Perceived Entry Barriers to Self-Employment in Eastern Ethiopia with Special Reference of Graduates and Youth Employees

Mikrie Fekadu


This study aims to investigate Perceived entry barriers to self-employment in eastern Ethiopia with special reference to graduates and youth wage-employees. The sample of 532 wage-employed workers and graduates has been responding the question.

As a tool of descriptive data analysis in this research paper frequency tables has been used.

The result of this study shows that based on demographic variables, individuals from business background families are likely to engage in self-employed. Male youths are likely to engage in self-employed than female, and when educational background increase their intention for self-employment decreases.

The overall results indicates that fear of risk is the most significant barrier, capital ranked as the second highest barrier, followed by environmental barriers, support, opportunity, skill and interest. Among them capital favors youth employees’ group and environmental factors favor for graduates. There is no significant difference among skill, opportunity, risk and interest barriers to self-employment in youth employees and graduates. Youths perceived that the government gives attention jobs that requires elementary occupations that consists of routine tasks this discourages them to engage in self-employment. Most of the respondents have taken entrepreneurship course, but it didn’t  bring attitudinal change. Youths did not know about programs that the government appreciates the opportunities of self- employment.

Generally speaking, as the researcher has seen those back-us from the study, there must be an immediate and strict measure should be taken by the concerned body. Such as higher institutions should promote action oriented entrepreneurship training through establishing business incubation center.  To create entrepreneurial culture all stakeholders including role models, mentors, government, big business, communities and indeed individuals should be involved. And lastly the government should identify a job sectors for youths that is related and deserves their educational background and level.

Keywords: entry barriers, self-employment, youth

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