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FACTORS AFFECTING THE PERFORMANCE OF
WOMEN ENTREPRENEURS IN MICRO
AND SMALL ENTERPRISES

(THE CASE OF DESSIE TOWN)

BY

MULUGETA CHANE WUBE






BAHIR DAR UNIVERSITY

AUGUST, 2010
FACTORS AFFECTING THE PERFORMANCE OF WOMEN
ENTREPRENEURS IN MICRO AND SMALL
ENTERPRISES
(THE CASE OF DESSIE TOWN)




A Thesis Presented in Partial Fulfillment of the Requirements for Degree of Master
of Arts in Technical and Vocational Education Management


By
Mulugeta Chane Wube









BAHIR DAR UNIVERSITY
FACULTY OF EDUCATION AND BEHAVIORAL SCIENCES
DEPARTMENT OF EDUCATIONAL PLANNING AND MANAGEMENT



AUGUST 2010



























BAHIRDAR UNIVERSITY
DEPARTMENT OF EDUCATIONAL PLANNING AND MANAGEMENT



FACTORS AFFECTING THE PERFORMANCE OF WOMEN
ENTREPRENEURS IN MICRO AND SMALL ENTERPREISES IN DESSIE
TOWN

Approval of Board of Examiners

___________________________ _____________ ________________

Chair person, department Date Signature
Graduate committee

___________________________ _____________ ________________
Advisor Date Signature

___________________________ _____________ ________________
Internal examiner Date Signature

___________________________ _____________ ________________
External examiner Date Signature



iv

ACKNOWLEDGMENT

This work comes in to end not only by the effort of the researcher but also the support of
many individuals and organizations. To begin with, I would like to thank Ato Adane
Tesera, my advisor, for his constructive suggestions throughout my work. Had it been
without his support, this work would not have been come in to reality. Secondly, my
heartfelt thanks goes to my wife, Tigist Teka who helped me in writing the whole
document besides her moral and financial support even during her pregnancy. In addition,
Dessie women entrepreneurs in MSEs should be greatly praised for their zealous efforts
in filling questionnaires.

Moreover, my thanks extended to Ato Wondwossen Abi, Dean of W/ro Ssiheen College
of TVET; Ato Tewodros, process owner of Dessie MSEs;and Ato Mohmed, manager of
Dessie micro- finance for devoting their time in providing necessary information for this
research work.

Last but not least, I want to express my great thanks to Ato Tadele Getahun, Ato Seid
Mohammed and W/ro Sosina Tesfaye for providing printing services of different
materials important for the thesis work.









v

TABLE OF CONTENTS
Contents Page
ACKNOWLEDGMENT............................................................................................. iv
TABLE OF CONTENTS ..............................................................................................v
LIST OF TABLES...................................................................................................... vii
ACRONYMS ............................................................................................................. viii
ABSTRACT..................................................................................................................ix
CHAPTER ONE: INTRODUCTION...........................................................................1
1.1 Background of the study....................................................................................1
1.2 Statement of the problem........................................................................................3
1.3 Objective of the study.............................................................................................5
1.4 Significance of the study.........................................................................................5
1.5 Delimitations of the study.......................................................................................5
1.6 Limitations of the study..........................................................................................6
1.7 Definition of terms................................................................................................6
CHAPTER TWO: REVIEW OF RELATED LITERATURE ....................................8
2.1 An overview to entrepreneurship ............................................................................8
2.1.1 Meaning and definitions of entrepreneurship ....................................................9
2.1.2 The benefits of entrepreneurship.....................................................................10
2.1.3 Factors affecting entrepreneurship ................................................................11
2.1.4 Comparing the pros and cons of entrepreneurship...........................................12
2.2 Women entrepreneurship......................................................................................14
2.2.1 Nature of women entrepreneurs ....................................................................14
2.2.2 Differences between women and men entrepreneurs.......................................15
2.2.3 Factors affecting women entrepreneurs’ performance ................................17
2.2.4 Women entrepreneurs in Ethiopia.................................................................20
2.3 Women entrepreneurs in SMEs.............................................................................22
2.3.1 Benefits of women entrepreneurs in MSEs .....................................................22
2.3.2 Factors affecting the performance of women entrepreneurs in MSEs ..............24
vi

2.3.3 Women entrepreneurs in MSEs in Ethiopia.....................................................25
2.3.4 Women entrepreneurs in MSEs in Amhara Region .........................................28
2.2 Women entrepreneurs in MSEs and TVET...........................................................29
CHAPTER THREE: METHODOLOGY...................................................................33
3.1 Design of the study...............................................................................................33
3.2 Population, sample and sampling techniques ........................................................33
3. 3 Data sources, gathering instruments and procedures.............................................34
3.4 Methods of data analysis.......................................................................................35
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF
RESULTS ....................................................................................................................37
4.1 Presentation and analysis ......................................................................................37
4.1.1 Demographic profile of respondents ...............................................................37
4.1.2 Characteristics of women entrepreneurs in MSEs and women owned enterprises
................................................................................................................................39
4.1.3 Factors affecting women entrepreneur’s performance in MSEs.......................45
4.1.4 Comparison of factors that affect women entrepreneur’s performance in MSEs
................................................................................................................................51
4.1.5 Supports given by TVET institutions to women entrepreneurs in MSEs........52
4.1.6 Co operations among MSEs, TVETs and Micro Finances...............................54
4.2 Discussion............................................................................................................56
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS...60
5.1 Summary..............................................................................................................60
5.2 Conclusion ...........................................................................................................62
5.3 Recommendations ................................................................................................63
REFERENCES............................................................................................................66
APPENDICES .............................................................................................................70



vii

LIST OF TABLES

Table 1 Pros and cons of entrepreneurship................................................................13
Table 2: Male vs. female entrepreneurs......................................................................17
Table 3. Summary of women entrepreneurs’ population and sample taken.............34
Table 4. Respondents’ demographic profile ...............................................................38
Table 5. Family sizes of respondents..........................................................................39
Table 6. Sectors respondents engaged in. ...................................................................40
Table 7. Number of employees hired. .........................................................................41
Table 8. Legal ownership of the enterprise.................................................................41
Table 9. Reason to Start own Business .......................................................................42
Table 10. Initiators and starter of the business ..........................................................43
Table11. Family entrepreneurial history and source of skill for starting the
enterprise .....................................................................................................................44
Table12. Source of startup funding.............................................................................45
Table 13. Economic factors that affect the performance of women entrepreneurs in
MSEs ............................................................................................................................46
Table 14. Socio-cultural factors that affect the performance of women
entrepreneurs in MSEs................................................................................................48
Table 15. Legal and administrative factors that affect the performance of women
entrepreneurs in MSEs................................................................................................50
Table 16. Comparison of the major factors affecting women entrepreneurs’
Performance.................................................................................................................51
Table 17. Summary of the Supports Given by TVETs to MSEs................................52





viii

ACRONYMS

ANRS: Amhara National Regional State
APEC: Asian Pacific Economic Cooperation
BDS: Business Development Services
CEFE: Competency Based Economies Through formation of Enterprises
ECSA: Ethiopian Central Statistics Authority
EWEF: Ethiopian Women Exporters Forum
FDREPCC: Federal Democratic Republic of Ethiopia Population Census
Commission Government Organization
GDP: Gross Domestic Production
GNP: Gross National Production
GTZ: German Technical Cooperation
ILO: International Labor Organization
MSE: Micro and Small Enterprises
NGO: Non Government Enterprises
OECD: Organization of Economic Corporation and Development
SDCs: Skill Development Centers
SMIDEC: Small and Medium Industries Development Corporation
TVET: Technical and Vocational Education and Training
UNECE: United Nations Economic Commission for Europe
UNISCO: United Nations Education, Scientific and Cultural Organization
UNIDO: United Nations Industrial Development Organization
WEA: Women Entrepreneurs Association







ix

ABSTRACT

This study was designed to assess the factors that affect the performance of women
entrepreneurs in MSEs .It also addressed the characteristics of women entrepreneurs in
MSEs and their enterprises and the supports they acquire from TVET colleges/institutes.
A sample of 203 women entrepreneurs engaged in 5 sectors was taken for the study using
stratified and simple random sampling. In the process of answering the basic questions, a
questionnaire that include demographic profiles, characteristics of women entrepreneurs
and their enterprises, factors that affect the performance of women entrepreneurs in
MSEs and supports MSEs acquire from TVETs was designed in a closed ended and likert
scales. Moreover, interviews were held with top officials of MSEs, micro finances and
TVET educators. After the data has been collected, it was analyzed using simple
statistical techniques (tables and percentages) and descriptive statistics (mean and
standard deviations).The results of the study indicates the personal characteristics of
women entrepreneurs in MSEs and their enterprise affect their performance .It also
shows that lack of own premises(land),financial access, stiff competition, inadequate
access to training, access to technology and access to raw materials were the key
economic factors that affect the performance of women entrepreneurs in MSEs. The study
also found that conflicting gender roles, social acceptability and ,network with outsiders
were the major social factors that affect these entrepreneurs .Furthermore, the main
legal/ administrative factors include access to policy makers, high amount of tax and
interest, bureaucracies and red tapes, and over all legal and regulatory environments.
The study also found that even though TVETs provide technology, machine maintenance,
technical skill training and facility supports, co operations in the areas of business
related trainings are poor. Based on the major findings, recommendations were
forwarded to existing and potential entrepreneurs, MSEs, Micro finances and TVET
educators.



1

CHAPTER ONE
INTRODUCTION
This chapter addresses the introductory part of the research. It basically includes
background of the study, statement of the problem, purpose and significance of the study,
delimitation of the study, limitations of the study, and definition of basic terms.
1.1 Background of the study

Entrepreneurship is increasingly recognized as an important driver of economic growth,
productivity, innovation and employment, and it is widely accepted as a key aspect of
economic dynamism. Transforming ideas into economic opportunities is the decisive
issue of entrepreneurship. History shows that economic progress has been significantly
advanced by pragmatic people who are entrepreneurial and innovative, able to exploit
opportunities and willing to take risks (Hisrich, 2005).
The role of entrepreneurship and an entrepreneurial culture in economic and social
development has often been underestimated. Over the years, however, it has become
increasingly apparent that entrepreneurship indeed contributes to economic development.
Nevertheless, the significant numbers of enterprises were owned by men (ILO, 2006). In
other words, it was not common to see women-owned businesses worldwide especially in
developing countries like Ethiopia. The idea and practice of women entrepreneurship is a
recent phenomenon. Until the 1980’s little was known about women entrepreneurship
both in practice and research, which made its focus entirely on men. Scientific discourse
about women’s entrepreneurship and women owned and run organizations is just the
development of 1980s (ILO, 2006).
Even though we observe a number of women entrepreneurs in the business, recent studies
show that most of them are found in Micro and Small Enterprises(MSEs). According to
the Ethiopian Central Statistics Authority (2004), almost 50% of all new jobs created in
Ethiopia are attributable to small businesses and enterprises, and roughly 49% of new
businesses that were operational between 1991 and 2003 were owned by women.
2

According to Aregash as cited in Eshetu and Zeleke (2008), 98% of business firms in
Ethiopia are micro and small enterprises.

The 3
rd
census of Ethiopia shows that of the total population of the country (73,918,505),
36,621,848 are females (ECSA, 2007). This accounts 49.5% of the population. This
shows that Ethiopia is among those African countries that are known by human resource
potential. Regardless of its potential, it does not utilize this labor force. This
underutilization of the untapped potential is attributed to a lot of reasons. Of these
reasons, inability to effectively use entrepreneurship in poverty reduction in general and
alleviating the problems among women who are susceptible for poverty in particular; in
bringing meaningful economic and social transaction; in promoting and enhancing gender
equality and women empowerment; and in ensuring women’s social mobility in the
country might require worth mentioning. This is because of a lot of obstacles that women
entrepreneurs in Ethiopia face Amha and Admassie(2008). In support of this they (2008)
outlined that:

More than half of all women entrepreneurs in Ethiopia often face gender related
challenges related to establishing new businesses as well as operating or
expanding existing businesses. Women are disadvantaged due to culture, religion
and tradition. For instance, many women face difficulty in raising credit finance
from banks as well as borrowing via informal networking (p.34)

When we come to Amhara Region, it is one of the regions in which many women are
found. According to the Federal Democratic Republic of Ethiopia’s Population Census
Commission (FDREPCC, 2008) of the 17,214,056 total population of Amhara Region,
8,577,181 are females. More than half of these females (51.15%) are within the age
category of 15-59 years which is considered as a productive age. Though the region is
enriched by this greater and productive number of women, it seems that it does not utilize
them as expected quality as well as quantity wise. One reason might be similar to that of
the country as a whole, which is under utilization of women’s potential. In order to make
the country, the region and women themselves beneficiaries of this great potential,
appropriate measures should be taken to reduce the bottlenecks/challenges that women
entrepreneurs in MSEs encounter.
3

Among the towns in Amhara region, Dessie is one in which a large number of women
Entrepreneurs are found. Information taken from the Dessie MSEs Office shows that
more than 4,500 women entrepreneurs are found in the town. Of these, about 2026 are
working in MSEs. Like the region as a whole, women entrepreneurship problems are
tremendous in the town too.

To take appropriate measures for these problems, knowing the factors associated with the
problems is a precondition for a problem well stated is half solved. Therefore, the aim of
this research is to identify the major factors that affect the performance of women
entrepreneurs in MSEs in Dessie town in running their own businesses and recommend
the appropriate measures to be taken.
1.2 Statement of the problem

As mentioned in the introduction above, there are a large number of women in Amhara
region. But the region does not yet exploit them very well to contribute a lot for
economic development. One of the reasons for this meight be problems of women
entrepreneurs in MSEs. This is supported by different empirical evidences. For example,
Gemechis (2007) and ILO (2009) stressed that entrepreneurs are surrounded by a number
of challenges .This forces entrepreneurs in MSEs not to contribute a lot to the poverty
reduction of the town, region and the country as a whole.

This study is different from those researchers discussed above in that their focus areas
were in all entrepreneurs regardless of their sex. Besides, they did not see the factors with
respect to the different personal, organizational, economic, socio-cultural and
legal/administrative matters. Similarly, their studies did not address women entrepreneurs
in MSEs. But this study specifically emphasis on factors that affect the performance of
women entrepreneurs in MSEs particularly in Dessie town.

Technical and Vocational Education Trainings (TVETs) are targeted to produce
entrepreneurs who are able to create own jobs rather than seeking employment in any
organization. That is why entrepreneurship training is incorporated in TVET Curriculum.
4

Entrepreneurship education is designed in order to support graduates, existing and
potential entrepreneurs to create and run their own business rather than expecting
employment from government, private or NGOs. So as to develop entrepreneurial culture
to all groups of the society, entrepreneurship is given in different countries including
Ethiopia in formal, informal and non-formal way through TVET colleges/institutes.
In addition to their delivery of entrepreneurship trainings in different modalities, TVETs
have MSEs coordination office since 2009. The office facilitates the different short term
trainings given to SMEs from registration up to certification. All these contribute a lot in
strengthening women entrepreneurs’ performance by equipping them with the necessary
business skills.
Even though women entrepreneurs in MSEs account the greatest proportion of total
entrepreneurs in the country as a whole and in Dessie in particular, there is an acute
shortage of studies conducted with a specific objective of analyzing the problems of
enterprises operated by women in terms of personal and organizational-related
challenges, economic, social/cultural, and legal/administrative.
This study is deemed to fill the gaps by identifying specific factors that are responsible
for resilience in SMEs operated by women entrepreneurs, and shade light on women-
specific differentials that affect their performance.

Thus, in this study it is thought to assess the different factors that affect the performance
of women entrepreneurs in MSEs in Dessie town. Furthermore, the supports given by
TVET institutions to MSEs are assessed very well. In light of this, the study attempts to
answer the following basic questions:
1. What are the major characteristics of women entrepreneurs in MSEs and their
enterprises?
2. What are the key economic, social, legal and administrative factors that affect the
performance of women entrepreneurs in MSEs?
3. What supports are given to women entrepreneurs in MSEs by TVET institutes to
solve problems they face?
5

1.3 Objective of the study

Generally, the study is designed to assess the major factors affecting the performance of
women entrepreneurs in MSEs and the challenges they face in starting and running their
own business in Dessie town. Specifically, it is intended to assess:
1. The major characteristics of women entrepreneurs in MSEs and their enterprises.
2. The key factors that affect the performance of women entrepreneurs in MSEs.
3. The supports given to women entrepreneurs in MSEs by TVET institutes in Dessie
town.
1.4 Significance of the study

Women should create their own jobs and become entrepreneurs since opportunities of
getting employment in either government, non government or a private organization is
currently almost declining (Gemechis,2007). This is possible only if the barriers of
women entrepreneurs are solved .Generally, the study has the following significances.
1. It can be one input to existing Women Entrepreneurs, potential entrepreneurs, MSE
heads of the town and the region and TVET educators to alleviate the problems that
women entrepreneurs face.
2. It shows what areas of support should TVET institutes and MSEs have to work
together.
3. Since more is not written in this area, it will also be an add to the existing literature.
1.5 Delimitations of the study

Information taken from Dessie trade and industry office shows that more than 4,500
women entrepreneurs are found in the town. Had the study been conducted in all these (if
possible) or majority of them, it would have been complete. Furthermore, there are
different issues that can be researched in relation to women entrepreneurs. But, this study
is delimited to the key economic, socio-cultural, legal/administrative factors affecting the
performance of women entrepreneurs in MSEs. In addition, the study focuses only on
assessing the major personal and organizational characteristics of women entrepreneurs
in MSEs to check whether these characteristics affect their performance. The study also
6

addresses the training, machine, financial, raw material, technology and facility supports
that TVETs provide to these entrepreneurs so as to minimize the problems the women
entrepreneurs in MSEs face. Moreover, women entrepreneurs in 5 key sectors which are
considered as growth corridors now a-days and only the case of Dessie town women
entrepreneurs are considered given all other constraints
1.6 Limitations of the study

Even though different efforts have been made, the researcher faced some challenges
while doing this study. To begin with, the fact that the majority of the respondents’
educational background is low creates some negligence in filling the questionnaire. Some
do not give values to the questionnaire and some others do not return it totally. Besides
this, some others see the questionnaire politically even though orientations have been
made. Furthermore, since respondents have been in a tight work, some were not as such
willing to fill the questionnaires. Lastly, since the respondents were scattered in different
sites, some difficulties were faced in giving orientations, following up respondents and
collecting responses. Therefore, these conditions meight affect the quality of the paper to
some extents.
1.7 Definition of terms

Characteristics: key personal and organizational features of women entrepreneurs in
MSEs.
Cooperatives: association of at least 10 individuals who are from the same kebele
(Dessie MSEs office).
Factors: personal, organizational, economic, socio-cultural, legal/administrative
influences that affect women entrepreneurs overall activities and operations in MSEs.
Formal TVET: Currently, formal TVET in Ethiopia includes 10+1 to 10+3 programs,
which currently redesigned in to five levels (level I to V) provided by public and
private/government/non government institutions and finally accredited by the regional
Education bureau/TVET agency(Amhara TVET Strategy Draft,2006).
7

Informal TVET: Includes all kinds of training and learning that is not structured and
following a formal curriculum or syllabus. Informal TVET, for example, includes on-the-
job training, self-learning, learning-by doing, etc. (Amhara TVET Strategy Draft, 2006).
Joint ownership: association of two or more individuals who act as a co owner (Hisrich,
2005).
Micro Enterprise means commercial enterprise whose capital is not exceeding birr
20,000 other than technological and consultancy services (Ethiopia Ministry of Trade and
Industry, 2003).
Micro finance: refers to the provision of financial services to low-income clients,
including consumers and the self-employed (Ethiopia Ministry of Trade and Industry,
2003).
Non-formal TVET: includes all structured short- and long-term TVET programmes
(run by different public or private providers, comprising different modes of delivery and
durations of training) that are not registered as formal TVET by the Ministry of
Education, e.g. TVET in Community Skills Training Centers, TVET programmes by
NGOs, employer-based TVET, short-courses in commercial TVET schools, etc. (Amhara
TVET strategy draft, 2006).
Performance: overall activities and operations performed by women entrepreneurs in
MSEs in strengthening their enterprises.
Small Enterprise means a business engaged in commercial activities whose capital is
exceeding birr 20,000 and not exceeding 50,000 birr, other than high technological and
consultancy service institutions ((Ethiopia Minstry of Trade and Industry, 2003).
Supports: training, machinery, financial, raw material and facility assistances that
TVETs provide to MSEs.
Women entrepreneurs: women in MSEs running their own business rather than
employed in any organization.



8

CHAPTER TWO
REVIEW OF RELATED LITERATURE
This chapter revises the different literatures written in the areas of entrepreneurship,
women entrepreneurs; women entrepreneurs in MSEs; the problems of entrepreneurship;
factors affecting the performance of women entrepreneurs in MSEs; and the supports
given by TVET to MSEs.
2.1 An overview to entrepreneurship

As globalization reshapes the international economic landscape and technological change
creates greater uncertainty in the world economy, the dynamism of entrepreneurship is
believed to be able to help to meet the new economic, social and environmental
challenges. Governments increasingly consider entrepreneurship and innovation to be the
cornerstones of a competitive national economy, and in most countries entrepreneurship
policies are in fact closely connected to innovation policies, with which they share many
characteristics and challenges. The dynamic process of new firm creation introduces and
disperses innovative products, processes and organizational structures throughout the
economy. Entrepreneurship objectives and policies nevertheless differ considerably
among countries, owing to different policy needs and diverse perspectives on what is
meant by entrepreneurship. In support of this Schumpeter (2005) stated,

In some countries, entrepreneurship is linked to regional development programs and
the creation of new firms is stimulated to boost employment and output in depressed
regions. In others, entrepreneurship is a key element of strategies designed to
facilitate the participation of certain target groups, such as women or minorities, in
the economy. Some countries simply seek to increase firm creation as such, while
others set out to support high-growth firms. While many countries are making serious
efforts to support entrepreneurship, results appear to vary. Countries want to
understand the determinants of and obstacles to entrepreneurship, and they need to
analyze the effectiveness of different policy approaches (p.13)

The lack of internationally comparable empirical evidence has however constrained our
understanding of entrepreneurship and many questions remain unanswered. Ultimately,
policy making must be guided, as far as possible, by evidence and facts.
9

2.1.1 Meaning and definitions of entrepreneurship
There is no agreement among authors regarding the definitions of Entrepreneurship.
Different authors tried to define it in different manners. This doesn’t mean however that
there are no common elements among authors. Some of the definitions are given below.

According to Ponstadt (1998)
Entrepreneurship is the dynamic process of creating incremental wealth. This
wealth is created by individuals who assume the major risks in terms of
equity, time and/or career commitments of providing values for some product
or service. The product or service may/may not be new or unique but value
must be infused by the entrepreneur by securing and allocating the necessary
skills and resources (p.9)

Furthermore, Timmons (1989) defined it in such a way that:
Entrepreneurship is the process of creating and building something of value
from practically nothing. That is, it is the process of creating or seizing an
opportunity and pursuing it regardless of the resources currently controlled.
It involves the definition, creation and distribution of values and benefits to
individuals, groups, organizations and society. Entrepreneurship is very
rarely a get rich-quick proposition (not short term); rather it is one of
building long term value and durable cash flow streams (p.29)

In addition, Hisrich (2005 :) defined entrepreneurship as follows:
Entrepreneurship is the process of creating something new with value by devoting
the necessary time and effort, assuming the accompanying financial, psychic, and
social risks, and receiving the resulting rewards of monetary and personal
satisfaction and independence (p.2)

From the definitions given above, it is possible to conclude that in almost all of the
definitions of entrepreneurship, there is agreement that we are talking about a kind of
behavior that includes: (1) initiative taking, (2) the organizing and reorganizing of social
and economic mechanisms to turn resources and situations to practical account, (3) the
acceptance of risk or failure.


10

2.1.2 The benefits of entrepreneurship
It is abundantly clear that entrepreneurship is important for economic growth,
productivity, innovation and employment, and many countries have made
entrepreneurship explicit policy priority. Entrepreneurial activities have been recognized
as an important element in organizational and economic development, performance and
wealth creation. According to World Bank (2007), Fox (2001) and Hisrich (2005)
entrepreneurship has the following benefits.
1. Entrepreneurs are their own bosses. They make the decisions. They choose whom
to do business with and what work they will do. They decide what hours to work,
as well as what to pay and whether to take vacations.
2. Entrepreneurship offers a greater possibility of achieving significant financial
rewards than working for someone else.
3. It provides the ability to be involved in the total operation of the business, from
concept to design and creation, from sales to business operations and customer
response.
4. It offers the prestige of being the person in charge.
5. It gives an individual the opportunity to build equity, which can be kept, sold, or
passed on to the next generation.
6. Entrepreneurship creates an opportunity for a person to make a contribution. Most
new entrepreneurs help the local economy. A few—through their innovations—
contribute to society as a whole.
7. It is a catalyst for economic change and growth .Entrepreneurship increase per-
capita output and income .By doing so it involves initiating and constituting
change in the structure of business and society. As a result entrepreneurship
contribute a lot in increasing countries output and productivity
8. Entrepreneurship encourages innovation and creativity. It develops new products
or service for the market to fulfill human needs. It also stimulates investment
interest in the new ventures being created. Entrepreneurship through its process of
innovation creates new investment of new ventures .More ventures being created,
new jobs will be produced, thus reduce the unemployment rate. That will Creates
and promotes wealth distribution
11

As explained above, entrepreneurism helps the economy by creating wealth for many
individuals seeking business opportunities. Although this is not the number one reason
individuals pursue entrepreneur activities, it plays a major role in our economy. Both a
new business and the wealth the owner can obtain will help boost the economy by
providing new products as well as the spending power created for the entrepreneur.
Without entrepreneurs, our economy would not benefit from the boost they give from
added business and ideas.

Furthermore, starting a business can be rewarding. Entrepreneurs are their own bosses.
They can have more control over their working hours and conditions than they would
have if they worked for someone else. If they cannot find a job they want, they can go
into business to create one. For example, they may have a new idea about a particular
product or service. If they believe that others would be interested in it, they can go into
business for themselves. They may make a profit, which is the money left over after
paying their bills, from being creative and doing what they enjoy.
2.1.3 Factors affecting entrepreneurship
Even though entrepreneurship has its own advantages, it is not free of problems. For this
there are a number of factors .Samiti (2006), Tan (2000) classified the basic factors that
affect entrepreneurs in to two broad categories –economic and social.

The economic factors include competition in the market; lack of access to the market
,lack of access to raw material ,lack of capital or finance, lack of marketing knowledge;
lack of production/ storage space; poor infrastructure; inadequate power supply and lack
of business training

The social factors include lack of social acceptability; having limited contacts outside
prejudice and class bias; society looks down upon; attitude of other employees; and
relations with the work force

12

Besides this, Gemechis (2007), Hisrich (2005), ILO (2009) added Social and cultural
attitude towards youth entrepreneurship; entrepreneurship education; administrative and
regulatory framework; and business assistance and support; barriers to access technology
are crucial factors that affect entrepreneurial success.
2.1.4 Comparing the pros and cons of entrepreneurship
The following table summarizes the pros and cons of entrepreneurship as sited in
http://library.thinkquest.org/C008486F/iva.htm






















13

Table 1 Pros and cons of entrepreneurship
Pros Cons
Excitement: Due to its high capacity
for risk, there is a lot of adventure.
Salary: Starting your own business
means that you must be willing to give up the
security of a regular paycheck.
Rules and regulations: Work in a
current job is difficult to do because of all the
"red tape" and consistent administration
approval needed
Benefits: There will undoubtedly be
fewer benefits, especially when considering
that your business will be just starting off.
Originality: Some people feel that they
can offer a new service/product that no one else
has offered before.
Work schedule: The work schedule of
an entrepreneur is never predictable; an
emergency can come up in a matter of a second
and late hours will have to be put in.
Competition: Employees feel they can
offer their current company's product/service at
a lesser expense to the public.
Administration: All the decisions of
the business must be made on your own; there
is no one ranked higher than you on the chain
of command in your business.
Independence: Some people wish to be
their own boss and make all the important
decisions him/herself.
Incompetent staff: Often times, you
will find yourself working with an employee
who "doesn't know the ropes" as well as you do
due to lack of experience.
Salary potential: Generally, people
want to be paid for the amount of work they do
in full; they do not want to be "short-changed."
Procedures: Many times during your
entrepreneurial life, you will find that many
policies do not make sense, nor will they ever
make sense.
Flexibility: Entrepreneurs can schedule
their work hours to spend quality time with
family or any other reason.

Rational salary: They are not being
paid what they're worth and would rather work
on their own and earn the money they should
be earning for their efforts.

Freedom: Entrepreneurs can work
whenever they want, wherever they want, and
however they want.


Source: http://library.thinkquest.org/C008486F/iva.htm

14

2.2 Women entrepreneurship

Women’s productive activities, particularly in industry, empower them economically and
enable them to contribute more to overall development. Whether they are involved in
small or medium scale production activities, or in the informal or formal sectors,
women’s entrepreneurial activities are not only a means for economic survival but also
have positive social repercussions for the women themselves and their social
environment United Nations Industrial Development Organization (UNIDO, 2001).

In many societies women do not enjoy the same opportunities as men. In many
transitional economies progress has been achieved in opening doors to education and
health protection for women but political and economic opportunities for female
entrepreneurs have remained limited. Concerted efforts are needed to enable female
entrepreneurs to make better economic choices and to transform their businesses into
competitive enterprises, generating income and employment through improved
production (OECD, 1997).
2.2.1 Nature of women entrepreneurs
There is no agreement among researchers with regard to the differences in the
characteristics of male and female entrepreneurs. Some groups of researchers agree that
there are no differences. But some others state differences. For example Green & Cohen
(1995) stated,
“An entrepreneur is an entrepreneur is an entrepreneur,” and it should not matter
what size, shape, color, or sex the entrepreneur might be. If so, good research on
entrepreneurs should generate theory applicable to all. While research shows
similarities in the personal demographics of men and women entrepreneurs, there
are differences in business and industry choices, financing strategies, growth
patterns, and governance structures of female led ventures (p.106)

These differences provide compelling reasons to study female entrepreneurship – looking
specifically at women founders, their ventures, and their entrepreneurial behaviors as a
unique subset of entrepreneurship. Just as we have found that clinical trials conducted on
an all-male population do not necessarily provide accurate information about the
diagnosis or treatment of female patients, we see that scholarly research focused only on
15

male entrepreneurial ventures leaves many questions unanswered for their female
counterparts. Some argue that it is important to look at female entrepreneurs who, though
they share many characteristics with their male colleagues, are unique in many aspects.
Observable differences in their enterprises reflect underlying differences in their
motivations and goals, preparation, organization, strategic orientation, and access to
resources.

Birley (1987) stressed on the differences even in their background and personal
characteristics. He found the female entrepreneurs to be the first born; from a middle or
upper class family; the daughter of a self employed father; educated to degree level;
married with children; forty to forty-five at start-up; and with relevant experience

In their desire in starting new businesses, researchers identified a number of reasons for
women to become entrepreneurs. South Africa Entrepreneurs Network (2005) as sited in
http://www.dti.gov.za/sawen/SAWENreport2.pdf pointed out that challenges/attractions
of entrepreneurship; self-determination/autonomy; family concerns – balancing career
and family; lack of career advancement/discrimination; and organizational dynamics-
power/politics are reported as main initiators to become entrepreneurs for women.The
report also added the desire to make a social contribution and helping others has been
found to be a key factor in women choosing to become business owners.
2.2.2 Differences between women and men entrepreneurs
While gender was shown not to affect new venture performance when preferences,
motivation, and expectations were controlled for, the differences observed among men
and women entrepreneurs were observed by different researchers. Among these Shane
(1997) identified that men had more business experience prior to opening the business
and higher expectations; women entrepreneurs had a larger average household size; the
educational backgrounds of male and female entrepreneurs were similar; women were
less likely than men to purchase their business; women were more likely to have positive
revenues; men were more likely to own an employer firm; female owners were more
likely to prefer low risk/return businesses; men spent slightly more time on their new
16

ventures than women; male owners were more likely to start a business to make money,
had higher expectations for their business, and did more research to identify business
opportunities; male entrepreneurs were more likely to found technologically intensive
businesses, businesses that lose their competitive advantage more quickly, and businesses
that have a less geographically localized customer base; male owners spent more effort
searching for business opportunities and this held up when other factors were controlled
for.

Besides to this, Malaya (2006) tried to distinguish male and female entrepreneurs with
respect to their success indicators arranged in a sequential order from very important to
least important. The following table illustrates this.


















17

Table 2: Male vs. female entrepreneurs
Male Female
Generating revenues/profits Generating revenues/profits
Providing quality product /service
to customers
Providing quality product /service
to customers
Being able to balance work/ family
responsibilities
Providing employment to
people
Having a regular source of
livelihood
Being able to balance work/
family responsibilities
Improving quality of life of
employees
Improving quality of life of
employees
Being able to continue operation
of business
Being able to continue operation
of business
Expanding business Having a regular source of
livelihood
Providing employment to
people
Being able to utilize my
talents/skills
Gaining financial independence

Taking advantage of
business opportunities
Providing adequate family
support
Gaining financial
Independence

Source: Malaya M, F. (2006). A Gender-based Analysis of Performance of Small and Medium Printing
Firms in Metro Manila.
2.2.3 Factors affecting women entrepreneurs’ performance
Women Entrepreneurs have grown in large number across the globe over the last decade
and increasingly the entrepreneurial potentials of women have changed the rural
economies in many parts of the world. But this does not mean that the problems are
totally resolved. In support of this The Centre for Women’s Business Research in the
18

United States as sited in UNECE (2004) and Mahbub (2000) identified the following
factors that affect women entrepreneurs.

A. Access to finance
Access to finance is a key issue for women. Accessing credit, particularly for starting an
enterprise, is one of the major constraints faced by women entrepreneurs. Women often
have fewer opportunities than men to gain access to credit for various reasons, including
lack of collateral, an unwillingness to accept household assets as collateral and negative
perceptions of female entrepreneurs by loan officers (Mahbub, 2000).

B. Access to markets
The ability to tap into new markets requires expertise, knowledge and contacts. Women
often lack access to training and experience in on how to participate in the market place
and are therefore unable to market goods and services strategically. Thus, women-owned
SMEs are often unable to take on both the production and marketing of their goods. In
addition, they have often not been exposed to the international market, and therefore lack
knowledge about what is internationally acceptable. The high cost of developing new
business contacts and relationships in a new country or market is a big deterrent and
obstacle for many SMEs, in particular women-owned businesses. Women may also fear
or face prejudice or sexual harassment, and may be restricted in their ability to travel to
make contacts (UNECE, 2004).

C. Access to training
Women have limited access to vocational and technical training in South Asia. In fact,
women on average have less access to education than men, and technical and vocational
skills can only be developed on a strong foundation of basic primary and secondary
education. South Asia is characterized by low enrolment among women in education,
high dropout rates and poor quality of education. The table below shows female literacy
levels as a percentage of male literacy as well as average years of schooling of women
and men, respectively. The figures are testifying to the existence of gender discrimination
19

in building capacity of women and providing them with equal opportunities (UNECE,
2004).

D. Access to networks
Women have fewer business contacts, less knowledge of how to deal with the
governmental bureaucracy and less bargaining power, all of which further limit their
growth. Since most women entrepreneurs operate on a small scale, and are generally not
members of professional organizations or part of other networks, they often find it
difficult to access information. Most existing networks are male dominated and
sometimes not particularly welcoming to women but prefer to be exclusive. Even when a
woman does venture into these networks, her task is often difficult because most network
activities take place after regular working hours. There are hardly any women-only or
women-majority networks where a woman could enter, gain confidence and move
further. Lack of networks also deprives women of awareness and exposure to good role
models. Few women are invited to join trade missions or delegations, due to the
combined invisibility of women-dominated sectors or sub sectors and of women as
individuals within any given sector (Mahbub, 2000).

E. Access to policymakers
Most women have little access to policymakers or representation on policymaking
bodies. Large companies and men can more easily influence policy and have access to
policymakers, who are seen more as their peers. Women tend not to belong to, and even
less reach leadership positions in, mainstream business organizations, limiting their input
into policymaking through lobbying. Women’s lack of access to information also limits
their knowledgeable input into policymaking (UNECE, 2004).

Robertson (1998), OECD (2002), ILO (2008) added that the key factors that affect
women entrepreneurs’ performance especially in developing continents like Africa are:
vulnerability of women to adverse effects of trade reform; restraints with regard to assets
(land); lack of information to exploit opportunities; and Poor mobilization of women
entrepreneurs; lack of management skills; lack of awareness among young women of
20

entrepreneurship as a career option; conflicting gender roles; gender inequality
inappropriate technology; and constraints at the legal, institutional and policy levels .
2.2.4 Women entrepreneurs in Ethiopia
A national survey conducted by the Ethiopian Welfare Monitoring Unit as sited in Eshetu
and Zeleke (2008) shows that women entrepreneurs in Ethiopia are not provided with
adequate policy related and strategic support from the national government, and that the
promotion of vibrant SMEs should be one of the most important priority strategies for
empowering women, addressing abject poverty and unemployment in Ethiopia.

Businesses and enterprises operated by women contribute for economic dynamism,
diversification, productivity, competition, innovation and economic empowerment of the
poorest of the poor. Historically, there has been a well established tradition of women
being involved in small businesses and enterprises. However, it is only recently that
women’s entrepreneurship has gained the attention of economic planners and policy
makers particularly in developing countries in Ethiopia. Although the national
government has come to acknowledge that supporting enterprises operated by women
promotes gender equality and economic empowerment, the majority of enterprises
operated by women face difficulty in terms of access to finance, resources, business skills
and institutional support from the national government Ethiopian Ministry of Trade and
Industry of Ethiopia (2003); National Bank of Ethiopia (2002); Negash & Kenea, (2003).
The studies stressed that SMEs owned or operated by women in Ethiopia survive against
tremendous odds of failure.

While it is true that the predominant image of the “Ethiopian woman entrepreneur” is one
of poor women trying to survive, there are other profiles. One is of the woman who has,
because of higher education and better access to economic and resources, been able to
grow her micro enterprise into the small enterprise category (Hadiya, 1998; ILO, 2003).
According to Hadiya, these women believe they are the most neglected category of
women entrepreneurs because they do not have institutional credit or other support
services available to them. These women have outgrown the micro finance system and
21

yet are not able to borrow from banks. The other profile is of the woman who, because of
her higher education, previous work experience, and better economic circumstances, has
access to the financial and other resources needed to start and grow larger enterprises.
Members of the Ethiopian Women Exporters’ Forum (EWEF) are illustrative of this
group, although even members of the EWEF complain about inadequate access to
commercial bank loans to meet their working capital needs because of the rigid
requirement for collateral guarantees (which they often cannot meet). Research has
shown that it is possible for women to make the transition from a micro to a small
enterprise under the right circumstances. The ILO (2003) study of women in growth
enterprises found that 70 per cent of the women entrepreneurs currently engaged in small
enterprises had started them as micro-enterprises and grown them over time.

Eshetu and Zeleke (2008), ILO (2003) also identified that the following are the main
challenges that women entrepreneurs in Ethiopia face in a sequential order from very
Sevier to least important.
• Difficulty in obtaining loan from commercial banks
• failure of business/bankruptcy
• Failure to convert profit back into investment
• Shortage of technical skills
• Poor managerial skills
• Low level of education
Furthermore, ILO (2003) found that lack of suitable location or sales outlet; stiff
competition; low purchasing power of the local population; lack of marketing knowhow;
seasonal nature of the business ;lack of market information ;inadequate infrastructure
;shortage of time (due to multiple tasks) ;shortage of raw materials ;Shortage of working
capital are constraints of women entrepreneurs in Ethiopia.

A study conducted by ILO (2008) in Ethiopia, the United Republic of Tanzania and
Zambia identified that, women entrepreneurs do not have the same access to networks as
men; women entrepreneurs have difficulties accessing premises due to, among other
things, a lack of property and inheritance rights; women’s lack of access to titled assets
22

that can be offered as collateral for loans adversely affects the growth of their enterprises;
women entrepreneurs lack access to formal finance and rely on loans from family and
community; women entrepreneurs tend to be grouped in particular sectors, particularly
food processing and textiles; business development service providers do not give
adequate time or effort to target women entrepreneurs – they do not offer flexible
arrangements in respect of the timing and location of service delivery; Women often
experience harassment in registering and operating their enterprises.
2.3 Women entrepreneurs in SMEs

Women Entrepreneurs in MSEs are important to almost all economies in the world, but
especially to those in developing countries and, within that broad category, especially to
those with major employment and income distribution challenges. On what we may call
the “static” front, women entrepreneurs in MSEs contribute to output and to the creation
of “decent” jobs; on the dynamic front they are a nursery for the larger firms of the
future, are the next (and important) step up for expanding micro enterprises, they
contribute directly and often significantly to aggregate savings and investment, and they
are involved in the development of appropriate technology.

In an increasingly international marketplace, many companies are finding that prosperity
is best achieved from specialization, as opposed to diversification. While the majority of
the world’s largest companies continue to provide multiple services to numerous markets,
they now purchase many components and goods from smaller companies that serve one
particular niche. As the global marketplace continues to develop, women entrepreneurs in
MSEs provide an effective tool for economic growth through participation in global
supply chains (World Bank, 2005).
2.3.1 Benefits of women entrepreneurs in MSEs
With various definitions by various countries, sometimes it becomes a
difficult task for an individual to understand importance of women entrepreneurs in
MSEs. One may not know the important role that women entrepreneurs in SMEs plays in
developing any particular sector, economy of any country, alleviating poverty, increasing
23

employment, and, above all providing various items of daily use at an
affordable cost. Within the last few years many developed and developing countries have
realized the importance of the sector.
According to World Bank (2003) report Women entrepreneurs in MSEs are the engine of
growth; essential for a Competitive and efficient Market; Critical for Poverty reduction;
and Play a Particularly Important Role in developing Countries

Furthermore; according to UNECE as sited in http://www.unece.org/indust/sme/ece-
sme.htm, women Entrepreneurs in MSEs are contributing to employment growth at a
higher rate than larger firms. The private sector and in particular women entrepreneurs in
MSEs form the backbone of a market economy and for the transition economies in the
long-term might provide most of the employment. Support for women entrepreneurs in
MSEs will help the restructuring of large enterprises by streamlining manufacturing
complexes as units with no direct relation to the primary activity are sold off separately.
And through this process the efficiency of the remaining enterprise might be increased as
well; they curb the monopoly of the large enterprises and offer them complementary
services and absorb the fluctuation of a modern economy; through inter-enterprise
cooperation, they raise the level of skills with their flexible and innovative nature. Thus
women entrepreneurs in MSEs can generate important benefits in terms of creating a
skilled industrial base and industries, and developing a well-prepared service sector
capable of contributing to GDP.

UNIDO(2004) added that a characteristic of women entrepreneurs in MSEs is that they
produce predominantly for the domestic market, drawing in general on national
resources; the structural shift from the former large state-owned enterprises to women
entrepreneurs in MSEs will increase the number of owners, a group that represents
greater responsibility and commitment than in the former centrally planned economies;
an increased number of women entrepreneurs in MSEs will bring more flexibility to
society and the economy and might facilitate technological innovation, as well as provide
significant opportunities for the development of new ideas and skills; women
24

entrepreneurs in MSEs use and develop predominantly domestic technologies and skills;
New business development is a key factor for the success of regional reconversion where
conventional heavy industries will have to phased out or be reconstructed (especially in
the field of metallurgy, coalmining, heavy military equipment, etc.
2.3.2 Factors affecting the performance of women entrepreneurs in
MSEs
Even though women entrepreneurs in MSEs contribute a lot for the economic
development of a country, there are a number of challenges that affect them associated
with different factors. For example, according to World Bank (2005), ILO (2003),
(SMIDEC, 2004), women entrepreneurs in MSEs are affected by lack of entrepreneurial,
managerial and marketing skills; bureaucracy and red tape; lack of accessibility to
information and knowledge; difficulties accessing financial resources/Lack of capital
;lack of accessibility to investment (technology equipment and know-how) ;non-
conformity of standardization, lack of quality awareness and lack of mutual recognition
schemes ; Product and service range and usage differences ; language barriers and
cultural differences ;risks in selling abroad ;competition of indigenous MSEs in foreign
markets ;inadequate behaviors of multinational companies against domestic MSEs/Lack
of government supply-supporting programs ;complexity of trade documentation including
packaging and labeling ;lack of government incentives for internationalization of MSEs ;
inadequate intellectual property protection; unfavorable legal and regulatory
environments and, in some cases, discriminatory regulatory practices; lack of business
premises (at affordable rent); and low access to appropriate technology

Furthermore, a study made in Malaysia by APEC (1994), shows that the women
entrepreneurs in MSEs are facing many challenges, which are attributed to lack of
comprehensive framework in terms of policies towards MSEs development; many
agencies or channels for MSEs without effective coordination (this leads to lack of
transparency to the target groups) ; inadequate data and information on the development
of SMEs ; inability to be in the mainstream of industrial development. Many MSEs still
occupy lands or sites that are not approved to be used for industrial purposes. There is
25

also an underutilization of technical assistance, advisory services and other incentives
made available by the government and its agencies. In addition, there is a lack of skilled
and talented workers, which affects the quality of production as well as efficiency and
productivity.
2.3.3 Women entrepreneurs in MSEs in Ethiopia
According to Schorling (2006), ILO (2006) in Ethiopia the idea of Micro & Small
Enterprises (MSEs) development emerged as a promising agenda in the 1980s. A variety
of reasons have been cited for the surge of interest in MSEs development, like:
• MSEs are a better way for poverty reduction.
• MSEs are a platform for sustainable development and productivity.
• MSEs are important actors within the trade sector and a platform for economically
empowering women and men.
The MSE sector plays an important role in providing people with livelihood and income
generating opportunities, providing income and services to people who cannot get
employment in the formal sector.

In November 1997 the Ethiopian Ministry of Trade and Industry has published the
"Micro and Small Enterprises Development Strategy", which enlightens a systematic
approach to alleviate the problems and promote the growth of MSEs. Elements of the
program include measures with regard to creating an enabling legal framework and
streamlining regulatory conditions that hinder the coming up of new and expansion of
existing MSEs. In addition specific support programs also include measures related to
facilitating access to finance, provision of incentives, promotion of partnerships, training,
access to appropriate technology, access to market, access to information and advice,
infrastructure and institutional strengthening of the private sector associations and
chamber of commerce.(ILO,2003)

The following definition of MSE is from the Ethiopian Ministry of Trade and Industry
(1997) and is used to categorize the sector for the purpose of the strategy:
26

Micro Enterprises are those small business enterprises with a paid-up capital of not
exceeding Birr 20 000, and excluding high technical consultancy firms and other high
tech establishments.
Small Enterprises are those business enterprises with a paid-up capital of above 20,000
and not exceeding Birr 50 000, -- and excluding high technical consultancy firms and
other high tech establishments.

The Micro and Small Enterprises Sector is described as the national homes of
entrepreneurship. It provides the ideal: environment enabling entrepreneurs to exercise
their talents to the full and to attain their goals. In comparison with other countries it is
known that in all the successful economies, MSEs are seen as a springboard for growth,
job creation and social progress at large.

Women entrepreneurs development in MSEs: difficulties and
problems
Schorling (2006) study shows that in Ethiopia's situation MSEs are confronted by various
problems, which are of structural, institutional and economic in nature. Lack of Capital,
market and working premises, marketing problems, shortage of supply of raw materials
and lack of qualified Human resources are the most pressing problems facing MSEs.
Although the economic policy of Ethiopia paid due emphasis for entrepreneurship values
and appreciation of the sector's contribution to the economy, there are still constraints
related to infrastructure, credit, working premises, extension service, consultancy,
information provision, prototype development, imbalance preferential treatment and
many others, which therefore need proper attention and improvement.

According to GTZ as sited in http://www.bds-ethiopia.net/approach-tvet.html , women
entrepreneurs in MSEs in Ethiopia are faced with a number of challenges. The following
can be cited as the main ones.
• Limited and for some complete lack of access to funds
27

• Lack of or poor skills of operators and/or the work force in the economy due to
underdeveloped Technical and Vocational Education & Training (TVET) system
• Underdeveloped Business Development Services (BDS) market Poor
infrastructure
• Weak private sector promotional institutions
• Weak public sector support system

Main objectives of the women entrepreneurs development
strategy in MSEs
Schorling also identified that the primary objective of the Ethiopian strategy framework
is to create an enabling environment for women entrepreneurs in MSEs. In addition to
this basic objective the following specific objectives are stated here:
• Facilitate economic growth and bring about equitable development
• Create long-term jobs
• Strengthen cooperation between women entrepreneurs in MSEs
• Provide the basis for the Medium and Large Scale Enterprises
• Balance preferential treatment between women entrepreneurs in MSEs and
bigger enterprises
• Promote export
• According to the Ethiopian MSE-policy sited in www.bds-ethiopia.net, the Ethio-
German Micro and Small Enterprise Development Strategy focus on four
priorities:
• Enabling Governmental, Non-Governmental (NGO) Agencies and Commercial
Business Development Services (BDS) Providers to implement efficient BDS to
the Ethiopian Business Community
• Strengthen the organizational capacity of the Partner Organizations through
Organizational Development in order to deliver better services to the businesses
• Training of Trainers in order to implement CEFE Trainings (Creation of
Enterprises through Formation of Entrepreneurs)
28

• Networking with all organization (Government, NGO, BDS-Providers,
• International Donors) related to MSE Development in order to coordinate the
respective activities.
2.3.4 Women entrepreneurs in MSEs in Amhara Region
According to Walelign and Wondimu (2002), women entrepreneurs in MSEs in ANRS
play a crucial role in the economic improvement, because they utilize relatively less
capital, it’s a home of entrepreneurship, can create substantial job opportunity, utilize
cheap and local raw materials, and produce goods and services. Which save hard
currency for the country in general and for our region in particular and the very important
point is that it is creating opportunities for the population to earn (generate) income,
which by itself create the way to reduce the poverty.

Comparing with large enterprises women entrepreneurs in MSE maintain a closer
relationship with its customers, employees, it’s based on lower overhead and have grater
flexibility, because their size allows them to adopt new processes, services, materials and
products.

Regional Small and Micro Enterprise Development Agency strategy draft as sited in
Walelign and Wondimu (2002) shows that encouragement and promotional activities of
women entrepreneurs in MSE in the region have been weak. Though the regional
government has formulated the MSE regional strategy and put in place institution to
implement the strategy, little is achieved so far. Women entrepreneurs MSEs are still
facing sever constraints in their activities and their promotion and development are,
therefore, hampered. These Micro and Small Enterprises are unable to address the
problems they faced on their own, even in and effectively functioning market economies.
The problems / constraints/ relate to each other, to the legal and regulatory environments,
access to market, finance, business information, business premises, the acquisition of
skills and managerial expertise, access to appropriate technology, access to infrastructure,
and in some cases discriminatory regulator practices..

29

They also pointed out that since there have not been any organized policy and support
systems that women entrepreneurs in MSEs have been confronted by the various
problems which are of policy, structural and institutional in nature, lack of smooth supply
of raw materials and working premises were the major bottlenecks for women
entrepreneurs in MSEs. On the other hand negative attitude of the public to the
importance of the sector due to cultural influence is another constraint to the development
of MSEs, due to these reasons, training services to SMEs is fairly young and weak. Only
insufficient formal counseling, information and training services are given and they are
often given freely and are not demand driven and lack of knowhow on adequate skills &
experience.

A similar study by Walelign and Wondimu (2002) shows that women entrepreneurs in
MSEs in Amhara region are constrained by lack of market; lack of finance /Capital/;
problems related to government rules & regulations; lack of information and advice; lack
of sufficient training; lack of Premises / working Place; shortage of the supply of raw
materials; cultural influence and lack of infrastructure facilities.
2.2 Women entrepreneurs in MSEs and TVET
MSEs play a vital role in poverty reduction, employment generation as well as economic
development in poor countries like Ethiopia. The Ethiopian micro & small enterprise
sector has a wide range of operators: petty traders to small restaurant owners; a shoeshine
boy to a small shoe factory owner; a peddler in the streets to a grocery business operator,
etc. But to bring it to the modern arena, much is expected from TVET institutions in that
they are the main suppliers of qualified labour force both male and women. In support of
this, to bring effectiveness in the MSEs sector by integrating them with TVET
Ratchusanti (2008) identified the following.

• Strengthening Partnership with the private and government organizations
Supporting TVET projects.
• Existing the effective TVET Projects of fostering entrepreneurship or self-
employment of TVET students and the people.
30

• Integrating in teaching learning in knowledge and skill for students in writing
business plan and managing the MSE.
• Establishing incubator training centers in the colleges and enhancing the smart
TVET students and the lacked chance people to meet the capital investment loans
to begin their business.
• Enhancing TVET students in sufficient economic, moral, work habit, career
attitude and MSE concept by integrating in teaching and learning.
• Toping up skill and knowledge for the people in the community who has their
own business by TVET Colleges.

Ratchusanti added that MSE sustainable development should be an integral aspect of
TVET plans, projects actives in teaching and learning process. However, Administration
Teachers are the key for success. They need to be managers facilitators coaches, mentors,
advisors, counselors, or anyone who are to make TVET students continue to learn, to
improve their knowledge skill and attitude in MSE which effect to economic of the
country.

In order to integrate TVET and MSEs in Ethiopia a great effort is made by GTZ.Among
development cooperation initiatives that are pursued by the GTZ in Ethiopia, private
sector development is one. Since private sector development and employment promotion
is one of the priority areas of intervention for GTZ in Ethiopia, a number of development
programs have already been propelled in this connection. The objective of the Ethio-
German cooperation in the priority area is to initiate economic development by
stimulating income and employment generation through coordinated intervention in the
fields of TVET and MSE development as well as privatisation. The approach of the
Ethio-German Cooperation in the priority areas comprises of the following strategic aims
sited in http://www.bds-ethiopia.net/approach-tvet.html
• Diversify and increase the relevance and quality of TVET in order to make TVET
responsive to the development needs of all economic sectors in Ethiopia; in
particular the private industry, urban and rural MSE sector.
31

• Provide access to adequate TVET for all target groups in need of training, in order
to improve the capabilities of these target groups to make use of existing income
and employment opportunities.
• Create a dynamic entrepreneur group as a partner in the economic development
process thereby enhancing the contribution of the private sector to sustainable
economic growth
• Ensure ownership of all relevant stakeholders in the planning and implementation
of major policy fields, in particular TVET, the privatisation policy and MSE
promotion
• Relieve tied resources and enable the Government re-deploy its scarce resources
and the privatisation proceeds to higher priority sectors and poverty reduction
programs
The TVET and SME projects have been cooperating for the fulfilment of certain
objectives in the Ethio-German Cooperation of priority areas. In this connection, it can be
cited that the MSE project which is involved in BDS facilitation, networking and the
provision of capacity building support to public and private MSE promotional institutions
is working in close collaboration with the GTZ-TVET program which is involved in
system development, vocational school teachers training and assistance to Skills
Development Centres (SDCs).

The unemployed youth that benefits from the program intervention of TVET is finally
expected to join the private sector. Thus, there are various strings that connect the GTZ-
MSE Project and the TVET Program. The two programs collaborate in the inclusion of
CEFE training into the curriculum of the Skill Development Centres, and in the areas of
labour market information to prospective graduates of the Skill Development Centres.
While the GTZ-TVET program operates in the areas of skilled labour supply, the MSE
Project works with those institutions that promote MSE sector operators. Hence TVET
intervenes on the skilled labour supply side while the MSE Project works with the
potential employers (private business operators).

32

The two programs have started some local network initiatives in some parts of the
country, notably in Amhara and Tigray regions. The objective of the network is to enable
the skill trainees enter the private sector workforce. By so doing, additional employment
and incomes would be gained for the trained youth. On the other hand the private
business sector would enjoy more profit from the skilled labour input produced from the
TVET system. The strategy adopted by the TVET and the SME Projects is to bring all
stakeholders that work in collaboration with the two Ethio-German Programs together
and devise viable ways of linking skill training to employment in the MSE sector. The
interest and good will shown for networking in the two Ethio-German programs is
apparently encouraging and expected to produce a synergy effect in the pursuit of
economic development and employment promotion.
















33

CHAPTER THREE
METHODOLOGY
In this chapter the research design used, the data gathering methods and tools; sampling
and sampling procedures and the methods of data analysis are discussed very well.
3.1 Design of the study
A descriptive survey research design was employed in the study to assess the key factors
that affect the performance of women entrepreneurs in MSEs in Dessie town. The reason
for using this design is that it enables to describe the different factors that affect the
performance of women entrepreneurs in MSEs as they exist.
3.2 Population, sample and sampling techniques

The population of the study consisted of 2,026 women entrepreneurs who work in 5
sectors of MSEs. So as to get a reasonable sample size, a 95% level of confidence and a
6.5% confidence interval was used to select a sample of 203 Women entrepreneurs in
these MSEs. For selecting these samples of entrepreneurs, stratified sampling was used in
which the 5 key sectors that woman entrepreneurs are engaged was taken as strata so as
to give equal chance to each of the sectors. From each sector, 10% of women
entrepreneurs in MSEs were selected randomly using lottery method by taking list of
respondents from the MSE’s office.

For microfinance, MSE heads and TVET leaders, purposive sampling was used. Top
officials of these institutions (Dessie Micro finance manager, MSEs Core process owner,
and W/ro Siheen TVET dean) were purposely taken and interviewed since the researcher
believes that they know the condition better than others because of their day –to- day
contacts with women entrepreneurs.





34

The following table summarizes the total population in each sector and the corresponding
sample taken from each sector.
Table 3. Summary of women entrepreneurs’ population and sample taken
Key Sectors population/strata sample
Construction 1098 110
Textile 132 13
Food &beverage 424 42
Urban agriculture 248 25
Municipality service 124 12
Total 2026 203
Source: Dessie MSEs office annual report (2001E.C)
3. 3 Data sources, gathering instruments and procedures
Both primary and secondary sources of data were used for the study. The secondary data
include information that are obtained mainly from different reports, bulletins, websites
and literatures, which are relevant to the theme of the study, were gathered from various
sources to complement the survey-based analysis. The primary sources of data were
questionnaires distributed to women entrepreneurs and interviews conducted with MSEs,
TVET and Micro finance leaders.

In order to answer the basic questions raised, a 57 item questionnaire that has 4 parts was
prepared. The first part consists of demographic profile of the respondents which is
designed in a close ended format. The second part covers the characteristics of women
entrepreneurs in MSEs and their enterprises which is also prepared in a close ended
format. The third and the fourth parts both designed using Likert scale, address issues of
key factors that affect women entrepreneur’s performance in MSEs and support areas of
TVETs to MSEs respectively. The Likert scale ranges from ‘strongly agree’ to ‘strongly
disagree’ (5=strongly agree 4=agree 3=undecided 2=disagree 1=strongly disagree,
see appendix A) so as to not limit the response of respondents to some limited ranges.

35

Initially the questionnaire was prepared in English language based on the literature
review and some adaptations from prior researches. Taking in to account the respondents
educational background and to increase more understandability it was later translated in
to Amharic and then distributed to 10 sample respondents (randomly 2 respondents from
each sector using lottery method) to check whether what is expected to acquire is
achieved or not as a pre-test.

In assuring the reliability and validity of the tests, the pretest results shows a cronbach
alpha value of 84.91 %( See appendix F).According to Yalew (2009), taking the number
of items in the questionnaire and the characteristics of respondents, the value can verify
the reliability of the testes. In addition, it was checked for grammar and other spelling
errors using language and measurement professionals. Based on the findings of the
pretest and comments of language and measurement experts, certain amendments were
made on the questionnaire and lastly by giving the necessary orientations to respondents,
the questionnaire was distributed to the whole sample women entrepreneur respondents.
Moreover, in order to get detail information from limited number of respondents, the
researcher conducted structured interviews with top officials. Hence, a predesigned 4
major questions and 4 sub-questions were conducted with MSEs work process owner for
an hour. In addition, 6 major questions were forwarded to W/ro Siheen TVET dean for
1.5 hours. Furthermore, 4 major questions were raised to Dessie micro finance head for
45 minutes. Interviews in all cases were conducted in their offices and their responses
were recorded (See appendices B, C and D).
3.4 Methods of data analysis

After the data has been collected, it was coded and fed to excel sheet so as to simplify
further tasks. The respondents’ scores were summarized from the sheet and made ready
for analysis. After that, it was analyzed using both descriptive statistical techniques and
descriptive narrations. The demographic profiles and items related to characteristics of
women entrepreneurs were analyzed using simple statistical tools such as tables and
percentages. Descriptive statistics (mean and standard deviations) of the respondent
scores were computed for the Likert statements and analyzed by comparing these mean
36

scores and deviations among respondents. The reason for using descriptive statistics is to
compare the different factors that affect the performance of women entrepreneurs in
MSEs by the means and standard deviations of scores. The interview questions were
analyzed using descriptive narrations.

Finally, all these were followed by the necessary interpretations and discussions so as to
achieve the desired goals. In interpreting the results for the likert questions, the mean
scores less than 2.45 implies respondents do not agree; scores 2.45-3.44 shows undecided
and greater than 3.44 indicates agreement among respondents on the issues raised
rounding results to the nearest two decimal places.





















37

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND
DISCUSSION OF RESULTS

This chapter presents and analyzes the data collected and discusses it accordingly. First,
the demographic profile of respondents is analyzed and presented followed by the
characteristics of women entrepreneurs in MESs. Both are analyzed using frequency
tables and percentages. Thirdly, the data related to the factors that affect the performance
of women entrepreneurs and the areas of support between TVETs and MSEs are
presented and analyzed. Mean and standard deviations are used for the presentation and
analysis of these parts. Finally, discussions are made based on the data presented and
analyzed.

Of the totally distributed questionnaires (203), 197 were properly filled and collected.
This amounts 97.04% of the total respondents. Since this is adequate enough to make the
analysis, all the discussions below are made on these groups of respondents.
4.1 Presentation and analysis

In this part, the data collected in answering the basic questions are presented and
analyzed.
4.1.1 Demographic profile of respondents
The following table summarizes the demographic profile of respondents by age,
educational level, work experience and marital status.





38

Table 4. Respondents’ demographic profile

1. Age Number percentage
Below 20 15 7.61
21-30 77 39.09
31-40 79 40.10
Above 40 26 13.20
Total 197 100
2. Educational level
Can’t read and write 35 17.77
Grades 1-4 34 17.26
Grades 5-8 55 27.92
Grades 10 complete 38 19.29
10+1 &10+2 32 16.24
10+3 /diploma 3 1.52
BA/BSC & above - -
Total 197 100
3. Experience
Less than 1 years 53 29.90
1-5 years 91 46.19
6-10 years 12 6.09
Greater than 10 years 41 20.81
Total 197 100
4. Marital status
Married 89 45.18
Single 57 28.93
Divorced 28 14.21
Widowed 23 11.68
Total 197 100

As can be seen from the table above, majority of the respondents are within the age
category of 31-40 years (40.10%) followed by those under the category of 21-30 years
(39.09%).The remaining 13.20% and 7.61% of the respondents are under the age
category of above 40 years and below 20 years respectively.

When we see the educational level of the respondents, it is clearly seen from the table
that most are within the grade level of 5-8 (27.92%).This is followed by those who
completed grade 10
th
(19.29%) and cannot read and write (17.77%).The table also shows
that 17.26% and 16.24% of the respondents are within 1-4 grade levels and those reach
10+1 to10+2 levels respectively. It is only 1.52% that has a college diploma /10+3 and
39

there is no respondents who has a degree and above.

With regard to the work experience of the respondents, the table shows that majority of
the respondents (46.19%) have 1-5 years of experience in their work. It is also clear that
29.90% and 20.81% of the respondents have an experience of less than one year and
greater than 10years respectively. The remaining 6.09% of the respondents have 6-10
years of service in their enterprise.

The marital status of the respondents shows that the majority are married(45.18%)
followed by singles(28.93%).The remaining 14.21% and 11.68% of the respondents are
divorced and widowed respectively.
4.1.2 Characteristics of women entrepreneurs in MSEs and women owned
enterprises
There are a number of distinct criteria that makes women entrepreneurs and their
enterprises different from that of men entrepreneurs even though there are common
elements. The following table shows the characteristics of respondents by family size,
sector they are working on, the number of employees working in the enterprise, legal
ownership status of the business, reasons to start own business, who initiates the business
idea, source of skill for starting the enterprise and source of starting fund.

Family size
The following table shows the family size of respondents
Table 5. Family sizes of respondents
Item
Family size

Number

Percent
Less than 4 101 51.27
3-5 83 42.13
Greater than 5 13 6.60
Total 197 100



40

As can be seen from the table ,majority of the respondents(51.27%) have a family size of
less than 4.The table also shows that 42.13% of the respondents have a house hold size of
4-5.It is only the remaining 6.60% respondents that their family size is greater than 5.

Sector
The sectors in which women entrepreneurs are working in is depicted in the following
table.
Table 6. Sectors respondents engaged in.
Item
Sector

Number

Percent
Trade 5 2.54
Production 107 54.31
Services 71 36.04
Hand-craft 14 7.11
Other - -
Total 197 100

It is clearly seen from table 6 above that majority of the respondents (54.31%) are
engaged in the production sector. The service sector accounts 36.04% of the respondents.
The hand crafts and trade take the remaining 7.11% and 2.54% respectively.

Number of employees in the enterprise
Women entrepreneurs in MSEs provide a large numbers of employment opportunities to
the society. The following table clearly shows the number of employees that women
entrepreneurs in MSEs employ.



41

Table 7. Number of employees hired.
Item
Number of employees in the enterprise

number

percent
Less than 5 45 22.84
5-10 5 2.54
11-15 20 10.15
more than 15 127 64.47
Total 197 100

As you can see from the table above, majority of the respondents (64.47%) hire more
than 15 employees in their enterprise. But 22.84% respond that they employ less than 5
workers in their enterprise. The table also shows that 10.15% and 2.54% of the
respondents hire from 11-15 employees and from6-10 employees respectively.

Legal ownership status of the establishment
Enterprises are created having different legal ownership statuses such as Sole ownership,
Joint ownership, Family business, Cooperative and others (Hisrich, 2005).The following
table shows the respondents legal ownership status.
Table 8. Legal ownership of the enterprise
Item
Legal ownership status of the establishment

Number

Percent
Sole ownership 2 1.02
Joint ownership/Partnership 27 13.71
Family business 17 8.63
Cooperative 148 75.13
Other 3 1.52
Total 197 100



42

As one can see from the table above, majority of the respondents (75.14%) establish their
enterprise in the form of cooperatives followed by joint ownership (13.71).The least
number of respondents have a legal ownership of sole proprietorship business (1.02%).

Reasons to start own business
The motivators to establish own business are many in number and vary from individual to
individual. The following table shows the reasons that women entrepreneurs in MSEs are
motivated to start their own enterprises.
Table 9. Reason to Start own Business
Item
Reasons to start own business

Number

Percent
Family tradition 21 10.66
To be self-employed 42 21.32
Brings high income 19 9.64
Small investment is required 5 2.54
No other alternative for incomes 104 52.79
Others 6 3.05
Total 197 100

Table 9 above vividly shows that most of the respondent entrepreneurs (52.79%)
establish their own business for the reason that they have no other alternatives for
income.21.32% of the respondents start their own business since they want to be self
employed. Only 2.54% of the respondents establish their own business because they
believe that it requires a small investment.

Who initiated and started the business?
It is common that some start their own business with their own initiation and some others
establish enterprises with family or friends as a partner. The table below shows the
initiators of women entrepreneurs to start own business.
43

Table 10. Initiators and starter of the business
Item
Who initiated and started the business

Number

Percent
Myself alone 111 56.35
With the family 45 22.84
With a friend/partner 13 6.60
Other 28 14.21
TOTAL 197 100

The above table clearly depicted that majority of the respondents (56.35%) start
enterprises with their own initiation. Similarly, 22.84% of the respondents start
businesses with their family initiation. It is only 6.60% of the entrepreneurs establish
business with an initiation of a friend /partner.

Source of skill for running your enterprise
In running any business, it is logical that the necessary skills are required. These skills
can be acquired from different sources. The following table shows the respondents source
of skills to run their enterprises.












44

Table11. Family entrepreneurial history and source of skill for starting the enterprise
No. Item
Is there anyone in the family who was entrepreneur
or owner of some related business activities?


Number


Percent
Yes 59 29.95
No 138 70.05
1
TOTAL 197 100
If yes, what is your family relation with him/her
Father 24 40.68
Mother 9 1.3
Brother 18 30.51
Sister 7 11.84
Grandfather 2 3.39
2.
TOTAL 59 100
Source of skill for running your enterprise
Through formal training 120 60.91
From past experience 19 9.64
From family 41 20.81
Other 17 9.64
3.
Total 197 100

It is possible to see from the table above that, 70.05% of the entrepreneurs respond that
they have no family member who was an entrepreneur. It is only 29.95% who have an
entrepreneur in their family.

Of those women who respond of having an entrepreneur family, 40.68% said that their
fathers are entrepreneurs. Similarly, 30.51% respond that their brother is an entrepreneur.
It is only 3.39% who have an entrepreneur grandfather.

It is also indicated in the table above that 60.91% of the respondents acquire the
necessary skill for their business from formal trainings. Moreover,20.81% of the
entrepreneurs acquire their skills from their family. Only 9.64% of the respondent
entrepreneurs acquire the skill from sources other than those stated.

The main source of start-up funding
Starting own business requires a starting capital rather the mere existence of ideas. The
following table shows the main sources of start-up fund.
45

Table12. Source of startup funding
Item Number Percent
Personal saving 21 10.66
household 9 4.57
Borrowed from relatives or friends/money lenders 1 0.51
Micro-finance institutions 153 77.66
Equb 7 3.55
Assistant from friends/relatives 3 1.52
Inheritance 3 1.52
Borrowed from Bank - -
Assistant from NGO’s - -
Others - -
Total 197 100

The table above shows that majority of the respondents (77.66%) use micro finances as
main source of start-up funding in financing their enterprises. It is also clear that 10.66%
of the entrepreneurs use personal saving as their main source of start-up funding. The
table above shows that (0.51%) of the entrepreneurs finance their business borrowing
from relatives/friends. Women entrepreneurs in MSEs do not use banks and NGOs as a
source of financing their business.
4.1.3 Factors affecting women entrepreneur’s performance in MSEs
There are a number of challenges that affect women entrepreneurs in MSEs associated
with different factors. The following table shows the major economic factors the affect
these entrepreneurs.

Economic factors
The major economic factors that affect the performance of women entrepreneurs include
finance, market, training, land, information, managerial skills, infrastructures and raw
materials (Samit, 2006).



46

Table 13. Economic factors that affect the performance of women entrepreneurs in MSEs
No. Item
1 Economic factors
MEAN STANDARD
DEVIATION
Rank of
Severity
1.1 I am satisfied with the financial access given by
micro finances and other credit institutions.
1.93 1.34 2
nd

1.2 I have a better access to market for my products 2.85 1.53 8
th

1.3 A have better access to different business
trainings
2.17 1.24 4
th

1.4 I have my own premises (land) to run my
business
1.92 1.28 1
st

1.5 I have an access to information to exploit
business opportunities
3.69 1.38 10
th

1.6 I have managerial skills 2.58 1.30 7
th

1.7 I have access to necessary technologies 2.18 1.29 5
th

1.8 There is no stiff competition in the market place
that I am engaged in.
2.12 1.14

3
rd

1.9 Adequate infrastructures are available 3.59 1.37 9
th

1.10 I have access to necessary inputs(raw materials) 2.19 1.27 6
th

Grand mean/standard deviation 2.49 0.1

It is discussed in table 12 above that microfinance are the main suppliers of finance for
women entrepreneurs in MSEs. But table 13 shows that women entrepreneurs in MSEs
are not satisfied with the financial access given by micro finances and other lending
institutions. It shows a mean score of 1.93 with a standard deviation of 1.34.Therefore,the
average score of the respondents with regard to satisfactory financial access is ‘disagree’
with little deviations among them.

As the mean score (2.85) and standard deviation (1.53) in the table above show, the
market access of the respondents entrepreneurs is almost undecided. It seems that these
women neither agree nor disagree on the market condition of their products.

Most women entrepreneurs in MSEs acquire their skills for establishing their own
business from formal trainings (See table 11).But as the table above shows, the access for
different business trainings for the women respondents is low with a mean of 2.17and
standard deviation of 1.24.


47

One success factor for an entrepreneur is having own premises such as land (Hisrich,
2005). Table 13 above shows that the respondent women entrepreneurs in MSEs do not
have their own land to run their businesses. The response shows a mean of 1.92 with a
standard deviation of 1.28.

However, these women entrepreneurs respond that they have a better access to
information to exploit different business opportunities. As the mean score (3.69) and
standard (1.38) clearly depicts, the respondent entrepreneurs agree on their better access
to information.

In relation to their managerial skills in running their business, the respondents do not like
to decide on it. This is justified by the mean score (2.58) and the standard deviation
(1.30).

With regard to technological access and market competition, the mean scores (1.18 for
technology access and 2.12 for market competition) and the standard deviations (1.29 for
technology and 1.14 for competition) shows that respondents do not agree with a better
technological access and with the idea that there is no stiff competition for their products.

The mean scores (3.59) and standard deviations (1.37) shows that, the respondent women
entrepreneurs in MSEs agree on the availability of the necessary infrastructures around
their working areas.

Lastly, the scores for the availability of necessary raw material/inputs in the table above
show that the respondent entrepreneurs do not agree with their access to these inputs with
a mean of 2.19 and standard deviation of 1.27.

Socio-cultural factors
It was common to hear the bad names such as “buda”,”shemane,”ketkach” and others
given to different entrepreneurs in Ethiopia. These are good indicators of socio-cultural
influences on individuals running their own business. The following table shows the
48

current states that these factors have impacted women entrepreneurs in MSEs.
Table 14. Socio-cultural factors that affect the performance of women entrepreneurs in
MSEs
No. Item
1 Socio-cultural factors

Mean
Standard
deviation

Remark
1.1 I have better social acceptability 2.08 1.13 2
nd

1.2 I have better contact(network) with outsiders 2.12 1.28 3
rd

1.3 I have no prejudice or class biases 3.48 1.32 5
th

1.4 The societies attitude towards my products/services is
positive
3.26 1.46 4
th

1.5 The attitude of other employees towards my business is
positive
3.62 1.4 7
th

1.6 I have a positive relationship with the workforce 3.96 1.1 10
th

1.7 I have no conflicting gender roles 2.02 1.21 1
st

1.8 I am not affected by gender inequalities 3.55 1.43 6
th

1.9 I have no cultural influences 3.87 1.4 9
th

1.10 I never encounter harassments in registering and
operating my business
3.82 1.31 8
th

Grand mean/standard deviation 3.18 0.12

The mean scores(2.08) and standard deviation(1.13) of the respondents in table 14 shows
that women have no better social acceptability .They do not agree on the idea that they
have a better social acceptance. Similarly, the contact (networks) that women
entrepreneurs in MSEs have with outsiders is low too with a mean score of (2.12) and
standard deviation of (1.28).

However, they approach to agree in the idea that they have no prejudices or class biases
with a mean of (3.48) and standard deviation of (0.32).Similarly, with regard to the
attitude of the society towards their products/services, the respondent women
entrepreneurs in MSEs do no not like to decide on idea that the attitude of the society is
positive.

On the other hand, in relation to the attitude of other employees towards their business
and the relationship that these women entrepreneurs have with their employees, the table
above shows that, the respondents have a positive relationship with their employee and
the attitude of the employees towards the business is positive too. The mean scores 3.62
49

and 3.96 and standard deviations 1.4 and 1.1 for attitude of employees and relationship
with employees respectively clearly strengthens this idea.

But, these respondents do not agree with the idea of having conflicting gender roles. The
mean scores (2.02) and standard deviations (1.21) in the table above shows that there are
different conflicting gender roles for the respondent women entrepreneurs in MSEs.

By the same taken, issues of gender inequality, cultural influences and harassments are
not serious problems for women entrepreneurs in MSEs as the table above shows very
well. The respondents agree with a mean of 3.55 and standard deviation of 1.43 that there
are no gender inequalities. Similarly they agree on the issues that cultural influences and
harassment problems are very low. This is justified by the mean scores 3.87 and 3.82
with a deviation of 1.4 and 1.31 for cultural influences and harassments respectively.

Legal and administrative factors
Of the different factors that hinder entrepreneurial performance, the impact of legal and
administrative influences is not to be undermined. The following table displays the key
legal and administrative factors that affect the performance of women entrepreneurs in
MSEs.












50

Table 15. Legal and administrative factors that affect the performance of women
entrepreneurs in MSEs

Tables 15 above clearly portraits the respondent women entrepreneurs in MSEs have
business assistant and supports from government bodies. The mean score (3.57) and
standard deviations (1.41) shows that these entrepreneurs agree with the issue that they
have business assistants and supports from the concerned government officials.

To the contrary, these women entrepreneurs disagree with the ideas of having network
with administrative bodies and access to policy makers. The mean scores and standard
deviations clearly show their disagreement. That is means of 1.85 and 1.9 and standard
deviations of 1.23 and 1.28 for net work with outsiders and access to policy makers
respectively.

Even though this is the case, agreements are seen among the respondents in relation to the
inexistence of legal, institutional and policy constraints. Similarly they agree on the idea
of borrowing money even without collaterals. The mean (3.53) and (3.6) and the standard
deviations (1.42) and (1.36) for the constraints and collateral matters respectively support
the ideas.

No. Item
1 Legal and administrative factors

Mean
Standard
deviation
rank of
severity
1.1 I have business assistants and supporters from government
bodies
3.57 1.41 9
th

1.2 I have a network with different administrative bodies 1.85 1.23 1
st

1.3 I have access to policy makers 1.9 1.28 2
nd

1.4 I have no legal, institutional and policy constraints 3.53 1.42 8
th

1.5 I can borrow money even without titled assets as a
collateral
3.6 1.36 10
th

1.6 Interest rate charged by micro finances and other lending
institutions is reasonable
1.94 1.22 4
th

1.7 I have never encountered bureaucracies and red tapes 1.97 1.32 5
th

1.8 I am beneficiary of government incentives 3.48 1.4 7
th

1.9 In general the overall legal and regulatory environments
favorable.
2.13 1.12 6
th

1.10 The tax levied on my business is reasonable 1.93 1.29 3
rd

Grand mean/standard deviation 2.59 0.06
51

As opposed to this, the table shows that the interest rate charged by borrowing
institutions and the tax levied on entrepreneurs is not reasonable. The disagreement on
the reasonability of the interest rates and tax amount is justified by the calculated means
(1.94) and (1.93) and standard deviations (1.22) and (1.29) for interest and tax amount
respectively. In addition the respondents ‘disagree’ that bureaucracies and red tapes do
not affect their performance with mean of (1.97) and standard deviation of (1.32).

With regard to government incentives and the favorability of the overall legal and
regulatory environments the mean scores 3.48 and 2.13 and standard deviation 1.4 and
1.12 implies that even if there are government incentives, the overall legal and regulatory
environments are not as such favorable.
4.1.4 Comparison of factors that affect women entrepreneur’s
performance in MSEs
Even though, all the economic, social, legal and administrative factors affect the
performance of entrepreneurs, this does not necessarily mean that all have equal impact.
The following table clearly compares the overall impact of all the key factors discussed in
detail above.
Table 16. Comparison of the major factors affecting women entrepreneurs’
Performance
item

No.

Factors
Grand
Mean
Grand
Standard
deviation
Severity
Rank
1 Economic Factors 2.49 0.1 1
st

2 Scio-cultural factors 3.18 0.12 3
rd

3 Legal and administrative factors 2.59 0.06 2
nd





52

The grand mean (2.49) and grand standard deviation (0.1) in the above table clearly
depicts that the economic factors are Sevier than the others followed by the legal and
administrative factors that has a grand mean of (2.59) and a grand standard deviation of
(0.06).

The table also shows that the impact of the socio-cultural factors is better than the
economic, legal and administrative factors as the grand mean (3.18) and grand standard
deviations (0.12) clearly depict.
4.1.5 Supports given by TVET institutions to women entrepreneurs in
MSEs
Even though TVETs are not expected to tackle all the problems that women
entrepreneurs in MSEs face, there are some supports that can be taken as a
responsibilities of TVET colleges and institutes. By the following table, it is tried to
assess whether TVETs are providing the required supports to MSEs or not.
Table 20. Summary of the Supports Given by TVETs to MSEs
No. Item
Supports given by TVETs to MSEs

Mean
Standard
deviation
rank of
supports
Training support
1 TVETs provide entrepreneurship training to MSEs 1.87 1.08 8
th

2 TVETs provide marketing training to MSEs 1.96 1.16 6
th

3 TVETs provide planning and financial report training to
MSEs
1.93 1.15 7
th

4 TVETs provide machine maintenance training to MSEs 3.22 1.62 5
th

5 TVETs provide customer service training to MSEs 1.76 0.92 12
th

6 TVETs provide technical skill training to MSEs 3.74 1.45 3
rd

Machine support
7 TVETs provide machine maintenance service to MSEs 3.85 1.37 2
nd

8 TVETs provide machines support(gifts) to MSEs 1.82 0.98 10
th

Financial, technology, raw material and facility supports
9 TVETs provide Financial supports to MSEs 1.84 1 9
th

10 TVETs provide Technology supports to MSEs 3.88 1.37 1
st

11 TVETs provide Raw material supports to MSEs 1.79 0.98 11
th

12 TVETs provide Facility(such as transportation) and furniture
supports to MSEs
3.65 1.49 4
th

Grand mean/standard deviation 2.61 0.23
53

As TVETs are training centers, they are expected to equip trainees with the necessary
skills, knowledge and attitudes through formal, informal or non formal basis.

Entrepreneurship training enables individuals create to own businesses rather than
seeking employment in any organization. To strengthen such a culture, TVETs are
providing entrepreneurship training to the youth. Even though this is the case, women
entrepreneurs in MSEs do not agree with the provision of entrepreneurial training to them
with a mean of 1.87 and standard deviation of 1.08.Similarly, respondents agree that
marketing, planning and financial report training are not given to them by TVET
institutions/colleges. The mean (1.96) and (1.93) and standard deviations (1.16) and
(1.15) for marketing and plan/report respectively are good indicators of this.

A support to MSEs in relation to customer service is also weak. The mean (1.76) and
standard deviations (0.92) in table 17 clearly shows that respondents do not agree with
customer service trainings supports from TVETs.

However, the supports in the areas of machine maintenance and technical skill trainings
seem better as the table above portrays very well. Regarding machine maintenance
trainings, the mean (3.22) and standard deviation (1.62) depicts that the respondents’
agreement scale is more than undecided, indeed less than agree. About technical skill
trainings respondents agree that training is given. The mean (3.74) and the standard
deviation (1.45) confirm this idea.

TVETs as producers of different technicians are expected to support MSEs by providing
them different machines created/copied within the college /institution and help in
maintaining machines that encounter problems.

It is clear in the table above that machine maintenance services are given to MSEs
through TVET colleges / institutes. The mean (3.85) and standard deviation (1.37) shows
the agreements among respondents in acquiring this service. However, respondents’
agreement is weak in relation to the idea that machines created/copied with in TVETs are
54

given to women entrepreneurs in order to support them. This is strengthened by the mean
(1.82) and standard deviations (0.98) calculated in the table above.

As one stakeholder in strengthening women entrepreneurs in MSEs, TVETs are also
expected to support in finance, technology, raw materials and facilities. Table 17 above
shows that, the respondent entrepreneurs do not agree with the provision of financial and
raw material supports given through TVETs. The means (1.84) and (1.79) and standard
deviations (1.37) and (1.49) clearly depict that supporting women entrepreneurs in MSEs
financially and raw material wise is not common. Nevertheless, the respondent women
entrepreneurs agree with a mean (3.88) and (3.65) and standard deviation of (1.37) and
(1.49) that technology and facility supports are given to them by TVETs.

To conclude, the overall supports given to women entrepreneurs in MSEs through
TVETs is below average as the grand mean (2.61) and grand standard deviations (0.23 )
in the table show.
4.1.6 Co operations among MSEs, TVETs and Micro Finances
When MSEs come in to idea, it was targeted to use them as main tools in reducing
poverty through the cooperative efforts of TVETS, micro finances and municipalities as
the interview conducted with heads of MSEs, TVET leaders and micro finance managers
indicate. It was designed that MSEs-to perform the recruitment and selection of
entrepreneurs in MSEs; TVETs -to provide the necessary trainings to the selected
entrepreneurs; micro finances- to give financial supports and municipalities -to make
premises(land) available to them.

In order to achieve these shared responsibilities, a common string committee that
includes members from all (college dean, municipality mayor, MSEs Process owner and
micro finance manager) was formed. As the interview results show, the committee has a
regular meeting period; plan tasks together and follow up their achievement jointly.


55

However, when that come in to practice, a lot of problems were faced associated with
different internal and external factors from all stakeholders. As discussed in table 3
women entrepreneurs have no their own premises (land) to run their business. This seems
a problem observed from the side of the municipalities as it is its responsibility. The table
also shows that the financial access of the respondents is weak. This problem is
associated with micro finances in that financial arrangements are their responsibilities. In
relation to the training supports given by TVETs, still is not satisfactory and focus on
some technical aspects rather than including business matters too.

The MSEs work process owner complain that trainees will not acquire the required
trainings from TVETs .He states reasons such as shortage of trainers, trainers overloads
and lack of incentives given to them as main ones. In addition shortage or raw materials,
machines and budget problems are stated as reasons by the process owner. Because of
these, the process owner added our trainees are forced to return back before completing
and sometimes at the beginning of the training sessions. For this, the dean of W/ro Siheen
College of TVET responds that it is a problem of attitudinal change among teachers by
associating everything with incentives.

Similarly, the interview conducted with the dean shows that there were problems in
recruiting and selecting candidates for training in the side of MSEs. The dean stressed
that proper selection mechanisms were not used in screening the candidates. They faced
problems such as screening the same trainees for different training programs at different
times even though there are others waiting for their turn. The dean also added that
disciplinary problems were observed among the trainees. In their criteria of screening, the
dean commented that MSEs use of one kebele system (cooperative member trainees
should be from one/same kebele) and limiting the minimum number of cooperative
member in to 10 are the reason for the occurrence of such a problem. These problems are
also reflected in borrowing money from micro finances.

With regard to financial matter, an interview conducted with Dessie micro finance
manager shows that, those women entrepreneurs organized by MSEs have problems in
56

returning what they have borrowed. Because of this the manager added they are forced to
stop lending to women entrepreneurs in MSEs. As the manager pointed out if collection
capacity of the institute is below 70%, the national bank will not allow the money to lend
to such “risky borrowers”-what the manager call them. In addition, since these
entrepreneurs do not have fixed assets that serve as a collateral, group lending system is
used. The problem with such a system is that one is an agent for the other; in that
members in a group will be responsible for problems created by any of the members in
the group. The manager complained that they observe even borrowers that hide
themselves after taking the money.
4.2 Discussion

Birley (1987) found that the background and personal characteristics of women
entrepreneurs in MSEs in that they are from a middle or upper class family, the daughter
of a self employed father, educated to degree level, married with children, forty to forty-
five at start-up and, with relevant experiences.

In support of Birley’s findings, women entrepreneurs in MSEs are daughters of self
employed father and are married. The fact that these entrepreneurs are daughter of self
employed father shows that women entrepreneurs in MSEs are not significant in number
in the business arena. This is because the number of respondents having a self employed
mother or sister is insignificant. By the same logic, it is also possible to guess from the
fact that women entrepreneurs are married that they may have conflicting gender roles
such as keeping kids since in our country context most of these responsibilities are left to
women.

However, the idea that these entrepreneurs are from a middle or upper class, educated to
degree level, forty to fort five at the start up and having the relevant experiences
contradict with the Birley’s findings. Of course, his findings may work in most developed
countries. Their total applicability in developing countries like Ethiopia is questionable.

57

One can reach to the conclusion that women entrepreneurs in Dessie are not from a
middle or upper class. This is because, had these entrepreneurs be from such a family,
they would not have seen starting own business as a last resort. Similarly, the maximum
educational level that these entrepreneurs reach is 8
th
grades. This shows that the
entrepreneurs run their business by common sense than supporting it with scientific
principles. Regarding their age and experience, it is also possible to deduce that women
entrepreneurs in MSEs in Dessie are in the age categories of 31-40 and join the business
without adequate experiences. This implies women entrepreneurs in MSEs in Dessie
town are youngsters and within the productive age that can contribute a lot for their
performance. However, the fact that they are less experienced in their areas of work may
negatively affect their performance.

In relation to family size, even though Shane (1997) and ILO (2003) found that women
entrepreneurs have an average larger family size, this study found that the majority
women entrepreneurs have a family size of less than 3 which is even less than the average
family size in Ethiopia that is 4.8(CSA, 1995).This is contradictory and needs further
investigation.

It is discussed above that women entrepreneurs are married, have no self employed
mother/sister, have low educational background and are not experienced in business. All
these can lead to the conclusion that, the personal characteristics of these entrepreneurs
can contribute to their low performance in addition to the economic, social, and
legal/administrative factors.

UNECE (2004) reported that MSEs have a better employment opportunity than even that
of larger ones. As this study shows, most women entrepreneurs in MSEs in Dessie are
engaged in the production sector and employ more than 15 individuals within them.
Hence, the finding matches with the report. Similarly, the entrepreneurs are organized
under cooperatives and use micro finances as main sources of funding. This shows the
production sector is increasing at an alarming rate and opens an opportunity of
employment to a large number of individuals. Besides this, the openings of Micro
58

finances allow women to be organized under cooperatives for the purpose of acquiring
finance even without collaterals. Cooperatives give these entrepreneurs an opportunity of
sharing skills, knowledge and experiences for one common goal which is organizational
success (Hisrich, 2005).

World Bank (2005), ILO (2003),Samiti (2006), Tan (2000) and SMIDEC(2004)
addressed that women entrepreneurs in MSEs are affected by a number of economic,
social/cultures and legal/administrative factors. Some of the findings of this study go in
line with these and some others go against.

The performance of women entrepreneurs in MSEs in Dessie town are highly affected by
economic factors such as lack of own premises (land), financial problems, stiff
competition in the market, inadequate access to trainings, lack of technology and raw
material.

In contrast to the findings of World Bank, ILO Samiti, Tan and SMIDEC, this study
found that infrastructures and access to information are not problems of women
entrepreneurs in MSEs in Dessie town. This may be attributed to different reasons. First,
since the study is conducted in Dessie town, these problems may not be observed as
compared to women entrepreneurs in rural areas. Secondly, since the studies were done
some years before, certain changes may be seen in between.

With regard to socio-cultural conditions, conflicting gender roles, lack of social
acceptability and network with outsiders are the Sever factors that affect women
entrepreneurs in Dessie. However, class biases, gender inequalities, attitude of employees
towards the business and harassments are not problems of entrepreneurs in the town in
contrast to other researcher’s findings. Besides to the above justifications, the reasons for
such changes may be better access to media and other facilities that may change the
society’s attitude.

59

In relation to legal/administrative issues, network with administrative bodies, access to
policy makers, amount of tax and interest rate charged, bureaucracies and red tapes and
the overall legal and administrative environmental factors are the serious problems of
women entrepreneurs in MSEs in the town. But, issues related to government incentives,
legal, instructional and policy constraints, assistance and support from government bodies
and request of collateral for borrowing money are not found to be problems of women
entrepreneurs in MSEs. This highlights that there are some beginnings in encouraging
women entrepreneurs in MSEs even though this is not believed to be satisfactory.

From the major factors that affect the performance of women entrepreneurs in MSEs, the
impact of the economic environment is significant even though the influence of social
factors is minimal. This implies, the impact of globalization is reflected in women
entrepreneurs in MSEs; but the attitude of the society towards women entrepreneurs
seems to be relatively changed.

The supports that TVET institutes/colleges provide to women entrepreneurs in MSEs are
stronger in the areas of technology, machines, technical skill trainings, facility supports,
and machine maintenance trainings. In the contrary, marketing trainings, plan and
reporting trainings, entrepreneurship trainings, financial supports, machine gifts, raw
material supports and customer service trainings are weak. This indicates that TVETs are
emphasizing on technical trainings. They do not give a comparable value to business
trainings and other supports.

Therefore it is possible to conclude that, even though the establishments of different
municipality services, TVETs, MSEs and micro finances institutions/college are seen in
different towns, the problems identified in this research shows that all are not doing what
is expected of them. That is the municipalities in providing working premises (land), the
TVETs in training entrepreneurs, the micro finances in providing financial supports, and
MSEs in recruiting and selecting the youth. All these are joint responsibilities among
these stakeholders in bringing women entrepreneurs in MSEs in to high performance.
That is why the researcher concludes that much is not done in this regards.
60

CHAPTER FIVE
SUMMARY, CONCLUSION AND
RECOMMENDATIONS
In this chapter, the major findings are summarized; conclusions are drawn based on the
findings and recommendations are forwarded for the concerned bodies.
5.1 Summary

In this study, it was designed to assess the factors that affect the performance of women
entrepreneurs in MSEs .It was also tried to address the characteristics of women
entrepreneurs in MSEs and their enterprises and the supports they acquire from TVET
colleges/institutes. A sample of 203 women entrepreneurs engaged in 5 sectors was taken
for the study using stratified and simple random sampling. In the process of answering
the basic questions, a questionnaire that include demographic profiles, characteristics of
women entrepreneurs and their enterprises, factors that affect the performance of women
entrepreneurs in MSEs and supports MSEs acquire from TVETs was designed in a closed
ended and likert scales. Moreover, structured interviews were held with top officials of
MSEs, micro finances and TVET educators. After the data has been collected, it was
analyzed using simple statistical techniques (tables and percentages) and descriptive
statistics (mean and standard deviations).Based on 197 respondents and interview results
acquired from the concerned officials, the major findings of this study are summarized as
follows.
• Most of the respondent women entrepreneurs are under the age category of
31-40 (40.1%) and educational level of 5
th
-8
th
grades (27.92%) with a
working experience of 1-5 years (46.19%) and their marital status are married
(45.18%).
• Majority of the respondents have a family size of less than 4 (51.27%);
engaged in the production sector (54.31%); hire more than 15 employees
within their organization (64.17%) and the legal ownership establishment of
their enterprises is in the form of cooperatives (75.13%). Moreover, majority
of the respondents start their own business for the reason that they have no
61

other alternatives (52.79%).Similarly, most of these respondents start their
own business by their own initiation and acquire the necessary skills through
formal trainings (56.35%). Besides this, they have no entrepreneurial family
(70.05%). Of those that have an entrepreneurial family, most of them have a
self employed father (40.68%). The main source of startup fund for majority
of the respondents is micro finances (77.66%).
• The major economic factors that affect women entrepreneurs in MSEs
according to their severity order are lack of own premises or land
( X =1.92&s.d=1.28), lack of financial access ( X =1.93&s.d=1.34), stiff
competition in the market, ( X =2.12 & s.d=1.14), inadequate access to
training, lack of access to technology, and raw materials. Infrastructure
problems ( X =3.59& s.d=1.37), and access to information ( X =3.69 &
s.d=1.38) are not serious economic problems for these entrepreneurs.
• The major socio-cultural factors that affect the respondent women
entrepreneurs in MSEs in Dessie town according to their severity order are
Conflicting gender roles ( X =2.02 & s.d=1.21), Social acceptability and
Contact (network) with outsiders ( X =2.08 & s.d=1.13). However, prejudices
or class biases ( X =3.48 & s.d=1.32), gender inequality ( X =3.55 &
s.d=1.43), attitude of employees to the business ( X =3.62 & s.d=1.4),
harassments and relationship with the workforce are not as such problems that
affect the performance of women entrepreneurs.
• The major legal and administrative factors that affect the respondent women
entrepreneurs in MSEs according to their severity order are lack of network
with administrative bodies( X =1.85 & s.d=1.23), access to policy
makers( X =1.9 & s.d=1.28), amount of tax levied( X =1.93 & s.d=1.29),
interest rate charged, bureaucracies and red tapes, over all legal and regulatory
environments. Nevertheless, government incentives, legal, institutional and
policy constraints, assistant and support from government bodies and request
of collaterals are not problems.
62

• Of the major factors that affect the respondent women entrepreneurs in MSEs,
economic factors take the leading position (grand X =2.49 &grand s.d = 0.1)
followed by legal/administrative (grand X =2.59 &grand s.d = 0.06) and
socio/cultural factors (grand X =3.18 &grand s.d = 0.12) respectively.
• The supports that women entrepreneurs in MSEs acquire through TVET
according to their degree of support include: technology support ( X =3.88 &
s.d = 1.37), machine maintenance service ( X =3.85 & s.d = 1.37), technical
skill trainings, ( X =3.74 & s.d =1.45) facility supports and machine
maintenance trainings. But supports in the areas of marketing trainings
( X =1.96 & s.d = 1.16), plan and report preparation trainings( X =1.93 & s.d
= 1.15), entrepreneurship trainings( X =1.87 & s.d = 1.08), financial supports,
machine supports(gifts),raw material supports and customer service trainings
are relatively weaker.
• The cooperation among MSEs, TVETs, micro finances and municipalities is
very weak as the interview results show.
5.2 Conclusion

The characteristics of women entrepreneurs in MSEs of Dessie town shows that they
have no entrepreneurial family, they take entrepreneurship as a last resort and others.
From this, it is possible to infer that the entrepreneurship trainings is not given to women
entrepreneurs in the town; or even though it is given, it may focus on theoretical concepts
than deep-rooted practical trainings. Or even if it is delivered practically, attention might
not be given by women entrepreneurs. Even if this is the case, women entrepreneurs in
MSEs still contribute for the countries development. MSEs are becoming an important
area of emphasis for many developing countries in general and to Ethiopia in particular,
primarily for its immense potentials as a source of employment given that there are a
number of factors that affect their performance.

Even though socio-cultural factors are minimizing in towns like Dessie, economic and
administrative challenges are still tremendous. This can be associated with the effects of
63

globalization that may create intense competitions in the market and poor performances
for those entrepreneurs that cannot easily cope up with changes.

For the MSE sector to be vibrant and serve as a springboard for the growth of a strong
private sector in Ethiopia a TVET system that supplies disciplined and quality workforce
can be considered as one of the necessary conditions. A country with poor human capital
has the least chance to develop even if huge capital outlays are invested in all other
productive sectors. The production of trained workforce is as important or even may be
more important than the production of goods and services. Whatever is produced in the
economy to be competitive, both in the domestic and international markets, depends on
the quality of the productive workforce the country has. This obviously calls for a TVET
system that supplies the business sector and/or the whole economic system with a quality
workforce that efficiently uses and produces resources.
5.3 Recommendations

Based on the findings of the study, the necessary recommendations are forwarded to
existing and potential entrepreneurs, to MSEs, Micro Finances Institutes and TVET
Institutions.

To existing and potential women entrepreneurs in MSEs:

Even though entrepreneurship is not free of risks, existing and potential entrepreneurs
should not see it as a last resort. This is because starting own business creates sense of
independence, flexibility and freedom; make own boss, give time and financial freedoms.
Besides this, in the time of globalization, it would be unthinkable to get jobs easily
because of the serious competition throughout the world. Moreover, to tackle the
different economic, social/cultural and legal/ administrative bottlenecks they face,
women entrepreneurs should make lobbies together to the concerned government
officials by forming entrepreneurs associations. Besides this, women entrepreneurs in
MSEs should search for other alternative supporting agents rather than relaying only on
TVET institutions, micro finances and MSEs offices in improving their performance and
solving problems. For example, they should also approach known individual
64

entrepreneurs, NGOs, banks and other supporting organizations. Lastly, Women
entrepreneurs in MSEs of the town should share experiences with other entrepreneurs in
other towns and regions so that they can learn a lot from best practices of those
entrepreneurs.

To MSEs heads:
MSEs Heads should design a different screening mechanism while selecting candidates
rather than using “one kebele member system”. Besides this, the minimum number of
members to form a cooperative should also be revised. Being in one/the same kebele
should not be a criterion to form a cooperatives association, rather members’ skill
compositions, their ethical attitudes and commitment to work should also be taken in to
account. Furthermore, keeping the minimum number of members to form an association
in to 10 is not reasonable, because what matters in not their number rather their
willingness and their relationship among themselves should also be considered. MSEs
should also discuss with municipalities and other administrative bodies to make women
entrepreneurs owners of working premised(land).They should also arrange mechanisms
through which women entrepreneurs in MSEs can easily access administrative bodies and
policy makers so that they can be beneficiaries of different governmental incentives such
as tax exemptions, decreasing interest rates on loans etc.

To Micro finances:
Micro finance institutes should change the practice of “group lending system” since
members in a group cannot have the same thinking level, attitude and commitment as
there are personal differences. Hence institutes should allow individual lending systems.
Micro-finances should also minimize the interest rates that they charge to women
entrepreneurs in MSEs so as to strengthen their entrepreneurial sprit. In addition Credit
services need to be reviewed in order for them to be accessible to small enterprises with
limited capacity. This has yet to be achieved despite the proliferation of microfinance
institutions alongside the MSE strategy. The procedures for securing loans must be
simplified or greater support offered by the lenders to support SMEs. Some microfinance
65

institutions also need to be sensitized to the nature of SMEs and the sustainability of their
businesses.
46
To TVET educators:
Even though technical skills trainings are of great importance to eat “breads”, it should be
supplemented with business trainings to improve the “breads” in to “cakes”. Hence
TVET institutions/colleges should provide both technical and business trainings to MSEs
so that these entrepreneurs can with stand competitions, develop entrepreneurial sprits,
improve managerial skill in such a competitive world.TVET institutes/colleges should
also be involved the recruitment and selection of candidates rather than making it as a
sole responsibility of MSEs. Besides that entrance exams should be given to candidates to
proactively avoid unnecessary costs by receiving individuals with poor attitudes.

















66

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APPENDICES





















71

APPENDIX A

BAHID DAR UNIVERSITY
DEPARTMENT OF EDUCATIONAL PLANNING AND
MANAGEMENT
GRADUATE PROGRAM IN TVET MANAGEMENT

This questionnaire is designed to investigate “the factors that affect women
entrepreneurs’ performance in MSEs.”The researcher kindly reminds the respondents
(Women entrepreneurs in MSEs) that the response given by them will be used only as an
input for the research work. In addition the researcher would like to be grateful to the
respondents the sacrifices they paid in completing this questionnaire.
Note:
No need of writing your name
PART 1: DEMOGRAPHIC INFORMATION
1. Age A. Below 20 Years c. 31-40
B. 21-30 Years d. Above 40
2. Level of education and training
A. Can’t read and write
B. Grades1-4
C. Grades 5-8
D. Grades 10 complete
E. 10+1 &10+2
F. 10+3 /diploma
G. BA/BSC and above
3. Work experience
A. Less than 1 years
B. 1-5 years
C. 6-10 years
D. Greater than 10 years
72

4. Marital status
A. Married
B. Single
C. Divorced
D. Widowed
PART 2: CHARACTERSTICS OF WOMEN ENTREPRENEUNERS IN MSEs
AND WOMENN OWENED ENTERPRISES
5. Family size
A. Less than 3
B. 4-5
C. More than 5
6. What sector is your business in?
A. Trade
B. Production
C. Services
D. Hand-craft
E. Other (specify) _____________________________________________
7. Number of employees in the enterprise?
A. Less than 5
B. 6-10
C. 11-15
D. more than 15
8. What is the legal ownership status of the establishment?
A. Sole ownership
B. Joint ownership
C. Family business
D. Cooperative
E. Other (specify) __________



73

9. Why did you prefer to start your own business?
A. Family tradition D. Small investment is required
B. To be self-employed E. No other alternative for incomes
C. Brings high income F. Others (Specify) ----------------
10. Who initialed and started the business?
A. Myself alone C. With the family
B. With a friend/partner D. other (specify)
11. How did you acquire the skill for running your enterprise?
A) Through formal training B ) From past experience
C) From family C) other (specify)
12. Is there anyone in the family who was entrepreneur or owner of some related
business activities? A) Yes B) No
13. If yes, what is your family relation with him/her?
A) Father B) Mother C) Brother
D) Sister E) Grandfather
F) Grandmother G) Husband H) Other (specify)
14 What was your main source of start-up funding?
A. Personal saving
B. household
C. Borrowed from relatives or friends/money lenders
D. Micro-finance institutions
E. Equb
F. Assistant from friends/relatives
G. Inheritance
H. Borrowed from Bank
I. Assistant from NGO’s
J. Others (specify) _________________________



74

PART 3: FACTORS AFFECTING WOMEN ENTREPRENEURS’
PERFORMANCE IN MSEs.
The major factors that affect women entrepreneurs’ performance in MSEs are listed
below. After you read each of the factors, evaluate them in relation to your business and
then put a tick mark (√) under the choices below.
5=strongly agree 4=agree 3=undecided 2=disagree 1=strongly disagree
No. Item Agreement Scale
15 Economic factors 1 2 3 4 5 remark
15.1 I am satisfied with the financial access given by
micro finances and other lending institutions.

15.2 I have access to market for my products
15.3 A have access to different business trainings
15.4 I have my own premises (land) to run my business
15.5 I have an access to information to exploit business
opportunities

15.6 I have managerial skills
15.7 I have access to necessary technologies
15.8 There is no stiff competitions in the market place that
I am engaged in.

15.9 Adequate infrastructures are available
15.10 I have access to necessary inputs(raw materials)
16 Social factors
16.1 I have a better of social acceptability
16.2 I have a better contacts(networks) with outsiders
16.3 I have no prejudice or class biases
16.4 The societies attitude towards my products/services
is positive

16.5 The attitude of other employees towards my business
is positive

16.6 I have a positive relationship with the workforce
75

16.7 I have no conflicting gender roles
16.8 I am not affected by gender inequalities
16.9 I have no cultural influences
16.10 I never encounter harassments in registering and
operating my business


No. Item Agreement Scale
17 Legal and administrative factors 1 2 3 4 5 remark
17.1 I have business assistants and supporters from
government bodies

17.2 I have a network with different administrative bodies
17.3 I have access to policy makers
17.4 I have no legal, institutional and policy constraints
17.5 I can borrow money even without titled assets as a
collateral

17.6 Interest rate charged by micro finances and other
lending institutions in reasonable

17.7 I have never encountered bureaucracies and red tapes
17.8 I am beneficiary of government incentives
17.9 I have never faced unfavorable legal and regulatory
environments

17.10 the tax levied on my business is reasonable









76

Part 4: Support areas of TVETs to MSEs
The following are cooperation areas between MSEs and TVET, read each of the areas
and evaluate your business against the points and put a tick mark (٧) for your choice.

Item Agreement Scale
18 Support areas of TVETs to MSEs 1 2 3 4 5 remark
18.1 Training support
18.1.1 I have got entrepreneurship training from TVETs
18.1.2 I have got marketing training from TVETs
18.1.3 I have got planning and financial reporting training
from TVETs

18.1.4 I have got machine maintenance training from
TVET

18. 1.5 I have got customer service training from TVETs
18.1.6 I have got technical skill training from TVETs
18.2 Machine support
18.2.1 I have got machine maintenance service from
TVET

18.2.2 I have got machines support(gifts) from TVETs
18.3 I have got Financial supports
18.4 I have got Technology supports
18.5 I have got Raw material supports
18.6 I have got Facility an furniture supports








77

APPENDIX B

BAHIR DAR UNIVERSITY
POST GRADUAT PROGRAM
MA IN TECHNICAL AND VOCATIONAL EDUCATION MANAGEMENT

Interview Questions with MSE heads
1. What problems did you face while running MSEs in relation to:
A) Economic factors
· Market
· Finance
· Technology
· Infrastructure
· Training
· Raw material & other
B) Social factors
· Public acceptance
· Attitude toward women owned businesses
· Relationship with suppliers, customers and others
C) Legal and Administration factor
· Government policy
· Bureaucracies (in relation to licensing, taxation etc.)
· Women Support
2) Your cooperation with
· Micro finances
· TVETs
3) What other problem did you face?
4) What measures did you take to solve the problems you faced?



78

APPENDIX C

BAHIR DAR UNIVERSITY
POST GRADUAT PROGRAM
MA IN TECHNICAL AND VOCATIONAL EDUCATION MANAGEMENT

Interview Questions with micro finance heads

1. Is there a special financial support that you give for women entrepreneur?
2. What problem did you face is relation to
• borrowing and
• lending
• Collaterals.
3. What measure did you take to solve the problem you faced?
4. What is your cooperation with
· TVET
· MSEs.














79

APPENDIX D

BAHIR DAR UNIVERSITY
POST GRADUAT PROGRAM
MA IN TECHNICAL AND VOCATIONAL EDUCATION MANAGEMENT

Interview Questions with TVET leaders
1. How do you explain the relationship you have with SMEs?
• Do you have regular meeting periods?
2. What are the areas of support you have with TVET leaders
• Finance
• Training
• Technology
• Raw materials
• Training and others
3. What problem did you face to work jointly with TVET
4. What measures did you take to solve the problems you faced
5. How is your relationship with Micro finance and MSEs and others













80

APPENDIX E

¾vI` Ç` ¿’>y`e+ ¾vI` Ç` ¿’>y`e+ ¾vI` Ç` ¿’>y`e+ ¾vI` Ç` ¿’>y`e+
¾ƒ/`ƒ °pÉ ¾ƒ/`ƒ °pÉ ¾ƒ/`ƒ °pÉ ¾ƒ/`ƒ °pÉ“ ““ “ ›e}ÇÅ` ƒ/ƒ ¡õM ›e}ÇÅ` ƒ/ƒ ¡õM ›e}ÇÅ` ƒ/ƒ ¡õM ›e}ÇÅ` ƒ/ƒ ¡õM
¾ÉI[ U[n ýaÓ^U ¾ÉI[ U[n ýaÓ^U ¾ÉI[ U[n ýaÓ^U ¾ÉI[ U[n ýaÓ^U
ÃI SÖÃp uØnp”“ ›’e}— }sTƒ LÃ ¾}cT\ ¾c?ƒ ’ÒÈ−‹
ÁÒÖT†¨<” ‹Óa‹ KSÇce ¾}²ÒË ’¨<:: uSJ’<U SÖÃl KØ“~ ›LT
w‰ ¾T>¨<M SJ’<” uSÑ”²w uØ”no ”Ç=VK<M˜ uƒIƒ“ ÖÃnKG<::
KT>Å[ÓM˜ ƒww` upÉT>Á ŸõÁK UeÒ“¾” ›k`vKG<::

Tdcu=Á :- uSÖÃl Là eU Síõ ›ÁeðMÓU::

¡õM 1: ›ÖnLÃ S[Í ¡õM 1: ›ÖnLÃ S[Í ¡õM 1: ›ÖnLÃ S[Í ¡õM 1: ›ÖnLÃ S[Í
1. ÉT@ G. Ÿ20 ¯Sƒ u‹ N. 37 - 40 ¯Sƒ
K. 21 - 30 ¯Sƒ S. Ÿ40 ¯Sƒ uLÃ
2. ¾ƒ/ƒ Å[Í
G. T”uw“ Síõ ÁM‰K‹ W. 10 + 1 “ 10 + 2
K. Ÿ1 - 4 ¡õM [. 10 + 3 /Ç=ýKAT
N. Ÿ5 - 8 ¡õM c. ßh/ ßhnù LS ß^)
S. 10 ¡õM ÁÖ“kk‹
3. ¾e^ MUÉ
G. Ÿ1 ¯Sƒ u‹ N. 6 - 10 ¯Sƒ
K. 1 -5 ¯Sƒ S. Ÿ10 ¯Sƒ uLÃ
4. ¾Òw‰ G<’@
G. ÁÑv‹ N. ›Ów ¾ð‹
K. ÁLÑv‹ S. vLD uVƒ ¾}KÁƒ
¡õM ¡õM ¡õM ¡õM - -- -2 22 2- -- - ¾c?ƒ ’ÒÈ−‹“ ¾}sV‰†¨< vI`Áƒ ¾c?ƒ ’ÒÈ−‹“ ¾}sV‰†¨< vI`Áƒ ¾c?ƒ ’ÒÈ−‹“ ¾}sV‰†¨< vI`Áƒ ¾c?ƒ ’ÒÈ−‹“ ¾}sV‰†¨< vI`Áƒ
5. ¾u?}cw SÖ”
G. Ÿ3 u‹
K. Ÿ 4 - 5
N. Ÿ5 ß^)

81

6. ¾}cT\uƒ ¾e^ Se¡/²`õ/
G. ”ÓÉ S. iS“
K. U`ƒ W. K?L "K
N. ›ÑMÓKAƒ
7. uÉ`Ï~ ¨<eØ }kØ[¨< ¾T>c\ c^}™‹ lØ`
G. Ÿ5 u‹
K. Ÿ6 - 10
N. Ÿ15 uLÃ
8. ¾É`Ï~ IÒ© Ue[ U”É” ’¨<
G. ¾ÓM S. ¾TIu`
K. ¾Ò^ W. K?L "K
N. ¾u?}cw
9. ¾^e−” É`σ KS¡ðƒ ¾ðKÑ<ƒ KU”É” ’¨<;
G. ¾u?}cw MUÉ eKJ’ N. Ÿõ}— Ñu= eKT>Áeј
K. ¾^c? e^ KSõÖ` õLÔƒ eK’u[˜ S. K?L ›T^ß eKK?K˜
W. K?L "K
10. É`Ï~” KTssU “ KSËS` Á’dd−ƒ T” ’¨<;
G. ^c? N. ÕÅ—
K. u?}cw S. K?L
11. É`Ï~” KSU^ƒ ¾T>eðMÓ−ƒ” ¨<kƒ/¡IKAƒ/ ÁÑ–<ƒ Ÿ¾ƒ K¨<;
G. Ÿƒ/u?ƒ (ŸeMÖ“ }sU) N. ŸMUÉ
K. Ÿu?}cw S. K?L
12. uu?}cw− ¨<eØ e^ ð×] ¾J’ c¨< ›K;
G. ›K K. ¾KU
13. SMe−ƒ G ŸJ’ ´UÉ“¨< U”É” ’¨<;
G. ›vƒ S. Iƒ
K. “ƒ W. ¨”É ›Áƒ c. c?ƒ ›Áƒ
N. ¨”ÉU [. vM g. K?L
14. e^−ƒ” KSËS` ¾}ÖkS<uƒ ª“ ¾Ñ”²w U”ß U”É” ’¨<;
G. ¾ÓM lÖv W. ŸÕÅ— ÉÒõ /eف/
K. Ÿu?}cw eف [. ¨<`e
N. ŸÕÅ— wÉ` c. ¾v”¡ wÉ`
S. lw g. S”Óe© "MJ’ É`σ k. K?L
82

¡õM 3 . uc?ƒ e^ ð×]−‹ ¾e^ ”penc? ¡õM 3 . uc?ƒ e^ ð×]−‹ ¾e^ ”penc? ¡õM 3 . uc?ƒ e^ ð×]−‹ ¾e^ ”penc? ¡õM 3 . uc?ƒ e^ ð×]−‹ ¾e^ ”penc? Là }î°• ¾T>ÁdÉ Là }î°• ¾T>ÁdÉ Là }î°• ¾T>ÁdÉ Là }î°• ¾T>ÁdÉ\ \\ \
Ñ<ÇÄ‹ Ñ<ÇÄ‹ Ñ<ÇÄ‹ Ñ<ÇÄ‹
Ÿ²=I kØKA uc?ƒ e^ ðÖ^−‹ Là }î°• ÁdÉ^K< }wK¨< ¾T>Öul Ñ<ÇÄ‹
}²`´[ªM:: ¾Á”ǔƔ }î°• ŸÉρ¨< ’v^© G<’@ Ò` uTÁÁ´
KU`Ý−ƒ ¾// UM¡ƒ uTÉ[Ó ULi ÃeÖ<::
5. u×U eTTKG< 3. KS¨c” †Ñ^KG<
4. eTTKG< 2. ›MeTT 1. u×U ›MeTTU
}.l

Ñ<ÇÄ‹
¾eUU’ƒ
Å[Í
(SÖ”)
15 15 15 15 - -- - U×’@ Gw© Ñ<ÇÄ‹ U×’@ Gw© Ñ<ÇÄ‹ U×’@ Gw© Ñ<ÇÄ‹ U×’@ Gw© Ñ<ÇÄ‹ 1 2 3 4 5

U`S^
15.1 Ønp” “ ›’e}— ¾wÉ` }sTƒ ”Ç=G<U K?KA‹ }sTƒ
uT>cÖ<ƒ wÉ` [¡‰KG<::

15.2 ¾U`‚(›ÑMÓKA‚) ¾ÑuÁ G<’@ Ø\ ’¨<::
15.3 e^” KSU^ƒ ¾T>Áe‹K˜” eMÖ“ ›Ó˜‰KG<::
15.4 ¾”ÓÉ ›Ò×T>−‹” KSÖkU ¾T>Áe‹K˜ um S[Í ›K˜ ::
15.5 ¾^c? ¾J’ ¾”ÓÉ x ›K˜::
15.6 ¾›e}ÇÅ` ‹KA ›K˜::
15.7 ›eðLÑ> ¾‚¡•KAÍ=−‹ ›p`xƒ ›K˜::
15.8 uÑuÁ LÃ Ö”"^ ¾J’ ñ¡¡` ¾KU::
15.9 ›eðLÑ> ¾J’< Sc[} MT„‹(”Ũ<G'Sw^ƒ...)
}TEM…M::

15.10 ¾Ø_ °n ‹Ó` ¾Kw˜U::
16 16 16 16 - -- - TIu^© Ñ<ÇÄ‹ TIu^© Ñ<ÇÄ‹ TIu^© Ñ<ÇÄ‹ TIu^© Ñ<ÇÄ‹
16.1 uIw[}cu< ²”É Ø\ }kvÃ’ƒ ›K˜::
16.2 Ÿ¨<ß Ò` ¾}hK ƒww` ›K˜::
16.3 ¾Ôd /¾u<É” /›ÉKA ¾Kw˜U::
16.4 Iw[}cu< K’@ U`ƒ Á¨< ›SK"Ÿƒ Ø\ ’¨<::
16.7 uc?ƒ’‚ K?KA‹ }Å^^u= ¾ï GLò’„‹ ¾K<w˜U::
16.8 ¾ï ›ÉKA ¾Kw˜U::
16.9 ¾vIM }î°• ¾Kw˜U::
16.10 ¾ðnÉ “ ¾SdcK< ¾›e}ÇÅ^© Ñ<ÇÄ‹” KTeðìU ¾ï
83

uÅM Å`fw˜ ›Á¨<pU::
17 17 17 17 - -- - IÒ©“ ›e}ÇÅ^© Ñ<ÇÄ‹ IÒ©“ ›e}ÇÅ^© Ñ<ÇÄ‹ IÒ©“ ›e}ÇÅ^© Ñ<ÇÄ‹ IÒ©“ ›e}ÇÅ^© Ñ<ÇÄ‹
17.1 ŸS”Óeƒ ›"Lƒ ¾T>Å[ÓM˜ ÉÒõ Ø\ ’¨<::
17.2 ŸS”Óeƒ ›"Lƒ Ò` ÁK˜ ƒww` Ø\ ’¨<::
17.3 ŸþK=c= ›¨<ß−‹ Ò` ÁK¨< p`uƒ Ø\ ’¨< ::
17.4 u”penc? Là ÁÒÖS<˜ IÒ© }sT©“ þK=c=Á© T°kx‹
¾K<U::

17.5 TeÁ¹ ¾T>J” sT> ”w[ƒ vÕ[˜U Ñ”²w SuÅ`
‹LKG< ::

17.6 ›uÇ] }sTƒ ¾T>ÁeŸõK<ƒ ¾¨KÉ SÖ” }S×ט ’¨<::
17.7 Ñ<ÇÃ KTeðìU ÁK¨< ¨<× ¨<[É Ÿõ}— ’¨<::
17.8 ¾S”Óeƒ ØpT ƒpV‹” }ÖnT> ’˜::
17.9 ›ÖnLà ÁK¨< IÒ©“ ›e}ÇÅ^© G<’@ U‡ ’¨<::
17.10 uS”Óeƒ ¾T>×K¨< ¾Ów` SÖ” }S×ט ’¨<::

¡õM 4: ¡õM 4: ¡õM 4: ¡õM 4: uØnp”“ ›’e} uØnp”“ ›’e} uØnp”“ ›’e} uØnp”“ ›’e}— —— — }sTƒ Ÿ‚/S< }sTƒ ¾T>Å[ÓL†¨< }sTƒ Ÿ‚/S< }sTƒ ¾T>Å[ÓL†¨< }sTƒ Ÿ‚/S< }sTƒ ¾T>Å[ÓL†¨< }sTƒ Ÿ‚/S< }sTƒ ¾T>Å[ÓL†¨<
ÉÒõ ÉÒõ ÉÒõ ÉÒõ
Ÿ²=I kØKA ‚/S< }sTƒ KØnp”“ ›’e}— }sTƒ ¾T>ÁÅ`Ñ<ƒ” ÉÒõ
¾T>Ádà ¾ƒww` ’Øx‹ }²`´[ªM:: Ÿ`e− É`σ ›èÁ uSÑUÑU
U`Ý−ƒ” ¾// UM¡ƒ uTÉ[Ó SMe ÃeÖ<::
}.l Ñ<ÇÄ‹ ¾eUU’ƒ
Å[Í
(SÖ”)
18 18 18 18 ƒww` ’Øx‹ ƒww` ’Øx‹ ƒww` ’Øx‹ ƒww` ’Øx‹ 1 2 3 4 5

U`S^
18.1 18.1 18.1 18.1 ¾eMÖ“ ÉÒõ ¾eMÖ“ ÉÒõ ¾eMÖ“ ÉÒõ ¾eMÖ“ ÉÒõ
18.1.1 Ÿ‚/S</}sTƒ ¾e^ ðÖ^ eMÖ“ ›Ó˜‰KG<::
18.1.2 Ÿ‚/S</}sTƒ ÑuÁ ’¡ eMÖ“ ›Ó˜‰KG<::
18.1.3 Ÿ‚/S</}sTƒ ¾pÉ“ ]þ`ƒ eMÖ“ }cØ„—M::
18.1.4 Ÿ‚/S</}sTƒ ¾Si” ØÑ“ eMÖ“ }cØ„—M::
18.1.5 Ÿ‚/S</}sTƒ ¾Å”u— ›ÁÁ´ ( ›ÑMÓKAƒ) eMÖ“
}cØ„—M::

18.1.6 Ÿ‚/S</}sTƒ ¾‚¡’>¡ ÉÒõ }Å`ÔM—M::
84

18.2 18.2 18.2 18.2 ¾Ti” ÉÒõ ¾Ti” ÉÒõ ¾Ti” ÉÒõ ¾Ti” ÉÒõ
18.2.1 Ÿ‚/S< }sTƒ ¾Ti” ØÑ“ eMÖ“ ÉÒõ }Å`ÔM—M::
18.2.2 Ÿ‚/S< }sTƒ ¾Ti” ÉÒõ (eف)}Å`ÔM—M::
18.3 Ÿ‚/S< }sTƒ ¾Ñ”²w ÉÒõ }Å`ÔM—M::
18.4 Ÿ‚/S< }sTƒ ¾‚¡•KAÍ= ÉÒõ }Å`ÔM—M::
18.5 Ÿ‚/S< }sTƒ ¾Ø_ °n ÉÒõ }Å`ÔM—M::
18.6 Ÿ‚/S< }sTƒ ¾}KÁ¿ °n−‹ ÉÒõ }Å`ÔM—M::










85

APPENDIX F
Reliability test



S.D=Standard deviation
VR=VARIANCE AMONG RESPONDENTS
VQ=VARIANCE AMONG QUESTIONS
α = (
= %
Res.code
QUESTIONS SD VQ
1
3 4 2 5 1 2 1 2 1 5 3 4 2 5 1 5 1 2 1 2 1 5 3 4 2 1.5 2.3
2
2 2 4 4 1 1 2 1 1 1 2 2 4 4 1 4 1 1 2 1 1 1 2 2 4 1.2 1.3
3
1 3 5 4 1 1 4 1 1 5 1 3 5 4 1 4 1 1 4 1 1 5 1 3 5 1.7 2.9
4
1 5 1 3 2 5 5 1 1 2 1 5 1 3 2 3 2 5 5 1 1 2 1 5 1 1.7 2.9
5
2 1 2 2 2 4 3 2 2 5 2 1 2 2 2 2 2 4 3 2 2 5 2 1 2 1.1 1.3
6
4 1 1 1 2 1 2 3 1 2 4 1 1 1 2 1 2 1 2 3 1 2 4 1 1 1 1
7
3 1 2 2 3 1 1 2 2 2 3 1 2 2 3 2 3 1 1 2 2 2 3 1 2 0.7 0.5
8
1 2 2 1 4 2 1 2 1 1 1 2 2 1 4 1 4 2 1 2 1 1 1 2 2 0.9 0.8
9
2 4 1 4 1 1 3 2 3 2 2 4 1 4 1 4 1 1 3 2 3 2 2 4 1 1.1 1.2
10 2 2 1 5 2 1 2 3 5 1 2 2 1 5 2 5 2 1 2 3 5 1 2 2 1 1.4 2.1
S
D

0
.
9
9

1
.
4
3

1
.
3
7

1
.
5
2

0
.
9
9

1
.
4
5

1
.
3
5

0
.
7
4

1
.
3
2

1
.
7
1

0
.
9
9

1
.
4
3

1
.
3
7

1
.
5
2

0
.
9
9

1
.
5
2

0
.
9
9

1
.
4
5

1
.
3
5

0
.
7
4

1
.
3
2

1
.
7
1

0
.
9
9

1
.
4
3

1
.
3
7


1
6
.
4

V
R

0
.
9
9

2
.
0
6

1
.
8
8

2
.
3
2

0
.
9
9

2
.
1

1
.
8
2

0
.
5
4

1
.
7
3

2
.
9
3

0
.
9
9

2
.
0
6

1
.
8
8

2
.
3
2

0
.
9
9

2
.
3
2

0
.
9
9

2
.
1

1
.
8
2

0
.
5
4

1
.
7
3

2
.
9
3

0
.
9
9

2
.
0
6

1
.
8
8

6
9
.
5


86

APPENDIX G

Summary of Responses for the Likert Questions

Questions Economic Factors
R
e
s
p
o
n
s
e
s

1
5
.
1

1
5
.
2

1
5
.
3

1
5
.
4

1
5
.
5

1
5
.
6

1
5
.
7

1
5
.
8

1
5
.
9

1
5
.
1
0

1 105 48 68 106 26 47 77 62 22 69
2 56 55 77 45 36 64 63 91 32 78
3 0 18 17 18 19 28 16 13 12 8
4 14 29 17 9 66 38 24 18 69 25
5 21 46 17 18 49 19 16 12 61 16

Questions on Socio-cultural factors
R
e
s
p
o
n
s
e
s

1
6
.
1

1
6
.
2

1
6
.
3

1
6
.
4

1
6
.
5

1
6
.
6

1
6
.
7

1
6
.
8

1
6
.
9

1
6
.
1

1 65 76 14 36 27 0 86 25 27 20
2 90 75 47 35 20 40 62 31 8 11
3 14 10 22 15 21 2 18 20 19 36
4 30 72 119 124 140 97 69 102 97 46
5 13 19 57 47 67 75 12 69 91 83







Questions on supports between TVET and SMEs
R
e
s
p
o
n
s
e
s

1
8
.
1
.
1

1
8
.
1
.
2

1
8
.
1
.
3

1
8
.
1
.
4

1
8
.
1
.
5

1
8
.
1
.
6

1
8
.
2
.
1

1
8
.
2
.
2

1
8
.
3

1
8
.
4

1
8
.
5

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5 67 16 18 65 63 19 20 59 25 19
86

APPENDIX H



Declaration
Here with I, declare that, this paper prepared for the partial fulfillment of the
requirements for MA. Degree in Technical and Vocational Education Management
entitled” Factors Affecting the Performance of Women Entrepreneurs in Micro and
Small Enterprises in Dessie Town: A Case Study” is prepared with my own effort. I
have made it independently with the close advice and guidance of my advisor.
Mulugeta Chane Wube
Signature–––––––––––––––––––––––
Date –––––––––––––––––––––––––––

Certification

Here with I state that Ato Mulugeta Chane has carried out this research work on the topic
entitled ” Factors Affecting the Performance of Women Entrepreneurs in Micro and
Small Enterprises in Dessie Town: A Case Study” under my supervision. This work is
original in nature and has not presented for a degree in any university and it is sufficient
for submission for the partial fulfillment for the award of MA. Degree in Technical and
Vocational Education Management.

Adane Tesera (Asst.Prof.)
Signature –––––––––––––––––––––
Date ––––––––––––––––––––––––



FACTORS AFFECTING THE PERFORMANCE OF WOMEN ENTREPRENEURS IN MICRO AND SMALL ENTERPRISES (THE CASE OF DESSIE TOWN)

A Thesis Presented in Partial Fulfillment of the Requirements for Degree of Master of Arts in Technical and Vocational Education Management

By Mulugeta Chane Wube

BAHIR DAR UNIVERSITY FACULTY OF EDUCATION AND BEHAVIORAL SCIENCES DEPARTMENT OF EDUCATIONAL PLANNING AND MANAGEMENT

AUGUST 2010

department Graduate committee Date Signature ___________________________ Advisor _____________ Date ________________ Signature ___________________________ Internal examiner _____________ Date ________________ Signature ___________________________ External examiner _____________ Date ________________ Signature .BAHIRDAR UNIVERSITY DEPARTMENT OF EDUCATIONAL PLANNING AND MANAGEMENT FACTORS AFFECTING THE PERFORMANCE OF WOMEN ENTREPRENEURS IN MICRO AND SMALL ENTERPREISES IN DESSIE TOWN Approval of Board of Examiners ___________________________ _____________ ________________ Chair person.

I want to express my great thanks to Ato Tadele Getahun. this work would not have been come in to reality. Dessie women entrepreneurs in MSEs should be greatly praised for their zealous efforts in filling questionnaires. iv . my heartfelt thanks goes to my wife. my thanks extended to Ato Wondwossen Abi. Ato Tewodros. In addition.ACKNOWLEDGMENT This work comes in to end not only by the effort of the researcher but also the support of many individuals and organizations. process owner of Dessie MSEs. Ato Seid Mohammed and W/ro Sosina Tesfaye for providing printing services of different materials important for the thesis work.finance for devoting their time in providing necessary information for this research work. To begin with. Tigist Teka who helped me in writing the whole document besides her moral and financial support even during her pregnancy. my advisor. I would like to thank Ato Adane Tesera. Had it been without his support. Dean of W/ro Ssiheen College of TVET.and Ato Mohmed. Last but not least. Secondly. Moreover. manager of Dessie micro. for his constructive suggestions throughout my work.

.................4 Comparing the pros and cons of entrepreneurship................................5 1..........................................................................1 Background of the study.....................8 2.............................................. viii ABSTRACT .............12 2.......................................................................................................1 Meaning and definitions of entrepreneurship ..............4 Women entrepreneurs in Ethiopia ...................................1 An overview to entrepreneurship .......15 2.......2 Factors affecting the performance of women entrepreneurs in MSEs ......................22 2....1..........................................5 1..............................3 Objective of the study....................2 Statement of the problem ......................................................................1 1.......20 2......................................ix CHAPTER ONE: INTRODUCTION ....3 1...................................3...................................................................2............... iv TABLE OF CONTENTS ........................................3 Factors affecting women entrepreneurs’ performance ........................2.....................4 Significance of the study.................2.........................................1.....................................................................................................................................6 CHAPTER TWO: REVIEW OF RELATED LITERATURE ..........................9 2......................................................................5 1.............................TABLE OF CONTENTS Contents Page ACKNOWLEDGMENT ....................................................8 2............2 The benefits of entrepreneurship.....................................................................5 Delimitations of the study...............................................7 Definition of terms................. vii ACRONYMS ........................................................................................................................................................1..................................2 Differences between women and men entrepreneurs ................................................................24 v ..................................................14 2................17 2.................................3............1...v LIST OF TABLES........11 2.........................................6 1.........6 Limitations of the study ......................................................3 Factors affecting entrepreneurship ............10 2....2.....................................................................................3 Women entrepreneurs in SMEs..1 Benefits of women entrepreneurs in MSEs .14 2...1 Nature of women entrepreneurs .......22 2......................................................................1 1.....................2 Women entrepreneurship .................

............... CONCLUSION AND RECOMMENDATIONS .......1................2 Population..............................................................................................56 CHAPTER FIVE: SUMMARY.4 Women entrepreneurs in MSEs in Amhara Region ....70 vi ........................................1 Design of the study....................................35 CHAPTER FOUR: DATA PRESENTATION.................................5 Supports given by TVET institutions to women entrepreneurs in MSEs..33 3..............2 Characteristics of women entrepreneurs in MSEs and women owned enterprises .....1...................37 4...................3 Women entrepreneurs in MSEs in Ethiopia... 3 Data sources........62 5............................4 Comparison of factors that affect women entrepreneur’s performance in MSEs ....................................1 Demographic profile of respondents ....................................3 Recommendations ..... gathering instruments and procedures...........2 Conclusion .....33 3............ TVETs and Micro Finances..............................3...1 Presentation and analysis .................................................................54 4........60 5......28 2.........................................................60 5......................................................................................3 Factors affecting women entrepreneur’s performance in MSEs.....................1............................1.....37 4.........................................52 4..............................................................................................................................34 3......................................................................................66 APPENDICES ........................1. sample and sampling techniques ............................1........................37 4.....................33 3................25 2..................................2 Women entrepreneurs in MSEs and TVET .....................................2.....................................63 REFERENCES ...................2 Discussion .3.............................................................................6 Co operations among MSEs............39 4....................1 Summary............................................4 Methods of data analysis........................51 4................................................................................................................................................................................................................................. ANALYSIS AND DISCUSSION OF RESULTS .................................................29 CHAPTER THREE: METHODOLOGY...............45 4........................................

........................................LIST OF TABLES Table 1 Pros and cons of entrepreneurship .......................................................40 Table 7.......... Legal ownership of the enterprise............34 Table 4..........................................39 Table 6............................................................52 vii ............................ ............................ Family sizes of respondents.....................51 Table 17............................ Source of startup funding............. Reason to Start own Business .................43 Table11......................13 Table 2: Male vs..................................................................................................................................................... female entrepreneurs................ ...17 Table 3.................................................................................42 Table 10.......................................................................................................................41 Table 8.................................................. Initiators and starter of the business ..................38 Table 5........ Comparison of the major factors affecting women entrepreneurs’ Performance........50 Table 16............ Summary of women entrepreneurs’ population and sample taken................. Economic factors that affect the performance of women entrepreneurs in MSEs ......41 Table 9.... Respondents’ demographic profile ................... Number of employees hired.......48 Table 15........44 Table12.....................................................................................................46 Table 14................ Summary of the Supports Given by TVETs to MSEs..................................................................................................................45 Table 13.... Legal and administrative factors that affect the performance of women entrepreneurs in MSEs......................................... Socio-cultural factors that affect the performance of women entrepreneurs in MSEs......................................... Sectors respondents engaged in.............................................................. Family entrepreneurial history and source of skill for starting the enterprise ............

Scientific and Cultural Organization UNIDO: United Nations Industrial Development Organization WEA: Women Entrepreneurs Association viii .ACRONYMS ANRS: Amhara National Regional State APEC: Asian Pacific Economic Cooperation BDS: Business Development Services CEFE: Competency Based Economies Through formation of Enterprises ECSA: Ethiopian Central Statistics Authority EWEF: Ethiopian Women Exporters Forum FDREPCC: Federal Democratic Republic of Ethiopia Population Census Commission Government Organization GDP: Gross Domestic Production GNP: Gross National Production GTZ: German Technical Cooperation ILO: International Labor Organization MSE: Micro and Small Enterprises NGO: Non Government Enterprises OECD: Organization of Economic Corporation and Development SDCs: Skill Development Centers SMIDEC: Small and Medium Industries Development Corporation TVET: Technical and Vocational Education and Training UNECE: United Nations Economic Commission for Europe UNISCO: United Nations Education.

micro finances and TVET educators. a questionnaire that include demographic profiles. inadequate access to training. bureaucracies and red tapes.The results of the study indicates the personal characteristics of women entrepreneurs in MSEs and their enterprise affect their performance .It also shows that lack of own premises(land). factors that affect the performance of women entrepreneurs in MSEs and supports MSEs acquire from TVETs was designed in a closed ended and likert scales. Moreover. The study also found that even though TVETs provide technology. interviews were held with top officials of MSEs.It also addressed the characteristics of women entrepreneurs in MSEs and their enterprises and the supports they acquire from TVET colleges/institutes. co operations in the areas of business related trainings are poor. The study also found that conflicting gender roles.ABSTRACT This study was designed to assess the factors that affect the performance of women entrepreneurs in MSEs .Furthermore. A sample of 203 women entrepreneurs engaged in 5 sectors was taken for the study using stratified and simple random sampling. it was analyzed using simple statistical techniques (tables and percentages) and descriptive statistics (mean and standard deviations). and over all legal and regulatory environments. access to technology and access to raw materials were the key economic factors that affect the performance of women entrepreneurs in MSEs. characteristics of women entrepreneurs and their enterprises. Micro finances and TVET educators. stiff competition. machine maintenance. Based on the major findings. After the data has been collected. social acceptability and . technical skill training and facility supports. high amount of tax and interest.network with outsiders were the major social factors that affect these entrepreneurs . ix . the main legal/ administrative factors include access to policy makers. MSEs. In the process of answering the basic questions. recommendations were forwarded to existing and potential entrepreneurs.financial access.

History shows that economic progress has been significantly advanced by pragmatic people who are entrepreneurial and innovative. limitations of the study.1 Background of the study Entrepreneurship is increasingly recognized as an important driver of economic growth. purpose and significance of the study. which made its focus entirely on men. Over the years. 1 . Transforming ideas into economic opportunities is the decisive issue of entrepreneurship. innovation and employment. it was not common to see women-owned businesses worldwide especially in developing countries like Ethiopia. and definition of basic terms. able to exploit opportunities and willing to take risks (Hisrich. recent studies show that most of them are found in Micro and Small Enterprises(MSEs). Until the 1980’s little was known about women entrepreneurship both in practice and research. productivity.CHAPTER ONE INTRODUCTION This chapter addresses the introductory part of the research. the significant numbers of enterprises were owned by men (ILO. Scientific discourse about women’s entrepreneurship and women owned and run organizations is just the development of 1980s (ILO. 2005). In other words. Nevertheless. delimitation of the study. It basically includes background of the study. however. 2006). According to the Ethiopian Central Statistics Authority (2004). 1. almost 50% of all new jobs created in Ethiopia are attributable to small businesses and enterprises. and it is widely accepted as a key aspect of economic dynamism. and roughly 49% of new businesses that were operational between 1991 and 2003 were owned by women. statement of the problem. The role of entrepreneurship and an entrepreneurial culture in economic and social development has often been underestimated. 2006). Even though we observe a number of women entrepreneurs in the business. it has become increasingly apparent that entrepreneurship indeed contributes to economic development. The idea and practice of women entrepreneurship is a recent phenomenon.

15%) are within the age category of 15-59 years which is considered as a productive age. This shows that Ethiopia is among those African countries that are known by human resource potential. it seems that it does not utilize them as expected quality as well as quantity wise. 2008) of the 17. For instance. More than half of these females (51. Regardless of its potential. which is under utilization of women’s potential. The 3rd census of Ethiopia shows that of the total population of the country (73. and in ensuring women’s social mobility in the country might require worth mentioning. in bringing meaningful economic and social transaction.5% of the population. This underutilization of the untapped potential is attributed to a lot of reasons. This accounts 49.According to Aregash as cited in Eshetu and Zeleke (2008). in promoting and enhancing gender equality and women empowerment.848 are females (ECSA.34) When we come to Amhara Region. 36. 2007). many women face difficulty in raising credit finance from banks as well as borrowing via informal networking (p. Of these reasons. Women are disadvantaged due to culture. it does not utilize this labor force. In order to make the country. 98% of business firms in Ethiopia are micro and small enterprises. According to the Federal Democratic Republic of Ethiopia’s Population Census Commission (FDREPCC. religion and tradition.577. Though the region is enriched by this greater and productive number of women.181 are females. 8. inability to effectively use entrepreneurship in poverty reduction in general and alleviating the problems among women who are susceptible for poverty in particular. 2 . One reason might be similar to that of the country as a whole. In support of this they (2008) outlined that: More than half of all women entrepreneurs in Ethiopia often face gender related challenges related to establishing new businesses as well as operating or expanding existing businesses.621. the region and women themselves beneficiaries of this great potential.056 total population of Amhara Region. This is because of a lot of obstacles that women entrepreneurs in Ethiopia face Amha and Admassie(2008). appropriate measures should be taken to reduce the bottlenecks/challenges that women entrepreneurs in MSEs encounter.505).214.918. it is one of the regions in which many women are found.

they did not see the factors with respect to the different personal. organizational. there are a large number of women in Amhara region. Besides. their studies did not address women entrepreneurs in MSEs. But this study specifically emphasis on factors that affect the performance of women entrepreneurs in MSEs particularly in Dessie town. Like the region as a whole. Of these. One of the reasons for this meight be problems of women entrepreneurs in MSEs.2 Statement of the problem As mentioned in the introduction above. For example. 3 .This forces entrepreneurs in MSEs not to contribute a lot to the poverty reduction of the town. Technical and Vocational Education Trainings (TVETs) are targeted to produce entrepreneurs who are able to create own jobs rather than seeking employment in any organization. economic. Gemechis (2007) and ILO (2009) stressed that entrepreneurs are surrounded by a number of challenges . This is supported by different empirical evidences. 1. Similarly. about 2026 are working in MSEs. This study is different from those researchers discussed above in that their focus areas were in all entrepreneurs regardless of their sex.500 women entrepreneurs are found in the town. knowing the factors associated with the problems is a precondition for a problem well stated is half solved. socio-cultural and legal/administrative matters.Among the towns in Amhara region. Dessie is one in which a large number of women Entrepreneurs are found. But the region does not yet exploit them very well to contribute a lot for economic development. Information taken from the Dessie MSEs Office shows that more than 4. To take appropriate measures for these problems. Therefore. region and the country as a whole. That is why entrepreneurship training is incorporated in TVET Curriculum. the aim of this research is to identify the major factors that affect the performance of women entrepreneurs in MSEs in Dessie town in running their own businesses and recommend the appropriate measures to be taken. women entrepreneurship problems are tremendous in the town too.

What are the key economic. Even though women entrepreneurs in MSEs account the greatest proportion of total entrepreneurs in the country as a whole and in Dessie in particular. TVETs have MSEs coordination office since 2009. In addition to their delivery of entrepreneurship trainings in different modalities. entrepreneurship is given in different countries including Ethiopia in formal. informal and non-formal way through TVET colleges/institutes. What are the major characteristics of women entrepreneurs in MSEs and their enterprises? 2. there is an acute shortage of studies conducted with a specific objective of analyzing the problems of enterprises operated by women in terms of personal and organizational-related challenges. existing and potential entrepreneurs to create and run their own business rather than expecting employment from government. Thus. All these contribute a lot in strengthening women entrepreneurs’ performance by equipping them with the necessary business skills. economic. So as to develop entrepreneurial culture to all groups of the society. private or NGOs. social/cultural. legal and administrative factors that affect the performance of women entrepreneurs in MSEs? 3. The office facilitates the different short term trainings given to SMEs from registration up to certification. What supports are given to women entrepreneurs in MSEs by TVET institutes to solve problems they face? 4 . social. In light of this.Entrepreneurship education is designed in order to support graduates. and legal/administrative. the supports given by TVET institutions to MSEs are assessed very well. This study is deemed to fill the gaps by identifying specific factors that are responsible for resilience in SMEs operated by women entrepreneurs. in this study it is thought to assess the different factors that affect the performance of women entrepreneurs in MSEs in Dessie town. and shade light on womenspecific differentials that affect their performance. the study attempts to answer the following basic questions: 1. Furthermore.

The study also 5 .4 Significance of the study Women should create their own jobs and become entrepreneurs since opportunities of getting employment in either government. But. Since more is not written in this area. the study has the following significances. Had the study been conducted in all these (if possible) or majority of them. 1. It shows what areas of support should TVET institutes and MSEs have to work together. 1. it would have been complete. the study focuses only on assessing the major personal and organizational characteristics of women entrepreneurs in MSEs to check whether these characteristics affect their performance. socio-cultural. there are different issues that can be researched in relation to women entrepreneurs.500 women entrepreneurs are found in the town. 2.2007). potential entrepreneurs. 1. It can be one input to existing Women Entrepreneurs.5 Delimitations of the study Information taken from Dessie trade and industry office shows that more than 4. 3.1. this study is delimited to the key economic. legal/administrative factors affecting the performance of women entrepreneurs in MSEs. Furthermore. the study is designed to assess the major factors affecting the performance of women entrepreneurs in MSEs and the challenges they face in starting and running their own business in Dessie town.3 Objective of the study Generally. Specifically. This is possible only if the barriers of women entrepreneurs are solved . non government or a private organization is currently almost declining (Gemechis. MSE heads of the town and the region and TVET educators to alleviate the problems that women entrepreneurs face. The major characteristics of women entrepreneurs in MSEs and their enterprises. 2. The key factors that affect the performance of women entrepreneurs in MSEs. The supports given to women entrepreneurs in MSEs by TVET institutes in Dessie town. it will also be an add to the existing literature.Generally. 3. In addition. it is intended to assess: 1.

since respondents have been in a tight work. Furthermore. Some do not give values to the questionnaire and some others do not return it totally.7 Definition of terms Characteristics: key personal and organizational features of women entrepreneurs in MSEs. Therefore. some others see the questionnaire politically even though orientations have been made. following up respondents and collecting responses. Factors: personal. women entrepreneurs in 5 key sectors which are considered as growth corridors now a-days and only the case of Dessie town women entrepreneurs are considered given all other constraints 1. since the respondents were scattered in different sites. economic.2006). organizational. raw material. some difficulties were faced in giving orientations. legal/administrative influences that affect women entrepreneurs overall activities and operations in MSEs. machine.6 Limitations of the study Even though different efforts have been made. the fact that the majority of the respondents’ educational background is low creates some negligence in filling the questionnaire. Moreover. 6 . 1. Cooperatives: association of at least 10 individuals who are from the same kebele (Dessie MSEs office). some were not as such willing to fill the questionnaires.addresses the training. socio-cultural. technology and facility supports that TVETs provide to these entrepreneurs so as to minimize the problems the women entrepreneurs in MSEs face. these conditions meight affect the quality of the paper to some extents. formal TVET in Ethiopia includes 10+1 to 10+3 programs. Lastly. Formal TVET: Currently. which currently redesigned in to five levels (level I to V) provided by public and private/government/non government institutions and finally accredited by the regional Education bureau/TVET agency(Amhara TVET Strategy Draft. the researcher faced some challenges while doing this study. financial. Besides this. To begin with.

and long-term TVET programmes (run by different public or private providers. Non-formal TVET: includes all structured short. financial. (Amhara TVET Strategy Draft. 2005). 2003). includes on-thejob training. 2003).000 other than technological and consultancy services (Ethiopia Ministry of Trade and Industry. Micro Enterprise means commercial enterprise whose capital is not exceeding birr 20. (Amhara TVET strategy draft. raw material and facility assistances that TVETs provide to MSEs.000 birr. Joint ownership: association of two or more individuals who act as a co owner (Hisrich. comprising different modes of delivery and durations of training) that are not registered as formal TVET by the Ministry of Education. 2003). other than high technological and consultancy service institutions ((Ethiopia Minstry of Trade and Industry. etc. including consumers and the self-employed (Ethiopia Ministry of Trade and Industry. Small Enterprise means a business engaged in commercial activities whose capital is exceeding birr 20. 7 . Micro finance: refers to the provision of financial services to low-income clients. 2006). Performance: overall activities and operations performed by women entrepreneurs in MSEs in strengthening their enterprises. Women entrepreneurs: women in MSEs running their own business rather than employed in any organization. TVET programmes by NGOs. employer-based TVET. self-learning.000 and not exceeding 50. learning-by doing. machinery. Supports: training. TVET in Community Skills Training Centers. short-courses in commercial TVET schools. Informal TVET. e.g. for example.Informal TVET: Includes all kinds of training and learning that is not structured and following a formal curriculum or syllabus. 2006). etc.

1 An overview to entrepreneurship As globalization reshapes the international economic landscape and technological change creates greater uncertainty in the world economy. social and environmental challenges. The dynamic process of new firm creation introduces and disperses innovative products. with which they share many characteristics and challenges. and they need to analyze the effectiveness of different policy approaches (p. by evidence and facts. entrepreneurship is linked to regional development programs and the creation of new firms is stimulated to boost employment and output in depressed regions. women entrepreneurs in MSEs.CHAPTER TWO REVIEW OF RELATED LITERATURE This chapter revises the different literatures written in the areas of entrepreneurship. While many countries are making serious efforts to support entrepreneurship. policy making must be guided. while others set out to support high-growth firms. Countries want to understand the determinants of and obstacles to entrepreneurship. Ultimately. and the supports given by TVET to MSEs. owing to different policy needs and diverse perspectives on what is meant by entrepreneurship. Governments increasingly consider entrepreneurship and innovation to be the cornerstones of a competitive national economy. In support of this Schumpeter (2005) stated.13) The lack of internationally comparable empirical evidence has however constrained our understanding of entrepreneurship and many questions remain unanswered. In some countries. Entrepreneurship objectives and policies nevertheless differ considerably among countries. as far as possible. 8 . and in most countries entrepreneurship policies are in fact closely connected to innovation policies. 2. In others. processes and organizational structures throughout the economy. the dynamism of entrepreneurship is believed to be able to help to meet the new economic. the problems of entrepreneurship. such as women or minorities. women entrepreneurs. results appear to vary. in the economy. Some countries simply seek to increase firm creation as such. factors affecting the performance of women entrepreneurs in MSEs. entrepreneurship is a key element of strategies designed to facilitate the participation of certain target groups.

Some of the definitions are given below.1 Meaning and definitions of entrepreneurship There is no agreement among authors regarding the definitions of Entrepreneurship. there is agreement that we are talking about a kind of behavior that includes: (1) initiative taking. (2) the organizing and reorganizing of social and economic mechanisms to turn resources and situations to practical account. Hisrich (2005 :) defined entrepreneurship as follows: Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort. According to Ponstadt (1998) Entrepreneurship is the dynamic process of creating incremental wealth. Different authors tried to define it in different manners. psychic. creation and distribution of values and benefits to individuals. This wealth is created by individuals who assume the major risks in terms of equity. Timmons (1989) defined it in such a way that: Entrepreneurship is the process of creating and building something of value from practically nothing. organizations and society. assuming the accompanying financial.9) Furthermore. 9 . rather it is one of building long term value and durable cash flow streams (p. It involves the definition. This doesn’t mean however that there are no common elements among authors. (3) the acceptance of risk or failure.1.29) In addition. it is the process of creating or seizing an opportunity and pursuing it regardless of the resources currently controlled. That is. it is possible to conclude that in almost all of the definitions of entrepreneurship.2. Entrepreneurship is very rarely a get rich-quick proposition (not short term). time and/or career commitments of providing values for some product or service. The product or service may/may not be new or unique but value must be infused by the entrepreneur by securing and allocating the necessary skills and resources (p. and social risks.2) From the definitions given above. groups. and receiving the resulting rewards of monetary and personal satisfaction and independence (p.

It also stimulates investment interest in the new ventures being created.1. 7. They choose whom to do business with and what work they will do.Entrepreneurship increase percapita output and income . It is a catalyst for economic change and growth . It gives an individual the opportunity to build equity. and many countries have made entrepreneurship explicit policy priority. Entrepreneurship offers a greater possibility of achieving significant financial rewards than working for someone else. Entrepreneurship creates an opportunity for a person to make a contribution. from sales to business operations and customer response. from concept to design and creation.More ventures being created.By doing so it involves initiating and constituting change in the structure of business and society. 1. It offers the prestige of being the person in charge. According to World Bank (2007). 5. 2. They decide what hours to work. innovation and employment. which can be kept. as well as what to pay and whether to take vacations. new jobs will be produced. or passed on to the next generation. Entrepreneurship through its process of innovation creates new investment of new ventures . It provides the ability to be involved in the total operation of the business. 4.2 The benefits of entrepreneurship It is abundantly clear that entrepreneurship is important for economic growth. Entrepreneurship encourages innovation and creativity. performance and wealth creation. 3. That will Creates and promotes wealth distribution 10 . As a result entrepreneurship contribute a lot in increasing countries output and productivity 8. It develops new products or service for the market to fulfill human needs. A few—through their innovations— contribute to society as a whole. Entrepreneurial activities have been recognized as an important element in organizational and economic development. Most new entrepreneurs help the local economy. 6. Entrepreneurs are their own bosses.2. productivity. sold. They make the decisions. Fox (2001) and Hisrich (2005) entrepreneurship has the following benefits. thus reduce the unemployment rate.

they can go into business for themselves. lack of access to the market . If they believe that others would be interested in it. society looks down upon. entrepreneurism helps the economy by creating wealth for many individuals seeking business opportunities. they can go into business to create one. 2. attitude of other employees. and relations with the work force 11 . Both a new business and the wealth the owner can obtain will help boost the economy by providing new products as well as the spending power created for the entrepreneur. from being creative and doing what they enjoy. For this there are a number of factors . starting a business can be rewarding. Although this is not the number one reason individuals pursue entrepreneur activities. They can have more control over their working hours and conditions than they would have if they worked for someone else. lack of production/ storage space. having limited contacts outside prejudice and class bias.3 Factors affecting entrepreneurship Even though entrepreneurship has its own advantages. Without entrepreneurs. Tan (2000) classified the basic factors that affect entrepreneurs in to two broad categories –economic and social.1.Samiti (2006). lack of marketing knowledge. poor infrastructure. Furthermore. it is not free of problems.lack of capital or finance.lack of access to raw material . our economy would not benefit from the boost they give from added business and ideas. which is the money left over after paying their bills. For example. If they cannot find a job they want.As explained above. Entrepreneurs are their own bosses. it plays a major role in our economy. The economic factors include competition in the market. They may make a profit. inadequate power supply and lack of business training The social factors include lack of social acceptability. they may have a new idea about a particular product or service.

ILO (2009) added Social and cultural attitude towards youth entrepreneurship. 2.htm 12 .thinkquest. barriers to access technology are crucial factors that affect entrepreneurial success.4 Comparing the pros and cons of entrepreneurship The following table summarizes the pros and cons of entrepreneurship as sited in http://library.Besides this. entrepreneurship education. Gemechis (2007).1.org/C008486F/iva. administrative and regulatory framework. and business assistance and support. Hisrich (2005).

especially when considering that your business will be just starting off. Rules and regulations: Work in a current job is difficult to do because of all the "red tape" and consistent administration approval needed Originality: Some people feel that they can offer a new service/product that no one else has offered before. people want to be paid for the amount of work they do in full. Procedures: Many times during your entrepreneurial life.htm 13 ." Flexibility: Entrepreneurs can schedule their work hours to spend quality time with family or any other reason. Benefits: There will undoubtedly be fewer benefits. Administration: All the decisions of the business must be made on your own. they do not want to be "short-changed. there is no one ranked higher than you on the chain of command in your business.org/C008486F/iva. Work schedule: The work schedule of an entrepreneur is never predictable. Cons Salary: Starting your own business means that you must be willing to give up the security of a regular paycheck. Incompetent staff: Often times. Independence: Some people wish to be their own boss and make all the important decisions him/herself.thinkquest. Source: http://library. Salary potential: Generally.Table 1 Pros and cons of entrepreneurship Pros Excitement: Due to its high capacity for risk. you will find yourself working with an employee who "doesn't know the ropes" as well as you do due to lack of experience. Rational salary: They are not being paid what they're worth and would rather work on their own and earn the money they should be earning for their efforts. wherever they want. there is a lot of adventure. an emergency can come up in a matter of a second and late hours will have to be put in. Competition: Employees feel they can offer their current company's product/service at a lesser expense to the public. nor will they ever make sense. Freedom: Entrepreneurs can work whenever they want. you will find that many policies do not make sense. and however they want.

1 Nature of women entrepreneurs There is no agreement among researchers with regard to the differences in the characteristics of male and female entrepreneurs. For example Green & Cohen (1995) stated. “An entrepreneur is an entrepreneur is an entrepreneur. women’s entrepreneurial activities are not only a means for economic survival but also have positive social repercussions for the women themselves and their social environment United Nations Industrial Development Organization (UNIDO. Some groups of researchers agree that there are no differences. particularly in industry.2. If so. or sex the entrepreneur might be.2 Women entrepreneurship Women’s productive activities. While research shows similarities in the personal demographics of men and women entrepreneurs. Whether they are involved in small or medium scale production activities. growth patterns. and governance structures of female led ventures (p.2. In many transitional economies progress has been achieved in opening doors to education and health protection for women but political and economic opportunities for female entrepreneurs have remained limited. generating income and employment through improved production (OECD. color. financing strategies.106) These differences provide compelling reasons to study female entrepreneurship – looking specifically at women founders. 1997). 2. 2001). empower them economically and enable them to contribute more to overall development. But some others state differences. their ventures. and their entrepreneurial behaviors as a unique subset of entrepreneurship.” and it should not matter what size. Concerted efforts are needed to enable female entrepreneurs to make better economic choices and to transform their businesses into competitive enterprises. or in the informal or formal sectors. Just as we have found that clinical trials conducted on an all-male population do not necessarily provide accurate information about the diagnosis or treatment of female patients. we see that scholarly research focused only on 14 . In many societies women do not enjoy the same opportunities as men. shape. good research on entrepreneurs should generate theory applicable to all. there are differences in business and industry choices.

2. are unique in many aspects. the educational backgrounds of male and female entrepreneurs were similar. the daughter of a self employed father. though they share many characteristics with their male colleagues.The report also added the desire to make a social contribution and helping others has been found to be a key factor in women choosing to become business owners. and expectations were controlled for.dti. forty to forty-five at start-up. from a middle or upper class family. 2. Among these Shane (1997) identified that men had more business experience prior to opening the business and higher expectations. women entrepreneurs had a larger average household size. family concerns – balancing career and family. and organizational dynamicspower/politics are reported as main initiators to become entrepreneurs for women. strategic orientation.2 Differences between women and men entrepreneurs While gender was shown not to affect new venture performance when preferences. and access to resources. married with children. the differences observed among men and women entrepreneurs were observed by different researchers. lack of career advancement/discrimination. Observable differences in their enterprises reflect underlying differences in their motivations and goals. Birley (1987) stressed on the differences even in their background and personal characteristics.pdf pointed out that challenges/attractions of entrepreneurship. preparation.male entrepreneurial ventures leaves many questions unanswered for their female counterparts. women were more likely to have positive revenues. educated to degree level. men spent slightly more time on their new 15 .gov. researchers identified a number of reasons for women to become entrepreneurs. women were less likely than men to purchase their business. motivation. He found the female entrepreneurs to be the first born. organization. self-determination/autonomy. female owners were more likely to prefer low risk/return businesses. and with relevant experience In their desire in starting new businesses. Some argue that it is important to look at female entrepreneurs who. South Africa Entrepreneurs Network (2005) as sited in http://www.za/sawen/SAWENreport2. men were more likely to own an employer firm.

had higher expectations for their business. 16 . and businesses that have a less geographically localized customer base. male entrepreneurs were more likely to found technologically intensive businesses. businesses that lose their competitive advantage more quickly.ventures than women. Malaya (2006) tried to distinguish male and female entrepreneurs with respect to their success indicators arranged in a sequential order from very important to least important. male owners spent more effort searching for business opportunities and this held up when other factors were controlled for. Besides to this. The following table illustrates this. and did more research to identify business opportunities. male owners were more likely to start a business to make money.

2. (2006). F. A Gender-based Analysis of Performance of Small and Medium Printing Firms in Metro Manila.3 Factors affecting women entrepreneurs’ performance Women Entrepreneurs have grown in large number across the globe over the last decade and increasingly the entrepreneurial potentials of women have changed the rural economies in many parts of the world. In support of this The Centre for Women’s Business Research in the 17 . But this does not mean that the problems are totally resolved. female entrepreneurs Male Generating revenues/profits Providing quality product /service to customers Being able to balance work/ family responsibilities Having a regular source of livelihood Improving quality of life of employees Being able to continue operation of business Expanding business Female Generating revenues/profits Providing quality product /service to customers Providing employment to people Being able to balance work/ family responsibilities Improving quality of life of employees Being able to continue operation of business Having a regular source of livelihood Providing employment to people Gaining financial independence Being able to utilize my talents/skills Taking advantage of business opportunities Providing adequate family support Gaining financial Independence Source: Malaya M.Table 2: Male vs. 2.

C.United States as sited in UNECE (2004) and Mahbub (2000) identified the following factors that affect women entrepreneurs. an unwillingness to accept household assets as collateral and negative perceptions of female entrepreneurs by loan officers (Mahbub. and may be restricted in their ability to travel to make contacts (UNECE. women-owned SMEs are often unable to take on both the production and marketing of their goods. A. respectively. Women often lack access to training and experience in on how to participate in the market place and are therefore unable to market goods and services strategically. In fact. South Asia is characterized by low enrolment among women in education. high dropout rates and poor quality of education. women on average have less access to education than men. The figures are testifying to the existence of gender discrimination 18 . Accessing credit. knowledge and contacts. B. The high cost of developing new business contacts and relationships in a new country or market is a big deterrent and obstacle for many SMEs. 2000). and technical and vocational skills can only be developed on a strong foundation of basic primary and secondary education. Access to training Women have limited access to vocational and technical training in South Asia. Women may also fear or face prejudice or sexual harassment. In addition. The table below shows female literacy levels as a percentage of male literacy as well as average years of schooling of women and men. particularly for starting an enterprise. Access to finance Access to finance is a key issue for women. they have often not been exposed to the international market. including lack of collateral. Thus. 2004). in particular women-owned businesses. Access to markets The ability to tap into new markets requires expertise. is one of the major constraints faced by women entrepreneurs. and therefore lack knowledge about what is internationally acceptable. Women often have fewer opportunities than men to gain access to credit for various reasons.

due to the combined invisibility of women-dominated sectors or sub sectors and of women as individuals within any given sector (Mahbub. all of which further limit their growth. Even when a woman does venture into these networks. ILO (2008) added that the key factors that affect women entrepreneurs’ performance especially in developing continents like Africa are: vulnerability of women to adverse effects of trade reform. Large companies and men can more easily influence policy and have access to policymakers. 2000). 2004). mainstream business organizations. Women’s lack of access to information also limits their knowledgeable input into policymaking (UNECE. There are hardly any women-only or women-majority networks where a woman could enter.in building capacity of women and providing them with equal opportunities (UNECE. Access to policymakers Most women have little access to policymakers or representation on policymaking bodies. less knowledge of how to deal with the governmental bureaucracy and less bargaining power. Access to networks Women have fewer business contacts. E. her task is often difficult because most network activities take place after regular working hours. lack of management skills. and even less reach leadership positions in. lack of information to exploit opportunities. OECD (2002). Few women are invited to join trade missions or delegations. Lack of networks also deprives women of awareness and exposure to good role models. restraints with regard to assets (land). they often find it difficult to access information. D. gain confidence and move further. Since most women entrepreneurs operate on a small scale. Women tend not to belong to. 2004). and Poor mobilization of women entrepreneurs. Robertson (1998). who are seen more as their peers. lack of awareness among young women of 19 . Most existing networks are male dominated and sometimes not particularly welcoming to women but prefer to be exclusive. and are generally not members of professional organizations or part of other networks. limiting their input into policymaking through lobbying.

The studies stressed that SMEs owned or operated by women in Ethiopia survive against tremendous odds of failure. 1998. because of higher education and better access to economic and resources. and constraints at the legal. These women have outgrown the micro finance system and 20 . there has been a well established tradition of women being involved in small businesses and enterprises. competition. Although the national government has come to acknowledge that supporting enterprises operated by women promotes gender equality and economic empowerment. 2. However. and that the promotion of vibrant SMEs should be one of the most important priority strategies for empowering women. According to Hadiya. One is of the woman who has. addressing abject poverty and unemployment in Ethiopia. the majority of enterprises operated by women face difficulty in terms of access to finance. Historically. ILO.2. it is only recently that women’s entrepreneurship has gained the attention of economic planners and policy makers particularly in developing countries in Ethiopia. 2003). innovation and economic empowerment of the poorest of the poor.entrepreneurship as a career option. institutional and policy levels . been able to grow her micro enterprise into the small enterprise category (Hadiya. conflicting gender roles. gender inequality inappropriate technology. there are other profiles. (2003). productivity. While it is true that the predominant image of the “Ethiopian woman entrepreneur” is one of poor women trying to survive. resources.4 Women entrepreneurs in Ethiopia A national survey conducted by the Ethiopian Welfare Monitoring Unit as sited in Eshetu and Zeleke (2008) shows that women entrepreneurs in Ethiopia are not provided with adequate policy related and strategic support from the national government. National Bank of Ethiopia (2002). Negash & Kenea. business skills and institutional support from the national government Ethiopian Ministry of Trade and Industry of Ethiopia (2003). diversification. Businesses and enterprises operated by women contribute for economic dynamism. these women believe they are the most neglected category of women entrepreneurs because they do not have institutional credit or other support services available to them.

women entrepreneurs do not have the same access to networks as men. The ILO (2003) study of women in growth enterprises found that 70 per cent of the women entrepreneurs currently engaged in small enterprises had started them as micro-enterprises and grown them over time. Research has shown that it is possible for women to make the transition from a micro to a small enterprise under the right circumstances. ILO (2003) found that lack of suitable location or sales outlet.shortage of raw materials . • • • • • • Difficulty in obtaining loan from commercial banks failure of business/bankruptcy Failure to convert profit back into investment Shortage of technical skills Poor managerial skills Low level of education Furthermore. because of her higher education.lack of market information . stiff competition.yet are not able to borrow from banks. low purchasing power of the local population. A study conducted by ILO (2008) in Ethiopia. women’s lack of access to titled assets 21 .Shortage of working capital are constraints of women entrepreneurs in Ethiopia. ILO (2003) also identified that the following are the main challenges that women entrepreneurs in Ethiopia face in a sequential order from very Sevier to least important.inadequate infrastructure . lack of marketing knowhow. has access to the financial and other resources needed to start and grow larger enterprises. Members of the Ethiopian Women Exporters’ Forum (EWEF) are illustrative of this group. a lack of property and inheritance rights. women entrepreneurs have difficulties accessing premises due to. among other things.shortage of time (due to multiple tasks) . previous work experience. The other profile is of the woman who. and better economic circumstances. Eshetu and Zeleke (2008). seasonal nature of the business . although even members of the EWEF complain about inadequate access to commercial bank loans to meet their working capital needs because of the rigid requirement for collateral guarantees (which they often cannot meet). the United Republic of Tanzania and Zambia identified that.

on the dynamic front they are a nursery for the larger firms of the future. increasing 22 . alleviating poverty. In an increasingly international marketplace. While the majority of the world’s largest companies continue to provide multiple services to numerous markets. women entrepreneurs tend to be grouped in particular sectors. sometimes it becomes a difficult task for an individual to understand importance of women entrepreneurs in MSEs. 2. economy of any country. within that broad category. particularly food processing and textiles. One may not know the important role that women entrepreneurs in SMEs plays in developing any particular sector. As the global marketplace continues to develop. they now purchase many components and goods from smaller companies that serve one particular niche. women entrepreneurs lack access to formal finance and rely on loans from family and community. are the next (and important) step up for expanding micro enterprises. women entrepreneurs in MSEs contribute to output and to the creation of “decent” jobs. 2005). 2.1 Benefits of women entrepreneurs in MSEs With various definitions by various countries. but especially to those in developing countries and. women entrepreneurs in MSEs provide an effective tool for economic growth through participation in global supply chains (World Bank. especially to those with major employment and income distribution challenges. Women often experience harassment in registering and operating their enterprises. business development service providers do not give adequate time or effort to target women entrepreneurs – they do not offer flexible arrangements in respect of the timing and location of service delivery.that can be offered as collateral for loans adversely affects the growth of their enterprises.3. as opposed to diversification. many companies are finding that prosperity is best achieved from specialization. and they are involved in the development of appropriate technology. On what we may call the “static” front. they contribute directly and often significantly to aggregate savings and investment.3 Women entrepreneurs in SMEs Women Entrepreneurs in MSEs are important to almost all economies in the world.

through inter-enterprise cooperation. a group that represents greater responsibility and commitment than in the former centrally planned economies. UNIDO(2004) added that a characteristic of women entrepreneurs in MSEs is that they produce predominantly for the domestic market. The private sector and in particular women entrepreneurs in MSEs form the backbone of a market economy and for the transition economies in the long-term might provide most of the employment. they raise the level of skills with their flexible and innovative nature. an increased number of women entrepreneurs in MSEs will bring more flexibility to society and the economy and might facilitate technological innovation. they curb the monopoly of the large enterprises and offer them complementary services and absorb the fluctuation of a modern economy. and Play a Particularly Important Role in developing Countries Furthermore. essential for a Competitive and efficient Market. above all providing various items of daily use at an affordable cost. women Entrepreneurs in MSEs are contributing to employment growth at a higher rate than larger firms. And through this process the efficiency of the remaining enterprise might be increased as well. as well as provide significant opportunities for the development of new ideas and skills. Critical for Poverty reduction. According to World Bank (2003) report Women entrepreneurs in MSEs are the engine of growth. and. the structural shift from the former large state-owned enterprises to women entrepreneurs in MSEs will increase the number of owners. women 23 . Thus women entrepreneurs in MSEs can generate important benefits in terms of creating a skilled industrial base and industries.org/indust/sme/ecesme. Within the last few years many developed and developing countries have realized the importance of the sector. drawing in general on national resources.employment.unece. and developing a well-prepared service sector capable of contributing to GDP. according to UNECE as sited in http://www. Support for women entrepreneurs in MSEs will help the restructuring of large enterprises by streamlining manufacturing complexes as units with no direct relation to the primary activity are sold off separately.htm.

many agencies or channels for MSEs without effective coordination (this leads to lack of transparency to the target groups) .inadequate behaviors of multinational companies against domestic MSEs/Lack of government supply-supporting programs . (SMIDEC.complexity of trade documentation including packaging and labeling . discriminatory regulatory practices. New business development is a key factor for the success of regional reconversion where conventional heavy industries will have to phased out or be reconstructed (especially in the field of metallurgy. inability to be in the mainstream of industrial development. and low access to appropriate technology Furthermore. ILO (2003). coalmining. language barriers and cultural differences . etc. there are a number of challenges that affect them associated with different factors. bureaucracy and red tape. 2. heavy military equipment. unfavorable legal and regulatory environments and. women entrepreneurs in MSEs are affected by lack of entrepreneurial. lack of accessibility to information and knowledge. which are attributed to lack of comprehensive framework in terms of policies towards MSEs development. Many MSEs still occupy lands or sites that are not approved to be used for industrial purposes. managerial and marketing skills.risks in selling abroad . difficulties accessing financial resources/Lack of capital .2 Factors affecting the performance of women entrepreneurs in MSEs Even though women entrepreneurs in MSEs contribute a lot for the economic development of a country. in some cases. inadequate intellectual property protection. shows that the women entrepreneurs in MSEs are facing many challenges.3.lack of accessibility to investment (technology equipment and know-how) . lack of quality awareness and lack of mutual recognition schemes .lack of government incentives for internationalization of MSEs . 2004).entrepreneurs in MSEs use and develop predominantly domestic technologies and skills.competition of indigenous MSEs in foreign markets . For example.nonconformity of standardization. according to World Bank (2005). inadequate data and information on the development of SMEs . There is 24 . Product and service range and usage differences . a study made in Malaysia by APEC (1994). lack of business premises (at affordable rent).

advisory services and other incentives made available by the government and its agencies. 2. MSEs are a platform for sustainable development and productivity. which affects the quality of production as well as efficiency and productivity. Elements of the program include measures with regard to creating an enabling legal framework and streamlining regulatory conditions that hinder the coming up of new and expansion of existing MSEs.2003) The following definition of MSE is from the Ethiopian Ministry of Trade and Industry (1997) and is used to categorize the sector for the purpose of the strategy: 25 . like: • • • MSEs are a better way for poverty reduction. In addition specific support programs also include measures related to facilitating access to finance.also an underutilization of technical assistance. ILO (2006) in Ethiopia the idea of Micro & Small Enterprises (MSEs) development emerged as a promising agenda in the 1980s.3. promotion of partnerships. there is a lack of skilled and talented workers. which enlightens a systematic approach to alleviate the problems and promote the growth of MSEs. A variety of reasons have been cited for the surge of interest in MSEs development.3 Women entrepreneurs in MSEs in Ethiopia According to Schorling (2006). access to appropriate technology. access to market. In addition.(ILO. In November 1997 the Ethiopian Ministry of Trade and Industry has published the "Micro and Small Enterprises Development Strategy". The MSE sector plays an important role in providing people with livelihood and income generating opportunities. training. providing income and services to people who cannot get employment in the formal sector. MSEs are important actors within the trade sector and a platform for economically empowering women and men. access to information and advice. infrastructure and institutional strengthening of the private sector associations and chamber of commerce. provision of incentives.

-. According to GTZ as sited in http://www. working premises. and excluding high technical consultancy firms and other high tech establishments. extension service. • Limited and for some complete lack of access to funds 26 . In comparison with other countries it is known that in all the successful economies.bds-ethiopia. which therefore need proper attention and improvement. MSEs are seen as a springboard for growth. credit. consultancy.net/approach-tvet. It provides the ideal: environment enabling entrepreneurs to exercise their talents to the full and to attain their goals. market and working premises.000 and not exceeding Birr 50 000. prototype development. Small Enterprises are those business enterprises with a paid-up capital of above 20. women entrepreneurs in MSEs in Ethiopia are faced with a number of challenges. marketing problems. information provision. Lack of Capital. The following can be cited as the main ones. which are of structural. institutional and economic in nature. there are still constraints related to infrastructure. The Micro and Small Enterprises Sector is described as the national homes of entrepreneurship. Although the economic policy of Ethiopia paid due emphasis for entrepreneurship values and appreciation of the sector's contribution to the economy.html . imbalance preferential treatment and many others. shortage of supply of raw materials and lack of qualified Human resources are the most pressing problems facing MSEs.and excluding high technical consultancy firms and other high tech establishments.Micro Enterprises are those small business enterprises with a paid-up capital of not exceeding Birr 20 000. job creation and social progress at large. Women entrepreneurs development in MSEs: difficulties and problems Schorling (2006) study shows that in Ethiopia's situation MSEs are confronted by various problems.

net. Non-Governmental (NGO) Agencies and Commercial Business Development Services (BDS) Providers to implement efficient BDS to the Ethiopian Business Community • Strengthen the organizational capacity of the Partner Organizations through Organizational Development in order to deliver better services to the businesses • Training of Trainers in order to implement CEFE Trainings (Creation of Enterprises through Formation of Entrepreneurs) 27 . the EthioGerman Micro and Small Enterprise Development Strategy focus on four priorities: • Enabling Governmental.bds-ethiopia. In addition to this basic objective the following specific objectives are stated here: • • • • • Facilitate economic growth and bring about equitable development Create long-term jobs Strengthen cooperation between women entrepreneurs in MSEs Provide the basis for the Medium and Large Scale Enterprises Balance preferential treatment between women entrepreneurs in MSEs and bigger enterprises • • Promote export According to the Ethiopian MSE-policy sited in www.• Lack of or poor skills of operators and/or the work force in the economy due to underdeveloped Technical and Vocational Education & Training (TVET) system • Underdeveloped infrastructure Business Development Services (BDS) market Poor • • Weak private sector promotional institutions Weak public sector support system Main objectives of the women entrepreneurs development strategy in MSEs Schorling also identified that the primary objective of the Ethiopian strategy framework is to create an enabling environment for women entrepreneurs in MSEs.

2. International Donors) related to MSE Development in order to coordinate the respective activities.3. Though the regional government has formulated the MSE regional strategy and put in place institution to implement the strategy. These Micro and Small Enterprises are unable to address the problems they faced on their own. to the legal and regulatory environments. because their size allows them to adopt new processes. The problems / constraints/ relate to each other. and produce goods and services. employees. the acquisition of skills and managerial expertise.• • Networking with all organization (Government.4 Women entrepreneurs in MSEs in Amhara Region According to Walelign and Wondimu (2002). access to market.. therefore. hampered. materials and products. access to infrastructure. finance. Women entrepreneurs MSEs are still facing sever constraints in their activities and their promotion and development are. Regional Small and Micro Enterprise Development Agency strategy draft as sited in Walelign and Wondimu (2002) shows that encouragement and promotional activities of women entrepreneurs in MSE in the region have been weak. access to appropriate technology. can create substantial job opportunity. services. little is achieved so far. women entrepreneurs in MSEs in ANRS play a crucial role in the economic improvement. which by itself create the way to reduce the poverty. and in some cases discriminatory regulator practices. even in and effectively functioning market economies. utilize cheap and local raw materials. 28 . it’s a home of entrepreneurship. because they utilize relatively less capital. NGO. business information. BDS-Providers. Comparing with large enterprises women entrepreneurs in MSE maintain a closer relationship with its customers. Which save hard currency for the country in general and for our region in particular and the very important point is that it is creating opportunities for the population to earn (generate) income. business premises. it’s based on lower overhead and have grater flexibility.

They also pointed out that since there have not been any organized policy and support systems that women entrepreneurs in MSEs have been confronted by the various problems which are of policy, structural and institutional in nature, lack of smooth supply of raw materials and working premises were the major bottlenecks for women entrepreneurs in MSEs. On the other hand negative attitude of the public to the importance of the sector due to cultural influence is another constraint to the development of MSEs, due to these reasons, training services to SMEs is fairly young and weak. Only insufficient formal counseling, information and training services are given and they are often given freely and are not demand driven and lack of knowhow on adequate skills & experience.

A similar study by Walelign and Wondimu (2002) shows that women entrepreneurs in MSEs in Amhara region are constrained by lack of market; lack of finance /Capital/; problems related to government rules & regulations; lack of information and advice; lack of sufficient training; lack of Premises / working Place; shortage of the supply of raw materials; cultural influence and lack of infrastructure facilities.

2.2 Women entrepreneurs in MSEs and TVET
MSEs play a vital role in poverty reduction, employment generation as well as economic development in poor countries like Ethiopia. The Ethiopian micro & small enterprise sector has a wide range of operators: petty traders to small restaurant owners; a shoeshine boy to a small shoe factory owner; a peddler in the streets to a grocery business operator, etc. But to bring it to the modern arena, much is expected from TVET institutions in that they are the main suppliers of qualified labour force both male and women. In support of this, to bring effectiveness in the MSEs sector by integrating them with TVET Ratchusanti (2008) identified the following.

Strengthening Partnership with the private and government organizations Supporting TVET projects.

Existing the effective TVET Projects of fostering entrepreneurship or selfemployment of TVET students and the people.

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Integrating in teaching learning in knowledge and skill for students in writing business plan and managing the MSE.

Establishing incubator training centers in the colleges and enhancing the smart TVET students and the lacked chance people to meet the capital investment loans to begin their business.

Enhancing TVET students in sufficient economic, moral, work habit, career attitude and MSE concept by integrating in teaching and learning.

Toping up skill and knowledge for the people in the community who has their own business by TVET Colleges.

Ratchusanti added that MSE sustainable development should be an integral aspect of TVET plans, projects actives in teaching and learning process. However, Administration Teachers are the key for success. They need to be managers facilitators coaches, mentors, advisors, counselors, or anyone who are to make TVET students continue to learn, to improve their knowledge skill and attitude in MSE which effect to economic of the country.

In order to integrate TVET and MSEs in Ethiopia a great effort is made by GTZ.Among development cooperation initiatives that are pursued by the GTZ in Ethiopia, private sector development is one. Since private sector development and employment promotion is one of the priority areas of intervention for GTZ in Ethiopia, a number of development programs have already been propelled in this connection. The objective of the EthioGerman cooperation in the priority area is to initiate economic development by stimulating income and employment generation through coordinated intervention in the fields of TVET and MSE development as well as privatisation. The approach of the Ethio-German Cooperation in the priority areas comprises of the following strategic aims sited in http://www.bds-ethiopia.net/approach-tvet.html

Diversify and increase the relevance and quality of TVET in order to make TVET responsive to the development needs of all economic sectors in Ethiopia; in particular the private industry, urban and rural MSE sector.

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Provide access to adequate TVET for all target groups in need of training, in order to improve the capabilities of these target groups to make use of existing income and employment opportunities.

Create a dynamic entrepreneur group as a partner in the economic development process thereby enhancing the contribution of the private sector to sustainable economic growth

Ensure ownership of all relevant stakeholders in the planning and implementation of major policy fields, in particular TVET, the privatisation policy and MSE promotion

Relieve tied resources and enable the Government re-deploy its scarce resources and the privatisation proceeds to higher priority sectors and poverty reduction programs

The TVET and SME projects have been cooperating for the fulfilment of certain objectives in the Ethio-German Cooperation of priority areas. In this connection, it can be cited that the MSE project which is involved in BDS facilitation, networking and the provision of capacity building support to public and private MSE promotional institutions is working in close collaboration with the GTZ-TVET program which is involved in system development, vocational school teachers training and assistance to Skills Development Centres (SDCs).

The unemployed youth that benefits from the program intervention of TVET is finally expected to join the private sector. Thus, there are various strings that connect the GTZMSE Project and the TVET Program. The two programs collaborate in the inclusion of CEFE training into the curriculum of the Skill Development Centres, and in the areas of labour market information to prospective graduates of the Skill Development Centres. While the GTZ-TVET program operates in the areas of skilled labour supply, the MSE Project works with those institutions that promote MSE sector operators. Hence TVET intervenes on the skilled labour supply side while the MSE Project works with the potential employers (private business operators).

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The strategy adopted by the TVET and the SME Projects is to bring all stakeholders that work in collaboration with the two Ethio-German Programs together and devise viable ways of linking skill training to employment in the MSE sector. By so doing. The interest and good will shown for networking in the two Ethio-German programs is apparently encouraging and expected to produce a synergy effect in the pursuit of economic development and employment promotion. 32 .The two programs have started some local network initiatives in some parts of the country. The objective of the network is to enable the skill trainees enter the private sector workforce. On the other hand the private business sector would enjoy more profit from the skilled labour input produced from the TVET system. additional employment and incomes would be gained for the trained youth. notably in Amhara and Tigray regions.

MSE heads and TVET leaders.CHAPTER THREE METHODOLOGY In this chapter the research design used. The reason for using this design is that it enables to describe the different factors that affect the performance of women entrepreneurs in MSEs as they exist.day contacts with women entrepreneurs. Top officials of these institutions (Dessie Micro finance manager. For selecting these samples of entrepreneurs. sample and sampling techniques The population of the study consisted of 2. From each sector. 3. 33 . the data gathering methods and tools. and W/ro Siheen TVET dean) were purposely taken and interviewed since the researcher believes that they know the condition better than others because of their day –to. stratified sampling was used in which the 5 key sectors that woman entrepreneurs are engaged was taken as strata so as to give equal chance to each of the sectors. MSEs Core process owner. For microfinance.2 Population. 3.026 women entrepreneurs who work in 5 sectors of MSEs. sampling and sampling procedures and the methods of data analysis are discussed very well. purposive sampling was used. So as to get a reasonable sample size. a 95% level of confidence and a 6.1 Design of the study A descriptive survey research design was employed in the study to assess the key factors that affect the performance of women entrepreneurs in MSEs in Dessie town. 10% of women entrepreneurs in MSEs were selected randomly using lottery method by taking list of respondents from the MSE’s office.5% confidence interval was used to select a sample of 203 Women entrepreneurs in these MSEs.

TVET and Micro finance leaders. The first part consists of demographic profile of the respondents which is designed in a close ended format. Table 3. gathering instruments and procedures Both primary and secondary sources of data were used for the study. In order to answer the basic questions raised. see appendix A) so as to not limit the response of respondents to some limited ranges. 3 Data sources. websites and literatures. Summary of women entrepreneurs’ population and sample taken Key Sectors population/strata sample Construction Textile Food &beverage Urban agriculture Municipality service Total 1098 132 424 248 124 2026 110 13 42 25 12 203 Source: Dessie MSEs office annual report (2001E. 34 . The second part covers the characteristics of women entrepreneurs in MSEs and their enterprises which is also prepared in a close ended format. The secondary data include information that are obtained mainly from different reports.C) 3. a 57 item questionnaire that has 4 parts was prepared. were gathered from various sources to complement the survey-based analysis. which are relevant to the theme of the study. address issues of key factors that affect women entrepreneur’s performance in MSEs and support areas of TVETs to MSEs respectively. The third and the fourth parts both designed using Likert scale.The following table summarizes the total population in each sector and the corresponding sample taken from each sector. The primary sources of data were questionnaires distributed to women entrepreneurs and interviews conducted with MSEs. bulletins. The Likert scale ranges from ‘strongly agree’ to ‘strongly disagree’ (5=strongly agree 4=agree 3=undecided 2=disagree 1=strongly disagree.

the questionnaire was distributed to the whole sample women entrepreneur respondents. Hence. In assuring the reliability and validity of the tests. 6 major questions were forwarded to W/ro Siheen TVET dean for 1.91 %( See appendix F). Based on the findings of the pretest and comments of language and measurement experts. 3. C and D). In addition. In addition.4 Methods of data analysis After the data has been collected. The demographic profiles and items related to characteristics of women entrepreneurs were analyzed using simple statistical tools such as tables and percentages. it was checked for grammar and other spelling errors using language and measurement professionals. Interviews in all cases were conducted in their offices and their responses were recorded (See appendices B. The respondents’ scores were summarized from the sheet and made ready for analysis. it was coded and fed to excel sheet so as to simplify further tasks. taking the number of items in the questionnaire and the characteristics of respondents.According to Yalew (2009). certain amendments were made on the questionnaire and lastly by giving the necessary orientations to respondents. Moreover. Furthermore. 4 major questions were raised to Dessie micro finance head for 45 minutes. Taking in to account the respondents educational background and to increase more understandability it was later translated in to Amharic and then distributed to 10 sample respondents (randomly 2 respondents from each sector using lottery method) to check whether what is expected to acquire is achieved or not as a pre-test. the researcher conducted structured interviews with top officials. Descriptive statistics (mean and standard deviations) of the respondent scores were computed for the Likert statements and analyzed by comparing these mean 35 . a predesigned 4 major questions and 4 sub-questions were conducted with MSEs work process owner for an hour. the value can verify the reliability of the testes. the pretest results shows a cronbach alpha value of 84.5 hours.Initially the questionnaire was prepared in English language based on the literature review and some adaptations from prior researches. it was analyzed using both descriptive statistical techniques and descriptive narrations. in order to get detail information from limited number of respondents. After that.

Finally. 36 . In interpreting the results for the likert questions.44 shows undecided and greater than 3.scores and deviations among respondents. the mean scores less than 2. The reason for using descriptive statistics is to compare the different factors that affect the performance of women entrepreneurs in MSEs by the means and standard deviations of scores. The interview questions were analyzed using descriptive narrations.45 implies respondents do not agree.45-3. scores 2. all these were followed by the necessary interpretations and discussions so as to achieve the desired goals.44 indicates agreement among respondents on the issues raised rounding results to the nearest two decimal places.

the demographic profile of respondents is analyzed and presented followed by the characteristics of women entrepreneurs in MESs. discussions are made based on the data presented and analyzed. Thirdly. This amounts 97. ANALYSIS AND DISCUSSION OF RESULTS This chapter presents and analyzes the data collected and discusses it accordingly. Of the totally distributed questionnaires (203). the data related to the factors that affect the performance of women entrepreneurs and the areas of support between TVETs and MSEs are presented and analyzed. 197 were properly filled and collected. Since this is adequate enough to make the analysis. Both are analyzed using frequency tables and percentages. Finally.1 Demographic profile of respondents The following table summarizes the demographic profile of respondents by age. work experience and marital status. educational level. First. the data collected in answering the basic questions are presented and analyzed. 4. 37 .CHAPTER FOUR DATA PRESENTATION. 4. Mean and standard deviations are used for the presentation and analysis of these parts.1 Presentation and analysis In this part.04% of the total respondents. all the discussions below are made on these groups of respondents.1.

19 6. majority of the respondents are within the age category of 31-40 years (40.81 100 45.92%). Age Below 20 21-30 31-40 Above 40 Total 2.18 28.77%).This is followed by those who completed grade 10th (19.26 27.90 46.24% of the respondents are within 1-4 grade levels and those reach 10+1 to10+2 levels respectively.20% and 7.77 17.09%).29%) and cannot read and write (17.92 19.52% that has a college diploma /10+3 and 38 .20 100 17. it is clearly seen from the table that most are within the grade level of 5-8 (27.09 40.Table 4. Educational level Can’t read and write Grades 1-4 Grades 5-8 Grades 10 complete 10+1 &10+2 10+3 /diploma BA/BSC & above Total 3. It is only 1.52 100 29.68 100 As can be seen from the table above. When we see the educational level of the respondents.26% and 16.21 11. Marital status Married Single Divorced Widowed Total Number 15 77 79 26 197 35 34 55 38 32 3 197 53 91 12 41 197 89 57 28 23 197 percentage 7.09 20.29 16.10 13.10%) followed by those under the category of 21-30 years (39.61 39. Respondents’ demographic profile 1.24 1.The remaining 13.61% of the respondents are under the age category of above 40 years and below 20 years respectively. Experience Less than 1 years 1-5 years 6-10 years Greater than 10 years Total 4.93 14.The table also shows that 17.

the table shows that majority of the respondents (46.68% of the respondents are divorced and widowed respectively. With regard to the work experience of the respondents.09% of the respondents have 6-10 years of service in their enterprise.27 42.90% and 20. It is also clear that 29.13 6.93%). sector they are working on.19%) have 1-5 years of experience in their work. the number of employees working in the enterprise.21% and 11. legal ownership status of the business. Family size The following table shows the family size of respondents Table 5.1.18%) followed by singles(28.there is no respondents who has a degree and above. who initiates the business idea.The remaining 14.81% of the respondents have an experience of less than one year and greater than 10years respectively. Family sizes of respondents Item Family size Less than 4 3-5 Greater than 5 Total Number 101 83 13 197 Percent 51. reasons to start own business. 4.2 Characteristics of women entrepreneurs in MSEs and women owned enterprises There are a number of distinct criteria that makes women entrepreneurs and their enterprises different from that of men entrepreneurs even though there are common elements. source of skill for starting the enterprise and source of starting fund. The following table shows the characteristics of respondents by family size. The marital status of the respondents shows that the majority are married(45.60 100 39 . The remaining 6.

The following table clearly shows the number of employees that women entrepreneurs in MSEs employ. Table 6.60% respondents that their family size is greater than 5. Sector The sectors in which women entrepreneurs are working in is depicted in the following table.11% and 2. 40 .54 54.54% respectively.04% of the respondents.27%) have a family size of less than 4.11 100 It is clearly seen from table 6 above that majority of the respondents (54. Number of employees in the enterprise Women entrepreneurs in MSEs provide a large numbers of employment opportunities to the society.13% of the respondents have a house hold size of 4-5.As can be seen from the table . The service sector accounts 36.04 7.31 36.majority of the respondents(51.31%) are engaged in the production sector.It is only the remaining 6. Item Sector Trade Production Services Hand-craft Other Total Number Percent 5 107 71 14 197 2. The hand crafts and trade take the remaining 7.The table also shows that 42. Sectors respondents engaged in.

Table 7.54% of the respondents hire from 11-15 employees and from6-10 employees respectively.02 13.47 100 As you can see from the table above.84% respond that they employ less than 5 workers in their enterprise. The table also shows that 10. majority of the respondents (64. Legal ownership status of the establishment Enterprises are created having different legal ownership statuses such as Sole ownership. Joint ownership.52 100 41 .13 1. Number of employees hired.54 10. Table 8. But 22.71 8.15 64.84 2. Item Number of employees in the enterprise Less than 5 5-10 11-15 more than 15 Total number 45 5 20 127 197 percent 22.The following table shows the respondents legal ownership status. Legal ownership of the enterprise Item Legal ownership status of the establishment Sole ownership Joint ownership/Partnership Family business Cooperative Other Total Number Percent 2 27 17 148 3 197 1. 2005).15% and 2. Family business.63 75.47%) hire more than 15 employees in their enterprise. Cooperative and others (Hisrich.

54% of the respondents establish their own business because they believe that it requires a small investment.64 2. The table below shows the initiators of women entrepreneurs to start own business.66 21. Table 9.14%) establish their enterprise in the form of cooperatives followed by joint ownership (13. Who initiated and started the business? It is common that some start their own business with their own initiation and some others establish enterprises with family or friends as a partner.79%) establish their own business for the reason that they have no other alternatives for income.32 9. Reasons to start own business The motivators to establish own business are many in number and vary from individual to individual.21.05 100 Table 9 above vividly shows that most of the respondent entrepreneurs (52. majority of the respondents (75.54 52.The least number of respondents have a legal ownership of sole proprietorship business (1.79 3.02%).71). 42 .As one can see from the table above.32% of the respondents start their own business since they want to be self employed. The following table shows the reasons that women entrepreneurs in MSEs are motivated to start their own enterprises. Reason to Start own Business Item Reasons to start own business Family tradition To be self-employed Brings high income Small investment is required No other alternative for incomes Others Total Number Percent 21 42 19 5 104 6 197 10. Only 2.

35%) start enterprises with their own initiation.Table 10. Similarly.84 6. 43 . it is logical that the necessary skills are required. Initiators and starter of the business Item Who initiated and started the business Myself alone With the family With a friend/partner Other TOTAL Number Percent 111 45 13 28 197 56. Source of skill for running your enterprise In running any business. 22.60% of the entrepreneurs establish business with an initiation of a friend /partner. The following table shows the respondents source of skills to run their enterprises.21 100 The above table clearly depicted that majority of the respondents (56. These skills can be acquired from different sources.35 22.60 14. It is only 6.84% of the respondents start businesses with their family initiation.

81 Other 17 9.05 197 100 TOTAL 2. The following table shows the main sources of start-up fund.51% respond that their brother is an entrepreneur.64 197 100 Total It is possible to see from the table above that.51 Sister 7 11.91% of the respondents acquire the necessary skill for their business from formal trainings. The main source of start-up funding Starting own business requires a starting capital rather the mere existence of ideas.64 From family 41 20.81% of the entrepreneurs acquire their skills from their family.95 No 138 70.39 59 100 TOTAL 3. 70. Moreover.64% of the respondent entrepreneurs acquire the skill from sources other than those stated. It is only 3. Source of skill for running your enterprise Through formal training 120 60.39% who have an entrepreneur grandfather. It is also indicated in the table above that 60.20. If yes. 30. what is your family relation with him/her Father 24 40. Of those women who respond of having an entrepreneur family. Item 1 Is there anyone in the family who was entrepreneur Number Percent or owner of some related business activities? Yes 59 29. Family entrepreneurial history and source of skill for starting the enterprise No.3 Brother 18 30.05% of the entrepreneurs respond that they have no family member who was an entrepreneur. It is only 29.68 Mother 9 1.95% who have an entrepreneur in their family.Table11. 40. 44 .84 Grandfather 2 3.68% said that their fathers are entrepreneurs.91 From past experience 19 9. Similarly. Only 9.

1. Economic factors The major economic factors that affect the performance of women entrepreneurs include finance. information.66 3. 45 .66% of the entrepreneurs use personal saving as their main source of start-up funding. infrastructures and raw materials (Samit. Source of startup funding Item Personal saving household Borrowed from relatives or friends/money lenders Micro-finance institutions Equb Assistant from friends/relatives Inheritance Borrowed from Bank Assistant from NGO’s Others Total Number 21 9 1 153 7 3 3 197 Percent 10.3 Factors affecting women entrepreneur’s performance in MSEs There are a number of challenges that affect women entrepreneurs in MSEs associated with different factors. The table above shows that (0.52 1.66 4.Table12. 4. market. Women entrepreneurs in MSEs do not use banks and NGOs as a source of financing their business.66%) use micro finances as main source of start-up funding in financing their enterprises. 2006). training.57 0. The following table shows the major economic factors the affect these entrepreneurs.51%) of the entrepreneurs finance their business borrowing from relatives/friends. land. It is also clear that 10.52 100 The table above shows that majority of the respondents (77. managerial skills.55 1.51 77.

1 I am satisfied with the financial access given by 1.58 1. It seems that these women neither agree nor disagree on the market condition of their products.1 Grand mean/standard deviation It is discussed in table 12 above that microfinance are the main suppliers of finance for women entrepreneurs in MSEs.93 1.Table 13.4 I have my own premises (land) to run my 1.85 1. Economic factors that affect the performance of women entrepreneurs in MSEs MEAN STANDARD Rank of No. Item DEVIATION Severity 1 Economic factors 1.24.34.34 2nd micro finances and other credit institutions.17 1.9 Adequate infrastructures are available 3.2 I have a better access to market for my products 2.30 7th 1.92 1.18 1.29 5th 1.7 I have access to necessary technologies 2.14 3rd that I am engaged in.27 6th 2.6 I have managerial skills 2.93 with a standard deviation of 1.5 I have an access to information to exploit 3.37 9th 1.10 I have access to necessary inputs(raw materials) 2.3 A have better access to different business 2.8 There is no stiff competition in the market place 2.the average score of the respondents with regard to satisfactory financial access is ‘disagree’ with little deviations among them.28 1st business 1.53 8th 1.24 4th trainings 1. 46 .38 10th business opportunities 1. Most women entrepreneurs in MSEs acquire their skills for establishing their own business from formal trainings (See table 11).17and standard deviation of 1. But table 13 shows that women entrepreneurs in MSEs are not satisfied with the financial access given by micro finances and other lending institutions. 1.69 1. the access for different business trainings for the women respondents is low with a mean of 2.19 1.But as the table above shows.12 1.49 0. It shows a mean score of 1.85) and standard deviation (1.53) in the table above show. 1.Therefore.59 1. As the mean score (2. the market access of the respondents entrepreneurs is almost undecided.

The response shows a mean of 1. the mean scores (1. These are good indicators of socio-cultural influences on individuals running their own business. these women entrepreneurs respond that they have a better access to information to exploit different business opportunities. Socio-cultural factors It was common to hear the bad names such as “buda”.30).27. the respondent entrepreneurs agree on their better access to information.59) and standard deviations (1.”shemane. Table 13 above shows that the respondent women entrepreneurs in MSEs do not have their own land to run their businesses. The following table shows the 47 .19 and standard deviation of 1. Lastly.28.12 for market competition) and the standard deviations (1. This is justified by the mean score (2.29 for technology and 1.37) shows that. With regard to technological access and market competition. However.92 with a standard deviation of 1.69) and standard (1. the respondents do not like to decide on it.58) and the standard deviation (1. In relation to their managerial skills in running their business.18 for technology access and 2.38) clearly depicts. the scores for the availability of necessary raw material/inputs in the table above show that the respondent entrepreneurs do not agree with their access to these inputs with a mean of 2.One success factor for an entrepreneur is having own premises such as land (Hisrich. The mean scores (3. 2005). the respondent women entrepreneurs in MSEs agree on the availability of the necessary infrastructures around their working areas. As the mean score (3.14 for competition) shows that respondents do not agree with a better technological access and with the idea that there is no stiff competition for their products.”ketkach” and others given to different entrepreneurs in Ethiopia.

6 I have a positive relationship with the workforce 3.They do not agree on the idea that they have a better social acceptance.5 The attitude of other employees towards my business is 3.12 1.32).28).26 1.4 positive 1.87 1.55 1.12 Grand mean/standard deviation Remark 2nd 3rd 5th 4th 7th 10th 1st 6th 9th 8th The mean scores(2. Socio-cultural factors that affect the performance of women entrepreneurs in MSEs No.10 I never encounter harassments in registering and 3.4 1.02 1. On the other hand. Table 14.48 1.62 1. in relation to the attitude of other employees towards their business and the relationship that these women entrepreneurs have with their employees. Item Standard Mean deviation 1 Socio-cultural factors 1. The mean scores 3.96 1.current states that these factors have impacted women entrepreneurs in MSEs. However.28 1.21 1.62 48 . Similarly.18 0.08 1.08) and standard deviation(1.82 1.1 I have better social acceptability 2.1 1.9 I have no cultural influences 3.13) of the respondents in table 14 shows that women have no better social acceptability .46 positive 1.31 operating my business 3. the respondent women entrepreneurs in MSEs do no not like to decide on idea that the attitude of the society is positive.13 1.3 I have no prejudice or class biases 3.43 1. the respondents have a positive relationship with their employee and the attitude of the employees towards the business is positive too.Similarly.4 The societies attitude towards my products/services is 3.2 I have better contact(network) with outsiders 2. the contact (networks) that women entrepreneurs in MSEs have with outsiders is low too with a mean score of (2.48) and standard deviation of (0.32 1. they approach to agree in the idea that they have no prejudices or class biases with a mean of (3.7 I have no conflicting gender roles 2.8 I am not affected by gender inequalities 3. with regard to the attitude of the society towards their products/services. the table above shows that.12) and standard deviation of (1.

The mean scores (2.96 and standard deviations 1. the impact of legal and administrative influences is not to be undermined.02) and standard deviations (1.1 for attitude of employees and relationship with employees respectively clearly strengthens this idea.31 for cultural influences and harassments respectively.43 that there are no gender inequalities. The following table displays the key legal and administrative factors that affect the performance of women entrepreneurs in MSEs. 49 .and 3.4 and 1. This is justified by the mean scores 3. But. Legal and administrative factors Of the different factors that hinder entrepreneurial performance. Similarly they agree on the issues that cultural influences and harassment problems are very low. cultural influences and harassments are not serious problems for women entrepreneurs in MSEs as the table above shows very well.21) in the table above shows that there are different conflicting gender roles for the respondent women entrepreneurs in MSEs. these respondents do not agree with the idea of having conflicting gender roles. issues of gender inequality.82 with a deviation of 1. The respondents agree with a mean of 3.87 and 3.55 and standard deviation of 1.4 and 1. By the same taken.

The mean score (3.06 rank of severity 9th 1st 2nd 8th 10th 4th 5th 7th 6th 3rd Tables 15 above clearly portraits the respondent women entrepreneurs in MSEs have business assistant and supports from government bodies.3 I have access to policy makers 1.10 The tax levied on my business is reasonable Grand mean/standard deviation 3.28 for net work with outsiders and access to policy makers respectively.1 I have business assistants and supporters from government bodies 1.41 1.9 In general the overall legal and regulatory environments favorable.53 3.13 1.32 1. Even though this is the case. The mean (3.4 I have no legal.29 0.5 I can borrow money even without titled assets as a collateral 1. 1.42) and (1. The mean scores and standard deviations clearly show their disagreement. institutional and policy constraints 1.28 1.42 1.8 I am beneficiary of government incentives 1.22 1.94 1.36 1.2 I have a network with different administrative bodies 1.6) and the standard deviations (1. these women entrepreneurs disagree with the ideas of having network with administrative bodies and access to policy makers.85 and 1.57) and standard deviations (1.23 1. institutional and policy constraints.97 3.48 2.41) shows that these entrepreneurs agree with the issue that they have business assistants and supports from the concerned government officials.53) and (3. Similarly they agree on the idea of borrowing money even without collaterals.57 1. That is means of 1.6 1. To the contrary.4 1.7 I have never encountered bureaucracies and red tapes 1.59 1. agreements are seen among the respondents in relation to the inexistence of legal.9 3.6 Interest rate charged by micro finances and other lending institutions is reasonable 1. Legal and administrative factors that affect the performance of women entrepreneurs in MSEs No.23 and 1.36) for the constraints and collateral matters respectively support the ideas.12 1. 50 . Item Standard Mean deviation 1 Legal and administrative factors 1.Table 15.9 and standard deviations of 1.93 2.85 1.

22) and (1. 4.13 and standard deviation 1.32). The disagreement on the reasonability of the interest rates and tax amount is justified by the calculated means (1. legal and administrative factors affect the performance of entrepreneurs.1 0.06 1st 3rd 2nd Rank 51 .49 3.94) and (1.As opposed to this. With regard to government incentives and the favorability of the overall legal and regulatory environments the mean scores 3.12 0.59 Standard deviation 0. social.48 and 2.12 implies that even if there are government incentives. Comparison of the major factors affecting women entrepreneurs’ Performance item Grand Grand Severity Mean No.1. the overall legal and regulatory environments are not as such favorable. the table shows that the interest rate charged by borrowing institutions and the tax levied on entrepreneurs is not reasonable.4 and 1. Table 16.4 Comparison of factors that affect women entrepreneur’s performance in MSEs Even though. Factors 1 2 3 Economic Factors Scio-cultural factors Legal and administrative factors 2.93) and standard deviations (1. this does not necessarily mean that all have equal impact. In addition the respondents ‘disagree’ that bureaucracies and red tapes do not affect their performance with mean of (1.29) for interest and tax amount respectively.97) and standard deviation of (1. The following table clearly compares the overall impact of all the key factors discussed in detail above.18 2. all the economic.

37 0.1.82 1.18) and grand standard deviations (0. legal and administrative factors as the grand mean (3.59) and a grand standard deviation of (0. Table 20.49 rank of supports 8th 6th 7th 5th 12th 3rd 2nd 10th 9th 1st 11th 4th 2.5 Supports given by TVET institutions to women entrepreneurs in MSEs Even though TVETs are not expected to tackle all the problems that women entrepreneurs in MSEs face.15 1. By the following table. Item Supports given by TVETs to MSEs Training support 1 TVETs provide entrepreneurship training to MSEs 2 TVETs provide marketing training to MSEs 3 TVETs provide planning and financial report training to MSEs 4 TVETs provide machine maintenance training to MSEs 5 TVETs provide customer service training to MSEs 6 7 8 9 10 11 12 TVETs provide technical skill training to MSEs Machine support TVETs provide machine maintenance service to MSEs TVETs provide machines support(gifts) to MSEs Financial. Summary of the Supports Given by TVETs to MSEs No.65 Standard deviation 1.16 1.98 1 1. 4.61 0. it is tried to assess whether TVETs are providing the required supports to MSEs or not. technology.88 1.79 3.08 1.22 1. raw material and facility supports TVETs provide Financial supports to MSEs TVETs provide Technology supports to MSEs TVETs provide Raw material supports to MSEs TVETs provide Facility(such as transportation) and furniture supports to MSEs Grand mean/standard deviation 52 Mean 1.92 1.93 3.96 1.37 0.74 3.06).49) and grand standard deviation (0.85 1.The grand mean (2.98 1.23 . The table also shows that the impact of the socio-cultural factors is better than the economic.87 1.84 3.76 3.45 1.1) in the above table clearly depicts that the economic factors are Sevier than the others followed by the legal and administrative factors that has a grand mean of (2.12) clearly depict.62 0. there are some supports that can be taken as a responsibilities of TVET colleges and institutes.

respondents’ agreement is weak in relation to the idea that machines created/copied with in TVETs are 53 . About technical skill trainings respondents agree that training is given.85) and standard deviation (1. the mean (3.76) and standard deviations (0. It is clear in the table above that machine maintenance services are given to MSEs through TVET colleges / institutes. planning and financial report training are not given to them by TVET institutions/colleges. TVETs are providing entrepreneurship training to the youth. The mean (1. knowledge and attitudes through formal. respondents agree that marketing.Similarly.74) and the standard deviation (1. The mean (3. Entrepreneurship training enables individuals create to own businesses rather than seeking employment in any organization. they are expected to equip trainees with the necessary skills. indeed less than agree.96) and (1. The mean (3. the supports in the areas of machine maintenance and technical skill trainings seem better as the table above portrays very well. Even though this is the case.62) depicts that the respondents’ agreement scale is more than undecided. The mean (1. A support to MSEs in relation to customer service is also weak.92) in table 17 clearly shows that respondents do not agree with customer service trainings supports from TVETs.08. However. Regarding machine maintenance trainings. informal or non formal basis.93) and standard deviations (1. To strengthen such a culture.45) confirm this idea. women entrepreneurs in MSEs do not agree with the provision of entrepreneurial training to them with a mean of 1.As TVETs are training centers.87 and standard deviation of 1.37) shows the agreements among respondents in acquiring this service.22) and standard deviation (1. However.16) and (1. TVETs as producers of different technicians are expected to support MSEs by providing them different machines created/copied within the college /institution and help in maintaining machines that encounter problems.15) for marketing and plan/report respectively are good indicators of this.

4. the committee has a regular meeting period.to give financial supports and municipalities -to make premises(land) available to them.65) and standard deviation of (1. TVET leaders and micro finance managers indicate. municipality mayor. 54 . TVETs are also expected to support in finance.given to women entrepreneurs in order to support them.23 ) in the table show.37) and (1. the respondent entrepreneurs do not agree with the provision of financial and raw material supports given through TVETs. TVETs -to provide the necessary trainings to the selected entrepreneurs. It was designed that MSEs-to perform the recruitment and selection of entrepreneurs in MSEs. The means (1. raw materials and facilities.84) and (1. plan tasks together and follow up their achievement jointly.6 Co operations among MSEs. As the interview results show. This is strengthened by the mean (1.37) and (1. Nevertheless.98) calculated in the table above. the respondent women entrepreneurs agree with a mean (3. micro finances. As one stakeholder in strengthening women entrepreneurs in MSEs.49) clearly depict that supporting women entrepreneurs in MSEs financially and raw material wise is not common. it was targeted to use them as main tools in reducing poverty through the cooperative efforts of TVETS. micro finances and municipalities as the interview conducted with heads of MSEs. TVETs and Micro Finances When MSEs come in to idea. Table 17 above shows that. MSEs Process owner and micro finance manager) was formed. To conclude.82) and standard deviations (0.79) and standard deviations (1.61) and grand standard deviations (0.49) that technology and facility supports are given to them by TVETs. a common string committee that includes members from all (college dean.1. the overall supports given to women entrepreneurs in MSEs through TVETs is below average as the grand mean (2. technology. In order to achieve these shared responsibilities.88) and (3.

trainers overloads and lack of incentives given to them as main ones. The dean also added that disciplinary problems were observed among the trainees. still is not satisfactory and focus on some technical aspects rather than including business matters too. This seems a problem observed from the side of the municipalities as it is its responsibility. They faced problems such as screening the same trainees for different training programs at different times even though there are others waiting for their turn. the process owner added our trainees are forced to return back before completing and sometimes at the beginning of the training sessions. Because of these. a lot of problems were faced associated with different internal and external factors from all stakeholders. With regard to financial matter. those women entrepreneurs organized by MSEs have problems in 55 . the dean commented that MSEs use of one kebele system (cooperative member trainees should be from one/same kebele) and limiting the minimum number of cooperative member in to 10 are the reason for the occurrence of such a problem. This problem is associated with micro finances in that financial arrangements are their responsibilities.However. For this. machines and budget problems are stated as reasons by the process owner. As discussed in table 3 women entrepreneurs have no their own premises (land) to run their business. the interview conducted with the dean shows that there were problems in recruiting and selecting candidates for training in the side of MSEs. The dean stressed that proper selection mechanisms were not used in screening the candidates. In their criteria of screening. the dean of W/ro Siheen College of TVET responds that it is a problem of attitudinal change among teachers by associating everything with incentives. The MSEs work process owner complain that trainees will not acquire the required trainings from TVETs . when that come in to practice. In addition shortage or raw materials. In relation to the training supports given by TVETs.He states reasons such as shortage of trainers. an interview conducted with Dessie micro finance manager shows that. The table also shows that the financial access of the respondents is weak. Similarly. These problems are also reflected in borrowing money from micro finances.

in that members in a group will be responsible for problems created by any of the members in the group. since these entrepreneurs do not have fixed assets that serve as a collateral. Of course. The fact that these entrepreneurs are daughter of self employed father shows that women entrepreneurs in MSEs are not significant in number in the business arena. Because of this the manager added they are forced to stop lending to women entrepreneurs in MSEs.returning what they have borrowed. married with children.2 Discussion Birley (1987) found that the background and personal characteristics of women entrepreneurs in MSEs in that they are from a middle or upper class family. with relevant experiences. educated to degree level. In addition. it is also possible to guess from the fact that women entrepreneurs are married that they may have conflicting gender roles such as keeping kids since in our country context most of these responsibilities are left to women. the daughter of a self employed father. The problem with such a system is that one is an agent for the other. By the same logic. However. women entrepreneurs in MSEs are daughters of self employed father and are married. the national bank will not allow the money to lend to such “risky borrowers”-what the manager call them. 56 . forty to fort five at the start up and having the relevant experiences contradict with the Birley’s findings. 4. the idea that these entrepreneurs are from a middle or upper class. This is because the number of respondents having a self employed mother or sister is insignificant. group lending system is used. As the manager pointed out if collection capacity of the institute is below 70%. In support of Birley’s findings. his findings may work in most developed countries. educated to degree level. Their total applicability in developing countries like Ethiopia is questionable. The manager complained that they observe even borrowers that hide themselves after taking the money. forty to fortyfive at start-up and.

This shows that the entrepreneurs run their business by common sense than supporting it with scientific principles. Similarly. Besides this. In relation to family size. Similarly. All these can lead to the conclusion that. the openings of Micro 57 . and legal/administrative factors. This is because. they would not have seen starting own business as a last resort. had these entrepreneurs be from such a family. it is also possible to deduce that women entrepreneurs in MSEs in Dessie are in the age categories of 31-40 and join the business without adequate experiences. the finding matches with the report.This is contradictory and needs further investigation. social. Hence. have no self employed mother/sister. the maximum educational level that these entrepreneurs reach is 8th grades. Regarding their age and experience. the fact that they are less experienced in their areas of work may negatively affect their performance. this study found that the majority women entrepreneurs have a family size of less than 3 which is even less than the average family size in Ethiopia that is 4. the entrepreneurs are organized under cooperatives and use micro finances as main sources of funding. However. This implies women entrepreneurs in MSEs in Dessie town are youngsters and within the productive age that can contribute a lot for their performance. This shows the production sector is increasing at an alarming rate and opens an opportunity of employment to a large number of individuals.One can reach to the conclusion that women entrepreneurs in Dessie are not from a middle or upper class. even though Shane (1997) and ILO (2003) found that women entrepreneurs have an average larger family size. the personal characteristics of these entrepreneurs can contribute to their low performance in addition to the economic.8(CSA. As this study shows. UNECE (2004) reported that MSEs have a better employment opportunity than even that of larger ones. have low educational background and are not experienced in business. 1995). It is discussed above that women entrepreneurs are married. most women entrepreneurs in MSEs in Dessie are engaged in the production sector and employ more than 15 individuals within them.

58 . With regard to socio-cultural conditions. Tan and SMIDEC. Some of the findings of this study go in line with these and some others go against. 2005). World Bank (2005). this study found that infrastructures and access to information are not problems of women entrepreneurs in MSEs in Dessie town. certain changes may be seen in between. knowledge and experiences for one common goal which is organizational success (Hisrich. lack of social acceptability and network with outsiders are the Sever factors that affect women entrepreneurs in Dessie. financial problems. Besides to the above justifications. conflicting gender roles. these problems may not be observed as compared to women entrepreneurs in rural areas. In contrast to the findings of World Bank. ILO (2003). since the study is conducted in Dessie town. since the studies were done some years before. First. gender inequalities. class biases. Secondly. The performance of women entrepreneurs in MSEs in Dessie town are highly affected by economic factors such as lack of own premises (land). This may be attributed to different reasons. However.Samiti (2006). social/cultures and legal/administrative factors. attitude of employees towards the business and harassments are not problems of entrepreneurs in the town in contrast to other researcher’s findings. ILO Samiti. the reasons for such changes may be better access to media and other facilities that may change the society’s attitude. Cooperatives give these entrepreneurs an opportunity of sharing skills. lack of technology and raw material.finances allow women to be organized under cooperatives for the purpose of acquiring finance even without collaterals. Tan (2000) and SMIDEC(2004) addressed that women entrepreneurs in MSEs are affected by a number of economic. stiff competition in the market. inadequate access to trainings.

issues related to government incentives. technical skill trainings. legal. marketing trainings. entrepreneurship trainings. All these are joint responsibilities among these stakeholders in bringing women entrepreneurs in MSEs in to high performance. bureaucracies and red tapes and the overall legal and administrative environmental factors are the serious problems of women entrepreneurs in MSEs in the town. TVETs. the problems identified in this research shows that all are not doing what is expected of them. machine gifts. That is the municipalities in providing working premises (land). MSEs and micro finances institutions/college are seen in different towns. assistance and support from government bodies and request of collateral for borrowing money are not found to be problems of women entrepreneurs in MSEs. the TVETs in training entrepreneurs. access to policy makers. but the attitude of the society towards women entrepreneurs seems to be relatively changed. This implies. This indicates that TVETs are emphasizing on technical trainings. That is why the researcher concludes that much is not done in this regards. financial supports. the impact of globalization is reflected in women entrepreneurs in MSEs. But. network with administrative bodies. and machine maintenance trainings. They do not give a comparable value to business trainings and other supports. 59 . From the major factors that affect the performance of women entrepreneurs in MSEs. raw material supports and customer service trainings are weak. amount of tax and interest rate charged. facility supports. machines. The supports that TVET institutes/colleges provide to women entrepreneurs in MSEs are stronger in the areas of technology.In relation to legal/administrative issues. and MSEs in recruiting and selecting the youth. the impact of the economic environment is significant even though the influence of social factors is minimal. This highlights that there are some beginnings in encouraging women entrepreneurs in MSEs even though this is not believed to be satisfactory. Therefore it is possible to conclude that. instructional and policy constraints. plan and reporting trainings. the micro finances in providing financial supports. In the contrary. even though the establishments of different municipality services.

Moreover.1%) and educational level of 5th -8th grades (27. micro finances and TVET educators. conclusions are drawn based on the findings and recommendations are forwarded for the concerned bodies. • Majority of the respondents have a family size of less than 4 (51. • Most of the respondent women entrepreneurs are under the age category of 31-40 (40. the major findings are summarized. characteristics of women entrepreneurs and their enterprises. structured interviews were held with top officials of MSEs.92%) with a working experience of 1-5 years (46. the major findings of this study are summarized as follows.Based on 197 respondents and interview results acquired from the concerned officials. Moreover. hire more than 15 employees within their organization (64.CHAPTER FIVE SUMMARY.It was also tried to address the characteristics of women entrepreneurs in MSEs and their enterprises and the supports they acquire from TVET colleges/institutes. CONCLUSION AND RECOMMENDATIONS In this chapter. After the data has been collected. engaged in the production sector (54. factors that affect the performance of women entrepreneurs in MSEs and supports MSEs acquire from TVETs was designed in a closed ended and likert scales.19%) and their marital status are married (45. majority of the respondents start their own business for the reason that they have no 60 . it was designed to assess the factors that affect the performance of women entrepreneurs in MSEs .27%).17%) and the legal ownership establishment of their enterprises is in the form of cooperatives (75. A sample of 203 women entrepreneurs engaged in 5 sectors was taken for the study using stratified and simple random sampling.31%). In the process of answering the basic questions.18%). a questionnaire that include demographic profiles. it was analyzed using simple statistical techniques (tables and percentages) and descriptive statistics (mean and standard deviations).1 Summary In this study.13%). 5.

05%).37). interest rate charged.d=1. Besides this.38) are not serious economic problems for these entrepreneurs.21).d=1.02 & s.d=1. bureaucracies and red tapes.14).d=1. most of them have a self employed father (40. they have no entrepreneurial family (70.d=1.28).93 & s.d=1.d=1. lack of access to technology.48 & s.68%).43).23). and access to information ( X =3.62 & s. gender inequality ( X =3.85 & s.66%). lack of financial access ( X =1. harassments and relationship with the workforce are not as such problems that affect the performance of women entrepreneurs. • The major legal and administrative factors that affect the respondent women entrepreneurs in MSEs according to their severity order are lack of network with administrative bodies( X =1. institutional and policy constraints.69 & s.93&s. over all legal and regulatory environments.Similarly.59& s. prejudices or class biases ( X =3.32). stiff competition in the market. access to policy makers( X =1. inadequate access to training.4). ( X =2. attitude of employees to the business ( X =3. amount of tax levied( X =1.79%).34). most of these respondents start their own business by their own initiation and acquire the necessary skills through formal trainings (56. assistant and support from government bodies and request of collaterals are not problems.13). • The major economic factors that affect women entrepreneurs in MSEs according to their severity order are lack of own premises or land ( X =1. and raw materials.d=1.55 & s.12 & s. Of those that have an entrepreneurial family. government incentives.other alternatives (52. legal.28). 61 . However.9 & s. Infrastructure problems ( X =3.92&s. • The major socio-cultural factors that affect the respondent women entrepreneurs in MSEs in Dessie town according to their severity order are Conflicting gender roles ( X =2.d=1.35%).08 & s.d=1. Social acceptability and Contact (network) with outsiders ( X =2.d=1.d=1. Nevertheless.d=1. The main source of startup fund for majority of the respondents is micro finances (77.29).

d = 0. Even though socio-cultural factors are minimizing in towns like Dessie.raw material supports and customer service trainings are relatively weaker.18 &grand s. 5. attention might not be given by women entrepreneurs. plan and report preparation trainings( X =1.96 & s. micro finances and municipalities is very weak as the interview results show.2 Conclusion The characteristics of women entrepreneurs in MSEs of Dessie town shows that they have no entrepreneurial family. MSEs are becoming an important area of emphasis for many developing countries in general and to Ethiopia in particular. • The supports that women entrepreneurs in MSEs acquire through TVET according to their degree of support include: technology support ( X =3. or even though it is given.45) facility supports and machine maintenance trainings. • The cooperation among MSEs.d = 0.d = 0.1) followed by legal/administrative (grand X =2. ( X =3. machine supports(gifts). economic and administrative challenges are still tremendous.15). entrepreneurship trainings( X =1.12) respectively. This can be associated with the effects of 62 .d = 1. From this.74 & s. it may focus on theoretical concepts than deep-rooted practical trainings. it is possible to infer that the entrepreneurship trainings is not given to women entrepreneurs in the town.06) and socio/cultural factors (grand X =3.• Of the major factors that affect the respondent women entrepreneurs in MSEs. But supports in the areas of marketing trainings ( X =1.37).d =1.59 &grand s.16). Or even if it is delivered practically. Even if this is the case.d = 1. TVETs. technical skill trainings.85 & s.37).08).88 & s.d = 1.93 & s. they take entrepreneurship as a last resort and others. financial supports.87 & s.d = 1. women entrepreneurs in MSEs still contribute for the countries development.49 &grand s. primarily for its immense potentials as a source of employment given that there are a number of factors that affect their performance. economic factors take the leading position (grand X =2. machine maintenance service ( X =3.d = 1.

social/cultural and legal/ administrative bottlenecks they face. it would be unthinkable to get jobs easily because of the serious competition throughout the world. depends on the quality of the productive workforce the country has. women entrepreneurs in MSEs should search for other alternative supporting agents rather than relaying only on TVET institutions. Micro Finances Institutes and TVET Institutions. make own boss. This is because starting own business creates sense of independence. For the MSE sector to be vibrant and serve as a springboard for the growth of a strong private sector in Ethiopia a TVET system that supplies disciplined and quality workforce can be considered as one of the necessary conditions. Whatever is produced in the economy to be competitive. they should also approach known individual 63 . 5. existing and potential entrepreneurs should not see it as a last resort. both in the domestic and international markets. A country with poor human capital has the least chance to develop even if huge capital outlays are invested in all other productive sectors. in the time of globalization. Besides this. to tackle the different economic. women entrepreneurs should make lobbies together to the concerned government officials by forming entrepreneurs associations.3 Recommendations Based on the findings of the study. Besides this. give time and financial freedoms. flexibility and freedom. To existing and potential women entrepreneurs in MSEs: Even though entrepreneurship is not free of risks. The production of trained workforce is as important or even may be more important than the production of goods and services. to MSEs. micro finances and MSEs offices in improving their performance and solving problems. For example. This obviously calls for a TVET system that supplies the business sector and/or the whole economic system with a quality workforce that efficiently uses and produces resources. Moreover. the necessary recommendations are forwarded to existing and potential entrepreneurs.globalization that may create intense competitions in the market and poor performances for those entrepreneurs that cannot easily cope up with changes.

keeping the minimum number of members to form an association in to 10 is not reasonable. Hence institutes should allow individual lending systems. rather members’ skill compositions. To Micro finances: Micro finance institutes should change the practice of “group lending system” since members in a group cannot have the same thinking level. Women entrepreneurs in MSEs of the town should share experiences with other entrepreneurs in other towns and regions so that they can learn a lot from best practices of those entrepreneurs. This has yet to be achieved despite the proliferation of microfinance institutions alongside the MSE strategy.They should also arrange mechanisms through which women entrepreneurs in MSEs can easily access administrative bodies and policy makers so that they can be beneficiaries of different governmental incentives such as tax exemptions. because what matters in not their number rather their willingness and their relationship among themselves should also be considered. Some microfinance 64 . decreasing interest rates on loans etc. their ethical attitudes and commitment to work should also be taken in to account. Being in one/the same kebele should not be a criterion to form a cooperatives association. the minimum number of members to form a cooperative should also be revised. Lastly. In addition Credit services need to be reviewed in order for them to be accessible to small enterprises with limited capacity. Micro-finances should also minimize the interest rates that they charge to women entrepreneurs in MSEs so as to strengthen their entrepreneurial sprit. banks and other supporting organizations. Besides this.entrepreneurs. NGOs. To MSEs heads: MSEs Heads should design a different screening mechanism while selecting candidates rather than using “one kebele member system”. The procedures for securing loans must be simplified or greater support offered by the lenders to support SMEs. Furthermore. MSEs should also discuss with municipalities and other administrative bodies to make women entrepreneurs owners of working premised(land). attitude and commitment as there are personal differences.

TVET institutes/colleges should also be involved the recruitment and selection of candidates rather than making it as a sole responsibility of MSEs. Hence TVET institutions/colleges should provide both technical and business trainings to MSEs so that these entrepreneurs can with stand competitions. Besides that entrance exams should be given to candidates to proactively avoid unnecessary costs by receiving individuals with poor attitudes. it should be supplemented with business trainings to improve the “breads” in to “cakes”.institutions also need to be sensitized to the nature of SMEs and the sustainability of their businesses. develop entrepreneurial sprits. improve managerial skill in such a competitive world. 46 To TVET educators: Even though technical skills trainings are of great importance to eat “breads”. 65 .

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APPENDICES 70 .

Can’t read and write B. Greater than 10 years 71 c. 31-40 d. Grades 5-8 D. 21-30 Years 2. Below 20 Years B. Note: No need of writing your name PART 1: DEMOGRAPHIC INFORMATION 1. 1-5 years C. In addition the researcher would like to be grateful to the respondents the sacrifices they paid in completing this questionnaire. 10+3 /diploma G. Above 40 . 6-10 years D. Work experience A.APPENDIX A BAHID DAR UNIVERSITY DEPARTMENT OF EDUCATIONAL PLANNING AND MANAGEMENT GRADUATE PROGRAM IN TVET MANAGEMENT This questionnaire is designed to investigate “the factors that affect women entrepreneurs’ performance in MSEs. Age A. Grades 10 complete E. Level of education and training A. Grades1-4 C. 10+1 &10+2 F.”The researcher kindly reminds the respondents (Women entrepreneurs in MSEs) that the response given by them will be used only as an input for the research work. BA/BSC and above 3. Less than 1 years B.

Hand-craft E. D. Family size A. B. Number of employees in the enterprise? A. Production C. 4-5 C. Married B. Sole ownership Joint ownership Family business Cooperative Other (specify) __________ 72 . Services D. Less than 5 B. Other (specify) _____________________________________________ 7. 11-15 D. Single C. What is the legal ownership status of the establishment? A. Divorced D. C. What sector is your business in? A. Widowed PART 2: CHARACTERSTICS OF WOMEN ENTREPRENEUNERS IN MSEs AND WOMENN OWENED ENTERPRISES 5. Less than 3 B. Marital status A. 6-10 C. E. Trade B.4. more than 15 8. More than 5 6.

Family tradition B. Assistant from friends/relatives G. Equb F. If yes. Borrowed from relatives or friends/money lenders D. Borrowed from Bank I. Others (Specify) ---------------- 10. Is there anyone in the family who was entrepreneur or owner of some related business activities? A) Yes B) No 13. With the family D. what is your family relation with him/her? A) Father D) Sister F) Grandmother B) Mother E) Grandfather G) Husband H) Other (specify) C) Brother 14 What was your main source of start-up funding? A. Personal saving B. Brings high income D. Others (specify) _________________________ 73 . With a friend/partner C. Myself alone B. Assistant from NGO’s J. Who initialed and started the business? A. How did you acquire the skill for running your enterprise? A) Through formal training C) From family B ) From past experience C) other (specify) 12. To be self-employed C. other (specify) 11. No other alternative for incomes F.9. Small investment is required E. Inheritance H. Why did you prefer to start your own business? A. household C. Micro-finance institutions E.

6 I have a positive relationship with the workforce 3=undecided 2=disagree Item 1 1=strongly disagree Agreement Scale 2 3 4 5 remark 74 . evaluate them in relation to your business and then put a tick mark (√) under the choices below. The major factors that affect women entrepreneurs’ performance in MSEs are listed below.4 Adequate infrastructures are available I have access to necessary inputs(raw materials) Social factors I have a better of social acceptability I have a better contacts(networks) with outsiders I have no prejudice or class biases The societies attitude towards my products/services is positive 16.3 16. 15. After you read each of the factors.8 I have managerial skills I have access to necessary technologies There is no stiff competitions in the market place that I am engaged in.5 I have access to market for my products A have access to different business trainings I have my own premises (land) to run my business I have an access to information to exploit business opportunities 15.9 15.4 15.2 15.7 15.2 16.1 Economic factors I am satisfied with the financial access given by micro finances and other lending institutions.PART 3: FACTORS AFFECTING WOMEN ENTREPRENEURS’ PERFORMANCE IN MSEs. 15 15. 15.6 15.10 16 16.3 15.1 16. 5=strongly agree 4=agree No.5 The attitude of other employees towards my business is positive 16.

institutional and policy constraints I can borrow money even without titled assets as a collateral 17.9 I have never encountered bureaucracies and red tapes I am beneficiary of government incentives I have never faced unfavorable legal and regulatory environments 17.7 17.10 I have no conflicting gender roles I am not affected by gender inequalities I have no cultural influences I never encounter harassments in registering and operating my business No.2 17. 17 17.9 16.8 16.3 17.1 Item Legal and administrative factors I have business assistants and supporters from government bodies 1 Agreement Scale 2 3 4 5 remark 17.10 the tax levied on my business is reasonable 75 .16.7 16.6 Interest rate charged by micro finances and other lending institutions in reasonable 17.8 17.4 17.5 I have a network with different administrative bodies I have access to policy makers I have no legal.

5 18. read each of the areas and evaluate your business against the points and put a tick mark (٧) for your choice. Item 18 18.1 18.2 18.1.2.1.2.1 18.6 18.3 Support areas of TVETs to MSEs Training support I have got entrepreneurship training from TVETs I have got marketing training from TVETs I have got planning and financial reporting training from TVETs 18.1 I have got customer service training from TVETs I have got technical skill training from TVETs Machine support I have got machine maintenance service from TVET 18.1.5 18.3 18.Part 4: Support areas of TVETs to MSEs The following are cooperation areas between MSEs and TVET.1.2 18. 1.4 I have got machine maintenance training from TVET 18.1.4 18.6 I have got machines support(gifts) from TVETs I have got Financial supports I have got Technology supports I have got Raw material supports I have got Facility an furniture supports 1 Agreement Scale 2 3 4 5 remark 76 .2 18.

What problems did you face while running MSEs in relation to: A) Economic factors · · · · · · Market Finance Technology Infrastructure Training Raw material & other B) Social factors · · · Public acceptance Attitude toward women owned businesses Relationship with suppliers.) Women Support 2) Your cooperation with · · Micro finances TVETs 3) What other problem did you face? 4) What measures did you take to solve the problems you faced? 77 .APPENDIX B BAHIR DAR UNIVERSITY POST GRADUAT PROGRAM MA IN TECHNICAL AND VOCATIONAL EDUCATION MANAGEMENT Interview Questions with MSE heads 1. customers and others C) Legal and Administration factor · · · Government policy Bureaucracies (in relation to licensing. taxation etc.

Is there a special financial support that you give for women entrepreneur? What problem did you face is relation to • • • borrowing and lending Collaterals. What measure did you take to solve the problem you faced? What is your cooperation with · · TVET MSEs. 78 . 3. 2.APPENDIX C BAHIR DAR UNIVERSITY POST GRADUAT PROGRAM MA IN TECHNICAL AND VOCATIONAL EDUCATION MANAGEMENT Interview Questions with micro finance heads 1. 4.

How is your relationship with Micro finance and MSEs and others 79 . What are the areas of support you have with TVET leaders • • • • • Finance Training Technology Raw materials Training and others 3.APPENDIX D BAHIR DAR UNIVERSITY POST GRADUAT PROGRAM MA IN TECHNICAL AND VOCATIONAL EDUCATION MANAGEMENT Interview Questions with TVET leaders 1. What problem did you face to work jointly with TVET 4. What measures did you take to solve the problems you faced 5. How do you explain the relationship you have with SMEs? • Do you have regular meeting periods? 2.

21 . Ÿ5 N. ›Ów ¾ð‹ S. 10 + 1 “ 10 + 2 [.40 ¯Sƒ S.¾c?ƒ ’ÒÈ−‹“ ¾}sV‰†¨< vI`Áƒ 80 . ÁÑv‹ K.uSÖÃl Là eU Síõ ›ÁeðMÓU:: ¡õM 1: ›ÖnLà S[Í 1.4 ¡õM N. Ÿ5 .30 ¯Sƒ N. ÉT@ 2. 6 .APPENDIX E ¾vI` Ç` ¿’>y`e+ °pÉ“ ¾ƒ/`ƒ °pÉ“ ›e}ÇÅ` ƒ/ƒ ¡õM ¾ÉI[ U[n ýaÓ^U ÃI SÖÃp uØnp”“ ›’e}— }sTƒ Là ¾}cT\ ¾c?ƒ ’ÒÈ−‹ ÁÒÖT†¨<” ‹Óa‹ KSÇce ¾}²ÒË ’¨<:: uSJ’<U SÖÃl KØ“~ ›LT w‰ ¾T>¨<M SJ’<” uSÑ”²w uØ”no ”Ç=VK<M˜ uƒIƒ“ ÖÃnKG<:: KT>Å[ÓM˜ ƒww` upÉT>Á ŸõÁK UeÒ“¾” ›k`vKG<:: Tdcu=Á :. ¾Òw‰ G<’@ G. ¾ƒ/ƒ Å[Í G. vLD uVƒ ¾}KÁƒ W. 10 ¡õM ÁÖ“kk‹ 3.5 N. Ÿ3 u‹ K.8 ¡õM S. ¾e^ MUÉ G. / G. ÁLÑv‹ 5. T”uw“ Síõ ÁM‰K‹ K. ¾u?}cw SÖ” G. Ÿ1 . Ÿ1 ¯Sƒ u‹ K. 1 -5 ¯Sƒ 4. 10 + 3 /Ç=ýKAT c.10 ¯Sƒ S. Ÿ10 ¯Sƒ uLà ¡õM -2. Ÿ20 ¯Sƒ u‹ K. 37 . Ÿ 4 . Ÿ40 ¯Sƒ uLà N.

Ÿu?}cw eف N. ¾TIu` W. k. lw S. ¾Ò^ N. Ÿƒ/u?ƒ (ŸeMÖ“ }sU) K. G. Ÿ6 . K?L "K 10. ÕÅ— S. G. ¾v”¡ wÉ` g. ŸÕÅ— ÉÒõ /eف/ [.6. ¨”É ›Áƒ [. U`ƒ N. G. G. ”ÓÉ K. ¾KU 11. ¾^c? e^ KSõÖ` õLÔƒ eK’u[˜ N. K?L N. K?L "K S.10 N. iS“ W. ¾ÓM lÖv K. u?}cw G. ¾u?}cw MUÉ eKJ’ K. K?L ›T^ß eKK?K˜ W. c?ƒ ›Áƒ g. K?L 14. ŸÕÅ— wÉ` S. Ÿ15 uLà 8. ¾u?}cw 9. vM W. Ÿõ}— Ñu= eKT>Áeј S. ¾ÓM K. “ƒ N. ¨<`e c. ^c? K. e^−ƒ” KSËS` ¾}ÖkS<uƒ ª“ ¾Ñ”²w U”ß U”É” ’¨<. K?L "K N. ›K 13. ŸMUÉ S. É`Ï~” KSU^ƒ ¾T>eðMÓ−ƒ” ¨<kƒ/¡IKAƒ/ ÁÑ–<ƒ Ÿ¾ƒ K¨<. ›vƒ K. SMe−ƒ G ŸJ’ ´UÉ“¨< U”É” ’¨<. K?L K. K?L . c. ¾}cT\uƒ ¾e^ Se¡/²`õ/ G. ¾É`Ï~ IÒ© Ue[ U”É” ’¨< G. ¨”ÉU G. ¾^e−” É`σ KS¡ðƒ ¾ðKÑ<ƒ KU”É” ’¨<. ›ÑMÓKAƒ 7. S”Óe© "MJ’ É`σ 81 S. É`Ï~” KTssU “ KSËS` Á’dd−ƒ T” ’¨<. Ÿu?}cw 12. Iƒ W. Ÿ5 u‹ K. uu?}cw− ¨<eØ e^ ð×] ¾J’ c¨< ›K. uÉ`Ï~ ¨<eØ }kØ[¨< ¾T>c\ c^}™‹ lØ` G.

8 16. u×U eTTKG< 4. ›MeTT 1..U×’@ Gw© Ñ<ÇÄ‹ 15.9 16.2 15.¡õM 3 .7 15.9 15.l Ñ<ÇÄ‹ 15 . KS¨c” †Ñ^KG< 2. eTTKG< }.TIu^© Ñ<ÇÄ‹ uIw[}cu< ²”É Ø\ }kvÃ’ƒ ›K˜:: Ÿ¨<ß Ò` ¾}hK ƒww` ›K˜:: ¾Ôd /¾u<É” /›ÉKA ¾Kw˜U:: Iw[}cu< K’@ U`ƒ Á¨< ›SK"Ÿƒ Ø\ ’¨<:: uc?ƒ’‚ K?KA‹ }Å^^u= ¾ï GLò’„‹ ¾K<w˜U:: ¾ï ›ÉKA ¾Kw˜U:: ¾vIM }î°• ¾Kw˜U:: ¾ðnÉ “ ¾SdcK< ¾›e}ÇÅ^© Ñ<ÇÄ‹” KTeðìU ¾ï 3.5 15.10 Ønp” “ ›’e}— ¾wÉ` }sTƒ ”Ç=G<U K?KA‹ }sTƒ uT>cÖ<ƒ wÉ` [¡‰KG<:: ¾U`‚(›ÑMÓKA‚) ¾ÑuÁ G<’@ Ø\ ’¨<:: e^” KSU^ƒ ¾T>Áe‹K˜” eMÖ“ ›Ó˜‰KG<:: ¾”ÓÉ ›Ò×T>−‹” KSÖkU ¾T>Áe‹K˜ um S[Í ›K˜ :: ¾^c? ¾J’ ¾”ÓÉ x ›K˜:: ¾›e}ÇÅ` ‹KA ›K˜:: ›eðLÑ> ¾‚¡•KAÍ=−‹ ›p`xƒ ›K˜:: uÑuÁ Là ֔"^ ¾J’ ñ¡¡` ¾KU:: ›eðLÑ> ¾J’< Sc[} MT„‹(”Ũ<G'Sw^ƒ.2 16. uc?ƒ e^ ð×]−‹ ¾e^ ”penc? Là }î°• ¾T>ÁdÉ\ ¾T>ÁdÉ\ Ñ<ÇÄ‹ Ÿ²=I kØKA uc?ƒ e^ ðÖ^−‹ Là }î°• ÁdÉ^K< }wK¨< ¾T>Öul Ñ<ÇÄ‹ }²`´[ªM:: ¾Á”ǔƔ }î°• ŸÉρ¨< ’v^© G<’@ Ò` uTÁÁ´ KU`Ý−ƒ ¾/ / UM¡ƒ uTÉ[Ó ULi ÃeÖ<:: 5.6 15.4 15.10 16.8 15..) }TEM…M:: ¾Ø_ °n ‹Ó` ¾Kw˜U:: 16 . u×U ›MeTTU ¾eUU’ƒ Å[Í (SÖ”) 1 2 3 4 5 U`S^ 82 .1 16.4 16.1 15.7 16.3 15.3 16.

3 18.5 18.3 17.6 17.5 17.9 17.8 17.IÒ©“ ›e}ÇÅ^© Ñ<ÇÄ‹ 17.1 18.6 ƒww` ’Øx‹ ¾eMÖ“ ÉÒõ Ÿ‚/S</}sTƒ ¾e^ ðÖ^ eMÖ“ ›Ó˜‰KG<:: Ÿ‚/S</}sTƒ ÑuÁ ’¡ eMÖ“ ›Ó˜‰KG<:: Ÿ‚/S</}sTƒ ¾pÉ“ ]þ`ƒ eMÖ“ }cØ„—M:: Ÿ‚/S</}sTƒ ¾Si” ØÑ“ eMÖ“ }cØ„—M:: Ÿ‚/S</}sTƒ ¾Å”u— ›ÁÁ´ ( ›ÑMÓKAƒ) eMÖ“ }cØ„—M:: Ÿ‚/S</}sTƒ ¾‚¡’>¡ ÉÒõ }Å`ÔM—M:: 83 U`S^ 1 2 3 4 5 .10 ŸS”Óeƒ ›"Lƒ ¾T>Å[ÓM˜ ÉÒõ Ø\ ’¨<:: ŸS”Óeƒ ›"Lƒ Ò` ÁK˜ ƒww` Ø\ ’¨<:: ŸþK=c= ›¨<ß−‹ Ò` ÁK¨< p`uƒ Ø\ ’¨< :: u”penc? Là ÁÒÖS<˜ IÒ© }sT©“ þK=c=Á© T°kx‹ ¾K<U:: TeÁ¹ ¾T>J” sT> ”w[ƒ vÕ[˜U Ñ”²w SuÅ` ‹LKG< :: ›uÇ] }sTƒ ¾T>ÁeŸõK<ƒ ¾¨KÉ SÖ” }S×ט ’¨<:: Ñ<Çà KTeðìU ÁK¨< ¨<× ¨<[É Ÿõ}— ’¨<:: ¾S”Óeƒ ØpT ƒpV‹” }ÖnT> ’˜:: ›ÖnLà ÁK¨< IÒ©“ ›e}ÇÅ^© G<’@ U‡ ’¨<:: uS”Óeƒ ¾T>×K¨< ¾Ów` SÖ” }S×ט ’¨<:: ›’e}— ¡õM 4: uØnp”“ ›’e}— }sTƒ Ÿ‚/S< }sTƒ ¾T>Å[ÓL†¨< ÉÒõ Ÿ²=I kØKA ‚/S< }sTƒ KØnp”“ ›’e}— }sTƒ ¾T>ÁÅ`Ñ<ƒ” ÉÒõ ¾T>Ádà ¾ƒww` ’Øx‹ }²`´[ªM:: Ÿ`e− É`σ ›èÁ uSÑUÑU U`Ý−ƒ” ¾/ / UM¡ƒ uTÉ[Ó SMe ÃeÖ<:: }.2 18.1.2 17.1 17.1.1.l Ñ<ÇÄ‹ ¾eUU’ƒ Å[Í (SÖ”) 18 18.1.4 17.1.uÅM Å`fw˜ ›Á¨<pU:: 17 .4 18.7 17.1 18.1.

18.2 18.2.1 18.2.2 18.3 18.4 18.5 18.6

¾Ti” ÉÒõ Ÿ‚/S< }sTƒ ¾Ti” ØÑ“ eMÖ“ ÉÒõ }Å`ÔM—M:: Ÿ‚/S< }sTƒ ¾Ti” ÉÒõ (eف)}Å`ÔM—M:: Ÿ‚/S< }sTƒ ¾Ñ”²w ÉÒõ }Å`ÔM—M:: Ÿ‚/S< }sTƒ ¾‚¡•KAÍ= ÉÒõ }Å`ÔM—M:: Ÿ‚/S< }sTƒ ¾Ø_ °n ÉÒõ }Å`ÔM—M:: Ÿ‚/S< }sTƒ ¾}KÁ¿ °n−‹ ÉÒõ }Å`ÔM—M::

84

APPENDIX F
Reliability test
Res.code 1 2 3 4 5 6 7 8 9 10 SD QUESTIONS 4 2 5 2 4 4 3 5 4 5 1 3 1 2 2 1 1 1 1 2 2 2 2 1 4 1 4 2 2.06 1.43 1 1.88 1.37 5 2.32 1.52 SD 1.5 1.2 1.7 1.7 1.1 1 0.7 0.9 1.1 1.4 VQ 2.3 1.3 2.9 2.9 1.3 1 0.5 0.8 1.2 2.1 16.4 69.5

3 2 1 1 2 4 3 1 2 2 0.99 0.99

4 2 3 5 1 1 1 2 4 2 2.06 1.43

2 4 5 1 2 1 2 2 1 1 1.88 1.37

5 4 4 3 2 1 2 1 4 5 2.32 1.52

1 1 1 2 2 2 3 4 1 2 0.99 0.99

2 1 1 5 4 1 1 2 1 1 1.45

1 2 4 5 3 2 1 1 3 2 1.82 1.35

2 1 1 1 2 3 2 2 2 3 0.54 0.74

1 1 1 1 2 1 2 1 3 5 1.73 1.32

5 1 5 2 5 2 2 1 2 1 2.93 1.71

3 2 1 1 2 4 3 1 2 2 0.99 0.99

1 1 1 2 2 2 3 4 1 2 0.99 0.99

5 4 4 3 2 1 2 1 4 5 2.32 1.52

1 1 1 2 2 2 3 4 1 2 0.99 0.99

2 1 1 5 4 1 1 2 1 1 1.45

1 2 4 5 3 2 1 1 3 2 1.82 1.35

2 1 1 1 2 3 2 2 2 3 0.54 0.74

1 1 1 1 2 1 2 1 3 5 1.73 1.32

5 1 5 2 5 2 2 1 2 1 2.93 1.71

3 2 1 1 2 4 3 1 2 2 0.99 0.99

4 2 3 5 1 1 1 2 4 2 2.06 1.43

2 4 5 1 2 1 2 2 1 1 1.88 1.37

2.1

S.D=Standard deviation VR=VARIANCE AMONG RESPONDENTS VQ=VARIANCE AMONG QUESTIONS α=( =

%

85

2.1

VR

APPENDIX G
Summary of Responses for the Likert Questions Responses Questions Economic Factors 15.10 69 78 8 25 16 20 11 36 46 83 103 53 11 11 19 18.5 89 84 6 12 6 17.10 26 30 18 35 88 18.6 16.1 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 62 91 13 18 12 16.8 25 31 20 102 69 17.8 29 22 31 56 59 91 53 14 14 25 18.3 82 92 4 11 8 17.9 19 20 22 40 96 18.4 15.9 22 32 12 69 61 27 8 19 97 91 16.9

1 2 3 4 5 Responses

105 56 0 14 21

48 55 18 29 46

68 77 17 17 17

106 45 18 9 18

26 36 19 66 49

47 64 28 38 19

77 63 16 24 16

Questions on Socio-cultural factors 16.1 16.2 16.3 16.4 16.5 16.6 0 40 2 97 75 101 52 12 12 20 18.2.1 19 21 24 39 94 17.7 83 92 4 11 7 18.2.2 16.7 86 62 18 69 12

1 2 3 4 5

65 90 14 30 13

76 75 10 72 19

14 47 22 119 57

36 35 15 124 47

27 20 21 140 67

Responses

Questions on legal and administrative factors 17.1 17.2 17.3 17.4 17.5 26 18 27 63 63 18.1.5 88 89 5 10 5 24 24 22 37 90 86 18.1.6 17.6 106 47 12 13 19

1 2 3 4 5 Response s

28 21 25 56 67

110 46 17 8 16

108 46 16 9 18

28 23 27 54 65

Questions on supports between TVET and SMEs 18.1.1 18.1.2 18.1.3 88 72 10 16 11 18.1.4 42 42 14 28 71

1 2 3 4 5

89 76 8 16 8

83 78 8 16 12

) Signature ––––––––––––––––––––– Date –––––––––––––––––––––––– 86 . Degree in Technical and Vocational Education Management. declare that. This work is original in nature and has not presented for a degree in any university and it is sufficient for submission for the partial fulfillment for the award of MA. I have made it independently with the close advice and guidance of my advisor.APPENDIX H Declaration Here with I. Mulugeta Chane Wube Signature––––––––––––––––––––––– Date ––––––––––––––––––––––––––– Certification Here with I state that Ato Mulugeta Chane has carried out this research work on the topic entitled ” Factors Affecting the Performance of Women Entrepreneurs in Micro and Small Enterprises in Dessie Town: A Case Study” under my supervision. Degree in Technical and Vocational Education Management entitled” Factors Affecting the Performance of Women Entrepreneurs in Micro and Small Enterprises in Dessie Town: A Case Study” is prepared with my own effort. Adane Tesera (Asst.Prof. this paper prepared for the partial fulfillment of the requirements for MA.

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