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Micro and Small Enterprises (MSEs) occupy a prominent position in the development agenda of many developing countries like Ethiopia. MSEs are long recognized as important vehicles of economic diversification, employment creation, income generation and distribution, and poverty alleviation. Especially they brought marginalized groups (women and youth) in to development portfolio. The number of MSEs in Ethiopia is steadily growing but much more important than their number is their current status, stage and pace of development. Thus, the study aimed at assessing the role of MSEs inin linking youth and women in to business: which was addressed through examining the perception and participation of youth and women in the business. And the investigations also focused on assessment of the current trends, challenges and prospects of the sector and finally provide recommendations for policy implications of the businesses. To meet the objectives of the study, primary data were collected using questionnaire and focus group discussion with 384 respondents that were selected randomly from each stratum (woreda) enterprises of South Gondar Zone, Ethiopia. The study has covered almost all types of sectors that are identified by the zonal office. Following collection of necessary data, it were analyzed using descriptive and inferential statistical methods such as percentages, means, frequencies, ranges, standard deviations, Pearson’s correlation and binary logistic regression model. The descriptive parts were also tested using Chi square and t-tests to check whether there is a significant relation between outcome and explanatory variables.

The Role of Micro and Small Business Enterprises in Linking Youth and Women in to Business: A Case Study in South Gondar Zone, Ethiopia