Determinants of youth self-employment in Bujumbura-Mairie, Burundi

Abstract

In light of the growing global issue of youth unemployment and particularly in Burundi, this research assesses the determinants of youth self-employment in Bujumbura-Mairie. The study aims to explore the influence of demographic, socio-economic, and psychological factors on youth’s pursuit of self-employment. Data were collected from 378 self-employed youth in Bujumbura-Mairie using disproportionate stratified and snowball sampling techniques. The study employed a cross-sectional research design, utilizing both questionnaires and interviews for data collection. Descriptive and inferential analyses were conducted, including Multiple Linear Regression (MLR) and Structural Equation Modelling (SEM), utilizing IBM SPSS 25 and SMART-PLS. Demographic analysis revealed that age (β=0.288, P<0.001), education (β=0.007, P<0.05), and skills (β=0.009, P<0.05) significantly influenced the decision to become self-employed. Socio-economic factors highlighted the importance of access to financial resources (β=0.044, P<0.05) and social networks (β=0.238, P<0.001), with the latter playing a substantial role in influencing self-employment decisions. Psychological factors emphasized the need for achievement (β=0.897, t=59.832, p<0.001) and entrepreneurial intention (β=0.048, t=2.201, p<0.05) as the driving forces behind youth self-employment. In light of these compelling findings, this research conclusively establishes that youth self-employment in Bujumbura-Mairie, Burundi, is significantly influenced by age, education, skills, financial resources, social networks, the need for achievement, and entrepreneurial intention. The study recommends a shift towards practical skill development in entrepreneurial education and mentorship programmes to address the creativity gap among youth. Additionally, it calls for improved access to financial resources through youth-friendly loan access points and advocacy for more inclusive loan policies. The establishment of local business hubs and community-driven initiatives can further support solo entrepreneurs. Collaborative efforts with government agencies to streamline loan processes and integrate financial literacy are essential