Urban Women in the Informal Sector: Challenges and Opportunities in Case of Dera Town Oromia Regional State, Ethiopia

Abstract

Informal sector plays an important role in the provision of means of survival and creation of employment opportunities for the vast majority of poor households around the world. Despite its crucial role, operators face various challenges in the sector. Therefore, the main objective of this study was to investigate urban women in the informal sector; challenges and opportunities in Dera town. Data on the respondent characteristics, motives, challenges, coping mechanisms and possible opportunities were collected through using semi-structured interview from purposively selected sample of 70 women. Both quantitative and qualitative data were employed. Quantitative data was analyzed through descriptive statistics (frequency, means and standard deviation), Qualitative data themes also analyzed through narration analysis with interpretation. Result indicated that there are many factors that respondents raised as reasons for their engagement in tela and ketikela preparation and selling including shortage of land, disagreement, divorce and low education and like. The study also revealed socioeconomic challenges including increased market price of inputs, Lack of access to credit, Seasonal change in demand of LDS, Lack of enough working place and so on. Moreover, coping strategies were identified that helped to reduce adverse effects of those challenges. In addition, the study also explored seven major opportunities among which social capital accounts 24.29% in its first rank. The study concluded that findings of the study have proved that the access to different types of capitals determine women to take on any income generating activities.

Keywords: challenges; informal sector; opportunities; women

DOI: 10.7176/JMCR/85-01

Publication date: February 28^th 2022