The Role of Small Enterprises in Urban Housing Development And Employment: The Case of Kolfe-Keranio Sub-City

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Date

2009-07

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Addis Ababa University

Abstract

Small enterprises play the role of mobilizing fragmented and small sized capital of individuals in the community and channel such resources to the pool oj investment in the locality which is likely lead to the creation of ample employment opportunities. Though promotion of small enterprise development is important, knowing the enterprises role in local economic development, their characteristics, main problems and factors affecting their performance have got a paramount importance. In the study, enterprises were categorized into two, good and bad performers, purposively based on their performances in their respective subsectors. By providing inputs for the housing construction and by creating employment opportunities for less skilled individuals play their vital roles. Forming associations with unrelated individuals and shortage of start up capital were the core problems during the start up stage. Being under the influence oj the government, lack of production space, difficulty of obtaining supplies and delay in the delivery of goods are the top four problems at the operation stage. Access to credit, technology and relationships among members are some of the major factors affecting the performances of the enterprises. Having only one market linkage with the housing agency, high money withholding and not being allowed to diversify or expand their businesses were the major reasons for the death of most of the enterprises in the study area. The agency wants to control the enterprises in every aspects of their activity and does not let them to be independent and is the one to determine the fate of the enterprises. Most of the individuals participating in the enterprises have their own private job and this collides with the essence of establishing enterprises for the youth and unemployed section of the society. In one side, the government tried to support the enterprises by providing trainings, working area, loans, the required machines and supplies. On the other side, do not let them to diversify, improve or expand their operation. This act of the housing agency remembered the Amharic idiomatic expression of 'endayamahe tiraw endaybela gifaw' literally means invite him to come but does not permit him to eat.

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Keywords

Small Enterprises in, Urban Housing Development

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