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

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


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



Informal sector, Women, Economic development