Factors and Motives of Unemployed Youths Not to Engage in Own Business

The Case of South Wollo Zone Districts, Amhara, Ethiopia

Abstract

Economic development is achieved when the resources of a given country is being used efficiently and effectively. One of those basic resources of a country is its people. A major problem that every country faced is shortage of employment opportunity. Specifically, unemployment is a headache or chronic problem in under developed countries as well as world politicians and it keeps part of the labor force out of production and, persistent, skills and knowledge are likely to decrease. Therefore, this research paper aimed to identify the factors and motives of unemployed youths in having their own business in Haik, Mekaneselam; Aqista and Wereilu Districts at South Wollo Zone, Dessie, and Amhara, Ethiopia. The targets for the research were 361 youths who have a certificate, diploma, degree and above but stayed unemployed for six or more than six months. Closed questionnaires were used to gather the data from the unemployed youth. Responses were elicited using snowball sampling technique to facilitate the data processing and analysis activity. The analysis, which is recognized and cited by respondents, indicated that lack of intention to start own business is the major factor followed by lack of starting capital, lack of experience, and fear of risk of failure. The lesser attractiveness of business environment and social values are the next important factors which force the youths to spend much time for searching for a job instead of starting own business. So that, the paper suggested that government or other institutions should support potential youth entrepreneurs to inspire of starting a business and should pay close attention to the pull and push factors.