The past decades witnessed that neither the private sector nor the government could
provide an adequate socio-economic safety net for the poorest of the poor in the Third
World. The community-based self-help approaches were hence widely used as
alternative means to help the poor and marginalised to cope with livelihood shocks. This
study examined the extent to which indigenous iddirs (local neighbourhood
associations) and the externally-funded self-help groups (SHGs) could transform social
capital into entrepreneurship thereby enhancing sustainable livelihoods. The study was
conducted in three Southern Nation and Nationalities and People’s Region (SNNPR)
rural districts, namely, Shebedeno, Wonago and Humbo. Mixed (quantitative and
qualitative) methods were used to collect field data. Accordingly, closed and openended
questionnaires and interview schedules were developed in English and then
translated into Amharic (the national language). Instruments were field tested for validity
and thereafter adjusted. A total of 220 (166 male and 54 female) people participated in
the study. Data were entered into an Statistical Package for the Social Sciences (SPSS)
database, and analysed by using basic descriptive statistics. Qualitative data were
transcribed and analysed using Microsoft Office tools.
The findings indicate that the SHGs’ members were relatively better educated
than the rest of the population and some of them used this opportunity to pursue
employment in government and the private sector. With regard to poverty status, iddirs
members were poorer than those of SHGs (15.5% of the iddirs members reported that
they are destitute compared to others in the community, as opposed to 3.3% of SHGs
members). The study reveals that the livelihoods of some members of iddirs and SHG
(particularly the latter) improved as a result of their involvement in these institutions
although, at this point, the impact is insignificant. With regard to socio-economic
decision making, more SHG members were involved in participatory decision making.
However, iddirs leaders were still the dominant decision makers. The SHG level of
participatory decision making could be the result of capacity building efforts by the
promoting organisation, particularly, the Ethiopian Kale Heywet Church (EKHC). The study also shows that some of the iddirs and SHGs members were involved
in informal rural entrepreneurial activities. However, their involvement did not indicate
the utilisation of micro loan taken from the iddirs and SHGs for business purposes (97%
of the iddirs and SHGs respondents utilised microcredit loans for consumption and other
related purposes). On the other hand, the empirical evidence reveals that the amount of
loan that iddirs and SHGs respondents received was very small. The general practice is
giving small loans particularly to SHG members with repayments expected to begin as
quickly and frequently as possible.
Transforming social capital into entrepreneurship requires a cooperative
approach, i.e. the involvement of development actors so as to enhance communities’
endeavour to achieve their livelihood objectives. Despite the wide prevalence of social
capital in Ethiopia, this study indicates that its effective utilisation in community
empowerment and sustainable livelihoods remains a challenge. Social capital is found
to have a limited role in social entrepreneurship development and promotion not
because it does not have potential, but because of the limited role of promoting
organisations. The study shows lack of strong linkage between iddirs and promoting
organisation (NGOs and Government). The study thus underlines the need for
improving network and links with iddirs and SHGs and promoting organisations so as to
create an enabling environment for sustainable livelihoods in the three rural districts
under scrutiny. / Development Studies / D. Litt. et Phil. (Development Studies)
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:umkn-dsp01.int.unisa.ac.za:10500/10190 |
| Date | 25 July 2013 |
| Creators | Tefera Talore Abiche |
| Contributors | Swanepoel, Hennie |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | 1 online resource (xii, 181 leaves) |
| Rights | University of South Africa |
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