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Constraints of youth entrepreneurs in Ethiopia

Author

Listed:
  • Hamed M. S. Ahmed

    (Werabe University)

  • Yimer Ayalew Ahmed

    (Wollo University)

Abstract

The youth entrepreneurship has been regarded as a tool for employment creation in Ethiopia. However, the country faces the challenge of high youth unemployment rates. Even the country is considered as one of the lowest rates of youth entrepreneurial activity and business operating in the sub-Saharan African region. The aim of this research is to investigate the major potential constraints of youth entrepreneurs in the small and micro-enterprises. In order to fulfill the objectives of the study, this research employed a descriptive research design with a quantitative research approach. The target population of the study was 5000 youth entrepreneurs between aged 18 and 29 years at the time of the research. Out of the target population, the researchers selected 370 as a sample size by using a proportional stratified sampling technique. The valid responses for analysis were 350 respondents. The survey questionnaire was used as a tool for data collection. The study used descriptive statistics and factor analysis. The results of the study indicate that unfavorable government policy, limited access to finance, limited access to market, limited access to information and infrastructure, limited access to business assistance and support, limited access to entrepreneurship training and education, lack of social support, unfavorable administrative, and weak institutional linkage were the major potential constraints of youth entrepreneurs in the study area. The study draws implications for policymakers, the Ministry of Youth Development, Chamber of Commerce and Industry, and the government to adopt multi-faceted, multi-targeted, and multitier approaches in order to facilitate and encourage youth entrepreneurship.

Suggested Citation

  • Hamed M. S. Ahmed & Yimer Ayalew Ahmed, 2021. "Constraints of youth entrepreneurs in Ethiopia," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 337-346, December.
  • Handle: RePEc:spr:jglont:v:11:y:2021:i:1:d:10.1007_s40497-021-00292-z
    DOI: 10.1007/s40497-021-00292-z
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    References listed on IDEAS

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    1. Wim Naudé & Thomas Gries & Eric Wood & Aloe Meintjies, 2008. "Regional determinants of entrepreneurial start-ups in a developing country," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 20(2), pages 111-124, March.
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    5. Abel Tewolde Mehari & Christian Feleke Belay, 2017. "Challenges and prospects of entrepreneurship development and job creation for youth unemployed: evidence from Addis Ababa and Dire Dawa city administrations, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 6(1), pages 1-22, December.
    6. Besnik A. Krasniqi & Justina Shiroka-Pula & Enver Kutllovci, 2008. "The determinants of entrepreneurship and small business growth in Kosova: evidence from new and established firms," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 8(3), pages 320-342.
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    Cited by:

    1. Tue Minh Nguyen Le, 2024. "Factors of Demographic and Sustainable Entrepreneurial Intentions: A Case Study of University Students in Can Tho, Viet Nam ," GATR Journals gjbssr650, Global Academy of Training and Research (GATR) Enterprise.
    2. Ailing Liu & Xiaojun Ma & Meimei Zhou & Lichen Zeng & Jijian Lu, 2023. "Performance Model of Youth Entrepreneurship Platform in the Context of Common Wealth Returning to Hometown," Sustainability, MDPI, vol. 15(19), pages 1-18, October.
    3. Ebrahim Endris & Andualem Kassegn, 2023. "Profitability of Agricultural Micro and Small-Scale Enterprise in North Wollo Zone, Amhara Regional State, Ethiopia," SAGE Open, , vol. 13(2), pages 21582440231, May.
    4. Ibrahima Barry & Lassana Cissokho, 2025. "Effects of individual and household characteristics on informal entrepreneurship among youths in Senegal," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 15(1), pages 1-15, December.
    5. Ankita Sarmah & Bedabrat Saikia, 2023. "Business challenges of the nascent and mature micro small and medium enterprises (MSMEs): a comparative analysis from India," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 13(1), pages 1-13, December.
    6. Ondřej Dvouletý & Ivana Svobodová & Nina Bočková & Jarmila Duháček Šebestová, 2024. "Becoming a First-time Entrepreneur in 40s and Older: Lessons from Survival Analysis," Working Papers 0076, Silesian University, School of Business Administration.

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