The Contribution of Micro and Small Enterprises in Community Development in Addis Ababa

96 Pages·2015·1.17 MB·English

Addis Ababa University
School of Social Work

The Contribution of Micro and Small
Enterprises in Community Development in
Addis Ababa Gullele Sub City

A thesis

Submitted to Addis Ababa University, School of Social Work, in Partial
Fulfilment of the Requirements for the Degree of Masters of Arts in Social
Work

By: Assefa Tasisa

Advisor: Zenebe Baraki (Ph.D)

June 2014
Addis Ababa
The Contribution of Micro and Small
Enterprises in Community Development in
Addis Ababa Gullele Sub City

ASSEFA TASISA

A thesis Submitted to Addis Ababa University College of Social
Science School of Graduate Studies

In Partial fulfillment of the Requirements for the Degree of
Master of Arts in Social Work

ADDIS ABABA UNIVERSITY
ADDIS ABABA, ETHIOPIA
May 2014
ADDIS ABABA UNIVERSITY
SCHOOL OF GRADUATE STUDIES
This is to certify that the thesis is prepared by Assefa Tasisa, entitled: The Contribution of
Micro and Small Enterprises in Community Development in Addis Ababa, Gullele Sub-city,
and the thesis was submitted in partial fulfillment of the requirements for the degree of
Masters of Arts in Social Works complies with the regulations of the University and meets the
accepted standards with respect to originality and quality.
Signed by the Examining Committee
______________________ Signature________________ Date________
External Examiner
______________________ Signature________________ Date________
Internal Examiner
______________________ Signature________________ Date________
Advisor

_______________________________________________________
Chair of Department or Graduate Program Coordinator
Dedication
To My Parents
ACKNOWLEDGEMENTS

A study of this type could not come to completion without the assistance of institutes, groups
of people and individuals. First of all, I would like to thank God for his unconditional love.
My special gratitude goes to my advisor Dr. Zenebe Baraki, whose work ethic is worth
modeling, for his commitment on the thesis at each stage and for making invaluable
comments and suggestions. His utmost support is highly appreciated. I would also like to
express my appreciations to my wife Mekdelawit Ollana who is also the building block of my
life. This Thesis would not happened had she had not cooperated, understand and tolerated
me. The support of those others too numerous to mention is also appreciated.
Table of Contents
I. List of Appendices .........................................................................................................................i
II. List of Abbreviations and Acronyms ......................................................................................... ii
III. Abstract ..................................................................................................................................... iii
1 Introduction .................................................................................................................................... 1
1.1 Background of the study ........................................................................................................... 1
1.2 Statement of the problem ........................................................................................................ 2
1.3. Objectives of the study ............................................................................................................ 5
1.3.1. General objective ............................................................................................................. 5
1.3.2. Specific objectives ............................................................................................................ 5
1.4. Research questions ................................................................................................................. 5
1.5 Significance of the study ........................................................................................................ 6
1.6. Scope and limitation of the study....................................................................................... 6
1.7. Organization of the study ..................................................................................................... 7
2.1. Definition of Community Development ................................................................................... 8
2.2. Conceptual and Theoretical Synopsis ......................................................................................10
1. Social capital ......................................................................................................................10
2. Human Capital ...................................................................................................................12
3. Physical capital ..................................................................................................................13
4. Financial Capital.................................................................................................................14
5. Natural capital ...................................................................................................................15
2.3. Micro and Small Enterprise .....................................................................................................16
2.4. Socio-economic Importance of MSEs ....................................................................................20
2.1.1. Employment Creation ......................................................................................................21
2.1.2. Poverty Reduction .........................................................................................................22
3. Description of the Study Area and research Methodology .......................................................23
3.1 Description of the Study Area ..............................................................................................23
3.1.1. Physical Description ......................................................................................................24
3.1.2 Demographics Description..............................................................................................24
3.1.3 Economic and Social Settings of Gullele Sub-city ...........................................................25
3.2 Research Methodology .........................................................................................................23
3.2.1 Study design .....................................................................................................................25
3.4. Quantitative research .................................................................. Error! Bookmark not defined.
3.5 Reasons for combining the two methodologies ............................ Error! Bookmark not defined.
3.6 Sampling techniques .............................................................................................................27
3.6.1 Sampling Frame ...............................................................................................................27
3.6.2 Sample size ......................................................................................................................28
3.7 Data collection ........................................................................................................................28
3.7.1 Primary Data collection techniques .............................................................................28
3.7.1.1 Questionnaire ............................................................................................................28
3.7.1.2 In-depth interview ...................................................................................................29
3.7.1.3 Case Study ........................................................................ Error! Bookmark not defined.
3.7.1.4 Observation ...............................................................................................................29
3.7.2 Secondary Data Collection Techniques ........................................................................29
3.7.3 Method of Data Analysis ................................................................................................30
4. Data Analysis and Discussion .....................................................................................................31
4.1. Demographic characteristics of the respondents and overview of MSEs in .............................31
4.1.2. Gender ............................................................................................................................31
4.1.3 Age of respondents...........................................................................................................32
4.1.4 Marital Status ...................................................................................................................33
4.1.5. Sources of Income before MSE business ..........................................................................33
4.1.6 Family size of respondents ................................................................................................34
4.2 Human Capital .........................................................................................................................36
4.2.1 Trainings in relation with MSE business ............................................................................36
4.2.3 Knowledge Acquired from the Trainings ...........................................................................38
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4.2.4 Skills Developed ................................................................................................................39
4.2.5 Families and/or children of MSE operators school going ...................................................40
4.3 Financial Capital ......................................................................................................................45
4.4 Physical Capital........................................................................................................................46
4.5 Social Capital ...........................................................................................................................48
4.5.1 Role of MSE for Iqub .........................................................................................................49
4.5.2 Role of MSE for Iddir participation ....................................................................................50
4.5.3 Cooperation and support each other ................................................................................52
4.5.4 Trust .................................................................................................................................53
4.5.5 Norms or Reciprocity: .......................................................................................................54
4.6 Challenges of MSEs..................................................................................................................55
5. Conclusion, Recommendation and Social Work Implication.............................................................56
5.1. Conclusion ..............................................................................................................................56
5.2. Recommendations .................................................................................................................60
5.3. Social Work Implication ..........................................................................................................61

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I. List of Appendices

APPENDIX A: Questionnaire MSE Operators
APPENDIX C: Interview Guide to Government Officials (MSEs staff and AdCSI)
APPENDIX D: Interview Guide to Key informants from MSE operators. (English)

i
II. List of Abbreviations and Acronyms

AdCSI Addis Credit & Saving Institute

BDS Business Development Service
CED Community Economic Development
CSA Central Statistical Authority
CD Community Development

ETB Ethiopian Birr

FAO Food and Agricultural Organization

GTP Growth and Transformation Plan

ICAD Interagency Coalition on AIDS and Development

ILO International Labor Organization
LED Local Economic Development
MFI Micro Finance Institute
MoTI Ministry of Trade and Industry

MoUDC Ministry of Urban Development and Construction

MoWUD Ministry of Works and Urban Development

MSEs Micro and Small Enterprises

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