The Impact of Micro and Small Enterprises Development Program in Reducing Urban Poverty: The Case of Gulelle Sub City of Addis Ababa.
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Date
2009-06
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Addis Ababa University
Abstract
The roles of micro and small enterprises (MSEs) to the overall economic development have got the
attention of policy makers, international organizations, NGOs and researchers as well as practitioners
In recent days, In Ethiopia the role of MSEs in employment creation, economic growth and poverty
alleviation as opposed to being viewed as marginal and unproductive, as well as tax evader has
received the recognition it deserves, as explicitly stated in the MSEs development program of the
country, The government has designed at a national level MSEs development program by the year
2005 under its Urban Industrial Development Package, The general objective of the program is to
design a clear and organized program that can foster the involvement of MSEs in urban development
as well as to augment the role of the sector in reducing urban poverty and unemployment The
program has a specific objective of creating 80% & 20% permanent and temporary employment
opportunities and thereby to reduce urban poverty by the year 2009 in the country Provisions of
credit. working premise, and training as well as creation of market linkage are devised as strategic
tools to achieve the desired objectives, Although the program has been implemented since 2005 its
performance is not assessed yet consequently, this study assess the impact of the program In
reducing urban poverty In the case of Gulelle sub city of Addis Ababa mainly , on operators who
engaged in the construction and textile & garment sub sectors, The study is designed based on
before and after method of impact assessment without a control group, 133 sample operators who are
organized under cooperative form of business organization are drawn out of 450 operators working in
the two sub sectors using probability sampling method, For triangulation purpose primary data were
ga thered using different techniques, The findings of the study reveal that although there is a disparity
In operators' income, it is improved after the establishment of the cooperatives, Thus, the number of
poor operators, who were living below the absolute poverty line decreased after the implementation of
the program in the study area But, improvement in income could not improve the overall living
standard of the operators, Therefore, to make the two sub sectors growth oriented , competitive and
sustainable appropriate areas of intervention are required in boosting institutional frameworks both on
the supply and demand sides of the two sub sectors in the study area,
Key Words: MSEs, permanent employment opportu nity, temporary employment opportun ity,
cooperatives .
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Keywords
MSEs, permanent employment opportu nity, temporary employment opportun ity, cooperatives