We study how social preferences and norms of reciprocity are related to generalized and particularized trust among members of youth business groups in northern Ethiopia. Members of these groups are recruited among land-poor rural youth. The Ethiopian government promotes youth employment among land-poor rural youth by allocating them rehabilitated communal lands for the formation of sustainable businesses. The groups are organized as primary cooperatives, elect their own board, make their own bylaw and prepare a business plan that has to be accepted by the local government.

The paper discusses the link between commons as they might have been used in
prehistoric Norway and the rules concerning the exploitation of the commons as
found in the oldest known legislation for regions of Norway, Gulating Law and
Frostating Law. One clear social dilemma has been identified: the setting of a
common date for moving animals from the home fields up to the summer farms
and home again in the fall. The problem was obvious and the solution not
particularly difficult to institute. Many more problems were of course present,

The paper assesses risk tolerance, trust and trustworthiness among male and female youth group members in recently formed primary cooperative businesses in Ethiopia. Male members are found to be more risk tolerant, trusting and trustworthy than females. There is a strong positive correlation between individual risk tolerance and trust for male while this correlation is much weaker for female members. Individual risk tolerance is positively correlated with trustworthiness for males but not for females. Females are more trusting and trustworthy in groups with more risk tolerant members.