Country
Ethiopia

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"Working with five Ethiopian firms, we randomized applicants to an industrial job offer, an "entrepreneurship" program of $300 plus business training, or control status. Industrial jobs offered more and steadier hours but low wages and risky conditions. The job offer doubled exposure to industrial work but, since most quit within months, had no impact on employment or income after a year. Applicants largely took industrial work to cope with adverse shocks. This exposure, meanwhile, significantly increased health problems. The entrepreneurship program raised earnings 33 percent and provided steadier hours. When barriers to self-employment were relieved, applicants preferred entrepreneurial to industrial labor."

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"The promotion of micro and small enterprises has been a centerpiece of the Ethiopian government's strategy to alleviate urban unemployment among the youth since 2004. Since this time, the government has adopted twin strategies of creating a business environment conducive to start and operate MSEs while at the same time actively triggering the establishment of new MSEs.

In this research, using a large dataset collected from 13 major cities in Ethiopia, we explore whether government-induced enterprises (cooperatives) differ from self-initiated enterprises (non-cooperatives) in various aspects of business productivity, business practices and performance."

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"This study estimates that social enterprises could create more than 1 million additional jobs by 2030 in the 12 focus countries that have been analyzed. Overall, this would result in a total of approximately 5.5 million direct jobs in social enterprises in 2030. These jobs would be created in existing markets, but also for new markets, thus creating new value chains and many more indirect income opportunities in these countries. The implementation of the interventions recommended in this report are thus an important action to prepare the African continent on future demographic dynamics. In addition, they can also be seen as an important contribution to preserve jobs that have been put at risk because of COVID-19."

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