PROSPECTS AND CHALLENGES OF WOMEN

ENTREPRENEURS IN ETHIOPIA

(CASE STUDY ADAMA TOWN)

Research Paper Submitted to the Department of

Management for the Partial Fulfillment of the
Requirements for the Degree of Bachelor of Arts
in Management

ADVISOR: TAYE AMOGNE (MBA)

JIMMA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

JUNE, 2013

JIMMA, ETHIOPIA
 Acknowledgment

Above all I would like to thanks and praise the almighty God for his help I
doing this paper. Then I would like to thanks my adviser Taye Amogne

For his valuable and genuine advice and constructive criticisms contributing to
quality of this paper he has much credit through guiding and commenting me
on this paper.

I would also like to express my deepest gratitude for my parents. Especially for
my brother who helped me both financially and morally encouragement
through out my study in the university.

i
 Abstract

This study was tried to assess the different challenges and prospects of women
entrepreneurs in Adama Town and also listed their main role in economic
development in Town. In collecting the data the sources for this study were
women who are engaged in different business activities. Both primary and
secondary data was called and investigate in detail. The sampling technique
that was used for taking planned samples from sampling frames are non-
probability sampling technique. The gathered data from the respondents are
carefully arranged and categorized in to suitable form and merging in to similar
ground and the data was converted in to percentage and accurate show by
tables in detailed. Finally conclusion and recommendation had been given in
each problem identified.

ii
 Table of contents
CONTENTS PAGES

Acknowledgement .....................................................................................i

Abstract ..............................................................................................ii

Table of content .....................................................................................iii

CHAPTER ONE

1.1Background of the Study ……………………………………………………….1

1.2 Statement of the Problem………………………………………………………2
1.3 Objectives of the Study.....................................................................3
1.3.1General Objective...................................................................3
1.3.2Specific Objective...................................................................3
1.4 Scope and Delimitation of Study .....................................................3
1.5 Significance of the Study ..................................................................4
1.6 Research design and Methodology.....................................................5
1.6.1 Research design.........................................................................5
1.6.2 Method of Data Collection..........................................................5
1.7 population of the study.....................................................................5
1.8 sample size........................................................................................5
1.9 Sample technique..............................................................................6
1.10 data analysis ..................................................................................6
CHAPTER TWO
2. Review of related literature....................................................................7
2.1 Women in entrepreneurial activities from gender perspective............7
2.2 The different between women and men entrepreneurs.......................10
2.3 profile of women entrepreneurs.........................................................11
2.4 The Role of Women entrepreneurs in the economy.............................11
2.4.1 Creation of job opportunist..........................................................11
2.4.2 Increase in per capital out put and income..................................11
2.4.3 Generation of foreign currency.....................................................12
2.4.4 Better utilization of resources........................................................12
2.4.5 Improvement of business policy and procedures...........................12
2.4.6 Better production method and Better products.............................12
2.4.7 Identification of business opportunities.........................................12
2.4.8 Conservation of natural resources..................................................13
2.4.9 Abolition of monopoly and enhancement of competition.................13
2.4.10 Business opportunities women suppliers.....................................13

iii
2.5 Challenging factors of women entrepreneurs.......................................13
2.5.1 Cultural norms and attitude of society.........................................13
2.5.2 Financial factors...........................................................................14
2.5.3 legal Aspects.................................................................................14
2.5.4 Socio-economic and political condition..........................................15
2.5.5 Work/home role conflict................................................................15
2.5.6 Changing preparation...................................................................15
CHAPTER THREE
3. Data analysis and Interpretation...........................................................17
3.1 personal information.........................................................................17
3.2 Business classification of respondent................................................19
3.3 How did inspired in business............................................................20
3.4 Know how business of the respondents.............................................21
3.5 challenging factors of women entrepreneurs......................................22
3.6 The role of women in business..........................................................23
3.7 Participation of women in business...................................................24
3.8 why their participation is low in business.........................................25
3.9 future prospects of women entrepreneurs.........................................25
3.10 The Different between women and men...........................................26
3.11 Governmental policy encouraging women in business.....................26
3.12 Their participation in business and house hold................................27
3.13 societies Attitude towards WE..........................................................27
3.14 Society negative attitude..................................................................28
3.15 Generally attitude of women in business..........................................28
3.16 Interview from agency officer.............................................................30
CHAPTER FOUR
4. Summery Conclusion and Recommendation
4.1 Summery of finding...........................................................................31
4.2 Conclusion........................................................................................31
4.3 Recommendation..............................................................................32
Reference............................................................................................34
Appendix.............................................................................................35

iv
 CHAPTER ONE

1. INTRODUCTION
1.1 Background of the Study

The women’s business ownership act to establish programs and initiate efforts
to assist the development of women owned business. This law has brought
greater recognition to women entrepreneurs through their remark table growth
in entrepreneurship as evidenced by the aggregate statistics (R. Reagan, 1988)

Most women entrepreneurs of the 1980 had little for mal preparation for a
business career. Many worked at job, felt they were under paid and could do
the work better than their employer, and broke away to start their own
enterprise. Others pondered a business of own, saved their money, and finally
decided to take the plunge. For most, the new venture was a learning
experience. Dealing with workers, drawing up business plant, hiring and firing
personal, and making expansion decisions were all matters learned through
first hand experience. To day major changes in the ways women entrepreneurs
prepared to start their own venture are occurring. (D.F. kuratko, 1998).

Women entrepreneurs face and deal with a diverse range of challenges and
problems on day-to-day basis, and those have hampered their growth and the
potential contributions they could make to wards creating meaning ful and
sustainable employment and a vibrant small business basis (www.Eth
.org/form WEs. Study pdf/).

The first generation of women entrepreneurs association were established in to

early 1990s. The Ethiopian woman entrepreneurs Associations for the first
time managed to Flag role that women entrepreneur played in on the economy.
This Association played important role in creating awareness about women
entrepreneurs and their contribution and contributed to the visibility of women
entrepreneurs association appeared In the post 2000 era some of which were

1
from the 1990s but reconstituted and restructured having learned from the
experiences their predecessors the second generation was on important over
the first generation of association (WWW.own Ethiopia org/ form-WEs study
pdf)

Women account for the larger share of the informal economy operators as well
as those running micro and small enterprise in Ethiopia micro and small
enterprises make a significant contribution to the socio economic like of the
country by way of supporting basic people to earn many and make
contribution to a family incomes, and by supporting good and services for local
consumption However this contribution is not fully recognized or understood,
and there is a little in the way of research or statistics to provide broad
understanding of women’s experience as business owner, their contribution to
economic development or the challenges they facein setting up, managing and
growth their enterprises /www.lilo.org/ women entre z….pdf)

1.2 Statement of the Problem

Obviously women have different important roles in house hold, business,

political and social issues women owned or managed business have significant
economic power as well as being a major economic instrument for sustainable
development. In most of developing countries women entrepreneurs’ activity
face wide range of constraints.

The major constraints including the legal and regulatory environment, financial
business information, business premises (at affordable rents), the acquisition
of skills and managerial expertise, access to appropriate technology and in
some cases discriminatory regulatory practice. Gender equality a prerequisite
for the promotion of women opportunity and participated in business activities
all sectors.

The information about this issues from micro and small enterprises of Adama
Town office; there is no enough investigation before this time on women

2
entrepreneur’s activities. For this reason the researcher investigate on this
area.

This study tries to evaluate the above problems and others related problems
that will be taken as challenging factors of women entrepreneurs in Adama
Town.

This study is guided by the following basic questions.

 What are the challenging factors of women entrepreneurs in Adama

Town?
 What are the roles of women entrepreneurs in economic development in
Adama Town?
 What will be the future prospects of women entrepreneurs in Adama
Town?
 Are women entrepreneurs very different from their male counter parts in
Adama Town?

1.3 Objective of the study

1.3.1 General objective

To examine the challenging & prospects of women entrepreneurs

1.3.2 Specific Objective

 To determine the challenging factors of women entrepreneurs

 To describe the role of women entrepreneur in economic development
 To explain the future prospects of women entrepreneurs
 To determine the difference between women and men entrepreneurs their
interims of participation.

3
1.4 Scope and delimitation of the study

Due to lack of enough time and high cost this study conduct on prospects and
challenges of women entrepreneurs only Adama town and it is limit to business
other than the informal ones where they are engaged.

1.5 Significance of the study

This study contribute the following significances for both researcher and
women for researcher, it serve as the fulfillment for the degree of Bachelor of
Arts in management and also as initial experience in research work it will serve
as a base line for other researcher, who want to conduct study on similar area
in another is for women, from this study women can understand their weak
side and can avoid this weak side and continues their participation in business
activities.

4
1.6 Research design Methodology

1.6.1 Research design

Descriptive research design used because, it describe the state of affairs or

state of nature as it exists at present and describes easily and filling that was
related to women entrepreneurs and related problems.

1.6.2 Method of Data Collection

The researcher used primarily and secondary data sources to collect

the required data. The primary data was collected with interview,
questioner and observation. The secondary data was collected from
books, internet and was collected from books, internet and other
related entrepreneurs materials.

1.6 population of the study

The target population of the study were include all women

entrepreneurs in Adama town.

1.8 Sample size

The sample consisted randomly selected women entrepreneur in

Adama town. From the total population, the research selected 80
them as sample by using judgmental sampling technique because,
the population to be studied is difficult to locate or some members
are thorough to be better( more knowledgeable, and more willing)
than others.

5
 1.9 sample technique

The researcher used non probability sampling techniques. Specifically

judgment sampling technique. This was obtained the required data by taking
that sample units which are readily available through choosing sampling item
depending upon the judgment of the researcher and picked only those who
best meet the purpose of study

1.10 Data Analysis

The data collected in term of primary and secondary sources were analyzed
using simple statistical measurement such as percentage and tables

6
 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2. INTRODUCTION

The word entrepreneurs originated in 17 th century from French word “

Enterprendre” which means, to undertake” The entrepreneur is the one who
under takes to organize, manage, and assume the risk of the business. In
recent years entrepreneurs have being doing so many things that it is
necessary to broaden these definitions. Today an entrepreneur is an innovation
or developer who recognizes and site opportunities; convert those opportunities
in to workable or marketable ideas, adds value through time, efforts, money or
skills assumes the risks of competitive market place to implement these ideas
and realities the rewards from these efforts.

Entrepreneurship is the process of creating something new with value by

devoting the necessary time and efforts, assuming the accompanying financial,
psychic and social risks and receiving resulting rewards of monetary personal
satisfaction and independence.

2.1 Women in Entrepreneurial Activities from gender perspectives.

An essential approach tends to contribute to assumption that unitary set of

women’s ways of doing business can be identified.

This not only obscures important distinctions and in equalities, but leads to
unfortunate assertions. “womanliness,, accessing feminist” offering new hope
for corporatism ( O.Brien, 1998).

The Business development Bank, (1999) found significant differences between

mean’s and women’s business goals, for men financial goals a primary
objective. Although there are variations many women emphasize that their
primary goals in starting a business are not financial.

7
In more recent studied women continues to emphasize flexibility as a primary
motivator for business start up along with other person reasons need for more
challenges independence, passion for a particular idea, and desire for greater
fulfillment and meaning in their work (Business Development Bank, 1999).

Women also represent the fastest growing group of home based business
owners, entering five time more than men Reasons appear to include low start-
up cost, a perceived significant increase in personal productivities working at
home, and the fact that personal skill that may not market able to on outside
company can be used to start a business from home(Fiorito, 1998).

Self actualization is the most important reason given by women in surveys of

(valdez, 1998). Found business ownership attracts women accountants as
available avenue to achieve career success, gain control of their peers, create
their own work environments, and ensure their advancement is truly based on
merit all dimensions that women perceived to be less available to them when
employed in some one else enterprise. Many women business owners quit
leadership position in larger organizations, at home supporting the possibility
of systematic organizational power imbalances perhaps gender corporate
cultures(sharp, 1999).

Compare women’s processing of starting a business to pregnancy, birth, and

child –up for women is a very personal end eavor of nurturing a private dream,
ent wined with issues of identity and personal relationship (yaccato and
Jubinvill, 1998).

Business starts of women must be assessed in terms of particular contexts and

conditions. Their motives and approaches must be examined carefully against
their own goals and standards. Although there are continuing calls for further
studies comparing women to men business owner (Fasci and valdez, 1998).

As (More and Buttner, 1997) assert, research still tend to measure women
according to the traditional models of business ownership created by the men

8
who react to the environment, and do what ever it takes to brings the venture
fruition.

(Sexton and Bowman, 1990) found that in comparison to men women have
higher willingness to accept change and greater need for autonomy while
having lower energy levels and risk-taking proposition.

Women business developing certain characteristics according to the

circumstances of business challenges they experience. Women’s start up
motives and enterprise goals are unique. Their reasons for entering business
appear to depend partly on ‘push’ factors such as gendered discrimination they
encounter in jobs, and partly on ‘pull’ factors such as seeking greater
fulfillment, accomplishment and control in their work. All of these dimensions
appears to vary according to different women’s position interms of socio-
economic condition, race, geographic location, former education, experience
and community of networks.

Careful research prohibiting relationships among these dimensions would be

help full for three reasons: First, they may help illuminate the differentials that
potential women leaders encountered in existing work place organizations and
per hers suggest changes to work conditions that might keep women from
leaving.

Second, careful analysis of their objectives may help trace the contours of
alternate models of enterprise development emerging under the leader ship of
at least some women.

Finally, understanding these desires drawing increasing numbers of different

women in to leader ships small business owners may open spaces for analyzing
the changing nature of work and of women’s expectations and need a related to
work in on increasing technology, globalized economy.

More recent study of networking has concluded that woman are as active as
men entrepreneurs in net working to obtain assistance, and as successful as

9
men in obtaining high quality assistance including resource ( Aldrich and
Dubini, 1997).

2.2. The difference between women and men entrepreneurs.

Research shows that women entrepreneurs are not different from men
entrepreneurs. For example, both are motivated by the desire to achieve and to
attain personal in dependence. In many cases both have been influenced by
frustration or dissatisfactions with their former occupation and by desire to
changes their personal circumstances. Both rely heavily on personal assets
and saving to start their firm. Both are goal oriented, are enthusiastic and
energetic, and find strong support for their efforts from their secuse and close
friends.

The value of both groups are also similar, with the desires for power and
economic pay offending to head the list Much of the existing literature takes a
greater pain in pointing out the correction between the roses and status or
women in specifics society and problems the fact as female business and other
entrepreneurial activities owners. As Tylor (1980) phrased the situation as
follows “Women are no different than men in the entrepreneurial drive and
their desire for economic independence and personal self fulfillment that a
business ownership can brings. How ever, there is a catch it tends to be more
difficult to women than for men to like out his drivers”

It suggested that women entrepreneurs face certain obstacles that are common
to women entrepreneurs in general challenges such as lack of capital sufficient
in entrepreneurial activities, managerial skills, technical training, best
experience, other economical and lack of technological advancement. However,
these problems may back up by additional factors which have an impact of
women more. The major constraints faced by women entrepreneurs to start
and other any kind of entrepreneurial activities are the cumulative main
station varies characteristics interms of economic, social, cultural and political
environment of the country as well as in the town’s women entrepreneurs.

10
2.3 Profiles of women entrepreneurs

Ethiopian women played a traditional role of Mother and house wife activities
in both rural and urban areas of the country. How ever, their work has never
been limited to the house hold and family only(Mulume-betmitiku, 1995)

Women have a second class status within the family as well as in the society to
have unlimited access to economic resource and not much emphasis has been
given for their productivities. The economic capacity of an entity is restated the
access, control and ability to exploit production inputs which are land,
personal property, infrastructure property educational opportunity including
knowledge and information for women who are engaged in different types of
entrepreneurial activities, these women entrepreneurs have various attribution
and hence Face different obstacles based on the two criteria are attachment to
entrepreneurial idea( business growth oriented and limited growth) and
acceptance of converted roles (traditional and non-traditional).

2.4 The role of women entrepreneurs in the economy

The women entrepreneurs are the catalyst that plays a crucial role in the
developing country economy the following are some of the contribution of the
women entrepreneurs.

2.4.1 Creation of job opportunity

The hard work of the women entrepreneur often result in the formation of
small business that opens job opportunities to many others in addition to the
entrepreneurs her self.

2.4.2 Increase in per capital output and income

Entrepreneurial business activities result in increased income for the

entrepreneurs, hire employees and other related business the supply of good
and services in the economy will also bee increased eventually leads to an
increase in perceptual output and income in the economy.

11
 2.4.3 Generation of Foreign currency Entrepreneurs

that are in the export business generate the significant amount of foreign
currency to their home country. This situation in direct contributes to the
development of free country economy by making move foreign currency
available for increased volume of imports.

2.4.4 Better utilization of resources:

some entrepreneurs become the success full by inventing method and process
that enables the production of goods out of the resource that been ignored and
labeled as “useless” such initiative lead to improved use of neglecting resources
and conversation of the one or ready in use

2.4.5 Improvement of business policies and procedure

Entrepreneurs create business that involve new transactions which do not fit
in to the existing business regulatory system and that requires the
development of new business system, low rules and policies such business
investigation their vision of existing business policies and procedures and lead
to the development of anew ones which ultimately result better and safer
business environment.

2.4 .6 Better production methods and better products

women entrepreneurs often introduce better production methods interms of

processing speed, quality output, energy consumption etc. improved
production method in turn result in better goods and services the improvement
may be in terms of price, quality, location, case of use, packaging effectiveness
of the produce.

2.4.7 Identification of business opportunity

markets Entrepreneurs’ always map eyes open to identify and exploit market
opportunities once they devote them service to satisfy the market gap. However

12
the reality is that, entrepreneurs hardly succeed in meting all the market
demand and meet the rest of the markets needs

2.4.8 Conservation of natural resources some women become successful

entrepreneur because they managed to invent production methods that
consumed less energy and raw materials such as technology result
conservation of natural resources.

2.4.9 Abolition of monopoly and enhancement of competition

Entrepreneur often bring an end to monopolists that have existed for long
such entrepreneurs discover the key knowledge that has endured a monoply
similar, supplying substitutes goods and service, they faster keener completion
in many market, which naturally results in lower price for customers.

2.4.10 Business opportunity for women suppliers Entrepreneurs’ needs to

acquires in puts such as employee and raw materials to produces goods and
services in most cases the entrepreneurs will not able to supply these inputs
for business her own. Therefore, these resources supplied by other for
suppliers.

2.5. Challenging factors of women entrepreneurs

2.5.1 Cultural norms and Attitudes of society

The society’s attitude hinders directly or indirectly women entrepreneurial

activities in business sectors and others sectors. The society holds a low
esteem for women business and other entrepreneurial activities and they
perceive that she is attributed low value not only by men but also is attributed
themselves. This perception of women’s tasks in the society and community as
up productive and in discrediting their efforts and works is critical factory in
under taking the female labor force. In fact, in very long period of time women
have been involved in a business sectors and other sectors. However, these
women have been hidden role in business or up paid or operate small

13
enterprises of out of home. One of the most various barriers to the women’s is
that, values abilities and roles of women at work are often kept inside

And not always according to business women the same esteem and
competence. According to the (H. pongen, 1987) male and females domination
in country greater constraints duty resistance, discriminations and other
related cases.

2.5.2 Financial factors: Women are usually found in very small enterprises
and small loans which are viewed as up profitable by the bank and financial
institutions, since high administrative cost are associated. Women have the
difficulty in acquiring the major and critical resource. Most frequently, women
entrepreneurs do not have an easy access to credit or obtaining bank loans are
not to several factors. The financial institution is not responsive to women
owned business due to size and nature of business organization.

Generally, the assumption is that financial institutions do not give credit to

business persons who are not involved in the high level capital in order for
business to sort and grow gradually there must be the availability of substation
amount of investment since low investment will usually lead to small revenue
(c.vonderwees and H.Ronili, 1987)

2.5.3 Legal Aspects

Some laws hinder women access and ownership of key resources

Consequentially women do no hold property in their own name immovable
property is usually registered in the father’s, brother’s and husbands. Such
property title, there for cannot use as collateral security, when applying credit
from financial institutions. Many laws do not provide women with legal status
of their own there by react them to depend on their husband etc Generally,
women do not have a property which is used a pledge security required to set
business.

14
 2.5.4 Socio-Economies and political conditions

In order to set up a business is necessary to have an infrastructure

development measure that is study of available capital roads transportation
electric, standard of health, education. Communication , sufficient technical
and informal supports. In order to set up a business should be the necessary
infrastructure available which constitutes the empowered the local potential to
get though strong development these factors have remains impact on the long
term prospects of entrepreneurial potential in the country women which are
more affected due to women status in the social community.

2.5.5 Work/home role conflict

The growth of women-owned business is reflection of the changes society. The

concepts of dual income families and professional women in the work place are
expanding notions. However, this societal change also poses a critical
problems for women entrepreneurs A tension exist in the form of inter role
conflict, in which the pressure form the entrepreneurial role and the home
maker become incompatible. A numbers of variable have been identified that
affect the role conflict for time pressures of entrepreneurial venture bear
heavily on the level of conflicts. In additions families size can affects the
tension due to the demand of younger children the degree of family support for
the women in her venture also may affect the tension level her thus the role
conflicts.

2.5.6 Changing preparation

Most women entrepreneurs of the 1980’s had little formal preparations. For
business career money worked at a job felt they were under paid and could do
work better than their employer and broke away of star their won enterprise.
Other pondered business of own, save their money and finally decide to take
the plunge. For most the new venture was learning experience dealing with
bankers drawing up business plans, hiring & firing personal and expansion

15
decision were all matters learned through firsthand experience. Today major
changes in women entrepreneurs prepares to start their own venture are
occurring. More formal training greater economic opportunities and changing
social mores are influences the entrepreneurial environment. The women
entrepreneurs of this decades are quite different from their counterparts of one
or two decades earlier.

16
 CHAPTER THERE

3. DATA ANALYSIS AND INTERPRETATION

In this chapter the data gathered through questionnaires and interviews

presented with the help of tables ad percentages. This finding is made based on
the responds questionnaires filled by women who are participated in business
activities in Adama Town. The questionnaires were distributed for “80” women
of Adama town. Then a clear interpretation is given items by items as it is
shown below.

Table 3.1 personal information

No Item Description Response item No Percentage

Respondent/Frequen (%)
cies/

1 Marital states Marred 39 48%

Single 30 38%
Other 11 14%
total 80 100%
2 Age <20 10 13%
20-29 28 35%
30-39 25 31%
40-49 11 14%
Above 50 6 8%
total 80 100%
3 Educational level Primary school 21 26%

Secondary 32 40%
school
Certificate 15 19%
Diploma 7 9%
Degree 5 6%
Other - -
Total 80 100%
Source researcher survey (2005 E.C)

17
As it is stated in the above table the marital status of respondents show
that.39(49%) of the total respondents are married and 30(38%) of the total
respondents are single and 11(14%) of them are divorce.

This show that the majority of woman entrepreneurs in Adama town are
married.

Under item 2 the age of respondents show that 10(13%) of the total
respondents are found below the age of 20 and 28(35%) of the total
respondents ae between 20-9 age and 25(31%) of them are between 30-39 age
and 11(14%) of them around between 40(49%) age, while the remaining 6(8%)
of the total respondents are above 50 age groups.

This tell us that women entrepreneurs found between 20-29 age group are
participated in entrepreneurs activates than the others age groups.

Under item 3, the educational level of respondents show that 20(26%) of the
total respondents are primary school learned, 32(40%) of he total respondents
are secondary school. And 15(19%) of hem are have certificate, and 7(9%) of
them are diploma owns, the rest 5(6%) of them are degree holders. This
indicated that, the majority of women entrepreneurs are secondary school
completed.

18
Table 3.2 business classification of respondents

No Question Item Respondents item Frequency of Percentage

Respondents of
Respondent
1 Types of business Stone and black 15 19%
construction
Wood and furniture 18 23%
Food and 27 33%
restaurants
Metal engineering 12 15%
Others 8 10%
Total 80 100%
Source researcher survey

From the above table item 1, the types of business respondents show that:
15(19%) of the total respondents are participated in stone and block
construction and 18(23%) of the total respondents are participate in wood and
furniture, and 27(33%) of the total respondents are participated in food and
restaurants, and 12(15%) of the total respondents are participated in metal and
engineering while the remaining 8(10%) of the total respondents participated in
others business activities, such as beauty salon, shop , Barber, milestone etc.
This indicated that the majority of them participated in food and restuants ants
due to requires low capital and training.

Table 3.3 Ho did inspired in business

19
N Question Item Respondents item Frequency Percentage
o of of
Respondent Respondent
s
2 How did you get Lack of job, 32 40
inspired to be
entrepreneurs
By looking others 13 16
Engagement 5 6
For additional income 16 20
By governmental support 14 18
Total 80 100%
Source researcher survey

As indicated in the above item 2, 32(40%) of the total respondents are inspired
to be an entrepreneurs due to lack of jobs, 13(16%) of the total respondents are
by looking others, 5(6%) of the total respondents are for additional income and
the rest 14(18%) them by governmental supports. This indicated that most
women inspired to be an entrepreneurs are due to lack of jobs.

Table 3.4

Know how business of the respondents of the respondents

20
No Question Item Respondents Frequency Percentage
item of of
Respondent Respondent
s
1 Do you believe that you have Yes 38 48%
necessary knowledge to run your No 42 52%
Total 80 100%
business?
2 If your answer to the above Yes 45 56%
question is “No” have you ever No 35 44%

get an opportunity to training? Total 80 100%

3 Have you ever get
an Yes 33 41%
No 47 59%
appreciation and opportunities
to be trained about how to run Total 80 100%
your business?
Source researcher survey

In the above table item 1; 38(48%) of the total respondents have the necessary
knowledge to run the business and the rest 42(52%) of the total respondents
are no have necessary knowledge to run their business. This indicated that the
most women entrepreneurs in this area no have necessary knowledge how to
run their business.

In the above table item 2; 45 (56%) of the total respondents have every get an
opportunity to be training, while the reaming 35(44%) of the total respondents
no have ever get an opportunity to be training . this show that , the majority of
them have ever get an opportunity to be training from the above table item 3;
33(41%) of the to total respondents have ever get an appreciation and an
apprecation to be trained about how to run their business, and the rest 47
(59%) of the to total respondents no have ever get an appreciation and an
opportunity to be trained about how to run their business.

21
This indicated that the majority of women entrepreneurs have ever get an
appreciation and an opportunity to be trained about how to run their
business.

Table 3.5 Challenging Factors of Women Entrepreneurs.

No Question item Factors item Respon Percent

dent age
Freque
ncy
1 What are the challenging factors Lack of financial 27 34%
Lack of education 23 29%
of women entrepreneur in your
and training
area?
Legal aspects 12 15%
Cultural and 13 16%
attitude of the
society
Other 5 6%
Total 80 100%
2 How we can reduce or avoid Provide financial 30 38%
these factors? assistances
Provide education 28 19%
and training
Provide place and 15 19%
materials
Others 7 9%
Total 80 100%
Resource researcher surrey

In the above table item1: 27(34%) of the total respondents responded lack of
financial assistance, 23(29%) of the total respondents responded lake of
education and training, 12(15%) of the total respondents responded legal
aspects, 13(16%)of the total cultural and attitude of the society, and the rest
5(6%) 0f the total respondents are the others, such as market related problem,
seasonal problems, rent problems etc.

22
This show that ,the majority of their challenging factors are lack of initial
capital or financial.

In the above table item 2: regarding to reduce or avoid those challenging

factors, respondents responded 30(38%) 0f total respondents responded
provide financial, 28(35%) of the total respondents responded provides
education and training, 15(19%) of the total respondents responded provide
place and materials and the rest 7(9%) of the total respondents responded
others solution, such as reducing cost of raw materials, working with
governmentetc. from the above information we can concludes that, to reduce
their challenging factors providing the financial, education and training are the
best solutions.

Table 3.6 the Role of Women

No Question item Roles Respondent Respondents

frequency percentage
1 What are the roles of women Creation of job 26 33%
entrepreneur in the economic opportunity
development? Better 18 22%
utilization of
resources
Generation of 17 21%
foreign
currency
Improvement of 14 18%
business policy
& providing
Others 5 6%
total 80 100%
Resource researcher survey

In the above item1, regarding to the role of woman entrepreneurs in economic

development the respondents show that, 26 or 33% of the total respondents
responded creation of job opportunity 18 or 22% of the total respondents
responded better utilization of resource 17 or 21% of the respondents
responded generation of foreign currencies 14 or 18% improvement of business

23
policy and providing and 5 or 6% of the total respondents responded others
such as increase competition, manage of resources and help of facilities etc.

This tell us taht majorities role of woman entrepreneurs in economic

development are creation of job opportunities for themselves and for their
societies.

Table 3.7 participation f women in business source researcher survey

No Question item Response item Respondent Respondent

frequency percentage
1 What is the participation f High 31 39%
Low 49 61%
women in business activates in
total 80 100%
your area
Sources researcher survey

In the above table item 1. Regarding to the participation of women in business

activities of the respondents show that 31 or 39% of the total respondents are
responded high participation and 48 or 61 of the total respondents are
responded low participation. This tells us the participation of women in
business activities are very low and it needs more encouraging.

3.8 Why their participation is low in business

No Question item Response item Respondent Respondent

frequency percentage
1 If your answer is low what is the Lack of 12 15%
reason training
Lack of 15 19%

24
 experience
Lac of started 28 35%
capital
house family 5 6%
pressure
Other 8 10%
total 80 100%

In the above table, 12 or 15% of the total respondents suggested the reason is
lack of train and 15 or 19% of total respondents suggested lack of experience
28 or 35% of the total respondents suggested lack of started financial 5 or 6%
of the total respondents suggested the role of in house or family and the rest 8
or 10% of the total respondents suggested others reason such s education,
cultural aspects.etc.

From the above table we can understand that the main reason why their
participation become low in business activities are lack of started financial and
lack of experience.

Table 3.9 The future prospects of women entrepreneurs in town

No Question item Response item Respondent Respondent

frequency percentage
1 What will be the future prospects High 25 31%
of women entrepreneurs in the Moderate 45 56%
town low 10 13%
total 80 100%
Source researcher survey

In he above table item1, 25 or 31% of the total respondents suggested that it

will be high, 45 or 56% of the total respondents suggested that it will be
moderate and the rest 10 or 13% of the total respondents suggested it will b
low. This tell us that the future prospects of women entrepreneurs will be
moderate.

Table 3.10 The different between women and men entrepreneurs

No Question item frequency percentage

25
1 Are women entrepreneur different yes 43 34%
No 37 46%
from men entrepreneurs in term
total 80 100%
of participation
In the above tale 43 or 54% o the total respondents suggested the participation
of women entrepreneurs are different from men entrepreneurs and the rest 37
or 46% of the total respondents suggested it is not different.

Table3.11 Government policy encouraging women interlunar entrepreneur

No Question Response frequency percentage

1 How do you evdiuate the Good 44 55%
Very good 30 36%
governmental policy in encoring
poor 6 8%
woman entrepreneurs
total 80 100%
Source researcher survey

In the above table 44 or 55% of total respondents suggested the government

policy encourage women entrepreneurs is good. 30 or 38% or the total
respondents suggested very good and the rest 6 or 8% of the total respondents
suggested poor .This tell us that the governmental policy encouraging woman
entrepreneurs is good.

Table 3.12 Their participation in business and house hold

No Question item Response frequency percentage

1 Does your Yes 47 59%
No 33 41%
responsibility in your
total 80 100%
house significantly
affect your business
operation?
Source researcher survey

26
In the above table 47 or 59% of the total respondents suggested that the
responsibility in their house significantly affected their business operation and
the rest 33 or 41% of the total respondents suggested that the responsibility in
their house significantly not affected their business operation. This is the
responsibility in their house significantly affected their business operations.

Table 3.13 the society attitude towards WE

No Question items Response Frequency Parentage

1 How do you Very good 12 15%
Good 20 25%
evaluate the
moderate 30 38%
society low 18 23%
attitudes to Total 80 100%

words women
entrepreneur?
Source: researcher survey

In the above table 12 or 15% of the total respondents suggested that society
attitude towards women entrepreneurs is very goods, 20or 25%of the total
respondents suggested that the society attitude to wards women entrepreneurs
is very good 30or 38% of the total respondents suggested that the society
attitude to words women entrepreneurs is moderates and the rest 18or 23% of
the total respondents suggested that the society attitude to words woman
entrappers is low. This tell as that the society attitude towards women
entrepreneurs is moderate in Adama town.

Table 3.14 the society negative attitude

No Question Respo Freque Parentage

nse ncy
1 Do you think that the Yes 54 68%
No 26 32%
society negative attitude
Total 80 100%
over WE causes of an
obstacle for their

27
 success
Source: researcher survey

In the above table item 1, regarding to the society negative attitude over women
entrepreneurs causes of an obstacle for their success, the respondents show
that: 54 or 68% of the total respondents suggested, it is obstacles, and the rest
26 or 32% of the total respondents suggested, it is not obstacle.

This is evidenced that the society negative attitude over women entrepreneurs
causes an obstacles for their success.

Table 3.15 General attitude of woman in business

No Question Response Frequency Parenta

ge
1 What is the general Encouraging 52 65%
Discouraging 19 24%
attitudes of the women
In different 9 11%
to words business Total 80 100%
actives in town for last
five years?
Source: researcher survey

In the above table regarding to the general attitude of woman to wards

business activities in town for the last five years, the respondents evidenced
that 52% or 65% of the total respondents are encourages, 19 or 24% of the
total respondents age suggested discouraging and the rest 8 or 11% of the total
respondents suggested indifferent. This show that the general attitude of
women to wards, business activities in town for the last five years are better
than before.

28
 Interview from Agency officer

The micro and small enterprise agency officer have tried to explain his idea
regarding to women entrepreneurs in their Town. According to Agency officer
women participation in business activates in their town is not much. Because
of most of women are tied in house hold working, negative society attitude, lack
of education and so on. The officer stated that the micro and small enterprise
agency office is taking various measures to encourage women participation in
the business activities. The officer said that, the facilitation takes different

29
forms including financing, saving , how to work to together, business training,
place etc. the officer stated that the women participation in business activities
become increase from time to time.

CHAPTER FOUR

4. SUMMARY, CONCLUSION AND RECOMENDATION

4.1 Summary of Finding

The study puts some points as summary and these points are listed below

30
 - Most of the respondents respond that the majority of women
entrepreneurial activities are who lies with age interval of 20-29 ages.
- Most of the women who are participated in business activates are
secondary school completed.
- Most of respondents respond which account 48% are married women
and not have enough financial resource to meet their business objective.
- Most of them are participated in food and restaurants
- Most of women inspired to be an entrepreneurs are due to lack of jobs
- 38% of them are agreed that the role of women in economic development
is creation of job opportunities for themselves and for their societies.
- 61% of them are agreed that the participation of women in business
activates are low and needs more encouraging.
- 38% of them are agreed that the society’s attitudes towards women
business are moderate in their area.

4.2 Conclusions

This study tried to know and identified the prospects and challenges of women
entrepreneurs in Adama town in different aspects.

The researcher put the following conclusions.

31
 - Women business activities are facing several problems such as economic,
political financial and social problems.
- This finding shows that the participation of women entrepreneurs are
increase from time to time
- The society’s and family’s negative attitude towards women
entrepreneurs became change from time to time.
- Due to the current efforts by government and the improving society
awareness, women entrepreneurs have a better future protect in Adam
Town.
- Due to the low participation in business activities the role of women
entrepreneurs in economic development are low.

4.3 Recommendations

Based on the finding of the study the researcher suggested the following
solutions for the prospects and challenges of women entrepreneurs in Adama

32
Town to different parties deemed relevant. Women entrepreneurs are
influenced by several problems and to solve these problems government and
concerned bodies should have provide different facilities such as education,
training and financial assistance etc.

Concerning institutions and government should create awareness to the

society regarding the necessity of women participation in the business activities
and facilitate the favorable conditions. The micro and small enterprise agencies
should link the women entrepreneurs products or services as it become
profitable and competent in the market.

Other concerned parties such as parents and family members or neighbor

should support and encourage women entrepreneurs by sharing household
duties. The government and society should avoid or reduce bad beliefs,
attitudes and cultures that may discourage women entrepreneurs in different
place.

Reference

 Hodgetts, Richard M Kurakto, Donald F. “Entrepreneurship: A

contemporary approach” Fourth edition, the Dryden press, 1998.
 www.own. Ethiopia org/form-Wes study pdf

33
 Brush, c, (1999).Review of “women entrepreneurs: moving beyond the
glass ceiling” Academy of management Review.
 www /lo.org/ women entr….pdf/
 Bowen, D.D and Hisrich, R.D. 1986, the female entrepreneurs. Acaver
development perspective.
 Haily G/tinsab (2003) Entrepreneur ship and small business
management, Mekele University.
 Entrepreneurs Guide: Starting and Growing Business in Pennsylvania
2002
 Essentials of Entrepreneurship and Small Business Management 3 rd
Floor Paterno, 2004

APPENDIX

JIMMA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

34
 Questionnaire filled by respondents

Dear respondent I would like to say thank you for giving your valuable time
and for your cooperation in filling questionnaires the following questions are to
be asked during data collection on prospects and challenges of women
entrepreneurs in felling the questionnaire please put a check mark “x” to the
item in the space provided

The Information Provided is kept Confidentially

1. sex: - male □ female □

2. marital status:- single □ married □ others_____________
3. age :- A<20 □ B 20 -29□ C 30-39□ D 40-49□ E above 50□
4. what is your education level
A. primary school □ B secondary school □ C certificate□
D Diploma □ degree □ E others________________
5. What types of business activity are your follows?
A. stone and block contraction□ B wood and furniture □
C. Food and restaurant □ D Metal work and engineering□

E if other specify-----------

6. How do you get inspired to be an entrepreneurs

A. lack of job □ B. by looking others □ C. engagement □
D. to get additional in come□ E. by governmental supply □
F. if others specify________________
7. Do you believe that you have been necessary enough knowledge to your
business?
A. Yes □ B. No □
8. If your answer is “No” have ever get on opportunity to train?
A. Yes □ B. No □
9. Have you ever get an appreciation and opportunities to be trained about
how to run your business?

35
 A. Yes □ B. No □

10.What are the challenging factors of women entrepreneurs in your area?

A. Lack of financial□
B. Lack of educational and training□
C. Legal aspects□
D. Cultural and attitude of society□
E. If others specify_____________________________
11.How we can reduce or avoid those challenging factors.
A. Providing financial assistances□
B. Providing education and training□
C. Providing place and materials□
D. If there is other specify_________________________
12.What are the role of women entrepreneurs in economic development?
A. Creation of job opportunities□
B. Better utilization of resources□
C. Generation of foreign currencies□
D. Improvement of business policies and providing□
E. If there is other specify___________________________________
13.What is the participation of women in business activities in your area?
A. High □ B. Low□
14.If your answers is “low” what is the reasons?
______________________________________________________
____________________________________________________________
15. What will be the future prospects of women entrepreneurs in the Town?
________________________________________________________________________
________________________________________
16.Are women entrepreneurs different from men entrepreneur interims of
participation?
A. Yes □ B. No□

36
17.If your answer is “yes”_________________________________________
________________________________________________________________________
_______________________________
18.How do you Evalute the government policy in encouraging women
entrepreneurs?
A. Good □ B. very good □ C. poor□
19.Does your responsibility in your house hold significantly affect your
business operations?
A. Yes □ B. No□

20.How do you evaluate the society attitude to word women entrepreneurs?

A. Very good□ B. good □ C. Moderate □ D. low□
21.Do you think that the society negative attitude over women
entrepreneurs causes of an obstacle for their success?
A. Yes □ B. No□

22.If your answer is “yes”______________________________________

________________________________________________________________________
________________________________
23.What is the general attitude of the women towards business activities in
the town for last five years?
A. Encouraging □ B. Discouraging □ C. Indifferent □ D/ other specify
24.If your answers is “Discouraging” please mention the major factors?
________________________________________________________________________
__________________________________________
25.What the major action has been taken to solve the above problems?
________________________________________________________________________
_____________________________________________________________
26.Is there any difficultly /problem/face you in the experience of women
entrepreneurs?

37
 Yes B. No□
27.If your answer is “yes” list down the problems.

38