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