The Role Of Entrepreneurship In Inclusive Urban Development: The Case Of Holeta Town.

Abstract

Ethiopia is among the fastest-growing non-oil economies, driven by government reforms that have attracted foreign direct investment and expanded commercial agriculture and manufacturing. According to the National Bank of Ethiopia, urbanization has been closely linked to economic growth. A 2015 World Bank report indicates that Ethiopia’s economy grew at an average rate of 10.4% between 2003 and 2013, with cities contributing 38% of gross domestic product while employing only 15% of the workforce. Urban entrepreneurs play a vital role in addressing social and economic challenges through innovative business solutions. This study examines the contribution of entrepreneurial activities to inclusive urban development. Using both qualitative and quantitative data, the investigator employed purposive sampling to survey 80 entrepreneurs with over five years of experience from a pool of 150. Findings show that 55% of respondents operated in organized groups of more than five members, while 90% had hired staff, indicating the role of micro-enterprises in employment creation and economic empowerment. Micro-enterprises contribute to urban economic development by improving entrepreneurs' financial conditions, paying taxes, and supporting local government initiatives in Holeta town. The study recommends that local officials expand opportunities for micro-enterprise organization and improve financial access through simplified loan procedures. Additionally, cooperative promotions and trade structures should enhance market access for entrepreneurs