Impact of Dairy Enterprises on Employment Creation and Income Generation in Hadiya Zone, Ethiopia

Lemma Zemedu,Abriham Ababiya,Jema Haji,Endrias Geta

doi:10.5539/sar.v8n4p72

Abstract

This study sought to examine the impact of dairy enterprises on employment creation and income generation in Hadiya zone, Ethiopia. Data were collected from 385 randomly selected household heads, three FGDs participants and five key informants&rsquo; interviews. Data were analyzed using descriptive statistics and propensity score matching. The survey results showed that out of 385 sampled household heads 126 (32.5%) were members and the remaining 259 (67.5%) were non-members of micro and small dairy enterprises. The propensity score matching result shows that being member had significant positive impact on members&rsquo; employment creation and income generation. The result revealed that the membership resulted in average increment of household&rsquo;s annually employment creation by about 4 persons (33.98%) and income generation by Birr 12,339.00 (32.57%). The result showed that membership in dairy enterprises had a significant and positive impact on employment creation and income generation. The impact estimates were found to be insensitive to unobserved selection bias. It is, therefore, essential to expand and strengthen development of dairy enterprises and the membership of households in dairy enterprises to increase employment creation and income generation of members.

Highlights

The government of Ethiopia implements multi-dimensional policies and strategies to ensure rapid and sustainable growth and development in the past three decades through enterprise development
This could be attributed to various reasons, which could be due to the weak economic position of female headed households including limited access and use of information due to cultural barriers in the social position
The result depicts that the household heads found both in member and non-member category were found to be in active working age

Summary

Introduction

The government of Ethiopia implements multi-dimensional policies and strategies to ensure rapid and sustainable growth and development in the past three decades through enterprise development. From those main concrete pillars of economic sectors, enterprises development is one of the most important economic sectors which plays great role in diversifying economic activities and used as a bridge to transform the economy of the country from agriculture to industrialization. The enterprise sector has been considered by academicians and policy makers as an engine of economic growth, poverty reduction, and social development due to its effect on employment and income generation, import substitution, springboard to entrepreneurship and industrialization, base for medium and large industries and distribution of their products through linkage and sub-contracting, and income distributions among different sections of the society (Hailay et al, 2014). Enterprises play key role in stimulating other sectors of the economy such as manufacturing, trade, construction, service and agriculture by increasing productivity through providing inputs and creating demand for outputs (MoFED, 2016)

Methods

Results

Conclusion