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Beyond the Farm: Small and Micro Agricultural Enterprises as Engines for Youth Employment and Income in Maya City, Ethiopia

Received: 3 January 2026     Accepted: 14 January 2026     Published: 30 January 2026
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Abstract

Despite the Ethiopian government's efforts to promote youth participation in Small and Micro Agricultural Enterprises (SMAEs) as a strategy for economic development, youth involvement in these sectors remains low. The purpose of the study was to identify the variables affecting youth participation in small and micro agricultural enterprises and how this influences employment creation and income in Maya city, Oromia region, Ethiopia. The study employed a multi-stage sampling technique to select 180 youths from Maya City. Data were analyzed using descriptive statistics and econometric models. The probit model results showed that land size, comfort in group work, extension services, and awareness of agribusiness positively influenced youth participation in SMAEs, while risk aversion and educational level had a negative effect. Additionally, the endogenous regression model revealed that youth employment creation and income were significantly and positively impacted by participation in SMAEs (0.5 full-time jobs and 7009.2 Birr, respectively). If non-participants had engaged in SMAEs, employment would have increased by 0.35 full-time equivalents and income by 5499.7 Birr. This highlights the vital role of SMAEs in boosting income and employment opportunities for youth. Therefore, the study recommends introducing agricultural insurance and financial safety nets to mitigate risks, raising awareness through campaigns and educational programs, improving access to credit with tailored financial products, and fostering comfort in group work through team building and mentorship. These strategies can significantly enhance youth participation in small and micro agricultural enterprises, thereby improving income levels and employment opportunities.

Published in American Journal of Theoretical and Applied Business (Volume 12, Issue 1)
DOI 10.11648/j.ajtab.20261201.13
Page(s) 28-44
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2026. Published by Science Publishing Group

Keywords

Agricultural Enterprises, Endogenous Switching Regression, Employment, Income

References
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Cite This Article
  • APA Style

    Tsegaye, T., Yohannes, R., Abaynew, H., Dinku, A. (2026). Beyond the Farm: Small and Micro Agricultural Enterprises as Engines for Youth Employment and Income in Maya City, Ethiopia. American Journal of Theoretical and Applied Business, 12(1), 28-44. https://doi.org/10.11648/j.ajtab.20261201.13

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    ACS Style

    Tsegaye, T.; Yohannes, R.; Abaynew, H.; Dinku, A. Beyond the Farm: Small and Micro Agricultural Enterprises as Engines for Youth Employment and Income in Maya City, Ethiopia. Am. J. Theor. Appl. Bus. 2026, 12(1), 28-44. doi: 10.11648/j.ajtab.20261201.13

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    AMA Style

    Tsegaye T, Yohannes R, Abaynew H, Dinku A. Beyond the Farm: Small and Micro Agricultural Enterprises as Engines for Youth Employment and Income in Maya City, Ethiopia. Am J Theor Appl Bus. 2026;12(1):28-44. doi: 10.11648/j.ajtab.20261201.13

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  • @article{10.11648/j.ajtab.20261201.13,
      author = {Tamirat Tsegaye and Rekiku Yohannes and Habtamu Abaynew and Assefa Dinku},
      title = {Beyond the Farm: Small and Micro Agricultural Enterprises as Engines for Youth Employment and Income in Maya City, Ethiopia},
      journal = {American Journal of Theoretical and Applied Business},
      volume = {12},
      number = {1},
      pages = {28-44},
      doi = {10.11648/j.ajtab.20261201.13},
      url = {https://doi.org/10.11648/j.ajtab.20261201.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20261201.13},
      abstract = {Despite the Ethiopian government's efforts to promote youth participation in Small and Micro Agricultural Enterprises (SMAEs) as a strategy for economic development, youth involvement in these sectors remains low. The purpose of the study was to identify the variables affecting youth participation in small and micro agricultural enterprises and how this influences employment creation and income in Maya city, Oromia region, Ethiopia. The study employed a multi-stage sampling technique to select 180 youths from Maya City. Data were analyzed using descriptive statistics and econometric models. The probit model results showed that land size, comfort in group work, extension services, and awareness of agribusiness positively influenced youth participation in SMAEs, while risk aversion and educational level had a negative effect. Additionally, the endogenous regression model revealed that youth employment creation and income were significantly and positively impacted by participation in SMAEs (0.5 full-time jobs and 7009.2 Birr, respectively). If non-participants had engaged in SMAEs, employment would have increased by 0.35 full-time equivalents and income by 5499.7 Birr. This highlights the vital role of SMAEs in boosting income and employment opportunities for youth. Therefore, the study recommends introducing agricultural insurance and financial safety nets to mitigate risks, raising awareness through campaigns and educational programs, improving access to credit with tailored financial products, and fostering comfort in group work through team building and mentorship. These strategies can significantly enhance youth participation in small and micro agricultural enterprises, thereby improving income levels and employment opportunities.},
     year = {2026}
    }
    

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  • TY  - JOUR
    T1  - Beyond the Farm: Small and Micro Agricultural Enterprises as Engines for Youth Employment and Income in Maya City, Ethiopia
    AU  - Tamirat Tsegaye
    AU  - Rekiku Yohannes
    AU  - Habtamu Abaynew
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    DO  - 10.11648/j.ajtab.20261201.13
    T2  - American Journal of Theoretical and Applied Business
    JF  - American Journal of Theoretical and Applied Business
    JO  - American Journal of Theoretical and Applied Business
    SP  - 28
    EP  - 44
    PB  - Science Publishing Group
    SN  - 2469-7842
    UR  - https://doi.org/10.11648/j.ajtab.20261201.13
    AB  - Despite the Ethiopian government's efforts to promote youth participation in Small and Micro Agricultural Enterprises (SMAEs) as a strategy for economic development, youth involvement in these sectors remains low. The purpose of the study was to identify the variables affecting youth participation in small and micro agricultural enterprises and how this influences employment creation and income in Maya city, Oromia region, Ethiopia. The study employed a multi-stage sampling technique to select 180 youths from Maya City. Data were analyzed using descriptive statistics and econometric models. The probit model results showed that land size, comfort in group work, extension services, and awareness of agribusiness positively influenced youth participation in SMAEs, while risk aversion and educational level had a negative effect. Additionally, the endogenous regression model revealed that youth employment creation and income were significantly and positively impacted by participation in SMAEs (0.5 full-time jobs and 7009.2 Birr, respectively). If non-participants had engaged in SMAEs, employment would have increased by 0.35 full-time equivalents and income by 5499.7 Birr. This highlights the vital role of SMAEs in boosting income and employment opportunities for youth. Therefore, the study recommends introducing agricultural insurance and financial safety nets to mitigate risks, raising awareness through campaigns and educational programs, improving access to credit with tailored financial products, and fostering comfort in group work through team building and mentorship. These strategies can significantly enhance youth participation in small and micro agricultural enterprises, thereby improving income levels and employment opportunities.
    VL  - 12
    IS  - 1
    ER  - 

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