Changes and Prospects of Women in the Informal Business Sector in Addis Ababa: The case of Merkato
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Date
2012-07
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Addis Ababa University
Abstract
Th is stlldy lras conducted in Merkato, Addis Ababa lI'ith th e oilll of a,sessin g the major
cha ll enges al1ll pro.lpeC IS of women in the inf'orlllal bllsiness sector. Th e informal secto r
1}I'()1'ides lIlore than half of the emploYlllent opportllll ity in IIriJan areas of Ethi opia. The
seC/o r plays an important role in absorbing s /II pllls labor and help women ge nerating
income. Despite ouch contributions, th e inf'ormal ,ector is ,aid to face challenges
specifically for women operators in th e developing world. So me of the major problems
inclllde: la ck of wo rking capita l, poor working environment, lack of acce,s to credit and
tr a iningj{lcilities. In fact, the challenges womenface in the informal ,ectors are not velY
well studied in th e context of Addis Ababa. A case study approach was employed. Both
prilllw y and secondary da ta were collec ted through questionnaire, interview and
observat ion. A sample of 80 r espondents was taken Fom women informal operators in
Merkato area. In addition, key informants were considered Fom Woreda Trade and
Indllstry Office, and women 's Affair Office. The data were a nalyzed by using both
qualitative and quantitative methods. The findings of th e study show that, pOOr workin g
condition, shortage of working capital, lack of access to credit , lack of business skill/
training, sho rtage of raw materials, lack of inji-astru cture and service j{lcilities and
police harassment are th e major challenges women face in th e study ar ea. In f act,
findings suggest th at informal secto rs are serving as important safety nets for th e poor
and marg inalized women who do not get e mployment opportunities in the for mal sector.
Hen ce future interventions may consider as to how to transform informal business into
legal ones so that women can get access to credit facilities (from financial institutions)
and training (that can them impro ve th ei r business skills), In this re ga rd, es tablishing
them into micro and small enterprises IVould play a great role in providing other
necessary facilities sa as to change the living standard of informal operators, espec ially
women.
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Keywords
Women in the Informal Business