Youth group micro-enterprises in Ethiopia

In Ethiopia, the Empower Youth for Work (EYW) programme is implemented in the Oromia and Somali regions in partnership with local implementing organizations and different stakeholders.  Among other activities, the programme is working with the government to link youth groups with microfinance institutions so they can receive loans to start their own businesses.

To gain insights into the initial impact of participating in these youth start-ups on the skills and livelihoods of young people, the EYW programme conducted research in the Oromia region. The research findings indicate that although the youth businesses are only at the initial stages of making profit, all individuals and their families are already benefitting in various ways from their newly acquired incomes. In addition, most of the youth have diversified their businesses, indicating that they are developing an entrepreneurial mindset and searching for economic opportunities in their respective areas of work. Moreover, the communities they live in have became more supportive and inclusive towards youth who are participating in the start-ups. The research also shows the important function of youth groups in building the skills of participants.

Although the young people are positive about the training received, we see possibilities for improvement, including facilitating market linkages, ensuring regular follow-up and technical support, and creating linkages with different local and government sectors for field support and to ensure sustainability of the youth start-ups.

The EYW programme in Ethiopia concluded from the research that the youth start-ups show potential, and that the programme’s support to a guarantee fund appears to be an effective strategy to increase socio-economic empowerment among young men and women.

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The full document can be found here

And on Policy and Practice

Authors: Saskia van Veen, Gwendolyn Parami and Martha Abebe