Review of: "Determinants of Women Entrepreneurs’ Business Performance: Evidence from Micro and Small-Scale Enterprises in Arba Minch Town, Southern Ethiopia (original) (raw)

Determinants of Women Entrepreneurs’ Business Performance: Evidence from Micro and Small-Scale Enterprises in Arba Minch Town, Southern Ethiopia

Women’s business performance is influenced by individual, legal, economic, and technological factors. Thus, the purpose of this study was to identify determinants of women’s business performance with reference to MSEs in Arba Minch town. To achieve this objective, the researcher used an explanatory research design with a quantitative research approach, testing six hypotheses. Primary data were collected from 281 women entrepreneurs who were selected using stratified and simple random sampling techniques through structured questionnaires. Both descriptive and inferential statistics were used to analyze the data using SPSS version 21.0. According to the findings of the study, the descriptive results indicate that variables such as access to technology, access to land premises, communication skills, and tax amount have moderate/medium means because the mean score of the variables ranges from 2.60 to 3.39 (average value). In other words, the two remaining variables, access to finance an...

Determinants of Women Entrepreneurs’ Performance in Ethiopia (Evidence from Hawassa City Administration)

European Journal of Business and Management, 2019

This study is conducted to assess the determinants of women entrepreneurs' performance: the case of Hawassa City Administration, Ethiopia. The study employed an explanatory research design with quantitative and qualitative research approaches. The required data were collected from 278 selected women entrepreneurs by adopting a multistage sampling technique. The data collected through questionnaire were analyzed using SPSS software version 21. Inferential statistics such as correlation and multiple linear regression were applied. The data collected through key informant interview was analyzed qualitatively using narration for triangulation. The findings of the study showed that educated women had better entrepreneurship performance since they can easily use technologies and can get management experience easily. In the same way, women entrepreneurs experience to increase their profitability. Likewise, having sufficient start up capital for business, access to credit to expand an existing business, having sufficient working capital, and having had collateral to get credit are significant factors that affect women entrepreneurs' performance. Equally, having high production capacity due to available capital, delivering a product that meets customers need with a fair price, having convenient display room and selling premises, and having good market linkages are significant factors that affect women entrepreneurs' performance. Furthermore, having the desire for achievement, independence, wealth and having self-discovery and job satisfaction are significant determinants of women entrepreneurs' performance. Therefore, the researcher recommends Hawassa city administration in collaboration with other NGO who were working with women should give continuous training to enable them to be more productive. Likewise, the financial institutions in the city should arrange long-term financial credit for women entrepreneurs.

Determinants of Women Business Growth: Evidence from Micro and Small Scale Enterprises in Hawassa City Administration, Sidama Regional State, Ethiopia

Increasing number of women-owned business enterprises has left its mark on the global economy by generating job opportunities, improves women's economic empowerment, gender equality in business, and sustainable economic growth. So studying the topic determinants of women business growth is burning issue that attracted the attention of researcher across the world. To this end, the purpose of this study was to identify factors affecting women operated business growth with reference to MSEs in Hawassa city. In order to achieve this objective, the researchers have used explanatory type research design and quantitative research approach in which six hypotheses have been tested. Primary data has been collected using structured questionnaires. Based on the regressions result, this study revealed that access to finance, access to land, access to technology, communication skill, training and increase in tax amount has statistically significant effect on growth of women operated MSEs in Hawassa city. Also access to land was the best predictor of women business growth and lack of training was the least predictor of women business growth in the study area. Based on the finding of the study, the researchers concluded the growth of women micro and small scale enterprises was significantly influenced individual, organizational and environmental factors incorporated in the model.

Determinants of Ethiopian Rural Women Performance in Entrepreneurial Activity: The Case of Rural Women Entrepreneurs in Tigray

Ethiopian Journal of Gender Research, 2020

The objective of the study was to investigate determinants of Ethiopian rural women's participation in entrepreneurial activity. Two-stage sampling was employed: cluster of Zones according to the number of rural women engagement in the entrepreneurial activities and simple random sampling to select districts. The selected districts were Ofla, Atsbi, and Nebelet from Southern, Easter and Central zones respectively. Ordinary least square regression model was used to explain how variation in the outcome variable depended on the variation in a predictor's variable. Based on the finding, interest-free loans as startup capital used to be acquired from relatives. Women entrepreneurs were thus left to rely on informal sources of finance such as Equb (traditional rotating savings system) and relatives. The study found that educational level and initial capital were important determinants of profit in the rural businesses owned by women. Market distance was also a pivotal determinant factor since those near to markets were better to enjoy higher profit since intermediaries were minimized among others. Those who manage to sell in big city and big market had strong profit margins due to their access to markets. The result also shows that despite limited access and lack of government support, micro finance institutions were essential in the success of entrepreneurial venture for rural women.

Journal of International Women's Studies Women Entrepreneurship in Micro, Small and Medium Enterprises: The Case of Ethiopia

This research article examines factors that influence the long-term survival and viability of a random sample of 500 micro small and medium enterprises (MSMEs) located in five geographical regions of Ethiopia based on a 6-year long follow-up study. The objective of the study is to identify key predictors of long term survival and viability in small businesses and enterprises in Ethiopia, and to find out if small businesses and enterprises operated by male entrepreneurs perform better than those operated by female entrepreneurs in Ethiopia. Data was gathered on key determinants of survival such as access to finance, managerial skills, level of education, level of technical skills, ability to convert profit back into investment, etc between 1996 and 2001. Econometric methods such as Kaplan-Meier survival probability curves and the Cox proportional hazards model were used for data analysis. 221 of the 500 businesses in the study (44%) were operated or owned by women. 110 of the 500 businesses in the study (22%) had failed at the end of the study period. The majority of businesses that failed were operated by women (78%). Female-headed firms that ceased operation had an average lifetime of 3.2 years, while male-headed firms that ceased operation had an average lifetime of 3.9 years. Businesses that failed were characterized by inability in obtaining loans from formal money lending institutions such as commercial banks (61%), inability to convert part of profit back into investment (46%), poor managerial skills (54%), shortage of technical skills (49%), and low level of education (55%). Based on hazard ratios estimated from Cox regression, businesses operated by women were 2.52 times more likely to fail in comparison with businesses operated by men.

Constraints for the Growth of women Entrepreneur s: In the case of Amhara Women Entrepreneurs Association (AWEA), In Amhara Regional State, Ethiopia

2022

This research presented findings about the constraints for the growth of women entrepreneurs in the case of Amhara Women Entrepreneurs Association (AWEA), Amhara Regional State, Ethiopia. Different people have defined the term "Entrepreneur" differently, and no single universally accepted definition has been reached. But for shared understanding, an entrepreneur is a person who sets up businesses, takes on risks in the hope of profit, and organizes a venture to benefit from an opportunity rather than working as an employee. According to different literatures, gender discrimination, lack of enterprise culture, inadequate business support systems, and underdeveloped markets and infrastructure are problems that affect women entrepreneurs in developing nations. For this research, the researcher used multistage sampling methods and took 389 sample sizes. Structured questionnaires, interviews, and Focus Group Discussions (FGD) were instruments for the data collection. The logit model was applied to identify the main constraints for the growth of women entrepreneurs. Employment and capital growth rates were taken as an indicator for the growth of women entrepreneurs. Access to finance, access to raw material/inputs, stiff Competition, educational status, marital status, access to training, access to infrastructures, access to working premises, access to information and modern technology, tax Burden, amount of initial capital, age of respondents, age of the business and family size were the included independent variables for growth constraints of women entrepreneurs. Among the respondents, 35.73% were aged 31 to 40, 51.41% completed grades 11 th and 12 th , 75.84 % were married, 57.58% had a family size of 4 to 6, 31.36% were engaged in mini-market business,65.79% started without making a market survey, 98.46% did not get training before starting the business,77.12% didn't have appropriate working premises. The annual average growth rate of women entrepreneurs' business measured by the growth rate of employees was 0.68%, with the smallest-20% and a maximum of 50%. When measured by the capital growth rate, it was 7.4%, with a minimum growth rate of 5.3% and a maximum of 13.4%. The average initial working capital was 45,685 ETB with a minimum of 2,000 and a maximum of 150,000 ETB. On average, 67% of women's enterprises were in positive progress during the survey period. the Among the included independent variables, except family size, age of respondents and age of the business, all other variables are statistically significant and influence the growth of women entrepreneurs. Since women entrepreneurs significantly contribute to economic growth and employment creation, the government and other stakeholders should support women entrepreneurs by solving constraints for their business growth.

Growth Determinants of Women-Operated Micro and Small Scale Enterprises in Addis Ababa, Ethiopia

2011

The role of Micro and Small Enterprises (MSEs) in employment and income generation is increasingly recognized for the unemployed people especially for women and has become a major playing field for policy makers and donors with dual objective of enhancing growth and alleviating poverty. MSEs are particularly important for women since they offer a more flexible, less restrictive form of employment and can be undertaken by the skill they acquire. This study investigated the constraints and key determinants of growth particularly in employment expansion among women's-enterprise based on the survey-covering 123 business units randomly selected in four Kebele s of Nifas Silk-Lafto and Kirkos sub cities of Addis Ababa. Major finding showed that marketing problems due to presence of competitors with identical products change in demand and absence of market linkages are the basic constraints to the growth of women operated enterprises. Lack of enough working space, raw material accessib...

Assessing the Hindrances and Prospects of Women’s Entrepreneurship Development: The Case of Hosaena Town, Hadya Zone, SNNP, Ethiopia

American Journal of Management Science and Engineering, 2020

Women's entrepreneurship is considered to have a noteworthy part in economic development. The issue of women empowerment has been important for Governments and other non-governmental organizations. Both primary and secondary data was collected. The result of the study indicates that women entrepreneurs are exposed to various obstacles in the area of economy such as: limited access to loan and finance, difficulties in accessing markets, the lack of own land and inheritance, and difficulties in accessing raw materials. The main difficulties identified by women entrepreneurs in the area of legal and administrative functions in the survey are: high interest rates, high taxes, difficulties in getting a loan, insufficient support from Governmental and Financial institutions, and the lack of possibility to influence policy making. In relation to social and cultural factors, results from the survey are ambiguous. The government should create gender-neutral laws and policies to create a stimulating environment for potential women entrepreneurs. Therefore, government should offer different forms of support to women entrepreneurs such as: tax incentives and grants for starting a business. Additional effort should be directed to increase the quality of existing support to entrepreneurship development as well to designing new programs that would better alleviate the obstacles identified in this study.

Growth Determinants of Women-Operated Micro and Small Enterprises in Addis Ababa

2010

The role of Micro and Small Enterprises (MSEs) in employment and income generation is increasingly recognized for the unemployed people, especially for women, and has become a major playing field for policymakers and donors with dual objectives of enhancing growth and alleviating poverty. MSEs are particularly important for women since they offer a more flexible, less restrictive form of employment and can be undertaken by the skill they acquire. This study investigates the constraints and key determinants of growth, particularly in employment expansion, among women’s-enterprise, based on the survey-covering 123 businesses units in four Kebeles of Nifas Silk-Lafto and Kirkos sub cities of Addis Ababa. The finding shows that marketing problems, due to the presence of competitors with identical products, change in demand and absence of market linkages are the basic constraints to the growth of women operated enterprises. Lack of enough working space, raw material accessibility, shorta...

FACTORS INFLUENCING PERFORMANCE OF WOMEN ENTREPRENEURS IN KENYA: A CASE OF BUNGOMA SOUTH

For a country to achieve its development goals, women must be incorporated in the entrepreneurship activities. A lot of literature supports the role of women in economy building. This study sought to determine factors influencing the performance of women entrepreneurs in Bungoma south. The study was guided by the following objectives: To investigate the influence of levels of education on performance of women entrepreneurs; to determine the influence of property ownership on performance of women entrepreneurs; to investigate the influence of competition from well established enterprises on performance of women entrepreneurs and to assess the influence of domestic commitments on the performance of women entrepreneurs. A conceptual framework to show the relationship between the dependent variables and independent variables including all indicators was used in the study. A pilot study was conducted in the Kabula region which was not involved in the final study to avoid contaminating the final actual sample. The target population for this research included all the 12300 women entrepreneurs in Bungoma town, Bukembe, Kibabii and Mayanja, with a sample size of 370 determined from Krejcie and Morgan table and randomly selected. A descriptive Research design was used to allow researcher to gather information, summarize, present and interpret data for the purpose of clarification. Stratified random sampling was used where each location formed strata. Proportional allocation was used to compute the exact number of subjects in each location which was a correct representation from the strata. The received data was classified, summarized, coded, sorted and SPSS and excel softwares used in analysis. From this study, it was observed that although there is the possibility of women entrepreneurs operating business enterprises in the same capacity and magnitude as men, traditional roles and practices such as domestic commitments, low levels of education, lack of property ownership and lack of opportunity driven motive to start enterprises continues to influence the performance of women entrepreneurs negatively in terms of monthly income sales, profit margin and types of business enterprise.