Dreams to Reality: Unraveling the Secrets of Youth Entrepreneurship in Adama C

Abstract

Youth unemployment is becoming a serious concern in the urban population of Ethiopia. With a focus on turning
dreams into tangible ventures, the research aims to uncover the secrets behind the success of young entrepreneurs and
identifies the main factors confining youth from self-employment. Utilizing primary data collected at the woreda level,
the study analyzes both qualitative and quantitative data from a sample size of 384 respondents. Through factor
analysis, composite variables are created to examine the impact of both local and youth-specific factors attributable to
youth entrepreneurship. Finally, Poisson and Tobit regression models are used to estimate the likelihood of youth
starting their own business and its determinant factors. The findings shed light on the pivotal role of entrepreneurial
learning, network, & support system, family status, opportunity constraint, and dissatisfaction with current
employment opportunities in driving youth towards self-employment. In the pursuit of self-employment in the city,
personal factors hold greater significance than the business environment like macroeconomic and socio-political
conditions of the country. Men are found to be voluntarily self-employed and choose self-employment as a career path
while women engage in self-employment out of necessity rather than choice. The majority of women are largely
involuntary and unemployed. Age prevails “U-shaped” self-employment tendency among youth. There is a low
correlation between education and self-employment, youth with degrees and above have shown a lower tendency of
starting their own business than their counterparts. The path to youth self-employment in Adama City involves
interconnected stages: personal development, technical development, provision of economic incentives, institutional
development, and market linkage. When these factors align, young individuals can turn their dreams into reality and
contribute to the city's economic prosperity. This research provides valuable insights for policymakers, highlighting the
need for targeted support and policies to nurture and empower young entrepreneurs