The Role of Private Sector Cooperatives in Poverty Reduction in Sidama Regional State, Ethiopia

Abstract

In Ethiopia, poverty is a major economic and social problem. Though this private sector plays a vital role in minimize the country's poverty. Cooperatives on a mechanism to link people to work together for common achievements, especially in the rural of the country study focus on Sidama Region. The people were voluntarily to working collaboration to get solutions to social and economic challenges in their community. The objectives of vital role play private sector cooperation in poverty reduction. To realize its objective, descriptive survey methods were employed. Furthermore, the qualitative data collected were analyzed using descriptive narrations through a concurrent triangulation approach. The study found that there is a gap in awareness of the cooperative principles in the study area. Significant impact on participant household those on educational level, types of loan, dividend, and training on cooperatives whereas, occupation of households, monthly saving income level, knowledge on cooperatives and access to market distance harm poverty reduction. Because of such pieces of evidence, further promotion, deepening, strengthening, and supporting of agricultural cooperatives, especially coffee, fruit, and vegetables, and their service are recommended for poverty reduction. Finally, the study has recommended to all concerned government organizations in the study area to improve the level of their support in the area of training, providing awareness on cooperatives, arranging credit facilities as well as following up.