EFFECTIVENESS OF RURAL JOB OPORTUNITY CREATION PACKAGE IN THE CASE OFMAREKO WEREDA, GURAGE ZONE

Abstract

Creating job for jobless or unemployed youth is an activity that engages the youth to new job and gives to solution for rural youth unemployment. The rural job opportunity creation package was a package that started in 2012G.C. The package applied for 6 years by budgeting 10648273.5 ETB as a revolving fund by targeting all the 25 rural kebele jobless and land less youth to participating the locally identified income generating activities like off farm and on farm IGAs. According to the wereda youth and sport office report 485 enterprises or 2951 individuals are participated in the package. From the total population of 485 enterprises the study was selected 144 enterprises by applying Yamaneh / 1967/ formulas. The research used explanatory type of research, relevant data collected from primary and secondary data sources. The study used different sampling techniques like systematic random sampling, simple random sampling, stratified sampling, probability sampling techniques. The major activities of the package were creating continuous and sustainable job for the rural jobless youth by providing different supports. The major focus of the study was assessing the effectiveness or continuity of package participants, how the profitable enterprise becomes profitable, how those create their economic capacity, and identifying the major challenges to implement the package was focus areas of the study. Data’s was analyzed by using logit model to test the probability to contribute independent variables to those effective business enterprises. From the result the study was identified among the total targeted enterprise 82 enterprises was continuously run their business, 88 enterprises was profitable with their selected business, and 84 enterprises able to create additional asset or capacity. The result of logit model indicates business profitability, training, saving habit, provision of working place, economic capacity improvement, guiding with BP, are positively probability to increase business effectiveness or continuity. The other result enterprise to become profitable, appropriate IGAs selection was highly contributed for their profitability, to improve economic capacity, saving was primarily identified. Finally the study identified fluctuation of market price and lack of working place as major challenges to implement their business.