Research Proposal 1

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Table of Contents
Title Page
Table of
Contents ..............................................................................................
............................................ II
Abstract
.......................................................................................................
................................................. IV
CHAPTER ONE
.......................................................................................................
.................................... 1
1.
Introduction
.......................................................................................................
.................................. 1
1.1.
Background of the Study

.........................................................................................................
...... 1
1.2. Statement of the Problem
.......................................................................................................
............ 2
1.3.
Research Questions
.......................................................................................................
................ 3
1.4. Objectives of the Study
.......................................................................................................
............... 3
1.4.1 General objective
.......................................................................................................
................ 3
1.4.2 Specific objectives
.......................................................................................................
................ 3
1.5.
Significance of the Study
.......................................................................................................
....... 4
1.6.
Scope of the Study

.......................................................................................................
................. 4
1.7.
Limitation of the Study
.......................................................................................................
.......... 4
1.8. Structure of the study
.......................................................................................................
.................. 5
CHAPTERTWO
.......................................................................................................
.................................... 6
2 Literature Review
.......................................................................................................
.............................. 6
2.1. Definition of concepts
.......................................................................................................
................. 6
2.2. Theoretical Approaches of Unemployment
....................................................................................... 6
2.2.1 Monetarists Theory
.......................................................................................................
............... 6
2.2.2 Marxist Theory
.......................................................................................................
...................... 7
2.2.3 Classical Theory

.......................................................................................................
.................... 7
2.2.4 Neoclassical Theory
.......................................................................................................
.............. 7
2.3. Types of Unemployment
.......................................................................................................
............. 7
2.3.1 Frictional unemployment
.......................................................................................................
...... 8
2.3.2 Structural unemployment
.......................................................................................................
...... 8
2.3.3 Cyclical Unemployment
.......................................................................................................
....... 8
2.3.4 Seasonal Unemployment
.......................................................................................................
....... 8
III
2.3.5 Technological Unemployment
..................................................................................................... 8
2.4 Major causes of Unemployment
.......................................................................................................
.. 9
2.4.1 Population Growth

.......................................................................................................
................ 9
2.4.2 Slow Economic Growth
.......................................................................................................
........ 9
2.4.3 Patterns of Investment
.......................................................................................................
........... 9
2.4.4 Migration
.......................................................................................................
............................... 9
2.4.5 The Education System
.......................................................................................................
........ 10
2.5. Consequence of Unemployment
......................................................................................................
10
2.5.1. The Effects of unemployment on the youth
.............................................................................. 10
2.5.2. The Effects of Unemployment on the Personal
........................................................................ 10
2.5.3. Emotional and Social Effects
....................................................................................................
10
2.5.4..The impact of unemployment on the political and Economic
.................................................. 11
2.6. Empirical Literature Review

.......................................................................................................
..... 11
2.6.1. Nature of Unemployment in Developing Country
.................................................................... 11
CHAPTER THREE
.......................................................................................................
............................. 13
3. Research Methodology
.......................................................................................................
.................... 13
3.1. Research Design
.......................................................................................................
........................ 13
3.2. Methods of Data collection
.......................................................................................................
....... 13
3.2.1. Primary Data (Key Informant interview & Questionnaire)
...................................................... 13
3.3. Target Population
.......................................................................................................
...................... 14
3.4. Sample Techniques
.......................................................................................................
................... 14
3.5. Data Collection Tools
.......................................................................................................
............... 14
3.6. Methods of Data Analysis and Discussion

....................................................................................... 14
3.7. Ethical Consideration
.......................................................................................................
................ 14
3.8. Time Schedule and Budget Plan
.......................................................................................................
... 20
3.8.1 Time Schedule
.......................................................................................................
........................ 20
3.8.2 Budget Plan
.......................................................................................................
............................. 21
References
.......................................................................................................
............................................ 22
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IV
Abstract

The research will conduct in Yeka sub city wereda 05 which is found in Addis Ababa city
withthe aim of finding out the cause, effect, and trend of unemployment since 2017 to
2019.Theresearch will uses mixed approach that a systematical and simple random sampling
techniqueadditional with primary and secondary source. These dates will present in
respondents narration,table and percentage and finally give recommendation for the
study.According to the researchers will bestudy the cause of unemployment that will identify
byinvestigation are low payment, choice or work, lack of job, choice of work area and
beingilliterate. The major consequence of unemployment people will psychological,
economic, political, and social and health related problems. Finally the researchers willbe
recommend thateffective control of population growth, encourage investment, reduce rural
to urban migration,improving educational system and active participation of governmental
and other concern bodieswill be the solutions forward by the researchers.
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CHAPTER ONE1.

Introduction
Unemployment is a term referring to individuals who are employable and seeking a job but
isunable to find a job. Furthermore, it is those people in the workforce or pool of people who
areavailable for work that does not have an appropriate job. Usually measured by
theunemployment rate, which is dividing the number of unemployed people by the total
number
of people in the workforce, unemployment serves as one of the indicators. The part of the stu
dycontains background of the study, statement of the problem, research questions,
objectives of thestudy which are general and specifics, significances, scope, limitations,
background of the studyarea and structures of the study. All of them are as follows.
1.1.

Background of the Study
Ethiopia is one of the developing countries with high population growth rate. From the
historical perspective, Ethiopia population tends to show increment from time to time
(WB, 2017:20-3).Inmost developing countries, including Ethiopia, agriculture is the backbone
of their economy.Specifically, it plays great role for the growth of domestic production,
feeding of the
population, providing employment opportunities, source of income and raw material for othe
rs economicsectors. But, still it is traditional in productivity due to inadequate, variability and
seasonality ofrainfall, lack of improved technologies, poor infrastructures, low soil fertility,
absence of surplusmarkets and so on (Henok, 2006 p 13-5 ).The high growth of population
and low performance of the economy have created gab betweenthe producer and the
consumer of goods and services such as food, shelter, clothing, andeducation. The major
determinants of development in Ethiopia are unemployment, populationgrowth,
underemployment, inequality, low level of education, lack of finance, weak institutionand
natural and human factors (Abebe, 1990 p41-5).
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Ethiopia is characterized by rapid population growth, migration and its mismatch with
economicgrowth. The real gross domestic product was growing less than two percent per
annum during inthe
1990’s while,
population expended by about three percent per annum on average. As a result,
the country’s economy could not generate adequacy and
well-paying job opportunities for thelabor force and tend to increase unemployment. The
youth seem to suffer the most from thissocio-economic problem was those who complete the
10
th
and 12
th
grades in Ethiopia, onlylimited number of joins colleges and universities. Even of those who
graduate with diploma anddegree, many stay for long in search of job. The problem of
unemployment has many adverseramification of on the unemployed and the society at large.
Desperation and disappointment maylead many to self-destructive and anti-social behaviors
and actions, such as drug addiction,alcoholism, organized crimes (like robbery, tariffing),
suicide and violence against women, theftand begging (Zerihun, 2005 p207-8).Today,
unemployment is one of the controversial issues and it has emerged as the most symptomof
lack of development in almost all developing countries. Unemployment mostly occurs
inyouth people and urban areas (Samuelson, 2002:81-4).In the case of Ethiopia,
unemployment isone of the alarming problem in all urban centers, one of these is Addis
Ababa city. This studywill be try to assess the causes and consequences of unemployment in
Addis Ababa city, takingin the Yeka sub city wereda 5 as a case.
1.2. Statement of the Problem
Unemployment is almost a feature of capitalist and socialist society. It is not only for
thedeveloping countries that affected by unemployment is a problem but, it also for
developedcountries. The extent, feature, and causes of it vary from country to country. In
Ethiopia, particularly in Addis Ababa city, there is a high degree of unemployment
and underemploymentthat challenge the development of the city (Henok, 2006 p456-
59).Hence, some researchers who studied the problem of unemployment in Addis Ababa city
can benoted here. For example, Tamiru Abate (2005
) in his study, “The attitude and job expectation,
particular among the younger and educa
ted “ in Addis Ababa
city the case of Yeka
subcitywereda1 argued that the choice of youngster and educated person toward the jobs an
dother persons attitude toward the jobs that causes the raise of unemployment, TayeAbebe

3
(2007)in his study,
“Unemployment and underutilization of labor force” in Addis Ababa city
the case of Arada sub citywereda 07 argued that most of the time the causes of
unemploymentand underutilized are raise from the government side, i.e. the government
cannot available jobopportunity for the labor force , and GetaweyKebede (20099
) in his study, “The shortage of
additi
onal job opportunity” in Addis Ababa
city the case of Gullele sub city district 02 arguedthat like the idea of the above Taye.
This study will may be filling the knowledge gab betweenthe above researchers to assess the
causes and consequences of unemployment in Yeka subcitywereda5, Addis Ababa.
1.3.

Research Questions
These studies will beaddressing the following major questions.


What are the major factors that give unemployment in the study area?


What are the effects of unemployment in the study area?


What are the effects of unemployment on the socio- economic developmentefforts in the
study area?


What policy measures need to take in order to tackle in these problems
1.4. Objectives of the Study
1.4.1 General objective
The general objective of this study will be to examine the causes and consequences
ofunemployment in Yeka sub city wereda5, Addis Ababa.
1.4.2 Specific objectives
Base on the general objective, the specific objectives of the stud will be:


To will be examine the causes of unemployment in Yeka subcitywereda5, Addis Ababa.


To will be assess the consequences of unemployment in Yeka subcitywereda 5, Addis Ababa.
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

To will be assess the consequences of unemployment on socio-economic activities inYeka sub
citywereda5, Addis Ababa.


To will recommend some possible measures to solve the tackle problems of unemployment
in Yeka sub citywereda5, Addis Ababa.

1.5.

Significance of the Study
This study will may be significance for:


For government, it will be provide information about the sub city, unemployment and ithelps
to design strategies and policies at the government to reduce the rate ofunemployment
within the sub city in particular and the country in general.


For sub city, this study will be creating favorable environment to identifying the majorfactors
that leads to creation of unemployment.


For community, it will be creates awareness about the causes and consequences
ofunemployment in the society.


For other researchers, the study will be also down benefits from it for other researcherswho
like to conduct further research on this topic.
1.6.

Scope of the Study
Taking time, financial, data source, and other constraints in to consideration, the study will
bedelimiting to the Yeka sub citywereda5, Addis Ababa.
1.7.

Limitation of the Study
During conducting this research, the researchers will be facing some problems. Among some
ofthe problems are; financial constraints, shortage of written documents on the
problem,inaccessibility of computer and internet services, shortage of time and
unwillingness respond ofrespondents on the questions
.

5
1.8. Structure of the study

The research paper will beorganized into five chapters: Chapter one deals with the
introduction part of the paper and the second chapter discussed the review of related literatu
res about thesubject matter followed by chapter three deals with research methodology used
in the research.In chapter four data analysis performed in the research will be extensively
covered. Finally, inchapter five of the document the summary, conclusions and
recommendations of the researchwith recommendation for future research will be included.
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CHAPTERTWO

2
Literature Review
2.1. Definition of concepts
The greatest sociologist and economist Karl Marx (1976:143-4) defined the term
unemployment,it is not a permanent features, it is the state of affairs which can be observed
at a particular periodof time, it can be removed by appropriate government fiscal and
monetary policies measures andapplies only able bodied people of working age (Marx
1902:143-4 quoted in Zerihun, 2005 p208).From these different point of view authors
generalized that unemployment is restricted only tothe number of the labor force who has
ability to work and willingness to work, but does not getwork at the current normal market
wage rate in the given period of time (Henok, 2006:458-9)Many factors influence the size of
labor force at a given time. Some of the more, size of
total population, age composition of the population, activity rate, and ability of the work forc
e. Thetotal labor force is classified into unemployed and employed. Those who are actively
searching but unable to get a job are unemployed. Therefore, employment refers the portion
or labor forcethat have job while unemployment refers to the portion a labor force who have
not but activelysearching for a job (Henok, 2006 p452-3).
2.2. Theoretical Approaches of Unemployment2.2.1 Monetarists Theory
Monetarists explain unemployment as the existence of natural rate of unemployment which
isconsistent with price level stability or with constant rate of inflation. Natural rate
ofunemployment is also a rate of voluntary of frictional unemployment consistent with long
runequilibrium in the labor market. The natural rate is not necessary fixed; anything
that increaselabor market fiction will increase the natural rate. For monetarists only
continuous monetaryexpansion and accepting inflation will keep marginal workers in
employment, so they advise

7
directing macroeconomic policies to control inflation while using microeconomic policies
toreduce the long run natural rate of unemployment (Todaro and Smith 2006 p312).
2.2.2 Marxist Theory
According to Karl Marx, unemployment is inherent within the unstable system of capitalist
and periodic crises of mass unemployment are to be expected. The function of the
proletariats within
the capitalist system is to provide are serve to army of labor “that creates down
pressure on
wage.” This accomplish by dividing the proletariats in to surplus labor (employers),
underemployment (unemployment) and unemployed (Hyman, 1998 p167-8).
2.2.3 Classical Theory
The essential feature of this theory is that the labor market forced of supply and
demandresponds to change in real wage. Thus, unemployment is the consequence of real
wage beingand remaining too high to allow the labor market clear. Government wage
regulation andespecially powerful trade unions are identified as significant causal
factors. This unemploymentin the classical system relies upon market not clearing (Elliott,
1997 p419).
2.2.4 Neoclassical Theory
Neoclassical has concentrated on the so called “choice of teaching us “by explaining
unemployment as a tech
nical problem of “cost minimization.” This approach avoids focusing on
the social process which determines the incorporations of labor power to production and
capitalare view
ed as “factors of production.” a
s objects and not as social relation with one another.Unemployment is explained either as
a result of factor price, i.e., the relative cheapness ofcapital in relation to labor, or in terms of
technological considerations related to the substitutedability of capital for labor or what has
been dynam
ited of the “factor proportion problem”(Elliott
,1997 p421-3).
2.3. Types of Unemployment
The problem of unemployment occurs because of different reasons. Economists use the
reasonsto classify the types of unemployment. Accordingly, there are three commonly
knownunemployment types. These are frictional unemployment, structured unemployment,
and cyclicalunemployment and the others are seasonal and technological unemployment.
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2.3.1 Frictional unemployment
Frictional unemployment is a temporarily phenomenon between jobs and looking new jobs.
Itmay take place in various ways when some workers are temporarily out of work while
others arechanging jobs. The imperfect mobility of labor due to lack of labor market
information exist forthe time being and inhabiting geographical or occupational movement of
unemployed workersinto vacant jobs are the cause of frictional unemployment
(Mitanni,1998 p434)
2.3.2 Structural unemployment
Structural unemployment is unemployment resulting from permanent shifts in the pattern
ofdemand for goods and services or from change in technology such as automation
orcomputerization. Structural unemployed workers have skills that are not in demand by
employers because of permanent change in the economy. Structural unemployment often re
quires thatworkers who lose their jobs as a result of such changes learn new skill or move to
other locationsto find satisfactory new jobs (Hyman, 1998 p166).
2.3.3 Cyclical Unemployment

Cyclical unemployment is the amount of unemployment resulting from declines in real gross
dodomestic product during the period of contraction or recession, or in any period when
theeconomy fails to operate at its potential (Hyman, 1998 p166-7).
2.3.4 Seasonal Unemployment

It is found in a country, Weather is developed or underdeveloped. It implies not
onlyunderutilization labor power, but also capital stocks used in industries of seasonal
nature.
This poses a serious problem or wastage of productive resources for an underdeveloped coun
trywhich is already deficient in capital resources (Hyman, 1998: p13-14).
2.3.5 Technological Unemployment

It is a type of unemployment takes place in an economy as a result of
technologicalimprovement. Due to the introduction of new machinery improvement method
of productionlabor saving devices, etc. some workers tend to be replaced by machines, so
workers leave fromtheir jobs (Hyman, 1998 p168-9).

9
2.4 Major causes of Unemployment

Unemployment occurs when the economy fails to absorb the labor force. There are varies
causethat contribute the rise of unemployment. Some of them are: rapid population growth,
migration,low level of investment, slow economic growth, low level of education, technology,
inflation,
political problems social problems…etc.

2.4.1 Population Growth

One of the fundamental factors attributed to high unemployment in Ethiopia is rapid growth
of population and mismatch with economic growth. Population growth is the major cause of
growthof the labor force. Hundreds of thousands of young people join the labor force every
year, putting preserve on the economic to create jobs that should absorb the additional labor
force.

2.4.2 Slow Economic Growth

Insufficient economic development in the country is responsible for the occurrence
ofunemployment. Growth of output is a precondition for the growth of employment and
theeconomics of growth largely depends on the nature of growth .Growth strategies may
employtechnologies that could be labor intensive or capital incentive in nature (Hyman, 1998
p 321).
2.4.3 Patterns of Investment

The poor facilitation of investment in Ethiopia is a factor that extends the problems
ofunemployment. The growth of investment in Ethiopia is not satisfactory due to different
factors,such as low saving, low infrastructure, political instability, lack of good governance,
low marketdevelopment (especially in rural areas), problem relate to land acquisition, low
interest rate andothers. Due to these factors, foreign investors no attract to invest the
country as a result there isno chance to create new job opportunists for the job seekers
(Henok, 2006 p504-5).
2.4.4 Migration

One of the most important components of population dynamics that has serous implication
forthe level of employment is the direction and volume of migration. The urban labor grows
asresult of the combined effect of the natural increase in urban areas and from rural-
urbanmigration. Migration is one of the factors which aggravate unemployment. Rural-
urbanmigration to day should be viewed as a major contribution factors to urban surplus
labor forcewhich continues to accelerate the serious of urban unemployment problem
(Birhanu, 2001:11-3).
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2.4.5 The Education System

The educational system of the country is designed on the ground that it does not provide
thestudents with marketable skills is being more of theoretical. Because students lack of
trainingfaculties, lack of vocational and professional guidance. The economic sectors could
not provideemployment for all graduates from higher education. Moreover, those employed
could from not be produce as expected. Graduate have the political to acquire skills but
they are generally verylittle practical skills needed in the work place. There is also a mismatch
between the type of workfor which people are trained and willing to work on one, and the
job opportunities available onthe other (Birhanu, 2001 p15-7).
2.5. Consequence of Unemployment
According to Martin Kornblum (1999 p412-19) noted that, unemployment has many effects
onthe society. Some of them are:
2.5.1. The Effects of unemployment on the youth
As he identified, unemployment is a particular serious problem for the
young .Unemploymentdisrupts the normal transition to adult hood the young unemployed
are denied the opportunity to be independent from parents and often experience long period
poverty (Kornblum 1999 p397).
2.5.2. The Effects of Unemployment on the Personal

Isolation of most unemployment peoples has no close friends, never visited neighbors and
few belonged to organizations or engaged in organized activities (oilmen 1993:35 cities in
Kornblum1999:398). When work times are cut, participation in community life declines and
the sense ofisolation grows. Thus, those who have been squeezed out of the labor market,
and those whoseldom get in to it are often isolated from their communities and from society
at large.Unemployment causes low self-confidence and low self-esteem are at the risk to lose
their placein the society and turn to seclusion, drug abuse and sometimes even criminality
(Hyman, 998 p182).
2.5.3. Emotional and Social Effects

Prolonged joblessness causes serious psychological and social change. Significant part of
todayworks force has been denied not only the benefits of a regular and sufficient income but
alsoemotional rewards of the a steady jobs the sense of self-worth that comes from doing a
job wall

11
and having other value that performance, the sense of community of stared by daily
associationwith colleagues is sum the feeling that one is participating in society and
contributing to it.Unemployment is a major social problem because enormous suffering as
unemployed workersstruggle with reduced incomes. It is a well-known fact that
unemployment has a directrelationship with some social problems or anti-social activities like
increase poverty, socialunrest, theft, robberies, violence potential psychological harm, loss of
motivation and increase incrime rates (Zerihun, 2005 p210).
2.5.4.
.
The impact of unemployment on the political and Economic
That millions are permanently exclude from the productive process is s condition, which
cannot be tolerated for any length of time. The unemployed individual wants work. He wants
to earn because he considers the opportunities, which wages afford higher than doubtful valu
e of permanent leisure in poverty. He despairs, because he is unable to find work. From amon
g theunemployed, the adventures and the aspiring dictators select their storm troopers
(Sernessls,2004 p127-8).Persistently high unemployment create huge cost for individuals and
for the economy as wholesome of these costs are difficult to value and measure especially
the longer term social costs.Some of the impact of unemployment on economic are, loss of
income, negative multipliereffect, loss of national output and fiscal output.
2.6. Empirical Literature Review

These sections assess the evidence finding of various studies from the literature in general
andthose with particular emphasis on the nature of unemployment in developing countries.
2.6.1. Nature of Unemployment in Developing Country

The nature and magnitude of unemployment is different across in different geographical
areas.According to Mitanni (1998:89-90) noted that the nature of unemployment in
developingcountries is differ from that of the advanced countries. In economically advanced
countries,unemployment occurs due to trade cycle, thus, the majority problem is that
demand deficient, itarises during recession or depression period. Unlike developed countries,
developing countriesare characterized by large scale disguised unemployment, especial in
agriculture sector of ruralareas the problem of in developing countries is that of under
employment in one country, the
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incidence of unemployment in poor country is speed over the bulk of the population instead
ofnarrow range of in particular group of works.ILO (1998:34-5) reported that the number of
unemployed people throughout the world has 150million people that were seeking and
available for work but could not find it. But few yearsearlier, the number of unemployed
people in the world has been 140 million people.Unemployment has now in the third world
countries become one of the serious and chronic problems in ever developing
country.According to Efere(2004:245) state that the type of unemployment in under
developed countriesin Africa, Asia and South America were structural or cyclical
unemployment (economicrecession) may be the closest description. It is difficult to describe
it as such as some countrieslike Mali in Africa and Bangladesh in Asia have been in the same
state of high unemploymentsuch unemployment in developing countries are a result of
infrastructural skilled work force andinvestment in the economy. This intern is result of lack
of political instability, mismanagement,lack of foreign currency reserves and problem with
debt financing.According to Todaro(1992:215-16) mention that today many developing
countries are plagued by a historical unique combination of massive rural to urban
population movements, stagnationagricultural productive and grouping unemployment.
Substantial unemployment in underdeveloped economies is probably one of the most
striking symptoms of their inadequatedevelopment. It wide spectrums of poor countries
open unemployment. In urban areas new affect10-20% of their labor force, it is because of its
relationship to the problem of third
world poverty, therefore, that the unemployment issue occupies such a central place in the st
udy ofunder development.

13
CHAPTER THREE3. Research Methodology
In this study, the researcher will be employing both qualitative and quantitative
(mixed)approaches, to be drawn from primary and secondary data sources.
3.1. Research Design
Research design is plan or collecting and analyzing data in economic efficiency and
relevantmanner. It facilitates smooth sailing of research operation (Solomon, 2005:14).
Accordingly, theresearchers will be use descriptive type of research design. The rationale
behind for theresearcher using this type of research design is that; enable the researcher
towill obtain completeand adequate information on the intend problem.
3.2. Methods of Data collection
3.2.1. Primary Data (Key Informant interview & Questionnaire)
Every community has people who by accident, experience, talent, or training can proved
themost complete or useful information about aspect of life. These people are key
culturalconsultants, also called key informants (Kottack, 2011 P54). The researchers will be
selectpeoplewho are knowledgeable about unemployment and its effects on the society,
economic andgovernment.

Questionnaire producer tend to become indirect and impersonal; often the respondents fill in
theform (Kottack, 2011 p54). In this study, the researcher will be use questionnaire paper
questionto gather data from the sub city community by distribution the question paper of the
problem.The question papers will be distributing among literate people who able to read and
understandand give meaning to the question in hand.
3.2.2. Secondary Data
In this study, the researchers will be use secondary data sources to gather data about the
problemthat helps to our fill gab of the primary data sources to have more understanding and
organize
the problem and the researchers will be review written document such as books, magazines,
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14
newspaper, annual reports, official documents and we will use website to connect more data
onthe problem.
3.3. Target Population

The study will be focus on one of the wereda of Yeka sub city. In the sub city thereare
14weredas, out of these the study will be concentrates on the wereda5. So that the target
populationof the district will be concentrate with the people who live inyeka sub city
wereda5, the weredaofficial and employees within the district.
3.4. Sample Techniques
To conduct this study, the researchers will be use different sampling techniques among
thesampling techniques; the researchers will be mostly select simple random and systematic
sampletechniques to avoid biasness among the different groups and to make the result of the
researchmore acceptable.
3.5. Data Collection Tools
As data collection, the researchers will be intending to use both open ended and closed
endedquestion and semi structure personal interview.
3.6. Methods of Data Analysis and Discussion
To conduct this study, the researchers will be use descriptive research method. For the
reasonanal size will the present data to form that easy to understand and supplement by
using a simpletabulation of table and percentage used appropriately.
3.7. Ethical Consideration
In this study, the researchers will be considering the following ethics.


We will be keep personal confidentiality while conducting the research.


We will be free from personal bias when collecting, organizing, and analyzing thedata.

20
3.8. Time Schedule and Budget Plan
3.8.1 Time Schedule
No ActivityYear

2019/2020Months
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
1
Topic Approval *
2
Proposal preparation *
3
Proposal presentation and
*
4
Preparation ofQuestioners/interview
*
5
Review of literatures *
6
Data collection *
7
Data organization *
8
Data analysis *
9
Paper writing *
10
First draft submission *
11
Final draft submission *
12
Defense *
Annex 2.
Error! Filename not specified.
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213.8.2 Budget Plan

No. List of Items Unit Quantity Unit price(Birr) Total price(birr)1
Stationary and
materialsA4 paper Packet 4 500 2000Pen Packet 1 300 300Clip board No 3 50 150 Note
book No 3 50 150Mobile card - -- -- 500Photo copy Page 500 1.50 750Printing Page 500 2.00 1000fla
sh-disk No 2 200 400CD No 5 30 150Binding No 4 20 80
2
Respondents expense Birr -- -- 500
3
Transportation Birr -- -- 800
4
Personal expenses Birr -- -- 2000
5
Advisors Birr -- -- 8000Sum total Birr -- -- 16780
6
Contingency rate (10%) Birr -- -- 1678Grand total Birr -- --
Annex 1.
18458
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FPA & Mgt Article Review Final April ,2021
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ARTICLE REVIEW REPORT ON PROJECT FINANCING, IMPLEMENTATION AND CONTROL
PRACTICE A STUDY ON SELECTED BUSINESS ORGANIZATIONS IN ETHIOPIA.
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COLLEGE OF BUSINESS AND ECONOMICSDEPARTMENT OF MANAGEMENTMBA

PROGRAMFUNDAMENTAL OF PROJECT ANALYSIS ANDMANAGEMENT
(MBA 613)ARTICLE REVIEW REPORTON PROJECT FINANCING, IMPLEMENTATION

ANDCONTROL PRACTICE:A STUDY ON SELECTED BUSINESS ORGANIZATIONS
INETHIOPIA.SUBMITTED TO DR. MENGSTU G.
Prepared By: ID Number1.

Worash Engidaw SGSE/237/12
APRIL 2021DESSIE, ETHIOPIA
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A Review Article
[DATE]
Email : worash22@gmail.com , Wollo university, April 2021 Dessie, Ethiopia
1
A Review of Project Financing, Implementation and Control Practice:A Study on Selected

Business Organizations in Ethiopia.
Prepared by: Worash Engidaw Submitted to: Dr. Mengstu G.
Abstract
The purpose of this review is to review what came in some studies and articles that talkabout
the topic Project Financing, Implementation and Control Practice: A Study onSelected
Business Organizations in Ethiopia Journal article published after 2010 in order tostudy the
project Financing, Implementation and Control Practice that are carried out inthese tasks in
various organizations. The review provided an explanation of both tasks,taking into account
what came from the recommendations in those studies. Finally, thefinding of the survey
indicated that most projects are financed using either internal sourcesor borrowing from
banks, most firms use traditional methods to schedule, monitor andcontrol capital projects.
Modern project scheduling and monitoring techniques are

WorkBreakdown Structure (WBS), Gantt Chart, PERT, Critical Path Method (CPM) andKanban,
t
he most popular controlling techniques in Ethiopia the selected firms includetraditional

methods like progress report, Gant Chart and field visit.Keywords: Resource scheduling,
Project success. Capital projects, implementation,financing, monitoring and control.
Introduction

Once a project is selected after going through rigorous appraisal process, promoters mustalso
decide the way in which the capital projects will be financed. Project delay is
common problem especially in developing countries like Ethiopia mainly because of problems
in theimplementation and control.Project finance may come from a variety of sources. The
main sources include equity, debtand government grants. Financing from these alternative
sources have importantimplications on project's overall cost, cash flow, ultimate liability and
claims to projectincomes and assets.Capital budgeting involves choosing projects that add
value to a company. The
capital budgeting process can involve almost anything including acquiring land or purchasingfi
xed assets like a new truck or machinery.Capital budgeting, which is also called investment
appraisal, is the planning process used
to determine whether an organization’s
long-term investments, major capital, orexpenditures are worth pursuing.Capital investments
are long-term investments in which the assets involved have usefullives of multiple years. For
example, constructing a new production facility and investingin machinery and equipment
are capital investments. Capital budgeting is a method of
estimating the ﬁnancial viability of a capital invest
ment over the life of the investment.
A Review Article
[DATE]
2
Purpose of the article / problem Statement

The statement of the problems indicates the capital investment typically,
✓

Account for large amount of funds of the organization,
✓

have a fundamental effect on the future cash flows of the organization once aninvestment
decision has been taken,
✓

It is very costly to do so, once the funds have been committed.
Objectives of the study
The main objective of this study is to investigate the financing, implementation and
controllingaspects of capital projects taking evidence from Ethiopia. Specifically, this study is
aimed atanswering the following basic questions:

✓

How do firms in Ethiopia finance their capital projects?
✓

What are the problems associated to implementing capital projects in Ethiopia?
✓

Do firms in Ethiopia undertake continuous monitoring and evaluation of capital projects?
Data used and Method of data analysis.
The research design adopted in this study was descriptive in nature. Data were
collectedmainly from primary sources. Survey questionnaire were developed and distributed
tosample firms in Addis Ababa, Ethiopia. Stratified random sampling method was used
inselecting the sample firms.Descriptive statistical tools and tables were used in the analysis
and presentation and thedata gathered were processed using Statistical Package for Social
Science (SPSS 20) andMS excel and Descriptive statistical tools and tables were used in the
analysis and presentation.

Valuation about the article
The conclusion of the article is aligned with objective of the study as follow,
✓

How do firms in Ethiopia finance their capital projects? the survey result indicated inEthiopia,
firms heavily depend on internal source and borrowing from banks to finance capital project.
Tax exemption and provision of some facilities by the government can also be takenas source
of finance This implies that Ethiopian firms have limited menu to finance theircapital project
which in turn lead to high cost of financing and the survey result indicates mainsources of
financing capital projects in Ethiopia; internal source, borrowing from banks,industry
development fund, and initial public offering.
✓

Problems associated to implementing capital projects in Ethiopia? the survey indicated
mainsources of financing capital projects in Ethiopia; internal source, borrowing from
banks,industry development fund, and initial public offering.
✓

Do firms in Ethiopia undertake continuous monitoring and evaluation of capital projects?The
survey indicated that the Ethiopian firms use traditional control tools mainly periodicreport
and the use of ICT in capital budgeting is limited.
✓

This study I observe there the findings are highly contributing to
the Projectmanagement since the best practices in finance and project management areas,
andworks with them to get to the debt, equity, and return of the project, considering it inthe
enterprise environment.
Advertisement
A Review Article
[DATE]
3
Strength & weaknessStrength
✓

The article is well written- concise and grammatically correct.

✓

The title is clear, accurate and unambiguous.

✓

The abstract offers a clear overview of the study including the research problem,sample,
methodology, findings, and recommendations.

✓

The purpose of the study/research problem is clearly identified.

✓

objectives, a research question, or hypothesis is identified very well..

✓

The target population is clearly identified, the sample is selected.
✓

The participants fully informed about the nature of the research.

✓

It is sufficient descriptive information given to allow the reader to conclude that the
author’s interpretations were g
rounded in the data.

✓

Books, journals, and other media alluded to in the study accurately referred.

Weakness
✓

Of course, the title is well clear, accurate and unambiguous but, at the end of the conclusionit
is very broad the general finding of the research all the problems are happing in Ethiopiaor
the result is working equally since, there will be better performance between one state tothe
other one unless otherwise the research questioner or the survey cover all over
Ethiopianinvestment.
✓

Corresponding to the Ethiopian population, firms, the collection of data is very few in orderto
concluded 100% Project Financing, Implementation and Control Practice in Ethiopia.

A Review Article
[DATE]
4
Findings , recommendation,

conclusions,
The survey result indicated,
✓

The main sources of financing capital projects in Ethiopia; like internal source, borrowing
from banks, industry development fund,
✓

Initial public offering.
capital investments are implemented by the firm itself or both the firm and external
contractor,
✓

Most of the firms, managers at different level are responsible for monitoring and
controlof investment projects.

✓

Today’s business environment is dominated by rapid and continuous change, which
has resulted in reshaping organizational approaches in order to enhance
their performances therefore, Journal review are very important in order to achieve theorgan
izational objectives by identifying the gaps hence, the Project Financing,Implementation and
Control Practice: A Study on Selected Business Organizationsin Ethiopia has important role for
our course fundamental of project analysis andmanagement.
Advertisement
A Review Article
[DATE]
5
References:
Deresse Mersha Lakew (2017) Project Financing, Implementation and Control Practice:
AStudy on Selected Business Organizations in Ethiopia.Olga V. Luskatova, Marina V. Roberts
(2019) the
Use of Project Financing Factory atImplementation of Infrastructure Projects in Russia

Retrieved from,
https://en.wikipedia.org/wiki/Project_finance retrieved on April
07,2021. https://www.semanticscholar.org/paper/Project-Financing%2C-Implementation-
and-Control-A-onretrieved on April
07,2021.https://journalofbusiness.org/index.php/GJMBR/article/view/2225/2127retrieved
on
April12,2021.https://www.unescap.org/ttdw/ppp/ppp_primer/41_sources_of_project_finan
ce.htmlretrieved on April 12,2021. https://www.projectmanager.com/blog/project-
management-techniques-for-every-pmretrieved on April 07,2021.
Error! Filename not specified.Error! Filename not specified.
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Research Proposal 1

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3

Background of the Study

1.2. Statement of the Problem

1.4. Objectives of the Study

1.4.2 Specific objectives

Significance of the Study

Scope of the Study

Limitation of the Study

1.8. Structure of the study

2.1. Definition of concepts

2.2. Theoretical Approaches of Unemployment

2.2.1 Monetarists Theory

2.2.2 Marxist Theory

2.2.3 Classical Theory

2.2.4 Neoclassical Theory

2.3. Types of Unemployment

2.3.1 Frictional unemployment

2.3.2 Structural unemployment

2.3.3 Cyclical Unemployment

2.3.4 Seasonal Unemployment

2.4 Major causes of Unemployment

2.4.1 Population Growth

2.4.2 Slow Economic Growth

2.4.3 Patterns of Investment

2.4.5 The Education System

2.5. Consequence of Unemployment

2.5.1. The Effects of unemployment on the youth

2.5.2. The Effects of Unemployment on the Personal

2.5.3. Emotional and Social Effects

2.5.4..The impact of unemployment on the political and Economic

2.6. Empirical Literature Review

2.6.1. Nature of Unemployment in Developing Country

3.1. Research Design

3.2. Methods of Data collection

3.2.1. Primary Data (Key Informant interview & Questionnaire)

3.3. Target Population

3.4. Sample Techniques

3.5. Data Collection Tools

3.6. Methods of Data Analysis and Discussion

3.7. Ethical Consideration

3.8. Time Schedule and Budget Plan

3.8.1 Time Schedule

3.8.2 Budget Plan

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213.8.2 Budget Plan

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COLLEGE OF BUSINESS AND ECONOMICSDEPARTMENT OF MANAGEMENTMBA

(MBA 613)ARTICLE REVIEW REPORTON PROJECT FINANCING, IMPLEMENTATION

Email : worash22@gmail.com , Wollo university, April 2021 Dessie, Ethiopia

A Review of Project Financing, Implementation and Control Practice:A Study on Selected