Assessment of rural and peri-urban youths’ participation in micro and small agricultural enterprises in South Omo Zone, Southern Ethiopia

The Ethiopian government has a package of encouraging youths to participate in small and micro agricultural enterprises by giving legal certificate for youths who were organized in-group to start the business by providing financial supports in terms of credit. However, youths are less willing to participate in agricultural enterprises. Even after being organized into groups and having supports from government, some of them were not starting the business and some were interrupting the business they have been organized. Due to these, huge amount of money from the government, which was allocated for this purpose, is not being used as expected. Therefore, this study was intended to assess factors affecting rural and peri-urban youth participation in agricultural enterprises in Bena-Tsemay and Debubi Ari woreda of south omo zone. Two-stage sampling technique was used to select 155 sample households. Logit model was used to analyze determinants of youth's participation in agricultural enterprises. The result of this study indicated that 32.3% respondents were participated and 67.7% were not participated in enterprises. Econometric results revealed that variables such as farm size, institutional capacity building, and weather road significantly affected youths’ participation in agricultural enterprises at 1% and 5% significance level. The study recommends that the provision of land for the agricultural enterprises should consider the size/type of the enterprises that youth are willingness to participate. The government should specify the institution/sector to enterprise type and consideration of all-weather roads for each enterprise type during organizing youth in different agricultural enterprises is important.


Introduction
Agricultural sector has a potential of being huge and thriving business to entrepreneurs if there is full and active government backstopping (Silva, 2010). The sector can generate higher income if it is also operated in the scientifically recommended way (Man, 2007). It is known that agriculture is a labor-intensive economic sector. Youths are also the main suppliers of labor for agriculture in countries like Ethiopia where most of the people are youths; more than 80% of the people are agrarian and most of the economy depends on agriculture. Knowing this potential, the government of Ethiopia provided various agricultural enterprises for youths to participate and play their major roles in the economy in general and to create income for themselves in particular. In doing that, the government is aimed to reduce the current unemployment rate across country in one hand and to enhance agricultural production and productivity on the other hand. The National Youth Policy indicated the significance of participating youths in the process of building a democratic system, good governance and development endeavors, and how they can be benefited fairly from the outcomes.
The Ethiopian government has a package of encouraging youths to participate in small and micro agricultural enterprises by giving legal backup/certificate for those youths who were organized in-group to start the business; by giving trainings and by providing financial supports in terms of credit. Based on approach of Ethiopian government, youths who want to participate in small and micro-agricultural enterprises are highly encouraged to be organized in groups and association in order to access different supports such as technical, financial, equipment and working place supports. However, in most parts of the country in general and in SNNPR in particular, youths are less willing to participate in micro and small agricultural enterprises. Even after being organized into groups and associations, and having different support from government, some of them are not totally starting the business and some are interrupting the business they have been organized. Due to these, huge amount of money from the government, which was allocated for this purpose, is not being used as expected. The reason behind low participation of youths, withdrawal and interruption from the business was not studied so far in the SNNPR of Ethiopia. Therefore, this study is intended to study and assess factors affecting rural and peri-urban youth participation in micro and small agricultural enterprises in selected areas of Southern Nation Nationalities and Peoples of Ethiopia.
Therefore, this study is aimed to identify the different agricultural enterprises available and the needs of youths, to identify determinants of rural and peri-urban youths participation in micro and small agricultural enterprises, to analyze determinants of effectiveness of enterprises they were participated and to identify constraints and opportunities in their involvement in micro and small agricultural enterprises in the study area.

Sample size determination and sampling technique
The formula of Yamane (1967) was employed to determine sample size for this particular study. This is because there is homogeneity in the types of enterprises available for youths in all woredas. The formula of Yamane is described as follows: n=N/ (1+N*e 2) Where, n = the sample size (155), N=total number of youths in the woreda (156478), and e =error term (0.08). Two-stage sampling technique was used to select sample households for this particular study. In the first stage, two woreda's (Bena-Tsemay and Debub Ari) from each zone was selected purposively based on high percentage of groups and associations of youths participated in micro and small agricultural enterprises. In the second stage, one rural and one peri-urban kebele (Dumma, Enchet, Ayikamer and Gazer) were selected from each woreda based on the number of groups and associations participated in micro and small agricultural enterprises.
From selected kebele's both participant and nonparticipant youths was identified. The systematic sampling technique was employed to draw samples from both participants and nonparticipant youths. The number of sample from each kebele was determined based non-proportion of youths participated in each kebele. Accordingly, a total of 155 samples respondent was selected and interviewed.

Type of data and method of data collection
Both primary and secondary data was collected for this particular study. Primary data to be collected include availability of land, access to credit, information and perception, type of small agricultural enterprises, early problem for business initialization, training to enhance skill and knowledge, product type, time of initiation and completion, role of institution, market access, socio-economic, political, and cultural constraints and opportunities on participation in micro and small agricultural enterprises was collected. Semi-structured questionnaire and PRA tools such as observation and FGD were used to collect primary data for this particular study. During FGD, a group of 8 to 12 people was selected and the groups in FGD were youths participated in MSE, Kebele chairpersons, youth representatives from kebeles, youth organizers in Woredas and Kebeles, and non-participant youths. Two FGDs per each Woreda was conducted at two kebele's (Dumma and Gazer). Secondary data was collected from different published and unpublished sources.

Method of data analysis
Both descriptive and econometric analysis methods were used. Descriptive statistics such as frequency tables, percentage, standard deviations and means were used to analyze agricultural enterprises available and the needs of youths, and constraints and opportunities of involvement in micro and small agricultural enterprises in the study area.
Econometric model (Logit model) was used to analyze determinants of youth's participation in agricultural enterprises and determinants of effectiveness in enterprises they have been involved. Effectiveness of enterprises were measured based on their plan and achievements.
If they achieved what they planned at the beginning, they were regarded as effective. Credit access, level of education, market access (distance, product demand, linkage), sex of respondent, availability to land, access to information, attitude/perception towards participation, training to enhance skill and knowledge, type of enterprise, payback period, institutional factors (political and bureaucratic issues, initial capital), and cultural and religious taboos are supposed to be determinant factors of youths participation in MSE and their effectiveness.

Data analysis
Both descriptive statistics and appropriate econometric model (Logit model) were used to analyze the data with the help of SPSS Version 23 software.

Demographic characteristics of sample youth
The result in table 1 revealed that 87.7%, of respondent youth was male. The remaining 12.3% of respondent youth were female. In terms of marital status, 76.1% of youth were married, 21.9% were single and 1.9 was divorced. A larger percentage of respondents (76.2%) were married this implies that married youths are more likely to participate in agricultural activities than unmarried ones. This is because married persons have more family obligations than unmarried persons. The educational background of the youth is believed to be an important feature that determines the readiness of youth to accept new ideas and innovations. More educated youths are expected to adopt new technologies to increase their land and labor productivity. Based on education categories the data indicated that 36.1% of the sample respondents were Illiterate, 37.5% attained elementary education, and 21.9% of the respondents had high school and the remaining 4.5% of the sample respondent's attained college and above. From the total respondents 65.2% of them had their own land and 34.8% respondents have no their own land. As from sample respondent 60%, 39%, and 1% acquire the land from government, as gift (from relatives or friends) and via rent, respectively. As depicted in table 2, the age of the respondents we ranged between 18.00 and 38.00 years, with a mean of 26.29 years. The average family size of sample farm households was estimated to be 3.84. The minimum and maximum family size was found to be 1.00 and 13.00, respectively.

Socio-economic characteristics
The results in Table 3 showed that the minimum and maximum land holdings were found to be 0.5 timad and 12 timad, respectively. The average income of respondent from crop production, livestock production, off farm activates and onfarm activates are 4190.18, 5130.65, 3910 and 9965.23, birr respectively (2009-2010).

Youths' participation in micro and small agricultural enterprises
The result in

Access to credit service
Access to credit is one way of improving youth production and productivity. Youth ability to purchase inputs such as improved seed and fertilizer is tied with access to credit. Youths with access to credit can minimize their financial constraints and buy inputs more readily than those with no access to credit. The result in table  6 show that about 93.9 percent get credit while 6.1 percent of the sample households did not take credit. The results in table 6 also show that the credit amount depends on the enterprises type. The criteria to get credit were kebele's administration card, free from any crime and jobless. Micro finance institute and government (youth job creation opportunity) were the important sources of credit in study area. About 85.7% of sample respondent get credit to purchase livestock and 14.3% get credit to purchase agricultural input. About 73.5% of sample respondent said that credit cost to loan is affordable and 26.5% said expensive. From sample respondent 93.9% said that interest rate to get credit is affordable and 6.1% said expensive. From the total participant 61.2% youth said that the credit amount they received is sufficient for their business. The payback period depends on the enterprises type as seen table 6 below.

Access to credit services
Access to agricultural extension services is expected to have direct influence on the production and marketing behavior of the agricultural enterprises. The higher access to extension service, the more likely that youth adopt new technology and innovation. This study indicates that out of the total respondents of enterprises participate youth; about 82% had access to extension services provided by development agents of the kebele (government). The remaining 18% of enterprises participant youth responded that they did not receive any extension services from government. The result in table 7 show that sample respondent's got extension services almost all from government (100%). The extension services providers were office of agriculture experts, DAs and innovative farmers. The extension service provided were training (48.8%), technical support (4.9%) and advisory or moral building (46.3%). According to the participant 31.7%, 43.9%, 19.5%, and 4.9% said that they get extension services once per month, once in 3 month, once in 6 month, and once in year, respectively. The frequency of extension services provided for producing youths is indicated in Table 7.

Access to market
The result in table 8 show that about 92%, respondent said that there is a market in their locality for their product and inputs while 8%, said that no market in their locality. About the 96% of sample respondent said that there is demand for their products in the local market. Also 90% of sample respondent said that there are no any organizations or investors that directly supply their products. The product price was set by seller (20%), buyer (58%), government (16%), and market (6%). 84% of respondent youth said that price fluctuate in different seasons. Almost all participant youth (100%) harvest their products traditionally. Regarding the distance taken to travel from business center to the nearest market place where they sold their product, farmers reported that they had to travel an average distance of 95 minutes. The maximum and minimum distances that respondents travelled to access nearest market centers were 240 and 5 minutes respectively (table 9).

Access to infrastructure
The result in table 10 show that about 92% respondent said that there is a weather road in their business area and 8% said did not .About 71.4% of sample respondent said that they had access to water and 28.6% respondent said they had no access to water. The type of water in the business area is river (48.6%), pond (5.4%), and pipe water (45.9%). According to the sample respondent 54% said that there is no electricity access in their business area.

Effectiveness of enterprises
There are different small and micro agricultural enterprises in the study area like poultry, fattening of shoat, fattening of oxen, small-scale irrigation and dairy farm enterprises. From the total participant 24% was participating in poultry and get good income but they haven't properly recorded income report, 24% in fattening of shoat and 20% in fattening of oxen and have been not getting return, 14% in small scale irrigation and 18% dairy farm agricultural enterprises have newly getting return during survey time. Moreover, to know how the enterprise are effective or not depends on getting return from business they are participating. Most of enterprises were not covered their initial cost and some of them said if we finish the initial cost we are effective. In addition, due to no consistent cost and return records checking, they are effective or not were calculated.  As revealed in survey result 77.6% of the sample respondent said that the enterprises on the hand is their choice because of its profitable than others (85.7%), it needs few capital (8.6%), previous experience (2.9%), and no other enterprises to choose (2.9%), and 22.4% of the participant youth said that the enterprises on their hand is not their interest because of lack of privilege/ freedom to choose (50%), lack of an enterprises they need (25%), shortage of credit available (25%). The challenges that affect the participant youth in the enterprises were low productivity (86.4%), disagreement in-group members (4.5%), fail to succeed as expected (9.1%). According to the sample respondent, youth there is no agricultural insurance in the study area.

Opportunity of participation in small and micro agricultural enterprises
As shown in figure 14 below, the main opportunity of participation in small and micro agricultural enterprises are almost all respondents were know each other before the formation of the group (100), Conducive government policy for the group (80), Ambition/eagerness of youths to work together in the business (92), Abiding the rules and regulations (72).

Challenges that hinder participation and success of enterprises
According to the sample respondent there are different challenges that hinder participation on small and micro agricultural enterprises like bureaucracy, weak institutional capacity, lack of commitment by officials, delay on loan provision, livestock and crop diseases, lack of electricity, market linkage and low product price in the market.

Analysis of econometric results
Econometric analysis was used to investigate factors affecting youth participation in micro and small agricultural enterprises. In this study the variables that have relationship with the youth participation in micro and small agricultural enterprises are sex of youth, age of youth, educational level, family size, total income, bureaucracy, institutional capacity, land size, marital status, weather road and credit system. The relationships of these variables with youth participation in micro and small agricultural enterprises were discussed as follows. The logistic regression model analysis result indicates that farm size (FARSIZE) exerted positive influence on the youth participation in micro and small agricultural enterprises at less than 5% significant level. If farm size can be increased by one hectare, the probability of youth participation in micro and small agricultural enterprises would increase by 3.3%. This result implies that participant with large farm size are more likely to participate in micro and small agricultural enterprises than those participant who have small land size. The model result also indicated that institutional capacity building (INETCB) affects positively and significantly the probability of participating in micro and small agricultural enterprises at less than 1% significant level. This result shows that even though there is different institution that supports the micro and agricultural enterprises such as woreda natural and agricultural office, woreda livestock and fishery office, woreda youth and sport office, woreda food security and entrepreneurship office, micro finance, and kebeles youth's job opportunity expert, the relationships between these institutions were weak according to the result. The result hints that as an institution gets strong the probability of youth participation on micro and small agricultural enterprises is increasing by 31.3%. Weather road (WETHR) had also a positive and significant influence on the probability of youth participation in micro and small agricultural enterprises at less than 1% significant level. The result indicates that, as allweather roads is available in the area the probability of youth participation in micro and small agricultural enterprises increasing by 26.2%.

Conclusion and Recommendations
This research presented important information, justification and findings concerning youth participation in micro and small agricultural enterprises in the study area. Based on the main findings of the study the following points are made. The results of the study revealed that farm size exerted positive and significantly influence on the youth participation in micro and small agricultural enterprises. The result show that participant with large farm size are more likely to participate in micro and small agricultural enterprises than those participant who have small land size. This implies that the provision of land for the agricultural enterprises should consider the size/type of the enterprises that youth willingness to participate. It was found that strong institutional capacity building affects positively and significantly the probability of participating in micro and small agricultural enterprises. This result shows that even though there is different institution that supports the micro and agricultural enterprises such as woreda natural and agricultural office, woreda livestock and fishery office, woreda youth and sport office, woreda food security and entrepreneurship office, micro finance, and kebele youth's job opportunity expert, the relationships between these institutions were weak according to the result. That means the enterprise to get different technical support from this institution/sector was difficult, so the government should specify the institution/sector to enterprise type. Weather road had also a positive and significant influence on the probability of youth participation in micro and small agricultural enterprises. The result indicates that, as all-weather roads is available in the area the youth participation in micro and small agricultural enterprises become increased.
Most of the enterprises fail in case of infrastructure, therefore, the government should consider weather road for each enterprise type while, organizing youth in different agricultural enterprises.