project title - pep-net title challenges and prospects of entrepreneurship development and job...

PROJECT TITLEChallenges and Prospects of EntrepreneurshipDevelopment and Job Creation for YouthUnemployed: Evidence from Addis Ababa and DireDawa city Administrations, Ethiopia.

5/12/2014 1

Project Proponent institution

Name: Haramaya UniversityName of Head of Institution: Dr. Girma

Amente NonoMailing Address: P.O. Box: 138, Dire

DawaTelephone and fax numbers: +251-25

5530320Email address: Not availableWebsite: www.haramayauniversity.edu.et5/12/2014 2

Historical background of HU

Established:May 15, 1952 based on the agreementbetween Government of Ethiopia and the TechnicalCooperation Administration of the Government of theUnited States of AmericaMandate:given to Oklahoma university to operatethe universityLocation:Based on the wish of Emperor hailesellassieit was located and up to date in Oromia regional stateeastern hararghe zone Alemaya wereda,ethiopia

5/12/2014 3

Historical background of HU

1963:Till this date it was dependent on Oklahoma university Especially after 1966 the role of Americans

was limited to advisory and technical support. Current functionality:Haramaya Campus,

Harar Campus and Chiro Campus.

5/12/2014 4

Project Administrative InformationName Posoition in the project Position in the institution

Abel Tewolde Leader Lecturer and researcher

Wasihun Mohammed Member Lecturer and researcher

Usha Rekha Member Lecturer and researcher

Hayat Fentaw Member Lecturer and researcher

Christian Feleke Member Lecturer and researcher

Kassahun Mamo Member Lecturer and researcher

Senayit Seyoum Member Lecturer and researcher

5/12/2014 5

BACKGROUNDAlmost 90% of world youth are living in acondition that they can’t access enough education,capital, paid employments and health servicesAbsorbing youth within the formal economy isnearly nonexistent.Ethiopia: More than half are under 25 years oldEthiopia: Population more than half are femalepopulation

5/12/2014 6

BACKGROUND

Greater numbers of youth and women are vulnerableThey operate odd jobs in the informal sector to earn for their living. How UN and WHO defines youth? between 15-24 years and 10-24 respectively.How Ethiopia defines youth? Ethiopian

Social Security and Development Policy define as 15-24 years

5/12/2014 7

BACKGROUNDHow ILO defines unemployment? Someone

being“without work”, “currently available for work” and “seeking work’’.How Ethiopia defines unemployment? It

accepts ILO and defines it under the partial relaxation and completely relaxed definitionPartial relaxation: includes discouraged job

seekers in addition to persons satisfying the standard definition.

5/12/2014 8

BACKGROUNDDiscouraged job seekers : want a job but did not take any active step to search for work because they believe that they cannot find one.Completely relaxed definition: Person without work and those who are availablefor work, including those who were or were notseeking work.What makes it complete relaxed? the seekingwork criterion is completely relaxed.

5/12/2014 9

BACKGROUNDMore than half the young people aged

below 25 who want to work cannot find a job opportunity35% of unemployed young people have

been in this situation for over one year.Ethiopia: Because of population growth,

the labor force is expected to double in the next 25 years.

5/12/2014 10

BACKGROUNDThere are more than 33 universities with 10

additional being constructed. This explosive growth of universities has

produced many graduates ready for work. 80% of Ethiopia’s overall labor force is

engaged in subsistence farming.More job opportunities are critically needed

for university graduates.

5/12/2014 11

BACKGROUNDEthiopia has one of the highest urban

unemployment rates worldwide at 50% ofthe youth labor force.Ministry of Labor and Social

Affairs:87% of all registered job seekersare between the ages of 15-29.68% percent of employed youth (rural

and urban) are unpaid family workers.

5/12/2014 12

BACKGROUND

MDG: High youth unemployment is challenge to MDGTo accelerate the growth, security and

sustainability of the Ethiopian economydevelopment, each sector needs to besupported by young entrepreneurs andemployees.The need to create more jobs which is

consistent and comparable to new graduates isvery essential.

5/12/2014 13

BACKGROUND

This can also lead to social unrest and civil disobedience. creating productive work for young people in sub Saharan Africa GDPLocal governments are responsible to createjob opportunities for those youths not only ingovernment offices but also in various NGOsand private organizations. increase of 12-19%.

5/12/2014 14

RATIONALE OF THE PROJECT

Grants ease access of information for private, public and all other usersWhy the CBMS supposed to be established?Answer: Because there is no existing CBMS in the area.Lack of data makes it difficult for regions and sub-cities to identify the needs and challenges of youth to address sufficiently.

5/12/2014 15

RESEARCH QUESTIONS

1. What is the status of unemploymentrate for the selected Kebele/Subcity?

2. What types of skills do youths lackto start their business?

3. What are the available policy optionto reduce unemployment in generaland youth unemployment inparticular?

5/12/2014 16

HYPOTHESES

H1: Absence of capital outweighs the sumof other factor in affecting youthunemployment?

H2: The cause of high unemployment isfrom government policy direction?

H3: Unemployment rate is negativelycorrelated with the number of businessesin the area?

5/12/2014 17

OBJECTIVES

General Objective:To develop and pilot test a CBMSimplementation in Addis Ketema sub city(AddisAbaba) and Kebele 08 and Adada Rural kebeleadministration(Dire Dawa).

5/12/2014 18

OBJECTIVESSpecific objectives of the CBMS:Preparation of community poverty and household level poverty profile and maps of Addisketema Subcity (in Addis Ababa) and kebele 08city administration &Adada rural administration(in Dire Dawa). Preparation of local development plan withlocal officials in Addis Ababa and Dire Dawabased on CBMS and other relevant and relateddata.5/12/2014 19

OBJECTIVESTo provide relevant information to anygovernmental and nongovernmental institutionswhich needs it to develop new policy.Checking if there is new policy impact andthe life of the society is improving

5/12/2014 20

OBJECTIVESSpecific objectives of the pilot test:To identify problems arising from variousfinancial stakeholdersTo suggest what operational readjustment isneeded from stakeholders to ease effort ofyouths’ job creation.To suggest in which area should the youth hasto get training in supporting them to create theirown job.

5/12/2014 21

PROJECT SITE SELECTION

S.No Addis Ababa

Total population size

Number of Households

Unemployment rate

Major economic activities

1. Addis KetemaSubcity

255,372 52,961 27.2 Trade

5/12/2014 22

PROJECT SITE SELECTIONS.No

.Dire Dawa Total population

sizeNumber of Households

Unemployment rate

Major economic activities

1. Kebele 08 administration(around Lagahare)

34,173 8,543 Undisclosed(The CBMS will reveal it)

Trade

2. Adada ruralkebele

6,763 1,550 Undisclosed(The CBMS will reveal it)

Farming activity and small and micro enterprise

5/12/2014 23

METHODOLOGY:INDICATORS(Individual)Indicators Variables Measurement

Number of years of individuals

Age Number of years

Gender of an individual Sex Male female

Primary/secondary/tertiary participation of an individual

Education Levels attained and the benefits accrued (Illiteracy, Primary, Junior, Secondary, Tertiary(College and universities)

Employment or unemployment rate

Employment/occupation Self employed, civil servant

5/12/2014 24

Indicators Variables Measurement

Number of years an individual spends on work

Work experience in the field

Short period, medium period and long period

Return from job involvement

Income Salary/wage

Nature of accompany of an individual

Marital status Married , informal/union, divorced/separated, never married, widowed

Nature of resident of an individual

Housing Rent, owned or no housing at all

5/12/2014 25

METHODOLOGY:INDICATORS(Individual)

Indicators Variables MeasurementSome ones clothing needs

Clothing Total number of cloth, clothes value

The number of years the person spend with a certain job under study.

Work experience Expressed in terms of years stay at work

The relationship between work, risk and human behavior

Attitude towards risk Risk avert, risk lover etc

An individual habit of saving

Saving trends Savings made so far

5/12/2014 26


Indicators Variables MeasurementIndividual’s involvement in a voluntary activities

Number of voluntary activities

The total number of involvement

Units and Values of economic activities

Total production Total number of output (In Kg, liter, meter etc) and Total production value.

Types of economic activities in which a person is involved

Economic activities Agriculture, transportation, industry etc

Types of crime in which the person is involved

Crime Burglary, stealing, hanging etc

5/12/2014 27


Indicators Variables MeasurementWillingness of a person to involve in a social

weeding, death remembrance

Average involvement per year The amount of money they spent on.

Vulnerability of a person for addiction

types of youth addiction

Number of sales of beer, chat, cigarettes and other addictives.

Individual’s health status

Types of disease Frequency of a person got sick

5/12/2014 28


CBMS at household levelIndicators Variables Measurement

Units and Values of totalhousehold consumption

Totalconsumption

Total number ofoutput consumed (InKg, liter, meter etc)and Total consumptionvalue.

People living together perhousehold

Family size Small, average andlarge

Nature of resident ofhousehold

Housing Rent, owned or nohousing at all

Number of economicalinactive member of thehousehold

Dependents Number

5/12/2014 29

Indicators Variables MeasurementWays of access to safewater and sanitation

Water and sanitation Filtration of the water(watertype),toilet size, wastemanagement activities

Access to infrastructures Types of infrastructures Road type (asphalt, cobblestone, plane roadetc),electricity, telephoneetc

Availability andconsumption of food

Nutrition type Average daily protein,carbohydrate consumption,Prevalence of underweightchildren under-five years ofage

Willingness of a person toinvolve in a social

weeding, deathremembrance

Average involvement peryear ,The amount of moneythey spent on.

5/12/2014 30

CBMS at household level

Indicators Variables MeasurementHouseholds health services status

Health Distance to health facilities, availability of drugs, quality and cost of health services

Households access to market

Distance to the nearest market

Measurement in KM or Meter

Households habit of saving Saving trend Amount of savings made by household per period

Number of economically active members of household

Number of active workers Counting the number who are active in household economic activities

Gender of head of household

Sex Counting Male headed or female headed household

5/12/2014 31

CBMS at household level

CBMS at community levelIndicators Variables Measurement

Proportion of community who have died in the period

Death rate Annual number of death and their causes, maternity death, infant death.

Newly born child in the period

Birth rate Annual number of birth at home ,birth at hospitals

Total amount of permitted investment outlay in the community per year

Investment Total amount of birr invested per year

Total number and values of jobs created in the community per year

Employment Possible number of jobs, their salary

5/12/2014 32


Nature of accompanied couples in the community

Marital status Number of singles, married ,divorced etc

Proportion of individuals separated from their job in the community.

Rate of job departure Total number of employees living their current job

Proportion of retired from the total community labor force

Retirement Total number of employees leaving the organization(lay off, pension, voluntary retire etc)

Most dominant economic activity in the community

Economic activities Agriculture, transportation, industry etc

5/12/2014 33


Communities intervention towards their environment

Environmental effects Degree of deforestation, air pollution, sound pollution Consumption of ozone-depleting substances

The average number of years does a person from the community lives

Life expectancy In terms of years

An average share of an individual from the community’s annual economic activities

Per capital income Expressed in birr value

Participation individual in the community’s social affairs

Social capital Participation in social affair like “Edir”, “Ekub”…

5/12/2014 34


Provision of public goods in the community

Infrastructures Access to road, Road type (asphalt, cobble stone, plane road etc), electricity, telephone, water, etc

The community’s access to the financial services

Financial institutions Bank service, insurance services etc

Number of institutions involved in the community

Government and nongovernment institutions

Numbers and types of institutions in the community

Annual governmental support obtained by the community

Government subsidies Subsidies in terms of birr

5/12/2014 35


Proportion of a community population who are actively involved in the economic activities.

Labor force participation Number of labor force in the community relative to the overall inhabitants

Proportion of labor force who does have a job

Employment rate in the community

Percentage of employed from the labor force in the community.

Degree of inputs availability

Input access Highly available, less available etc

Units and Values of total household consumption

Consumption trend consumption of quantity and value in birr

5/12/2014 36


Units and Values of total household saving

Saving trend Amount of birr saved per day, month or year

The relationship between work, risk and human behavior

Attitude towards risk Risk averter or risk taker

Availability of recreation center for the community

Number of recreation centers in the community

Average number of people using the recreation center

Prevalence of crime in the community

Crime Crime rate relative to the specified area community.

5/12/2014 37


Natural disaster in the community

Natural disaster Earth quake, volcanic eruption, flood etc..

Provision of aid to the community GO and NGOs

Aid Food Aid, educational aid, health aid etc

Causes and effects of conflict in the community

Peace and Order Number of conflict occurred in the community in the last twelve months

5/12/2014 38

Indicators for youth unemployment and entrepreneurship study

Indicators Variables Measurements Unemployment Youth unemployed,

total unemploymentPercentage and ratios

Type of youth unemployment prevail in the area i.e. frictional, structural, seasonal and cyclical

Types of Unemployment

Number

Problems to start business

Financial ,administrative etc

How long it takes(in terms of time and chain of procedures)

Skills of starting business

Technical and non technical skills

Number of skill trainings 5/12/2014 39

Indicators for youth unemployment and entrepreneurship study

Indicators Variables Measurements Government interventions

Subsidy and tax Birr value

Ways of financing Equity, debt Financial ratio analysis

Collaterals Assets Birr value of assetsThe degree of poverty or livelihood status in the selected sites.

Expenditure per adult equivalent

Head count and poverty severity indices

Economical, technological, political and social factors of unemployment

Factors of unemployment

5/12/2014 40

Data collectionThe total number of data enumerators tohandle the case of Addis Ababa will be 20 andDire Dawa will be 10.This is done on the basis of recognition thatthe catchment area and the population size ofAddis are much bigger than Dire Dawa. House hold level and community levelquestionnaires will be prepared on such a waythat it considered the indicators listed in theproject.

5/12/2014 41

Training 1: Briefing about the designedquestionnaires. This can make participantsbrief about the concepts and definitions of thequestionnaire.

Training 2: Training to enumerators on theoverall objectives of the CBMS and what typeand from where to collect the data. This can bedefined as training on guidelines of fieldoperation of census data collection.

5/12/2014 42

Data collection

Data processingBoth descriptive and inferential statistics willbe used.Frequency distribution tablesSimple hypothesis testing statistical toolHistograms, bar graphs, and pie charts will bethe diagrammatical tool that possibly the studyutilizes.Binary choice model (logit or probit)which is the probability of creating your ownbusiness.5/12/2014 43

In the logit model the probability of participationcan be defined as:

Where:-an estimated value of being an

entrepreneur for the observed individual,household and community characteristics

The probit model estimation:5/12/2014 44

z

z

i eeP

1

)()()|1( xFxzpxypp ii

xzi

Data processing

Multivariate linear regression modelY=α+βI+θH+ δC+eWhere,α - Vector of Coefficient of independent variationβ – Vector Coefficient of variables, which indicate

individual characteristicsθ – Vector Coefficient of variables, which indicate

household characteristicsδ – Vector Coefficient of variables, which indicate

community level characteristics

5/12/2014 45

Data processing

Y- The tendency of youth in job creation and self employment

I - Vector variables, which indicate individual characteristics

H - Vector variables, which indicates household characteristics

C- Vector variables, which indicates community characteristics

e - Error term

5/12/2014 46

Data processing

As a complimentary for this analysis themulticollinearity test based on Variance InflationFactor (VIF), correction method forhetroscedasticity problem and specification testswill be done.Where, - coefficient of determination

5/12/2014 47

)1(1

2j

j RVIF

Data processing

2jR

Foster-Greer-Thorbecke(FGT )Model:

Where,

the difference between income(expenditure) per capita and poverty line N-Total population in the economyα-Weight attached to poverty severity

H-The number of poor (those with incomes at or below Z)

5/12/2014 48

0,11

H

i i

i

zG

NP

,, linepovertyzmeasurepovertyP

Data processing

iG

The higher the FGT statistic, the more povertythere is in an economy.Alpha being 1 indicates the average povertygap, or the amount of income necessary to bringeveryone in poverty right up to the poverty line,divided by total population.This can be thought of as the amount that anaverage person in the economy would have tocontribute in order for poverty to be just barelyeliminated.

5/12/2014 49

Data processing

The commonly used values of α are 0, 1, and2.When we set α equal to 0, indicates theheadcount ratio, which measures percentage ofpopulation that falls below the stated povertyline for their living.when we set α equal to 1 and 2, we obtain thepoverty gap and severity of poverty indexrespectively.

5/12/2014 50

Data processing

Gini-coefficient:is a measure of statisticaldispersion intended to represent the incomedistribution of a nation's residents.

Where:A-Area between perfect equality line and Lorenz curve.B-The area below the Lorenz curve

5/12/2014 51

BAA

Data processing

A Gini coefficient of zero expressesperfect equality.A Gini coefficient of one (or 100%)expresses maximal inequality amongvalues (for example where only one personhas all the income).For the descriptive and inferentialanalysis of the study,STATA statisticalpackage will be employed.5/12/2014 52

Data processing

STEERING COMMITTEE SET UPThe committee will be established comprising

of the following twelve membersAn individual from the rural administration of

Dire Dawa.An individual from the urban administration of

Dire Dawa.Four individuals from selected kebeles of

Addis Ketema sub city of Addis Ababa.Two individuals from the project team

members.5/12/2014 53

Two individuals from data enumerators.An individual from Addis Ketema sub city

statistical bureau.An individual from Dire Dawa Administration

statistical bureau.

5/12/2014 54

STEERING COMMITTEE SET UP

EXPECTED OUTCOME

It will forward ideas on the way to motivateyouth in job creation and self employment.community level and household level povertymapping will be expected to be generated.the CBMS will be used and as a pilot study itgenerates analysis paper on youth employmentand entrepreneurship on the two areaadministrations

5/12/2014 55

EXPECTED OUTCOMElocal development plan will be prepared by thesub cities and kebeles based on the CBMS andother relevant data from the project.

5/12/2014 56

PROJECT DURATION AND BUDGETProject budget: Not exceeding 50,000 USDProject Duration: Not exceeding 2 years

5/12/2014 57

THANK YOU!

5/12/2014 58

Abel Tewolde MehariMobile:+251927962624 or +251913073240Po.Box:126Fax:+251221122240Haramaya UniversityDire DawaEthiopia

5/12/2014 59

project title - pep-net title challenges and prospects of entrepreneurship development and job...

Documents