The Contribution of Group- Based Micro and Small Enterprises in Employment Creation and Income Generation Evidences From Woreda Fourteen of Kolfe Keranio Sub-City, Addis Ababa, Ethiopia

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Date

2016-02

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Addis Ababa University

Abstract

The main objective of this study is to investigate the Contribution of Group-Based MSEs (construction, manufacturing and service enterprises) to employment creation and income generation in the Woreda 14 of kolfe keranio Sub city. Unemployment and low income are one of the present situations in urban and cities of Ethiopia. The government of Ethiopia has formulated a policy to mitigate the overwhelmed problem by fostering micro and small enterprises. During the study, primary data were collected from 80 owners and 76 employees of MSEs’. In addition, secondary data were collected from Woreda 14 MSEDO, Kolfe keranio Sub city MSEDO, and Addis Ababa MSE Development Bureau. Both quantitative and qualitative approaches applied. The findings of the research shows, characteristics nature of respondents and enterprise have great influential nature in income generation and employment creation. In the surveyed enterprises, an employment was created at annual average of minimum 5-7 and maximum 17-23 in five the years. The annual average income of enterprise owners were at the minimum ranging between 30,000-50,000Birr and maximum ranging between 141,001-200,000 Birr. Also the annual average incomes of employee were minimum ranges of 8,000-13,000 Birr and maximum range 21,001-23,000Birr in five year. Research finding also shows lack of working place, insufficiency of finance or credit facility and etc. were the sever problem of enterprise during startup and operation. Identifying enterprise need and problem during start-up and operation, encouraging educational status of operators, modernizing working procedure, promoting micro finance institution, training about culture of saving, providing working premises in the appropriate place, and etc. should be encouraged

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Keywords

Ethiopia, Keranio

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