, most of the TVET graduates joined in to the MSE business because 'hey could not have any other options. Above all their production was in problem due to lack of loan. Currently, they need assistance or BDS and market place .lor their products. Overall, the sustainability 0/ employmel1l 0/ those yauth rVET graduates was critical. There./ore, thefol/owing recommendations are drawn: (I) faCilitate advanced short and long term trainingfor those misplaced graduotes Ihrough on- the~job training (the training, the trainer and the trainee in the workplace): (2) iv/icro Finance Institutions (MFh), rVEr institution offiCials and MSE jilcilitators should recogniZl! and make a conducive environment by considering the major determinanl/ilctors o(sel/:emploYlllent'/or youth TVET graduates a/ier graduation; (3) to minimize unemployment afier graduation, tminees should be involved in part-time work at least in voluntwT service term while they were allending their training in line with the apprenticeship program; (4) the f ederal government should also intervene more on the expansion of CIAs for sustainable economic basement as well as business incubators should be expanded in evel), sub city level; (5) regional MSE and!vlFl oUicials wi,h col/ahoration of TVET institutions should apen branch onlces in evel), TVET centers; (6) MFfs l1Iith col/aboration of government Banks and Private Banks should creale reasonable rate 0/ loan interest ./01' !viSE operators in the CIA .1'; and (7) in order ta provide BDS faci lity, other thlln gOl'ernl71el7l. non-governmental and private organizations should participate lhrough in :tee IlCr se/'lliec 'procedure.