Youth Entrepreneurship Development: Strategy to Reduce Unemployment in Addis Ababa

Various studies have confirmed the importance of youth entrepreneurship development to reduce the high rate of unemployment in countries like Ethiopia, where there is a large number of youths unemployed. This study investigates the relationship between entrepreneurship development and youth unemployment in Addis Ababa. It was identified that unemployment in Addis Ababa was not only an issue of uneducated youth but also has roots in the youth with university degrees. Also, the large number of youths migrating from rural areas to Addis Ababa makes the challenge of unemployment even worst.
Youth entrepreneurship development is seen as a solution to the challenge of unemployment in Addis Ababa. Youth entrepreneurship development is the best approach that helps youths utilizes their full potential to create their jobs. Entrepreneurship opens doors to youth employment, begin a new business, have them networked with different people, etc., but it needs to empower them with the right set of
skills and opportunities.
This study is concerned with the reason for the high rate of unemployment in Addis Ababa, the extent to which entrepreneurship development reduces youth unemployment, and major barriers to youth entrepreneurship, etc. It also investigated Addis Ababa youth entrepreneurship development policy. The result of this study revealed that entrepreneurship is an antidote for the high rate of unemployment, and it is an engine for the economy of the country. It creates employment for unemployed individuals, opens ways for innovation, helps youth to create wealth, etc. It was also indicated that the increased corruption, inadequate and inefficient infrastructural facilities, and youth entrepreneurship policy were identified as some of the major barriers to youth entrepreneurship development in Addis Ababa. The findings revealed that the government has a long way to go to develop youth entrepreneurship in Addis Ababa. The government must genuinely recognize the impact of entrepreneurship in reducing the current high rate of youth unemployment in Addis Ababa and must provide an enabling environment for youth entrepreneurship. Based on the findings, encouraging and engaging youth in entrepreneurship, revising youth policy in the way it attracts the majority of unemployed youth to the sector, etc., are recommended.