COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

RESEARCH PROPOSAL ON

FACTORS AFFECTING TAXATION OF ELECTRONIC COMMERCE

EFFECTIVENESS IN ETHIOPIA

BY: MOHAMMED SEID

ID NO. GSR/2380/15

SUBMITTED TO: TEKALIGN (PhD)

JANUARY, 2023

ADDIS ABABA, ETHOPIA

Contents
LIST OF TABLES...............................................................................................................III
LIST OF FIGURES.............................................................................................................IV
LIST OF ACRONYMS........................................................................................................V
1. INTRODUCTION............................................................................................................1
1.1 Background of the Study.............................................................................................1
1.2 Statement of the problem............................................................................................2
1.3 Objective.....................................................................................................................4
1.3.1 General Objective.................................................................................................4
1.3.2 Specific Objectives...............................................................................................4
1.4 Hypothesis..................................................................................................................4
1.5 Significance of the study.............................................................................................5
1.6 Scope of the Study......................................................................................................5
1.7 Limitation of the Study...............................................................................................5
1.8 Definitions of Key Terms............................................................................................5
2. REVIEW OF LITERATURE............................................................................................6
2.1 The Concept of Technical and Vocational Education and Training............................6
2.2 The History of TVET in Ethiopia................................................................................7
2.2.1 TVET in Ethiopia.................................................................................................7
2.2.1.1 TVET System in Ethiopia: Statistics.............................................................7
2.2.2 National Exam Determining Access to the TVET Track......................................9
2.2.3. TVET Fields of Study.......................................................................................10
2.2.4 Adequacy of Teaching and Learning Resources on Student Enrollments at TVET
Institutions..................................................................................................................11
2.2.5 Effect of Learners Attitude on Students` Enrollment at TVET institutions........11
2.3 Conceptual framework..............................................................................................12
3. RESEARCH METHODS AND PROCEDURES............................................................14
3.1 Description of the Study Area.............................................................................14
3.2 Research Design and Approach.................................................................................14
3.3. Methods of Data Collection.....................................................................................14
3.4 Target Population......................................................................................................14
3.5 Sampling Techniques................................................................................................15
3.6 Sample size Determination........................................................................................15
3.6 Summary of data sources..........................................................................................17

I
 3.7 Data Analysis Technique..........................................................................................17
WORK PLAN AND BUDGET..........................................................................................18
Work plan.......................................................................................................................18
Budget.............................................................................................................................18
References...........................................................................................................................19

II
 LIST OF TABLES
Table 1-1 student enrollment in GIC.....................................................................................3

Table 2. 1 TVET Enrolments by Gender, 2004 – 2009........................................................8

Table 3. 1 Total Respondents..............................................................................................15

Table 3. 2:- the breakdown of population range the small, medium & large sample size....16
Table 3. 3 Number of Samples from each Sector...............................................................16
Table 3. 4 Number of respondents.....................................................................................17

III
 LIST OF FIGURES

Fig 2.1. Conceptual framework..........................................................................................12

LIST OF ACRONYMS
Acronym Description

IV
EC Ethiopian Calendar

GIC Gofa Industrial College

NEAEA National Education Assessment and Examination

NPHE National Plan for Higher Education

SPSS Statistical Package for Social Science

TVET Technical Vocational Education and Training

V
 1. INTRODUCTION
1.1 Background of the Study
According to American statesman Franklin (1706-1790), nothing in the world is certain
except death and taxes. Tax is an obligatory contribution to state revenue that the government
imposes on business earnings and worker income, as well as on some goods, services, and
transactions (Kamande, 2017).

The rise of e-commerce has altered how people conduct business. The transition from a
physically-oriented business environment to a knowledge-based electronic one raises serious
and significant issues related to taxation and taxation regimes (Basu, 2003). E-taxation refers
to the use of technology or an electronic device to calculate taxes, pay taxes, and keep track
of tax payer databases, among other things, in an effort to improve an efficient tax system. E-
taxation is widespread at the moment and has been successful in certain developed nations,
such as the USA, Japan, Australia, etc. (Chaturvedi, 2009) as cited by (Liganya, 2020). It can
also be described as the process of exchanging goods, services, and information over a
computer network, such as the internet, for purchase and sale (Ashokkumar, 2018). B2B
(Business-to-Business), B2C (Business-to-Consumer), B2G (Business-to-Government), and
occasionally G2C are included in the market category of e-commerce (Government to
citizen) (Basu, 2003).

the existing tax regimes are mainly territorial and electronic commerce (e-commerce) is not,
cross-border e-commerce is operating in a tax and tariff free environment, which in turn
results in potential loss of tax and tariff revenues (UNCTAD, 2000). E-commerce also poses
a problem for the traditional Source and Residence criteria for establishing income tax
jurisdiction as well as the Origin and Destination rules for identifying consumption tax
jurisdiction because the rules are very territorial and e-commerce is not. as cited by
(Abdulkarim, 2022).

Kenya was the first East African country to introduce e-commerce taxation in 2013. This was
done by making amendments to Kenya’s Value Added Tax (VAT) Act and the law became
effective September 2013. One of the striking features of the e-commerce tax was the
provision that “any supply of e-services, broadcasting and telecommunication services made
by a foreign supplier to a non-VAT-registered customer in Kenya is deemed as taking place
in Kenya and is thus subject to the local VAT” (Liganya, 2020).

1
Ethiopia has a huge online viewership. The nation's internet users and mobile connections are
both expanding quickly. In January 2020, there were 46.75 million mobile connections, or
41% of the world's population. By then, there were 21.14 million internet users with internet
penetration of 19 per cent in the country (Wakgari, 2022). The country's potential for e-
commerce is confirmed by this. Ethiopia`s Proclamation No.1205/2020 stated that it is
necessary to provide equal treatment to users of paper and computer-based information;
thereby creating a more secure legal environment, which enables and facilitates the use of
electronic transactions by citizens and private entities, and public bodies (FDRE, 2020).

A comprehensive examination of the nation's taxation will necessary to effectively regulate

the difficulties that will arise with the growth of e-commerce.

2
Traditional attitudes of the people influence enrollments in TVET institutions globally, TVET
courses are perceived to be for individuals with low qualifications. This poor image
contributes to low interest hence low enrollments.

TVET colleges enroll low number of trainees every year due to many factors. Therefore, the
study was aimed to assess enrollment rate effectiveness in Gofa Industrial College in Nefas
Silk Lafto Sub-City.

1.2 Statement of the problem

Electronic commerce has the potential to be one of the great economic developments of the
21stCentury. Enables consumers to buy more quickly, without having to cross borders, and
without having to make any physical movements. Additionally, it enables selling more
quickly, reaching a large audience, and paying lower administrative expenses (Yared, 2020).
E-commerce also challenges the conventional Source and Residence rules of determining
income tax jurisdiction and also Origin and Destination rules of determining consumption tax
jurisdiction as the rules are strongly territorial and e-commerce is not (Pinto, 2002).

Different opinions
have been expressed regarding whether or not ecommerce should be taxed.
Primary argumentmade against ecommerce taxation is that it will hinder the industry's expans
ion. This viewpoint claims that taxing online transactions would inhibit innovation. However,
there have been arguments made in favor of taxing e - commerce similarly to other
companies. First of all, since e-commerce has taken over today's world and is used for many
transactions, taxing it would result in a revenue shortfall for the government. In order to
enhance government revenue and promote economic growth, it should be governed by the
law and taxed.

3
As cited (Mpho, Wilson, & A, 2018) South African higher education institutions face serious
challenges particularly challenges such as low enrolment levels and high drop-out rates.
According to the National Plan for Higher Education (NPHE) compiled by the Department of
Education in 2001, the country’s graduation rate of approximately 15% is one of the lowest in
the world. This is of particular concern, given the huge number of first-year students enrolled
at higher education institutions. The drop-out rate may also lead to a critical shortage of high-
level skills in the labour market. In combination, these factors are likely to act as a major
impediment to the government’s economic development goals.
Results revealed that TVET has been shaped by different political ideologies and has lacked
consistent policy direction. Frequent change in curriculum and program delivery (PTPN,
2011).
As cited (Israel, 2018) the attitudes of parents, students and teachers to TVET are not
favorable. Parents stated that they wanted their children to join university education not
TVET. Parents considered University Education a better alternative for a better future. High
school teachers mostly advise them to go to a university. TVET administers & program
coordinators were also preferred to send their children to universities. The perceptions of
teachers and students regarding TVET have serious implication for enrollment rate.
In recent years, there has been considerable expansion in TVET institutions in Ethiopia, both
in public and private institutions. In 2007, Ethiopia was the second in Africa in terms of
number of training institutions. But the expected numbers of trainees’ enrollment were under
expected and the number of trainers and TVET colleges were high in number.
The national exam determining access to the TVET track, in Ethiopia, students’ starts in
grade 12 take a centrally organized examination, conducted by the national education
assessment and examination agency (NEAEA). The students that pass the exam can join
universities while the remainders are expected to pursue TVET or join the labour force.
Grade 10 National Education Assessment and Examination stopped last year and the
examination takes place only after completion of grade 12 which reduces the enrollment rate.
Students’ attitude & interest towards the training program will have impacts on acquiring the
necessary skill & knowledge. To increase number of trainees’ enrollment, the training needs
to match to the students’ characteristics, including their attitudes, interest and motivation. In
addition to this, attitudes towards fields of study are influenced by many factors. Some of
4
those factors could be attributed to employment opportunity, job prestige, achievement
educational level, gender & the like have great impact on trainees perception on the field of
the study as future preference of profession (Morrow, 1995).
Table 1-1 student enrollment in GIC

Year(E.C) 2010 2011 2012 2013 2014

GIC enrollment 220 444 387 57 82
Source; GIC registrar office

The average rate of enrollment per year is low therefore, measurement should have taken to
increase enrollment rate of trainees.

The rate of enrollment rate in TVET is going to below day by day which results in decreasing
in well trained work force (ICBM, 2015). The number of idle departments and trainers
increase year to year because of low enrollment of trainees in GIC, therefore this proposal
aims to fill this gap by investigating institutional factors that influence student enrollments in
TVET Colleges, Gofa Industrial College, Nefas Silk Lafto Sub-City.

1.3 Objective

1.3.1 General Objective

The major objective of this study is to investigate enrollment rate effectiveness in TVET
Colleges, Gofa Industrial College, Nifas Silk Lafto Sub-City.

1.3.2 Specific Objectives

a) To determine the effectiveness of Ethiopia's current taxation policies in relation to e-

commerce
b) To investigate the current practice of e-commerce taxation effectiveness in Ethiopia.
c) To measure specific challenges related to the taxation of e-commerce effectiveness in
Ethiopia
d) To examine the effectiveness of the Ethiopian legal framework and regulatory
framework on the taxation of income from electronic commerce
e) To determine the potential implications for businesses operating in Ethiopia.

5
1.4 Hypothesis of the Study

Based on the specific objectives stated above, the empirical evidences and theories related
with topic under the study, the following research hypotheses are developed:

H0-: Ethiopia's current taxation policies in relation to e-commerce effectiveness have no

statistically significant and positive effect.

H1-: Ethiopia's current taxation policies in relation to e-commerce effectiveness have a

statistically significant and positive effect.

H0-: the current practice of e-commerce taxation effectiveness.

H0-4: attitude of the students` & parents` has no significant effect on enrollment at GIC.

H0-5: the national exam takes place after completion of grade 12 only has no significance
effect on enrollment rate at GIC.

1.5 Significance of the study

 The finding of this study will help to improve demand for TVET Colleges.
 The study will help the policy makers in formulation of education policies as it will
reveal institutional factors that that influence the enrollment rate of students at the
TVET Colleges.
 To contribute to the existing knowledge the factors that increase student enrollments
in TVET Colleges and also prepare the base for further investigations in to reasons for
low enrollments in TVET Colleges.

1.6 Scope of the Study

The study will be delimited to Nifas Silk Lafto Sub-City, GIC. The research will focus on the
lecturers, registrars and students` due to the institutional factors affecting students`
enrollment in the GIC. The study will be limited to Gofa Industrial College trainers, trainees
and registrar officers.

1.7 Limitation of the Study

Due to time and budget constraints all TVET Colleges and high schools are not included
under the study.

6
1.8 Definitions of Key Terms
Attitude refers to the general perception of people towards an area or something.

Enrollment refers to the total number of population officially joining a course school or
Technical institutions.

Field of study refers to a general career area, in which there may be several specific
Programs of Study, and different Levels of Education.

Infrastructure refers to TVET Colleges training rooms, public amenities, libraries,

laboratories, access to transport, and quality of trainers or staff… etc. a positive learning
environment.

2. REVIEW OF LITERATURE

2.1 The Concept of Technical and Vocational Education and Training

TVET is referred to as involving post-secondary and non-degree technical vocational
education and training. TVET provides education and training to prepare students and other
clients for employment. It also provides specific skills training for those who are already in
the labour market and need to upgrade or develop new competencies to enhance chances for
employment and/or improve productivity. Potential beneficiaries of TVET primarily include
secondary school graduates or drop-outs as well as college undergraduates and graduates.
Unemployed persons who are actively looking for work and former overseas workers also
tend to turn to TVET for either additional skills or a change in career paths (UNESCO-
UNEVOC, 2010).

The main purpose of technical and vocational education and training in sub-Saharan Africa is
focus on acquiring of skills that are helpful for the world of work. Because job-related skills,
are plays a decisive role to make youth people and adults benefit from employment
opportunities that offer a decent income. In sub-Saharan Africa out of 200 million, it is
estimated that 95 million young men and women are illiterate and are either unemployed or
engaged in precarious jobs as street vendors and poorly paid workers in irregular and
seasonal employment ( (Garcia & Fares, 2008).

As cited (Israel, 2018) (MOE, 2010) states that, the main objective of TVET sub-sector in
Ethiopia is to train middle level human power and transfer demanded technologies, and by
doing so, to contribute to poverty reduction and sustainable development. In this aspect,

7
ESDP I, II, and III showed significant achievement with regard to increasing trained middle
level human power. Under ESDP III, the new TVET strategy has developed in order to avoid
challenges that exist before and national TVET strategy mainly developed in Ethiopia “to
create competent and self-reliant citizens and transfer of demanded technologies to contribute
to the economic and social development of the country, thus improving the livelihoods of all
Ethiopians and sustainably reducing poverty”. In addition, under ESDP IV TVET shift from a
system based on input to outcome, providing policy direction were the TVET focus direction,
the nationwide education conferences and the reports on capacity building and manufacturing
extension.

Presently technical and vocational education is considered as a best alternative with regard to
reduction of dire poverty, creating new employment opportunities and income-generating
activities and it can contribute for the development of economy in several ways. It gives
wider opportunity in reversing or overcoming unemployment crisis in a nation across the
world. TVET can play an important role in economic development and poverty reduction if it
is properly implemented or consider education and training provision to local needs (NICHE,
2010).

2.2 The History of TVET in Ethiopia

2.2.1 TVET in Ethiopia

The TVET program in Ethiopia is primarily supply driven. Even though TVET strategy
stresses the importance of ensuring that TVET is flexible enough to accommodate the
demand for, the allocation of students to TVET institutions, as well as the curriculum and the
specialization offered are determined by government. This is in contrast to market-driven
TVET systems, where the demand for particular specialization, as well as the fields of study
is governed by the “invisible hand”. In the literature the appropriateness of the first versus the
second approach has not been consistently settled, and the best approach may indeed depend
on the particular contextual and institutional setting.

2.2.1.1 TVET System in Ethiopia: Statistics

As cited on (Krishnan & Shaorshadze, 2013) in recent years, there has been considerable
expansion in TVET institutions in Ethiopia, both in terms of public spending and increased
provision by private institutions. Number of TVET institutions in Ethiopia is also provided by
non-governmental organizations (NGOs). During the years 2004 – 2009, average annual
increase in enrolment in TVET was 30.5% (MOE, 2008). In the year 2008/09 (2001 E.C),
8
there were total of 458 TVET institutions in Ethiopia. These institutions enrolled total of
308,501 students in regular, evening, summer and distance programs (Table 2.1). In 2007,
Ethiopia was the second in Africa in terms of number of training institution.

Table 2. 3 TVET Enrolments by Gender, 2004 – 2009

Sex 2004-05 2005-06 2006-07 2007-08 2008-09 Average

(1997E.C.) (1998E.C.) (1999E.C.) (2000E.C.) (2001E.C.) Annual
Growth
Rate
Male 51,940 61,415 107,327 119,123 165,910 33.70%
Female 54,396 62,142 83,824 110,129 142,591 27.20%
Total 106,336 123,557 191,151 229,252 308,501 30.50%
% Male 48.8 49.7 56.1 52 53.8
% 51.2 50.3 43.9 48 46.2
Female
Source: Education Statistics Annual Abstract 2010/11, (MOE, 2010)

As cited in (Kiya, 2022) Building a strong labor force without vibrant technical and
vocational education and training (TVET) is nothing but impossible. Accepting its
importance for the enhancement of the economy, the government has drafted a strategy a
decade ago by introducing an outcome-based TVET system, though it is largely supply
driven. However, attitudinal problems have discouraged many students from joining TVETs,
while graduates of which are unable to match their skills with the demands of the economy.

Undoubtedly, skills and knowledge are a requisite for social inclusion and job creation; and
thereby lead to sustainable economic growth. And, they are more important to developing
countries where poverty and unemployment are very high. Doing so is only possible through
education. In particular, this cannot be achieved without having a drive to develop strong

9
technical and vocational education and training (TVET) systems. But only few understand
this in Ethiopia.

As of the last fiscal year, TVET enrollment stood at 386,811. All modes of formal, non-
formal, and informal trainings are offered by TVETs, and are accessible to large portions of
society at any reading and education level, including farmers and entrepreneurs, among
others.

In particular, formal programs are packaged for students who failed to reach university, while
informal ones are not regulated and function largely through home-based activities. All
TVETs are allowed to design their own training material on the basis of occupational
standards monitored by regional and zonal government agencies, and model materials
developed by the Federal TVET Agency.

“The prevailing negative perception of society about TVETs pushes youths away from
TVETs and has affected the performance of colleges,” Dawit says. Likewise, Tekie Alemu
(PhD.), an Economist with over three decades of experience, agrees. “If everyone joins
university, they would all be philosophers as the teaching method is more theoretical. The
country cannot afford to do this, hence developing TVETs and creating awareness about their
benefits from the lower levels is very important,” he said.

Different researches indicate that parents, high school teachers, and peers can influence a
student’s decision in joining TVETs. In light of this, there has been a wide perception that
TVETs as only being pertinent for low academic achievers in Ethiopia. “There is a tendency
to perceive office jobs as better than joining the workforce as TVET graduate. This has
adversely affected entrepreneurship,” said Yikunoamlak Alemu, Assistant Professor at Addis
Ababa University (AAU) (Kiya, 2022).

It is therefore, important to understand the historical trends of enrollments in TVET

institutions in order to put necessary measures to control the decline by assessing the factors
that influence students` enrollment at the TVET institutions.

2.2.2 National Exam Determining Access to the TVET Track

As cited (Krishnan & Shaorshadze, 2013) in Ethiopia, students in grades 10 and 12 take a
centrally-organized examination, conducted by the National Education Assessment and
Examination Agency (NEAEA). Failure rates in these tests are very high. One third of all
students and half of all the girls fail the exam (Joshi & Verspoor, 2013). The students that

10
pass the exam in grade 10 can continue to preparatory school (grades 11 and 12), while the
remainder are expected to pursue TVET or join the labour force. There is another stream of
individuals that can go to TVET – those who could not get sufficiently high scores to go to
university during the national exam at the end of grade 12. In addition, students can go to
TVET from the universities, in which case they can go to level 5. The use of the cut-off
scores that allow students to go to vocational training or not, open the possibility of impact
evaluation through a regression discontinuity design. There are two cut-off scores that are
relevant for this purpose – the score that separates the students who have to drop out from
formal education completely and those that can continue to technical education, and also the
cut-off score that separates those who can continue their studies to the upper secondary
versus those who have to continue to TVET. Grade 10 national examinations is scraped from
the education system, according to the ministry of education starting from 2012 E.C which
decreases the number of students enrollment in TVET colleges.

2.2.3. TVET Fields of Study

As cited (Krishnan & Shaorshadze, 2013) students who cannot continue to higher education,
but are eligible to go to TVET, submit the preferences on colleges as well as specialties.
However, the actual matching is done through the matching system at the regional level, and
it allocates the applicants to colleges and specialties. The number of places allocated to the
different specializations is based on what the government predicts the demand by industry to
be, and how many places TVET can accommodate. TVET strategy aims to develop TVET
Management system that would help guide such an allocation. Meanwhile, the TVET system
depends on the labour market analysis and forecast that is done within the Ministry of Labour
and Social Affairs, National Statistical Agency and Regional Medium and Small Enterprise
Development Agency. The labour market assessment performed by these agencies is not
duplicated. Rather, it is analysed within the TVET system to extract relevant information
(MOE, 2008).

From qualitative interviews with TVET graduates, it may be the case that an applicant
preferred to go to college A and study construction, but he is instead allocated to college B to
study sewing. Since the allocation of students to specialization is not entirely market driven,
it is likely to be the case that the returns to the TVET education are heterogeneous, and is the
function of the number of students allocated to the particular field of specialization, as well as
the market demand of students of that particular specialization. Incidentally, a similar match

11
takes place in higher education, and it is accompanied by a secondary market, where students
matched to majors and universities attempt to trade their spots.

Such an allocation scheme is a consequence of the fact that TVET in Ethiopia is command
driven. Three main arguments can be raised in the defense of such a centrally-driven
allocation scheme. (1) Such schemes go some way to minimize the opportunities for graft
that could have been available if the system was decentralized. (2) Furthermore, the existence
of such a scheme may be based on the notion that the government is better able to solve
asymmetric information problems2 than the students. (3) Finally, the centrally coordinated
scheme might aim to strategically allocate students to the specializations, because the
government believes that by doing this they may develop key industries. In reality, it is not
clear if any of the above three main arguments in terms of market failure justify such
government intervention in as much as this intervention is likely to be inefficient. This
particularity about the matching system, combined with the possibility of the trades in the
spots on the secondary market has to be taken into the account when designing a proper
evaluation strategy for TVET.

In order to increase number of trainees enrollment in TVET, the Germany`s dual system
offers more than three hundred occupation-specific training programs adaptive to the
changing needs of the labour market which are defined by the stakeholders under the Joint
Committee of the federal institute of vocational training (Solga, etal, 2014).

2.2.4 Adequacy of Teaching and Learning Resources on Student Enrollments at TVET

Institutions
Availability of resources, facilities and equipments are fundamental in provision of quality
and relevant education in TVET Colleges. It is through quality training that gets the desire to
join a TVET institution with assurance of coming out successful. A well-equipped TVET
college gives this assurance to students hence increasing the demand that eventually raises
student enrollments ( (Ongulu, 2018).

2.2.5 Effect of Learners Attitude on Students` Enrollment at TVET institutions

As cited (Ongulu, 2018) TVET is seen as a second choice, and generally students who sign
up to vocational schools are those with lower achievements. For instance in South Africa,
Learners avoid vocational education and training in favor of education resulting to low
enrolments in the TVET sector.

12
The differentiation in perception between TVET and that of the academic education has more
reduced the recognition that TVET deserves (Abebe, 2010).

Such attitudes make students to avoid choosing to enroll in TVETs due to the perception of
parents`, teachers and students.

Types of fields offered

 Relevance
 Curriculum content
 Mode of training
 Availability of
departments
 Job availability
Student Enrollment Rate in
Teaching and learning Training TVET Colleges
resources
 Availability Process in
 Adequacy
 Care and maintenance TVET
 Utilization
 Quality
Infrastructure
 Adequacy of libraries
 Availability of workshop
& teachers
 Access to transport
 Qualification of teachers
and staff
Escape of grade 10 exam
 Effect on enrollment
Learners’ attitude
 Low entry marks
 unqualified tutors
 Poor facilities
 Lack of jobs

Fig 3.1. Conceptual framework

2.3 Conceptual framework

In the Figure 2.1 the relationships between independent and dependent variables are
represented. The conceptual model shows interdependence of variables and how they interact
with each other. Enrollment of students as a dependent variable is affected by the
independent variables as follows; When the fields of study being offered are relevant to

13
student, the curriculum content is low, good mode of training with availability of active
departments and can attract ready job market after training, many students are enrolled in the
TVET institutions.

Secondly, availability of teaching and learning resources which are adequate for all trainees
and are of good quality will attract the desire of many students to interact with them and their
care and maintenance during utilization during training process is an indicator to encourage
high enrolments in the technical institutions.
Fourthly, escape of grade 10 exam reduces enrollment rate in GIC, therefore, measurements
are necessary to increase enrollment.
Thirdly, availability of enough teaching staff and infrastructure to handle all the needs of
trainees with diversified skills will attract students without limitation so long as the staff is
qualified and competent in all respective areas of training. This then leads to high enrolments.
Finally, rising of entry marks to TVET institutions creates an attitude that the institutions are
not only meant for failures. This is also shown when the institutions experience high
admissions, high number of applications, high numbers of graduates with good internal
assessment results such indicators will encourage positive attitude of students towards
technical institutions hence increasing enrollments.

14
3. RESEARCH METHODS AND PROCEDURES

Research method includes how to take sample from population, how to determine sample
size, the way data will be collected and analyzed.

3.1 Description of the Study Area

Nifas Silk Lafto Sub-City, Gofa Industrial College catchment area which the study will focus
is in an area of 4,739.03ha and it is sub-divided in to 8 woredas. Trainees were enrolled at
Gofa Industrial College. There are around 7 high schools which feed students for GIC.

3.2 Research Design and Approach

The purpose of this research is to investigate enrollment rate effectiveness in TVET Colleges,
Gofa Industrial College, Nifas Silk Lafto Sub-City. So, a descriptive research design will use
mainly by applying a mixed approach that is both Qualitative and Quantitative methods
concurrently. Finally, inferential statistics were also used to identify the relationship between
factors that affects for effective enrollment rate in TVET Colleges.

3.3. Methods of Data Collection

Both quantitative and qualitative forms of data at the same time will be used during the study
and then integrates the information in the interpretation of the overall results (Creswell,
2009).

The source of data for the study is a primary and secondary data. The primary data will
collects through field survey of GIC trainers, trainees and registrar officer.

The data collection instruments are questionnaire, interview and observation. A questionnaire
was distributed to GIC trainers, trainees and registrar officers.

15
3.4 Target Population
The target population for the study will be the total number of trainers, trainees and registrar
officers in GIC as follows in the table.

Table 3. 4 Total Respondents

No Sector Number of respondents

1. Trainers 238
2. Trainees 415
3. Registrar officers 5
4. Deans & Vice deans 5
5. Total 769
Source: GIC registrar & HRM, 2022

3.5 Sampling Techniques

Both probability and non-probability sampling techniques will be employed. Under
nonprobability sampling, the organizers of inquiry purposively choose the particular unit of
the universe for constituting a sample on the bases that the small mass that they select out of a
huge one can be typical or representative of the whole (Kothari, 2004). So, in Nefas Silk
Lafto Sub-City there are two governmental TVET colleges. Therefore, GIC select
purposively based on certain criteria.
The number of trainees’ enrollment in GIC decreases year to year other than other colleges is
the main criteria to choose purposively.
The researcher will also employed a proportionate stratification that is based on the strata’s
share by considering the total population of trainers, trainees, deans and vice deans and
registrar officers at GIC. The total number of population is 769.

3.6 Sample size Determination

Source of population for the study are all trainers, trainees and registrar officers at GIC.
Population of the study area is 769.

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 Due to time & financial limitations and the nature of the population using the sample
determination method developed by Carvalho (1984) as cited by Zelalem (2005) a sample of
87 respondents is selected from 769 population size.

Table 3. 4:- the breakdown of population range the small, medium & large sample size

Population Sample size

Small Medium Large

51-90 5 13 20
91-150 8 20 32
151-280 13 32 50
281-500 20 50 80
501-1200 32 80 125
1201-3200 50 125 200
3201-10000 80 200 315
10001-35000 125 315 500
35001- 200 500 800
150000
Source: Zelalem, 2015: Issues & challenges of rural water scheme: the case study of Burayu

Then the respondents are stratified and simple random sampling technique was employed to
select the sampled respondents. Under random sampling, the organizers of inquiry
purposively choose the particular unit of the universe for constituting a sample on the bases
that the small mass that they select out of a huge one can be typical or representative of the
whole (Kothari, 2004). Therefore, GIC will be selected purposively by considering; low
enrollment rate in GIC is the main criteria to choose purposively and accordingly which will
be selected for a better representation of the sample. The sample size will be stratified as
follows by sectors and the researcher determined the sample size to 87 respondents to reduce
redundancies and because of time and financial limitation.

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Table 3. 4 Number of Samples from each Sector

Stratum Total Number of Population Number of Sample

Trainers 238 31
Trainees 415 50
Registrar officers 5 1
Deans & Vice deans 5 5
Total 769 87
50 trainees and 31 trainers will be selected by simple random sampling from each department
1 registrar officer & dean & 4 vice deans will be selected purposively. Questionnaires are
prepared and distributed for trainees, trainers & registrar officers. For the interviewee
registrar officer and few trainees and trainers will be purposively selected and interviewed.

3.6 Summary of data sources

Data will be collected from different bodies starting from trainees, trainers and registrar
officers for the study and it summarizes as follows in the table.

Table 3. 4 Number of respondents

Population Number of respondents Method of data collection Remark

Trainers 31 Questionnaire & interview

Trainees 55 Questionnaire & interview
Registrar officers 1 Questionnaire & interview
Grand Total 87
Source: own construction, 2022

3.7 Data Analysis Technique

The data will be analyzed by using both descriptive and inferential statistics analysis
technique. In Descriptive statistics, it analyses by using tables, percentage, graph, charts,
mean and standard deviation. In inferential statistics, a regression analysis will used to
identify significant factors for effective enrollment rate in GIC. The primary data which
collects from trainers, trainees and registrar officers with questionnaires will be interpreted by
using a statistical package for social science (SPSS) version 23 software) and a simple
regression analysis and correlation will be done by the software in respecting to independent
variable (fields of study, availability of teaching and learning resources, availability of

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enough teaching staff and infrastructure, escape of grade 10 exam, and attitude of trainees,
trainers and parents) and the dependent variable of enrollment rate effectiveness in GIC.

WORK PLAN AND BUDGET

Work plan
Serial Activities Months
Number June June July July

1. Problem identification
2. Proposal preparation
3. Questionnaire preparation
4. Data collection
5. Data editing
6. Data analysis
7. Report and present

Budget
Serial Item ETB
Number
1 All required stationary (paper, ink…) 3000
2 Transport 2000
3 Telephone bill, internet, other utility cost and per diem, 8000
4 Data collection costs 6000
5 Total 19,000

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