Challenges and Prospects of Informal Sector in Alleviating Urban Poverty in Yeka Sub-City of Addis Ababa City Administration, Ethiopia.
No Thumbnail Available
Date
2015-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
This study focuses on the role of the informal sector in alleviating poverty in Yeka sub city,
Addis Ababa, Ethiopia. The objectives of this research were exploring general context in which the
informal sector operates, assessing the living and working conditions of informal sector operators,
exploring the contribution of the informal sector to reducing poverty, identifying coping mechanism of
poverty in the urban informal sector and forwarding recommendation.
A descriptive survey design was used and a purposive sample of two respondent groups, namely
government officials and the informal sector participants themselves was drawn, and personal
interviews conducted and questionnaires were filled. The purpose of the interviews of the first
respondent group was to discover their perception of the informal sector in Addis Ababa City in
general, and in Yeka sub city in particular. This perception was vital for it was clear that this
group influenced government policies much more than the general public. The informal sector
participants themselves filled a questionnaire to learn how the informal sector operated, its scope
and benefits, how successful it was in alleviating poverty in Yeka sub city.
The results show that there were mixed feelings among the people in each of the two respondent
groups. Although many of the government officials were positive, mainly because the
government’s policy of free enterprise and promote the formalization of the informal sector
publicly, they still believe there is a need to control the sector’s operations. More than 83 percent
of the informal sector participants are making a comfortable livelihood through their activities
despite some difficulties. The lack of employment in the formal sector and the desire to survive
were found to be the two pressing problems that enhance the growth of the informal sector in
Yeka sub city. The participants could further expand their informal business activities if access
to credit facilities and working space were made available. However, further research is required
into the size and contribution of this sector to poverty alleviation and economic growth.
Keywords: Informal Sector, poverty alleviation
Description
Keywords
Informal sector, poverty alleviation