Suchergebnisse

This study focuses on the role of the informal sector in alleviating poverty in Yeka sub city, Addis Ababa, Ethiopia. The objectives of this research were exploring general context in which the informal sector operates, assessing the living and working conditions of informal sector operators, exploring the contribution of the informal sector to reducing poverty, identifying coping mechanism of poverty in the urban informal sector and forwarding recommendation. A descriptive survey design was used and a purposive sample of two respondent groups, namely government officials and the informal sector participants themselves was drawn, and personal interviews conducted and questionnaires were filled. The purpose of the interviews of the first respondent group was to discover their perception of the informal sector in Addis Ababa City in general, and in Yeka sub city in particular. This perception was vital for it was clear that this group influenced government policies much more than the general public. The informal sector participants themselves filled a questionnaire to learn how the informal sector operated, its scope and benefits, how successful it was in alleviating poverty in Yeka sub city. The results show that there were mixed feelings among the people in each of the two respondent groups. Although many of the government officials were positive, mainly because the government's policy of free enterprise and promote the formalization of the informal sector publicly, they still believe there is a need to control the sector's operations. More than 83 percent of the informal sector participants are making a comfortable livelihood through their activities despite some difficulties. The lack of employment in the formal sector and the desire to survive were found to be the two pressing problems that enhance the growth of the informal sector in Yeka sub city. The participants could further expand their informal business activities if access to credit facilities and working space were made available. However, further research is required into the size and contribution of this sector to poverty alleviation and economic growth. Keywords: Informal Sector, poverty alleviation