PROBLEMS AND PROSPECTS OF URBAN HOUSEHOLD LIVELIHOODS IN YIRGALEM TOWN, SIDAMA REGION ETHIPIA

Abstract This study was conducted to understand the problems and prospects of urban households in Sidama Region Yirgalem town in 2022. The study investigates the livelihood of urban households by explaining the access to assets and identifying the household’s problem and exploring livelihood strategies. This research employed a mixed-methods approach. The study was based on a survey representative of urban households. The total sample size for this study is 394 household heads for quantitative data and 14 selected key informants. Cluster sampling methods in collaboration with the random sampling technique are used to select the respondents. The primary data that will be collected from sample households are analyzed using SPSS and as total number and percentage for categorical variables. The study identified the assets that households possess. 35.9% of households have their own home and have access to electricity and safe drinking water. The households also own household assets like cell phones 87.5%, chairs and tables 70.4%, and television 63.0%. The households have access to credit, 76.4% are a member of Idir and have strong social ties. The major household livelihood problems identified in the study area are deprivation of education, low income of the households, low saving capacity, low credit facilities, electric and water services interruption, the lack of private houses, and the lack of quality Socioeconomic and administrative services. The research enabled us to identify the strategies that households in the study town use to cope with livelihood problems. They used, to borrow money from relatives or friends, sell their household assets, get the support of their relatives by using social networks, engage in petty trade, drop out their children from school, and be supported by farming in rural areas. The study recommends improving the minimum wage nationally, the government facilitating access to housing for low-income households; the government should emphasize improving the service given by government schools and health centers, and also strong social ties.