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Informal sector and urban unemployment: small businesses contribution to large livelihood improvements

Author

Listed:
  • Tefera Darge Delbiso
  • Fekadu Nigussie Deresse
  • Addisalem Ambaye Tadesse
  • Befekadu Bezabih Kidane
  • Germán Guido Calfat

Abstract

Based on quantitative data collected from 450 informal sector operators and in-depth interviews with stakeholders in Hawassa City, Ethiopia, this study assesses the improvement in the livelihood of informal sector operators. Our findings show that the majority of operators (about 90%) have improved their livelihood. Operators who are native, educated, experienced, profitable, and economical are more likely to improve their livelihood than their counterparts. However, operators face challenges such as a shortage of working capital, lack of working premises, shortage of raw materials, and narrow local market base. Given the considerable impact of the informal sector on the livelihood of the operators, the government needs to seriously consider the role of the informal sector in combating growing urban unemployment.

Suggested Citation

  • Tefera Darge Delbiso & Fekadu Nigussie Deresse & Addisalem Ambaye Tadesse & Befekadu Bezabih Kidane & Germán Guido Calfat, 2018. "Informal sector and urban unemployment: small businesses contribution to large livelihood improvements," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 34(2), pages 169-182.
    • Handle: RePEc:ids:ijesbu:v:34:y:2018:i:2:p:169-182
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    Cited by:

    1. Muhammad Zada & Shagufta Zada & Mudassar Ali & Yongjun Zhang & Abida Begum & Heesup Han & Antonio Ariza-Montes & Alejandro Vega-Muñoz, 2021. "Development of Local Economy through the Strengthening of Small-Medium-Sized Forest Enterprises in KPK, Pakistan," Sustainability, MDPI, vol. 13(19), pages 1-17, September.

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