Determinants Of Youth Participation In Micro And Small Enterprises In Liban Jawi District , Oromia, Ethiopia

Abstract

In recent developments, the role of micro and small business enterprises has been accepted as very significant in achieving the objectives of economic growth in general and in specific areas such as employment creation, generating income, promoting investment, and others. The purpose of this study was to investigate factors determining youth participation in micro and small business enterprises in Liben Jawi District. The samples were selected randomly from each stratum using the lottery method, and 124 respondents were selected and used for analysis. The questionnaires were prepared in English and interpreted into Afan Oromo. Additionally, semi-structured interviews were also employed to gather qualitative data from interviewees who were MSE managers. The data was analyzed using descriptive statistics and an econometric model (a binary logistic model). The finding indicated that the most important factors influencing MSE participation were sex, education, experiences previously in MSEs, initial capital to start a business, and access to a working place. Related problems and youth characteristics were identified as significant factors that hinder the youth participation of MSEs. Based on these findings, concerned bodies, including government and non-governmental organizations should provide facilities such as workplaces, initial capital, and education in the form of training and related materials to improve youth participation in MSEs. Based on the findings, a recommendation was forwarded on how to facilitate infrastructure challenges, and the regional government should revise its loan policies and principles, especially 20% pre-saving amounts, and other zonal and District bodies should create marketing opportunities for MSEs like bazaars, trade exhibitions, and business forums for operators of MSEs and Suggestions for other researchers were also forwarded.