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

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.