1

MOGADISHU UNIVERSITY
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCEs

DEPARTMENT OF PUBLIC ADMINSTRATION

Title of the thesis:

The role of youth entrepreneur in private sector

performance

Supervisor Students Mr. Hassan omar sabriye

Student Ibrahim Abdullahi
mohamud Ahmed Abdullahi mohamud
Faiza Abdullahi omar

Academic Year 2019-2020

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APPROVAL

This thesis is submitted in partial fulfillment of the requirement for the degree of bachelor in Public
Administration.

Student Academic year: 2019-2020

For Graduate Committee

___________________________________
___________________________________
___________________________________
___________________________________

Dean Faculty of Economic and Management Science

__________________________________________
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DECLARATION
We Ahmed abdullahi omar , Ibrahim Abdullah Omar, Faiza Abdullahi Omar declare that this
dissertation on “the role of youth entrepreneur ”. This is our original work under the supervision
of Mr. Ahmed Abdukadir Ahmed and has not been submitted for the award of a degree in any
other university, college or other institutions before.
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DEDICATION 1
I dedicated this work to my beloved family especially to the person who deserved the most
credit for my effort, my dear mother faaduma Her encouragement and confidence has
brought me this far. She is merciful mama, and I am proud to be her son. I also dedicated
this book to my beloved father Abdullahi who directly paid for all this. And also all my
brothers and sisters who have helped me to reach my goal, not only just his words of
support, but also practically making things easier for me as they helped financial support
and suggestion, this has been for me every step of my way.

Ibraahim Abdullahi omar

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DEDICATION 2
I dedicated this work to my beloved family especially to the person who deserved the most credit
for my effort, my dear mother karuur Mohamed Hasaan Her encouragement and confidence has
brought me this far. She is merciful mama, and I am proud to be her son. I also dedicated this
book to my beloved father Abdullahi mohamud hasan who directly paid for all this. And also all
my brothers and sisters and my beloved aunt Faduma Abdullahi , who have helped me to reach my
goal, not only just his words of support, but also practically making things easier for me as they
helped financial support and suggestion, this has been for me every step of my way.
Ahmed Abdullahi mohamud
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DEDICATION 3
I dedicated this work to my beloved family especially to the person who deserved the most credit
for my effort, my dear mother Faduma maxmuud i Her encouragement and confidence has brought
me this far. She is merciful mama, and I am proud to be her son. I also dedicated this book to my
beloved father Abdullahi omar who directly paid for all this. And also all my brothers and sisters,
who have helped me to reach my goal, not only just his words of support,

Faiza Abdullahi omar

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ACKNOWLEDGEMENT
First of all, all praise and thanks due to Allah who created us and gave us all the requirements
without which live should not be possible, allowed us this opportunity to write our graduation
thesis. We would like to send our sincere gratitude to our supervisor Mr. xasan omar sabriye
who has kindly and respectably helped us to complete the writing of this thesis. We would like to
utter our valuable thanks to the Administration, lectures, and all the staffs of Mogadishu University
for the effective role they are playing in the education of Somalia, and for their efforts towards
producing useful graduates who become helpful in the process of rebuilding this country, we
especially thank the administration and lectures of the faculty of economics and management
sciences who are the reason for the completion of our bachelor study, especially the honest hard
worker dean Mr. Abdi kafi Hashi Sheikh Farah and finally we show a valuable thanks to the all
secretaries of the faculty of economics and management science. We would like to thank anyone
who helped us our academic financially, morally and technically especially our families and
friends. Finally, we would like to thank to all our lecturers who paid their efforts to at this valuable
step and every person who supported us any information
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TABLE OF CONTENTS
APPROVAL .................................................................................................................................... i
DECLARATION ............................................................................................................................ ii
DEDICATION .............................................................................................................................. iii
DEDICATION 2 ........................................................................................................................... iv
DEDICATION 3 .............................................................................................................................v
ACKNOWLEDGEMENT ............................................................................................................. vi
ABSTRACT .................................................................................. Error! Bookmark not defined.
CHAPTER ONE ..............................................................................................................................1
INTRODUCTION ...........................................................................................................................1
1.1 Background of the study .......................................................................................................1
1.2 Theoretical background: ........................................................................................................4
1.3 Problem Statement ................................................................................................................5
1.4 Objectives of the Study .........................................................................................................6
1.4.1 General objectives ..............................................................................................................6
1.4.2 Specific objectives..............................................................................................................6
1.4Research Questions .................................................................................................................6
1.5 Significance of the Study .......................................................................................................6
1.6 Scope of the Study.................................................................................................................7
1.7 Conceptual frame work of the Study.....................................................................................7
CHAPTER TWO .............................................................................................................................8
LITERATURE REVIEW ................................................................................................................8
2.0 Introduction ............................................................................................................................8
2.1 Definitions and concepts of youth entrepreneur ....................................................................8
2.1.1 To determine the level of youth entrepreneurs .................................................................10
2.1.2Creating employment .........................................................................................................11
2.1.3 Innovation .........................................................................................................................16
2.1.4 Economic development ....................................................................................................18
2.2 Private sector performance ..................................................................................................20
2.2.1 Sole Proprietorship ...........................................................................................................20
2.2.2 Partnership ........................................................................................................................21
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2.2.3 Cooperation.......................................................................................................................22
2.3 Relationship between youth entrepreneur and private sector performance .........................23
CHAPTER THREE .......................................................................................................................25
THE RESEARCH METHODOLOGY .........................................................................................25
3.0 Introduction .............................................................................................................................25
3.1 Research design .......................................................................................................................25
3.2 Study area and population .......................................................................................................25
3.3 Sample size ..........................................................................................................................26
3.4 Sampling techniques ................................................................................................................26
3.5 Research quality ...................................................................................................................27
3.5.1 Reliability of data .............................................................................................................27
3.5.2 The validity of data ...........................................................................................................27
3.6 Data collection methods ..........................................................................................................27
3.7 Data analysis and interpretation ..............................................................................................28
3.8 Limitations of the study .......................................................................................................28
3.9 Ethical consideration ...............................................................................................................28
CHAPTER FOUR ......................................................................................................................29
Data presentation, Analysis and Discussion of findings ...............................................................29
4.0 Introduction ..........................................................................................................................29
4.1 Demographic information of the respondents .................................................................29
Table 4.1.1 Gender of the Respondent ..................................................................................29
4.2 OBJECTIVE ONE: To determine the level of youth entrepreneurs ...............................34
4.3: OBJECTIVE TWO: To assess the level private sector performance .............................39
4.4: OBJECTIVE THREE. To determine relationship between youth entrepreneurs and
private sector performance ..................................................................................................44
CHAPTER FIVE ...........................................................................................................................50
CONCLUSION AND RECOMMENDATION .........................................................................50
5.1 Conclusion .......................................................................................................................50
5.3 Recommendations............................................................................................................51
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ABSTRACT
This study investigated the effect of the role of youth entrepreneur. The main purpose of this study
was to determine the role of youth entrepreneur private sector performance.. The study had three
specific objectives. The first objective of this study was to determine the youth of entrepreneur in
private sector performance. The second objective of this study was to assess the role of private
sector in banadir region. The third objective of this study was to the relationship between youth
entrepreneur and private sector performance. The researchers used questionnaire as data
instrument, and data was collected from different social fields in Mogadishu like students,
teachers, and parents. Data was analyzed by using Statistical Package for Social Science (SPSS).
The study found that there is significant relationship between youth entrepreneur. The overall
finding indicate that there is positive relation between the two variables The researchers
recommends to establish process to increase the role of private sector in our economy a &
development business sector ,. The sample size was 52 members and used primary data. The
findings can help to know how youth entrepreneur was effect on private sector performance .
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CHAPTER ONE

INTRODUCTION
1.0 introduction
This research focuses on the role of youth entrepreneur in private sector performance
Benadir region. It presents the background of the study, problem statement, objectives of
the study, research questions, significance of the study, scope and limitations of the study
and conceptual frame-work.

1.1 Background of the study

Historically, the role youth’s entrepreneurship needs to be studied separately for two
main reasons. The first reason is that youth’s entrepreneurship has been recognized
during the last decade as an important untapped source of economic growth. youth
entrepreneurs create new jobs for themselves and others and by being different also
provide society with different solutions to management, organization and business
problems as well as to the exploitation of entrepreneurial opportunities. However, they
still represent a minority of all entrepreneurs. Thus there exists of lack of resources
investment causes youth’s fail possibility to become entrepreneurs and their possibility
to become successful entrepreneurs.
The minimum wage also harm the opportunity the youth to becomeeffective
entrepreneurs needs to be addressed by policy makers so that the potential performance
of youth can be fully utilized. While without a doubt the economic impact of youth is
substantial, we still a reliable picture of youth entrepreneurs, describing in detail those
entrepreneurs.
Globally, young people aged between 15 and 24 make up almost a fifth of the world
population (17%) (UN World Population Prospects: The 2012 Revision). In Africa, youth
comprise a fifth of the population (20%); in Asia (18%); Latin America and the
Caribbean (17%), in Oceania (15%); in North America (14%), and in Europe (12%) (UN,
2012). In terms of gender distribution, globally, female youth outnumber their male
counterparts by a small margin. The majority of young people around the globe live in
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urban areas but there are differences by regions. In SubSaharan Africa, for example, a
large proportion of young people live in rural areas.
Globally, young people are facing tremendous challenges, most notably, the
unprecedented levels of unemployment in both developed and developing countries that
was spurred by the 2008 economic crisis. Since the 2008 crisis, the number of
unemployed youth has soared to an estimated 73.4 million young people—12.6 percent
of the total youth population, representing an increase of 3.5 million between 2007 and
2013, and projected to rise to 12.8 percent of the total youth population in 2018 (ILO,
2013)
Moreover, the proportion of youth that are not in employment, education, or in training
(NEET) has increased substantially. In OECD countries, for example, the number of
NEET youth increased by 2.1 percent to reach 15.8 percent between 2008 and 2010,
while in Latin America, the number of NEET youth has remained high at 19.8 percent
since 2006, placing youth in the region at greater risk of labor market and social exclusion
(ILO, 2013).
High unemployment among young people is not limited to individuals with low levels of
education. In many countries, a large proportion of young people who graduate from
university are unable to find employment, prompting many highly educated individuals
to leave their countries in search of opportunities elsewhere. Brain drain, the emigration
of skills, is a significant challenge throughout the developing world. It is particularly
acute in Sub-Saharan Africa, South Asia and in Small Island Developing States, which
lose thousands of highly educated and skilled individuals to developed countries every
year, contributing to a severe shortage of skilled labour, often with negative
consequences on their economies.
There is a higher female unemployment rate when compared with the male rate. The
disparity, however, is more pronounced in regions such as North Africa and the Middle
East, and to some extent, Latin America and the Caribbean (ILO, 2013). In addition,
young women are more likely to earn less when compared with their male counterparts,
and in some developing countries, young women are also more likely to engage in unpaid
family work. Moreover, other groups of young people such as those with low levels of
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education, young people with disabilities as well as young people that reside in rural
areas are likely to experience higher unemployment in some contexts.
Young people have the majority of low quality jobs, tend to earn low pay, and are more
likely to be in the informal economy. In developing countries, young people are likely to
be underemployed and poor, and are more likely to be among the working poor primarily
engaged in agriculture, reflecting lost opportunities to attend school and acquire the skills
and education that could raise their future productivity and earnings (ILO, 2012)
National action plans on youth employment should take into account the dimensions of
investment, enterprise development and labour legislation. UNCTAD’s World
Investment Report 2014 has analysed the key challenges in maximizing the positive
impact and minimizing the risks and drawbacks of public and private investment in SDGs
(Sustainable Development Goals) sectors. It has raised attention to weak absorptive
capacity in some developing countries, suggesting adequate policy responses to
encourage and facilitate entrepreneurship, support to technology, human resources and
skills development and the promotion of linkages and clusters in incubators or economic
zones to support business creation and SME development in SDGs sectors.
According to the ILO (2008), the main elements of active labour market policies include
labourmarket training, career guide, job-search assistance, job-placement programmes,
labourmarket information, public works and community services, employment subsidies,
as well as entrepreneurship programmers’. Promoting youth entrepreneurship has the
potential to contribute to social development as it offers young people an opportunity to
increase their earnings through self-employment, and to create jobs for others, thereby
raising their living standards and those around them, while reducing poverty and building
sustainable livelihoods (YBI, 2013)

Nwaokolo (2003) opine that with the huge data base of youths without jobs and
underdeveloped private sector, Nigeria is principally interesting for analyzing matters
concerning youth entrepreneurs. Onah (2001) added that encouraging small and medium
enterprises become a priority for decision makers. The emergence of youth entrepreneurs
as a viable livelihood alternative is thus high on the policy agenda of the government.
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The study also provides new evidence on the longstanding factors hampering private
sector development, including heavy government bureaucracy, widespread corruption,
and limited access to finance (Nwaokolo 2003; Onah 2001; Worlu 2011). Previous
researchers who investigated this domain have come up with an array of definitions.
Among which is that entrepreneurship is perceived to be resources and process that
individuals adopt opportunities in the market through the creation of new venture firms
(Nasser 2003; Worlu, 2007; Ajagbe and Ismail 2014). It usually encourages social
identity of youths by providing them with a stronger sense of community where they are
valued as well as of ‘meaning’ and ‘belonging’. There are ample evidence that reveals
when jobs are scarce, young individuals particularly are generally likely to be
unemployed (Ismail et al. 2011; Aldershot 2008; Djankov et al. 2005). When there is
economic crisis, young people are most likely to be the first to bear the brunt of laid offs
by employers. The aftermath has resulted to many going back to the rural areas where
the opportunities are lower and some could result to illegal vices. Compared to adults,
the youth of today are almost three times as likely to be unemployed and globally one in
five working youth continues to live in extreme poverty on 1US$/day. Odu (2009)
pointed out that boosting of an effective policy for youth entrepreneurs and strategies is
therefore getting more focus among governments and international organization’s. Odu
(2009) argued that the decision could be viewed as an increasing identification that
responsible youth
education (Odu 2009). Odu (2009) argued that this is because entrepreneurship is
conceived as “making a living by working for yourself”. Entrepreneurship, therefore,
involves the ability to set up a business as different from being employed. This ability
should be acquired. It is clear that while technical education is geared towards the
acquisition of technical skills, entrepreneurship education deals with the skills of
business ownership and management (Ismail and Ajagbe 2013). Hence, entrepreneurship
is the willingness and ability of an individual to seek for investment opportunities, to
establish and to run an enterprise (HRmars, 2015)
1.2 Theoretical background:
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An entrepreneur: can be defined as one who initiates and establishes an economic

activity or enterprise. Entrepreneurship thus refers to the general trend of setting up new
enterprises in a society (Begun, 1999). The International Labor Organization (Levitsky,
1984), cited in Islam (M. Kabir Hassan1 and William J. Hippler, 2014)) defines an
entrepreneur as a person with a set of characteristics that typically includes self-
confidence, result-oriented, risk taking, leadership, originality and future-oriented.
Entrepreneur youth also we can define millstones and huge effort towards involves
economic
activity creating employment opportunity through innovation trade idea

The private sector: encompasses all for-profit businesses that are not owned or operated
by the government. The private sector is the part of the economy, sometimes referred
to as the citizen sector, which is run by private individuals or groups, usually as a means
of enterprise for profit, and is not controlled by the State

1.3 Problem Statement

There is a large number of youth entrepreneurs in the world, youth -owned businesses
already contribute significantly to the world economy which eventually contributes
significantly to development beyond enterprise growth. But the countries do not yet
exploit very well the youth entrepreneurs contributing private business sector
performance.
Despite the potential contributions of youth entrepreneurs towards entrepreneurship in
private sector performance, entrepreneurship in many countries has continued to perform
below expectation; this is due to mismanagement of youth-owned businesses, lack
business ideas.
In Somalia there is small number of youth entrepreneurs that contribute employment
creation and economic growth but it exist a lot of challenge face Somalia youth include
security and socioeconomic problem also have less investment

Therefore this study is believed to explore the role of youth entrepreneurs in private
business sector by identifying specific factors and roles that are responsible for resilience
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Small business in private sector operated by youth entrepreneurs, and shade light on
youth specific differentials of performance that affect their activities.

1.4 Objectives of the Study

1.4.1 General objectives

To investigate the role of youth entrepreneur in private sector performance

1.4.2 Specific objectives

The aim of the study is designed to assess the major roles and influencing of Somali youth
Entrepreneurs in Banadir region.
1. To determine the level of youth entrepreneurs in Benadir region
2. Toa assess the level private sector performance in Banadir region

3. To determine relationship between youth entrepreneurs and private sector

performance in Benadir region.
1.4Research Questions
1. What are the level of youth entrepreneurs in private sector in Benadir region?
2. The role of private sector in Benadir region?
3. What is the relationship between youth entrepreneurs and private business sectors
performance in Bender region?

1.5 Significance of the Study

Youth entrepreneurs create their own jobs and become entrepreneurs since opportunities
of getting employment in either government, non-government or a private This is
possible only if the youth entrepreneurs in private sector are potentially entrepreneurial
opinions to start new business. Generally, the study has the following significances
1. The study will point youth entrepreneur in private sector by examining both at the
individual level (i.e. the choice of becoming self-employed) and at the firm level (the
cooperation of youth owned and managed firms) in order to fully understand the role
of youth entrepreneur in private sector performance in Benadir region.
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2 The finding of this study will contribute to the existing information/literature that
academicians may use, or it helps the next generation of researchers
3 It helps the researcher to fulfill one of the requirements for the award of a
Bachelor’s Degree in Economics

1.6 Scope of the Study

This research is limited to describe the role of youth entrepreneur in private sector
performance in Benadir region. The researcher using questionnaires in the method of
collecting data. This study will be conducted from February to May in 2020

1.7 Conceptual frame work of the Study

Figure 0 .1 Conceptual framework INDEPENDENT VARIABLE DEPENDENT
VARIABLE

Youth entrepreneurship Private sector performance

 Creation employment  Sole

 Innovation
 Pattern ship
 Economic development
 Cooperation

.
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CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction
This chapter discusses the literature related to the following section: definitions and
concepts of youth entrepreneur, youth participants in small businesses, youth
entrepreneurs in creating employment, factors contributing to youth entrepreneurs
2.1 Definitions and concepts of youth entrepreneur

Youth Entrepreneurship Youth entrepreneurship involves the development of

entrepreneurial attitudes, skills and opportunities for young people, from middle school
through young adult hood (e.g., 25 yrs old).People have very different ideas when they
think about an “entrepreneur.” For most individuals, the term connotes both a way of
thinking and acting, as well as the specific role of starting and running an enterprise. (W.
K. Kellogg Foundation, 2006)
Moreover, the proportion of youth that are not in employment, education, or in training
(NEET) has increased substantially. In OECD countries, for example, the number of
NEET youth increased by 2.1 percent to reach 15.8 percent between 2008 and 2010,
while in Latin America, the number of NEET youth has remained high at 19.8 percent
since 2006, placing youth in the region at greater risk of labour market and social
exclusion (ILO, 2013). High unemployment among young people is not limited to
individuals with low levels of education. In many countries, a large proportion of young
people who graduate from university are unable to find employment, prompting many
highly educated individuals to leave their countries in search of opportunities elsewhere.
Brain drain, the emigration of skills, is a significant challenge throughout the developing
world. It is particularly acute in Sub-Saharan Africa, South Asia and in Small Island
Developing States, which lose thousands of highly educated and skilled individuals to
developed countries every year, contributing to a severe shortage of skilled labour, often
 9

with negative consequences on their economies. There is a higher female unemployment

rate when compared with the male rate. The disparity, however, is more pronounced in
regions such as North Africa and the Middle East, and to some extent, Latin America and
the Caribbean (ILO, 2013). In addition, young women are more likely to earn less when
compared with their male counterparts, and in some developing countries, young women
are also more likely to engage in unpaid family work. Moreover, other groups of young
people such as those with low levels of education, young people with disabilities as well
as young people that reside in rural areas are likely to experience higher unemployment
in some contexts. Young people have the majority of low quality jobs, tend to earn low
pay, and are more likely to be in the informal economy. In developing countries, young
people are likely to be underemployed and poor, and are more likely to be among the
working poor primarily engaged in agriculture, reflecting lost opportunities to attend
school and acquire the skills and education that could raise their future productivity and
earnings (ILO, 2012). National action plans on youth employment should take into
account the dimensions of investment, enterprise development and labor legislation.
UNCTAD’s World Investment Report 2014 has analyzed the key challenges in
maximizing the positive impact and minimizing the risks and drawbacks of public and
private investment in SDGs (Sustainable Development Goals) sectors. It has raised
attention to weak absorptive capacity in some developing countries, suggesting adequate
policy responses to encourage and facilitate entrepreneurship, support to technology,
human resources and skills development and the promotion of linkages and clusters in
incubators or economic zones to support business creation and SME development in
SDGs sectors. (UNCTAD, 2015)
Context is increasingly being recognized as a significant determinant of the impact of an
intervention Yet there are substantial gaps in knowledge about which approaches are
most effective, why, and in which contexts. With scarce resources and a growing
emphasis on value for money, governments, donors and NGOs need to improve their
understanding of which youth entrepreneurship support interventions are likely to have
the greatest impact. Then organizations will be equipped to priorities, design and
implement youth entrepreneurship support initiatives more effectively in different
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contexts. There is established consensus that the youth entrepreneurship sector is held
back by a lack of evaluation about what works, why and where:
“The youth livelihood field is characterized by a severe lack of sound evidence… The
dearth of rigorous studies – despite huge demand – severely limits large scale investments
in the sector. The lack of evidence is a constraint to winning public support for youth
livelihoods interventions. Government officials typically want impact and cost-benefit
estimates before investing in large programmers. As a result of the lack of such evidence
in the youth livelihood field, it is often difficult to make a convincing case in comparison
to other interventions, such as infrastructure development, where much more evidence is
available. (ybi, 2012)

2.1.1 to determine the level of youth entrepreneurs

The determinants of entrepreneurship are variously referred to as the ‘entrepreneurial

ecosystem’ or ‘framework conditions for entrepreneurship’, and influences
entrepreneurial attitudes, aspirations, capacity, ability, activity and potential to succeed.
Whilst there is no single definition of what constitutes the determinants of
entrepreneurship, there is fairly broad consensus on the main determinants. In terms of
the drivers of entrepreneurship we identify market opportunities in terms of market size
and internal market openness to new entrants as drivers of entrepreneurship, as well as
likely levels of cultural support for entrepreneurship and availability of alternative
sources to support a livelihood, i.e. employment. These determine the overall demand
side factors for entrepreneurship in a particular context. In terms enablers of
entrepreneurship we identify (based on the literature) infrastructure, health and primary
education, investor protection, access to finance, taxes and regulation, professional and
commercial infrastructure, the macro-economic environment as well as government
entrepreneurship programmers and entrepreneurship education at primary, secondary and
postsecondary level as the basic requirements that need to be met to facilitate
entrepreneurship. We identify higher education, specialized research and training and
technological readiness as Sefficiency enhancers that become more important as the basic
 11

requirements for entrepreneurship improve. Finally, we identify R&D transfer and

business sophistication as innovation enhancers required to enhance the level of
innovation and sophistication among entrepreneurs. Innovation enhancers become more
important as the basic- and efficiency enhancers improve. (Karen Ellis and Carolin
Williams, 2011)

2.1.2Creating employment
The world’s population is growing at a time when traditional, stable labor markets are
shrinking with an estimated 74 million young men and women worldwide unemployed.
The youth unemployment rate is three times higher than its adult counterpart despite the
global educational improvement trend. There is an undeniable need to create employment
for youths. The challenges of youth employment in least-developed and middle-income
countries, which are particularly acute, are subject to many development efforts by
Governments and development partners. Many of these efforts foster the engagement of
youth in productive activities. The success of these initiatives however depends on the
availability and capacity of local enterprises, particularly small and medium sized
businesses. There is now empirical and anecdotal evidence that the number of
sustainably-operating small and medium sized enterprises (SMEs) that can provide work
to additional employees in developing countries is limited and difficult to expand.
Meanwhile, start-up SMEs face severe constraints during their creation related to hurdles
in registration, access to credit, business organization and developing markets.
Entrepreneurship and self-employment are therefore a viable alternative for young
people when given the right skills and provided with adequate support to establish and
develop their own micro or small enterprises. Youth entrepreneurship cannot only create
employment opportunities for selfemployed youth but also for the other young people
who they may employ. In addition, the changing structure of the job market (types of
jobs available, sectors and the nature of hiring employers), the lack of access to
professional networks and the growing value employers place on work experience all put
a strain on young people while entering the job market. (UNIDO, nd) Youth
entrepreneurship development requires an enabling entrepreneurship ecosystem. It
 12

should encourage young people and support them in starting new businesses and help
them grow. Isolated programmers without strategies and strong institutional frameworks
addressing all relevant policy areas in a systemic manner will have only limited impact,
as a bottleneck in one area may become a bottleneck for all other areas. (UN, 2016)
Entrepreneurship and self-employment provide economic opportunities for the world’s
largest ever population of young women and men to create more and better jobs in the
private sector. Globally, the private sector drives jobs growth, accounting for 87 per cent
of total employment in the formal and informal economies in 2016. The majority of the
world’s 1.2 billion young people aged 15–24 live in developing economies, where small
and medium-sized enterprises (SMEs) account for 52 per cent of total employment.
SMEs and young firms are often more dynamic than large firms where employment
growth is concerned. Yet, with a growing number of young people entering the labor
market and limited opportunities for job creation, unemployment and disengagement are
threatening sustainable development and social stability, and may cause people to
migrate in search of jobs. In fact, unemployment figures understate the true extent of the
challenges in the youth labor market. More than 160 million young people in emerging
and developing countries are working, but living in extreme or moderate poverty. When
young people acquire the skills and economic opportunities to realize their potential, this
demographic dividend can help stimulate youth-led job creation. Unleashing the potential
of young women and men as drivers of job creation and economic growth is not only
desirable but critical for sustainable development. (Decent job for youth, nd)
Within the framework of potential efforts and strategies to boost employment and job
creation for young people, entrepreneurship is increasingly accepted as an important
means and a useful alternative for income generation in young people.14 As traditional
job-for-life career paths become rarer, youth entrepreneurship is regarded as an
additional way of integrating youth into the labor market and overcoming poverty.
Supporting this shift in policy is the fact that in the last decade, most new formal
employment has been created in small enterprises or as selfemployment.15 Given global
demographic trends, it is important that the social and economic contributions of young
 13

entrepreneurs are recognized. Entrepreneurship can unleash the economic potential of

young people. (ILO, 2006)
Young entrepreneurs are more active in sectors of high growth and more likely to hire
other young employees and pay them higher wages than older firms would. Youth-led
enterprises can trigger significant momentum for youth-led job creation, given that start-
ups account for up to 50 per cent of newly created jobs, and young entrepreneurs
primarily employ their peers.6 Young people show significantly higher levels of
entrepreneurial initiative than adults (1.6 times higher). Yet, the established business rate
among adults is substantially higher than for youth, pointing to the need for enhanced
support for young entrepreneurs. Youth entrepreneurship and self-employment also
foster local innovation and improve the resilience of young people on the job market, as
they encourage young people to find new business solutions to social and economic
challenges. Consequently, youth-led social entrepreneurship has proved to hold great
potential in mobilizing young people to address these challenges. Self-employment
among young people can be voluntary and profitable. It is important to distinguish this
from self-employment as a coping mechanism used by young people who have no
alternative source of income or employment and who therefore become their own
“employer” as a last resort. The challenges vary greatly among these groups.
Entrepreneurs by choice select this form of remunerative activity over other employment
alternatives, with a view to boosting their income or gaining more independence.
Entrepreneurs by necessity, also known as subsistence entrepreneurs, face insufficient
labor demand and therefore lack formal employment opportunities, and must attempt
entrepreneurial ventures in the low productivity and dire working conditions prevailing
in the informal economy. (Decent job for youth,nd).
Youth unemployment continues to be a developmental challenge in several African
countries despite the positive economic growth rates experienced over the past decade.
There are indicators that this growth has not generated sufficient and decent employment
opportunities for the youth. As a result, unemployment, working poverty, vulnerable
employment and underemployment are widespread amongst Africa’s youth. Moreover,
demographics indicate that Africa is going through a youth bulge with a large proportion
 14

of its population below 25 years of age .This demographic shift presents opportunities
for a growth dividend if combined with the right capital and technology – as the case of
East Asia - but it can also represent a major threat (Brooks et al., 2012). Insufficient
employment opportunities amidst a rapidly growing young labor force can lead to social
unrest and political instability (Ministry of Gender, Labor and Social Development. The
difficulties faced by young people in most developing countries in finding work are
attributed to limited expansion of employment opportunities, skills mismatches and
limited or no work experience .As a result, most African youth engage in low quality
informal sector jobs. The informal sector accounts for about 90 percent of the jobs created
in the continent (World Bank, 2009). In an effort to create jobs for the youth, various
measures addressing the demand side and supply side of labor have been implemented.
Promotion of entrepreneurship financing and overall self-employment through targeted
youth funds are increasingly considered as viable options. Indeed, previous research
shows that in addition to job creation, entrepreneurship has the potential to improve
livelihoods and economic independence of young people. (GEMMA AHAIBWE
IBRAHIM KASIRYE, 2015)
For countries with young populations, youngsters represent a critical resource that may
foster future economic development and structural transformation. However, realizing
these economic benefits depends on the availability of employment opportunities. Efforts
to improve youth employment opportunities (including through developing youth
entrepreneurship) hold the potential to deliver widespread benefits to the entire economy.
Self-employment and entrepreneurship can provide career options for young people by
unleashing their economic potential. An entrepreneur’s relentless search for opportunities
is made possible by the “rules of the game” — an economy’s entrepreneurial reward
structure. For society to support and invest in youth entrepreneurship today is like a
venture capitalist investing in the early stage of an innovative company that later achieves
equity growth. An economy’s future structure is determined by today’s investment in
human capital and new skills. Addressing youth employment problems is essential not
only for realizing economic development but also other development objectives, including
the achievement of the Millennium Development Goals (MDGs). It is notable that, within
 15

the MDGs, there is no goal dedicated directly to youth. However, the situation facing the
youth population has direct implications for the achievement of development goals and
objectives — such as sustainable poverty reduction. Looking beyond the MDGs, the
critical importance of the productive employment of youth has been recognized in
subsequent documents outlining a vision for a new development agenda. The report that
emerged from the United Nations Conference on Sustainable Development The Future
We Want, specifically identified issues affecting youth, including problems associated
with youth employment, as key development challenges. (UNIDO,nd)
It is important to place the employment issue at the centre of the national and international
agenda. Productive employment is also crucial for the success of Sustainable
Development Goals (SDGs) and achieving human development. Creating employment
for the youth in Asia and the
Pacific provides an opportunity for achieving some of these goals. Several countries in the
Asia-
Pacific region are experiencing demographic changes. Over 60% of the world’s youth
live in Asia and the Pacific, which translates into more than 750 million young women
and men aged 15 to 24 years. They represent a key asset for the countries of this region.
Young people are a major human resource for development, key agents for social change,
and a driving force for economic development and technological innovation. But
harnessing this resource is a major challenge
(Box 1). The youth challenge is considered as the most critical of the 21st century’s
economic development challenge. (APO, 2019)
Africa is the most youthful continent in the world, with 226 million youth (aged 15–24)
in 2015 which is roughly 20% of the global youth population. While youth populations
in other regions of the world have stabilized, Africa’s youth population is growing rapidly
and is expected to increase by 42% by 2030. At the same time, youth in Africa face
significant economic challenges, accounting for 60% of all unemployed in Africa. Hence,
youth employment is a top priority for Africa, “[T]he future of Africa belongs to youth,
but the quality of that future will be determined by what they do with it today”. The
African Union has adopted the theme ‘Harnessing the Demographic Dividend through
 16

investments in Youth’ for 2017. In addition, youth feature prominently in the African
Development Bank’s

Differ among countries. Therefore, it is important to learn lessons from what works in
creating jobs, where and why. Boosting youth employment requires an integrated
approach that addresses the demand side (macro level) and supply side (micro level), as
well as linkages between these two in the labor market. This must be supported by
sufficient resources, coordination at the country level, and a coherent approach in which
opportunities for young people are mainstreamed with existing employment and
investment policies. Moreover, at the micro level, young people need good examples in
the form of inspiring role models, proper education, the development of soft skills and
coaching in order to obtain (and keep) jobs.

2.1.3 Innovation
Innovation is a word that is derived from the Latin word innovare, this means “into new”.
The simplest definition of innovations is doing something different. Innovation is a word
that often is used in the business world and for companies this usually means something
risky, costly and time consuming (Costello & Prohaska, 2013). Innovation can also be
explained as s new idea, product, device or novelty. It is a mind-set, a way of thinking
beyond the present and into the future. Innovations is important for companies and when
used well it can be a process, strategy and management technique (Kuczmarksi, 2003).
Innovation can at a fundamental level be the process of generating and combining ideas
to make a relationship between present accomplishments and past experiences to solve a
future problem. This is often associated with technological feats and it play a critical role
in the world economy (Baskaran & Mehta, 2016). Innovation is big in the business world
and is sustainable to create value and be strong in the competitive environment.
There is a growing importance of knowledge and innovation to economic growth and
technological competitiveness in all fields and it is a strong concern for scientist,
managers and for countries in its entirety. The universities, business sector and the public
sector all play an important role in the development of innovation. The key to innovation
development involves a close collaboration with science, financing and technology and
 17

this has developed a model called triple helix model. Innovation is now days a key
ingredient to manage the global competitiveness and companies have to deal with the
creation of new products and services (Anneli Stenberg, nd) There are a significant
number of definitions of innovation that are used across different fields in academia,
industry, government and service provision. The academic literature available relates to
a wide spectrum of disciplines and can cut across discipline areas. For this study, it is
important to have a definition of innovation that is suitable for the subject and research
being undertaken. To do this, different definitions of innovation in the literature has been
examined to establish an understanding of the components that make up the concept of
innovation and specifically in relation to social housing. The wide variety of literature
and language used about innovation adds to different interpretations and understandings
about basic concepts about the meaning of innovation .As well as looking at the different
components that make up innovation the literature also provides several models, theories
and frameworks to understand innovation. Approaches have been made to establish a
unified understanding of innovation which would have some advantages around clarity
and single purpose, but it has also been argued that such an approach would not be
helpful. The definition of innovation used in this study has been developed following a
review of the literature and examination of the components of innovation. It supports the
academic research being undertaken through this study to make a meaningful
contribution to knowledge. (S. P. Taylor, 2017)

Design innovation, on the surface, appears to embrace two very basic explanations. The
first explanation, ‘innovation in design’, refers to ‘novelties introduced in the design of
a particular product or artifact’. The second, ‘innovation by design’, covers ‘a new
product or artifact or a novelty in a product or artifact acquired by design function.’ This
part eventually aims to reach to a definition of the term ‘design innovation’. To achieve
this, it is essential to make an in-depth analysis of the conceptual and etymological
framework and a review of existing attempts to build such definition. Thus, before
attempting to arrive at a definition, this part seeks to make a conceptual and etymological
review of the literature for the ‘design’ and ‘innovation’ concepts that comprise the
 18

framework for ‘design innovation,’ and existing attempts to build a definition within this
framework. (Bilge Mutlu,Alpay Er, 2003)

2.1.4 Economic development

No single definition incorporates all of the different strands of economic development.
Typically economic development can be described in terms of objectives. These are most
commonly described as the creation of jobs and wealth, and the improvement of quality
of life. Economic development can also be described as a process that influences growth
and restructuring of an economy to enhance the economic well being of a community. In
the broadest sense, economic development encompasses three major areas:
The main goal of economic development is improving the economic well being of a
community through efforts that entail job creation, job retention, tax base enhancements
and quality of life. As there is no single definition for economic development, there is no
single strategy, policy, or program for achieving successful economic development.
Communities differ in their geographic and political strengths and weaknesses. Each
community, therefore, will have a unique set of challenges for economic development.
(The International Economic Development Council, nd) economic development differs
from most economic development differs from most fi elds in economics because the
study of low-income economies, and of people living in low-income the study of low-
income economies, and of people living in low-income economies, draws on all branches
of economics. The particular study of economies, draws on all branches of economics.
The particular study of economic growth is perhaps closest to being a fi eld like labor or
health economics, but what is currently referred to as development economics is broader,
so although but what is currently referred to as development economics is broader, so
although my examples involve important issues in economic development, my
conclusions apply more broadly to other areas of applied economics. In an earlier paper,
I apply more broadly to other areas of applied economics. In an earlier paper, I have
argued that learning about development requires us to investigate have argued that
learning about development requires us to investigate mechanisms (Deaton, 2010a).
Finding out about how people in low-income countries can and do escape from poverty
 19

is unlikely to come from the empirical evaluation of actual projects or programs, whether
through randomized trials or econometric methods projects or programs, whether
through randomized trials or econometric methods that are designed to extract defensible
causal inferences, unless such analysis tries that are designed to extract defensible causal
inferences, unless such analysis tries to discover why projects work rather than whether
they work— however important they work—however important the latter might be for
purposes of auditing. By contrast, investigation, testing, the latter might be for purposes
of auditing. By contrast, investigation, testing, and modification of mechanisms that can
be widely applied, at least potentially, action of mechanisms that can be widely applied,
at least potentially, allows the integration of disparate empirical findings and comprises
a progressive empirical research strategy. (Angus Deaton, 2010)
A major goal of poor countries is economic development or economic growth. The two
terms are not identical. Growth may be necessary but not sufficient for development.
Economic growth refers to increases in a countries production or income per capita (Box
2-1). Production is usually measured by gross national product (GNP) or gross national
income (GNI), used interchangeably, an economies total output of goods and services.
Economic development refers to economic growth accompanied by changes in output
distribution and economic structure. These changes may include an improvement in the
material well-being of the poorer half of the population; a decline in agricultures share
of GNP and a corresponding increase in the GNP share of industry and services; an
increase in the education and skills of the labor force; and substantial technical advances
originating within the country. As with children, growth involves a stress on quantitative
measures (height or GNP), whereas development draws attention to changes in capacities
such as physical coordination and learning ability, or the economics ability to adapt to
shifts in tastes and technology. (Nafziger, 2006)
The theory and practice of economic development have converged in the last two decades
on a remarkably simple view of growth fundamentals. Stated in its starkest form, this
view is that economic growth requires two things: foreign technology and good
institutions. This perspective is well grounded in the neoclassical model of economic
growth, which predicts that poor countries will experience rapid convergence with
 20

advanced economies once they have access to state-of-the-art technologies and their
governments respect property rights. From this perspective, failure to grow can be
attributed two one or both of two pathologies. One is the “closed-economy” pathology,
in which governments retard technological progress by reducing access to foreign
investment and imported capital equipment and intermediate goods. (Ricardo Hausmann,
2002)

2.2 Private sector performance

The OECD defines the private sector in development cooperation as organizations that
engage in profit-seeking activities and have a majority private ownership (i.e. not owned
or operated by a government). This definition includes financial intermediaries,
multinational companies, MSMEs, cooperatives, individual entrepreneurs and farmers
who operate in the formal and informal sectors. It excludes actors with a non-profit focus,
such as private foundations and CSOs. The private sector thus encompasses
organizations of multiple forms and sizes, ranging from those whose purpose are to create
shareholder value to more people-centered social businesses and cooperatives.
(CONCORD Europe, 2017)

2.2.1 Sole Proprietorship

A sole proprietorship is a business owned and managed by a single individual. It is the
most common and simplest type of business entity. A sole proprietorship can have
multiple people operating the business, but it must have one sole owner. Sole
proprietorships have several advantages over other business entities. They are easy to
form, and the owners enjoy sole control of the business profits. However, they also have
disadvantages, the biggest of which being that the owner is personally liable for all
business losses and liabilities. With minimal licenses to obtain or separate forms to
follow, sole proprietorships are relatively easy to form, easy to maintain, and easy to
dissolve. (UNIVERSITY OF RICHMOND, nd)
The term ‘sole’ means single and ‘proprietorship’ means ‘ownership’. So, only one
person is the owner of the business organization. This means, that a form of business
 21

organization in which a single individual owns and manages the business, takes the
profits and bears the losses, is known as sole proprietorship form of business
organization. A sole proprietorship is a business owned by only one person. It is easy to
set-up and is the least costly among all forms of ownership. The owner faces unlimited
liability which means that the creditors of the business may go after the personal assets
of the owner if the business cannot pay them. The sole proprietorship form is usually
adopted by small business entities. These firms are owned by one person, usually the
individual who has day-to-day responsibility for running the business. Sole
proprietorships own all the assets of the business and the profits generated by it. (Odisha
State Open University, nd)

2.2.2 Partnership
Business partnership is new yet extremely popular among the business companies. New
economic entities constantly emerge and their operation is based on cooperation and
targeted to successful development and expansion of business in the future. Different
authors define partnership in a different way. Although there is no any widely recognized
partnership definition, most of the scientists describe it as a program designed to
administer labor relations based on joint handling of the problems between individual
“partners” who develop commonly beneficial results. Therefore, to give a distinct and
comprehensive definition of partnership, it is necessary to analyze definitions of
partnership proposed by different authors. Most of the authors define partnership as a
certain process targeted to implementation of common goals and mutual benefit. The
partnership as management of the relationship, cooperation among a number of entities.
V. Bagdonas was the only author to underline that the partnership is based on a certain
partnership agreement (contract). Legal Information Institute, LEPA underlines that
partnership is based on distribution of joint benefit, profit and loss among the partners.
As most of business companies are profit oriented, all the authors describe partnership as
relationships based on striving for the same goal. R. Harnesk defined partnership as a
holistic approach based on systematic thinking targeted to modern business management.
(D. Grundey, I. Daugėlaitė, 2009)
 22

Hundreds of partnerships have been formed worldwide during the past two decades.
Some of them lasted only a short period; others have been operating a long time. Some
concentrate on narrow local targets while others ambitiously try to co-ordinate broad
policy areas in large regions where millions of people live and work. There are
partnerships primarily oriented towards business circles and others focused on labour
market or social issues. “Bottom up” can be seen as a key principle here, but it is good
to remember that a good number of partnerships have been created as part of a central
government strategy to support the delivery of programmes at the local level. Many
studies have been carried out on the subject, which demonstrate that a partnership is a
valuable instrument or “organisational” model to overcome weaknesses of the policy and
governance framework. Nonetheless, partnerships face several obstacles: they are
difficult to set up and maintain, they require political will and resources, and results are
not likely to come overnight. (OECD , nd)

2.2.3 Cooperation
Cooperation and agreements between companies are not recent phenomena. Marshall
(1997) carried out research with the aim of denouncing abusive conduct by companies
wishing to restrict competition, as well as establishing behavioral models that would
enable the situation of all participants to be improved. The subject was studied from a
collusive behavior perspective in a context of imperfect competition. The word
‘agreement’ used to conjure up pejorative connotations, since it was understood that
‘agreements’ were concluded exclusively to restrict competition. The term was
synonymous with sharing the market, common price fixing or joint control of distribution
channels. This is the reasoning that has prevailed traditionally in industrial economy
schools of thought, where cooperation agreements, of both horizontal and vertical types,
were analyzed as being coordination strategies that were damaging for third parties and
did not produce a social optimum. Cease (1972), meanwhile, approaches the subject of
cooperation from an analysis of internationalization, emphasizing the role of transaction
costs and contractual relations between related companies. He describes cooperation as
an integration of an organizational and contractual nature that enables companies to avoid
 23

the market price formation mechanism. Increased cooperative relations between

companies favor the appearance of the visible hand of management (Nieves Arranz Peña
and Juan Carlos Fernández de Arroyabe, nd)
Traditional business strategy is organized around competition––win–lose models fueled
by SWOT analyses, market share frameworks, hard measurement, and protection of
quantifiable private assets. In mature industries, cooperation is confined to supporting
industry associations, which focus on issues of common concerns such as tax rules, and
professional bodies, which set common technical standards. Cooperation is one partner
in a pair of strategic choices; its constant companion is competition. The two go hand-
in-hands, posing a choice at every juncture, a choice that arises because of a basic
dilemma—traditionally framed as a social dilemma. (Institute for the Future, 2004)

2.3 Relationship between youth entrepreneur and private

sector performance
“Entrepreneurship is the recognition of an opportunity to create value, and the process of
acting on this opportunity, whether or not it involves the formation of a new entity. While
concepts such as ‘innovation’ and ‘risk taking’ in particular are usually associated with
entrepreneurship, they are not necessary to define the term.” This definition focuses on
behavior rather than traits, and views entrepreneurship as “a set of behaviors and an
entrepreneur is someone who undertakes these behaviors”. A behavioral definition of
youth entrepreneurship focuses on what an entrepreneur does and how he or she does it,
rather than identifying and classifying specific
‘entrepreneurial’ traits and qualities, avoiding the suggestion that entrepreneurs are born
and not made. (UNEVOC, 2016)
Entrepreneurship and private sector engagement are key drivers of regional industrial
diversification and future competitiveness. Entrepreneurial start-ups, scale-ups and
entrepreneurial employees in large companies spur economic growth and new job
generation in emerging fields of (industrial) activity. Economic development does not
emerge automatically; entrepreneurs who experiment at the level of new and established
firms are needed. While some of these experiments fail, others succeed as innovations
 24

and create wealth for society. Regions in industrial transition are often characterized by
capital-intensive, sometimes declining industry dominated by large (often multinational)
companies, creating high barriers to entry for entrepreneurs and start-ups. Empowering
and encouraging entrepreneurship is even more important in this type of region than in
other regions because it helps diversify the local economy and move into new activities.
(OECD , 2019)
 25

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction
This chapter introduces how this research will conduct, and the research design that will
use. It also identifies the general population of the study area — now Mogadishu,
Somalia and the sample population which the study will reach. It explains the sampling
techniques that were used, how data was collected, and how it was interpreted.

3.1 Research design

This study was basically use descriptive research and descriptive research design is
method of investigation is used to describe characteristics of a population or phenomenon
being studied. It does not answer questions about how/when/why the characteristics
occurred. A questionnaire is designed to gather information relevant to this topic. The
researchers of this study selected this tool, because of it considers issues such as economy
of the design, rapid data collection and ability to understand a population from part of it.
Descriptive design is suitable for extensive research.
However, the study survived the role of financial reporting on business decision making;
since descriptive design may facilitate this research to answer the research questions.

3.2 Study area and population

This research conducted in Mogadishu, Somalia. Mogadishu is a city of Somalia.
Mogadishu is the largest city that lives Somali people and approximately 3.5 million
people lives.
The target populations of the study will 60respondents. According to the registration of
the participants, 40 people from youth entrepreneurs 20 people from chamber of
commerce.
 26

CATEGORIES Participants Sample size

1 Youth entrepreneurs 40 35%

2 Chamber of commerce 20 17%

Total 60 52

Source primary data 2020

3.3 Sample size

According to the formula, the sample size was 52 respondents. To find out the ideal sample
size for a population, the study will used Slovene‘s formula which is n=N/ (1+
(N×e^2)), where n= sample size,
N=60/(1+(60*0.0025)n=

52 N=population n=

sample size e=

significance which is

5%

3.4 Sampling techniques

The study employed purposive sampling which belongs to non-probability sampling
techniques, and simple random sampling which belongs to probability sampling.
Purposive Judgmental sampling enables you to use your judgment to select cases that
will best enable you to answer your research question(s) and to meet your objectives.
This form of sample is often used when working with very small samples (Saunders,
Lewis, &Thornhil , 2009 )
Simple random sampling (sometimes called just random sampling) involves you
selecting the sample at random from the sampling frame using either random (Saunders,
Lewis, &Thornhil, 2009)
 27

3.5 Research quality

3.5.1 Reliability of data

Reliability refers to the stability of the measure used to study the relationships between
variables. The questions in the questionnaire were designed taking into consideration the
issues related to the problem and goals of the study and theories on the subject. It is
therefore believed that the responses and results from this study are reliable.

3.5.2 The validity of data

Validity of the study will assured through expert knowledge, and the researcher will make
sure at least the validity of data. However, validity means in research the ability to
produce findings that are in agreement with theoretical or conceptual values: in other
words, to produce accurate results and measure what is supposed to be measured.
Finally, a research instrument is said to be valid if it actually measures what it is supposed
to measure.
3.6 Data collection methods
Data can be collected by, questionnaires, due to the type of data needed to examine the
hypothesis; consequently, the questionnaire survey seems to be most appropriate to
gather data in the current study because the population consists of some selected
members located in Mogadishu city. This is the technique used by the researcher to
obtain data for analysis. The researcher used questionnaire. This study collected primary
data from sample size of 52 responds from Mogadishu City. The data collected using
hand delivery and the researchers are responsible for this data collection. Then, it was
shared with the respondents to fill the questionnaires appropriately.
 28

3.7 Data analysis and interpretation

Data was analyzed in quantitative because research instrument is questionnaire,
by using statistical package of social science (SPSS Version 16.0 or 20.0) to examine the
role of youth entrepreneur in private sector performance well as Descriptive statistics
because it can utilize our objectives. Descriptive statistics is the use of measure of central
tendency such as mean, mode and median as stated (Saunders & Thornhill, 2009).

The researcher employed quantitative methods of data analysis. For quantitative method
is scientific method of numeric data For the quantitative data the themes will make and
the outcomes will use to enrich and the qualitative results of the research. The researcher
used citations for the interviews for elaboration in the analysis.

3.8 Limitations of the study

The major limitation of this study are; first, the census of the population will difficult to
get as well as the sample will estimated by researchers by adopting foreign studies;
second, the language is also the greatest barrier in getting the most correct answers for
the questionnaire; next, the survey instrument used in this study will only questionnaire,
since there are other suitable methods like questionnaire with interview; finally,
extraneous variables was outside the researchers control including honesty, personal
biases.

3.9 Ethical consideration

In general, ethics is defined as systematic study of behavior based on moral principles,
philosophical choice and value of right and wrong conduct. In this study, the researchers
considered the ethical issues throughout the research project, and kept the openness,
privacy and confidentiality of the respondent, to keep the ethical issues data given by the
respondent were used only for academic purpose. This research will fully conducted
ethically and where permission is required to reproduce materials was wanted, the
researchers made sure that their opinion do not override other interest of the research
rather than academic purpose and gave fair consideration.
 29

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DISCUSSION

OF FINDINGS

4.0 Introduction
This chapter represents the main contribution of the researcher during his field survey,
the researchers selected experienced target group from the population in order to find out
valid results that from 52 sample respondents in STUDENDS, TEACHERS, PARENTS
in
Mogadishu. At the first, the researcher distributed written questionnaires that related to
the variables of the corruption and its impact of education in Mogadishu-Somalia,

4.1 Demographic information of the respondents

Table 4.1.1 Gender of the Respondent

Frequency Percent Valid Percent Cumulative Percent

Valid male 35 67.3 67.3 67.3

female 17 32.7 32.7 100.0

Total 52 100.0 100.0

Table 4.1.1: shows that the characteristics of the respondents by gender. The most
respondents were male 35 and their percentage was (67.3%). The female respondents
were 17 and their percentage of (32.7%). The most of the respondents were male.
Figure 4.1.1 Gender of the Respondents
 30

Table: 4.1.2 Age of the Respondents

Valid 18-30 33 63.5 63.5 63.5

31-40 12 23.1 23.1 86.5

41-50 7 13.5 13.5 100.0

Total 52 100.0 100.0

Table 4.1.2: shows the respondents by Age. The age between 18 and 30 years of
respondents were 37 and their percentage (71.2%), the age between 31 and 40 years were
9 and their percentage (17.3%), the age between 41 and 50 years of respondents were 4
and their percentage (7.7%), the age51 and above years of respondents were 2 and their
percentage (3.8%). The most of the respondents were between 18-30 years.
Figure: 4.1.2 Age of the Respondents
 31

Table 1: 4.1.3marital status

Frequency Percent Valid Percent Cumulative Percent

Valid single 42 80.8 80.8 80.8

married 10 19.2 19.2 100.0

Total 52 100.0 100.0

shows the respondents by martital . The age between single and married of respondents
were single 42 and their percentage (80.8%),were married were 10 and their( 19.2%),
The most of the respondents were single

Figure: 4.1.3 marital status

 32

Table 4.1.4 Education of the Respondents

Frequency Percent Valid Percent Cumulative
Percent
Valid Secondary 7 13.5 13.5 13.5

Bachelor 40 76.9 76.9 90.4

Master 5 9.6 9.6 100.0

Total 52 100.0 100.0

Table 4.1.4: shows the characteristics of the respondents by level of education. The
respondents with secondary were 5 and their percentage of (9.6%). The respondents with
diploma were 5 and their percentage of (9.6%).The respondents having a bachelor degree
were 34 and their percentage of (65.4%). The respondents having a master degree were
8 and their percentage of (15.4%). The majority of the respondents were having Bachelor
degree.

Table 4.1.4 Education of the Respondents

 33

Table 4.1.5 occupation respondents

Frequency Percent Valid Percent Cumulative

Percent

Valid Employee 19 36.5 36.5 36.5

self employee 11 21.2 21.2 57.7

Unemployed 22 42.3 42.3 100.0

Total 52 100.0 100.0

Shows the characteristics of the respondents by level of occupation . The respondents

with Employee were19 and their percentage of 36.5%). The respondents with self
employee were 11 and their percentage of( 21.2%).The respondents having a
unemployed were 22and their percentage of (42.3%). The majority of the respondents
were unemployed

Table 4.1.5 occupation respondents

 34

4.2 OBJECTIVE ONE: To determine the level of youth

entrepreneurs
Table 4.2.1 youth have great role of prticipation entrepreneurs

Frequency Percent Valid Percent Cumulative

Percent

Valid Disagree 11 21.2 21.2 21.2

Agree 16 30.8 30.8 51.9

strongly agree 25 48.1 48.1 100.0

Total 52 100.0 100.0

Table 4.2.1 shows the characteristics of the respondents by youth have great role of
participation entrepreneurs. The respondents having strongly agreed were 25 and their

Percentage of (48.1%). The respondents having agreed were 16 and their percentage of
(30.8%).The respondents having disagreed were 11 and their percentage of (2.12%).
Most of the respondents were having strongly agreed.
figure 4.2.1
 35

Table4.2.2Youthdon’tparticipantinSomaliaentrepreneursinBenadirbecausethey
haven’tanyfund
Frequency Percent Valid Percent Cumulative
Percent

Valid Disagree 6 11.5 11.5 11.5

Agree 32 61.5 61.5 73.1

strongly agree 14 26.9 26.9 100.0

Total 52 100.0 100.0

Table 4.2.2 shows the characteristics of the respondents by Youth entrepreneurs don’t
participant in Somalia business because they haven’t any fund The respondents having
strongly agreed were 14 and their percentage of (26.9%). The respondents having agreed
were 32 and their percentage of (62.5%). The respondents having disagreed were 6 and
their percentage of 11,5%). Most of the respondents were having agreed.

Table4.2.2Youthdon’tparticipantinSomaliaentrepreneursinBenadirbecausethey
haven’tanyfund
 36

Table 2Table 4.2.3 Youth contribute growing small entrepreneur and large in
bandir region
Frequency Percent Valid Percent Cumulative
Percent

Valid strongly disagree 15 28.8 28.8 28.8

Disagree 29 55.8 55.8 84.6

Agree 8 15.4 15.4 100.0

Total 52 100.0 100.0

Table 4.2.3 shows the characteristics of the respondents by Youth contribute growing small

entrepreneur and large in bandir region The respondents having strongly degreed were 15and their
percentage of 28.8%). The respondents having agreed were 8 and their percentage of
(15.4%). The respondents having strong disagreed were 15 and their percentage of
(28.8%). .Most of the respondents were having agreed.

figure4.2.3 Youth contribute growing small entrepreneur and large in bander region
 37

Table 4.2.4 Somali government encourages youth to participate small

entrepreneur
Frequency Percent Valid Percent Cumulative
Percent

Valid strongly disagree 34 65.4 65.4 65.4

Agree 18 34.6 34.6 100.0

Total 52 100.0 100.0

Table 4.2.4 shows the characteristics of the respondents by Somali government

encourages youth to participate small entrepreneur
The respondents having strongly disagreed were 34 and their percentage of (65.4%). The
respondents having agreed were 18 and their percentage of (34.6%). Most of the
respondents were having agreed.

figure 4.2.4

Table 4.2.5 Youth faced challenges for the participating of entrepreneur due to lack
of copy rights, intellectual rights, free and fair competition.
 38

Frequency Percent Valid Percent Cumulative

Percent

Valid Disagree 8 15.4 15.4 15.4

Agree 18 34.6 34.6 50.0

strongly agree 26 50.0 50.0 100.0

Total 52 100.0 100.0

Table 4.2.5 shows the characteristics of the respondents by faced challenges for the
participating of entrepreneur due to lack of copy rights , intellectual rights, free and fair
competition The respondents having strongly agreed were 26 and their percentage of
50%). The respondents having agreed 18 and their percentage of 34.6%). The
respondents having disagreed were 8 and their percentage of 15,4%). .Most of the
respondents were having strongly agreed. Table 4.2.5
 39

4.3: OBJECTIVE TWO: To assess the level private sector performance

Table 4.3.1 the private sector contribute growing economic
Frequency Percent Valid Percent Cumulative
Percent

Valid Disagree 10 19.2 19.2 19.2

Agree 37 71.2 71.2 90.4

strongly agree 5 9.6 9.6 100.0

Total 52 100.0 100.0

Table 4.3.1 shows the characteristics of the respondents by The private sector contribute
growing economic The respondents having strongly agreed were 5 and their percentage
of (9,6%). The respondents having agreed were 37 and their percentage of (71.2%).The
respondents having disagreed were 10 and their percentage of (19.2%). Most of the
respondents were having agreed.

figure 4.3.1 The private sector contribute growing economic

 40

Table 4.3.2 Pattern ship sector contribute to create employment

Frequency Percent Valid Percent Cumulative
Percent

Valid strongly disagree 8 15.4 15.4 15.4

Disagree 32 61.5 61.5 76.9

Agree 12 23.1 23.1 100.0

Total 52 100.0 100.0

Table 4.3.2 shows the characteristics of the respondents by Pattern ship sector contribute
to create employment .The respondents having strongly disagreed were 8 and their
percentage of (15,4%). The respondents having agreed were 12 and their percentage of
(23.1%). The respondents having disagreed were 32 and their percentage of (61.5%).Most
of the respondents were having strongly agreed.

figure 4.3.2
 41

Table 4.3.3. Somalia private sector face a lot of challenges due lack of
investment
Frequency Percent Valid Percent Cumulative
Percent

Valid disagree 10 19.2 19.2 19.2

agree 27 51.9 51.9 71.2

strongly agree 15 28.8 28.8 100.0

Total 52 100.0 100.0

Table 4.3.3 shows the characteristics of the respondents bySomalia private sector face a
lot of challenges due lack of investment The respondents having agreed were 27 and their
percentage of (51.9%). The respondents having disagreed 10and their percentage of
(19.2%). The respondents having strong agreed 15 and their percentage of (28.8%). Most
of the respondents were having agreed.
figure 4.3.3
 42

Table 4.3.4 The government doesn’t encourages growing private sector

Frequency Percent Valid Percent Cumulative
Percent

Valid Disagree 7 13.5 13.5 13.5

Agree 12 23.1 23.1 36.5

strongly agree 33 63.5 63.5 100.0

Total 52 100.0 100.0

Table 4.3.4 shows the characteristics of the respondents by Thegovernmentdoesn’tencouragesgrowing

private sector. The respondents having strongly agreed were 33 and their percentage of
(63.5%). The respondents having agreed were 12 and their percentage of (23,1%). The
respondents having disagreed were 7 and their percentage of (13.5%).Most of the
respondents were having strong agreed.

Table 4.3.4
 43

Table 4.3.5 Cooperation sector is largest private sector contribute job

creation
Frequency Percent Valid Percent Cumulative
Percent

Valid Disagree 3 5.8 5.8 5.8

Agree 21 40.4 40.4 46.2

strongly agree 28 53.8 53.8 100.0

Total 52 100.0 100.0

Table 4.3.5 shows the characteristics of the respondents by Cooperation sector is largest
private sector contribute job creation. The respondents having strongly agreed were 28
and their percentage of (53.8%). The respondents having agreed were 21 and their
percentage of (40.4%). The respondents having disagreed were 3 and their percentage of
(5.8%). .Most of the respondents were having strongly agreed.

Table 4.3.5 Cooperation sector is largest private sector contribute job

creation
 44

4.4: OBJECTIVE THREE. To determine relationship between youth

entrepreneurs and private sector performance
Table 4.4.1 there is relationship between youth entrepreneurs and
private sectors performance
Frequency Percent Valid Percent Cumulative
Percent

Valid strongly disagree 9 17.3 17.3 17.3

Disagree 28 53.8 53.8 71.2

Agree 15 28.8 28.8 100.0

Total 52 100.0 100.0

Table 4.4.1 shows the characteristics of the respondents there is relationship between
youth entrepreneurs and private sectors performance. The respondents having strongly
disagreed were 9 and their percentage of (17.3%). The respondents having agreed were
15and their percentage 28.8%)The respondents having disagreed were 28 and their
percentage 53.8Most of the respondents were having disagreed.

figure 4.4.1 1 there is relationship between youth entrepreneurs and

private sectors performance

 45

Table 4.4.2: Youth entrepreneur contribute growing private sector

Frequency Percent Valid Percent Cumulative
Percent

Valid strongly disagree 8 15.4 15.4 15.4

Disagree 19 36.5 36.5 51.9

Agree 16 30.8 30.8 82.7

strongly agree 9 17.3 17.3 100.0

Total 52 100.0 100.0

Table 4.4.2 shows the characteristics of the respondents by : Youth entrepreneur

contribute growing private sector. The respondents having strongly agreed were 9 and
their percentage of (17.3%). The respondents having agreed were 16 and their
percentage of (30.8%). The respondents having disagreed were 19 and their percentage
of 36.5%).The respondents having strongly disagreed were 8 and their percentage of
(5.4%).Most of the respondents were having disagreed.

figure 4.4.2: Youth entrepreneur contribute growing private sector

 46

Table 4.4.3: Support youth entrepreneurs includes giving funds in

order to start own private business sector
Frequency Percent Valid Percent Cumulative
Percent

Valid Agree 22 42.3 42.3 42.3

strongly agree 30 57.7 57.7 100.0

Total 52 100.0 100.0

Table 4.4.3 shows the characteristics of the respondents by Support youth entrepreneurs
includes giving funds in order to start own private business sector The respondents
having agreed were 22 and their percentage of 42.3%). The respondents having strongly
agreed were 30 and their percentage of 57.7%). ).Most of the respondents were having
strongly agreed.

Table 4.4.3: Support youth entrepreneurs includes giving funds in order

to start own private business sector

 47

Table 4.4.4: Competition or free market contributes youth

entrepreneurs to participate private business sector.
Frequency Percent Valid Percent Cumulative
Percent

Valid Disagree 18 34.6 34.6 34.6

Agree 26 50.0 50.0 84.6

strongly agree 8 15.4 15.4 100.0

Total 52 100.0 100.0

Table 4.4.4 shows the characteristics of the respondents by Competition or free market
contributes youth entrepreneurs to participate private business sector.The respondents
having strongly agreed were 8 and their percentage of (15.4%). The respondents having
agreed were 26 and their percentage of (50.0%)The respondents having disagreed were
18 and their percentage of (34.6%)..Most of the respondents were having agreed.

Table 4.4.4: Competition or free market contributes youth

entrepreneurs to participate private business sector.
 48

Table 4.4.5 Advance technologyalsocontributesyouthentrepreneur’sparticipationin

private business.

Frequency Percent Valid Percent Cumulative

Percent

Valid Disagree 14 26.9 26.9 26.9

Agree 33 63.5 63.5 90.4

strongly agree 5 9.6 9.6 100.0

Total 52 100.0 100.0

Table 4.4.5 shows the characteristics of the respondents by Advance technology also
contributes youth entrepreneur’s participation in private business. The respondents
having strongly agreed were 5 and their percentage of (9.6%). The respondents having
agreed were 33 and their percentage of (63.5%). The respondents having disagreed were
14 and their percentage of 26.9 Most of the respondents were having agreed.
Table 4.4.5 Advance technology also contributes youth entrepreneur’s
participation in private business
 49

4.3 Discussion of the findings

4.3.1 Characteristics of the research respondents

This section percent the background information of the respondent who participate the
collection of primary date of study the finding of the study show above in table and chart
that 67.3 percent of the respondent were male, while 327 percent were female .also the
researcher show that 63.5 percent of the respondent were between 18-30 year old whereas
13.5 percent were 23.1 percent respondent 41-50 year old

4.3.2 To determine the level of youth entrepreneur in banadir region

The first objective of the study was to determine the level of youth entrepreneur in bnadir
region . The results found from the analysis of the respondents answers indicate that 85%
are agree on the level of youth entrepreneur in banadir region and 15% has disagree.
Means the level of youth

Entrepreneur in banadir region is enough

4.3.3 to assess the level of private scoter performance in bandir region

The second objectives of the research was understanding the level of private scoter
performance in bandir region . The results found from analysis of the respondent to shows
that 87 % of the respondents were strongly agree of the level, to assess the level of private
scoter performance in bandir region and 23 % are disagree.

4.3.4 To determine Relationship between youth entrepreneur and private sector

performance

The third objective of the study was examined the relationship between level youth
entrepreneur and private sector performance. The researcher found has direct relationship
between levels of youth entrepreneur and private sector performance
 50

CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

5.1 Conclusion.
This chapter focuses on the results of the study and methods followed to accomplish it. It
also provides the researcher’s recommendations for the issues researched and analyzed.

The study examined the role of youth entrepreneur in private sector performance in
banadir region the empirical finding of the study observed the youth entrepreneur has
positive impact on private sector performance The researchers selected 52 respondents
from the target population of the research as a sample. Questionnaire used for data
collection as research instrument. The research was conducted in Mogadishu from
February-June 2020 in Mogadishu Somalia, furthermore that data was analyzed by using
statistical package for social science (SPSS version 20)

. The task force must be developing the objectives of a national policy in concern with
extensive public involvement. This policy should promote the concept private sector ,

The objectives of this research were:

5 To determine the level of youth entrepreneur in nanadir region
6 to assess the level of private scoter performance in bandir region
7 To determine the relationship between youth entrepreneur and private sector
performance in banadir region

The result of the study indicated that there has positive relationship with two variable.
The first objective of the study was to determine the level of youth entrepreneur in banadir
region
On the other hand, 87% of the respondents agreed, while 13% of them disagreed
The second objective of the research was to assist the level of private sector in banadir
region The result founded from the analysis of the respondents’ answers indicates that
 51

the 85% of the respondents agreed. On the other hand, 15% of the respondents were
Disagree.
The third objective of the study was to determine the relationship between youth
entrepreneur and private sector performance This result indicates that 80% of the
respondents agreed. And the respondent of the selected areas responses, while 20%
disagreed, The three objectives of the whole study shows that the 85% agreed and 15%
disagreed
5.3 Recommendations

1. the government set policy support youth entrepreneur in banadir region

2. largest cooperation in country they help how to motivation youth innovation and
entrepreneur

3. government stimulate policy enhanced to rise private sector and set All legal
requirement that promote effective private sector

4. minister of of education set policy to increase the quality of education inoder to rise
innovation and entrepreneur of Somali youth

5. society give support and motivation youth entrepreneur

6. government set policy to contribute to attract foreign direct investment in Oder to

increase private sector performance

7. All educational institution should provide bonds, remunerations, rewards for their
employee in order to rise skill and productivity youth student
 52

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APPENDIXS

1. Gender of the respondents:

a) Male b) Female

2.Age of respondents:

a) 18-30 b) 31-40 C) 41-50 d) 51 and above

3. Highest level of formal education:

a) Secondary b) Diploma c) Bachelor d) Master and above

4. Marital status: a) Single b) Married

SECTION TWO: PLEASE TICK THE APPROPRAITE ANSWER

Indicate your level of agreement to the following statements concerning role of
Youth in political participation. Use a scale of 1-4 where:

55
 56

1) Strongly agree 2) Agree 3) Disagree 4) Strongly disagree

No: Research Objectives One S.a A D S.D

4. To determine the level of youth entrepreneurs in Benadir region
.

1. youth have great role of participation entrepreneurs in bandir region

2. Youth don’t participant in Somalia entrepreneurs in Benadir because they
haven’t any fund.

3. Youth contribute growing small entrepreneur and large in bandir

region e

4. Somali government encourages youth to participate small

entrepreneur in banadir region

5. Youth faced challenges for the participating of entepernure due to

lack of copy rights , intellectual rights, free ad fair competition.

S.a A D S.D

Research Objectives Two

The role of private sector in Benadir region
6. The private sector contribute growing economic
7. Pattern ship sector contribute to create employment in banadir region
8. Somalia private sector face a lote of challenges due lack of
investment

9. The government doesn’t encourages growing private sector

10. Cooperation sector is largest private sector contribute job creation .

S.a A D S.D

56
 57

Research Objectives Three

1. To determine relationship between youth entrepreneurs and private sector
performance in Benadir region.

11. There is relationship between youth entrepreneurs and private sectors

performance in Benadir region
12. Youth entrepreneur contribute growing private sector in banadir region

13. Support youth entrepreneurs includes giving funds in order to start own
private business sector

14. Competition or free market contribute youth entrepreneurs to

participate private business sector .

15. Advance technology also contributes youth entrepreneur’s participation in

private business.

57
58

58