Determinants of Youth Participation in Agricultural Enterprises as Job Creation Works

Evidence from Southern Ethiopia

Abstract

Rural job creation works were started in southern Ethiopia by participating youth in different agricultural enterprises in the form of groups and cooperatives by 2015. Even though agriculture has huge potential to absorb a large number of people, youth tend to stand away from the sub-sector. So, this study was intended to assess factors affecting youth in participation of micro and small agricultural enterprises in selected districts of Southern Ethiopia. Mult-stage sampling techniques were applied to select 160 sampled youths and the probit model was applied to analyze the collected data. Seasonality of agricultural income, fear of the risk of agriculture, lack of initial capital, the problem of getting the group members and ineffectiveness of previously grouped enterprises are the main factors hindering youth participation in the agricultural enterprise as rural job creation works. The probit model result also shows that education level, credit getting bureaucracy, lack of initial capital, fear of being group and risk and uncertainty and lack of working place are adverse determinants of youth participation. Hence, monitoring of the organized enterprises at the ground before credit disbursement and division of credit individually, and introduction of agricultural insurance through these agricultural enterprises are suggested. Finally, the policy issue should revisit the initial saving percentage, interest rate, payback period to increase youth participation.