The Role of Micro and Small Enterprises in Creating Employment and Poverty Reduction in Jima Genet Woreda
International Journal of Finance and Banking Research
Volume 4, Issue 6, December 2018, Pages: 91-100
Received: Jan. 2, 2019; Accepted: Feb. 7, 2019; Published: Mar. 26, 2019
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Author
Wakuma Dufera Tesgera, Department of Agricultural Economics, College of Agriculture and Natural Science, Salale University, Fiche, Ethiopia
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Abstract
This study aimed at assessing the Role of MSEs in creating employment and poverty reduction in Jima Genet district, Oromia Regional State, Ethiopia. The objective of this study was to analyze the role of MSE in employment creation and poverty reduction in the study area. Both quantitative and qualitative data were used. Secondary data was also collected from reports, journals, past research works, official documents and the internet. Non probability (purposive sampling) was used to determine the sample size and the determined sample size was selected by systematic sampling method from the population in the study area. The data was analyzed based on descriptive statistics such as percentages and graphs. In addition, econometric logit model was also used for explaining variables that affect the role of MSE. The results of the econometric logit model estimation revealed that production place, credit, access to train, market linkage and absence of experience in preparing business plan were found to be significant determinants for the role of micro and small enterprise in reducing poverty and employment creation. Based on the findings, the study recommended that Enterprises should train by professionals how to develop business plan; the culture of developing cooperation among members, government should improve system of giving production place and formal and informal association should be improved by taking the work of successful enterprises as examples; enterprises must develop sufficient marketing skills and diversified their product.
Keywords
Enterprise, Employment, Business, Poverty
To cite this article
Wakuma Dufera Tesgera, The Role of Micro and Small Enterprises in Creating Employment and Poverty Reduction in Jima Genet Woreda, International Journal of Finance and Banking Research. Vol. 4, No. 6, 2018, pp. 91-100. doi: 10.11648/j.ijfbr.20180406.11
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Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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