Challenges and Opportunities of Entrepreneurial Development of TVET Graduates: The Case of Cooperative Entrepreneurs in Addis Ababa
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Date
2008-02
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Addis Ababa University
Abstract
The main purpose of the study was to examine the challenges and opportunities of
cooperative entrepreneurs of TVET graduates. To this end, an attempt was made to look
into the major factors affecting entrepreneurial development in the TVET institutes and in
cooperative business enterprises such as partnership between TVET institutions and
enterprises, labor market information system, apprenticeship training, financial facilities,
policy, business development services and management of the enterprises. A descriptive
survey method was used to identifY the major problems encountered in the success of
cooperative owned enterprises in 20 cooperative societies found in 5 different sub-cities
of Addis Ababa. The subjects of the study were J 00 cooperative entrepreneurs of TVET
graduates, 3 TVET vice principals, 3 vocational counselors, a deputy head of trade and
industrial development bureau and 3 heads of trade and industrial development office of
the sub cities. Accordingly, the respondents sampling was carried out through stratified
and purposive sampling techniques. The data for the study was obtained through
questionnaires, interviews, observations and documents, and analyzed using SPSS
software. percentages and ji-equency count methods. The results of the study revealed
that TVET institutions were unable to establish a network of cooperative relationship
with enterprises, apprenticeship offering organizations were lillie prepared for
cooperation in the apprenticeship training for efforts made to elicit their active
partiCipation, and TVET institutions do not have institutional set up required by labor
market information systems. Moreover, the outcome of the study showed that lack of
(financial facili ties, technical, operational and management), government intelference
and absence of cooperative promotion policy were limitations recognized to address the
development of cooperative enterprises. Therefore, it is recommended that creating
awareness through information campaign for further deepening both the concept of
partnership and the culture of apprenticeship training, TVET institutions need to
establish labor market information system. Similarly, great emphasis should be placed on
Ihe pOlential contribution of cooperative entrepreneurs in creating wide employment
opportunities and providing a bridge to the formal sector for people currently working in
Ihe informal sector, rehabilitating sick units and identifY higher potential business
opportunity.
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