FACTORS AFFECTING YOUNG ETHIOPIAN ENTREPRENEURS FOR SUSTAINABLE BUSINESSES IN THE CITY OF ADDIS ABABA

Abstract

Usually micro, small, and medium enterprises (MSMEs) are a basic source of income and employment opportunities for the some of the developed countries, more emphasis has recently been given to those enterprises, and a number of research studies have been conducted. Ethiopia, as one of the Least Developing countries, could also benefit from those MSMEs if the sector is supported enough. Predominantly, this research is conducted to identify the basic determinants of factor affecting Ethiopian young entrepreneur to run sustainable business and to try to develop an entrepreneurial ecosystem mapping to connect those entrepreneurs with the concerned stakeholders, which can contribute to the improvement of the performance of MSMEs. Primary data from randomly selected 250 sample enterprises is analyzed using simple regression, and data collected from stakeholder interviews is analyzed using descriptive analysis to develop the eco- system mapping. Accordingly, administration institutions, such as sub cities, and weredas, financial institutions, such as banks and credit associations, non-governmental organizations, such as world vision, and government organizations are important actors in entrepreneurship in Ethiopia. Finally, the result of the simple regression model indicates that access to finance, training, and raw materials, experience, level of education, and sectoral dummy are statistically significant factor affecting Ethiopian young entrepreneur to run sustainable business. Based on the results, the researcher recommended the government of Ethiopia give more emphasis to young entrepreneur in different forms, such as providing support in the form of financial, training, market, and raw material linkages.