Challenges of Youth Revolving Credit Fund Implementation in Addis Ababa City Administration: A Case of Gulele sub city (Woreda 7 & 8)
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Date
2021-09
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A.A.U
Abstract
The purpose of this study was to identify the challenges of Youth Revolving Credit Fund (YRF) implementation in Addis Ababa City Administration taking the case of Gulele sub city (Woreda 7 & 8). The study specifically aimed at assessing how Lack of Government Support, the credit procedures, the administrative commitment of the top management, and attitude of the beneficiary youths affect the implementation of the Youth Revolving Credit Fund in Gulele Sub-city of Addis Ababa City Administration. In attaining the objectives, the study employed a case study design with a mix of both a qualitative and quantitative research approaches. The study used a closed ended questionnaire and open-ended interview to collect primary data. Descriptive statistics was used to analyze frequencies, and percentages. Data analysis was conducted using Statistical Package for Social Sciences (SPSS). The study findings were presented using tables and figures. The findings revealed that Manufacturing and Construction are the major sectors that Youth Revolving Fund program beneficiaries are involved followed by Trade, Service and Urban Agriculture. Lack of alternative job and the accessibility of YRF are the major reasons for the youths to start their business. The most difficult pre-conditions to get the Youth Revolving Fund are put in the order of getting loyal, committed and long-lasting business member for association, ten percent advance saving, legal requirements like license, authentication and tax identification number, getting of suitable business location and work place, prepare and summit sound and acceptable business proposal. Youth revolving fund beneficiary’s perception to micro and small-scale enterprise and its output were negative. The effort of government to change the attitude of youth revolving fund beneficiaries about micro and small-scale enterprise’s role, hard work habit and job creation were limited. There is a limited management experience in transforming the fund to the Youth Revolving Fund beneficiaries. Also, management ability in creating internal and external relationship is low. Credit procedure is not encouraging and there is a belief that Political favoritism is the main criterion for obtaining loan. Governments` support towards financial institutions to provide fund, training and skill upgrading for youth business leaders and entrepreneurs as well as the required business infrastructure arranged by the government is limited. Furthermore, the startup working capital provide to Youth Revolving Fund beneficiaries is not sufficient and didn`t found the right place to work. Most of the beneficiaries are not familiar with business/financial information. The study concluded that based on the findings and suggest recommendation based on the conclusions made.
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Keywords
Credit, Fund, Revolving Fund