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