Characteristics of Small Businesses in Residential Settlement of Addis Ababa - the case of Aware area
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2014-03
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Addis Ababauniversity
Abstract
The main purpose of this study is to identify the types and characteristics of small business in residential settlements. For this, the researcher focused on spatial characteristics of the market area and socio economic characteristics of small business owners. The primary data are collected from the case study and are analyzed both quantitatively and qualitatively. The secondary data collected from LDP report, magazines, brochures, books, theories, researches are discussed in the literature review. The study took Aware local market area which is located in Arada sub city, as case study to clearly understand the spatial and socio economic characteristics of small businesses in the neighborhoods of Addis Ababa. Thus the study is done by formulating filters to identify the major element in the different type’s small businesses and in depth interviews for the business owners. The main types of small businesses identified in the study area are open markets, home based businesses (HBE), rental shops and small scale enterprises (MSE). The relationship between different types of small business and the socio- economic status (Age, educational status, income status, skill status) of business owners are found to have great impact on the spatial characteristics (size, shape, construction material they use, accessibility) of small businesses and the activity of the small businesses. The main impacts identified are: the lesser the socio economic status of business owners such as: age, educational status, skill status, income per month of the business owners is the lesser the knowledge they have to develop and improve the physical status of the businesses, and vies versa, The lesser their socio economic status is the less they are efficiently performing in the business and vice versa. In addition the study also found the advantages of small businesses in residential settlements as well as on a bigger scale. The major advantages are: Income generation, employment generation, economic sustainability, gender equity, economic development, and entrepreneurship. Thus, If it is done in proper and planned manner small businesses can be a tool for creating stable income distribution between neighborhood residents. But in order to achieve this, small business owners should get the proper financial support, training support and proper space to work and insure the quality of their products and service.
Key Word: - Small business
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Small business