| Abstract: | The central objective of the study is to assess the contribution of youth revolving fund for youth employment opportunities in Lideta Sub-City. A descriptive study was employed to complete the objectives of this paper. In order to get relevant data from the target populations both quantitative and qualitative methods were used. So, instruments which were used to collect the data from the selected samples were questionnaire for MSEs as a major tool and focus group discussion for officials in Lideta Sub-City as a supportive tool. A total of 100 MSEs Members were selected to be the subjects of the study and other participants of focus group discussion who have connection in the sector. The data collected through questionnaires were analyzed using SPSS and figures and qualitative method of data analysis were executed to the data collected from focus group discussion. Both the qualitative and quantitative data were analyzed together according to the situation permits and due to convenience. The results of the study generally indicated that people starting MSEs under YRF were facing numerous difficulties both at start-up and during the operation. The study indicated that lack of sufficient finance is the main problem of businesses followed by lack of managerial training and experience, lack of right business location, poor market access and information, shortage of working capital, infrastructure constraints and limitations from government rules and regulations. Finally, the study concludes YRF is not on the right truck to absorb youth unemployment and generate income to the economy, so the possible recommendations to alleviate the problems is all concerned organs should integrate and work jointly on youth revolving fund. Trainings like skill gap, perception towards organizing and awareness on the importance of MSEs should be prepared and delivered by government and micro financial institutions. Youth beneficiaries should build strong saving habit and use the fund for the intended purpose. Finally both government loan providers should arrange special lending and repayment system. |
