The Role of the Informal Sector for Women Economic Development: A Case Study on Women Traders in Kolfe Keraniyo and Yeka Sub Cities in Addis Ababa City Administration – Ethiopia
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Date
2017-06
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Addis Ababa University
Abstract
This study investigates the ―
Role of the Informal Sector for Women Economic Development in
two sub cities in Addis Ababa City Administration.‖ The main objective of the study was to
assess what women can do in the informal sector for their economic livelihood in terms of
employment creation, income generation, and household support and, for poverty reduction. A
total of 196 questionnaires were administered on the sampled women informal sector operators
in the two sub cities. In addition, interviews with government officials and NGO were also
conducted. The collected data were analyzed qualitatively and quantitatively. The hypotheses are
tested by using qualitative and quantitative data. Based on the findings of the study, the
researcher identified and discussed the direct and indirect benefit of the informal sector and
looked in to the livelihoods of poor women as well as the major challenges encountered during
the operation of the business. The study revealed that the informal sector has a positive role to
play for women in economic development in terms of job creation, income generation, and house
hold support and poverty reduction. It enables women to expand their income generation scheme
through the opportunity it creates for them to earn income that they use for the welfare of
members in their households. The sample respondents stressed the importance of the informal
sector for alleviating household poverty. The study also identified the major challenges of the
operators such as lack of working place, shortage of working capital, problems faced by the code
enforcement police, (lack of encouragement by the government police), and no access to credit
facility and women operators do not see an increasing demand for their items on the sale. Finally,
in order to minimize and alleviate the problems faced by the women economic operators, some
options are recommended to policy makers or for concerned government bodies. These include
empowering informal traders by creating more favorable environment for trade, and improved
access to market, providing credit facilities, and information on how to build, organize and make
success on small business.
Key words: Informal Sector, Women, Economic Development
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Keywords
Informal sector, Women, Economic development