Role Of Loan Enterprise In Minimizing Unemployment Rate: The Case Of Oromia Credit And Saving Share Company West Shoa Zone Ambo Woreda

Abstract

The study has evaluated the role of enterprise loan in minimizing unemployment rate: the case of oromia credit and saving Share Company west shoa zone ambo woreda. The research use descriptive research design and data source would be both primary and secondary data source. Simple random sampling techniques were employed to collect data for selecting sample respondents from the staff, borrowers, women and youth association representatives. Accordingly, from currently existing active credits and saving associations found in the areas of the district; 112 respondents were included. According to the analysis conducted, most of the respondents were found to register significant increasing trends in their income, increase in quantity and quality of the daily dish served for consumption and housing improvements. The outcome of current research also indicated that there was the diversification of business activities, for the loans were disbursed for agricultural and other business activities but the size of the loan that the institution allows is very limited. Therefore, strengthening financial capacity to Oromia Credit and saving Share Company to increase the amount of loan it disburses for each client might reverse the direction. As most of the clients suggested that the loan was not sufficient to run their projects, Oromia Credit and saving Share Company should make an effort to increase the size of loan for its clients in relation to the business size and type of activities’