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Labor Market Assessment of the Pastoralist Areas in Ethiopia USAID Pastoralist Areas Resilience Improvement through Market Expansion (PRIME) project September 2014 Addis Ababa, Ethiopia

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1

Labor Market Assessment of

the Pastoralist Areas in Ethiopia

USAID Pastoralist Areas Resilience Improvement through Market Expansion (PRIME) project

September 2014

Addis Ababa, Ethiopia

2

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY…………………………………………………………………..........6

II. BACKGROUND ………………………………………………………………………………….7

2.1 Objectives ………………………………………………………………………………...7

2.2 Context……………………………………………………………………………………8

2.3 Geography ………………………………………………………………………………..8

III. METHODOLOGY ………………………………………………………………………………..9

IV. KEY FINDINGS AND DISCUSSION…………………………………………………………..11

4.1 Business and Employment Landscape in PRIME areas…………………………………11

4.1.1 Economic sectors in the PRIME target areas……………………………….12

4.1.2 Business and Employment Landscape in Afar Zone 3……….…………….12

4.1.3 Business and Employment Landscape in Southern Oromia, Borena and Guji

zones………………………………………………………………………..13

4.1.4 Business and Employment Landscape in the Somali region……………….13

4.2 Legal status of businesses………………………………………………………………..14

4.3 Gender and the labor market……………………………………………………………..15

4.4 Duration of employment…………………………………………………………………15

4.5 Unpaid family members working for businesses………………………………………...16

4.6 Wage rates in the labor market…………………………………………………………..16

4.6.1 Permanent wage workers…………………………………………………...16

4.6.2 Daily laborer wages…………………………………………………………17

4.7 Qualifications of employment……………………………………………………………17

4.7.1 Criteria for hiring…………………………………………………………...17

4.7.2 Skills sought by employers…………………………………………………18

4.8 Challenges faced by TOPs……………………………………………………………….18

4.8.1 Capacity of the labor market in the PRIME target areas……………………19

4.8.2 The labor market in Afar Zone 3……………………………………………19

4.8.3 The labor market in Southern Oromia, Borena and Guji zones…………….20

4.8.4 The labor market in the Somali region……………………………………...20

4.8.5 The labor market and access to finance…………………………………….21

4.8.6 Lack of awareness of labor market opportunities…………………………..22

4.8.7 Impression of TOPs by potential employers is negative in some places…...23

4.8.8 TOPs lack appropriate skills required by the existing job market………….24

4.9 Composition of employees in existing businesses by skill set…………………………..25

4.10 TOP employment trends………………………………………………………………..25

4.11 Opportunities for TOP employment……………………………………………………26

4.11.1 Opportunities for TOP employment in Afar Zone 3……………………….26

4.11.2 Opportunities for TOP employment in Southern Oromia, Borena and Guji

zones………………………………………………………………………..26

4.11.3 Opportunities for TOP employment in the Somali region…………………27

4.12 Training opportunities offered by employees………………………………………….27

4.13 Trends in TOP behavior………………………………………………………….…….28

4.13.1 Trends in TOP behavior in Afar region Zone 3……………………………28

4.13.2 Trends in TOP behavior in Southern Oromia, Borena and Guji zones…….29

4.13.3 Trends in TOP behavior in the Somali region………………………………29

4.14 Employment opportunities for TOPs…………………………………………………...29

V. RECOMMENDATIONS……………………………………………………………….30

VI. BEST PRACTICES & LESSONS LEARNED………………………………………...32

VII. ANNEXES……………………………………………………………………………...33

3

LIST OF TABLES AND CHARTS

Tables

Table 1: Pastoral Region and their context …………………………………………………………….8

Table 2: Percentage of businesses by size (based on the number of permanent employees) .…….…11

Table 3: Percentage of businesses legally registered…….…………………………………………….14

Table 4: Percentage of temporary employees in PRIME target areas…………………….…………...16

Table 5: Percentage of most important criteria businesses use to hire employees…………………….18

Table 6: Percentage of the source of finance for businesses that have access to finance ……………..21

Table 7: Percentage of the most important recruitment channels………………………………………22

Table 8: Percentage of the most important perception of TOPs by businesses ……….……………….23

Table 9: Percentage of composition of staff by skill set ……………………………………………….25

Table10: Percentage of types of trainings provided by employers………………….…………………28

Charts

Chart A: Business sectors in Afar Zone 3………………………………………………………………..12

Chart B: Business sectors in Borena and Guji zones……………………………………………………..13

Chart C: Business sectors in the Somali region…………………………………………………………..13

Chart D: Business sectors in Dire Dawa………………………………………………………………….14

Chart E: Percentage of unpaid family workers……………………………………………………………16

Chart F: Challenges faced by employers when hiring…………………………………………………….19

Chart G: Percentage of businesses that have received access to finance………………………………….21

Chart H: Percentage of enterprises that plan to hire in the future…………………………………………30

Annexes

Annex I: Existence of business by type and number of years in three clusters………………………….33

Annex II: Business Survey Tool…………………………………………………………………………36

Annex III: Survey Details ………………………………………………………………………………..37

Annex IV: USAID PRIME Enterprise / Institution Questionnaire………………………………………44

4

ACRONYMS

CAHW Community Animal Health Workers

CBE Commercial Bank of Ethiopia

EMD FLA Economic and Market Development Field Level Advisor

EMD TSU Economic and Market Development Technical Support Unit

FGD Focus Group Discussion

FtF Feed the Future

GCC Global Climate Change

IIF Innovation and Investment Fund

IR3 Intermediate Result 3 Improved Alternative Livelihoods

KI Key Informants

KII Key Informant Interview

LKM Learning and Knowledge Management

LMA Labor Market Assessment

MC Mercy Corps

NBE National Bank of Ethiopia

NGO Non-Government Organization

OSC One Stop Centers

PRIME Pastoralist Areas Resilience Improvement through Market Expansion

PVP Private Veterinary Pharmacy

SNNPR Southern Nation and Nationalities People Region

SPSS Statistical Package for Social Science

TOPs Transitioning Out of Pastoralism

TEEMA TOPs Employment and Entrepreneurship Market Assessment

TVET Technical Vocational Education and Training

USAID United States Agency for International Development

5

ASSESSMENT TEAM

The LMA was overseen by the PRIME management team, including Karri Goeldner Byrne, Chief of

Party. Key staff that participated in the LMA include:

Netsaalem Bahiru, PRIME IR3 Leader

Mahlet Seifu, PRIME IR3 Deputy

Bethel Tsegaye, PRIME IIF Manager

Ted Volchok, EMD TSU

Tara Noronha, EMD TSU

Maryan S. Ali, PRIME EMD FLA

Abdikadir Jemal, PRIME EMD FLA

Zerihun Yemanebirhan, PRIME EMD FLA

Faysal Farah, PRIME EMD TL

Mourad Hentati, Program Manager- MC Tunisia

Robert Okello, Team leader MC- Uganda

Mohamed Harsi, Project Manager MC- Somalia

Lekan Tobe, Team Leader- MC Nigeria

Andualem Firdawoke, PRIME AISDA staff

Nuru Ahmed, PRIME CARE staff

Dereje Regassa, PRIME SOS Sahel staff

Sara Solomon, PRIME CARE staff

Kumera Gadisa, PRIME LKM Specialist

AISDA, CARE, and SOS Sahel are PRIME’s consortium partners.

Report written by:

Netsaalem Bahiru Gebrie and Lisa Ku

6

I. EXECUTIVE SUMMARY

For the thousands of people transitioning out of pastoralism (TOP), either by choice or necessity,

activities under USAID’s Pastoralist Areas Resilience Improvement through Market Expansion project

(PRIME)’s Intermediate Result 3 (IR3) will significantly improve alternative livelihood options through

essential skills transfer including literacy and numeracy, basic employability skills, and entrepreneurship

and technical training. This purpose of this Labor Market Assessment (LMA) is to drive and inform IR3

interventions and partnerships by uncovering existing opportunities, potential opportunities, skills in

demand by the job market, as well as the constraints and challenges that individuals, specifically

individuals (specifically TOPs), face as they look for sustainable economic opportunities and alternative

livelihoods.

The LMA covered all PRIME target areas in the Afar, Oromia, and Somali regions and in Dire Dawa

utilizing three key tools – group discussion interviews with the TOPs, interviews with key stakeholders,

and business surveys. The LMA team also analyzed prior baseline studies and reports to enhance data

analysis.

The LMA found that the overall business landscape in the PRIME target areas remains relatively young.

The majority of businesses are micro or small, with the exception of Dire Dawa. While there is demand

for employees in various sectors, employers are seeking to hire individuals with related work experience

or education. In addition, they are also looking for employees that have customer service skills. Most

employers rely on word of mouth and recommendations from their network. Findings also show that there

is divided opinion among businesses about TOPs. The majority of businesses in Dire Dawa, Afar Zone 3

and Guji perceive TOPs as lacking in education, skill and experience. However, in the Somali region, the

majority of businesses surveyed thought TOPs were committed and hard working.

For the TOP seeking a job, they faces many hurdles – they lack the skillset required by employers, lack

support in transitioning and integrating into peri-urban or urban areas, lack knowledge of job

opportunities, lack of positive perception by employers, and lack access to finance (this is especially true

for female TOPs). TOPs are in need of professional and life skill capacities that help make them more

employable. While there are opportunities for TOPs to work in the livestock trade and production and

crop production sectors, some TOPs are not willing to work in these sectors and there are not enough

opportunities for all TOPs to be absorbed into these sectors.

Access to finance remains a major challenge for both employers and employees. Employers who want to

expand their businesses lack access to the necessary credit or financial product they need, which hinders

their ability to grow and hire additional employees. TOPs, who are entrepreneurial in mindset, also have

barriers to accessing finance. Most of them do not have assets or savings to borrow, do not have the

financial literacy to understand the system, or do not have access to a financial institution or group.

Based on these key findings, PRIME is able to facilitate necessary interventions broken down by target

zones. The LMA team has identified short to medium-term and medium to long-term activities which

include: creating job-matching mechanisms between employers and TOPs; strengthening TVETs and

other training centers; supporting women entrepreneurs and job seekers through various mechanisms;

providing technical and life skill trainings for TOPs; facilitating increased access to finance by supporting

financial institutions in outreach and product development; providing life skill support to help TOPs

integrate; strengthening market linkages; and attracting and leveraging investment. These activities will

not only help strengthen the capacity of TOPs to seek and gain employment, but they will also increase

alternative livelihood options in PRIME target areas.

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II. BACKGROUND

PRIME is a five-year, USAID-funded initiative designed to support resilience among pastoralist

communities in Ethiopia in targeted areas in the Afar, Somali, and Oromia regions, and thus enhance

prospects for long-term development in Ethiopia’s dryland landscape where the pastoralist livelihood

system prevails. Financed through Feed the Future (FTF) and Global Climate Change (GCC) facilities,

the project is designed to be transformative, innovative and achieve scale through market-driven

approaches to livestock production and livelihood diversification that simultaneously support dryland

communities to adapt to the changing climate. The project has five main Intermediate Results (IRs) that

feed into the overall goal of increasing household incomes and enhancing resilience to climate change

through market linkages, with IR3 specifically targeted at improving alternative livelihood options

through essential skills transfer including literacy and numeracy, basic employability skills, and

entrepreneurship and technical trainings.

The LMA seeks to drive and inform IR3 activities by identifying skills in demand in the job market and

potential employment opportunities, as well as the constraints and challenges that individuals, specifically

individuals transitioning out of pastoralism, face as they are looking for sustainable work. Understanding

that PRIME’s livelihoods activities must be relevant to realities on the ground, the project employs a

market-driven approach throughout the duration of the project. This assessment helps to:

identify local opportunities for employment and self-employment and to match those to

PRIME target beneficiaries including people transitioning out of pastoralism (TOPs)

appropriately and accordingly;

promote economic or livelihoods activities, including vocational training and skill building

courses, by determining specific market needs as well as associated employment

opportunities; and

facilitate increased investment in non-livestock sectors to generate increased formal

employment opportunities for trained and motivated individuals.

The findings from this LMA will guide us to develop livelihood activities that will have the greatest

impact on pulling TOPs out of poverty and into sustainable income generating activities. Armed with

skills and knowledge, male, female, young and disabled TOPs will be able to access income opportunities

through sustainable small and microenterprise development by accessing formal and informal financial

services and business support services at the local level.

2.1 OBJECTIVES

The primary objectives of the labor market assessment are as follows:

• Identify the most promising employment and self-employment opportunities for TOP individuals

in three regions – Oromia, Somali, and Afar, and the autonomous city of Dire Dawa. For the

purpose of this assessment we have included the Dire Dawa analyses under the Somali region.

• Identify high potential growth sectors, hiring trends, and forecasts

• Determine specific technical and soft skills required by the labor market

• Analyze the constraints of the current labor market system for TOP individuals, and those related

specifically for females

• Develop livelihoods strategies and recommendations for TOP individuals for the short, medium,

and long-term

• Based on this LMA, identify best practices and systems for iterative market research

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2.2 CONTEXT

PRIME operates in three geographic regions –Oromia, Somali, and Afar including Dire Dawa, a special

administrative zone -- which have vastly different opportunities for sustainable livelihoods. Although

livestock is one sector that is common in all of PRIME’s main areas of operations, the LMA sought to

identify concrete opportunities within other sectors and market systems as alternative livelihoods for

TOPs. We understand that TOPs in the Afar region may face different economic opportunities and

constraints than TOPs in the Somali region and the LMA aims to understand how PRIME project will

differ in each region as it relates to local labor market demand. To get the best analysis and data, this

LMA employed assessors from each geographic region drawing upon their familiarity with the local

language and context.

2.3 GEOGRAPHY

PRIME operates across a wide swath of woredas

in three strategic clusters (Afar, Oromia and

Somali Regions), including Dire Dawa. PRIME

activities target a range of rural, urban and peri-

urban settings that are home to pastoralists,

agro-pastoralists and TOP households or

individuals migrating to towns and cities.

However, despite similarities in terrain and

livelihood options, pastoral Ethiopia is not

monolithic, and has varying levels of

government capacity, private-sector activity and

environmental conditions. The LMA collected

information to understand the differences of

livelihood opportunities in each region.

Table 1: Pastoral Region and their context

Cluster Context

Afar

Possesses an important livestock trade route between Ethiopia and Djibouti for access to the Red Sea. Mobility, necessary due to

the exceedingly high temperatures (up to 48° Celsius), is curtailed by: invasion of Prosopis juliflora, and Parthenium, four large

protected areas (national parks and conservation areas) and the establishment of large commercial farms (especially sugar farms,

irrigated by Awash River). New farms provide employment opportunities but severely inhibit mobility and water access. There are

several GOE Technical and Vocational Education and Training (TVET) centers in Afar, and the Werer Agricultural Research

Center. There are two banks (Commercial Bank of Ethiopia and Lion International Bank), and is one microfinance institution (Afar

MFI). Between Afar and neighboring Somali Issa there is violent and ongoing conflict over access to natural resources.

Oromia/

Southern

Somali

The main livestock export route to Kenya, with a vibrant camel and cattle trade. Closest geographical proximity to terminal

markets (Dubluk, Awassa, Nazareth) where livestock is sold to exporters and processors. A main provider of Boran cattle, prized

on the international market. Three private veterinary pharmacies (PVPs) in Moyale (one run by a community animal health worker

(CAHW) association). Financial service providers are banks, including the Commercial Bank of Ethiopia, Oromia International

Bank, Cooperative Bank of Oromia, and several MFIs, including the Oromia Credit and Savings Share Company. Around the

border areas between the regions, there is frequent conflict due to increased competition for resources, arms proliferation, lack of

sustainable economic opportunities, identity politics and weakening local governance structures.

Northern

Somali

The main corridor for livestock export to Gulf countries is via Somaliland, accounting for the majority of the informal export trade,

which the government has secured as much as possible to discourage informal trade. Poor quality veterinary drugs are imported

from Somaliland and available on the black market in most areas. PVPs sell veterinary drugs (purchased from Addis Ababa).

Financial services available include banks (CBE, Wegagen, Awash and Nib), two microfinance institutions (Somali Microfinance

Share Company and Rays MFI) and Hawalas. There are two GOE TVET centers in Jijiga, and four One Stop Centers, offering

government-funded support to entrepreneurs and job seekers. Conflict results from competition over increasingly scarce natural

resources, heightened by the rise in sedentary agriculture.

9

III. METHODOLOGY

The PRIME LMA is built on previous studies undertaken by PRIME including the TOP-focused

Employment and Entrepreneurship Market Assessment (TEEMA). Furthermore, it is supported by several

value chain assessments that were conducted during the start-up phase of the project. The LMA employed

a blend of qualitative and quantitative information to ensure that we analyzed the holistic livelihoods

landscape, which included the perspectives of local employers and job seekers. The LMA survey tools,

focus group discussions, and key informant interviews were conducted in the month of April 2014.

Constraints and Limitations: The PRIME LMA is not a comprehensive labor market study for all of Afar,

Oromia, and Somali regions. The methodology, tools, and sampling are purposively PRIME-focused and

were conducted in the PRIME target areas. For example, some businesses were not selected randomly for

the business survey tool, but chosen ahead of time. Therefore, findings from the assessment should not be

generalized to the regions as a whole, but should be viewed from the PRIME project lens. Furthermore,

the PRIME LMA acknowledges that because the selection of some businesses was targeted, some of the

sampling may be partial.

Labor Market Assessment Tools

The assessment used multiple tools in order to achieve the outlined objectives as described below.

1) Business Survey Tool (quantitative)

This tool captured local businesses’ perceptions of TOPs; determined opportunities for mentorships,

apprenticeships, and job placements; gathered information on self-employment challenges including

constraints to starting a business; identified skills (both soft skills and technical skills) and characteristics

most desired by employers; and identified high potential growth sectors. The business survey is a

versatile tool that captured information from small enterprises, as well as mid-large size firms.

The tool was developed using the International Labor Organization’s School-to-Work Transition survey

as a guide, along with past Mercy Corps and PRIME surveys. It was administered in all three geographic

areas, with testing and refinement during the week of 31 March 2014.

Sampling. This assessment was tailored specifically to PRIME’s needs, hence specific businesses were

selected by PRIME staff to participate in the survey, in addition to the additional businesses that were

selected and surveyed during the assessment. In populated areas where PRIME currently has a strong

presence, businesses were selected from the project’s existing private sector database. The PRIME team

had tentatively planned to administer the survey to 465 businesses, however, only 400 businesses were

surveyed because some of the businesses weren’t available or couldn’t be located. Businesses were

interviewed individually and categorized based on their company size – micro, small, medium, and large

enterprises, as defined in the assessment below.

2) Focus Group Discussion (FGD) Guide (qualitative)

The goal of the FGD was to assess TOPs’ perceptions of their current skills, constraints, and opportunities

for economic engagement. The FGD was used to determine any gaps in perception between TOPs and the

larger labor market, including perceptions of TOPs as employees, TOPs attitudes towards employment,

etc. Understanding how TOPs view their current economic conditions is important to develop strategies

for improving their livelihoods. The FGD tools were developed using questions tested in previous Mercy

Corps’ LMAs. The tools have been adapted to ensure they address PRIME needs, with consideration for

TOPs. The FGD was administered to male and female groups separately to ensure that the environment

was conducive for comfortable discussion and sharing.

10

Sampling. A total of 12 FGDs were conducted – one male and one female FGD per geographic area. The

male and female FGDs sampled both youth and adults. The female FGDs were facilitated by female staff

and enumerators.

3) Key Informant Interview Tool (qualitative)

To determine the larger ecosystem and enabling environment for TOP employment and self-employment,

as well as gather rich qualitative data on opportunities for project linkages, the assessment team

developed tailored, supplemental Key Informant Interview Tool (KII) that was administered to 20

targeted stakeholders in each region. These targeted stakeholders included:

Micro and small enterprise (MSEs)

development agencies/bureaus

Technical and vocational education training

(TVETs) centers

Labor and social affairs office

One stop services centers

Micro finance institutions (MFIs)

Chamber of commerce

Crop, livestock and pastoral area

development offices

Cooperative Promotion Bureau

Trade and investment offices

Construction and urban development offices

Municipalities/ city administration

Background Documents: The following documents were reviewed to develop the methodology and in preparation for the PRIME

LMA tools:

Transitioning Out of Pastoralist Employment & Entrepreneurship Market Assessment (TEEMA),

PRIME project, 2013

PRIME Request for Application, 2012

PRIME Baseline Survey Enterprise / Institution Questionnaire, May 2013. This survey was conducted

in all the PRIME target areas except Dire Dawa. Institutions surveyed included 56 micro businesses,

33 small businesses, 25 medium enterprises, and 6 large firms.

Data Handling and Analysis Data entry and data analysis was completed by PRIME IR3 staff with assistance from the Learning and

Knowledge Management (LKM) staff and Economic and Market Development Technical Support Unit

(EMD TSU). SPPS software was used for data analysis.

11

IV. KEY FINDINGS AND DISCUSSION

The analysis and findings of the LMA are presented in five sections. The LMA focused on the private

sector labor market, which includes all private sector activities, jointly owned ventures, and state-owned

run enterprises such as factories. It did not explore public sector jobs such as government employment.

The LMA investigated the private sector landscape, employers’ perception regarding TOPs, challenges

faced by TOPs, and different requirements and skills to obtain employment; and analyzed the overall

labor market opportunities and challenges. The report also provides recommendations of activities and

interventions, based on the LMA, to improve the skillset of TOPs, integrate them into the labor market,

and to make them more employable in the peri-urban and urban labor markets.

4.1 Business and Employment Landscape in PRIME target areas

The business and employment landscape is diverse in the PRIME pastoralist areas and includes various

private sector opportunities. Private businesses range from micro to small to medium to large enterprises.

For the PRIME LMA, private businesses are classified into size categories and defined by the below:

Micro enterprises: firms that have 10 employees or less

Small enterprises: firms that have between 11 to 20 employees

Medium enterprises: firms that have between 21 to 50 employees

Large enterprises: firms that have more than 51 employees

For the purposes of being able to analyze the data in smaller subsets, the LMA also split the medium

enterprises into two groups – 21 to 30 employees and 31 to 50 employees.

Table 2 below shows the percentage of permanent employees per business based on our assessment

sampling of the PRIME target areas. Based on the data presented below, it is clear that the majority of

businesses are micro and small enterprises in the PRIME target areas. The only target area that possesses

a majority of large businesses is Dire Dawa (60%). This means that most employment opportunities are

with micro and small enterprises except in Dire Dawa.

Table 2: Percentage of businesses by size (based on the number of paid permanent employees)

Percentage of businesses by size (based on the number of

permanent employees)

Region Zone 0-10

micro

11-20

small

21-30

medium

31-50

medium

>51

large

Dire Dawa Dire Dawa 15 20 5 60

Somali

Fafan 76 12 5 7

Jarar 91 9

Siti 68 19 6.5 6.5

Liben 29 57 7 7

Afar Zone 3 50 12 12 8 18

Oromia Guji 78 17 1 4

Borena 62 28 4 2 4

12

4.1.1 Economic sectors in the PRIME target areas

The majority of the businesses in the PRIME target areas fall under the service, manufacturing, and

commercial farm sectors, including crop farming, vegetable planting, tree seedling, vet input supply,

manufacturing, retail/wholesale trade, construction, hotel and restaurant, transportation, and private

employment agency (see annex I). In the Afar Region, the hotel and restaurant service is the leading

economic industry, followed by crop farming, retail trade and manufacturing. In Southern Oromia,

hospitality services, manufacturing/ processing and retail trade are the most important business sectors. In

the Somali region, retail trade, the hotel and restaurant industry, and manufacturing/processing sectors are

the most important and widespread, whereas there is little or no activity in the transportation, education,

and employment agency sectors. Based on these finding, strategic interventions need to be directed to

strengthen the critical labor sectors while simultaneously supporting opportunities in the “untouched”

sectors of vocational education and transportation that can lead to increased job opportunities. It was

encouraging to learn that many new businesses have incubated in the last three years and that out of the

385 businesses contacted in the eight major zones across the three regions nearly 34% of the businesses

have existed for more than three years.

4.1.2 Business and Employment Landscape in the Afar Zone 3

PRIME’s target woredas in the Afar region

include Awash Sebat Killo and Awash Arba.

The LMA team found that the private

business sectors in these areas are extremely

diverse with large concentrations of micro,

small, and medium businesses. There are

very few large businesses with high

employment potential. The predominant

sectors and activities are in the hotel and

restaurant, retail trade, crop farming,

livestock rearing, manufacturing/processing

and construction industries, as seen in Chart

A. In Awash Arba, in particular, the private

sector is not well developed, and some

businesses are mainly income-generating

activities for the owners. In Awash Sebat Killo, the majority of private economic activities are small

businesses that are mostly family-owned and managed. Businesses include retail trade, mini-

supermarkets, grocery shops, grains and spices shops, building construction materials and hardware

shops. In addition, there are a number of restaurants, food shops and hotels/lodges, technical and

engineering workshops such as welding and fabrication workshops, carpentry and furniture production

workshops, and block making factories in Awash.

There are several informal micro businesses operating in Awash, including motor mechanic shops, barber

shops, coffee and tea cafes, Coca-Cola mini-depots, petroleum products marketing stations, and textile

and clothing shops. A few medium to large businesses also exist, such as cotton ginneries, a livestock

exporter, and a marble and ceramic factory.

In the other woredas of Afar Zone 3, the private sector mainly consists of agriculture, such as irrigation

based cotton and sesame production. The workforce in agriculture is primarily from SNNPR and the

southern Wollo areas. There are also small hotel and restaurant businesses that typically serve the local

community. The medium and large businesses in the area are owned by non-Afari people coming from

Chart A: Business sectors in Afar Zone 3

13

the highland areas. The private sector often complains of a weak business enabling environment, which is

unattractive and serves as a disincentive for investment in these areas.

4.1.3 Business and Employment Landscape in Southern Oromia, Borena and Guji zones

The private sector in Southern Oromia is

mainly dominated by small and medium

businesses engaged in the service industry,

manufacturing and processing, and retail

trade. There are a few factories and

processing plants such as flour factories.

Most businesses are running traditional

family-owned operations that do not absorb

many employees beyond members of the

same family. When businesses do recruit,

they depend mainly on their network of

family and friends. A major challenge to the

private sector in this area is the weak

linkage between most businesses and

financial institutes. Access to appropriate

financial products is a limiting factor for

business expansion in this region. FGDs

indicated that there were also opportunities in livestock trading and rearing, poultry and crop production.

4.1.5 Business and Employment Landscape in the Somali Region

Jijiga, the capital of provincial administration of

the Somali region, is booming with economic

activity, such as construction of new hotels and

restaurants and commodity and live animal

trading. Awbare and the Fafan zone (where

Jijiga is located) on a whole also have a

growing private sector that includes many

small-scale businesses. Togwajaale, a border

town between Ethiopia and Somalia, is active

with business transactions on either side of the

border. The private sector in the Siti zone,

especially the Ere woreda, mainly comprises of

small businesses that feature consumer and

agricultural goods.

The private business sector in the Jarar zone is mainly characterized by the dominance of small-scale

businesses and low capacities to consume laborers. Degahbur, a major town in the Jarar zone, has better

infrastructure and stronger economic markets because it has strong linkages to other major towns such as

Jijiga and Kebre Dehar. The majority of businesses are petty trades and informal enterprises and mainly

run by either the owners or family members. Livestock trading is the backbone of the local economy.

There are no large-scale businesses that employ or have the potential to employ beyond their existing

laborers. Only a few businesses in the construction sector, livestock trading, and import and export

enterprises in Degahbur have reported that they employ more than 4 individuals.

Chart B: Business sectors in Borena and Guji zones

Chart C: Business sectors in the Somali region

14

Women are the largest number of petty traders in the Jarar zone and engaged in almost all sectors

including vegetables, food, cereals, meat and livestock fattening and marketing. However, currently the

livestock markets sales are lower than it has been in the past year. Most businesses have complained

about a downturn in sales.

Dire Dawa. In Dire Dawa, there are many

large businesses and factories in the

manufacturing and processing sectors.

There are also a good number of hospitality

enterprises. The larger firms, who are able

to employ more staff, mostly recruit local

employees that are semi-skilled for the job.

Some of the larger businesses have

recruited TOPs through the kebele

administration via recommendations,

especially in the Malka Jabtu areas.

4.2 Legal status of businesses

The PRIME team understands that employment opportunities often arise from the informal and formal

business sectors (there is also the semi-formal sector). PRIME is focused on the formal business sector as

it seeks facilitative interventions that advance legal businesses and sustainable employment opportunities

for TOPs. According to the national government proclamation of commercial registration and business

licensing, “No person shall engage in any commercial activity unless registered in a commercial register.”

To get a better understanding of the legal status of businesses in some of the PRIME target areas, the

LMA surveyed the firms that it contacted and found that the majority of the businesses contacted for the

LMA are registered by the local government. The Liben zone in the Somali region had the lowest

percentage of businesses registered at 87%, which is still a majority. This sets an established working

ground to support legal businesses in the sectors that are creating jobs and employment opportunities.

% of Businesses Legally Registered

Region Zone Yes

Dire

Dawa Dire Dawa 100

Somali Fafan 99

Jarar 98

Siti 100

Liben 87

Afar Zone 3 98

Oromia Guji 97

Table 3: % of businesses legally registered

Chart D: Business sectors in Dire Dawa

15

Borena 100

4.3 Gender and the labor market

When identifying opportunities and challenges in the labor market, it is critical to examine the differences

that male and female TOPs face. For this very reason, we conducted the FGDs in separate gender groups.

The LMA found that males believed they faced the same challenges as females, while females expressed

additional challenges that they faced such as not having assets, not being able to take “any job” (ie.

construction or any heavy lifting jobs), and having more difficulty assimilating. According to the FGD

and KIIQ, the reason for lower female participation in the labor market is because assets such as livestock

fall under male ownership and males can sell these assets and move to search for employment.

Furthermore, females, particularly TOPs, are at a disadvantage because they lack appropriate skills or

because of cultural barriers that prevent them from getting hired.

From the FGDs, the LMA found that youth and adult TOP females are searching for different types of

jobs when they move to the urban areas. Youth are looking for jobs such as tea making, housekeeping,

retail trade shops etc. in bigger urban centers, while adult females prefer to go to the nearest peri-urban or

urban woreda and engage in firewood/ charcoal activities.

Females and males face the same challenges when looking for access to credit for entrepreneurial

activities. Without collateral and /or savings, it is challenging for financial institutions to want to lend to

them. Presumably, if TOPs are integrated into the society, they could join an informal group or they could

start their own VSLA with some training support.

Both also face the same difficulty in possessing relevant work experience or enough literacy skills to

apply for and attend trainings.

4.4 Duration of employment

For this LMA, PRIME analyzed two types of duration of employment – temporary and permanent.

Temporary employment includes anything that is not secure and permanent and could be for the duration

of a day to several months. Based on the survey results, 48% of the businesses in Afar stated that they had

a maximum of 10 temporary employees, which was the lowest of all the PRIME target areas. Fafan and

Jarar zones in the Somali region had the highest percentages at 91% and 95% respectively, as well as

Borena in Southern Oromia, which had 92% of businesses stating that they only hire a maximum of 10

temporary employees. In Dire Dawa, 63% of the businesses stated that they hired a maximum of 10

temporary employees. On the other hand, in Dire Dawa, 31% of the businesses hire more than 51

temporary employees and in Afar Zone 3, 35% of businesses also hire more than 51 temporary

employees.

Most of the businesses that hire temporary employees are in the service and retail industries. During the

business survey, the LMA found through the FGDs and KIIs that respondents indicated that TOPs are not

willing to take temporary labor work, such as construction, commercial farming, and restaurant service

because TOPs consider such jobs as backbreaking or inferior jobs. This poses a challenge as there are

opportunities for temporary work in some of the PRIME target areas. These temporary positions could

help TOPs gain some experience that they need.

16

Table 4: Percentage of temporary employees in PRIME target areas

Region Zone

% of temporary employees (male and female)

# of temporary individuals

0-10 11-20 21-30 31-50 >51

Dire

Dawa

Dire Dawa 63 6 31

Somali

Fafan 91 7 1 1

Jarar 95 3 3

Siti 87 7 3 3

Liben 50 17 8 8 17

Afar Zone 3 48 7 3 7 35

Oromia

Guji 74 9 2 2 13

Borena 92 4 4

4.5 Unpaid family members working for businesses

Based on the LMA data, it was found that the

majority of businesses do not employ unpaid

family members, contrary to the assumptions

prior to the LMA that pastoralist areas,

specifically small businesses, tend to employ

unpaid family members. Dire Dawa (85%) and

Afar (66%), followed by Southern Oromia and

Somali which both had averages of 61%. Most

businesses that do employ unpaid family

members, have mostly around 1 to 5. The

responses did not catalogue the age of the unpaid

family members and some unpaid family

members could have been children. According to

the market observations and reflections of two

FGDs, the majority of the businesses that do employ family members compensate them.

4.6 Wage rates in the labor market

Wage rate is one of the major determining factors for an employee to be attracted to a certain job, hence

the LMA analyzed the entry-level wage/salary for permanent and temporary workers in the assessment

areas.

4.6.1 Permanent worker wages in ETB

Chart E: % of Unpaid Family Workers

17

According to the LMA findings, the range of salary for a permanent employee (typically in the

manufacturing and processing sectors), varies widely from less than 500ETB to more than 3000ETB per

month. The majority of the businesses in the hospitality and transport sectors pay a minimum entry-level

salary of less than 500ETB per month. On a whole, wholesale trade and construction sectors mainly pay

starting salaries of 1001ETB to 1500ETB. Of all the sectors, the highest paying starting salary is in the

retail sector. Overall the manufacturing / processing and retail trade sectors in the Jarar Zone in Somali

has the highest paying starting salary opportunities at 3001ETB to 5000ETB. The Liben Zone in Somali

had the lowest entry-level salaries – starting at 200ETB per month. This shows that within a region the

salaries can vary greatly. These entry-level salaries are relatively equivalent to salaries in the public sector

for a low-level, semi-skilled proffesional.

Easy opportunities for TOPs such as crop farming (mostly only available in the Siti and Afar Zone 3

zones) and livestock rearing / fattening had starting salaries that were lower and range between 0ETB to

1500 ETB. In livestock trade, the Liben and Fafan zones in the Somali region had the highest starting

salaries, whereas in the Oromia region zones and the other Somali region zones have a lower starting

salary from 0ETB to 1000ETB.

4.6.2 Daily laborer wages in ETB

The result of the LMA depicted that minimum entry-level wages for daily casual work varies from place

to place and by the type of work. In the assessment areas, daily wage rate ranges from less than 30ETB to

200ETB. The majority of businesses in Dire Dawa, Jaran, Siti, Afar Zone 3, Borena and Guji pay a

minimum wage of less than 30ETB for entry-level employees, while some businesses pay a wage rate of

31ETB to 60ETB in these same areas. In the Jarar, Fafan and Liben Zones of the Somali regions there are

a significant number of businesses that pay up to 200 ETB per day for casual laborers.

The livestock trade sector in the Fafan zone pays the highest for daily laborers from 121ETB to 201 ETB.

Wholesale trade and construction across all the regions pay higher salaries, especially in the Fafan zone

ranging from 91ETB to 121ETB for daily work. Crop farming, vegetable / fruit/ tree nursery,

manufacturing / processing, and the hospitality businesses pay the least for daily laborers at less than

31ETB a day. Only businesses in the Siti zone said that they paid daily laborers for livestock rearing and

fattening at around 121ETB to 201 ETB per day.

4.7 Qualifications for Employment

In the PRIME target areas, like all other parts of the country, employees must fulfill employment

qualifications. The employers interviewed mentioned that the most important requirements when looking

to hire are related skill sets, prior working experience, basic business skills, and a positive attitude.

Through the quantitative business survey, FGDs and KIIs, the LMA captured information to explain what

criteria and skills employers in the PRIME areas are looking for in hiring employees

4.7.1 Criteria for hiring

To determine the most critical factors for employment, the LMA asked businesses across the PRIME

target regions to rate what they considered most important when hiring – years of experience, level of

education, sex, language, personal connections or references or personal skills and good behavior.

According to the findings, the most important hiring criteria across all PRIME target areas is the years of

relevant work experience. Among the interviewed businesses from all zones of the Somali region, 60% to

98% replied that years of related work experience is the most important. Similarly in Afar Zone 3,

18

Borena, and Guji, 70% to 81% of employers said that the most important criteria they consider during

hiring is years of work related experience. While businesses do place some emphasis on personal

connections or references and the level of education, they were rated secondary to years of related work

experience.

Table 5: Percentage of most important criteria businesses use to hire employees

Region

Zone Most important criteria used by businesses to hire

Years of

related work

experience

Level of

education

Sex Language Personal

connections

or reference

Personal

skills and

good

behavior

Dire

Dawa

Dire

Dawa

53 42 5

Somali

Fafan 66 7 2 1 16 8

Jarar 98 2

Siti 63.3 3.3 3.3 30

Liben 60 13 20 7

Afar Zone 3 70 13 17

Oromia Guji 76 6 3 8 7

Borena 81 4 15

4.7.2 Skills sought by employers

Professional skills. The LMA asked employers what skills they valued the most. Results depicted that

customer service is the most important skill demanded by employers followed by accounting and

management skills. The LMA team believes that the main reason for the high demand in customer service

skills is the growing hospitality sector in these areas, including hotels, restaurants, and retail and

wholesale trade. This is particularly true for the areas in the Somali region. After customer service,

accounting, and management skills, businesses responded that they were looking for employees with

skills in engineering, marketing and sales, construction, and carpentry.

Personal skills. Apart from the technical and practical skills, employers are also looking for employees

with life skills. Among the interviewed businesses from the Somali regions, the most important life skills

employers seek are self-confidence and teamwork. Employers from Afar Zone 3 and Borena, and Guji

consider communication, teamwork and motivation as the most important life skills.

4.8 Challenges Faced by TOPs

TOPs face many challenges as they seek alternative employment opportunities. Based on the LMA, the

PRIME team identified the following barriers:

Capacity of the labor market in PRIME target areas to absorb new employees is low due to a

variety of factors including business constraints faced by the employers

Lack of awareness about employment opportunities by the TOPs

Perception of TOPs by potential employers is negative in some areas

19

TOPs lack appropriate skills required by the existing job market

These challenges and opportunities for PRIME interventions to overcome these constraints are expanded

upon below.

4.8.1 The Capacity of the Labor Market in PRIME target areas

The overall capacity of the labor market in PRIME target areas to absorb job seekers is challenging for

TOPs. There are limited opportunities that match skill sets; and potential business employers face

constraints themselves such as access to finance for scale or expansion. Based on the findings, the chart

below shows that the three most important challenges businesses face are: lack of appropriate skills, high

salary expectations by job seekers, and finding the required number of work force (presumably with the

appropriate skills).

4.8.2 The labor market in Afar Zone 3

In Awash and Awash Arba, employers are currently unable to absorb high numbers of employees

including TOPs. The private sector is mainly comprised of micro to small businesses and needs financial

and business development support in order to expand, scale, and flourish. In Awash, the labor market is

largely defined by the informal business sector, which is rapidly growing. These businesses are mostly

family owned and managed. The capacity of the labor force in Awash to engage medium to highly

technically skilled individuals is noticeably low at present. Furthermore, the LMA found that the labor

force in Awash has an aversion to the routine paid employment of an eight-hour day job, and required

employees to be at their post for undetermined periods.

Opportunities in the labor market mostly lie with larger

businesses such as the following in Awash: one exporting

livestock farm, two cotton ginneries, two marble factories, a

dairy processing plant which is expanding, and several

multinational construction companies that are building bridges

and railroads and one that is drilling for water.

Chart F: Challenges faced by employers

when hiring

TOP workforce in Afar Zone 3

“The majority of the TOP males are engaged in daily labor work, weeding, loading/ unloading, and

guard work.”

-FGD, male youth

20

There is potential for medium businesses to expand and absorb TOP employees, however, these

businesses, similar to micro and small companies, need increased access to finance and support for

business development activities. When companies were asked about their constraints, many mentioned

access to finance. Without financial loans or credit for expansion and scale and good financial

management, businesses of all sizes will be stunted, hence affecting the labor market.

Through the LMA, PRIME concluded that stronger market linkages could be created and enhanced

among the various actors of the value chains, which would have a direct positive impact on the labor

market. For instance, linking the end market such as hotels and restaurants to livestock traders could

create a consistent market for livestock farmers and traders. There are also opportunities for some

businesses to consider micro franchising, which would create more opportunities for the labor market.

Furthermore, there is also potential for livestock traders to start entrepreneurial activities and link to large

livestock traders.

In Afar Zone 3, the labor market offers few opportunities for TOPs or other employees to be trained.

However, some medium and larger businesses have demonstrated that they can and are willing to train

employees including TOPs at their site.

4.8.3 The labor market in Southern Oromia, Borena and Guji zones

The labor market in Southern Oromia is sparser than the other regions. Opportunities are found mostly on

the big irrigation farms such as the one in Fiko PA of Dollo woreda, which is a major employer of TOP

youth. The LMA found that irrigation farms are absorbing many of the TOP labor force in the PRIME

target areas in Oromia. There are some opportunities in the manufacturing / processing, hospitality, and

construction sectors. However, data also shows that the region lacks institutions and businesses that are

willing to train TOPs for employment.

4.8.4 The labor market in the Somali region

The Somali region is flourishing with economic activities, which has created many employment and

entrepreneurship opportunities for people including TOPs. The regional government is committed to

establishing and promoting saving and credit cooperatives and microfinance institutions (MFI) such as

Somali MFI to help individuals, groups, and businesses access finance. In addition, they are supporting

many development projects. These activities, with the support of the government, are contributing to

sustainable livelihood opportunities and individual purchasing power. In zones where businesses are

small, such as Siti, businesses have said that they don’t require much labor.

In the Somali region, TOPs were only aware of a few technical and management schools offering the

needed employment skills they are seeking. These schools included the Jijiga Polytechnic (or TVET

center as many people were calling it), the Management Institute and the Healthy Science College. It is

difficult for TOPs to get enrolled in these schools as they are only required to complete 8th grade and

admission requires a minimum of a 10th grade certification for most courses. However, TOPs are able to

receive 2 to 3 months skill course training at the TVETs, which requires sponsorship or support by the

government or NGOs to partially cover the costs.

Dire Dawa. The large businesses, which are mainly hotels and manufacturing companies, in Dire Dawa

employ between 100 to 300 employees. However, many of these large companies said that finding

workforce with the appropriate skills for their companies was a challenge.

21

4.8.5 The labor market and access to finance

Access to finance was mentioned as a

major hindrance to business growth by the

employers. LMA analysis revealed that

very little businesses have received access to

finance since they have established their

businesses. The reasons for the low access to

finance are the lack of appropriate financial

products or the absence of financial

institutions in the area. In Dire Dawa, the

number of businesses that have accessed

finance is higher (41%) compared to the other

areas. In all other PRIME target areas, less

than a quarter have received access to finance.

The Jarar zone businesses have had zero access to finance. This implies that there is either more reach of

financial service providers in Dire Dawa or that businesses are receiving access to finance because they

are medium or larger in size.

A subsequent question about the sources of finance for businesses was asked to those who said they have

accessed credit or loans. The table depicts where those who said they had access to finance received loans

or other kinds of access to finance. As seen from the table, access to finance mainly appears to be from

commercial banks or the government banks (CBE and DBE). In the Somali region, it appears that

businesses in the Siti zone are mainly receiving access to finance from MFIs. The remaining insignificant

numbers of business have reported that they have accessed finance from different public, private and

development banks, IMX, and NGOs. The result indicates that much needs to be done to improve

financial access for businesses. Without business growth, the labor market will remain stagnant.

NGOs

Awash

Bank CBE DBE

Cooperative

Bank of

Oromia

Multiple

banks MFI Other

Dire

Dawa

Dire

Dawa

5 5

15 5

Somali Fafan 4

1 1

4

Jarar

Siti 3

10

Liben

7

Afar Afar 3

4

2

Oromia Guji

1

1 1 2

Borena

4

2

8

Table 6: Percentage of the source of finance for businesses who have access to finance

Chart G: % of businesses that have received access to

finance

22

According to the PRIME Baseline Survey Enterprise / Institution Questionnaire, even if enterprises

receive money, it is still not enough for their needs. Out of the 29% of businesses that have received some

kind of loan or credit, an average of 88.4% of those enterprises have said it does not meet their needs.

Furthermore, in some of the FGD, TOPs mentioned that they cannot receive loans because they lack

assets. TOPs who are entrepreneurial in mindset and who resort to wanting to start their own businesses

as there are no preconditions for training and education by an employer, are unable to receive credit

assistance from financial institutions. In Guji (Southern Oromia), for instance, TOP females mentioned

that the MFI told them they had to save 20% of the loan before they could receive credit.

4.8.6 Lack of Awareness of labor market opportunities

The findings of the LMA show that businesses hire employees either on an on-the-need basis or

seasonally. The overwhelming number of businesses interviewed, with the exception of Dire Dawa, found

their employees through personal references and networks. In the Somali region, 64% of employers

outsource labor through their network of families or friends. This channel is also significant in the Afar

and Oromia regions. However, in Afar and Oromia, the second most important means that employers use

to connect with job seekers is through brokers, whereas official advertisement is used in Somali region.

The LMA also found that when employers seek to recruit seasonal employees, employers heavily depend

on a network of family and friends in all PRIME target areas. The conclusion drawn from Table 7 below

implies that it is difficult for TOPs who don’t have any connections to find employment opportunities

because of the presumed limited relationship within the business community, especially the elite

community. Furthermore, when advertisements are printed, it makes it harder for TOPs who are illiterate

to learn about the opportunities.

Table 7: Percentage of the most important recruitment channels

Frequency

of

recruitment

Region

Zone

How do you get candidates/employees for your businesses?

Advertisement

announcements

Brokers Legal

employment

placement

agencies

Networks

via family

and friends

Employee

requests

to

employers

On-need

basis

Dire Dawa Dire Dawa 68.4 - - 31.6 -

Somali Fafan 10.7 7.1 1.2 78.6 2.4

Jarar 4 8.0 - 82 6

Siti 4 12.0 8 76 -

Liben 13.3 6.7 53.3 26.7

Afar Zone 3 9.7 35.5 3.2 48.4 3.2

Oromia Guji 6.1 3 22.7 66.7 1.5

Borena 4 60 8 28

Seasonal

Dire Dawa Dire Dawa 100 - - - -

Somali Fafan - - - 85.7 14.3

Jarar - - - 100 -

Siti 33.3 33.3 33.3 -

Afar Zone 3 46.7 6.7 13.3 33.3 -

Oromia Guji - - 20 40 40

Borena 50 - - 50 -

23

4.8.7 Impression of TOPs by potential employers is negative in some areas

The result of the LMA highlighted in Table 8 shows that there is divided opinion among businesses and

stakeholders about TOPs. There is concern that potential employers in all areas at some level question

TOPs’ motivation to work and perceive TOPs as lazy in mindset. Some employers indicated that they

don’t hire TOPs for casual labor because they feel that TOPs don’t have physical strength and are lazy.

Even though this observation is not generalized (some employers hiring TOPs believe they are efficient

and committed workers), this attitude combined with the perception that TOPs lack education and skills

makes it even more difficult for TOPs to obtain employment and also makes them uncompetitive

compared to other potential job seekers.

The data shows that while most of the Somali region zones have positive impressions of TOPs and

consider TOPs loyal and hard working, in addition to big construction companies in Awash who believe

that TOPs are honest, clever and teachable, the majority of businesses in Dire Dawa, Afar Zone 3, and

Guji perceive TOPs as lacking in education, skill and experience. In the Liben and Borena zones, almost

half of the businesses consider TOPs lazy and believe that TOPs don’t have any desire to work. In the

Afar region, among the key informants interviewed, some of the government agencies have had the most

negative responses towards the TOPs. Some responses included that they do not believe that TOPs exist.

In Southern Oromia, some respondents said that they believe TOPs are employable if they acquire the

necessary skills for business demands.

The divided perception about TOPs from zone to zone in the targeted regions can be attributed to the level

of integration of TOPs into the urban and peri-urban societies as the transition from their pastoralist

livelihoods. TOPs may have inadequate skills and a lack of education to work in most of the urban or

peri-urban business environments, because education is limited in most of the pastoral areas and pastoral

skills are different. PRIME believes that there are opportunities to help change the weak and negative

perceptions of TOPs through capacity development and appropriate skill trainings for the market labor as

identified in the target areas.

Table 8: Percentage of the most important perception of TOPs by Businesses

Region Zone Most important perception of TOPs by Businesses

Lack of

education,

skills and

experience

Committed

and hard

working

Good

for

blue

collar

jobs

Loyal

and

trustful

Difficult to

communicate

with

Lazy and

don’t want

to work

Dire

Dawa Dire Dawa 32 26 5 11 5 21

Somali

Fafan 26 26 13 8 19 8

Jarar 90 2 0 0 6 2

Siti 15 41 4 26 3 11

Liben 53 14 0 20 13 0

Afar Afar 3 33 24 6 2 10 25

Oromia

Guji 34 24 0 5 15 22

Borena 54 0 2 0 29 15

24

4.8.8 TOPs lack appropriate skills required by the existing job market

One of the major barriers for TOPs as a competitive and employable workforce is their lack of technical

and vocational skills, education, and their lack of life skills such as language including illiteracy,

communication, self-confidence, and motivation. Even micro and small businesses responded that they

would prioritize an experienced and skilled worker over an unskilled worker even if the job does not

require specific skills and experience.

While technical and vocational skills can be obtained over

time, there are limited opportunities for TOPs. There is

inadequate capacity of institutions that provide skills

training for TOPs. In the Jarar zone, there are no skill

training centers available. While some medium and large

businesses provide on-site training, TOPs don’t have access

to it unless they obtain employment with these firms first,

hence causing a complex cyclical issue. For instance, in the

Somali region, where the communities outside the urban

areas are mostly pastoralists, there has been a large influx of

TOPs from the rural areas in search of better livelihood

opportunities. Youth and adults face challenges because they

lack basic education that urban employers require, but cannot receive training without first getting

employed. They are forced into daily labor jobs such as loading, offloading, guarding, etc. or with

livestock keeping centers (skills that they possess, but similar to what they were doing before).

TOPs also encounter many struggles adapting to the new urban lifestyle when they move to peri-urban

and urban areas. Most of the participants in the FGDs confirmed that they encountered difficulties in the

first few days of arriving to the new towns. There is not an area where all the TOPs reside together that

could allow for a network to share experiences. They are unaware of social and business interactions.

TOPs are uncomfortable interacting with urban dwellers and do not have the confidence to ask for jobs

and / or to look for information. They usually encounter resistance from existing workers. Some FGD

participants also mentioned that when TOPs have limited kinship relationships with someone from the

town or someone to help them, they usually cannot survive and sometimes resort to begging. As a result

of the new changes and the unpreparedness for life in peri-urban or urban areas, TOPs are not well

prepared and their confidence in themselves begins to drop. Some fortunate TOPs are able to connect

with someone in their network or with their relatives and are then connected to employers or employment

opportunities.

Females from the FGDs mentioned that their main challenge was also their lack of skills in the areas that

were sought after by employers. Even jobs such as housemaids and caretakers require skills in cooking

and laundry. They also mentioned that it was difficult to overcome the negative perception of urban

dwellers. One female mentioned that as a young lady it was particularly more difficult to move into a

town without relatives because you would have to find a place to stay, find someone to debrief you about

town issues including security, and find a broker to learn about employment opportunities. The female

FGDs also stated that access to finance to start a small business was hard because of the initial savings

requirements to access loans.

Lastly, TOPs with entrepreneurial visions face constraints to accessing capital for start-ups due to the lack

of financial awareness, lack of collateral or financial history. They also have trouble maintaining their

businesses that they do establish because of their lack of knowledge of the market and entrepreneurship

skills needed to manage the business. TOPs usually suffer from a lack of documentation because of

TOP Experience “People did not like to sit with, talk, and share our views, they insulted us and called us bad names. As a result, we “TOPs” lose confidence and also get offended.” -FGD

25

literacy and numeracy problems; they cannot tap market information and analyze for market

opportunities.

The lack of both technical and life skills makes it difficult for TOPs to enter into the formal employment

market, but the lack of the latter also creates barriers for TOPs to not only integrate into the labor market,

but also into the local community.

4.9 Composition of employees in existing businesses by skill set

The composition of employees in the assessed businesses stands at 15% skilled, 31% unskilled and 54%

semi-skilled. As it is clearly seen from the low proportion of the skilled employees and based on the

findings of the required skills mentioned above, it will be indispensable to facilitate different skill

development and scholarship programs in collaboration with TVETs for the unskilled employees in order

to increase employability and employment opportunities.

Table 9: Percentage of composition of staff by skill set Region Zone How would you classify the majority of workers in your

business?

Skilled (gained

from university or

vocational training

Semi-

skilled

(gained

from

short term

training

or

vocational

training

Unskilled

Dire Dawa Dire Dawa 42 47 11

Somali

Fafan 20 50 30

Jarar 22 30 48

Siti 4 44 52

Liben 13 33 54

Afar Zone 3 8 39 53

Oromia

Guji 14 72 14

Borena 2 88 10

4.10 TOP Employment Trends

The LMA analyzed how TOPs seek employment to ensure that there are not other missed challenges and

opportunities. Almost half of the surveyed businesses said that TOPs have applied for jobs at their

companies. However, 49% of businesses interviewed reported that TOPs have never applied for work in

their business. In addition, data shows that some TOPs have turned down jobs or not applied for jobs

because they don’t like the opportunity, there are cultural barriers, they are shy or think they can do better

than the job offered. Some TOPs dislike performing activities such as waiting on tables in restaurants,

blacksmithing, shoe repairing / shining, toilet digging, butchery (for men only), construction, street

sweeping and solid waste collecting. For instance, a restaurant owner in the Aware town said she could

not get a potential female employee to serve as waitress in her small restaurant.

26

From this data, there are several assumptions that can be drawn and that need be further investigated –

either TOPs lack awareness of the job opportunities that are available, TOPs lack confidence (as

substantiated from the FGDs) or think there is a cultural barrier, have little interest in the available jobs,

or think the wage rate is too low.

4.11 Opportunities for TOP employment

4.11.1 Opportunities for TOP employment in Afar Zone 3

The biggest existing opportunities for TOPs in the Afar Zone 3 are in commercial farming and farming

ventures in areas such as livestock, since TOPs possess a wealth of knowledge and experience in

livestock and farming. They are competitive and of value-add to these employers. TOPs can seek

employment opportunities on these farms. The expansion of commercial agriculture farms such as

sugarcane, cotton and sesame farms have the potential to absorb more labor force in the area.

Another opportunity for TOPs is to seek work at the big construction companies, where they don’t require

technically skilled employees. Currently, there is a Japanese company that is reconstructing the Awash

Bridge. There is an opportunity there for PRIME to help explore this construction firm’s needs and to

develop training activities that allow TOPs to be employed.

Self-employment appears to be a promising opportunity for TOPs, as they are more inclined to work for

themselves. As mentioned above, TOPs have valuable livestock and farming skills and they could

develop market linkages to large farms and commercial agricultural enterprises with livestock, animal

fattening, vegetable production, and urban agriculture needs.

Awash is a rapidly growing town that is attracting many new investors, which could have great

implications for potential economic opportunities and income generating activities. There is a

preponderance of informal businesses, which if properly harnessed could also hold an important window

for TOP employment as a paid worker or as a self-employed entrepreneur.

4.11.2 Opportunities for TOP Employment in Southern Oromia, Borena and Guji zones

In Borena and Guji, according to the KIIs there is an array of employment opportunities, especially in the

livestock (fattening, poultry) and crop sectors for the TOPs. In these areas, the community has become

more familiar and comfortable with the pastoral culture including their attitudes and their agro-ecology

and pastoralist norms. Unlike other workforces from other areas who are seeking job opportunities,

businesses may give TOPs priority for employment due to strong ethnic and clan relationships. However,

the FGDs revealed that not TOPs are aware of the opportunities or believe that employers have a

somewhat positive impression of them. Female TOPs responded that they believed that they had a harder

time assimilating and finding opportunities, yet responses from KIIs seem to indicate that they believe

females have the same opportunities and challenges faced by males. Females might have more

opportunities because they can serve as housemaids.

There are also large construction companies that have been contracted to build the highway from Moyale

to Addis, which is a great opportunity for the market to absorb additional workforce. Furthermore,

emerging sectors such as hospitality, manufacturing, and irrigation in Borena and Guji, could lead to more

jobs. Responses indicated the government has been trying to create jobs for TOPs such as cobble-stoning,

mining, and road construction. Furthermore, a few KIIs indicated that job training for artisan jobs

(woodwork, etc.) could be an opportunity for TOP job creation.

27

4.11.3 Opportunities for TOP Employment in the Somali region

In almost all the business survey interviews and KIIs conducted in the Somali region, people said they

had positive impressions of TOPs and characterized them as being hard working, committed, trustworthy,

able, and loyal. While TOPs may lack technical and business skills required for the job they are still the

biggest manpower available in the Somali region, according to the business survey interviews. This

positive perception of TOPs by employers creates an advantage for TOP job seekers.

In the Somali region, the Fafan zone currently presents the largest workforce opportunity. There are many

expanding large and small businesses including retail and wholesale (dry foods, beverages, clothes, and

utensils), hotel and restaurants, fuel stations, construction and farm material companies, etc. There are

also small-scale manufacturing and processing factories (wheat flour, water processing, foam processing)

that offer opportunities for the labor market. TOPs are mainly filling these current positions and comprise

as the majority of the employees.

There are many construction and building projects establishing in the region that are funded by the

government and the private sector. During the LMA, construction employers said that they hire many

casual TOP employees and move them from one construction project to another. Sometimes these

projects add up to a full year of employment.

In Siti and Dire Dawa, the LMA encountered the following:

Small enterprises started by entrepreneuers such as tea kiosks, restaurants, vegetable marketing

Livestock marketing, which is advantageous to TOPs since they can easily engage in this sector

Livestock trading in major Somali towns also provides opportunities for TOPs seek employment. TOPs

are experts in livestock keeping, carrying, and fattening.

In Degahbur, Gashamo, Aware, K/bayah, there are an array of loading and offloading, mason, brick

laying, transport, and livestock broker associations. TOPs are usually connected to these associations

through kinship or through formal connections via the kebele administrations.

Another advantage for TOPs in the Somali region, is that they have an easier time integrating into the

urban communities. They don’t typically encounter the same difficulties as other TOPs in other regions

because of the clan lineages and kinship relationships

4.12 Training Opportunities offered by Employers

The majority of the businesses –94%-- contacted in the intervention areas have reported that they provide

training following employment. 98% of the businesses reported that they provide on-the-job training or

basic training immediately after employment. 94% of these businesses said that they provide annual

trainings for their employees. Below is the breakdown by region and zone.

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Table 10: Percentage of Types of Trainings provided by Employers

If yes, at which point of time is that

organized?

Region Zone Do you provide any training

opportunities (managerial or

technical) to your

employees?

Yes No

Immediately following employment

Dire Dawa Dire Dawa 100

Somali

Fafan 100

Siti 80 20

Liben 100

Afar Zone 3 100

Oromia

Guji 100

Borena 100

On-the- job training

Dire Dawa Dire Dawa

Zone

100

Somali

Fafan zone 98 2

Jarar Zone 97 3

Siti Zone 100

Liben Zone 67 33

Afar Zone 3 100

Oromia Guji 100

Borena 100

Annually for all staff

Dire Dawa Dire Dawa 100

Somali

Fafan 100

Siti 100

Afar Zone 3 67 33

Oromia

Guji 100

Borena 100

4.13 Trends in TOP behavior

In order to fairly assess the labor market, the PRIME team observed TOP attitudes and behavior towards

alternative livelihood opportunities and willingness to explore various employment opportunities. 4.13.1 Trends in TOP behavior in Afar Zone 3

In the Afar region, we noticed different levels of work motivation between the male and female TOPs.

Male TOPs, who are accustomed to females bringing in income, do not possess a strong level of urgency

in finding a job. This attitude is perpetuated by the communal lifestyle. Male TOPs also perceive

themselves as being “superior” to daily labor jobs such as a farm or construction worker.

29

When collecting data, the LMA team noticed that “sex workers” seem to exist in the region. This

phenomenon needs to be confirmed, but sex workers are prohibited and condemned by the Afari

community. If this is occurring, there is a risk that female TOPs will resort to prostitution. It may also be

a barrier when recruiting female TOPs for other legal jobs that might pay less. We saw contradictory

answers in the FGDs and the surveys and this observation needs closer analysis.

4.13.2 Trends in TOP behavior in Southern Oromia, Borena and Guji zones

In the two zones of Southern Oromia, male TOPs seem to be open to any job opportunity that is available.

They work wherever is possible, even if it is not an opportunity they originally wanted. For instance, they

are willing to fetch water at hotels, drive motorcycles for others, and loading trucks. They prefer to work

in sectors that they are familiar with such as livestock trade, grain trade, poultry production, and intensive

fattening.

Females, on the other hand, seemed to be more selective. They do not prefer working for SMEs. They are

more intent on starting their own businesses such as retail shops. These entrepreneurial opportunities do

not have preconditions attached and do not require employer specific skills.

4.13.3 Trends in TOP behavior in the Somali region

As mentioned in the LMA, even though TOPs lack the technical skills needed for employment, they are

the largest group and hence the biggest manpower available in the region.

The female TOPs interviewed in the Somali region have a very entrepreneurial mindset. They not only

expressed their desire to obtain better jobs and to engage in the labor market, even though they realize

they lack some of the skills required for better employment, but they also have demonstrated self-initiated

economic activities. Some of the young females have started making tea to generate income. They then

reinvest that income into other activities such as buying retail goods and reselling it to generate more

income. In the Jarar zone, many females have actively started their own businesses. From the analysis, it

seems that they are more persistent than males.

The women that manage businesses are mostly engaged in the informal group savings scheme, Hagbad,

which helps them save money for future purchases or expansion of their businesses. The savings group is

supportive and promotes the establishment of shops and restaurants. There have been many success

stories from women TOPs who are active in Hagbad.

4.14 Employment Opportuntities for TOPs

The LMA investigated to find out the availability of jobs in the coming six months from May to October

2014. Among the interviewed businesses, 97% said they had plans to hire staff in the coming six months.

Among the 97% that said they had plans to hire additional staff and 64% said they may consider hiring

TOPs. In major cities like Dire Dawa, Borena and the Fafan zones, 34% of the businesses have said that

they are not ready to hire TOPs to work. This may correlate with the skill set businesses are looking for

and the perception and reality of TOPs lacking some of the required skill sets.

During the PRIME enterprise and institution questionnaire, businesses that participated in the survey were

asked whether they had future plans to hire. In Afar, businesses responded that they only had plans to hire

daily laborers, while in Southern Oromia 52.2% of the businesses surveyed said they are looking to hire

30

permanent workers and 19.6% responded that they were looking to hire daily laborers. In the Somali

target areas, there also seemed to be some future opportunities with 34.7% of the businesses responding

that they were looking to hire permanent workers. From the chart below, it seems like Southern Oromia

and the Somali region have the most job opportunities, however, this was not specific to hiring TOPs.

V. RECOMMENDATIONS

Based on the findings and analysis of the surveys, FDGs, and KIIs, the PRIME team has identified

various interventions and activities that can help build the capacity of enterprises and TOPs that will lead

to additional employment opportunities, make TOPs more competitive in the labor market, and stronger

market linkages for continual economic growth. PRIME’s recommendations are presented below and

broken down by short /medium term and medium /long-term activities.

Short to medium-term

A. Creating job-matching mechanisms. The creation of a systemic job matching mechanism to

connect job seekers to employers is lacking in the pastoralist areas. TOPs are often times unaware

of their choices or opportunities. It is necessary to abridge this gap, which can be done by:

strengthening formal employment placement agencies, using alternative ways such as the radio to

broadcast job announcements, working with one stop centers and other job companies to reach

out to TOPs, and distributing information to TOPs on where employment placement agencies and

one stop centers are located. Under PRIME, the IIF has supported an innovative technology

service called Hellojobs, which registers job seekers through the phone and online and provides

free access to the data for employers. Six call center agents will be established by May 2015 and

the expected impact is to register 30,000 profiles in year 1.

B. Strengthening TVETs and other training centers. To meet the rising demand of trainings on skill

development, activities can focus on building the capacity of TVETs and other training centers to

offer courses at a discounted rate or repayment basis. Having access to technical and life skills

Chart H: % of enterprises that plan to hire in the future

(from the PRIME enterprise / institution questionnaire)

31

will have a great effect in changing the livelihoods of TOPs. Interventions could include

facilitating access to different skill trainings or offering apprenticeships with businesses on a

lower wage rate until TOPs formally matriculate into the job.

C. Support to women entrepreneurs and job seekers. Based on the LMA findings and responses,

specific trainings for women that meet their needs can be developed. Currently, TVETs are

specifically providing scholarships for women TOPs with PRIME’s support. PRIME and other

projects could help support the TVETs and develop curriculum that trains women in

entrepreneurship (financial literacy and franchising). Specific grants can also be set-aside for

women entrepreneurs.

D. Technical and life skill trainings for TOPs. Along the same lines as activities for “integrating

TOPs”, specific workshops or general skills trainings can be offered to TOPs. The skills training

could be held in target towns and be tailored to the opportunities available in the areas. It could

also include basic communication skills and customer service skills. For aspiring entrepreneurs,

there could be basic numeracy and management skills taught. It is imperative to design

interventions that build the capacity of TOPs and make them more employable in terms of

vocational skill, life skill and practical knowledge. TVETs, OSCs, businesses and relevant sector

stakeholders partner to leverage skills development of TOPs.

Medium to long-term

E. Access to finance. The labor market faces many challenges, but one challenge that is hindering its

growth is the inability for many businesses and individual aspiring entrepreneurs to access

finance. Interventions to help businesses and individuals access finance are critical and awareness

about loan opportunities needs to be made available. Banks and MFIs may need support in

developing innovative products and services and requirements that better serve the needs of

businesses and individuals. The majority of the Somali region is Muslim and activities can help

explore Sharia compliant banking needs. PRIME can help TOPs get linked to smaller credit and

savings groups such as VSLAs or RuSaCCOs. In addition, to access to finance, activities should

also include financial literacy and awareness for TOPs. PRIME has been working with several

MFIs to develop more appropriate products and services, such as Somali MFI, Afar MFI, and the

establishment of Rays MFI. PRIME has also supported RuSaCCOs and VSLAs through training

and strengthening of the finance value chain.

F. Integration of TOPs. Integration of TOPs into the peri-urban and urban labor market is

indispensable to change the negative perception about TOPs among the communities, especially

the business community. To help integrate TOPs into the community, networks can be set up so

that TOPs who do not have relatives or clan relationships can reach out to other former TOPs. A

group could be set up in every town that specifically helps TOPs integrate socially into the

community. Forums, job fairs, and trainings could help TOPs learn more about what is expected

for certain employment and what they can do to try to acquire skill sets. Furthermore, basic

literacy training for TOPs that are illiterate could also be offered by TVET centers.

G. Creation and strengthening of market linkages. There are many opportunities, especially in the

Afar region, for TOPs to sustain consistent livestock and farming livelihoods by linking directly

to larger enterprises that need their supply. Sharing opportunities with TOPs and commercial

farms and linking them together could be beneficial to both parties and create stronger economic

ties in the region. In addition, it is also important to support enterprises that are employing TOPs

32

and other staff in linking to markets. Many of the larger enterprises interviewed responded that

they lack the market to grow. One activity to consider is the hosting of a market trade fair.

H. Attracting and leveraging investment. The majority of businesses in pastoralist areas are micro

and small businesses. Therefore, attracting and leveraging investment in pastoralist areas is a key

breakthrough to create jobs for TOPs. PRIME’s Innovation Investment Fund is currently offering

matching grants for businesses working in the PRIME target areas and leveraging funds for

investors interested in investing in the target areas. IIF also supports businesses with technical

assistance and service contracts. The IIF’s small grants (less than $10,000 per business) are

targeted at stimulating growth potential and opportunities.

I. Exploring workspace issues for enterprises. Based on the findings of the enterprise and institution

survey, the enterprises interviewed mentioned that a lack of working space / housing problem is a

barrier to expansion and scale. Shared workspace options among enterprises could be explored or

procedures of how to obtain additional workspace from the government could be gathered as a

guide for these businesses. Some of the workspace issues could be tied to access to finance and

not having the funds to expand. It is hard for enterprises to employ more employees if they don’t

have the physical capacity to properly maintain a working area for them.

VI. BEST PRACTICES & LESSONS LEARNED

The PRIME LMA team collected best practices based on lessons learned, successes, and challenges in

conducting the LMA. Since PRIME will continue to conduct assessments throughout the life of the

project, the team documented these best practices and lessons learned and will be releasing an assessment

guide. Brief highlights are presented below.

Before the LMA, key Mercy Corps regional team members from Somalia, Nigeria, Uganda and

Tunisia on the LMA team participated in the two-day training on how to conduct the

questionnaire with the target groups and on the design of the LMA (overall methodology and

approach, collection and entry). After the training, they joined PRIME team members in Ethiopia

in leading the assessment implementation and collection of data. It was critical to have the team

together before the execution of the LMA.

The PRIME team learned that certain assessment tools and methodologies could be used to gather

indirect information to inform and influence all livelihoods activities for the PRIME program.

As a follow-up to the training, the EMD TSU will soon release a Labor Market Assessment

Guide that will outline the process for conducting assessments from start to finish-- from

developing methodologies to tips on how to collect hiring information from private sector actors.

The guide will also explain the process for participatory assessments and will include example

tools and interview guides.

33

VII. ANNEXES

Annex I

Existence of business by type and number of years in three clusters

Which specific sector best describes

where your business is engaged?

Zone How long has the business

been operating?

Total

1 year

or less

1-3 yrs >3yrs

Crop farming Zone Fafan 1 0 0 1

Siti 0 1 3 4

Afar Zone

3

0 1 11 12

Total 1 2 14 17

Vegetable/fruit/tree nursery Zone Fafan 0 1 1

Jarar Zone 0 1 1

Siti Zone 1 0 1

Guji 0 2 2

Liben Zone 1 0 1

Total 2 4 6

Livestock rearing/fattening Zone Siti Zone 1 1

Total 1 1

Veterinary Input Supply Zone Fafan zone 2 0 1 3

Guji 0 0 1 1

Liben Zone 0 1 0 1

Total 2 1 2 5

Manufacturing/processing Zone Dire Dawa 2 3 5 10

Fafan 2 3 10 15

Jarar 0 1 3 4

Siti 0 0 1 1

Afar Zone

3

1 1 4 6

Guji 1 4 19 24

Borena 2 3 8 13

Liben 1 1 0 2

Total 9 16 50 75

*Retail trade Zone Dire Dawa 0 0 2 2

Fafan 4 2 14 20

Jarar 5 3 23 31

Siti 3 0 5 8

Afar Zone

3

0 2 7 9

Guji 3 1 3 7

Borena 0 0 1 1

Liben 0 1 0 1

Total 15 9 55 79

34

*Wholesale trade Zone Fafan 4 4 11 19

Jarar 0 1 2 3

Siti 1 1 1 3

Afar Zone

3

1 0 2 3

Guji 0 0 1 1

Liben 0 0 1 1

Total 6 6 18 30

Construction Zone Dire Dawa 0 1 0 1

Fafan zone 2 3 3 8

Jarar Zone 1 1 2 4

Siti 0 1 0 1

Afar Zone

3

0 1 3 4

Guji 0 1 1 2

Borena 0 0 2 2

Liben 0 1 2 3

Total 3 9 13 25

Hotel and restaurant Zone Dire Dawa 0 1 4 5

Fafan 2 4 11 17

Jarar 0 2 5 7

Siti 1 1 4 6

Afar Zone

3

2 2 10 14

Guji 9 3 14 26

Borena 3 8 19 30

Liben 0 1 2 3

Total 17 22 69 108

Transport Zone Fafan 0 1 2 3

Jarar 0 0 1 1

Siti 1 0 1 2

Afar Zone

3

0 0 1 1

Guji 0 2 1 3

Borena 0 1 0 1

Liben 0 0 1 1

Total 1 4 7 12

Employment agency/broker Zone Liben 1 1

Total 1 1

Education Zone Guji 1 1

Total 1 1

Mining Zone Fafan 1 0 1

Afar Zone

3

0 1 1

Guji 0 2 2

Total 1 3 4

Trade Livestock Zone Fafan 1 4 5

35

Siti 0 2 2

Borena 0 2 2

Liben 0 1 1

Total 1 9 10

Other Business Zone Dire Dawa 0 0 1 1

Jarar 0 1 0 1

Siti 1 0 0 1

Afar Zone

3

0 0 2 2

Total 1 1 3 5

36

Annex II

Business survey tool

Informed consent The interviewer should read this aloud.

Hello. My name is ________________ and I am conducting an assessment for a project named Pastoralists Areas Resilience Improvement through Market Expansion (PRIME). The project works closely with different private sectors, local institutions and government offices so as to create opportunities for employment and entrepreneurship for young people in general and People who are Transitioning Out of pastoralism. (TOPs definition: People who had been in the rural/pastoral areas and now in the town and looking for job.) As we engage with these activities, we would like to talk to a few people like yourself to help us understand the situation of TOPs in your town and the district as a whole. I would therefore like to request your time to discuss a few questions I have prepared for you. Is this ok with you? Yes: …… No…… If Yes, thank you. I will try not to take much of your time.

Signature of Assessor:

Category Answers (and Coding) Comments

1 Name of Assessor

2 Date _______/_______/__________ (dd / mm / yy )

3 Zone

4 District/Woreda

5 Kebele

37

Annex III

Survey Details

# Questions Answer (and coding ) Remarks/ Comments

6. Full name of respondent

7. Respondent’s sex (circle) Male…………………………………………....…..1 Female………..……………………………………2

8. Respondent’s age (circle) Under 18 years……………….…………………....1 18 – 35 years . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 2 Over 35 years…..………………………………….3

9. Position of respondent in the business (circle)

Owner.............................................................................1 Manager..........................................................................2 Other (Specifiy)____________________ .......... 3

The owner or manager should be the primary contact.

10. Phone number of respondent

Phone #:______________________

11. Name of business and address of business (If the business has branches in other region/zone/woreda, please indicate)

Name: __________________________ City/Woreda:_____________ Kebele: _____________ If branches exist please indicate Name: __________________________ City/Woreda:_____________ Kebele: _____________

12 How long has the business been operating? (circle)

1 year or less......................................................................1 More than 1 year to 3 years............................................2 More than 3 years.............................................................3

13 Which specific sector best describes where your business is engaged? (Pick one. For those businesses indicated in * please mention the specific business on the bottom.)

Crop farming . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Vegetable/fruit/tree nursery. . . . . . . . . . . . . . . . . 2 Livestock rearing/fattening. . . . . . . . . . . . . . . . . . 3 Veterinary Input Supply. . . . . . . . . . . . . . . . . . . . .4 Manufacturing/processing. . . . . . . . . . . . . . . . . . .5 *Retail trade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 *Wholesale trade. . . . . . . . . . . . . . . . . . . . . . . . . . 7 Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Hotels and restaurants . . . . . . . . . . . . . . . . . . . . . 9 Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Finance/insurance . . . . . . . . . . . . . . . . . . . . . . . . 11 Employment agency/broker. . . . . . . . . . . . . . . . 12 Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 *Other(Specify) . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Specific Business Type: _______________________________________

14a Is your business registered by the local/ regional government?

Yes ……………………………….. ………….1 No……………………………………………..2

If ‘yes,’ then skip to Q15.

14b If no, what is the biggest challenge that you face (as a result of being not registered )

Expanding the business to other areas…………...1 Diversifying the services/products the business provides………………………………………. ...2 Promoting of services/products………………. ...3 Getting financial support ………………………...4

15 Who are the main buyers and consumers of the goods/services you provide? (Circle only one that most applies.)

Individuals or households ………. . . . . . . . . . . . . .1 Small businesses/traders . . . . …………... . . .. .. .. 2 Large businesses. .. ……………………………... 3 International/export market . . . . . . . . ………….. 4 Government agencies/public enterprises ……. . . .5

38

Non-Governmental Organizations…...…………..6 Other (Specify:_______________________)……7

16 Where are most of your customers coming from to get/buy services/products?

From all over the country …...……………….…1 From all over the region…...……………………2 From the woreda only …...……………………..3 From the kebele only …...………………….…. 4 Other(specify):___________________……… ..5

17 How many paid employees in the business, including you are permanent (long term/non limited period of time)? (Include disaggregation by sex.)

Permanent Make sure male + female numbers equal total number.

Male Female Total

18 How many paid employees in the business, including you are temporary (limited period of time)?(Include disaggregation by sex.)

Temporary Make sure male + female numbers equal total number.

Male Female Total

19 Do have unpaid family members working for you? If so, how many?

Family Members Make sure male + female numbers equal total number.

Male Female Total

20 Of the total number of persons employed in the business, do you have any employees under 18-years-old?

Yes …………………………………………...….. 1 No………………………………………………...2

21 What is the most important criterion that your business uses to hire employees? (pick one)

Years of related work experience……………………1 Level of education ……………………………… …2 Sex ……………………………………………….…3 Language ………………………………………........4 Personal connections or reference ……………….…5 Other (Specify:_______________________)… …...6

22 How do you get candidates/employees for your businesses?

By announcing advertisement………………….….…1 Through brokers ……………………………….…....2 Through legal Employment Placement Agencies …....3 Through friends, family and networks ……………....4 Other (Specify:_______________________)………5

23 How often do you recruit employees?

On as-needed basis………………………..……. ..1 Seasonal ………………………………………….2 Other (Specify:_______________________)…... 3

If Seasonal, go to Q24a. If not, skip to Q25

24a If you recruit employees seasonally, which months

Months:______________________________

If blank, skip to Q25.

39

of the year do you require more employees?

24b If yes to 24a how many more workers have you hired during that season?

…………………………………number of workers

25 Have TOPs ever previously applied for work at your business?

Yes… . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ……...1 No . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . ….2

26 How are people who are transitioning out of pastoralism perceived by you? List two characteristics of TOPs.

1. ________________________________

2. ________________________________

Help the respondent to explain how TOPs are perceived.

27a Are you planning to hire workers in the next 6 months?

Yes… . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …... . . . 1 No . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . …... . 2

If ‘no,’ skip to Q28.

27b If yes are you willing to hire TOPs?

Yes… . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …... 1 No . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . …... 2

28 How would you classify the majority of workers in your business?

Skilled (gained from university or vocational training and graduated). . . . . . . . . . . …………..…………….…1 Unskilled … . . . . . . . . . . . . . . . . . . . . . . . . . . . ….. . 2 Semi-skilled (gained from short term training or vocational experience)… . . . . . . . . . . . . . . . . . . . . . 3

29a What is the most important skill you look for in an employee (Circle one.

Accounting … . . . . . . . . ……………………... . . . . ...1 Administration/secretarial . ………………………. . ..2 Animal health …. . . . . ………….. . . …….... . .. . ….. .3 Carpentry … . . . . . . ……………………. .……. . …..4 Construction … . . . …………………….. . …………5 Customer Service ………………………. . . ………...6 Engineering … . . …………………….. . ………. ….7 Management . . . …………………….....…….....….. . 8 Marketing ……………………… . . . . . . . . . . . . . . . . .9 Sales…. . . . . . . . ………………………….…….. … 10 Teaching … . . . ……………………... . . . ……. . .. . .11 Other (Specify:)_________________…………..… . 12

Show the business owner the list of options.

29b What is the second most important skill you look for in an employee? (Circle one.)

Accounting … . . . . . . . . ………………………... . . . . .1 Administration/secretarial . ……………………..…. . ..2 Animal health …. . . . . ………….. . . …….... . .. ... ….. .3 Carpentry … . . . . . . ……………………. ….…..……..4 Construction … . . . …………………….. . ……..…….5 Customer Service ………………………. …. . …..…....6 Engineering … . . …………………….. …. ……….. .. 7 Management . . . ……………………... . …. …….... .. . 8 Marketing …………………………….……....……...... 9 Sales…. . . . . . . . …………………………….…….. .. 10 Teaching … . . . ……………………... . . . ….……. . . 11 Other (Specify:)_________________……………..… 12

Show the business owner the list of options.

29c What is the third most important skill you look for in an employee? (Circle one.)

Accounting … . . . . . . . . ………………………... . . .. .1 Administration/secretarial . ……………………..…. . .2 Animal health …. . . . . ………….. . . …….... . .. ... …. .3 Carpentry … . . . . . . ……………………. ….….……..4 Construction … . . . …………………….. . …….……5 Customer Service ………………………. …. . ….…...6

Show the business owner the list of options.

40

Engineering … . . …………………….. …. ……….. . 7 Management . . . ……………………... . …. ……... . . 8 Marketing …………………………….……....…........ 9 Sales…. . . . . . . . …………………………….…….. .. 10 Teaching … . . . ……………………... . . . ….……. . . 11 Other (Specify:)_________________…………..… 12

30a When you recruit for your business which life skill do you consider to be the first most important?

Communication … . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Self-Confidence … . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Self-presentation… . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Team work… . . . . . . . . . . . . . . . . . . . . . . . . . . . …….4 Public speaking … . . . . . . . . . . . . . . . . . . . . . . . . . . . ..5 Motivation … . . . . . . . . . . . . . . . . . . . . . . . . . . . …….6 Other (Specify:_______________________)… …...7

Show the business owner the list of options.

30b When you recruit for your business which life skill do you consider to be the second most important?

Communication … . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Self-Confidence … . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Self-presentation… . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Team work… . . . . . . . . . . . . . . . . . . . . . . . . . . . …….4 Public speaking … . . . . . . . . . . . . . . . . . . . . . . . . . . . ..5 Motivation … . . . . . . . . . . . . . . . . . . . . . . . . . . . …….6 Other (Specify:_______________________)… …...7

Show the business owner the list of options.

31a Do you provide any training opportunities (managerial or technical) to your employees?

Yes… . . . . . . . . . . . . . . . . . . . . . ……. . . . . . . . . . . . . 1 No . . . . . . . . . . . . . . . . . . . . . . . . . . . . ……. .. . . . . . . 2

31b If yes, at which point of time is that organized?

Immediately following employment………………..1 On-the- job training … ……………………………2 Annually for all staff ……………………………….3 Other (Specify)______________________………..4

32a What is the entry-level salary that your business currently pays Permanent new employees?

Minimum ___________ Maximum __________ (Birr)

32b What is the entry-level wages that your business currently pays Daily Workers?

Minimum ___________ Maximum __________ (Birr)

If no Daily Workers, skip this question.

33a On what basis do you determine the level of the salary?

Level of Education ……………………………….1 Total years of work experience …………………...2 Past training exposure ……………………………3 Other (Specify):____________________________4

33b Does your salary scale differ between male and female employees?

Yes… . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ….. . 1 No . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . ….. 2

If ‘no.’ skip to Q34.

33c If Yes: why is there a difference?

34 In your area, who provides skills training for employment for TOPs?

Technical and Vocational Colleges …………………...1 Teachers College ………………….………………… 2 Employment Agencies …………… …………………3

41

(Circle all that apply.) Business Development Service providers …………….4 Youth Associations…………………………………....5 None………………………………………………….6 Other Institutions (Specify) ______________………..7

35a Have you previously provided any on-the job training support to prospective graduates from colleges?

Yes… . . . . . . . . . . . . . . . . . . . . . . . . . . . . ……… . . . . . 1 No . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . ……… 2

If ‘no,’ skip to question36.

35b If yes, for how long did you provide the on-the-job training?

1 month ………………………..………….…..............1 2-3 months ………………….………………..…….. .2 4-6 months …………………………………................3 More than 7 months …………………………........... ..4

35c Besides providing the training was there any allowance paid to the students?

Yes… . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …….. . 1 No . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . …….2

35d If yes, who paid that allowance?

The college ………….………………………..…….1 The employer …………….…………………….......2 Other (Specify):____________________ …………3

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36a What is the biggest

challenge that you have faced in terms of recruiting staff for your business?( pick one.)

Lack of appropriate skilled personnel ………………..1 High salary expectation …………………………….. 2 Finding the required number of employees ……….....3 Terms of employment ………………………………4 Limited job promotion mechanisms ……………........5 Difficulty finding female employees . . …………….... 6 Language barrier …………….…………………….....7 Other (Specify):____________ ………………….......8

Show the business owner the list of options.

36b What is the second biggest challenge that you have faced in terms of recruiting staff for your business?( pick one)

Lack of appropriate skilled personnel ……………….1 High salary expectation ……………………………...2 Finding the required number of employees ……….....3 Terms of employment ………………………….…....4 Limited job promotion mechanisms ………….….......5 Difficulty finding female employees .…........................ 6 Language barrier ……………………………….….....7 Other (Specify):____________ ……………………...8

Show the business owner the list of options.

37a Have you accessed any financing since you started your business?

Yes… . . . . . . . . . . . . . . . . . . . . . . . . …….. . . . . . . . . . 1 No . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . …….. . . . . 2

If ‘no,’ skip to Q38.

37b If yes for 37a, from which financial institution?

37c If yes for 37a, for what purpose did you use the loan for?

Expanding into other areas……………………….….1 Diversifying services/ products ………………….…..2 Starting a new/different business ……………………3 Buying more assets …………………………………..4 Buying more raw materials …………………………..5 Recruiting more employees ………………………….6 Other (specify):_________________________……..7

38a How do you rate the performance of your business currently?

Very good …………….......... . . . . . . . . . . . . . . ……….1 Good ………………… ……... . . . . . . . . . . . . . ……....2 Average ……………………. . . . . . . . . . . . . . . ……....3 Poor ………………………… . . . . . . . . . . . . . . ….…..4 Very Poor ………………….. . . . . . . . . . . . . . . ………5

38b Please explain answer to 38a.

39 If you want to expand your current business in what way would the expansion happen?

Introducing a new product………. …… ………..…… 1 Opening branches in another town. …………………...2 Diversifying services/products. . . . .. . . . . . .…. . . .. .….3 Recruiting more people ……………………………..…4 Start a new production line ………..……………….….5 Growing into a wholesaler ………………. . . . . ... . . . 6 Growing into importer/exporter…………..……..……7 Other(Specify):____________________________.…..8

40a If you want to expand your

business what do you think would be the biggest challenge that you would face?

Acquiring market information . . . . . .. . . . . . . . . . .. . . . . 1 Access to finance . . . . . . .. . . . . . . . . . . . . …….. . . . ......2 Government regulations . . . . . . .. . . . . . . . . ... ………..3 Competition in the market . . . . . . . . . .. . . . .. . . ….…..4 Lack appropriate skilled labor force. . . . . . …. . . . .. … 5 Transportation………. . . . . . . . . . . . . . .. . . . . . .. ….….6

43

Cost of raw material. . . . . . . . . . . . . . . . . . . . . ………..7 Supply of raw material . . . . . . . . . . . . . . . . . ……….…8 Expensive labor costs . . . . . . ... . . . . . . . . . . . . …….…9 Security . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . … ….….10 Other (Specify :_______________). ……..…….....…11

40b If you want to expand your business what do you think would be the second biggest challenge that you would face?

Acquiring Market information . . . . . . . . . . . . . . . . . . . . 1 Access to Finance . . . . . . .. . . . . . . . . . . . . . . . . …….....2 Government regulations . . . . . . .. . . . . . . . . ... ………..3 Competition in the market . . . . . . . . . .. . . . .. . ….…... 4 Lack Appropriate skilled labor force. . . . . . …. . . . .. .. .5 Transportation………. . . . . . . . . . . . . . .. . . . . . .. …..…6 Cost of raw material. . . . . . . . . . . . . . . . . . . . . …….….7 Supply of raw material . . . . . . . . . . . . . . . . . ……….…8 Expensive Labor costs . . . . . . ... . . . . . . . . . . …… . .. ..9 Security . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . ………...10 Other (Specify :_______________). ……..…………11

40c If you want to expand your business what do you think would be the third biggest challenge that you would face?

Acquiring Market information . . . . . . . . . . . . . . . . . . . .. 1 Access to Finance . . . . . . .. . . . . . . . . . . . . . . . . …….....2 Government regulations . . . . . . .. . . . . . . . . ... ………..3 Competition in the market . . . . . . . . . .. . . . .. . …….... 4 Lack Appropriate skilled labor force. . . . . . …. . . . . .. .5 Transportation………. . . . . . . . . . . . . . .. . . . . . .. … . . .6 Cost of raw material. . . . . . . . . . . . . . . . . . . . . ………..7 Supply of raw material . . . . . . . . . . . . . . . . . …… ……8 Expensive Labor costs . . . . . . ... . . . . . . . . . . …… . .. ..9 Security . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . ………...10 Other (Specify :_______________). ……..…………11

41 If you want to start a new business which other sectors do you see as a potential for growth and expansion?

Crop farming . . . . . . . . . . . . . . . .. . …………….…… 1 Vegetable/fruit/tree nursery …………………. …….2 Livestock rearing/fattening. . . . . . . . . . .…. . . . . …….3 Veterinary Input Supply……………………… ……..4 Manufacturing/processing …………………………..5 Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ……6 Hotels and restaurants . . . . . . . . . . . . . . . . …………...7 Transport . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . ……8 Employment agency/broker. . . . . . . . . . . . . . . ……. 9 Education… . . . . . . . . . . . . . . . . . . . . . . .. . . . ............ 10 Mining…………………………………………….. 11 Other(Specify_______________)...……………….12

42. Can we contact you about further participation in PRIME?

Yes… . . . . . . . . . . . . . . . . . . . . . . . . …….. . . . . . . . . . 1 No . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . …….. . . . . 2

44

Annex IV

Enterprise / Institution Questionnaire

PRIME Baseline Survey

Enterprise/Institution Questionnaire

This institutional level questionnaire focuses on PRIME focus enterprises and institutions that are related to PRIME selected value chains. These include, but are not limited to: Abattoirs, Live Animal Exporters, Hide and Skin Traders, Livestock Product (Milk, Cheese, Butter, etc.) Trading Enterprises, Poultry and Poultry Products Trading Enterprises, Animal Health Service Providers, Veterinary Clinics, Animal Feed producers/ Traders, etc.

Part I – Identification Particulars

101: Region

102: Zone 103: Woreda

104: Town

105: Kebele

106: House No.

106: GPS UNIT (UTM reading) 107: Enumer Code

108: Super Code

WP ELEV Easting

Northing

,

109: Name of the Institution 110: Name of the owner/Manager 111: Telephone 112: Date of survey dd/mm/year

2013

Part II – Basic Information about the institution

1 2

Serial No. Questions 1 Type of institution Animal health services = 1

Natural resource enhancement/climate information sharing = 2

Market services/linkages = 3

Financial services = 4

Others, Specify _____________________ = 5

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2 How many Employees does the institution have? (Employees refer to full time equivalent workers during previous month)

3 List 3 major commodities/ services (in terms of importance) that are sold/ rendered by the institution

1. ______________________

2. ______________________

3. _____________________

4 Which are the months of highest demand in a typical year? List three months of highest demand, starting from the highest. Codes

1. January 7. July 2. February 8. August First Highest Demand 3. March 9. September 4. April 10. October Second Highest Demand 5. May 11. November 6. June 12. December Third Highest Demand

5 Which are the months of lowest demand in a typical year? List three months of highest demand, starting from the highest. Codes

1. January 7. July 2. February 8. August First Lowest Demand 3. March 9. September 4. April 10. October Second Lowest Demand 5. May 11. November 6. June 12. December Third Lowest Demand

6 Form of proprietorship

Individual ownership = 1

Partnership = 2

Share company = 3

Private limited company = 4

Government owned = 5

Cooperative ownership = 6

Others (specify) = 7

7 If institution is individually owned, sex of owner

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Male = 1 Female = 2

8 Does the institution keep book of accounts? Complete book of accounts = 1 Incomplete book of accounts = 2 No book of accounts = 3 Years Months

9 How long has the institution been operational?

10 If institution was not operational for a certain period during the last 12 months, one major reason for operation Failure is Delay in operation = 1 Shortage of commodities = 2 No market = 3 Shortage of capital = 4 Restrictions of government rules and regulations = 5

Seasonality of the business = 6 Family problems = 7 Others (specify) = 8

11 Ownership of capital of the institution by nationality All Ethiopians = 1

51% and above Ethiopians = 2 Others (specify)________________ = 3

12 How is your business doing? Very Poor = 1

Poor = 2 Average = 3

Good = 4 Very Good = 5

13 Are you able to get bank financing (LoC, loan, etc) from formal financial intuition?

Yes = 1 No = 2

14 Does this financing meet your needs? (“appropriate”)

Yes = 1 No = 2

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15 Have you made any major investments in the business in the last 12 months?

Yes = 1 No = 2

16 Can you tell me the approx amount?

17 Did this result in any new jobs?

Yes = 1 No = 2

18 How many New Jobs? (by skill level) Skilled

Unskilled

19 Are you feeling confident about the potential for your business success in the next 12 months? Very Unconfident = 1

Unconfident = 2 Average = 3

Confident = 4 Very Confident = 5

20 How many other businesses/ traders are selling your particular products/ items in the same local area as you?

21 Do you give any of your customers’ credit? Yes = 1 No = 2

22 Are you yourself able to get credit from your suppliers? Yes = 1 No = 2

23 Who are your suppliers? Producers = 1

Traders = 2 Whole Sellers = 3

Others Specify __________________ = 4

Part III Employment in the institution 1 2 3 4 5

Serial Ethiopians Foreigners No. Job Classification Male Female Male Female 1 Managers

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Part IV Supplementary Information

Serial No. General questions 1 What was the major problem encountered while launching the business?

1. Lack of working space/housing problem Codes 2. Unavailability of commodities 3. Lack of information / advisory service First Major Problem 4. Increasing prices of commodities 5. Restriction of government rules and regulations Second Major Problem 6. Lack of skill 7. Shortage of capital Third Major Problem 8. Absence of loan services 9. No problems encountered 10. Others (specify)

2 What are the major problems encountered while running the business? Mention three major problems in order of importance. 1. Couldn’t find employees with the right skill 2. Labour union problems Codes 3. Lack of information / advisory service 4. Problems posed by government functionaries First Major Problem 5. Shortage of working capital 6. Ambiguity of rules and regulations Second Major Problem 7. Not profitable 8. Limited marketability Third Major Problem 9. Lack of working space/housing problem 10. Limitation on mobility 11. Problems with obtaining work permit 12. Cultural influence 13. Limited capacity of running the business

2 Professionals

3 Technicians and Associate Professional

4 Clerical Support Workers

5 Services and Sales Workers

6 Skilled Agricultural, Forestry and Fishery Workers

7 Crafts and Related Trades Workers

8 Plants and Machines Operators, and Assemblers

9 Elementary Occupations

Total

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14. Shortage of commodities 15. Others (specify) 16. No problems

3 Does the institution have a future plan to hire additional workers? Yes No

Permanent workers.….. 1 2 Contract workers…….. 1 2

Daily laborers…….….. 1 2 4 Have you advertised these positions plan to hire additional workers? (Ask this question if at least one yes in the question above)

Yes…..1 No…..2

5 Does the institution have a future plan to cut its work force? Yes No

Permanent workers.….. 1 2 Contract workers…….. 1 2

Daily laborers…….….. 1 2 6 Does the institution have any plan of changing the current business?

Yes = 1 No = 2 I don’t know = 3 If the answer is 2 or 3 skip to question number 5.

7 If the answer to question number 5 is 1, What is the major reason for changing? To change to a better sphere of activity = 1 The current business is not profitable = 2 Shortage of customers =3 Inconvenient location of the business = 4 Others (specify) = 5

Part V Supplementary Information 1 2

Serial. No. General questions 1 If you want to expand your business, what are the major problems encountered by the institution to expand its business?

Mention three major problems in order of importance. 1. No problems 2. Excessive tax 3. Restrictions of government rules and regulations First Major Problem 4. Unfair competition among big institution 5. Competition among small institutions Second Major Problem 6. Shortage of commodity supplies

50

7. Lack of working space/housing problem Third Major Problem 8. Lack of production machines/instruments 9. Shortage of working capital 10. Unavailability of loans 11. Shortage of markets 12. Others (specify)

2 How can the government offer help in running the business? Mention three major helps of offer in order of importance. 1. Provision of working space = 1 2. Provision of house to rent = 2 First Major help of Offer 3. Facilitating the availability of markets = 3 4. Facilitating the availability of loans = 4 Second Major help of Offer 5. Issuing rules and regulations that encourage businesses = 5 6. Facilitating the availability of commodities and services = 6 Third Major help of Offer 7. Provision of technical training = 7 8. Provision of training in accounting and trade businesses = 8 9. Others (specify) = 9