Determinants of Participation in Micro and Small Enterprise and Its Contribution to Household Food Security in Gundish-Meda of Gulele Sub-City Addis Ababa, Ethiopia

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Addis Ababa University


Micro and small-scale enterprises are critical to Ethiopia's economy. However, data suggests that the sector is less efficient than expected, and hence less contributed to the national economy. The central purpose of the study was to examine determinants of participation in micro and small enterprise and its contribution to household food security in Gundish-Meda of Gulele Sub-City Addis Ababa, Ethiopia. Data for this study were collected through surveys with, 246, samples house hold key informant interviews, focus group discussions and desk reviews. The descriptive statistics, binary logistic regression model, and ordinary logit model were used to analyze the data. Similarly the Household Food Insecurity Access Scale (HFIAS) was used to analyze the food security status of study households. According to the results of the logit model, MSE membership is more strongly related with MSE health status, access to credit, access to training, and total yearly income. The HFIAS results show that, around 8.9% of homes in the research region were classified as food secure, 25.2% as mildly food insecure, 40.3% as moderately food insecure, and 25.6% as severely food insecure. The ordered logit model also shows that the household head's education, credit, saving, training, total annual income and export status have both positive and negative effects on food security. The key challenges in the sector were a shortage of working spaces, insufficient capital, restricted access to the market, limited access to credit facilities, high raw material prices, and a lack of raw materials. According to the findings, micro and small businesses have a substantial and beneficial impact on program participants, as well as statistically significant changes in their food security.



Micro and Small Enterprise, Participation Determinant, Household Food Insecurity Access Scale, Gulele Sub-city, Addis Ababa