Abstract:
The purpose of this study is to examine the Contribution of Micro and Small Enterprisers mainly the
metal and wood work enterprises to the socio-economic improvement mainly in income creation,
employment opportunity and social capital development to youth in Jimma City. The primary and
secondary data were used while questionnaire, key informant interview and field observation were
the main data collection instruments on respondents characteristics and socio-economic concern.
For data analysis, descriptive statistical tools such as, frequency distribution and percentages
were used to describe the respondents’ responses. The study revealed that the young MSE
owners of age below 30 constitute the majority constituting 55.17 percent. The 65.52 percent of
general metal and woodwork established in the years 2000 to 2006 to get income to their
sustenance and other family expenditures as 47.12 percent were dependent on their families
before joining the current enterprises. The majority owners’ annual average of income is
between 15,001 to 25,000 birr. Most incomes obtained by the MSE were allocated for the
purpose of conception, education fee, and for saving. Generally, there is a tendency of yearly
growth in average number of employee. The response for social capital like willingness to help
each other, share skill and knowledge is very high, moderate and low by 60.92%, 3678% and
2.30% of respondent respectively. Both government and private agencies need assist the youth
while starting business privately or in group by creating friendly environment for them avoiding
major bottlenecks among micro financial institutions, and MSE sectors since both institutions
have a great role in reducing unemployment problems.
