The Livelihoods Reality of Micro and Small Enterprise Operators: Evidences from Woreda One of Lideta Sub-city, Addis Ababa, Ethiopia
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Date
2011-06
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Addis Ababa University
Abstract
This qualitative research was conducted at woreda I of the Udela sub city in Addis Ababa, Ethiopia with
the overall aim of assessing the overall livel ihoods situation of MSE operators specifically by examining
issues related to context, capital assets, role of institutions, policies and processes, and finally the
livelihood outcomes of working in MSEs. The study targeted those cooperative MSEs engaged in metal
and wood work activities. The data generated to meet these objectives were collected via semi- stmctured
interviews, key-informant interviews, focused group discussion, and non-participant observations, while
subsequent analys is was done in light of the Sustainable Li velihoods Framework (SLF).The studied operators and their MSEs were vu lnerable to many conteJ\'tual factors with both facilitative
(such as the prevalence of free market system, decentralization, federalist state stmcture, price ceiling,
presence of general favorable policy environment and political leadership) and hindering ( like market
shortage, misconception of the society, inflation, high and increasing price of inputs and basic
commodities, poor access to social facilities and infrastructure, tenure insecurity, inconvenient working
place, and bureaucratic work procedures) roles.In relation to their level and access to various types of capital assets, the operators have relatively better
access to and level of social, political, and human assets. It is also found that, al though not equal to the
level of possession of the previously-indicated three types of assets, the operators own a significant
amount of financial and physical assetsA number of formal and informal governmental, non- governmental, private and commercial institutions
have played helpful role during the establishment and operation of the studied MSEs through creating
better policy environment, organizing the operators to form MSEs, credit and training provision,
increasing the political capacity of members, and finally prov idi ng mutual support. Yet, some of the
shortcomings associated with these institutions and with an adverse effect on the MSEs are inflexible
working procedu res, lack of commitment and responsiveness, and adopting unsu itable policiesIn due course, it was found that the problems chall enging the targeted MSEs were market, institution,
operator, MSE and society related. The reported outcomes of this livelihood strategy were increased
income and household asset ownership, better access to food and health services, increased exposure and
level of technical and other social skills, becoming a law-abiding, self-confident, self-re liant, and
productive individual with enlarged social and political capacity. The study mainly suggests such
measures as alleviating the market problem of the MSEs; improving the provision and current state of
public infrastructures; and increasing the capacity of executives and the operators themselves.
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Keywords
Micro and Small Enterprise Operators