JIGJIGA UNIVERSITY

SCHOOL OF GRADUATE STUDIES

Master of business Administration

THE ROLE OF SOMALI CHAMBERS OF COMMERCE AND SECTORAL

ASSOCIATION IN COMPREHENSIVE REFUGEE RESPONSE TOWARDS
ENTREPRENEURSHIP DEVELOPMENT OF SOMALI, ETHIOPIA

JIGJIGA UNIVERSITY COLLEGE OF BUSINESS AND ECNOMICS,

SCHOOL OF GRADUATE
STUDIES, DEPARTMENT MASTEROF BUSINESS ADMINSTRATION

BEZUNEH DERSE TASSMMA (BA)

ADVISOR: DR.JAGANNADHARAO.YADAVILLI

A THESIS REPORT SUBMITED TO JIGJIGA UNIVERSITY, SCHOOL

OF GRADUATE STUDIESCOLLEGE OF BUSINESS AND ECNOMICS,
DEPARTMENT MASTEROF BUSINESS ADMINSTRATION

JANUARY, 2021
JIGJIGA, ETHIOP
i
THE ROLE OF SOMALI CHAMBERS OF COMMERCE AND SECTORAL
ASSOCIATION IN COMPREHENSIVE REFUGEE RESPONSE TOWARDS
ENTREPRENEURSHIP DEVELOPMENT OF SOMALI REGION, ETHIOPIA

JIGJIGA UNIVERSITY COLLEGE OF BUSINESS AND ECNOMICS,

SCHOOL OF GRADUATE STUDIES, DEPARTMENT MASTEROF
BUSINESS ADMINSTRATION

BEZUNEH DERSE TASSMMA (BA)

MAJOR ADVISOR: DR.JAGANNADHARAO.YADAVILLI

A THESIS REPORT SUBMITED TO JIGJIGA UNIVERSITY, SCHOOL OF

GRADUATE STUDIESCOLLEGE OF BUSINESS AND ECNOMICS,
DEPARTMENT MASTEROF BUSINESS ADMINSTRATION

JANUARY, 2021
JIGJIGA, ETHIOPIA

2
 DECLARATION
I the undersigned declare that this thesis entitled the role of Somali chambers
Of commerce and sectorial association in comprehensive
Refugee response towards entrepreneurship development of Somali region, ETHIOPIA
Is my original work and has not been presented for a degree in any other university or
organization, and that all sources of materials used for the thesis have been duly acknowledged.
Declared by: Name: bezuneh derse Date: Signature:

3
 Abstract:

Every day, the world hears about increasing refugee crisis in some part of the world. It is now
becoming common to see new faces from Syria on streets of Addis Ababa, begging for help. This
shows how the issue or refugees is not a matter of a single country. People will flee to save their
lives. It is in human nature, to fight for survival. It is also human nature, moral and legal
obligation to lend a hand for those in need. There are millions of refugees relying on the help of
international community. This study shows the need for cooperation and implementation of
CRRF as a whole and particularly in Ethiopia in order to provide refugees a chance to live in
harmony and dignity. It shows how CRRF play a significant role in protecting refugee rights and
benefiting refugees and host community and entrepreneurship in Somali region.
This data was collected by using semi structured questionnaire because Theprimary data collected
through interview and questionnaires to get meaningful information about existing practicesand
challenges of balanced scorecard implementation it provides uniform information which is important for
quantities research design and also used for focus group discussion, in order to fulfill the qualitative part
of the research techniques

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 Acknowledgements

Thanks to almighty god I am especially indebted to my advisor Dr.Jagannadharao.Yadavilli

(Associate Professor) Jigjiga University who has been cooperative and available to devote
part of his valuable time in correcting my enquiry. I would also like to express my
indebtedness to all those who helped me in various ways in writing this paper: DR
.hassen abduahi Bade , Somali camper of commerce and sectorial association president and jigjiga
UNHCR office

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ACRONYMS

ARRA - Administration for Refuge and Returnees Affairs

CRRF - Comprehensive Refugee Response Framework
DFID - Department for International Development
ECOSOC - Economic and Social Council
FDRE - Federal Democratic Republic of Ethiopia
HRPs - humanitarian response plans
RRPs - Refugee response plans
ICCPR - International Covenant on Civil and Political Right
ICESCR- International Covenant on Economic, Social and Cultural Right
IDPs - Internally displaced people
CESCR - International Covenant on Economic, Social and Cultural Rights
NCRRS - National Comprehensive Refugee Response Strategy
NGO - Non-governmental Organization
OAU - Organization of African Unity
SNNP - Southern Nation, Nationalities and People
CEDW - Convention on the Elimination of Discrimination against Women
CRC - Convention on the Rights of the Child
UDHR - Universal Declaration of Human Rights
UN - United Nations
UNDAF- United Nations Development Assistance Framework
UNGA - United Nations General Assembly
UNHCR - United Nations High Commissioner for Refugees
VERA - Vital Events Registration Agency

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 Table of Contents
Approval sheet II
Declaration III
Acknowledgment IV
II. Table of contents V
List of table IX
List of abbreviations and acronyms XI
I. Chapter: One / Introduction
1.1 Background of the study 10
1.2 Statement of the problem 20
1.3 Research questions -23
1.4 Objectives of the study 23
1.4.1 General objective of the study 23
1.4.2 Specific objective of the study 23
1.5 Significant of the study 24
1.6 Scope of the study 24
1.7 delimitation of the research 25
II.CHAPTER TWO:
LITERATURE REVIEW

2.1 geography of entrepreneurship 26

2.2 Three relational mechanisms 28

2.3 Acquiring resources 30

2.4 As amenities 33

2.5 The geography of social networks 34

. 2.7 Implications for industries and regions 6 Implications for entrepreneurs-----------------36

2.9 the role of CRRF on the protection of refugees in Ethiopia-------------------------------------42
2.10. Recent refugee protection mechanisms in Ethiopia-----------------------------------------43
2.11 The FDRE Constitution 44

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2.12 The Ethiopian Refugee Proclamation--------------------------------------------------------44
2.13 Right to freedom of movement and residence in Ethiopia--------------------------------- 45
2.14 Refugees’ Right to Wage-Earning Employment in Ethiopia-----------------------------46
2.15Benefit of CRRF for host community 46
III.Chapter Three
Research methodology
3.1 Research frame work 48
3.2 Research area 75
3.3 Research design 75
3.4 Source of data 76
3.5 sampling tequnique 76
3.6 Instrument of data collection 76
3.7 Data analyses 80
IIV. Chapter four
Data analysis and interpretation
4.1 research analysis and interpretation
4.2 Data presentation and analysis 81
Somali chambers of commerce and sectoral assosation Public private dialogue
forum - 93

V.Chapter five:summary,conclusions and recommendation

5.1 recommendation 68
5.2 Limitations
5.2Conclusion 69
Limitations
Reference 77
vi

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 LIST OF TABLES

Table Title Page No.

No.

1 Somail chamber {agriculture,industry and service } 72

2 Somail chamber distance from jijga 78
3 Somail chamber service type 81
4 Somail chamber agriculture 82
5 Somail chamber industry 83
6 Somail chamber service 84
7 Refuge and retun host plan respondent of age 84
8 Refuge and return host plan Respondents of sex 85
9 Refuge and retun host plan Respondents of education 86
10 Refuge and retun host plan Respondents of years of service in organisation 87
11 . Somali champers geo data and need assment 88
12 Refuge and retun host plan 89
13 Refuge and return host economic economic 90
14 Refuge and return host cluster 90
15 Refuge and return host plan Respondents of experience 91
16 Refuge and return host plan Respondents of tax number 91
17 Refuge and return host plan Respondents of education PPD 91

18 Refuge and return host plan Respondents of bn e birr 91

19 E serves 91

20 Evidence {letter ,leaflet and declaration} 106-110

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 CHAPTER 0NE

Introduction
Ethiopia Chambers of commerce and sectoral associations are organizations established to
serve and keep the interest of their members. This study sought to identify the factors
affecting the performance of chambers of commerce and sectoral association in Ethiopia.
Empirical investigation was conducted using mixed research design with quantitative and
qualitative research approach. Purposive sampling was used for selecting the cities and
proportionate stratified followed with simple random sampling technique was used to
select out the respondents. Descriptive statistics and correlation and regression model was
applied for data analysis.Finding of the study indicated that,there is positive and
statistically significant relationship between independent and the dependent variables.
Furthermore, regression analysis indicates that all the factors considered in the study
affects the performance of the chambers of commerce and sectorial associations. From all
factors considered in the study, government law has greater effect on the performance of
the chambers. The study recommends that, government officials and policy makers should
properly understand factors and conditions that constitutes the performance of association,
since this understanding is a key to the formulation of policies, designing of appropriate
intervention strategies and practical step to improve and strengthen the performance
chambers of commerce and sectoral association
An effective relationship between the state and businesses is critical for private sector
development. The state creates the environment within which the private sector operates by

1
Providing political and economic stability, ensures human rights, provides safety and
security, develops social and economic infrastructure, puts in place trade policy, taxation
policy, competition policy, contact enforcement mechanisms, labor codes, etc. The private
sector serves as engines of economic growth by generating employment, livelihoods,
incomes, accessibility to goods and services etc. Business associations or chambers are
believed to maintain the private sector as the engine for a nation’s economy and promote
an open society and transparent government.

The Somali refugee population in Ethiopia are currently supported in two location in the
Somali Region; Jijiga (three camps) and Melkadida (five camps). Some of those residing in
Jijiga have been based in Ethiopia for over twenty years, while the majority of individuals
in Melkadida have been in the Region for eight years. A modest demographic increase is
anticipated during the year as a result of natural population growth and small waves of new
arrival into the Melkadida area due to the fluid security situation and the prevalence of
drought in Somalia. New arrivals over the previous year showed alarming malnutrition
rates

with the prevalence of Global Acute Malnutrition (GAM) at 74.1% and 37% among newly
arrived children and pregnant and lactating women, respectively. The reduced food ration
below the minimum standard of 2,100 kcal per day threaten to worsen this situation
further. The IGAD Special Summit on Durable Solutions for Somali Refugees and
Reintegration of Returnees in Somalia and the related Nairobi Declaration and the
accompanying Plan of Action provides impetus for delivering durable solutions that while
maintaining the protection space seeks to promote
the self-reliance and inclusion of refugees in countries of asylum. In this regard, the
expansion of the government’s Out-of-Camp policy, as well as national pledges concerning
access to employment and work permits, education and other benefits to which a foreign
national with permanent legal residence is entitled will be advance. Pilot interventions will
be defined to support access to the full range of legal, economic and social rights. Building
upon the successful implementation of irrigation schemes to support refugee and the host
community in crop production across 1,000 ha of land within the Melkadida. Further
expansion is envisaged to begin in line with the Government’s Pledge to make an

2
additional 10,000 ha of irrigable land available for cultivation. At the same time, while
maintaining the current scope of existing essential camp based services; which include
maintaining the current levels of water availability (20 litres per person per day), nutrition
interventions, sanitation and hygiene, health services and primary education; the
integration of cash-based interventions will be prioritized for core relief items, together
with incremental investments in durable shelter solutions. In addition, the identification of
targeted investments in utility infrastructure; particularly in the provision of water, will be
integrated within the Regional Government’s Local Development Plans. It is expected that
the planned interventions will positively support opportunities for durable solutions,
ensuring the quality provision of basic and essential services, while enabling a number of
refugees to become self-reliant through increased household income, including through
access to industrial parks and strengthening peaceful coexistence between the refugees and
the host community.
Traditionally livelihood activities implemented in support of refugees have been
agriculture or livestock-related, consist in backyard gardening, poultry and small ruminant
distributions to improve the nutritional status of households, together with a number of
skills training opportunities provided to youth within traditional trades, including welding
and carpentry.

3
To ensure tangible gains from self-reliance and a reduction in interventions that foster
dependency, improving linkages with local authority plans and policies and the private
sector will be furthered to provide a basis for facilitating gainful employment opportunities
for refugees over time. This is envisaged to include: the expansion of agricultural
opportunities through increasing irrigation works; the extension of commercial and
sustainable community-based animal health services to host community areas; agricultural
product processing and promoting value addition for export; the promotion of fodder and
commercial dairy and beef production; the consolidation of vocational training
programmes based on labour market needs, and the expansion of financial access through
village savings and loans associations in host and refugee communities to avail business
finance and training to facilitate business start-ups and expansion. In support of this
process, the GoE has outlined the following objectives and commitments under the CRRF
pledges related to work and livelihoods: to provide work permits to refugees with
permanent residence ID within the bounds of the domestic laws; provide work permits to
refugee graduates in the areas permitted for foreign workers by giving priority to qualified
refugees; the provision of irrigable land to allow 100,000 people or 20,000 households
(among them refugees and local communities) to engage in crop production; and the
construction of industrial parks to generate job opportunities both for nationals and
refugees. In this regard, the GoE plans to open a total of six parks by the end of the year
that could employ up to 100,000 persons, including 30,000 refugees in the future.
Ethiopia has well-established refugee response and coordination processes in place, based
on the Refugee Coordination Model (RCM), which are anchored in a solid framework of
refugee law and procedure. An interagency Refugee Coordination Group comprised of the
heads of agencies, and other senior staff supporting the national refugee response meets
quarterly to discuss strategic and inter-sector operational issues. Active sector working
groups include Protection, Health, Education, WASH, Shelter, Energy and the
Environment, together with a Child Protection/SGBV sub-working group who meet on a
monthly basis. The Humanitarian Country Team also forms part of the broader
consultation forum on the overall refugee response, together with UNDAF working groups
that relate to refugees. Under the CRRF, the existing coordination mechanism is being
complemented by a specific CRRF governance structure; under the auspices of the Office

4
of the Prime Minister, that

5
2. Statement of Problem

The Somali camper of commerce and sectoral association has been established in 2003
with the proclamation number 341/1995 EC asanaoutonomous and non governmental,
non

political and non profit organization and its members six city champers and eleven zones
of Somali region. The champerpromtes trade and industry, disseminating busies
information, consulting government and members of economic development and business
issues and establishing friendly relation shipwith other regional and countres champers and
exchange in arbitration in times of disputes settlement among members
Refugees flee from a dangerous situation in the hope of finding safety, security and a
chance to rebuild a future. However, for most refugees, life in exile is as bad as and
sometimes worse than the conditions fled in the country of origin.19
Most refugees are confined to camps that are close to borders of their home country. This
does not only deprive their right to move but also makes them vulnerable to cross-border
attacks. Moreover, refugees who are resettled in different parts of a host state suffer from
alienation underemployment, unemployment, and lack of access to justice, lack of
education, and other basic rights.
The main problem the implementation of comprehensive refuge response frame is
entrepreneurship , wich is will be possible to be implemented by Somali champers of
sectoral assosation

6
3. Research Question
The major question of the study is what is the role of the Comprehensive Refugee
Response Framework (CRRF) in creating a better refugee , returnees and host community
market entrepreneurship
1.How does CRRF develop entrepreneurship
2.How does CRRF address current refugee, returness and host entrepreneurship ?
3.What makes CRRF different from past refugeecurrent refugee, returness and host
entrepreneurship ?
4.What role will CRRF play in improving refugeecurrent refugee, returness and host
entrepreneurship Ethiopia?
5What are the challenges and prospects of implementing CRRFcurrent refugee, returness
and host entrepreneurship in Ethiopia? 7
4. Objective of the Study- the overall objective
The main objective of the study is to assess the role of Comprehensive Refugee Response
Framework (CRRF) in the protection and promotion ofcurrent refugee, returness and host
entrepreneurship refugee rights thereby analyzing the impacting factors from refugees and
host countries angle.
4.1. Specific Objectives of the Study

Assess how CRRF address the current refugee current refugee, returnees and host
entrepreneurship
Explore what CRRF would bring to the refugees and host countries,current refugee,
returness and host entrepreneurship different form past mechanisms, particularly Ethiopia
Assess how CRRF is related to and different from existing approaches
Analyze how of CRRF will improve refugee protection and refugee rights in Ethiopia
Examine the challenges and prospects in implementing CRRF current refugee, returness
and host entrepreneurship

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5. Significance of the Study

To transform the private sector enabling business community to be competitive in national

and international market and contribute for sustainable development Ethiopia Africa and
world market .

This study will provide valuable knowledge and understanding of the issue of
Comprehensive Refugee Response Framework. Since the issue is new and under-
researched, the study attempts to create an understanding of the role and significance of
CRRF especially for Ethiopia which is a host to near a million refugees. In addition to
academic

8
significance, the study will also have policy relevance for both state and non-state actors to
understand and strive to implement the CRRF in Ethiopia as well as other important pilots
with a large number of refugees
6. Delimitation of the Studies

There is no data toward the returnees in organized manner due to migration internal
displacement, human trafficking and illegal trade cases n Ethiopia and east Africa. The
main concern of this study is to assess the role of CRRF in improving the right and
protection provide for refugees in Ethiopia. Due to a shortage of time and lack of data
entrepreneurship data the study is limited to data and information gained from UNHCR
reports on websites, and experts working on the CRRF.
While it was relatively easier to find Eritrean and Somalia refugees in Addis Ababa,
language barriers made it impossible to get the best out of the refugees about their
circumstance in the capital

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 CHAPTER TWO
2.1 geography of entrepreneurship

Social relationships play at least three important roles in entrepreneurship. They help to
determine who sees entrepreneurship as an available and desirable career path.
Entrepreneurs use their contacts to raise funds for and to recruit employees and partners to
their ventures. Social relationships also influence where and when entrepreneurs want to
spend their leisure time. Because of these factors, entrepreneurs tend to found their firms in
the places that they live (and in the industries in which they have been employed). That, in
turn, implies that industries will tend to become and remain concentrated in a small
number of places, even when firms do not benefit from this clustering.

My route into entrepreneurship as an area of research began with an interest in economic

geography. One of the classic questions in economic geography has been: Why do firms
locate where they do? More specifically, why do firms of particular types tend to cluster
together in space?

In attempting to answer this question, a long and storied literature in economic geography
has painted a picture in which managers and entrepreneurs—when deciding where to
locate a headquarters, a factory, a retail outlet, or some other sort of site—consider all of
the possible locations available to them and then choose the ones that maximize the sales
or profitability of their enterprises. Early writings in economic geography therefore
emphasized, as explanations for geographic clustering, the importance of being near to
customers or to natural resources that served as critical inputs in production (e.g., von
Thunen (1966), Weber (1928), and Isard (1949))—such as coal and iron ore for heavy
manufacturing (Harris 1954).

Two aspects of this picture—two assumptions in these theories—have long seemed

problematic to me. The first concerns the level of calculation accorded to the actors
choosing locations. For some situations and for some industries, substantial time and effort
goes into

10
these choices. Large retailers and manufacturers, like Amazon, BMW, and WalMart, invest
substantial resources into determining just where they should locate their plants, their
stores, and their storage facilities. They almost certainly do try to choose locations that
minimize their transportation costs for materials and finished goods and that allow them to
serve as many customers as possible.

But entrepreneurs do not have the time, the information, or the resources that one would
seem to need to choose optimal locations. How then do they decide where to locate their
ventures?
One possibility is that they do not decide. When doing research for one of my first projects
on the geography of entrepreneurship, I interviewed a series of entrepreneurs to learn more
about how they thought about this question. I still recall one of my first meetings. When
asked why he located his business where he did, the entrepreneur responded “Because my
wife didn’t want a mess in the kitchen.” In other words, when asked about his choice of
location, the entrepreneur thought that I had meant why did he choose his garage instead of
some other part of his house, rather than why he chose Silicon Valley instead of some
other region. When pressed further, it became clear that he had never considered another
place. He had just started his business where he had been living. That absence of explicit
choice probably represents a common route for entrepreneurs.

But another possibility is that entrepreneurs do consider alternative locations. They just
consider fewer of them and they may only evaluate these potential places through their
intuition or even at a subconscious level, through a gut feel. The question then becomes
whether these limited choice processes approximate the outcomes predicted by theories
that assume that entrepreneurs consider locations far and wide. That is, do entrepreneurs
behave “as if” they chose locations to maximize the profitability of their businesses?

That question brings me to the second problematic assumption. Theories of location choice
have usually treated entrepreneurs and their firms as being homogeneous—identical in
their abilities, in their resources, and in their interests. But entrepreneurs vary on many
dimensions. They have different desires for what they hope to get out of their ventures
—

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many want autonomy, some seek more leisure time, a few hope to get rich. They also bring
different abilities and resources to bear. Most, for example, have prior experience in the
industries that they enter. Some have been managers before. They also vary in terms of
their levels of wealth and in the depth of their social capital.

Much of my research has been focused on trying to paint a more realistic portrait of the
entrepreneur, particularly in terms of how their social networks—their social relationships
with others—enable and constrain their ability to found firms and to succeed in these
enterprises, and particularly with respect to the question of where they locate their startups.
In other words, how do social networks influence the geography of entrepreneurship and
the geographic distributions of industries?

2.2 Three relational mechanisms

Social relationships influence entrepreneurs and their choices in at least three important
ways. The first concerns deciding whether or not they should become entrepreneurs in the
first place. The second relates to their ability to build effective organizations—to raise
capital, to hire employees, to secure suppliers, and to attract customers. The third,
meanwhile, has to do with their outside interests. Let me discuss each of these mechanisms
in turn.

Determining appropriateness

One of the first papers that I wrote examined the entry of entrepreneurs in the shoe industry
in the USA (Sorenson and Audia 2000). As part of my research, I read every biography
that I could find written about someone who had founded a shoe company. There were
more than twenty. Some of these books had almost certainly been funded by the founders
themselves and had been exercises in vanity but they provided useful information
nonetheless on the backgrounds of these founders. Interestingly, nearly every one of the
entrepreneurs described in these biographies had been employed in footwear
manufacturing prior to founding their firms, usually as the manager of a plant or as the
head of a production line. In nearly every case, the biography would also describe some
eureka moment when the future entrepreneur decided that he could start his own company.
12
Usually, the precipitating

13
event described involved seeing someone else, often the manager of another plant,
sometimes at a rival company, starting their own firm (e.g., Nunn 1953).

Seeing others, particularly those who one knows and perceives as similar to oneself,
engaged in entrepreneurship encourages people to become entrepreneurs themselves for at
least three reasons. First, it influences individuals’ beliefs about their ability to run a
business on their own. There is often a sense of “If he [or she] can do it, so can I.”
(Sorenson and Audia 2000; Bosma et al. 2012).

Second, entry serves as a signal of the attractiveness of starting a business of a particular

type (Sørensen and Sorenson 2003). If one believes that entrepreneurs choose to enter an
industry because they see promise there, then entry—particularly the entry of many
entrepreneurs in an industry in a short span of time—should lead to a perception that
opportunities abound. Seeing other become entrepreneurs can therefore raise the
expectations that potential entrepreneurs have for the probable profitability of founding a
firm.

Third, having a number of entrepreneurs among one’s family, friends, and acquaintances
also legitimates this path as a career choice (Etzioni 1987; Stuart and Ding 2006). In many
communities and social circles, founding a firm has a social cost, in the sense that it does
not have the same prestige accorded to it as does being a professional or being an
employee in a reputable firm. It may even have a stigma associated with it—the person
could not find employment. However, as more entrepreneurs enter a person’s social
sphere, founding a firm becomes seen as normal, even desirable (Sorenson 2017). The
social costs of becoming an entrepreneur decline (Etzioni 1987).

Consistent with these three factors, studies across a variety of settings have found that
being connected to entrepreneurs and former entrepreneurs increases the odds that
individuals attempt to start their own businesses. Sørensen (2007), for example, reported
that the children of entrepreneurs become entrepreneurs at much higher rates than one
would expect based on their individual characteristics. Stuart and Ding (2006) and Nanda
and Sørensen (2010) found that those working with colleagues who had founded firms in
the past more
14
frequently became entrepreneurs in the future. Falck et al. (2010) and Kacperczyk (2013)
reported similar results for those who had gone to high school and college with people who
later became entrepreneurs. Andersson and Larsson (2016) found that having entrepreneurs
as neighbors also increases the odds of an individual becoming an entrepreneur. Most
recently, in a field experiment with random assignment to being connected to an
entrepreneur, Easley and Wang (2017) reported that students who had entrepreneurs as
mentors more frequently became founders themselves. Whether or not individuals have
social connections to entrepreneurs crucially determines whether they will attempt to
become entrepreneurs themselves.

2.3 Acquiring resources

Once entrepreneurs have decided to start their businesses, their ability to access a variety
of resources then affects their odds of success. They must raise capital, recruit employees,
and secure suppliers. Social relationships again prove critical to this process.

Social connections, for example, influence the amount of financial capital that
entrepreneurs can raise. Those studying entrepreneurship have long understood that family
and friends (and fools) provide much of the earliest funding for startups (Bygrave et al.
2003; Ruef 2010). Some may believe that crowd funding will reduce the importance of
these close connections in the future. But even in crowd funding campaigns, family and
friends appear crucial to getting the process going, providing the first donations and
investments that precipitate cascades of interest from strangers (Mollick 2014; Agrawal et
al. 2015).

The reasons underlying the importance of family and friends to the early financing of
startups are at least threefold. First, any new venture involves a great deal of uncertainty,
not just about the enterprise but also about the entrepreneur as a manager. Those who know
the entrepreneurs best have the most information about whether they can pull it off,
whether they will succeed. If those best able to evaluate the entrepreneurs are reluctant to
put their own money into a venture, that also signals to others that the startup has below
average odds of success.

15
But family and friends may also provide financial capital for more subjective reasons. On
the one hand, family and friends may well have favorable opinions of the entrepreneur,
believing the person to be more able and their ideas more promising than an objective
outsider would (Sorenson and Waguespack 2006). Those close to the entrepreneur would
then have greater (false) confidence in the entrepreneur, leading them to invest, not fully
appreciating the possible downsides.

On the other hand, even if family and friends recognize that the entrepreneur and the idea
seem to be long shots, they might still invest simply because they derive satisfaction from
supporting their loved ones. Note that many family and friends loan money to
entrepreneurs without even charging them interest (Bygrave and Reynolds 2006; Bygrave
and Hunt 2008). Regardless of the reasons for them, these early investments provide
critical funding for the first days of a startup, when it faces the most uncertainty.

Professional investors, interestingly, exhibit similar patterns. Venture capitalists, for

example, rarely fund entrepreneurs with whom they do not have a prior direct or indirect
relationship (Shane and Stuart 2002; Shane and Cable 2002). In part, this probably reflects
the fact that venture capitalists can gather information—do due diligence—more
effectively on entrepreneurs with whom they share a connection (Sorenson and Stuart
2001). In part, it stems from the fact that they can also more easily advise and monitor
these companies after they have invested in them (Sorenson and Stuart 2001; Bernstein et
al. 2016). But it may also arise from biases on the part of these investors, the fact that they
likely have elevated opinions of their friends and acquaintances and their ideas and
therefore that they invest in them more readily than they should. Indeed, recent studies
have reported that when venture capitalists invest in others with whom they share a
connection, they experience lower returns (e.g., Bengtsson and Hsu 2015; Gompers et al.
2016).

As difficult as it can be to raise capital, recruiting employees can prove even more
daunting. Whereas investors can diversify away some of the risks associated with investing
in any particular startup, employees must usually commit to a single firm (Sorenson 2003).
Adding to the difficulty of recruiting, the best employees already have jobs. Entrepreneurs

16
therefore

17
cannot rely on hiring only from those who apply for a position. They must lure individuals
with secure jobs away from their current employers.

Convincing employees to join startups therefore often depends on someone on the

founding team having a strong connection to the person, perhaps as a long-time friend or as
a trusted former colleague from a prior employer (Ruef et al. 2003; Ruef 2010). The
motivation for these friends (and family) to join startups as employees, to a large extent,
parallels the reasons for them to invest in these firms. Because of their existing
relationships, they have more favorable beliefs about the prospects of these entrepreneurs
and their ventures. But they may also find tempting the prospect of spending time on a
day-to-day basis with people whose company they enjoy.

The quality of these early employees nevertheless ends up being critical to the success of
startups. These individuals help to establish the routines for these firms, the roles within
them, and the culture of the organization (Burton and Beckman 2007; Beckman and Burton
2008; Dahl and Klepper 2015). Founders with more extensive social networks, particularly
in the industries they enter, will therefore tend to recruit more qualified employees who
will, in turn, raise the odds that their firms prosper (Dahl and Sorenson 2014).

Although less has been written on other dimensions of the founding process, the
importance of social connections to entrepreneurs probably extends to their ability to
access a variety of other resources as well. For example, finding suppliers and distributors,
particularly ones that allow for more flexible contracts, may depend on the strength of the
social relationships between the entrepreneur and the owners of those businesses (Uzzi
1996). The first customers, those willing to give the entrepreneur a try, also probably come
disproportionately from the ranks of those with social connections to the entrepreneur (i.e.,
family and friends). The breadth and depth of entrepreneurs’ social networks therefore
largely determine who among them will succeed.

2.4 As amenities

One might see the first two roles of relationships as functional but social relationships also
play another important role here: they contribute to satisfaction with life. People enjoy
18
spending time with family and friends. The potential to spend more time with them will
therefore often influence the choices of entrepreneurs—of what types of businesses to start,
of whom to hire, and of where to locate (Gimeno et al. 1997; Dahl and Sorenson 2009).

An interesting recent study illustrated the importance of these social relationships to

happiness by studying the emotional well-being of people across the days of the week.
Using survey data where people reported, on a daily basis, the extent to which they had
experienced positive and negative emotions, the researchers found that people generally
had higher levels of positive emotions and lower levels of negative emotions on the
weekend (Young and Lim 2014). That, in itself, seems unsurprising. One might expect that
people would prefer the weekends to work. But they found exactly the same pattern for
those without jobs. Even the unemployed preferred the weekend. Why? Because even
though the unemployed had free time from Monday to Friday, they had few family and
friends with whom they could share this leisure time.

People will give up a lot in terms of prospective income in exchange for time with family
and friends. To get a sense of how much people value these relationships, Michael Dahl
and I looked at the location choices of individuals as a form of revealed preference. People
can often earn more by moving to a job in another region, usually because that place has
opportunities better suited to the person’s education or experience (Hicks 1932; Davies et
al. 2001). But the places with the best jobs may not be where friends and relatives live.
That fact allowed us to estimate how much potential income people would forgo to live
closer to their loved ones.

It will not surprise anyone that people have a preference for being near family and friends.
But the size of these preferences might surprise you. For example, we found that blue
collar workers in Denmark, on average, appeared to value a job that would require them to
live twice as far away from their siblings equal to a closer one that paid $1,400 less per
year— about 4% of the average income (Dahl and Sorenson 2010b). Technical workers,
such as engineers and medical doctors, placed even greater value on proximity to family
and friends, at least in absolute terms (Dahl and Sorenson 2010a). The average technical
worker appeared to equate a doubling in the distance to siblings to a $2,400 difference in

19
income

20
(again, about 4% of average annual earnings). Potential earnings, in fact, proved less
important to location choice than the proximity of a place to their current home and to the
past places that they had lived, as well as to the proximity of a place to parents and to
former high school and college classmates (Dahl and Sorenson 2010a, b).

Entrepreneurs are not any different in these preferences from employees except that they
have more control over when and where they work. Figueiredo et al. (2002), for example,
estimated that the typical entrepreneur in Portugal would forgo tens of thousands of dollars
in potential cost savings to remain in their home regions. More broadly, in determining the
choice of where to locate their ventures, attributes related to the attractiveness of opening a
particular sort of business in a particular place explained less than 20% of the variance in
where entrepreneurs chose to open their businesses (Dahl and Sorenson 2009). By contrast,
proximity to family, friends, and places where they had lived before, could account for
more than 60% of this variance (Dahl and Sorenson 2009). Surveys similarly find that
between half and two-thirds of entrepreneurs attribute their choice of location to personal
factors (e.g., Katona and Morgan 1952; Mueller and Morgan 1962).

2.5 The geography of social networks

Family, friends, and acquaintances matter to who founds firms, to who succeeds, and to
where entrepreneurs want to live. But saying that these relationships matter does not
connect them to a particular place. To connect social relationships to geography, one must
recognize that people tend to interact primarily with those who live in close proximity to
them.

Two factors account for the local nature of these relationships. The first has to do with the
opportunities to meet people. We usually meet people through the course of our daily
activities—going to work, shopping, bringing kids to school, going to church, playing in a
sports league. These activities are almost always highly local, bringing people no more
than a few miles (kilometers) from their homes. As a result, the people that we meet
typically live near us.

The second factor concerns the cost of continuing the relationship. Maintaining a
21
relationship, even with a casual acquaintance, generally requires some regular contact.

22
That might mean seeing the person by happenstance every few weeks or months. Or it
might involve arranging a meeting—coffee or lunch. In either case, the ease of developing
and maintaining these relationships depends on proximity. The odds of running into
someone regularly by chance requires them to travel to the same places at the same times
of day on a regular basis. The travel time—and therefore the cost—associated with
arranged in- person meetings also increases with distance (Stouffer 1940), though not as
rapidly. While the travel costs for arranged meetings increase on a roughly linear basis
with distance, the odds of chance encounters decrease as a function of the square of the
distance between the two individuals.

Empirically, at every spatial scale and for nearly every sort of relationship, the probability
of a social connection has been found to decline with distance (Rivera et al. 2010). Early
studies in sociology, for example, examined marriage and found that people tended to
marry those who lived in a radius of a few city blocks from their home (Bossard 1932;
Davie and Reeves 1939). Students in dormitories and employees in offices most frequently
interact with and become friends with those in the neighboring rooms (Festinger et al.
1950; Allen 1977; Marmaros and Sacerdote 2006; Kleinbaum et al. 2013). Surveys of
people’s friends find them heavily concentrated in the cities in which they live (Lansing
and Mueller 1967; Rivera et al. 2010).

Social connections tend to exist locally not just in physical space but also in social space.
Individuals therefore tend to have relationships with others similar to them—of the same
religion and ethnicity, of the same level of education, with experience in the same firms
and industries (Marsden 1988; McPherson et al. 2001). The same processes account for the
importance of proximity in social space. Those in the same demographic categories and
those of similar backgrounds tend to have the same interests and to belong to the same
organizations (Blau 1977). These activities and organizations act as social focal points that
provide opportunities for these individuals to meet and to interact (Feld 1981). For
entrepreneurs, these processes mean that their social networks will connect them most
strongly to the places where they have lived the longest and most recently and to those in
the industries in which they have worked.

23
2.6 Implications for entrepreneurs

At the level of the entrepreneur, the most direct implication of these factors is that
entrepreneurs will tend to locate their businesses in the places that they have been living
(and will enter industries in which they have worked). In other words, they will rarely
move elsewhere in search of some optimal place. Part of that geographic inertia stems from
their interest in remaining near family and friends. They would therefore willingly pay a
price for it—a compensating differen- tial in earnings.

But the importance of social networks to accessing resources also means that staying in the
places that they have lived will also generally maximize their odds of success. So,
interestingly, those most concerned with the success of their businesses should also remain
rooted in place.

Several studies have now documented that entrepreneurs tend not to move. Michelacci and
Silva (2007), for example, in a cross-sectional analysis of data from Italy and from the
USA found that entrepreneurs in both countries more commonly lived in the places in
which they had been born. That result, of course, could stem from survival bias. If local
entrepreneurs have an advantage in terms of the performance of their ventures, then their
businesses might also survive longer meaning that these local entrepreneurs would end up
overrepresented in any cross section.

But in a prospective design that followed entrepreneurs from the moment that they founded
their firms, Michael Dahl and I found similar results (Dahl and Sorenson 2009). Danish
entrepreneurs appeared most likely to start their ventures in places close to where they had
been living and working. If they moved, they would most commonly return to a place that
they had lived before. Larsson et al. (2017) recently reported similar results for recent
graduates in Sweden, who tend to start businesses in the regions in which they have gone
to school or in their hometowns.

Entrepreneurs who had lived in a region longer also appeared more successful on nearly
every dimension (Dahl and Sorenson 2012). Their firms survived longer. They grew faster
in terms of sales and numbers of employees. And they earned more profits. Overall, tenure
24
in the region appeared roughly as important as experience in the industry to the success of
the entrepreneur. Those results held, moreover, even when using the location of parents as
an instrument for the extent to which entrepreneurs had experience in the region—to
eliminate any selection effects associated with entrepreneurs remaining in those regions
precisely because they had stronger business connections in them. Michelacci and Silva
(2007) similarly found that local-born entrepreneurs in Italy and the USA had businesses
with more and better paid employees and with more capital investment.

Many have suggested that the movement of high-profile companies to Silicon Valley
serves as a counter example to the idea that entrepreneurs do best in their home regions.
Facebook, for example, moved from Cambridge to California, Palo Alto to be exact. But
not only do these companies represent the survivors—the exceptions if you will—but also
they often fit within the broader story of the importance of social connections. Many of
these migrant firms already had the support of a prominent venture capitalist or angel
investor from Silicon Valley before they moved. Facebook had Peter Thiel on board. These
active investors have extensive local networks developed over decades. When they fund a
company, they often lend their social capital to these entrepreneurs, helping them to
connect with other investors and to recruit able early employees and executives.

The other group that has sometimes been presented as an exception has been immigrants.
Although immigrants have higher levels of entrepreneurship than the population as a whole
(Borjas 1995), people rarely move to another country with the goal of founding a firm.
Instead, they move for education, employment in an existing firm, or perhaps to escape
poverty or persecution at home.

But the fact that immigrants—and even within country migrants—have one foot in their
old location and another in the new one potentially presents them with interesting
opportunities. It might mean, for example, that they have the know-how needed to bring a
new industry to the region. The shoe cluster around St. Louis, for example, arose when
German immigrants who had been involved in footwear production in Germany moved to
Missouri and began opening companies there (Clark 1928). Or, the opportunity might stem
from return migration. Someone from Israel, for example, might move to Silicon Valley to

25
get a degree

26
at Berkeley and stay in the USA to work in a semiconductor firm. After gaining experience
in the industry, he might return home and found a firm there. Indeed, Dov Frohman
followed a path not too far from that one, except that he convinced Intel to open a
subsidiary in Israel (rather than founding his own firm). Several employees of that
subsidiary ended up being the entrepreneurs who built the semiconductor cluster in Israel.

From a policy perspective, however, the importance of social relationships to successful

entrepreneurship means that regions interested in promoting startups would probably do
best to nurture their own residents. Programs to attract entrepreneurs from elsewhere—
such as the Start-Up Chile program—may bring talented individuals to a region. But
without local connections, they will find it difficult to assemble the resources needed to
succeed. Without being embedded in the community, moreover, even those who do
succeed may return home, potentially taking their ventures and any jobs that they created
with them. A more fruitful approach would involve ensuring that the region has an
infrastructure for supporting local entrepreneurs: sources of capital, mentoring, and support
services that reduce the cost of getting started.

But the exposure effects, seeding the idea that entrepreneurship might represent an
attractive and legitimate career path remains an issue. How does a community that has had
few entrepreneurs—that has few role models available—convince its residents to engage in
entrepreneurship? There, an interesting field experiment from Stanford suggests a path
forward. Students assigned entrepreneurs as mentors became entrepreneurs themselves at
higher rates (Easley and Wang 2017). In other words, even randomly assigned
relationships and ones developed in a short period of time still led to these exposure
effects. Regions therefore might consider ways to import former entrepreneurs from other
places—at least temporarily—as a means of providing entrepreneurial role models to their
residents.

2.7 Implications for industries and regions

The implications for industries seem even more interesting. Many providers of goods and
services where the customer usually travels to the provider, think of businesses such as
bars and retailing, end up being distributed fairly evenly according to the population. They
27
may

28
cluster on high streets or in malls but customers will only travel so far to go to them so
they end up being everywhere.

But the manufacturers and providers of goods and services that get delivered to the
customer can locate their production almost anywhere. Yet, study after study has found
that these industries tend to cluster in particular cities or regions (Porter 1990; Krugman
1991). Think about the film industry in Los Angeles, mechanical watch manufacturers in
Geneva, or automobile production in Detroit.

Given that most of these industries do not rely on any heavy or difficult-to-transport inputs,
the usual interpretation has been that these clusters must result from economies of
agglomeration (Marshall 1922; Romer 1986; Krugman 1991). In other words, firms in
these industries must benefit from locating near their competition. That may allow them,
for example, to share specialized suppliers (Piore and Sabel 1984; Porter 2000). In Los
Angeles, for example, one can find a wide array of unusual services, such as prop rentals
for film production. Or, it might allow them to share the costs of innovation and to adopt
innovations more rapidly (Romer 1986; Saxenian 1994; Audretsch and Feldman 1996).

But the fact that social relationships play so many important roles for entrepreneurs means
that one would expect industries to cluster even in the absence of agglomeration
externalities. The most successful entrepreneurs usually have prior experience in an
industry, meaning that they have been employed at an incumbent in the industry. As noted
previously, entrepreneurs will also tend to stay in the places that they live when founding
their firms. The combination of these two facts means that entrepreneurs in an industry will
disproportionately emerge in the same regions in which one finds existing firms in that
industry. It’s a sort of spin-off process. Even if firms do not benefit from being near their
competitors, clusters of firms will tend to form.

Perhaps the critical test in determining whether clustering stems from economies of
agglomeration or whether it emerges from this spin-off process involves examining the
performance of firms in these concentrated clusters relative to those located in regions
more remote from their competitors (Appold 1995; Sorenson and Audia 2000).
Surprisingly, few
29
studies, however, have examined this question directly. The more common approach to
estimating empirically whether economies of agglomeration exist has been to estimate
entry or employment growth as a function of industry concentration (e.g., Rosenthal and
Strange2003; Delgado et al. 2010). But the spin-off process described here would also
generate correlations between concentration and both entry and employment growth, even
though companies in these industry clusters might not perform particularly well and even
though regions overall may not benefit from this industrial concentration.

I first examined this question in the shoe industry in the USA (Sorenson and Audia 2000).
It clusters in three main places, one around Boston; another around Milwaukee, WI; and a
third in St. Louis, MO. Plants located close to their competitors failed at much higher rates
than those in more isolated locations. The most concentrated places had failure rates nearly
triple those of the least concentrated ones. If entry occurred at random across the USA, the
industry would diffuse quickly. But, because entrepreneurship in the industry concentrated
even more heavily in the places that already had a large number of shoe companies, the
industry has remained highly clustered.

I next considered the same question in biotechnology, one of the high technology
industries that people have often pointed to as an example of economies of agglomeration
(e.g., Audretsch and Stephan 1996). In the USA, biotechnology has become concentrated
in Cambridge, San Diego, and South San Francisco. Interestingly, biotechnology exhibits
very similar patterns (Stuart and Sorenson 2003). Biotechnology companies located further
away from other biotechnology companies had the highest rates of success, in terms of the
probability of being acquired or of going public. But entry continued to occur at the highest
rates in the most concentrated regions, which offered the lowest odds of success.

This general pattern has been found in other industries as well. Appold (1995), for
example, found that metalworking plants located in clusters performed worse than those in
places less densely populated with metalworking manufacturers. Sorenson (2005) found
the same patterns in the computer industry. Buenstorf and Klepper (2009) similarly argue
that the Akron tire cluster arose from spin-off processes rather than due to economies of
agglomeration. These processes may indeed affect almost all industries. Glaeser et al.

30
(1992), for example, found that, on average, cities with more concentrated employment
shares in particular industries grow more slowly than those with more diversified
economies.

Of course, economies of agglomeration may arise in some industries. They may even exist
to some extent in the industries highlighted above (cf. Glaeser 1992). The negative effects
of competition in the labor market and in the jockeying for business partners may simply
outweigh any positive spillovers at the firm level. But the fact that firms do not benefit
from co-location should lead us to be much more skeptical about whether such
externalities exist and whether clusters represent the optimal geographic distribution of
industries from a societal point of view.

These findings therefore raise important issues for public policy. In the hope of becoming
the next Silicon Valley, a large number of places around the world have introduced
programs for encouraging entrepreneurship in particular industries. But the fact that spin-
off processes play such a prominent role in the emergence and persistence of clusters
points to another potential route to becoming Silicon Valley, or at least to effective
economic development. Instead of trying to encourage entrepreneurship in an industry,
regions might instead recruit a large incumbent in the industry to locate a plant or facility
in them. Some of the employees hired by these incumbents might then become
entrepreneurs for a generation of local startups in the industry.

Just such a process of the entry of an established firm and the subsequent spin-off of
entrepreneurs in the industry appears to account for the emergence of many clusters. One
can trace the Israeli semiconductor cluster to the entry of Intel in the region. The
Bangladesh garment cluster similarly appears to have spawned from foreign manufacturers
that had moved to the country (Moustafa and Klepper 2017). Across a variety of industries,
Greenstone et al. (2010) found that subsidies to lure large manufacturers to a region paid
for themselves, in large part because they led to the entry of many additional firms in the
industry. Although they could not trace the origins of the entrepreneurs behind these
businesses, the entrants probably came from these plants, emerging from the same spin-off
processes seen elsewhere.

31
But the fact that clusters can exist and persist even in the absence of agglomeration
externalities means that policymakers should exercise caution in their attempts to build
clusters. The value of encouraging concentration relies on the idea that these spillovers
promote economic growth. Much as one would find in a portfolio of financial assets,
industry concentration in a region increases risk. If a downturn or technological innovation
has a negative effect on an industry, it will affect many employers within the region. Those
laid off may not have any local employment options. Detroit, the Silicon Valley of the
beginning of the 20th century, has become a near wasteland as the American automobile
industry has declined. In the absence of economies of agglomeration, one should prefer to
have more diversified industrial bases. In contrast to Detroit, Los Angeles, a highly
diversified region, has weathered many changes in the economic winds.

2.8 The role of CRRF on the protection of refugees in Ethiopia

Introduction This section is a brief review of the Ethiopian legal framework on the
protection of refugees and the role CRRF plays in improving the protection of refugee
rights in Ethiopia. The Horn of Africa is one of the most conflict-ridden regions in the
world. People in the region suffer from protracted political strife arising from local and
national grievance, identity politics and regional inter-state rivalries.151 Such conflicts
not only had a huge cost on the security and development of the region but also results in
the prevalence of many of the largest refugee influxes in the history of humanitarian
operation.152 Ethiopia has a long-standing history of hosting refugees. The country
continues to maintain an open door policy for refugee inflows into the country and allows
humanitarian access and protection to those seeking asylum on its territory. This led to the
flow of near to a million refugees into the country making Ethiopia the second largest
refugee host country in Africa. Ethiopia constitutes over 928,000 refugees in its 27
camps.153 Most refugees originate from South Sudan, Somalia, Eritrea, and Sudan,
Yemen.154
The majority of refugees in Ethiopia are located in Tigray, Afar, Benishangul-Gumuz,
Gambella and Somali regional states 155. Most of these regional states are the least
developed regions in the country, characterized by harsh weather conditions, poor

32
infrastructure, extremely low capacity, high levels of poverty and poor development
indicators.156 The number of refugees in the country is expected to rise following the
continuingconflicts around the region and the increasing number of refugees from Eritrea
following the Joint Declaration of Peace and Friendship, signed on 9 July 2018 by the
governments of Ethiopia and Eritrea, in which two border crossing points were reopened
on 11 September 2018.157 The Ethiopian government has taken responsibility and
protects refugees from different countries. The protection provided to such refugees is
yet to be said satisfactorily. However, the following pages will discuss the past and current
measures taken and measures to be taken for better protection of refugees in Ethiopia.

2.9 . Recent refugee protection mechanisms in Ethiopia

Ethiopia‟s legal framework related to the protection of refugees is a combination of both
international and domestic legal instruments. Ethiopia is a party to the 1951 Refugee
Convention. The other international legal instruments that complement and form part of
the Ethiopian human rights and refugee law includes the International Covenant on
Economic, Social and Cultural Rights (CESCR), the Convention on the Elimination of
Discrimination against Women (CEDW), the Convention on the Rights of the Child
(CRC), and the International Convention on Torture, Inhuman and Degrading Treatment.
At a regional level, the state of Ethiopia has ratified the African Charter on Human and
Peoples‟ Rights and is also a signatory to the 1969 OAU Convention Governing the
Specific Aspects of Refugee problems in Africa. The Constitution of the Federal
Republic of Ethiopia and the Refugee Proclamation (proclamation no.409/2004) are the
main domestic legal instruments the FDRE bases in protecting refugee rights.158 The
Constitution of Ethiopia makes provision and recognition of the inherent human rights of
foreign nationals, while the Refugee Proclamation deals with specific aspects concerning
refugees in the country.

2.10 The FDRE Constitution the Constitution of the Federal Democratic Republic of
Ethiopia (FDRE) provides that „all international agreements ratified by Ethiopia are an
integral part of the law of the land‟.159 Furthermore, Ethiopia reaffirms its commitment
to safeguarding and promoting human rights by providing a list of basic human rights in

33
chapter three of the Constitution in accordance with the provisions contained in the
Universal Declaration of Human Rights (UDHR) and all other international instruments
adopted by Ethiopia.160 There is no a clearly expressed constitutional guarantee of the
right of asylum on the FDRE constitution. However, since the ratified refugee instruments
became an integral part of law of the land, by its Art.9 (4), a conclusion can be drawn that
this right is protected under the FDRE Constitution.

2.12 The Ethiopian Refugee Proclamation (Proclamation no. 409/2004) The main
proclamation concerning refugee in Ethiopia is the Ethiopian Refugee Proclamation
(proclamation no 409/2004), which adopted many of the provisions of the 1951
Refugee Convention and the 1969 OAU Refugee Convention.
Ethiopia enacted its Refugee Proclamation in an effort to express its commitment and
desire to enact national legislation for the effective implementation of international legal
instruments and to establish a legal framework for the protection of refugees. The
expanded definition of a refugee contained in the 1969 OAU Convention and incorporated
in the Ethiopian Refugee Proclamation, provides the state with enough leverage to deal
with a wide range of situations that may give rise to refugee problems. In addition to
providing individual Refugee Status Determination, the Proclamation allows for the
recognition of
„groups of individuals‟ as refugees without subjecting them to the rigorous Refugee Status
Determination process.161 The Refugee Proclamation has an objective “to enact national
legislation for the effective implementation of the international legal instruments, establish
a legislative and management framework for the reception of refugees, ensure their
protection and promote durable solution where the condition permits.162 The provisions of
the refugee proclamation mainly promote relations between refugees, hosting communities
and neighboring countries. The Refugee Proclamation, among other things, paved the way
for:163 - Ethiopia to open its borders to people coming in search of asylum - Providing
land for camp establishment free of charge despite the environmental pressure -
Guaranteeing the physical safety and protection of refugees - Facilitating the voluntary
repatriation of refugees to their countries in safety and dignity - Increased refugee
assistance in collaboration with UN agencies that helped avail basic

34
services 161 Ethiopian Refugee Proclamation No.409 , 2004, Article 19

35
2.13 Right to freedom of movement and residence in Ethiopia
While the Constitution of Ethiopia expressly permits all persons the right to move freely
and to choose a place of residence, the Refugee Proclamation restricts refugees‟ movement
and authorizes the head of the authority to designate areas where refugees should
reside.192 Ethiopia has made reservations to Article 26 of the 1951 Convention obliges
states to allow refugees to choose their own place of residence and to move freely in the
territory, subject to any regulations imposed on aliens in similar circumstances. It is clear
that the intention of the Ethiopian government is to control and restrict the movement of
refugees by confining them to camps. These camps are separated from the social and
economic life of host communities and are mostly dependent on aid. The encampment
policy deprives refuge‟s right to freedom of movement and more importantly, infringes on
their right to choose a place of residence and live a normal life. The encampment policy is
clearly a violation of the Constitution of Ethiopia, international law and Ethiopia‟s
obligation to contribute towards finding durable solutions for refugees. There is a general
trend of confining refugees to camps making it difficult for refugees to integrate with the
host community and work towards durable solution among which local integration in one.
CRRF plays a great role in changing this circumstance where Ethiopia pledged to the
expansion of the “Out-of-Camp” policy to benefit 10% of the current total refugee
population. As a example, the introduction of an „Out-of-Camp‟ scheme in 2017 allowed
Eritrean refugees who had the means to support themselves to live in urban areas.193
Article 27 of the draft refugee Proclamation of refugees provides every recognized refugee
within the national territory, the right to liberty of movement and freedom to choose his
residence, as well the freedom to leave the country at any time he wishes to.194
2.14 Refugees’ Right to Wage-Earning Employment in Ethiopia The Ethiopian
Constitution grants only Ethiopian citizens the right to work, including other labor
rights.195 The Ethiopian Refugee Proclamation reaffirms the state‟s reservation to the
right to wage-earning employment.196 Refugees can only be considered for wage-earning
employment when there is no suitably qualified Ethiopian national for the job.197 The
chances for a refugee to be employed and granted a work permit are literally not available
under the current law. The main employment sectors and sources of income for the

36
majority of refugees are small businesses, petty trading, and opportunities for casual labor
provided by NGOs working in the refugee operation. 198 Currently, this trend is on a way
to change since Ethiopia pledged to Provide of work permits to refugees and to those with
permanent residence ID, provide work permits to refugees in the areas permitted for
foreign workers and Build industrial parks where a percentage of jobs (30%) will be
committed to refugees.199 Article 25(4) and (5) of the draft Refugee Proclamation
provides significant right for refugees to right of work. 200. This article provides refugees
the right to work. While it is still difficult to say treating refugees in the same circumstance
as the most favorable treatment accorded to foreign nationals pursuant to relevant laws
will dynamically change the refugee‟s right to work, especially due to the absence of
qualified refugees who will meet the requirement to get employment as a foreign national,
the right provided under article 25(4, 5) of the draft proclamation will play significant role
in the improving refugees right to work.201

2.15 Benefit of CRRF for host communityA host community

‟ refers to nationals of the country of the asylum who reside in close proximity to refugees.
The CRRF aims to benefit both refugees and host communities where the refugee lives.
The CRRF took full consideration in the need to assist host communities on the burden
they face while hosting refugees. Especially, almost all the African situation countries,
refugees sometimes get more quality services in refugee camps than what the host
community get from the government.205

• Questionnaire- discussion paper submitted by jigjioga university

FBE research paper .
• Interview- soamlI champer of commerce sectoral association stake
holder discussion in hamdea hotel

• Observation
• Focus Group Discussion-soamlI champer of commerce sectoral
association stake holder discussion in hamdea hotel
•

37
• Documents
- Ethiopia champer of commerce sectoral asocation 5 year plan
- Jigjiga university FBE public private dilouge study
- the Ethiopian Public Private Consultative Forum (EPPCF)
Case Study Mamo Mihretu and James Brew
- Brand new world web site
- ILO’s entrepreneurship promotion tools is a cascading
Training of Trainers structure,
- India cluster development research paper

38
 CHAPTER THREE

RESEARCH METHODOLOGY
3.1conceptual frame work
Entrepreneurship and family business

Literature Review Only a few reviews on different aspects of family businesses’

distinctiveness have been carried out in the last decade. However, these studies mostly
focused on specific topics such as financial performance [9],

familiness (Frank et al. 2010 [10]), corporate governance [6] or internationalization

(Pukall and Calabrò 2013 [11]), but did not aim to analyze how researchers define their
object of investigation, the family businesses. They often placed special emphasis on
particular issues without discussing about the choice of a suitable definition in detail
instead of explicitly trying to systematically analyze which definition should be applied
under which conditions (e.g., Mazzi 2011 [12]).

Academics should not be accused for this behavior since they intend to further
elaborate existing research on specific topics. Nevertheless, research on family business
definitions is also crucial to enhance findings in the entire field of family firms so that the
39
definitional issue should be again set on the agenda because the necessary condition for the
development of an independent theory of family businesses is an unambiguously defined
population. Even if sufficient conditions for high-quality research, such as reliable
assumptions concerning the empirical investigation, are fulfilled, scientific goals can
hardly be reached in the absence of the necessary condition, an explicitly defined family
business variable (Bhattacherjee 2012 [13]). First review studies, which refer to the
ongoing debate about a consistent concept to uniformly define family businesses,
predominantly discussed advantages and drawbacks of different definitional approaches
and pointed to the need to undertake efforts so as to establish a basis for a unified
definition. However, they have not found ways to solve the definitional ambiguity to date
(e.g., Dekker et al. 2013 [14]). One of the latest comprehensive studies on definitional
issues has been conducted by Sharma in 2004 [15].

This overview about the field of family business studies focused on reasoning why
family firms should be analyzed separately by exclusively looking at the level of family
involvement.
Refugees and other forcibly displaced flee conflicts and violence. Legal refugee status
therefore assumes that refugees will be hosted for a finite period until the conflict that
caused them to leave their country of origin ceases. Yet, as conflicts become
increasingly

protracted and difficult to resolve, refugees remain displaced for prolonged periods,
sometimes decades. Estimates indicate that the average duration of protracted refugee
situations has been drastically increasing6, with approximately two thirds of the total
refugee population in protracted situations at the end of 2017 (13.4 million refugees).7
When refugees arrive in a locality, whether in a refugee camp or in an urban setting, they
are faced with the challenge of “fitting in”, a process which can be fraught with
difficulties such as lack of economic and learning opportunities, scarcity of available
resources, and restrictive refugee regulations. The longer the duration of displacements,
the higher the likelihood that dissatisfaction, hopelessness, and frustration among forcibly
displaced increase. Furthermore, where refugees remain in camps for prolonged periods,
environmental degradation and natural resource deprivation become more acute, thereby
creating a ground for friction between hosts and refugees. Often, refugees are placed in
40
“already environmentally-hostile arid locations with minimal vegetation and variable
access to sufficient water”8 where competition over natural resources is exacerbated.
Finally, developing and least developed countries, many of whom already struggle with
high unemployment and scant economic opportunity, host approximately 85% of
refugees9. The shift from temporary to protracted displacement in host countries that
generally struggle to ensure the economic well-being of their own populations calls for the
need to devise more effective, long-term solutions. Entrepreneurship promotion is one of
them. Encouraging small business creation in refugee-affected areas may prove beneficial
at three different levels:
1. It can help restore refugees’ dignity by reducing their dependency on aid and offering
them an alternative source of economic realization 6 UNHCR Global Trends 2015 7
UNHCR Global Trends 2017 8 Martin et al. (2017) 9 Ibid. 1 Why is entrepreneurship
promotion in forced displacement settings important?
PART A rough guide to entrepreneurship promotion in forced displacement contexts 2 2. it
can turn refugees into productive assets to the host country’s economy and create new jobs
for refugee and host community members. 3. it allows refugees to upgrade their business
development skills in preparation for their return. The next section will further explore the
contribution of entrepreneurship promotion in refugee contexts.
1.2 Contributing to economic growth and social cohesion through entrepreneurship
Entrepreneurship promotion tools are key to equipping refugees with the skills they need
to run a business

41
and to pursue revenue-generating activities more generally. By helping refugees and host
community members create sustainable and growth-oriented businesses, entrepreneurship
promotion indirectly also helps create employment opportunities for local communities.
Furthermore, promoting entrepreneurship reinstates refugees with dignity and a self-
determination regarding their day-to-day life.
As entrepreneurship can take many forms, not just in terms of the size of business
(micro, small, or medium), but also regarding the type of business and the sector, it
constitutes an avenue for self-expression and ownership over one’s economic situation. a.
Benefits for refugees Entrepreneurship comprise multiple benefits for the refugee
populations themselves. By increasing self-reliance and reducing aid dependency, self-
employment helps restore refugees’ dignity. Research suggests that refugees often decide
to launch their own business either to avoid being dependent on welfare benefits.

42
restrictions make it harder for refugees to start a business. Because they are prohibited
from exiting the camp, refugees are unable to buy the necessary inputs to run their
business or access the nearest market to sell their products to a larger consumer base.
These restrictions hinder refugees from developing sustainable livelihoods. Moreover, they
also lead to fewer interactions with the host communities. Lack of exchanges between
refugees and host populations may deepen the gap between both communities, thus
fostering stigmatization and discriminatory behaviours. Encampment policies therefore
imply a double-burden for refugees. Economically, camp confinement forces refugees into
aid dependency and economic inactivity. This may lead to situations of “brain waste” for
refugees who cannot leverage their personal competencies. Socio-psychologically,
encampment may exacerbate frustrations, as refugees find themselves unable to contribute
to their host societies and deepen the refugee-host community divide. c. Limited access to
finance Refugees often struggle to access credit from formal banking institutions due to
the absence of identification documents, the lack of credit history and the lack of
collateral.
The risk of return or resettlement renders banks reluctant to engage with refugees, even
when the latter have been in the country for years. Formal banking institutions may refuse
to lend to refugees, as they may consider that to be a risky investment given the absence of
financial safeguards. The legal status refugees often receive in their host countries may
prevent the issuance of the required documents and further hinder their ability to open a
bank account and request loans. Moreover, lack of access to finance may be linked to
stigma and stereotypes associated with the refugee population. Loan providers may find it
hard to detach themselves from their prejudice against refugees and continue to perceive
them as not trustworthy. This can have spillover effects on refugees themselves who, in
reaction, may decide to limit interactions with the formal banking sector to avoid being
caught up in discriminatory patterns. Absence of information regarding loan requirements
as well as available financial support structures constitute additional barriers to accessing
credit, not to mention the relatively A rough guide to entrepreneurship promotion in forced
displacement contexts 7 low levels of financial literacy recorded among many refugee
populations. The unavailability of capital to invest in the new venture coupled with the
absence of networks, as will be discussed next, constitute strong deterrents to engaging in

43
entrepreneurial activities. Although refugees may resort to informal lending mechanisms

44
or draw from personal savings to fund their businesses, the resources collected through
those means in many cases remain insufficient. d. Lack of support networks Aspiring
refugee entrepreneurs rarely benefit from a strong enabling environment for business
creation.

entrepreneurship-based interventions: what entrepreneurship tools can be used and for

what purpose? Once you have assessed the operational environment, identified the
characteristics that define your target population and thought about potential partners for
roll-out, you can now turn to the design of your entrepreneurship promotion intervention.
The following section will expand on the different entrepreneurship tools you may use
depending on your objectives and the regulatory, legal, and socioeconomic context where
you operate. It seeks to provide further details on why these entrepreneurship tools may be
useful and for which specific cases. Entrepreneurship training Entrepreneurship training
programmes are perhaps the most straightforward tools for promoting entrepreneurship
among refugee and host populations. While some refugees and host community members
may have prior experience in business creation and management, others may lack practical
entrepreneurial skills that would allow them to make their enterprises more productive and
sustainable. Generally, entrepreneurship trainings thus aim to help entrepreneurs move
from offering ad-hoc goods and services provision to building longterm, profitable
operating businesses. Entrepreneurship trainings should be designed to respond to needs of
the target group. Where people are currently idle and looking to start a small business

45
or income-generating activity, a training to support them to find good business ideas and
develop solid business plans can be most helpful. When people are already engaged in
income-generating activities, a training to reinforce competencies related to marketing,
costing, stock control or record Player with capacity to change, but lacking motivation to
do so: Focus on reducing incremental rick associated with change Player lacks both
incentive and capacity to change: Reconsider feasibility or accept high risk of distorting
the market system Player possesses both the incentive and capacity change: Conduct
further analysis beyond partner to explore external obstacles Player with strong incentives,
but lacking capacity to pursue a change: Focus on building ability to operate outside
current comfort zone SKILL WILL LOW HIGH HIGH A rough guide to entrepreneurship
promotion in forced displacement

Central to the ILO’s entrepreneurship promotion tools is a cascading Training of Trainers

structure, where local organizations are equipped to offer entrepreneurship trainings in a
sustainable manner, i.e. independent of ILO support. The case study below examines the
implementation of one of the ILO’s entrepreneurship training tool, Start and Improve
Your Business (SIYB), in Jijiga, Ethiopia.

Description of Study Area

– Somali camper of commerce sectoral association Operations management is the

area of business; it deals with the production and services. It involves the
responsibility of the business operations are efficient with the help of using small
resources as needed. It is the process that converts inputs into outputs in the form of
product and services. Operation management is the heart of the organization by
controlling the operations of the system. It deals with the operation, design and
improvement the quality of systems product and services. Operations management,
marketing and finance are the functional field of the business with management
responsibilities. The importance of operations management in every business
organizations activity attached and it plays
– Research Design
– surce of data
.Customer lifetime value CLV) –
46
 Customer lifetime value (CLTV) is one of the most important metrics to
measure at any growing company. By measuring CLTV in relation to cost
of customer acquisition (CAC), companies can measure how long it takes to
recoup the investment required to earn a new customer -- such as the cost of
sales and marketing.

Customer Lifetime Value Model

1. Calculate average purchase value: Calculate this number by dividing your company's total
revenue in a time period (usually one year) by the number of purchases over the course of
that same time period.
2. Calculate average purchase frequency rate: Calculate this number by dividing the number
of purchases by the number of unique customers who made purchases during that time
period.
3. Calculate customer value: Calculate this number by multiplying the average purchase
value by the average purchase frequency rate.
4. Calculate average customer lifespan: Calculate this number by averaging the number of
years a customer continues purchasing from your company.
5. Calculate CLTV: multiply customer value by the average customer lifespan. This will give
you the revenue you can reasonably expect an average customer to generate for your
company over the course of their relationship with you.

Somali champer of commerce and sectoral assosation Public private dialogue

fourm
The Ethiopian Public Private Consultative Forum (EPPCF) has been mandated via a Memorandum
of Understand (MoU) to be the main vehicle for public private consultation in Ethiopia. Ethiopia is a
country of 82 million people spread across a vast country and more than 70 different ethnic groups.
Geographically Ethiopia is a land locked country in a volatile region bordered by Sudan, Somalia,
Eritrea and Kenya. Ethiopia has had to contend with its own transition from Civil War to democracy
and conflicts involving Somalia and Eritrea. The internal political transition has been challenging

47
with the 2005 general elections marked by deep internal divisions. Until recently, a large chasm
separated the private sector from the government, there were few signs of activity in the economy
outside the traditional sectors, and the economy hardly looked like poised for high and sustained
growth. With such a large population and a significant need for economic development the Ethiopian
government has recognized the need to promote private sector and improve the competitiveness of
the economy. In 2011, the Ethiopian Growth and Transformation Plan (GTP) established a target to
double GDP within five years. This is an ambitious and audacious plan that could only be achieved
with a prioritization on economic development and meaningful collaboration with the private sector.
Working closely with the private sector means, among others, having the means to communicate and
cooperate on the reforms required to further stimulate the economy. The concept of a formal
mechanism for Public Private Dialogue (PPD) is not new to Ethiopia. UNDP had worked closely
with government and private sector stakeholders in the late 1990’s called the Public Private
Partnership (PPP). This PPP had been a top level dialogue that met on an annual basis. The final
2003 report from the PPP recommended that the government and private sector stakeholders
undertake a revision of the PPP. The revision would focus on a structure that would deepen the
dialogue process from the annual event. Starting from 2005, the World Bank Group worked with
stakeholders to scope possible opportunities to implement this recommendation. The scoping work
indicated that there was demand for PPD in line with the development potential of Ethiopia. Whilst
the technical intervention provided an awareness of the opportunity for PPD, the government and
private sector stakeholders encapsulated the concept within a broader agenda of putting the economy
on a firmer, more sustainable footing. This agenda was to reconcile the public and private sectors
towards greater cooperation and coordination based on respect and accountability. B-
ESTABLISHMENT AND STRUCTURE 2 The EPPCF was formally implemented by a MoU signed
between the Ministry of Trade and Industry (MoTI) and the Ethiopian

48
Chamber of Commerce and Sectoral Associations (ECCSA) in June 2010. This MoU was signed
after a significant period of public and private consultation on the structure and modality of the
EPPCF. The process that was undertaken directly addressed fundamental issues that had otherwise
restricted the private sectors involvement in working directly with the government. When
consultations began on establishing the EPPCF in 2005, the level of trust between public and private
sector institutions were severely strained. Little direct communication was taking place and the
impact of any dialogue was limited. Unlike many emerging markets where limited dialogue has little
impact due to the lack of capacity within Business Membership Organisations (BMOs) or their
government counterparts, the Ethiopian market was different. Ethiopia has one of the oldest network
of Chambers of Commerce and Sectoral Association (ECCSA) in sub Saharan Africa. The capacity
of the executive within the Chambers Board and senior delegates is high. The government and
private sector appreciated from the outset that working together was an imperative to developing the
economy. Yet, substantive issues relating to the ECCSA constitution, election of delegates, premises
and other important institutional matters were preventing effective dialogue. Even if with the intent
to restart a dialogue process shared by all parties, without addressing some of the substantive issues
that were otherwise creating barriers to building a constructive relationship then achieving outputs
based on dialogue was not possible. The ECCSA and MoTI worked to establish the framework for
the EPPDF by directly addressing their concerns. They worked through a process that involved
formal meetings and meeting explicit targets (e.g. review of the ECCSA constitution, transparent
Chamber elections). The culmination of this long process was the signing of the formal MoU that
started the reformed PPD process. The objectives of the EPPCF include: • Creating a conducive
investment climate that enables the private sector to thrive • Finding lasting solutions for constraints
relating to business regulations and their implementations • Fostering strong partnership and
mutual trust and cooperation between

49
business and government. The EPPC has an ambitious structure that covers three levels; Federal,
State and Woreda. National Business Consultative Forum: The high level business Forum will be
held once in a year. It is chaired by the Prime Minister. This Forum is an opportunity for national
level issues to be addressed by the Prime Minister. In addition to potential policy announcements, the
NBCF will also provide an opportunity to outline issues and opportunities for the EPPCF to address.
Federal Public-Private Consultative Forum: The Federal Level Forum will enable the Minister of
Trade, the lead counterpart Ministry within the EPPCF, and ECCSA to review the progress and
outstanding issues arising from the EPPCF consultations. This level of discussion will facilitate
implementation of Sector Forum issues and will insure that for such a high level consultation form.
Sector Forums: At the Federal level, the dialogue is centered on six sect pillars of the ECCSA. The
formal dialogue that will take place at this level will be in Sector Forums. These Sector Forums will
be technical level discussions focused on the six sector pillars of the ECCSA Regional and Woreda:
The second and third level of dialogue is at the State and Wor the geography of Ethiopia, these two
levels of sub national dialogue represent a challenge for the implementation of the national EPPCF
agenda. Centre for International Private Ent CIPE has engaged a dynamic local consultancy
dialogues. It is intended that the EPPCF at the Federal level will provide the structure from which
issues raised at the level of the Worada can be raised all the way through to the provided that the
issues are of a national interest. Table 1. The EPPCF structure 3 Sector Forum issues and will insure
that issues requiring consideration at the NCBF will be appropriate for such a high level consultation
form. At the Federal level, the dialogue is centered on six sectoral associations that are the pillars of
the ECCSA. The formal dialogue that will take place at this level will be in Sector Forums. These
level discussions focused on the six sector pillars of the ECCSA The second and third level of
dialogue is at the State and Wor the geography of Ethiopia, these two levels of sub national
dialogue represent a challenge for the

50
implementation of the national EPPCF agenda. In a significant achievement for the EPPCF concept,
the Enterprise (CIPE) has began implementing this component of the EPPCF. CIPE has engaged a
dynamic local consultancy to provide support for implementing the sub national hat the EPPCF at the
Federal level will provide the structure from which issues raised at the level of the Worada can be
raised all the way through to the high level provided that the issues are of a national interest. F will
be appropriate oral associations that are the pillars of the ECCSA. The formal dialogue that will take
place at this level will be in Sector Forums. These level discussions focused on the six sector pillars
of the ECCSA. The second and third level of dialogue is at the State and Woreda levels. Given the
geography of Ethiopia, these two levels of sub national dialogue represent a challenge for the for the
EPPCF concept, the erprise (CIPE) has began implementing this component of the EPPCF. to
provide support for implementing the sub national hat the EPPCF at the Federal level will provide
the structure from which issues evel business Forum

– Sampling Design
– Instruments of Data Collection
• Questionnaire- discussion paper submitted by jigjioga university
FBE research paper .
• Interview- soamlI champer of commerce sectoral association stake
holder discussion in hamdea hotel

• Observation
• Focus Group Discussion-soamlI champer of commerce sectoral
association stake holder discussion in hamdea hotel
•
• Documents
- Ethiopia champer of commerce sectoral asocation 5 year plan
- Jigjiga university FBE public private dilouge study

51
 - The Ethiopian Public Private Consultative Forum (EPPCF)
Case Study Mamo Mihretu and James Brew
- Brand new world web site
- ILO’s entrepreneurship promotion tools is a cascading
Training of Trainers structure,
- India cluster development research pape

Somali champer of commerce and sectoral association

Public private dilaougediscussion out comes

Somali camper of commerce sectoral association Operations management is the area of business; it
deals with the production and services. It involves the responsibility of the business operations are
efficient with the help of using small resources as needed. It is the process that converts inputs into
outputs in the form of product and services. Operation management is the heart of the organization
by controlling the operations of the system. It deals with the operation, design and improvement the
quality of systems product and services. Operations management, marketing and finance are the
functional field of the business with management responsibilities. The importance of operations
management in every business organizations activity attached and it plays important role to ensure
that organization achieve their objectives and goals or not.

Somali regional state chamber of commerce sectorial association

omaI chamber of commerce and sectorial association

52
 Champer Agri industry service Trade r
e
o m
a
r
k

1 Jigjiga city Livest Financial Arbitration Contraband and

champer ock service service illegal cross
and problem border trade
feed
market
2 deghabuur Livest Financial Arbitratio Contraband and
city ock service n service illegal cross
champer and problem border trade
feed
market
3 Qbridahar Livest Financial Arbitratio Contraband and
city ock service n service illegal cross
champer and problem border trade
feed
market
4 wochale Livest Financial Arbitratio Contraband and
city ock service n service illegal cross
champer and problem border trade
feed
market
5 Godey city Livest Financial Arbitratio Contraband and
champer ock service n service illegal cross
and problem border trade
feed
market
6 Qbribahax Livest Financial Arbitratio Contraband and
city ock service n service illegal cross
champer and problem border trade
feed
market
7 Fafen zone Livest Financial Arbitratio Contraband and
champer ock service n service illegal cross
and problem border trade
feed
market

53
Fafen zone Livest Financial Arbitratio Contraband and
champer ock service n service illegal cross
and problem border trade
feed
market
jerer zone Livest Financial Arbitratio Contraband and
champer ock service n service illegal cross
and problem border trade
feed
market
Qorahey Livest Financial Arbitratio Contraband and
zone ock service n service illegal cross
champer and problem border trade
feed
market
Dollo zone Livest Financial Arbitratio Contraband and
champer ock service n service illegal cross
and problem border trade
feed
market
afder zone Livest Financial Arbitratio Contraband and
champer ock service n service illegal cross
and problem border trade
feed
market
siti zone Livest Financial Arbitratio Contraband and
champer ock service n service illegal cross
and problem border trade
feed
market
dawa Live Financi Arbitrati Contraband
zone s al on and illegal
champer tock service service cross border
and problem trade
feed
mark

54
et

55
Erer Live Financi Arbitrati Contraband
zone s al on and illegal
champer tock service service cross border
and problem trade
feed
mark
et
fiiq zone Live Financi Arbitrati Contraband
champer s al on and illegal
tock service service cross border
and problem trade
feed
mark
et
Libaan Lives Financi Contraband
zone tock al Arbitrati and illegal
champer and service on cross border
feed problem service trade
mark
et
shebelle Lives Financi Contraband
zone tock al Arbitrati and illegal
champer and service on cross border
feed problem service trade
mark
et

56
 3.2 The description of research area

The Somali regional stae of champers of commerce and sectoral assosation six city
champers and eleven zonal champers integrated comprehensive refuge , returness and
host community in the entrepreneurship main focous jigjiga city
Jig-jiga city is the capital city of Somali region, and it has council administration, it
consist of 20 kabelle, and it is a far from Addis Ababa 628 KM in east and it is near to
bounder of Somali specially Wajaale, it is far from Wajaale only in the west 70 km.
Generally Somali champer of commerce sectoral association has well known
historically improvement of the coustmer service.
3.3 Research design.
The research design is to brand audit Somali regional stae of champers of commerce and
sectoral assosation six city champers and eleven zonal champers research collect the data
refuge and retureness and host

57
 3.4 Source of data.

Somali regional stae of champers of commerce and sectoral assosation six city champers
and eleven zonal champers

In this study the researcher was used both primary and secondary data as a source. The
primary data was collected through structured questionnaire both open and close ended and
interview. The source for the secondary data, include books, articles, websites, journals,
and personal structure observation was undertaken by the researcher by systematically
looking at what is going on.

3.5 Sampling technique and sample size.

Purposive was used since this sampling technique was help the researcher in order to
contacts only most relevant people those who have knowledge on the study to select
respondent from the Somali regional stae of champers of commerce and sectoral
assosation six city champers and eleven zonal champers was select randomly and
probability, based each 17 chamber of commerce 12 from each cluister agriculturt 12,
industry 12 and service 12 - and custmer refuge 12, returness 12 1nd host 12 total
number is 36 the means the targeted customer total 1000 soamli chamber of commerce
sectoral assosation simple sampling was 612 using with Yamane formula, and Somali
chamber of commerce and sectoral association.
Source: adapted from Yemeni (1967).
Where n=refers to sample size, N=Total population, e=the degree of precision/error term.
N= 3000 n = sample size= 612 e= degree of err=3.53 confedence level = 95

3.6 Instruments of Data Collection

This data was collected by using semi structured questionnaire because Theprimary data
collected through interview and questionnaires to get meaningful information about
existingpracticesand challenges of balanced scorecard implementation it provides
uniform information which is important for quantities research design and also used for
focus group discussion, in order to fulfill the qualitative part of the research techniques.

58
Distance Metrics
Euclidean distance– Commonly practiced distance metric, Euclidean distance computes the
root of the square difference between the coordinates of the pair of objects.

City block or Manhattan distance– Manhattan distance computes the absolute differences
between coordinates of the pair of objects

Chebyshev distance-Chebyshev Distance also known as maximum value distance and

computed as the absolute magnitude of the differences between the coordinate of a pair of
objects. The metric applied when observations are ordinal.

Minkowski Distance– This distance measure can be calculated for both ordinal and
quantitative variables

Somali distan perce Traini Arbitrati Public

chmper ce nt ng on private
of service service dialog
commer ue
ce service
0 km 20 High High High
deman demand deman
jigjiga d d
110 5 High High High
deghbuu km deman demand deman
r d d

59
 210km 5 High High High
deman demand deman
qdahr d d
60km 5 High High High
wochall deman demand deman
e d d
300km 5 High High High
deman demand deman
godey d d
50km 5 High High High
deman demand deman
qbayah d d
250 5 High High High
km deman demand deman
shinle d d
300km 5 High High High
deman demand deman
shebelle d d
110km 5 High High High
deman demand deman
jereer d d
210km 5 High High High
deman demand deman
qorhaey d d
400km 5 High High High
deman demand deman
dollo d d
450km 5 High High High
deman demand deman
afdheer d d

60
 500km 5 High High High
deman demand deman
libban d d
300km 5 High High High
deman demand deman
sitti d d
250km 5 High High High
deman demand deman
nogob d d
5km 5 High High High
deman demand deman
fafen d d
300km 5 High High High
deman demand deman
erer d d

3.7 Data analysis

INTERNAL & EXTERNAL INTERVIEWS

When analyzing your brand, interviews are often an important first step. The goal of
interviews is to gather thoughts, feelings and and personal experiences that help expose the
nuances of the firm’s persona. It is critical that interviews be conducted confidentially.
Often, an external vendor is used to handle the interviewing process, so employees and
clients feel more comfortable sharing their feedback candidly. Key members of the firm —
senior partners as well as new hires and staff — should be included for a true cross-section
of viewpoints. Similarly, newer clients as well as longstanding clients should be
interviewed. Sometimes, referral sources are also added to the mix. Speaking with new
hires and new clients is important because they have recently evaluated your firm
against your

61
competition, and chosen to work at or with your firm. Finding out why they selected you
can be insightful branding information.
The number of interviews conducted varies. If your firm is small (under 50, for example),
you may only need to include five or so internal as well as external sources. But if your
firm has hundreds of people in multiple offices, you’ll probably want to include twenty or
more internal as well as external interviewees.
Similar questions should be asked to internal and external sources, so the collected data
can be compared. Pay special attention to disconnects in the responses. For example, if
people at the firm consider “lower rates” to be an important reason to select the firm, but
clients don’t mention rates but rather emphasize problem solving skills or high-touch
service, you should probably not focus your brand messaging on value pricing.
A note about Client
Interviews Sometimes, partners at the firm push back on client
interviews. Usually their hesitation is based on fear of receiving negative feedback, or
“bothering” clients. Explain to partners that only the clients they invite to participate and
accept the invitation will be interviewed

SURVEYS
Surveys can be used in lieu of personal interviews (for cost savings reasons), or to
supplement interviews in order to collect more data. Surveys are a good way to include
more employees and clients in the branding process (which is useful at larger firms).

COMPETITOR ANALYSIS
In addition to collecting feedback about your firm, understanding how your competitors
position themselves is necessary in order to differentiate yourselves from them. After you
define your top competitors (the firms you come up against often in pitches), review their
websites and any available marketing materials you can get access to. Do they have a
prominent tagline or positioning statement? What are the colors and visuals they use
regularly? Are they actively blogging or posting on social media? Information of this
nature is very insightful and can contribute to a branding SWOT Analysis (Strengths,
Weaknesses, Opportunities, Threats) that should be included in the brand findings report
Somali regional stae of champers of commerce and sectoral assosation six city champers
62
 CHAPTER FOUR
4. DATA PRESENTATION AND ANALYSIS.
4.1. Data presentation and Analysis
The Somali regional stae of champers of commerce and sectoral assosation six city
champers and eleven zonal champers integrated comprehensive refuge , returness and
host community in the entrepreneurship main focous jigjiga city
Jig-jiga city is the capital city of Somali region, and it has council administration, it
consist of 20 kabelle, and it is a far from Addis Ababa 628 KM in east and it is near to
bounder of Somali specially Wajaale, it is far from Wajaale only in the west 70 km.
Generally Somali champer of commerce sectoral association has well known
historically improvement of the coustmer service.
returned.ofesponserate.Thedatacollectedthroughquestionnairesare
presentedbelowwiththehelpoftables,.Thischapter dealswith
respondent’sdemographicprofile,educationalbackgroundandworkexperiencein Somali
champer of commerce coustmer market analysis

Survey client
interview
discussion
feed back
FM radio
jgj
Champer interview
Jigjiga    
Deghbuur    
Qdahr    
Wochalle    
Godey    
Qbayah    
Shinle    
Shebelle    
Jereer    
Qorhaey    

63
 Dollo    
afdheer    
Libban    
Sitti    
Nogob    

AGRICULTURE
champer refuge return host Total
jigjiga 4 4 4 12
deghbuur 4 4 4 12
qdahr 4 4 4 12
wochalle 4 4 4 12
godey 4 4 4 12
qbayah 4 4 4 12
shinle 4 4 4 12
shebelle 4 4 4 12
jereer 4 4 4 12
qorhaey 4 4 4 12
dollo 4 4 4 12
afdheer 4 4 4 12
libban 4 4 4 12
sitti 4 4 4 12
nogob 4 4 4 12
fafen 4 4 4 12
erer 4 4 4 12

64
total 4 4 4 12

INDUSTRY
champer refuge return Host total
jigjiga 4 4 4 12
deghbuur 4 4 4 12
Qdahr 4 4 4 12
wochalle 4 4 4 12
godey 4 4 4 12
qbayah 4 4 4 12
shinle 4 4 4 12
shebelle 4 4 4 12
jereer 4 4 4 12
qorhaey 4 4 4 12
dollo 4 4 4 12
afdheer 4 4 4 12
libban 4 4 4 12
Sitti 4 4 4 12
nogob 4 4 4 12

fafen 4 4 4 12

erer 4 4 4 12

Total 4 4 4 12

65
 SERVIC Total
E
champer refuge return host total
jigjiga 4 4 4 12 36
deghbuur 4 4 4 12 36
qdahr 4 4 4 12 36
wochalle 4 4 4 12 36
godey 4 4 4 12 36
qbayah 4 4 4 12 36
shinle 4 4 4 12 36
shebelle 4 4 4 12 36
jereer 4 4 4 12 36
qorhaey 4 4 4 12 36
dollo 4 4 4 12 36
afdheer 4 4 4 12 36
Libban 4 4 4 12 36
sitti 4 4 4 12 36
Nogob 4 4 4 12 36
Fafen 4 4 4 12 36
Erer 4 4 4 4 36

table 1 respondent the economic ground

Grou respon Inv Entreprene Entreprene Cumul
nd dent ited urship urship not ative
percent supported percen
t
Refug 204 256 79% 21% 50
e
Retur 204 306 66 34 50
nees

66
 host 204 250 81 19 50
Table -1The Somali regional stae of chambers of commerce and sectoral
assosation comprehensive refuge response impact entrepreneurship will have strong
impact in training, BDS service delivery of the of the organization

table 2 respondent the cluster approach

clusters Respondent Respondent Respondent
refuge Returnees host
Agri 4 5 1 5 1 5 5
culture 1 % 0 2 0 0 0 0 0
0 % 0 % % 0 % %
%
SME 1 5 1 5 5 2 5
2 0 0 2 0 0 0 5 0
0 % % 0 % % % %
%
service 8 8 5 6 7 5
1 3 5 6 0 0 4 5 0
7 % 0 0 % % % %
0 %

Table-2
theThe Somali regional stae of champers of commerce and sectoral assosation
comprehensive refuge response impact entrepreneurship will have strong impact in
training, BDS service delivery of the of the organization cluster approach is most refuge
is in service sector 83% , returness 80% in service cluster and host agriculture cluster is
75%

67
Table three- Age distribution

table 2respondent the cluster approach and age distribution

clusters Respondent Respondent Respondent
refuge returnees host
Age A 1 A A 1 A A 1 A
catagore b 9 b b 9 b b 9 b
y t - o t - o to - o
o 4 v o 4 v 1 4 v
1 0 e 1 0 e 8 0 e
8 4 8 a 4 a a 4
1 a g 1 g g 1
a g e a e e a
g e g g
e e e
agricultu 4 5 1 7 1 5 5
re 1 0 0 1 0 5 0 0 0
0 % % 5 % % 0 % %
% %
SME 4 5 4 4 5 2 7
1 0 0 2 0 0 0 5 5
0 % % 0 % % % %
% %
service 5 5 !0 2 5 2
2 0 3 4 0 % 5 0 5
0 % 0 0 % % % %
% % %

68
 Somali champer of commerce and sectoral assosation training, PPD and arbitration service
musbe focused refugee service 19-40 age in service sector , returnees agriculture 75%
and host community SME 75%.

Table four- sex distribution

table 2 respondent the cluster approach and age distribution

clusters Respondent refuge Respondent Respondent
returnees host
Se f e m aver f a fem a v e
x m a l al g m e v m al rg
cat e e e a m er a e e
ego l a a l
ry e l g e
e e
agricultu 2 5 3 5 4 5
re 8 0 0 7 0 0 6 0 0
0 % % 0 % % 0 % %
% % %
SME 3 5 4 5 3 5
7 0 0 6 0 0 7 0 0
0 % % 0 % % 0 % %
% % %
service 9 8 6
1 0 5 2 0 5 3 5 5
0 % 0 0 % 0 5 % 0
% % % % % %

69
Demographic: This includes age, gender, family status, occupation, income, education,
ethnicity, religion, sexual orientation, social class and nationality. This is the

foundation for understanding target consumer. In this dta collection 90% femelle from
refuge in service sector and returness the higest is 80% in service sector and 70% male
in agriculture sectors.
Table five- education distribution

table 2 respondent the cluster approach and age distribution

clusters Respondent refuge Respondent Respondent
returnees host
eduction p S a p S a p S a
category r e b r e b r e b
i c o i c o i c o
m o v m o v m o v
a n e a n e a n e
r d r d r d
y a y a y a
r r r
y y y
agricultu 1 1 1 1 3 2
re 8 0 0 8 0 0 5 0 0
0 % % 0 % % 0 % %
% % %
SME 1 2 1 2 3 2
7 0 0 7 0 0 5 0 0
0 % % 0 % % 0 % %
% % %
service 2 2 3 2
7 0 1 7 0 1 5 0 0
0 % 0 0 % 0 0 % %
% % % % %

70
 Education: This includes age, gender, family status, occupation, income, education,
ethnicity, religion, sexual orientation, social class and nationality. This is the
foundation for understanding target consumer. In this dta collection 80% femelle from
refuge primary school in service sector and returnees the higest is 80% in service sector
and 70% male in agriculture sectors.

Table six- service distribution

table 2respondent the cluster approach and service distribution
clusters Respondent Respondent Respondent
refuge returnees host
Service f I F f I F f I Form
category a n o a n o a n al
m f r m f r m f traini
i o m i o m i o ng
l r a l r al l r
y m l y m tr y m
a t a ai a
l r l ni l
t a t n t
r i r g r
a n a a
i i i i
n n n n
i g i i
n n n
g g g
agriculture 1 1 1 1 3 20%
8 0 0 8 0 0 5 0
0 % % 0 % % 0 %
% % %

71
 SME 1 2 1 2 3 20%
7 0 0 7 0 0 5 0
0 % % 0 % % 0 %
% % %
service 2 2 3 20%
7 0 1 7 0 1 5 0
0 % 0 0 % 0 0 %
% % % % %

Refuge and retun host planrespondent the cluster approach and service distribution
agriculture is 80% returness is 80% , and host is 50 experience family

Table seven tax identification number

table 2respondent the cluster approach and tax

clusters Respondent Respondent Respondent
refuge returnees host
Status TIN Y n a y n a Y n av
e o v e o v e o
s s er s
g
e
agriculture 1 9 5 1 5 4 50%
0 0 0 8 0 0 6 0
% % % 0 % % 0 %
% %
SME 1 9 5 1 5 4 50%
0 0 0 8 0 0 6 0
% % % % % %

72
 0 0
% %

service 1 9 5 1 5 4 50%
0 0 0 8 0 0 6 0
% % % 0 % % 0 %
% %

Tax identification number-. ou are in the process of committing investment in the

agribusiness sector of Ethiopia, be it domestic or foreign. As such, you should know that,
like every other investor, you have tax obligation.
According to Income Tax Proclamation Number 286/2002 of the Government of Ethiopia,
“Every person having a tax obligation is required to obtain a tax payer identification
number”. This explains the TIN requirement of the law that tax payers including new
investors like you should comply with or face the consequences.
Te refuge is 90 % donot have, the returness 80% I

Table seven ; PPDand cluster and dispute resolution

table 2 respondent the cluster approach

clusters Respondent Respondent Respondent
refuge returnees host
Status ppd, Y n a y n a Y n av
cluster and e o v e o v e o
dispute s s er s
resolutions g
e
agriculture 1 9 5 1 5 4 50%
0 0 0 8 0 0 6 0
% % % 0 % % 0 %
% %

73
 SME 1 9 5 1 5 4 50%
0 0 0 8 0 0 6 0
% % % 0 % % 0 %
% %
service 1 9 5 1 5 4 50%
0 0 0 8 0 0 6 0
% % % 0 % % 0 %
% %

public-private sector dialogue Dialogue is ad hoc and, at times, lacks clear purpose. More
recently the Government has attempted to better streamline and formalize dialogue by
specifically inviting comment on items of policy and strategy from the private sector, but
only occasionally as part of the process of preparing the Government’s biannual Statement
of Economic Strategy. The business community, particularly through the Chamber of
Commerce, has had the opportunity to engage in limited dialogue with differenmt
government
the refuge 90% donot have , 2- the returness 8o% donot have 3- the host 40%

table 2;1 respondent the and tax

clusters Respondent Respondent Respondent
refuge returnees host
Status ppd, Y n a y n a Y n av
cluster and e o v e o v e o
dispute s s er s
resolutions g
e
agriculture 1 9 5 1 5 4 50%
0 0 0 8 0 0 6 0
% % % 0 % % 0 %
% %

74
SME 1 9 5 1 5 4 50%
0 0 0 8 0 0 6 0
% % % 0 % % 0 %
% %
service 1 9 5 1 5 4 50%
0 0 0 8 0 0 6 0
% % % 0 % % 0 %
% %

table 2 .3respondent the dispute resolutions

clusters Respondent Respondent Respondent
refuge returnees host
Status ppd, Y n a y n a Y n av
cluster and e o v e o v e o
dispute s s er s
resolutions g
e
agriculture 1 9 5 1 5 4 50%
0 0 0 8 0 0 6 0
% % % 0 % % 0 %
% %

75
 SME 1 9 5 1 5 4 50%
0 0 0 8 0 0 6 0
% % % 0 % % 0 %
% %
service 1 9 5 1 5 4 50%
0 0 0 8 0 0 6 0
% % % 0 % % 0 %
% %

table seven e-birr

table 2respondent the e- birr service
clusters Respondent Respondent Respondent
refuge returnees host
Bank e- Y n a y n a Y n av
service e o v e o v e o
s s er s
g
e
agriculture 5 5 5 6 5 4 50%
0 0 0 4 0 0 6 0
% % % 0 % % 0 %
% %

76
 SME 5 5 5 6 5 4 50%
0 0 0 4 0 0 6 0
% % % 0 % % 0 %
% %
service 5 5 5 6 5 4 50%
0 0 0 4 0 0 6 0
% % % 0 % % 0 %
% %

All e-payment methods share a number of common characteristics. These are: independence, interoperability a
use, and transaction fees. Independence refers to the ability of e-commerce methods to operate without installin
refers to the ability of forms of e-commerce to interlink with other enterprise applications and systems. Securi
safety of the transfer and the chance of the transfer being intercepted.

E-cards offer a number of benefits to the issuing banks and customers of the bank including:

• Dramatically reduce printing, mailing, and financial handling costs associated with processing transaction.

• Enhance payment security by minimizing theft or loss.

• Reduce undeliverable payments via electronic delivery to the card account.

• Prevent fraud through automated controls

• Increase customer satisfaction and enhance service to constituents.

• Ensure continuity of service to cardholders in emergency or disaster situations

• Improve operational efficiency and profitability of the issuing banks.

The refuge 50% have bank e-service, the returnees 60% and host 60%

77
 CHAPTER FIVE
Recommendation and conclusion

Lessons from UNIDO’s cluster development programs in Ethiopia

The experience of UNIDO in the delivery of cluster-baseddevelopment to natural
clusters in Ethiopia offers a number of useful insights for other clusters and local
development programs.
1. The programs implemented in Ethiopia showedthe need for having sector
specific interventionsthat would indulge the active participation of
stakeholders. The assignment of CDAs to each specific cluster further
insures the assessment of the specific needs of each cluster and
providestailored interventions accordingly.
2. Since UNIDO’s methodology of cluster development is largely based on the
strengthening of trust, the commitment of CDAs throughout the period of
the projectwas important to develop trust with the local community
including the main beneficiaries, clustered enterprises.
3. The strong involvement of public-sector institutionssuch asFeMSEDA and
ReMSEDA in the program contributed totrust and governance-building in
order to insure the continuation of the cluster development initiative, once the
project has phased out.
4. In addition, the close collaboration between public and private sector
stakeholdersin the project helped to draw a joint plan and pooled efforts and
resources together that were essential for an efficient delivery of various
services and supports to enterprises.
5. The success of a cluster development program is highly dependent on the
level and quality of support that enterprises receive from various support
institutions. The project worked closely with various support institutions like
the Textileand Apparel Institute, Leather and Leather Products Technology
Institute, TIVETs as well as FeMSEDA and ReMSEDA. By supporting and
building the
capacity of public support institutes, the project was able to insure the
78
delivery of problem solving and quality services to enterprises.
6. While having tailored interventions, enterprises in the cluster were cost-sharing
and paying fees to access various servicesfrom different support institutions.
Such kind of practices helped prevent the emergence of dependencyand over
reliance on external assistance. Moreover, it helped to empower the enterprises

by increasing their decision-making and encourage them to take on

responsibility for the accomplishment of cluster development activities.
5.2 Government’s cluster development approach

Following the MSE development strategy of Ethiopia,there has been a pressing

need by the government to enhance market integration by promoting industrial
development that encompasses cluster based MSEs.MSEs are given recognition in
the country’s current industry development plan and are considered as a vehiclefor
employmentgenerationparticularly in urban centers and leading to economic
development (FDRE 2011). MSE development is also considered to serve as an
incubation device where MSEs can grow into medium size enterprises (FDRE
2011).
In line with the current MSE Development Strategy of Ethiopia, the government
has formulated a cluster development directivein January 2011. The main objective
of the cluster development directiveof Ethiopia is to alleviate problems of working
and selling premises often faced by MSEs. This is aimed to be done through the
construction of standard working and selling premises where a number of
enterprises that work on similar and closely related goods can enter and operate.
The provision of premises to similar and related enterprises is believed not only to
resolve their space limitations but also help create markets, facilitate technology
transfer and induce network and collaboration among enterprises (FeMSEDA
2011). In addition, having MSEs that work on similar and closely related goods in
one location is held to provide a ground where linkages with medium and large
scale industries can be initiated.
According to the cluster development directive, Government created clusters are

79
considered asincubation centers where MSEs are provided with various supports,
in which they eventually can grow into medium size firms.
Priority sectors that can enter Government created clusters
Activities that can enter Government created cluster are mainly manufacturing
enterprises that are engaged in the following segments:
−Textile and tailoring (tailoring, weaving, sweater knitting, embroidery and
motif, dying and silk screen painting);
−Leather and leather products( shoe, leather made garments, variousleather
products and the like);
−Agro processing (foodstuff preparation, vegetable and fruit processing, honey
processing and packaging, dairy products, bread and cake bakery, meat and fish
processing and the like);13

−Metal works and engineering (door and window works, electric work, welding,
sheet metal works, office facilities, spare parts, upgrading manufacturing
equipment);
−Wood work (furniture, teaching aids, bamboo products, agricultural inputs and
the like);
−Traditional artifacts and jewelry works (bamboo and straw mat, jewelry made
from gem stone, silver and bronze, horn and clay, doll making, motif and the
like).
Selection criteria for identifying eligible enterprises that can enter Government
created clusters
−Enterprises that are engaged in the propriety sectors selected above and have the
potential to grow;
−Enterprises willing to use energy and space saving equipment collectively or
individually;
−Enterprises that have good reputation in their loan and tax settlements;
−Enterprises that have a properrecord of the incomeand expenses of their
business;
−Enterprises that made good use of production and selling premises that were

80
given to them by the government previously;
−Enterprises with selling and working premise problems.
Support packages given for enterprises that enter Government created clusters
The various support packages and services that aregiven toenterprises operating in
the Government created clustersare:
−Training and information about saving and access to credit by professionals;
−Business Development Service (BDS);
−Industry extension services and trainings;
−Trainings to upgrade the marketing skills of MSEs and provide information to
enable enterprises look for market opportunity independently;
−Linking enterprises with big companies and assisting them to participate in
Government purchases and bid invitations.
Duration of stay in the clusters
The maximum time limit whereMSEs can stay in the cluster is 5 years. Those
enterprises that are able to grow into medium size enterprises will be provided
another working space at industrial zones. On the other hand, enterprises that do not
grow into medium-size enterprises will be excluded from the cluster but other
supports like provision of finance, training, information and market linkages will
continue for another 2 year

Conclusions
the Somali champer of commerce and sectoral assosation implement cluster development
approach but The success or failure of the UNIDO’s cluster development approach lies
almost entirely on the CDAs. Careful selection of CDAs and providing them
with appropriate trainingis therefore important in order to ensure the success of
the program. Monitoring systems with clearer baseline, target and indicators,
would enable CDAs and other cluster stakeholders to get clear picture of the
progress made, and of progress to be made. Consideration should also be given
to the nature of the particular natural cluster and of how large it is (i.e., how

81
many enterprises) a CDA can realistically support. Depending on the size of a
cluster, more than one CDA may need to be hired. Moreover, since the task of
the CDA involves working ona daily basis in a specific cluster, the CDA
should be fully engaged in his/her job. There should also be enough
incentive for the CDA that takes into account his or her effort. Having a co-
CDA from
28 government institutions to work closely with the externally hired CDAwill
also help generate local capabilities so that the co-CDA would be able to acquire
the skills necessary to carry out the cluster development work after the phasing
out of the program.
2. In addition to the CDA, the overall organizational set-up and management
of a Cluster Working Group(CWG), which comprises ofthe various stake-
holders and partnersthat will be involved in the cluster development program
directly or indirectly, is crucial for the success of the cluster development
program. The governing body of CWG should be dynamic, so that each
member is able and willing to make decisions and should be sustainable in
order to insure the continuity of the progress of the cluster even after the
phasing out of the program.
3. The development of trust, which is UNIDO’s methodology of cluster devel-
opment for initiating joint action among entrepreneurs, is difficult to develop
and can take longer time than envisaged for it to occur. In addition, the
motivation and commitment of entrepreneurs to engage in joint actions can only
be safeguarded if they see tangible benefits in the short term. In order to
maintain the momentum and insure the further development of trust, cluster
initiatives should start with low-risk but quick result generating inter-
ventions.Progressively, as the trust level increases, the interventions can move
into longer-term and high-risk activities. In addition, adopting local values and
nurturing social capital can help strengthen trust.
4. While formulating cluster development programs, it is crucial to take into
account the possible heterogeneity in enterprises’performance, capabilities
and production historyand avoid applying a ‘one size fits all’ cluster policy in

82
all sectors and context.Like in any policy actions and interventions, cluster

83
development programsshould be tailored on the existing (and evolving) local
circumstances of the different clusters.
5. Finally, monitoring and proper impactevaluation should be an integral part
of cluster development programsin order to bring about clarity on the
expected outcomes and provide lessons to improve results.In line with the
ini- tiative’s objectives, the impact evaluation shall include not only measures
of income-based variables but also other noneconomic capabilities such as
skill acquisitions and spillover effects of various interventions. The

5.3 limitation of study

 the budget problem to travel and collect data,

corona virus stay home action,
somali region sectoral assosations are not well organized
 the data on the avaalbility of refugee, returness and host community separation
.
 The main concern of this study is to assess the role of CRRF in improving the
right and protection provide for refugees in Ethiopia. Due to a shortage of time
and lack of data entrepreneurship data the study is limited to data and
information gained from UNHCR reports on websites, and experts working on
the CRRF.

84
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 JIGJIGA UNIVERSTY
SCHOOL OFGRADUATE
STUDIES
DEPARTEMENT MBA

Questionnaire tobefilled byThe Role of

Somali chambers of Commerce and Sectorial Association in Comprehensive
Refugee Response Towards Entrepreneurship Development of Somali, ETHIOPIA
Researcher: bezuneh derse Tassmma ( bezder19@gmail.com (+251915748237)
Researchtopic:The Role of
Somali chambers of Commerce and Sectoral Association in Comprehensive
Refugee Response Towards Entrepreneurship Development of Somali,
ETHIOPIA

Dear respondents;-Iwouldliketoconveymy
honestappreciationforyourgeneroustimeandhonestimmediately responses.
Objective:Thisquestionnaireisdesignedtocollectinformationabouttheexistingprospectsan
dchallengesofThe Role of
Somali chambers of Commerce and Sectoral Association in Comprehensive
Refugee Response Towards Entrepreneurship Development of Somali, ETHIOPIA

The informationthatyourespondshallbeusedasaprimary datainmycaseresearchwhichIam

conductingaspartialrequirementsofmaster’sdegreeatJigjiga University underbusiness
administration.

88
Therefore, theinformation gathered will beusedfully andwith dueattention for academic
purposeonlyandIwouldliketo assureyou that the data collected will notbemisused
anyways.

89
 There is no need of writing your name.

In all cases where answer options are available please tick (√) in the appropriate
box

For questions that demand your opinion, please try to honestly describe as per the
questions on the space provided.
If the space provided is not enough for your opinions, please use the back side of the
paper by writing the question number.
1. Economic back ground A. refuge B, retunes C. Host community
2. Cluster of economic activity of your business a. agriculture B. SME industry c.
Service
3. Age a. abto 18 B, 18- 40age c. 40 above
4. Sex a. male B. female
5. Education status a, primary b-seconadry C, above diploma
6. Experience of business A, family b,informal training c, formal training
7. Tax Identification number availability a, have b, I donat have
8. The source of capital a, family b,self c, micro finance credit
9. How is profit maxmimization in business a, satisfied b, not satisfied c- normal

10. Do you have cluster in business a,yes b, no

11. Public private dialogue in business ideas a, yes b,no
12. arbitration service in your business agreements and dis greements is solved by
A. traditional B. court process C, not at all
13. commercial dispute affect your business a, yes B, no
14. profitable innovative business cluster training need A, yes B,no
15. Cluster net work for your market do yave a, yes b,no
16. The bank service e-birr a, yes b,no

90