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THE ROLE OF WOMEN MICRO AND SMALL ENTERPRENUERS IN POVERTY REDUCTION

(A CASE STUDY IN ARBAMINCH TOWN)

A SENIOR ESSAY PAPER SUBMITTED TO THE DEPARTMENT OF ECONOMICS FOR THE PARTIAL FULLFILMENT FOR THE REQUARMENT OF BACHELOR OF ART DEGREE IN ECONOMICS

BY GISHU MOHAMMED

ADVISOR: ABDULAZIZ ABDULSEMED

ARBAMINCH UNIVERSITY COLLEGE OF BUSINESS AND ECONOMICS DEPARTMENT OF ECONOMICS

MAY, 2012 ARBAMINCH, ETHIOPIA

CERTIFICATE OF EVALUATION
This is to certify that Gishu Mohammed student ID. No RBE/042/02 has conducted his senior essay research paper, titled The Role Of Women Micro and Small Entrepreneurs. (Arba Minch TOWN).This work is completed with satisfactory evaluation of the advisor and the examiners as per the requirement of the university.

Advisor: Mr.Adbulaziz Examinees: Name 1. _____________________ 2. _____________________

Signature: ___________

Signature: __________ Signature: ___________

Acknowledgment
Charity, help, mercy, grace, kindness, and forgiveness of ALLAH have a great value in my life. ALLAH is the most gracious and the most merciful for all I have achieved. I would like to express my deepest appreciation and thanks to my advisor Ato Abdulaziz Abdulsemed for his fruit full guidance, and assistance. Oh how can I express my feeling to thank my father Mohammed and my mother Hawa as well as my brothers and sister shortly I went to say jaza kumula keyhran. Lastly I want to thank my friend especially Sara for her help in writing this paper and all my relatives as well as all people who help me in all I achieved.

Table content Title page

Acknowledgment.i Abstract .ii Table of content ..iii List of table ..iv Acronym ...v CHAPTER ONE 1 Introduction. 1.1 Back ground of the study .. 1.1.1Profile of women MSEs 1.2 Statement of the problem 1.3 Objective of the study 1.3.1 General objective............................................. 1.3.2 Specific objective............................................

1.4 Research methodology....................................................... 1.4.1 Data types and sources.................................................. 1.4.2 Sampling technique and size............................................................. 1.4.3 Method of data analysis...................................................................... 1.5 Scope of the study................................................................................................ 1.6 Significance of the study..................................................................................... 1.7 Organization of the paper...................................................................................... CHAPTER TWO.......................................................................................................... Review of related literature ..................................................................................... 2.1Definition ................................................................................................ 2.1.1 Definition of micro and small entrepreneurs.............................

2.1.2 Definition of poverty........................................................... 2.2 Poverty as a cause of poverty............................................................... 2.2.1 Economic factors...................................................................... 2.2.2 Non-economic factors .............................................................. 2.3 The roles of women ............................................................................... 2.3.1 Women as consumer...................................................................... 2.3.2 Women as producers.......................................................................... 2.3.3 Women as wage labourers....................................................................... 2.3.4Women as workers in the formal and informal sector............................. 2.4 Women and poverty............................................................................................... 2.5 Micro and small entrepreneurs and women............................................................. 2.5.1 Significance of the MSE sectors for developing countries.......................... 2.5.2 Significance of the MSE sectors for women............................................. 2.6 Women and MSEs in Ethiopia......................................................... 2.7 Women Empowerment.................................................................................. 2.8 Rational behind organizing women MSEs................................................... 2.9 Developed countries experience of women role in poverty reduction............ 2.9.1Indonesia ............................................................................. 2.9.2 Tanzania ............................................................................. CHAPTER THREE................................................................................ Discussion and analysis ...................................................................... 3.1 Introduction ................................................................................................. 3.2 The demographic or characteristics of the respondent..................................... 3.2.1 Distribution of respondent by age ................................................. 3.2.2 Distribution of respondent by marital status.............................................. 3.2.3 Distribution of respondent by educational status.....................................

3.2.4 Distribution of respondent by religions.............................................. 3.2.5 Distribution of respondent by previous job status .................................... 3.3 Reason for venture........................................................................................... 3.4 Sources of income (finance) to start the business................................................ 3.5 The role of MSE in creating employment opportunity.................................. 3.6 Women engaged business activity................................................................ 3.7 Women MSEs and poverty reduction................................................................. 3.7.1 Improvement in living standard ........................................................... 3.7.2 Increase in the level of income................................................................ 3.7.3 Increase in saving capacity........................................................................ 3.8 Performance of women MSEs ..................................................................... 3.8.1 Growth capacity of WMSEs........................................................... 3.8.2 Profitability of WMSEs....................................................................... 3.9 Problems of WMSEs 3.10 Experience of women in growing business CHAPTER FOUR Conclusion and recommendation 4.1 Conclusion 4.2 Recommendation

List of table

Content Distribution of respondent by age..................................................... Distribution of respondent by marital status............................................ Distribution of respondent by educational status........................................... Distribution of respondent by religions............................................................ Distribution of respondent by job status........................................................... Reason for venture............................................................................................. Source of income in starting the business............................................................ Employment creation........................................................................................... Types of business activity that women engage in..................................................... Improvement in living standard (a and b)................................................................... Increase in the level of income per month.................................................................. Increase in saving capacity........................................................................................ Growth capacity of WMSEs....................................................................................... Profitability of WMSEs.................................................................................................. Problems of WMSEs...................................................................................................

Acronyms DPI---Development initiative project ILOInternational labour organization MFImicro finance institution SNNPRSSouth nations nationalities peoples regional state SSEssmall scale enterprise UN----- United nation WMSEswomen micro and small entrepreneurs

Abstract This research takes its case study on roles of WMSE on poverty reduction in Arbaminch town. For this purpose stratified random sampling that includes 65 of the WMSEs operators in the town and also purposive sampling method was used for official. This institution has been taken to explore the role of the sector especially in employment creation and income improvement and to assess the major problems that women face when they are in the sector. The problems like lack of adequate financial, market problem, raw material problem, and also there is other problem which a womans working in MSEs in the study area face. Both primary and secondary data from the operators or owners of the business and from MSEs Bureau of Arbaminch town respectively replenish the information needed by the researcher for the completion of the study. Interview questionnaire is the dominant data collection tools used for the study in this research. Conclusion and recommendation are suggested that indicate the role of the sector in poverty reduction, and the problem that the women in the sector face.

CHAPTER ONE
INTRODUCTION
1.1 Back ground of the study
The study has under taken in Arbaminch town which is the capital city of Gamo GofaZone. Arbaminch is found about 500 km south of AddisAbaba which is capital city of Ethiopia .The economy of the town, like other part of the country is based on agriculture, small scale trade and services. Women are animportant human resource, and vehicle of development not only in Ethiopia but also in Africa, and other part of the world .In developing nations women represents slightly more than half of the population, and in fact contributing more to the economic development than usual society. Women accounted about 20% of production in the developing would, andeven in Africa which is also in Ethiopia .They have also role in industrial labour force which they account about 1/4 of the labour. (Roy, Blood gult, 1994) Women leaving whether in urban or rural, whether they are poor or reach families they carry out three important roles in the society. The first is that productive roles which includes service labour force. The next is there production roles which includes producing goods and services as part of the work force, and the third is there rule in community management which consist of all the activities that are essential for the maintenance of the society relations (Roy, Blood gult, 1994) Women are wage earner or small scale Entrepreneur, This means women are mothers, home workers and of course they are also citizens of the states. Women are particularly affected; because they are faced with socio economic biases which made them even more vulnerable .women are as industrial workers receive lower wages than men, women who regularly perform agricultural tasks are not accounted. Women as citizen they are less able than men to exercise theireconomic and social rights. (Krishna 1982) In Africa, particularly in Ethiopia womenrepresents nearly half of the total population, but play less in economic development for multiple reason including underestimation of women in socio economic and cultural and political aspects. Small scale enterprise (SSEs) represents
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an importantmeansof earning income for womenin thedeveloping countries .SSEs typically contribute a significant sector of the economy in such countries, and women play a major role within SSEs. (Maryanne Dulalsey, 1990) There are several causes of poverty in developing countries including Ethiopia ,which includes lack of assets ,and income toget basic needs ,sense of noiselessness and powerlessness in the institution of state and society .The rate at which growthtranslates in to the loweredpoverty depends on initial level of inequality and distribution of income ,and how that distribution changes over time . Growthand itseffectiveness and

reducingpovertyalso depend on sound governance. Absences of role of low, lack of civility and predictabilities, intervention with public officials entire place a large burden on poor people. The poor lives and farms with uncertain rainfall .they leave in crowded urban settlement, whereheavy rain can wipe out there homes. They are at higher risk of diseases such as Malaria and Tuberculosis.They are at risk of local authority ,which means full womenparticularly risk of being socially excluded ,and victim of being violent and crime .The risk that poor face as a result of theircircumstance is cause of their vernal ability.womean and girls are constitute about 3/5th of the would .(World book) 1.1.1 Profile of women MSEs The transitional government of Ethiopiaissued national policy on Ethiopian womenin 1993.This has been reinforce by other subsequent factors like education, health, culture, social welfare population environmental and regional policy integration provisionsof convection declaration by UN and other international organization about women. The Ethiopian constitution of 1995 has interceded their rights.(Birhanu Nega,2001) In this regard, structure have been set up the national level in it.Ministers and Commission of womens affairs bureau at regional and zonelevel, among which the S/N/N/P/R women affairs is one of it. The focus areas are organizing women by making gender equality in all areas of development setting up women organization in MSE and networking. To meet the goal such as women micro and small entrepreneurs (WMSEs) and women development initiative project (DIP).(Befekadu Degafa, 2002)

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SNNPR women (MSEs) have been established in year 1998 with the initiative of small women who have been engaged in business activities. This is mainly to help women in hand crafts,service,trade and other business activities and help the development of women owned business through the provision of information and business networking opportunities to help women MSEs in specific sectors to start,develop or expand their business.(Brusher,2000) The objective of the women SMEs is to operationalize the country, objective of poverty reduction in general and to improve the status by strengthening their capacity targeting women in poor district and to encourage them to join and remain in the association to undertake productive activities. Women MSEs Association also taken into account women empowerment, improving the financial and operational capacity of on-going women owned business.

1.2 STATEMENT OF THE PROBLEM


People working in the development field have long concerned with how the benefit of development are distributed. However, recently concern with distributional issues has incorporated differences in income and economic power between men and women. Both men and women play different roles in society which subject them to different constraint and opportunities, leads them being different in poverty reduction measurement. Women are constrained by socio-economic and culturally imposed limitation, which denied their rights to have access and to control productive resources such as land as fixed capital. Understanding the role that play gender in development can makea substantial difference as to whether the growth oriented projects succeed or fail, which leads to the question of how men and women define their roles, or have influence in all aspects of development process. In this aspect Ethiopia ranked 142 in gender related development index with the income earning of 38% female and 72% men. The fact that all poverty indicators for Ethiopia aggregate the gender differences and particularly the level of poverty to which the women are subject. (Abebe Shimelis, 1999)

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Therefore, it is important to search for alternative mechanism which initiates the contribution of women for economic development out of the formal sector by all poverty interventionprograms such as women in women MSEs and empowering them.

1.3 OBJECTIVE OF THE STUDY


1.3.1 General Objective of the study The general objective of the study is to assess the role of women micro and small entrepreneurs in poverty reduction by engaging them in association and by participating in small scale enterprise as well as other income generating activities by using local resources, low and medium capital and abundant labour. 1.3.1 Specific Objectives of the study

To identify the basic problems of women micro and small entrepreneurs (WMSEs). To know the role of MSEs in creating employment opportunity for women. To know the role of MSEs in improving the living standard of women. To find out the role of gender consideration in development process. To know the performance of women micro and small entrepreneurs (WMSEs). To identify the basic problems of WMSEs. To create awareness of policy makers about the role of women in povertyReduction. To learn from women who are success full in their business 1.4 RESEARCH METHODOLOGY This section presents the source and types of data, sampling techniques and methods of data analysis so as to achieve the objective of the study. 1.4.1 Data types and sources The study is based on both primary and secondary sources of data which are used to achieve the objective of this study. Secondary data are obtained from the available documents of the organization, newspapers, brushers and some national report, while primary data are collected from a sample of 65 respondents.

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1.4.2 Sampling The population of study consist of 693 women who work in five sectors of MSEs .these are construction (102),manufacturing (106),service (197),trade (178) and urban farming (110).The estimated sample size was 65 out of 693 womens. The sample technique employed will be stratified random sampling in order to obtain a representative sample the womens engaged in different kinds of business and also purposive sampling method was used to top officials of institutions were purposely taken and interviewed, since the researcher believed that they know the condition better than others because of their day to day contact with women MSEs. 1.4.3 Methods of data analysis The data which are collected from primary and secondary sources can be analyse

1.5 SCOPE OF THE STUDY


As far as the scope of the study will be concerned, it is only limited to women MSEs in Arbaminch town which includes women business association and program to promote, improve and help the development of women business. The study is mainly focus on the impact of gender sensitive intervention through empowering and makes access to the women towards the productive assets. It also intends to cover the type of business in which they involve, level of their participation and in group business, problems they encountered in the business, their attention on their future business and changes in their living standard.

1.6 SIGNIFICANCE OF THE STUDY


This study is step in the direction and will stimulate farther efforts by others in the development community. The need to redress the failure to consider systematically ,and coherently the different roles of women as they engage in and are affected by the development activities require more than adhoc attention. It is essential institutionalize successful initiatives in providing the necessary analytical and in

methodological skill for assessing the significance of gender differences

development process.Therefore,these study is significant for the contribution of

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some relevant information to the policy makers ,to incorporate women in any development program targeting povertyreduction. The study can also serve as the starting point for further study and detailed investigation by others in this particular area.

1.7 ORGANIZATION OF THE PAPER


The research constitutes about four chapters. The first chapter is introductory part, the second chapter contains the review of related literatures, the third chapter deals with data presentation and analysis, and the last chapter is about the studys conclusion and recommendation.

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CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 DEFINITION
2.1.1 Definition of Micro and Small entrepreneurs The definition of micro and small entrepreneurs varies from country to country. All over the world numbers of employees or capital investment or both have been used as the basis for defining micro and small enterpreneurs.Based on the numbers of employers: Micro or very small which consist of less than 20 workers. Small enterprise which consist 20-100 workers. (Hailay,2003)

On the other hand micro and small entrepreneurs defined on the investment paid up criteria. Based on this criteria micro entrepreneurs are those enterprises with paid up capital of not greater than 20,000 birr. Small entrepreneurs are those business enterprises with paid up capital of above 500,000 birr.(Hailay,2003) 2.1.2 Definition of poverty Poverty is relativeterm; therefore, it is difficult to define it by using one word or sentences since it has been defined by different people differently based on the existing social, political and economic condition. The world development report defines poverty as the inability to attain the minimum standard of loving which is measured by the basic consumption needs or income required satisfying them. (HenneryBernsteinHazeJonson). Poverty is a condition where peoples basic needs for food, Clothing and shelter are not being met, (WWW.business dictionarty.com) Poverty is a world-wide, but empirical studies of poverty, income distribution and low income aid programme for citizens have these far been more. (WWW.ps commons .org/ggp/aims) The causal interlink among low saving ,low investment, low capital formation and low income finally resulted in what we call poverty.Todaro depends on two variables to study
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the magnitude and extent of poverty in any country .The average level of national income and the degree of inequality of income distribution. According to him, for any given level of national income per capital the more unequal distribution and the greater the incidence of poverty. (Michael Todaro, 2001)

2.2 POVERITY AS CAUSE OF POVERTY


There are two major factors that make particular economy to be underdeveloped. These are:-Economic and non-economic factors. 2.2.1 Economic factors Economic factors are the variables that prevent the economic development from the inside of the economy itself. These are:1. Lack of entrepreneurship 2. Capital deficiency 3. Difficulty in adoption of modern technology 4. Low agricultural productivity 5. Market in imperfection In closed economy the case that no international trade is allowed national income is divided into consumption and saving .consumption operates in supply side of the Economy and saving operates in the demand side .the following diagrams show the operation of various circle of poverty in both demand and supply side .(prof Nurkse,1985)

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Operation on supply side Low saving

Poverty (low level of income)low investment

Low productivity (Prof Nurkse, 1985) Operation on demand side Low purchasing power

low capital formation

Poverty (low level of income)

Low investment

Low capital formation Low productivity (Prof Nurkse, 1985) 2.2 Non- economic factor Non-economic factor includes about undeveloped human resource, social, cultural and political instability which leads to poverty. 1. Undeveloped human resource: - This includes uneducated, unskilled and technically non trained human resource. 2. Socio -culturalobstacles: - This may rise because of there is no Sharp desire for material betterment Willingness to work hard
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Awareness of future benefits of present sacrifice Preparation for industrial revolution

3. Political instability Future become uncertain No project can be executed properly if there is any change in political power .(Prof.Nurkse,1985)

2.3 THE ROLE OF WOMEN


Ecological ways of knowing natures are necessarily participatory. Natureherself is the experiment and women as sylviculturalist and water resource managers. The traditional natural scientists, their knowledge is ecological and plural reflecting both the diversity of natural ecosystem and the diversityin cultures that nature based living gives rise. (Rodda, 1989) 2.3.1 Women as consumers One of the major contribution that we all make to the economy is through buying things .women role as care givers has meant that women play especially prominent role in buying things that provide sustenance for home and family .Studies shows that women are responsible for buying 80% of house hold goods . Although it is often played down it is clear that women have a great deal of influence in the economy asconsumers. In other words they have a lot of spending power. As consumers, women live under a good deal of pressure. Many women must fire ways to feed their families on limited budget. They search for balance between affordability, nutrition and availability, countered with the personal presence of their families. Women are also often responsible for closing themselves and their families and are faced with similar demands in these tasks.(WWW.UnPac .ca/economy /consumer) 2.3.2 Women as producers Womens as producers exposed to work exploitation and occupational hazards .they can be involved in sustainable management of the environment or in its degradation .women farmers work to produce basic good and crops for export and therefore their role is crucial

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to the sustainable use the land .other women workers in the formal and informal sectors are oftenengaged in production process which has animpact on the environment. (WWW. PP Pr/economy/producers) 2.3.3 Women as wage labourers Overall, the increased use of land for commercial agriculture in the international agrobusiness has led to an increase in land lessens causing more women to sack work as paid agricultural labour.In Latin-American countries female labour is widely used for labour intensive tasks such as coffee picking, and the selection of and storing of beans. In India, transplanting rice is done almost entirely by women, who work consciously from 10:30am6:30am for statuary minimum wage working as tea leaf puckers, rubber trapper or causal workers. Women plantation workers are generally employed in the lowest paid jobs, such as weeding, spraying and harvesting. This can involve tiring and heavy work and in the case of spraying the danger of exposure to harmful chemicals. In Ethiopia life for women particularly those from villages is an endless round of grain grinding, water carrying, fire wood collection, infant care, vegetable gardening and child birth.(ILO report,2000) 2.3.4 W0men as workers in the formal and informal sectors I. Food processing and cottage Industries

Food processing in many forms is wide spread and is natural extension of womens work as food producers. Although much of the produce is for family use some will be sold in the market or in strait. Preparation of basic food, such as husking and polishing rise, is mainly done as unpaid labour, and therefore women who perform their tasks commercially will earn only avery low wage in order to be competitive. In Lima Peru, hand crafts and cottage industries are important activities of women. Local materials especially those from the forest are used to make the product such as baskets and mats .Women as home based producers are involved in making closes ,small items of furnitures ,foot wears lace and bee dies (a kind of cheroot).(Vikki Mc lean, action aid Winter 1989)

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II)

The construction Industry

In many developing countries women work in the construction industry and this work often has a link to the environment .for example, buildingdams. Internationallabour organization (ILO) programme involves the implementation of labour intensive work schemes to promote employment and rural development. Many women are also employed through food work projects; women are generally more interested than men in working for food which provides benefits those women can control money. In India and Bangladesh from 50 to 90% of the worker in the world food programme assisted food for work projects are women .many of them are land less peasants who unable to find other employment during slack season.(Annabel Rodda, 1991)

2.4 WOMEN AND POVERTY


A substantial majority of the world poor is made up of women. If we consider life of inhabitants of the of the poorest community across the developing world ,we would discover there are virtually everywhere women and children experience the harshest deprivation .The prevalence of female headed house hold ,the lower earning capacity of women and limited control over their spouse income or contribute to this disturbing phenomena .in addition to women have less access to education,formalsector employment ,social accuracy and government employment programs. This entire factor combine to insure that poor womens financial resources are meagre and unstable relative mens (Todaro, 1994) The income disparity between man and female headed households can be explained by their large earning deferential between men and women .In urban areas women are much less likely to obtain formal employment in private companies or public agencies are usually forced to participate illegal low productivity jobs. In the same way rural women have less accesses to the resources necessary to generate stable income and potential in most least developed countries legislation often prevents women from owning properties, significant financial contracts without the husbands signature and women are typically in a negligible for institutionally provided resource such as credit and government employment and income earning programs which are accessible exclusives to the men. (Todaro, 1994)

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The rule of women in controlling house hold income and resource is limited for a number of reason of primary importance the fact that relatively large portion of the work carried out by women in unremunerated such as collecting faire wood,cookingand maybe even intangible as the task of mother . womens control over the house holds resource may also constrained by the fact that many women from poor households are not paid for the work that they perform in family, agriculture or business activity, it is common for the Male head householdsto control all funds from cash crops or family business, even though significant portion of the labour inputs is provided by his spouse. Besides in many cultures it is perceived socially unacceptable for women to contribute significantly to the house hold income and hence womens performance may remain concealed or unrecognized. These all factors to gather perpetuate the low economic status of women and can lead to the limited role of women in controlling over the house hold property. Development policies that increase the gap of productivity between man and women are likely to worsen the earning disparities as well as farther erode the womens economic status within the house hold. Since the government programmes to elevate poverty usually works almost exclusively with men, training program the earning potential in formal sector employment generally limited to men, agricultural exertion programs promote male dominated crops and frequently at the expense of womens vegetables plots. The consequence of decline in women relations or absolute economic status has ethical and long term economic implication.Any process of growth that fails to improve the welfare of the people experiencingthe greatest hardship ,broadly recognized to be women has failed to accomplish one of the principal goals of development. In the long run the low status of women is likely to translate into slower rate of economic growth.This is true because the educational attainment of and future fanatical status of children are much more likely to reflect those of mothers than fathers .thus ,the benefits of current investment in human capital are more likely to be passed on to the future generation if women are successfullyintegrated in to the growth process and considering that human capital is perhaps the most important requirement for growth ,education and economic status for crucial to meeting the long run objectives for list developed worlds .(Todaro pp,175-176).

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2.5 MICRO AND SMALL ENTERPRENUERS AND WOMEN


Small and micro entrepreneurs represent important means of earning income in developing countries like Ethiopia .MSEs typically constitute a significant sector of the economy in developing countries and women play an important role in MSEs. 2.5.1 Significance of the MSEs Sectors for Developing countries MSEs Sector is important to the economy of the developing countries. It provides employment and income for many people while supplying needed products and services. The sector has become important as experience has proven large scale enterprise in capable of providing large shares of employment. In developing countries as employment in agriculture declines and as migration from the country side swells urban population. Agriculture is of per amount important to economic development and to women. Non-farm income also places a critical role. Within economic growth agriculture inevitably comes to represent smaller part of total output. Income and employment entrepreneurs unlike agricultural production, accounts for an increasingly large share, untiloutput, incomeand employment from non-farm enterprises surpass those drive from farming. (Maryanne Dulansey, 1990) 2.5.2 Significance of MSE Sectors for Women Micro and small enterprise are particularly important for women who need to earn income. They are more flexible and less restrictive than employments in large enterprises ,each may require education, training and experience that women lacks such job may also require that work be done at times and in places that culturally un acceptable or difficult for women with family responsibilities .Although womens economic activities in both agricultural and nonagricultural production are undoubtedly unreported data compiled from the New York of labour statistics for 1970,1974 show that for Latin America and Asia, the percentage of economically active population that is higher in non- agricultural production that in agriculture, in the middle east it is equal and in A Africa it is lower. A world bank study indicate a sharp increase in the proportion of women urban migrants .Small scale enterprise is difficult for people newly arrived in the city. However it provides greater access for women than other sectors, which of them require educational qualifications beyond

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those held by women. In several countries of Africa, Asia and Latin America come to a general conclusion that such projects mostly assist women. (James Austain, 1987)

2.6 WOMEN AND MICRO AND SMALL ENTERPRISES IN ETHIOPIA


Ethiopia is better known as symbol of poverty over the world. Women in Ethiopia make up substantial majority of poor people. If we compare the lives of in habitant of the poorest communities across nation we would discover that virtually every women and children experienced harshest deprivation in Ethiopia. According to the national report micro finance and micro small industries show a substantial development after the national economic reform of 1992/93. In this regard women participation in micro and small enterprise shows a rapid expansion mainly under the major world donors support .In spite of this situation the result of development in micro and small enterprise sector and benefits womens obtain from this sector is very low may be for the reason that the case of harsh and chronic poverty in the country as well as the great illiteracy and low experience about the performance and benefits of participating in micro and small enterprise socio-cultural factors are also obstacles for the active participation of women in such sector. This means the sense of womens believe d as dependent on men and lack of confidence by women is a crucial factor to this end.(World book)

2.7 WOMEN EMPOWERMENT


Empowerment is concerned with the processes by which people become aware of the interest of others in order to participate in to the position of greater strength in decision making and being an agent to influence such decisions.the decision given by the united Nation decade for women continues to have positive effect on the legislation and structures which enable women to contribute more fully in the economic and political areas of their societies .Never the less it is more than possible that the effect of the world economic crisis on womens role as citizen will be a negative one particularly among the poor groups. (Deng, 1998). By providing women with skill information and get support from the concerned bodies (institutions) they are equipped with tool of identifying and articulating law involve providing space and support the women micro and small entrepreneurs (WMSEs) to come

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together to share knowledge and experience to facilitate conditions when they ask questions learn strategy not only with women but also with more experienced womens rights advocacy.Secondly,women themselves can contribute to analysis on issue which affects them, which is only possible through empowerment. The process of implementing policies foreseen by the United Nations decade for women has to take into account all parties in economic and social decision making and all levels at which public actions take place. This means strong involvement of women in labour union, trade association and economic institutions. This can be especially valuable when one is dealing with rural women in the context of the kinds of programme, investments and infrastructure necessary for improving their ability to raise food and generate income. (Deng, 1998) The concept of empowerment depends on three measures. These are: - skill development, provision of credit and provision of micro small enterprise. These special skill development and provision of credit is very important for the ordinary African people to participate in the productive activities of their national economy and to improve their condition of life. Accordinglyempowerment of women needs to work more to improve womensvoices and access to the resources by increasing their decision making on their physical assets, financial and human capital. Moreover women need more equitable access to credit and productivity enhancing services. Some studies of the effects of networking schemes such as group based micro credit, suggest that, these schemes have many potential for the eradication of poverty. (Deng, 1998) UNICEF sees women as active agents in programme delivery as organized groups playing significant roles in managing community resources and making decision, governing resource allocation and as individuals securing the community as health and nutrition agents, water and sanitation monitors, adult literacy trainers and family motivators. Education is seen as pre requisite and key factor in raising womens awareness and empowering them to become active participant in the national development process.Prioirty of concern should be given to ensure the integration of women as participants and beneficiaries in all development programmes and projects, not only because women are significant contributors to economic and social development, but also from the conviction that sustainable development is possible only if women are more effectively

involved.(Deng,1998)

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2.8 RATIONAL BEHIND ORGANIZING WMSEs


Considering the deep rooted culture, economic and institutional condition of the under developed countries, the existing facilities are specifically against women, because women are as active for economic development. The absence of organized pressure groups to high light womens issue and direct the attention of policy makers to them hand caps women even more.(Usha Jamanl, 1987) Organizing the women under a group in the case of WMSEs is very necessary step in the whole process of assisting them to reap their own potential. The economic activities are the necessary bases for organizing the women. The group of women that engage in such activities will feel a sense of solidarity when they perceive real improvement in their income.as the women entrepreneurs gains more and more strength in terms of awareness, capital accumulation and experience about income generating economic activities, the negative consideration towards an inherent nature of women will decline. The issue of women as they engage in income generating activities will get their due attention and force to diverge natural resources towards the need of women.as the credibility of womensentrepreneursincreases, the kind of skill required for the women also increases. The women will learn to perform income generating economic activities to manage their business, to know their role in community as well as in the household to deal with the officials at every level regarding their opportunities, to analyse their own problems and present them convincingly to the agencies concerned.in this respect there are several objective of organizing women under WMSEs;- among this identifying the problems of women enterprenuers,stablishing consultant advisory services to assist member of young women to achieve their dream.Their identities as women ,as an individual their own rights ,as part of society, their role in economic development, as the labour force will also develop in addition to their identity as a member of family.(Usha Jamanl,1987)

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2.9 DEVELOPING COUNTRIES OF WOMEN ROLE IN POVERTY REDUCTION


2.9.1 INDONESIA (Women and Credit project in Indonesia) In Java womens rights are generally the same as those of men with respect to marriage, divorce, in heritance and poverty rights. They have considerable degree of economic independence and initiative. Women exercise significant social power and not subordinate. Although women enjoy high status they do not share equally in opportunities in the development process. Higher percentage of women are economically active in rural than in cities. The main employment for rural women is agriculture either on the families land or as hired lobour.the other major source of income for rural women is an elementary processing food and drink processing. Ann Carter, visiting Indonesia and Java for a long period of time stated that an alternative employment opportunities and source of income for women are severely limited. Hand crafts and cottage industries have limited economic benefits since village women are UN organized and cannot compete with manufactured products in terms of either cost or quality. Javanese women tend to work longer hours and earn less for their labour than men. Poor women put in longer hours than their wealthier parts since they cannot afford to hire anyone to assist them with the heavy burden of domestic work (example food preparation and water fetching).Both male and females technically have the same access to credit. In reality men receives from formal lending agencies and women depend on informal sources. Tittle to property is held in the mens name and this is the greatest constraint for womens gaining access to credit, since land is required as collateral. 2.9.2 TANZANIA (The Arusha planning and village development project) In early 1981, the Arusha planning and development project program with the cooperation of USAID carried out a short investigation to determine how rural women were being involved in the project.

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THE ECONOMIC ROLES OF WOMEN IN THE PROJECT Agricultural crops and livestock Women in Tanzania provide on average 60% of all the required farm labour. Harvesting is a task done by elsewhere both by men and women in Tanzania. Women and men agree that livestock is the business of men and they make any decision that are require regarding where cattle should be grazed when cattle should be dipped, the purchase and sale of the routine tasks including milking ,caring for caves. One of men of Tanzania said that If women owned cattle there would be corruption. Income generating activities Women in all areas involved in petty production which earns them independent income. The most wide spread production is the bear making from which a women may earn income. Women also derive income from hand craft production. Women in some areas produce mats and baskets for sale. Some women earn an income from producing cloth items such as Muslim hats, table clothes etc. Other sells milk and vegetables in the markets.

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CHAPTER THREE
DISCUSSION AND ANALYSIS
3.1 Introduction
This chapter of the study deal to present ,interpreted and analyse the data collected from different sources through questionnairedistributed, interview conducted, observation made and secondary data collected form document of the MSEs in the town . Theintended sample size was 65 and the data would analyse based on this sample size.

3.2 THE DEMOGRAPHIC OR CARACTERSTICS OF THE RESPONDANT


The respondents were from women MSEs which are in Arbamench town. Their characteristics are described below. 3.2.1 Distribution of respondent by age Table 3.1 distribution of respondent by age Age group Below 2o 20-30 31-40 41-50 51-60 Total Source: filedsurvey, 2012 The above table shows that 13.85 (9) of the respondent lie in less than 20 years, 32.20 % (21) of respondents lie in the age range of 20-30 ,29.23% (19)of respondent lie in the age range of 31-40 ,21.54% (14) lie in age range of 41-50,and only 3.08% (2) of respondents are above 50 years old. From this age structure we can understand that more than 75% of the respondents are lie in the age rang which is economically active labour force. This group can perform well to contribute more to improve their economic wellbeing and to the country development .the left 25%of the respondent are above 40 years old and the survey
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No of respondent 9 21 19 14 2 65

Percentage 13.85 32.30 29.23 21.54 3.08 100

indicates that even this rest group is above 40 years old they can still the productive labour force. 3.2.2 The distribution of respondents by marital statues Table 3.2 distribution of by marital status Marital status Married Single Divorced Widowed Total Source; field survey, 2012 One can observe from the table above that 50% of the respondents which constitute more than half are married, 18.46%of the respondents are un married or single,10.77%(present) of respondents which is the least are divorced and 20%ofthe respondents are widowed. From this we can drive the argument that the importance of organizing women into MSEs, is mainly to improve the lives of those women most of whom depend on their husbands income for every of their life shares MSEs is also useful for the other group (widowed) who even do not have their men spouse to depend on many except their family and relatives. Organizing under SMEs also helpful for those who are single in providing productive assets which help to create and strengthen their potential in development process. Number of respondent 33 12 7 13 65 Percentage 50.77 18.46 10.77 20 100

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3.2.3 Distribution of respondents by educational status Table 3.2 Distribution of respondent by educational status Educational status Read and write only Primary school Secondary school Postsecondary certificate Diploma and above Total Source: field survey, 2012 The survey result presented in the table above indicates that 28 respondents or 43.08 % out of 100% and it constitute an important majority are can only read and write. They even do not have the basic educational level. According to the table above 13or 20 % of the respondents have the basic education level (primary school).11 or 16.92% of the respondent are those who attend their secondary education school, 9 or 13.85 of the respondents have post-secondary certificate and only 4or 6.15 % of the respondents have diploma and above. The result shows that the majority of women MSEs, group didnt attend any formal education, which may make it difficult to run their business in a better way. 3.2.4 Distribution of respondent by religions Table 3.4 distribution of respondent by religions Religion Orthodox Muslim Protestant Other Total No of respondent 17 12 30 6 65 Present 26.16 18.46 46.15 9.23 100 No of respondent 28 13 11 9 4 65 Percentage 43.08 20 16.92 13.85 6.15 100

Source:survey ield, 2012

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The Above table indicates that 17 or 26.16 % of respondents are orthodox, 12or18.46%is Muslim, 30 or 46.15 % are protestant and 6 or 9.23% of the respondents are followers of her religion. From this we can conclude that any religion cannot oppose peoples to work and in prove their life. 3.2.5 Distribution of respondents by previous job status The members of associations formed under the micro and small enterprises are not only those who dont have jobs but there are some members of the association which quite their previous job and join he women MSEs .Respect to this variables the respondents response is shown below. Table 3.5 Distribution of respondents by previous job status. Have you had a job before No of respondents you start up business Yes No Total Source:field survey, 2012 As the above table shows, the member of associations organized under women MSEs are also form two sources, those who had not have job are the major ones and they account about 78.46 % of the sample respondents. The remaining 21 .54 % of the respondent have had a job before they joined this line of business by expecting, better income form the business. 14 51 65 21.54 78.46 100 this kind of Percentage

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3.3 REASON FOR VENTURE


The association and their members have their own reason for the start-up of this business and run MSEs.The following table shows about the reason to start the business. Table 3.6 Reason for venture Reasonfor start the business To create job Demand for the business Better profit Because alternative Total 65 100 of no Number of respondent 34 8 17 other 6 Percentage 52.31 12.31 26.15 9.23

Source; field survey, 2012 We can see from the above table there are many reasons for the member to participate in MSEs. The major reason for most of the respondent are job creation which constitute about 34 out of 65 or 52.31% and the other respondents start the business because of demand for that business product which constitute 8 out of 65 or 12.31%and 17 out of 65 or26.15%of the respondent start the business because of better profit. There are also responding who have started this business only because they dont have other alternative, this group constitute about 9.23%0f the respondent

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3.4 SOURCE OF INCOME TO START THE BUSINESS


Women in MSEs may get finance from different sources and start their business to fulfil their interest and help themselves as well as others. The table below shows about this. Table 3.7 source of income in starting the business Source of income Credit from MFIs Credit from bank Support from NGOs 0wn saving Credit from friend or family Number of respondent 34 8 12 6 3 Percentage 52.30 12.30 18.46 9.23 4.64 3.07

Credit from private many 2 lender Total 65 Source; field survey, 2012

100

The above table illustrate that 34 out of 65 respondent start their business by the money that they get from MFIs and this constitute about 52.30%.the other respondent replied that they have an access to some other formal institutions and also support from NGOs, some respondent also start the business by their small saving while the rest of the members have access to other financial sources such as informal money lender. From this we conclude that MFIs are the most important source of financial for women.

3.5 THE ROLE OF MSEs SECTOR IN CREATING EMPLOYMENT FOR OPPORTUNITY WOMEN
The beginnings of formation of MSEs were aimed at creating employment opportunities and engage individuals into the sectors. In Ethiopia population living in urban areas are estimated at about 15% and the remaining 85% confined to rural areas that are the breeding ground for women MSE development. (Todaaro, 1993) MSEs are labour intensive and it requires capital saving which helps to solve unemployment problem and they also use unskilled labour force which is advantages especially for women.

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Table 3. 8 The trend of selected MSEs in creating job opportunity for women The selected sector Construction sector Service sector Trade sector Manufacturing sector Urban farming sector Total Number of employment 102 197 178 106 110 693 Source; Arbaminch town, WMSEs The above table shows that different sectors of MSEs create different level of employment opportunity for womens. The sectors are construction sector, service sector, trade, manufacturing and urban sector. The total employment creation by each sector is 14.72%, 28.43%, 25.89%, 15.29% and 15.87% respectively. From the above information provided it is possible to conclude that service is the major sector in creating job opportunity for women, this is because of service is the sector that doesnt require high force and its suitability for women. In addition to this trade is the important sector that creates job opportunity for women .construction also creating job opportunity for women even if it constitute small present than other sector. This is because of most of the employees who are in this sector are men than women which result from difficult of the work. Generally MSEs are the most important sector for women in creating employment opportunity. Percentage 14.72 28.43 25.89 15.29 15.87 100

3.6 WOMEN ENGAGED BUSINESS ACTIVITY


The Arbaminch town WMSE are engaged in a number of activities that are vital for growth of the town, economical income and as lively hood of each individual. This may include hotel and tourism, hand crafts, beauty salon, restaurant, food production, construction, selling consumer commodities and goods, engaging in informal home-made food, producing labour saving stove, selling fruit and fruit products, secretary service etc. Such activities are classified and summarized below.

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Table 3.9 types of business activities that women engaged in Types of business Petty of small trading Restaurant Hand craft Number of respondent 18 14 6 Percentage 27.69 21.54 9.23 18.46

Processing and selling of 12 food and beverages Beauty salon Clearing the town Selling of culture clothes Other business activities Total Source; field survey, 2012 8 3 2 2 65

12.31 4.61 3.08 3.08 100

As we can see from the above table most of the women in MSEs are engaged in small trading which constitute 27.69% of the respondents. This indicate that majority of WMSE are from the lower income group. Restaurant is also the main activity that women engaged in and it constitute 21.54% next to small trading. The rest of the womens are engaged in activities like hand craft, processing and selling of beverages, beauty salon and also other activities.

3.7 WMSEs AND POVERTY REDUCTION


It is widely acceptable that MSEs play a vital role in socio-economic development of country as well as generating income and for sustainable development. Poverty is a multidimensional concept and phenomenon. Generally there is debt among scholars about poverty being conceived and defined as absolute or relative. Absolute poverty implies lack of access to objectively determined, reasonably adequate quantity of goods and services, to satisfy his/her material and non-material wants which are basic needs. On the other hand relative poverty implies that a person access of life is relatively lower as compared to some reference group of people.

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Poverty generally refers to lack of employment hence income, adequate health care, nutrition and with respect to these variablesthe MSEs are improving the living standard of the women working in the sector. 3.7.1 Improvement in living standard Table 3.10 Improvement in living standard (a) Is your living standard as a Number of respondent result of engage in MSEs improved? Yes No Total Source; field survey, 2012 As the above table shows major or about 86.15% of the sample respondent living standard is improved. The remaining 13.85% of the respondent living standard is not much improved. This is because of they are not getting that much better than before and they are also those who have joined the business by quitting what they had before. Table 3.10 Improvement in living standard (b) In what terms your living Number of respondent standard improved? Increased family income Increased expenditure Increased health care Employment opportunity Self-dependence Total 8 20 7 65 Source; field survey, 2012 12.31 30.77 10.77 100 11 16.92 29.23 Percentage 56 9 65 86.15 13.85 100 Percentage

consumption 19

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As the above table shows MSEs are playing a vital role in poverty alleviation. The participants in the MSEs have got different benefits by participating. Majority of the participants (women) have got increased or better consumption expenditure and employment opportunity. These two benefits are cited by 19 and 20out of 65 respondents respectively. The other major benefits are increased family income and increased health care expenditure. There are also individuals who have got self-dependence and freedom from dependence on their husband. The major feature of poverty is low income that is the cause of un employment. On this respect the income that individuals are getting shows an increase in income. 3.7.2 Increased in the level of income Table 3.11 Increased in the level of income per month Average income before engagement in business 0-150 150-300 300-450 450-600 42 13 7 3 64.62 20 10.77 4.61 150-300 300-450 450-600 17 21 15 26.15 32.31 23.08 18.46 this Number of percentage Average Number of Percentage

respondent

income after respondent engagement in business the

600-950 and 12 above

Total

65 Source; survey, 2012

100

65

100

As shown in the above table 26.15% of the total sample respondents were the previously low income earners and they all have come to earn a minimum of 150ETB. In all income groups after their engagement in the business shows an increase in their average monthly income. Previously the maximum average monthly income was 600ETB, but after their engagement currently they earn the maximum income of 950ETB and above, which shows

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increase in income level. Those who have no income source or the unemployed have secured a minimum of 150ETB. 3.7.3 Increased in saving capacity Women are being known by saving from what they earn as profit. The following table illustrate about this. Table 3.12 Increase in saving capacity Did you have saving account Number of respondent and save your money Yes No Total 53 12 65 Source; field survey, 2012 The above table illustrate that womens capacity to save is high which constitute about 81.54% of the respondent. These play a vital role in poverty reduction and increase their dream in the future to change or improve their living standard. The rest 18.46% of the respondent have no saving account. This is because of their entrance into the association later on and paying the money they borrow from different sources. 81.54 18.46 100 Percentage

3.8 PERFORMANCE OF WMSEs


The performance of the industrial sector can possibly be measured by gross value of output which refers to the total output. (Haile, 1995) To measure specific firms performance we can use its profitability, capacity utilization, debt-equity ratio and other measures. In this study the researcher used the growth capacity and profitability.

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3.8.1 Growth capacity of WMSEs Table 3.13 growth capacity of WMSEs Did you made any Number of respondent Percentage

expansionary work to your business? Yes No Total 41 24 65 Source; field survey, 2012 As the above table shows 63.08% of the total respondents have made some kind of expansion to their business. These entrepreneurs are from service sector like; hotel, beauty salon and from trade sector and also from construction sector. This shows us that they have some kind of growth potential. On the other hand 36.93% of the respondent does not expand their business; this may be because of demand for the product and lack of financial. 3.8.2 Profitability of WMSEs Table 3.14 Profitability of WMSEs How much is your business Number of respondent success full? Profitable Stagnant Total 46 19 65 Source; field survey, 2012 As we can see from the above table out of 65 respondent 46 were profitable whether the profit is small or large, which account about 70.77%. The remaining is not generating profit, but they are in the market to sustain their life. From this we can conclude that women working in MSEs are not making loose rather they sustain their life and get profit from the business. 70.77 29.23 100 Percentage 63.08 36.93 100

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3.9 PROBLEMS OF WMSEs


Small scale industries have been able to constitute or contribute substantially as needed to the economic development particularly because of financial, production and market problems. These problems are still major hand caps to their development. Lack of adequate finance and credit has always been a major problem of WMSEs in Ethiopia. The problems of WMSEs in Arbaminch town are not that much different from those prevailing in the country generally, but on the basis of their severity the WMSEs rank problems in the following ways. Table 3.15 problems of WMSEs Problems Lack of adequate finance Shortage of raw materials Competitions Market problem Taxation Number of respondent 20 12 10 9 5 Percentage 30.77 18.46 15.38 13.85 7.69 7.69

Attitude of people to wards 5 WMSEs High interest rate Total 4 65 Source; field survey, 2012

6.15 100

As the above table shows the major problem of WMSEs is lack of adequate finance which was cited as 20 out of 65 respondents and account about 30.77%. The other major problem sited by the respondent is shortage of raw materials, including machines and appropriate technology. This hindered the womens from using their potential capacity for production and running the business, which is major problems for 12 respondents out of 65 and accounts about 13.85%. Market is the other problems that the WMSEs face. This is because these womens failed to get enough customers and the people do not have good attitude towards them, by expecting low quality product from them and also the customers are loyal to their previous client, lack of adequate market information are also problems that WMSEs face. The problems that WMSEs face are not only these, they also face fierce competition from already established firms and somewhat taxation is also a problems.
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3.10 EXPERIENCE OF WOMEN IN GROWING BUSINESS


In order to draw some lesson from WMSEs development and better illustrate the experience of women in growing business is important. When the researchers collect the data from women who work in MSEs the researcher try to present one of the success women. Alem Alula KibiyeView cafe and Restaurant Alem was born and raised in Arbaminch town. She is 40 years old and have diploma by public management. Her parents were relatively well to do family and good attitude towards any job. She married her husband in 1978 and lives by peace with him up to now and she have two children. She begin her business with the assistance of her relatives and selling one of her asset which is house and also by her small saving she start her business. She begins her business by the total capital 215000ETB. Out of this she borrows 72000ETB in material form. At the begging time this business creates employment opportunity for five peoples including her and her husband. She said that I have no kitchen house worker but I cook every things by myself and at that time there is no permanent paid employment but, when I am too busy sometimes I bring temporary employment. The main reason for starting this business besides job creation for her is about the quality of the hotels. She said that I like some something which is pure and clean but, this is reverse for the hotels. She remember that one day when I go to hotels to eat my lunch, I see some bad thing in the food and I dont eat my lunch, after that day the idea of hotel business come into my mind. Alem is active women and expand her business by the profit she earns and also return 72000 ETB , which she borrow before in the form of materials like furniture, firing and coffee machine. Her total asset she estimate is no about 695000ETB. She said that although she wants to expand the business more, lack of finance makes it difficult. She runs the business by ploughing back the profit, but cannot borrow from banks because she cannot offer suitable collateral. Space is also a problem and limits any expansion plans. Because she uses part of the premises as residence for herself and also 7 (seven) house hold members that she supports and also rent of house which she pays now around 6000ETB per month. The other reason is that lack of skilled labour. This means it is not difficult to say there is no
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labour which skilled by hotel management in Arbaminch town and this create one idea in her mind. She said that I design project for the future to open training centre of hotel management and now I get training for six months and additionally reads some books and for the future I will teach the one who have interest in learning hotel management. Currently she has 26 employees and from this 16 are womens.The minimum salary for worker is 250ETB and the highest is around 1600 ETB. From women worker the researcher tried to get one of them and ask some question about Alem and her business. Her name is Tadalech; she is 21 years old and paid monthly salary about 1580ETB. She works in this business for six years. She said that when Income from rural area before seven years I have no anything, but now already my living standard is changed and I have saving account and also I help my parents. She also remember that I have no skill of working in hotel before six years, but Alem herself teach me and I begin the work. Lastly she said that I have no words to express how Alem is good and I learn from her how womens are strong and develop themselves. She manages the business and happy with the work, because she have diploma in public management and have ten years experience in MSEs Working. She said that I see my mother as role model for my life and because of I lost her by death I change my restrauent name from Alem to Kibiye which is my mother name. Alem emphasised the importance of women being organized to overcome the problems that impinge up on their efforts to play a full part in the development of their country or reduce the existing poverty. She support idea that the government and society in general has responsibility to provide an enabling environment for WMSEs, who regardless of all the odds are trying to be selfemployed and support themselves and their families. She stated that young women in Arbaminch town as well as in the country should try to run their own business and they should not shy away, because they have start small and from scratch. She feels that it is only if they make efforts to positively change themselves that WMSEs will change the perception of the society towards women.

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CHAPTER FOUR
CONCLUSION AND RECOMMENDATION
4.1 CONCLUSION
Women are an important resource and vehicle of development by accounting 20% of production in developing countries. MSEs Development program is based on the intention to eradicate unemployment and poverty in short period in different urban Ethiopias. Further WMSEs play a vital role in job creation, generating income, increasing saving and improve living standard of the women who are part of the society. MSEs is the largest source of employment next to agriculture requiring a relatively limited amount of capital and less skill labour which benefits especially women who are un skilled. According to this study majority of women engaged in MSEs activities because of they have no work before and MSEs activities require small capital for restarting and they get this capital from different sources which include MFI and support form NGO. The highestpercentages of WMSEs wereresponding that they are beneficiary from MSEs activities. i;e they can able to cover house expense ,purchase durable goods and able to save their income .this initiate them to work in MSEs and attract other unemployment women to become a member of WMSEs . Despite of these this roles the study also identify sum measure constraints and problems of the women in the sector during start up and operation activities. according to this study majority of women in the sector faced problem like lack of educate finance ,shortage of row materials ,compaction from other sector ,market problem ,taxation, high interest rate and attitude of people towards the product that produced by women and their attitude towards MSEs sector. WMSE operators where respond that additional they have constrained with that problem related to MFI that obstacle to perform their activities as they need. These problems are high collateral requirement of creditors, short period loan payment

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which are difficult for women to bring and return loan with short period, even cant earn an income to service during start up. In general based on WMSE administrative responses women work MSEs reduce moderately different aspects of societal problems like unemployment, dependent on husband and lack of perchingnecessary good as they need .How ever measures were taken by government to encouragewomen to work in MSEs sectors still they are cons rind by lack of working place of production and sales, lack of experience in working, lack of working capital and lack of market both during start up and operation activities.

4.2 RECOMENDATION
The preceding chapter have discussed the role of WMSE in poverty reduction in Arbamench town. After analysing all the prevailing conditions and facts at hand, the researcher recommends the following points for the better performance of the sector and the contribution of women to the overall economic development of the study area largely the nation. WMSE bureaushould arrange conditions for the supply of raw materials more than the current efforts and make effort to improve the market condition for the womens. The production or areas of business on which the women are engaged should be directed words the demand of the people .production should be demand oriented differentiated on the bases of market research. There should be change in the attitude of the sociality towards their products and the society must have awareness towards the women, that they are productive as men. There must be proper interconnection or interrelation between each MWMSEs and other sector it can be mens MSES .this will create inopportunity for the enterprise to share experiences and for improved performance of the sector as whole. To overcome one of the bottle neck of WMSEs operators problem related to finance the government should play an active role in establishing better micro finance institution n with minimum loaning procedure and long period of payment .

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Lastly the researcher recommended the concerned organization should undertake, follow up and continues guidance for WMSEs because of there vital role in poverty reduction of Arbaminch town and as whole nation.

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BIBLOGRAPHY
Abebe shimels, 1999. Addressing the problem of poverty in and policy option, economic focus. Befekadu Degefa and Brahanu 20001/2002. Annual report on the Ethiopian economy. Dulansey,1990 importance of MSEs in developing countries Deng, 1998 importance of women empowerment Hailay ,2003 Micro and small scaleenterprise are work with small capital Johnson H , concept of poverty and its measurement Krishna ,1982 womens right and development Rodda A,1991 women and the environment Roy ,1994 women and poverty Vickers J 1991 women and the world economic crisis Todaro 1993 economic development can be achieved through integrated effort World book, the national policy on Ethiopian women

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APPENDIX
INTRODUCTION
Questionnaires for women Micro and small entrepreneurs (WMSE) Questionaries survey on the role of WMSE in poverty reduction with particularemphasis women MSEs in Arbamench town. This Town and it is contribution to job creation, increase the saving capacity and improve the level of standard, which means roles in poverty reduction as well as the men constraint that hinder women to start up and run business activities Dear women micro and small entrepreneurs (WMSEs) You are kindly requested t go through all questions and give your answers for all a questions and concerning you and your business activities. Thank for your assistance and for spent your precise time!! 1 General information A. Age in years, select please one of the following 1. Below 20 2. 20-30 3. 31-40 4. 41-50 5. 51-60 6. Above 60 B. Marital status Martial status Before starting business Married Single Divorced Widowed C. level of education, select one of the following 1. Read and write only 2. Primary school 3. Secondary school 4. Post-secondary certificate 5. Diploma and above D. Religion, select one of the following 1. orthodox 2. Muslim 3. protestant
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Currently

4. others 2. What where you doing before starting this business? Select A. B. C. D. E. F. student employed house wife unemployed work in another business others

3. What is the legal status of business? A. Partnership B.Cooperative C.Others 4. When was the business establish 5. Main products /services of the business When the business started 1 2 3 6 in which sector do you do your business? Currently 1 2 3

Types of business When the business started Currently Small retailing activities Beauty salon Hotel and restaurant Processing and selling food and beverages Others 7. Please indicate the approximate number of people working in this business (including owners regular working for the business when it stated and now) Types of When the business start employment Women Men Paid family member Un paid family member Temporary Now Women Men

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8. How did you finance your business at the start-up time and how did you finance it now? (Select one of the following) Source At started time Now Credit from MFIs Credit from bank My own saving Credit from friends or family member Credit from private money lender Support from NGOs Other 9. Did you have a bank account for the business in the first year of the business and do you have now? Types of account Within first year of business Now Saving account ( how many) Current account ( how many) 10. Whatwas the most important reason to start this business? A. Demand for the business product B. Profitability of the business C. To create a job 11. What were the major factors that were helpful in stating your business? A. Own interest to start the business B. Family and friend helps in the business C. Interest of todays government 12. What were the main problems faced in starting this business? A. B. C. D. E. F. Financial problems Market problems Raw materials problems Attitude of people towards women Transportation problems Policy problems

13. Does the business environment discriminate against WMSEs business? A. Yes B. No 14. Are there situations where the business environment affects WMSEs than their male counter parts? A. Yes B.No

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15 .Are aware of any policies or regulations that affect women owned entrepreneurs A. Yes B. No 16. Does your being a woman make it difficult for you to get a loan? A. Yes, how B. No ,then what 17. Have you faced any problems in borrowing money? A. No B. Yes If the answer is yes which problems did you face? Select from the following a. b. c. d. e. Policy procedure High interest rate Lack of collateral In ability to prepare business plan Other problems

19. What is the trend of your expenditure when you start your business and now? And what about your general living standard?

Improved Expenditure General standard furniture, necessities) living (house basic

No change

Deteriorate

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