Determinates of Rural and Per-Urban Youth Participation in Micro and Small Agricultural Enterprises in Gurage and Silte Zone

Abstract

In southern nation nationalities and peoples’ region, youths are less willing to participate in micro and small agricultural enterprises. Due to these, huge amount of money from the government which was allocated for this purpose is not being used as expected. The study was conducted in Gurage and Silte zone of southern nations and nationalities peoples region of Ethiopia with the objectives of identifying determinates of rural and peri-urban youth participation in MSAE, identifying different agricultural enterprises available and the need of the youth, analyze determinants of effectiveness of micro and small agricultural enterprises they were participated and identify constraints and opportunities in their involvement in micro and small agricultural enterprises. In order to attain this objective both primary and secondary data were employed. The primary data were generated from 46 non micro and small agricultural enterprises participant and from 108 micro and small agricultural enterprises participant youths, totally from 154 sample youths. The primary data from Individual interview and key informant interview was generated by using pre-tested, structured questionnaire and check list respectively based on multi-stage random sampling method. This was supported by secondary data collected from different published and unpublished sources. The binary Logit model was used to identify determinants of rural and peri-urban youth participation in micro and small agricultural enterprises. The model result of the study reveals that out of 13 explanatory variables, 5 variables were found to be significant in determining youth participation in micro and small agricultural enterprises. This were Land size, total income, lack of awareness, lack of initial saving and lack of commitment by officials were found to be significantly affecting youth participation in micro and small agricultural enterprises. The study suggested that strengthen the financial capability of youth by providing enough amount of credit without initial saving is a strategy to increases youth participation in micro and small agricultural enterprises. The government should create awareness or information about micro and small agricultural enterprises for the youths.