Final Sminar 50

COLLEGE OF FINANCE, MANAGEMENT AND DEVELOPMENT
DEPARTMENT OF PUBLIC AND SOCIAL SECURITY MANAGEMENT
SECTION - TWO
GROUP - FOUR
SEMINAR FOR PUBLIC MANAGERS
CHALLENGES AND PROSPECTS OF WOMEN ENTREPRENEURS IN

ETHIOPIA: THE CASE OF ADDIS ABABA CITY ADMINSTRATION
Submitted To: Prof. DURGA
May, 2018
Addis Ababa, Ethiopia

Table of Contents
ACRONYMS..............................................................................................................................................v
LIST OF TABLES.......................................................................................................................................v
LIST OF FIGURES.....................................................................................................................................v
ACKNOWLEDGEMENTS........................................................................................................................vi
ABSTRACT.............................................................................................................................................viii
CHAPTER ONE..........................................................................................................................................1
1. INTRODUCTION...................................................................................................................................1
1.2Background of the Study....................................................................................................................1
1.3 Statement of problem.........................................................................................................................3
1.2 Objective of the study..................................................................................................................3
1.2.1 General Objective................................................................................................................3
1.2.2 Specific Objective................................................................................................................4
1.4 Research Questions............................................................................................................................4
1.5. Significance of the St udy.................................................................................................................4
1.5.1 Addis Ababa City Administration........................................................................................4
1.6 Scope of the study........................................................................................................................5
1.7 Definitions of key terms..............................................................................................................5
1.8 Description of the Study Area......................................................................................................5
1.9 Limitation of Study............................................................................................................................6
1.10 Organization of the study.................................................................................................................6
CHAPTER TWO.........................................................................................................................................7
REVIEW OF RELATED LITERATURE...................................................................................................7
2.1 INTRODUCTION.......................................................................................................................7
2.2 Concepts of Entrepreneurship......................................................................................................7
2.3 Women in Entrepreneurial Activities from Gender Perspectives.................................................7
ii
2.4The Difference between Women and Men Entrepreneurs..................................................................9
2.4 The Role of Women Entrepreneurs in the Economy..................................................................10
2.2.1 Creation of Job Opportunity...............................................................................................10
2.2.1 Increase in per Capital Output and Income........................................................................10
2.2.2 Generation of Foreign Currency Entrepreneurs.................................................................11
2.2.3 Better Utilization of Resources..........................................................................................11
2.2.4 Improvement of Business Policies and Procedure..............................................................11
2.2.5 Better Production Methods and Better Products................................................................11
2.2.6 Identification of Business Opportunity..............................................................................11
2.2.7 Conservation of Natural Resources....................................................................................12
2.2.8 Abolition of Monopoly and Enhancement of Competition................................................12
2.2.9 Business Opportunity for Women Suppliers......................................................................12
2.3 Challenging Factors of Women Entrepreneurs..........................................................................12
2.3.1 Cultural Norms and Attitudes of Society...........................................................................12
2.3.2 Financial Factors:......................................................................................................................13
2.3.3 Legal Aspects.....................................................................................................................13
2.3.4 Socio-Economies and Political Conditions........................................................................13
2.3.5 Work/Home Role Conflict.................................................................................................14
2.3.6 Changing Preparation.........................................................................................................14
2.4 Empirical literature review..............................................................................................................14
2.5 conceptual framework of the study..................................................................................................16
CHAPTER THREE...................................................................................................................................18
RESEARCH DESIGN METHODOLOGY...............................................................................................18
3.1 Introduction...............................................................................................................................18
3.2 Research design...............................................................................................................................18
3.3 Research approaches........................................................................................................................18
3.4 Population and Sample....................................................................................................................19
3.4.1 Target population......................................................................................................................19
3.4.2 Population of the Study.............................................................................................................19
iii
3.5 sampling size...................................................................................................................................19
3.6 Data Collection Techniques.............................................................................................................20
3.6.1 Questionnaires..........................................................................................................................20
3.6.2 Interview...................................................................................................................................20
3.8 Data Sources....................................................................................................................................20
3.8.1 Primary data..............................................................................................................................20
3.8.2 Secondary data source...............................................................................................................20
3.9 Methods of Data Analysis................................................................................................................21
CHAPTER FOUR.................................................................................................................................22
RESULTS AND DISCUSSION................................................................................................................22
4.1 Introduction...............................................................................................................................22
4.2 Demographic Characteristics of the Respondents......................................................................22
4.3 Type of the Business Run by the Women..................................................................................24
4.4 Challenging Factors of Women Entrepreneurs..........................................................................25
4.1Mechanism to Reduce those Challenges...........................................................................................27
4.5Role of Women Entrepreneurs in Development...............................................................................28
4.5 Mode of Communication of Women Entrepreneur....................................................................28
4.6 The Future Prospects of Women Entrepreneurs.........................................................................29
CHAPTER FIVE.......................................................................................................................................31
Conclusion and Recommendation.............................................................................................................31
5.1 Conclusion.......................................................................................................................................31
5.2Recommendations............................................................................................................................32
5.2.1To Women and Children Affairs................................................................................................32
5.2.2To Micro and Small Enterprise Institutions...............................................................................32
5.2.3To Technical and Vocational Education and Training College..................................................32
5.2.4To Micro Finance Institution.....................................................................................................33
5.2.5To women entrepreneurs............................................................................................................33
5.2.6To media....................................................................................................................................33
REFERENCES..........................................................................................................................................34
APPENDIX 1: QUESTIONNAIRE..........................................................................................................36
iv
ACRONYMS
AEMFI Association of Ethiopian Micro-finance Institutions
CSA Central Statistical Agency
MFIs Micro-financial Institutions
MSEs Micro and Small Enterprises
SPSS Statistics package of social science
SMEs Small and Medium Enterprise
LIST OF TABLES
Table 1: Demographic Characteristics of the Respondents ………………………… 24

Table 2: Challenging Factors of Women Entrepreneurship ………………………… 27
Table 3: Role of Women Entrepreneurs in Economics Development……………… 29
Table 4: Future Prospects of Women Entrepreneurs ……………………………… 30
LIST OF FIGURES
Figure 1: conceptual framework of the study……………………………….. 17
Figure 2: Age Categories of Respondents ………………………………...…… 25

Figure 3: Type of business run by women entreprenuer………………………… 26
Figure 4: Mechanism to reduce/avoid the problem of women entrepreneur … 28
v
ACKNOWLEDGEMENTS
The group members deserve unreserved thanks since successful accomplishment of this seminar
would have been very difficult without the equal participation of group member from the early
design of the seminar proposal to the final write-up including the generous sacrifice for
transportation cost during data collection.
The group is deeply grateful and indebted to women entrepreneurs for their willingness to kindly
and tirelessly devote their invaluable time to provide us with all the essential information during
the interview. The generous and comprehensive assistance of the Addis Ababa Women
Entrepreneurs Association with its staff members, namely Ato Damtew Abebe who is Deputy of
Trade Bureau. W/r Yalem Berhe who is Manager of the Association, during data collection has
unforgettable share to be appreciated for the betterment of the seminar.
vi
vii
ABSTRACT
Women entrepreneur is the core of economic development and key factor and production process
in any economy. But their contribution has not been adequately studied and developed. The aim
of this study is to assess the challenges and prospect of women entrepreneurs in Addis Ababa
city Administration. The data were gathered through questionnaires and interview for primary
source, while official documents were consulted for the secondary roots. The total 102
population was selected as a sample respondent and 81 of them were questionnaire to women
entrepreneurs. The questioner was prepared in closed ended and open ended to answer the basic
questions for the objectives of the study. In addition to that, interviews were conducted to three
bureaus heads such as Trade and Ministry, Women and Children Affairs and SMEs. Hence, after
the collection of data; it was analyzed using the descriptive statistics (frequency and percentages
by using SPSS. The finding of this study reveals that the challenges like lack of Land, financial
access and technology challenging them. Therefore, this study recommended that the concerned
governmental bodies should ensure and encourage women entrepreneur by active involvement,
capacity building and comprehensive support based on their growth level of women
entrepreneur. And also women entrepreneur should improve their entrepreneurship skills by
themselves through sharing experience each other and these should work in advertising and
promotion to get optional market and improve their customer handling by providing quality
products.
viii
CHAPTER ONE
1. INTRODUCTION
Entrepreneurship is one of the most important factors of the industrial growth and has a
significant contribution to the economic development of the society .Nevertheless, the nature
and degree of such contribution depends up on the industrial climate, material resource and
responsiveness of the political system to the entrepreneurial growth. Entrepreneurs contribute
relatively more in a society and provided high prestige and security (sinha, 2008).
Women’s productive activities, particularly in industry, empower them economically and

enable them to contribute more to over all development. Whether they are involved in small
or medium scale production activities, or in the informal or formal sectors, women’s
entrepreneurial activities are not only a means for economic survival but also have positive
social impacts for the women themselves and their social environment (UNIDO, 2001).
Women have been recognized as successful entrepreneurs as they have qualities desirable
and relevant for entrepreneurship development. In the processes of entrepreneurship
development, women are facing various problems associated with entrepreneurship and these
problems get doubled because of their dual roles as wage earners and homemakers, small
business play the role of stimulating economic activity creating jobs, alleviating poverty and
uplifting living standards, and this has been recognized internationally as well as in Africa
(van vuuren and Greoenewald, 2007).
Women in Ethiopia also account for the largest share of about 60 percent of the total
population involves in the MSEs are female in urban area (Gebrehiwot and Wolday ,2005).
1.2 Background of the Study
Women entrepreneurship is increasingly recognized as an important driver of employment,

productivity, innovation and economic expansion and it is commonly accepted as a key
aspect of economic dynamism .The growth in women entrepreneurs from economic
motivation demonstrates the resiliency and stead fastness of women entrepreneurs worldwide
1
has demonstrated their ability to take control of their economic future, by choosing the risky
and often difficult option of entrepreneurship (ILO, 2003).
Women owned the dominant sectors such as agriculture; textiles and clothing that are
becoming more closely integrated into the global trading system. However ,women enter
prunes often lack the same access as men to credit , training, technology and information
that are necessary to take advantage of new economic opportunities .Nowadays,
globalization has created a vital chance to improve the livelihoods enabling the significant
reduction in absolute poverty that has resulted in better improvement of their life. As a
result of this, women entrepreneurs take a lion’s share for the contribution of economic
development by creating wealth as well as jobs (Jeanne 2002).
Most women entrepreneurs of the 1980 had little formal preparation for a business career.
Many workers 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 firsthand
experience. Today major changes in the ways women entrepreneurs prepared to start their
own venture are occurring (D.F. kuratko, 1998).
The formulation of Ethiopian Women’s policy in 1998 is aimed at empowering women by

creating favorable context and facilitating conditions to will make them to access and cover
resource and their labor product at one hand and participate in the overall developmental
activities of the nation at broader levels (EWP, 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 towards creating meaningful and sustainable employment and a vibrant small business
basis. The first generation of women entrepreneurs association was established in 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
Seminar Research Page2
which were 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.
1.3 Statement of problem

According to Organization for Economic Cooperation and Development (OECD ,2004)
stressed that women entrepreneurs have untapped source of economic growth ,create new
jobs for themselves and others, provide society with different solutions to
management ,organization and business problems and exploit entrepreneurial
opportunities ,in the face of encouraging remarks about the capacities of women enterprises
have significant economic power as well as being a major economic instrument for
sustainable development.
However, the USAID (2001) pointed that women owned and operated micro enterprises
grow less rapidly and likely to close sooner than male counter parts. The women
entrepreneurs are faced by the constraints of loans, marketing problems and lack of
accessibility to initial capital (Stevenson and Jarillo, 2003).
The major constraints including problem in credit from the micro finance institution, the
legal and regulatory environment, financial business information, business premises (at
affordable rents), the acquisition of skills and managerial expertise, access to appropriate
technology, culture and attitude of society, lack of marketing and production area . Gender
equality a prerequisite for the promotion of women opportunity and participated in business
activities all sectors.
Therefore, the group was intending to run holistic investigation on existing challenges and
future prospects of women entrepreneurs in Addis Ababa City Administration
1.2 Objective of the study
1.2.1 General Objective
This study was designed by the group with the general objective of intentionally examining
the challenges and prospects of women entrepreneurs in Addis Ababa City Administration.

1.2.2 Specific Objective
 To describe the role of women entrepreneur in economic development

 To describe the difference between women and men entrepreneurs interims of their
participation.
 To assess the challenging factors of women entrepreneurs
 To describe the future prospects of women entrepreneurs
1.4 Research Questions
On the basis of the stated specific objectives, the following questions were raised in the
study.
 What were the challenging factors of women entrepreneurs in Addis Ababa City
Administration?
 What were the roles of women entrepreneurs in economic development in Addis
Ababa City Administration?
 What would be the future prospects of women entrepreneurs in Addis Ababa City
Administration?
 Were women entrepreneurs very different from their male counter parts in Addis
Ababa City Administration
1.5. Significance of the Study
This study was significance role as availing information related women entrepreneurs
practices. Women entrepreneurs were important issue any time because it improves
economic condition of the country. Hence the researcher expected the following benefits
from the study.
1.5.1 Addis Ababa City Administration
The result of the study feeds Addis Ababa city Administration in which the study undertaken,
with tangible analyzed facts and information critical for decision making and policy
direction. The result would serve to design new way of implementation techniques and to fill
the gaps identified from the routine.

1.6Scope of the study
The time constraint and high cost of covering wider country, this study deliberately
addressed challenges and prospects of women entrepreneurs of only in Addis Ababa City
Administration.
1.7 Definitions of key terms

Entrepreneur:-is the owner of a business who attempts to make money by risk and
initiatives.
Entrepreneurship:-is the process of designing and running a new business, which is often
initially a small business.
Self- actualization:-the realization or fulfillment of one’s talent and potentiality.
1.8 Description of the Study Area
Addis Ababa is the capital and largest city of Ethiopia. It is the seat of the Ethiopian federal
government. It is located at 9°1′48″n38°44′24″ecoordinates9°1′48″n38°44′24″e. The city lies
at the foot of mount Entoto and forms part of the watershed for the awash. From its lowest
point, around bole international airport, at 2,326 meters (7,631 ft) above sea level in the
southern periphery, Addis Ababa rises to over 3,000 meters (9,800 ft) on the Entoto
Mountain to the north. It lies at an elevation of 2,200 meters (7,200 ft).According to
PopulationOf2017.com it estimated about 6.6 million. Out of the total population, about 51
percent are women.

Source: www.addisababacity.gov.et
1.9 Limitation of Study
Since the area of research was broad and needs detail analysis, there was limitation during
the study. That included operational limitations like shortage of time, shortage of budget or
finance and some respondents did not willing to fill and return the questionnaires on time.
Moreover, the inability to get adequate documents was the major problems when the study
was conducted.
1.10 Organization of the study
The study consists of five chapters. The first chapter deals with introductory part which
consists of background of the study, statement of the problem, objectives of the study,
significance of the study, scope of the study and limitations of the study. The second chapter
dealt with review of related literature; the third chapter dealt with research methods and
methodology; the fourth chapter dealt with discussions of data analysis and presentation was
undertaken from analyzed data. At the end chapter, conclusions were drawn based on
analysis and possible recommendations were forwarded by the researcher based on
investigation.

CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 INTRODUCTION
In this chapter of literature review the group identified the necessary literature based on the
statement of problem and the objective of the study such as concepts of entrepreneurship, the
difference between women and men entrepreneurs, women in entrepreneurial activities from
gender perspectives, profiles of women entrepreneurs the role of women entrepreneurs in the
economy challenging factors of women entrepreneurs
2.2 Concepts of Entrepreneurship
The word entrepreneurs originated in 17th century from French word “Enterprendre” which
means, to undertake”. The entrepreneur is the one who undertakes 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.
2.3 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. The Business development Bank, (1999) found
significant differences between men’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. 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 times 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.(Shriver report 2014).
Self-actualization is the most important reason given by women in surveys of (Valdez, A.,
and Cepeda, A., 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 someone 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.
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 though there are continuing calls for further studies comparing women to men
business owner (Fasci and valdez, 1998).
As (Moore and Buttner, 1997) assert, research still tend to measure women according to the
traditional models of business ownership created by the men who react to the environment,
and do whatever it takes to brings the venture fruition. Sexton and Bowman (1990) found
that in comparison to men women has 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 appear

to vary according to different women’s position interims 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 men in obtaining high quality assistance including
resource (Aldrich, H.E., 2012).
2.4The Difference between Women and Men Entrepreneurs

Women participation in entrepreneurship is different from country to country depending on
the cultural difference however; in many societies women do not have the benefit of the same
opportunities as compared to men. In many transitional economics progress has been
achieved in opening doors to education and health protection for women but political and
economic opportunities for women entrepreneurs have remained insufficient concerted
efforts are needed to enable women entrepreneurs to make better economic choices and to
transform their businesses in to more competitive businesses enterprise generating income
and employment through improved production (OECD, 1997).
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 independence. 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 secure and close friends.

The value of both groups is 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
women in specifics society and problems the fact as female business and other
entrepreneurial activities owners. As Taylor (1990) 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 bring. However,
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 men
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 interims of economic, social, cultural and political environment of the country
as well as in the town’s women entrepreneurs.
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. Some of the contribution is the following:-
2.2.1 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 herself.
2.2.1 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 goods and services in the economy will
also be increased eventually leads to an increase in perceptual output and income in the
economy.

2.2.2 Generation of Foreign Currency Entrepreneurs
The export business generates 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.
2.2.3 Better Utilization of Resources
some entrepreneurs become the successful 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 (UN,1995).
2.2.4 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 a new ones which ultimately result better and
safer business environment (shiver Report, 2014).
2.2.5 Better Production Methods and Better Products
Women entrepreneurs often introduce better production methods in terms 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.
2.2.6 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 the reality is that,
entrepreneurs hardly succeed in meting all the market demand and meet the rest of the
markets needs

2.2.7 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 (UN Women, 1995).
2.2.8 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 monopoly similar, supplying substitutes
goods and service, they faster keener completion in many market, which naturally results in
lower price for customers( Shriver report 2014).
2.2.9 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 (UN, 1995)
2.3 Challenging Factors of Women Entrepreneurs
2.3.1 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 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.
Male and females domination in country is greater constrained duty resistance,
discriminations and other related cases (H.Ronili, 1987).

2.3.2 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 is 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
(H.Ronili ,1987).
2.3.3 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 thereby 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 (Zewdu, 2002).
2.3.4 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 (Zewdu ,2002).

2.3.5 Work/Home Role Conflict
The growth of women-owned business is reflection of the changes society. However, this
societal change also poses critical problems for women entrepreneurs a tension exist in the
form of inter role conflict, in which the pressure from 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 (Zewudu,2002).
2.3.6 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 decision were all matters learned through firsthand experience. Today major
changes in women an entrepreneur 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 decade are quite different
from their counterparts of one or two decades earlier.
2.4 Empirical literature review

This section of literature review concentrates on the previous studies that have been
conducted in the area of challenges of women entrepreneurs in developing country in general
and in Ethiopia in particular. These previous studies conducted by different scholars were
come to the conclusion based on their findings. The major empirical studies that are related
to the challenges and prospects of women entrepreneurs in developing countries as well as in
Ethiopia were discussed and summarized below.
The potential of SMEs on women economic and social development has been studied by
academics, development agencies and policy makers over the past two decades. The basis of

this interest has been a growing belief that through support for women small enterprise
development and entrepreneurship, wider developmental goals and targets can be met. These
include poverty reduction, improved health of families and communities, improved literacy
and educational achievements, women empowerment and wider economic development
(Berihu et.al. 2014). Micro and small enterprise are considered important in the contribution
the socioeconomic empowerment of women. In many countries, women, who are a
significant proportion of the poor and suffer disproportionately from poverty, operate many
of these enterprises. With increasing labor force participation among women in developing
countries in the region, a greater number of women depend on micro-enterprises in the
informal sector for survival. Hence, micro and small scale enterprise development is
increasingly being seen as an essential ingredient in the promotion of broad-based growth, in
improving the well-being of the poor and women by providing significant income and
employment generating opportunities, and by encouraging indigenous investment (Charles
and Boon-Chye 2005).
The contributions of women are no longer debatable as numerous scholars have stated that
African women provide some 60-80% of food for family consumption and that the economic
growth of some nations is attributable to female entrepreneurs. for instance In Nigeria,
majority of women are engaged in agriculture and informal sectors of the economy; they
constitute about 60 percentage of Nigerians farm labor and produce over 90 percentage of the
domestic food supply (Oluwole 2014).
In Ethiopia, about half of the urban workforce is engaged in the informal sector Even if the
composition of the female informal workforce varies across regions, the majority of
economically active women in developing countries makes up a significant share of the
micro-enterprise. Women in Ethiopia also account for the largest share of the MSEs Sector
(Rahel and Issac 2010). About 60% of the total populations engaged in the MSEs are female
in urban areas (Gebrehiwot and Wolday 2005).
According to the report by Zenebe at the 5th African union ministries for gender and women
affair in Addis Ababa, 2014, 40% of women are benefiting in micro and small scale
enterprise development activities. The result obtained from the Survey of MSEs in Selected
Major Urban Areas of Ethiopia by the ministry of urban development and construction

(2013) reveals that about 6531 (44%) jobs have been generally created for females from
MSEs for instance in Addis Ababa 34.6% of MSEs are owned by women. One of the
objectives of entrepreneurship among women is to be free from the economic dependency so
that they can be empowered (Dayanandan 2014.
In general Compared to men, women in Ethiopia are clearly in a disadvantage position in all
aspects. For instance regarding employment, according to the Survey by the ministry of
urban development and construction 2013 in Addis Ababa 30.5% of females are
unemployed. Also the survey conducted by the CSA (2004) showed that women account for
less than half (43%) of the total employees in the country. Considering the percentage of
female employees from the total number of employees by employment type, the highest was
in domestic activities (78%) and followed by unpaid activities (59.3%). Women's formal
employment in industries and the Civil Service is lower than men. They operate about 65%
of micro-enterprises and 26% of small scale manufacturing enterprises; their low
participation in manufacturing is due to low level education and training, lack of exposure to
the business world, meager financial and human capital; and problems related to ownership
rights for collateral purposes. Women on average earn about 86% of what men earn
(Ministry of Labor and Social Affairs 2012). In the Civil Service, women represent 32% of
permanent employees with wide regional variation. They concentrate in routine type and low
paying (clerical and fiscal, custodial and manual) jobs; 10% professional and sciences; and
23% in administrative positions. Concentration in non-professional and low paying jobs is
caused by women's low education and training, traditional attitudes, lack of role models, non-
assertiveness and limited access to information. In the informal sector on the other hand,
women are involved in large numbers, and represent 60% of those engaged in the sector.
Many are engaged in small business that require small capital, not demanding sophisticated
management and bookkeeping skills, particularly street vending (Ministry of Women Affairs
2006).
2.5 conceptual framework of the study

Based on the above theoretical framework the following conceptual framework was
developed, various researchers have identified many challenges that face women
entrepreneurs. These challenges hinder the women from reaching their job creation, wealth

distribution and poverty alleviation objectives. The Conceptual framework of the study,
which indicating the challenges of entrepreneurs in women unemployment
Figure 2.1 conceptual framework of the study
Financial factors
Legal aspects Cultural norms
Challenges of women
entrepreneurs
Socio-economic and Changing

political condition preparation
Home role conflict
Source: Designed by researchers based on literature review, 2018.

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter deals with methodology such as research design, research approaches,
population and sampling size, data collection techniques (questionnaires and interview), data
sources(primary and secondary data), methods of data analysis.
3.2 Research design

Regarding the research design, Kothari (2004) stated that question of good design is related
to the purpose or objective of the research problem and also with the nature of the problem to
be studied. Thus, this study employed descriptive research design to assess the challenges
and prospect of women entrepreneur in Addis Ababa city Administration. The rational
choosing this design is helping to describe and interpret what is ,analyzes ,describes the depth
understanding of the existing situation and helps to explain the major challenges that
facedwomen entrepreneur in the Addis Ababa city Administration. Descriptive method
concerned with determining the frequency with concerned in which an event occurs.
3.3 Research approaches

For the purpose of this study both qualitative and quantitative approach was employed.
Bryman and Bell (2003) suggest that the combination of both qualitative and quantitative
approaches as the most valid and reliable way to develop understanding of complex
situational reality. This was done with a view to create a better understanding of the research
problem. In other words, qualitative method were appropriated to study the select issues in
depth and to assess attitudes, behaviors, and opinions of the respondents, quantitative method
helps us to study the selected issue in breadth.

3.4 Population and Sample
3.4.1 Target population
The target population of the study was concerned with women’s entrepreneur in Addis
Ababa City Administration. These groups were targeted because the research group
believes that they are appropriate people to give correct information and answer the
question asked on questionnaires.
3.4.2 Population of the Study

The population of the study was 102 women entrepreneur in Addis Ababa city
Administration. The research group randomly selected 17 wordas which include three sectors
that means Trade and Industry Bureau, Women and Children Affairs Bureau and Micro and
Small Entrepreneurs.
3.5 sampling size
Sample size determination concerned with the objective of gathering sufficient

information that can effectively address the research question and enhance the validity
and reliability of the study. Otherwise, the result becomes misleading for the population
as a whole. For this study is 5% with confidence level 95%).To tangible this study we
use Slovin’s formula is quite popularly use to deterring the sample size, especially in
undergraduate thesis in education and social sciences, may be because it is easy to use
and the computation is based almost solely on the population size.
The sample consisted of randomly selected women entrepreneur in 17 Woredas of Addis
Ababa City Administration. Employing the following formula the sample size determined to
be 81 women entrepreneurs. The slovin’s formula is given as follows:-
n= N / ( 1+ N * e^2 )
Where
N: population size
n: sample size
e: significance level, for e.g. ( 0.05 )

Sample size for this research was determined as follows
n= 102/(1+102*0.05^2) = 81
By the above formula out of 102 number of target population 81 samples were taken as
respondents (Slovins,1960).
3.6 Data Collection Techniques

The techniques use by the research group was questioners and interview. In order to achieve
the intended objective, data collection technique was very important.
3.6.1 Questionnaires
The questionnaires have open ended and closed ended parts, prepared in the English
language, then translated in to the local language Amharic. After the samples were draw, the
questionnaire was distributed to the select respondent to gather primary data.
3.6.2 Interview
To obtain detail information on the issue (topic) interviews were hold in the concerned and
key governmental office heads. This intended to get further information on the area of study
noted in face to face interviewers. Interview is a useful tool because it is an active process
which directly involves the interviewer and interviewee. All the interview questioners were
all ready pre-determined in open-ended format and enabled the researcher to manage it
easily.
3.8 Data Sources

3.8.1 Primary data
The researcher has used both primary and secondary source of data. The primary data was
mainly collected from respondents through quaternaries from women entrepreneurs.
3.8.2 Secondary data source

The secondary data, which include information relevant to the study, was obtained mainly
from different reports, bulletins, websites and literatures and also from government
organizations.

3.9 Methods of Data Analysis
After the data were gathered through qualitative and quantitative data analysis techniques
were applied to present and interpret the obtained data. The researcher used the statistical
package for social science software (SPSS) version 20. The interview question was used to
analyses for descriptive narration.

CHAPTER FOUR
RESULTS AND DISCUSSION

4.1 Introduction
This chapter deals with the portion of result and discussion part that consists of the
demographic characteristics of the respondents, type of the business run by the Women,
challenging factors of Women Entrepreneurs, role of Women Entrepreneurs in economics
development and the future prospects of Women Entrepreneurs.
4.2 Demographic Characteristics of the Respondents
The characteristics of the respondents, namely age of the respondents, sex, marital status,
education level are believed to influence entrepreneurship in different aspects.
Table 1: Demographic Characteristics of the Respondents

Variables Frequency Percent
Marital Status Married 54 66.7
Single 27 33.3
Total 81 100
Educational Level Secondary School 22 27.2
Diploma 18 22.2
Degree 15 18.5
Certificate 14 17.3
Primary school 12 14.8
Total 81 100
Source: SPSS Result of own survey, 2018
The detail is shown in Table 1 where all the sampled respondents were women with marital
status of 27(33.3%) single and 54(66.70%) married women. It concluded that more than half
of the respondents are married which indicates that married women have more chance or
more necessity to start their own business. From the total respondents the education level of
22(27.2%), 18(22.2%), 15(18.5%), 14(17.3%), and 12(14.8%) of the respondents were

Secondary School, Diploma, Degree, Certificate and Primary School, respectively. The
proportion difference is an indication of the fact that the educated women do not want to
limit their lives in the house they work anywhere and anytime.
As presented in Figure 1 below, the age category of women entrepreneurs varies as revealed
by the respondents.
Figure 1:Age Category of Respondent
50 37(45.7%)
45
40
35 23(28.4%)
30 21(25.9%)
25
20
15
10
5
0
20-29 Years 30-39 Years 40-49 Years
It was observed from the sampled women that 37(45.7%) were younger women of age 20-29
years. Surprisingly, older women of age 40-49 years ranked the second according to
23(28.4%) of the respondents. This is probably due the fact that the larger the age of youth is
the better experience for different economic activities. The remaining portion of respondents
21(25.9%) were with age category of 30-39 years.

4.3 Type of the Business Run by the Women
Much criticism has been voiced in Ethiopia, as in other developing countries, with regard to
the types of entrepreneurial activities which women are engaged in. The activities of the
women entrepreneur continuing to use of traditional or domestic skills rather than on the
development of new skills. It appears however, that developing alternative, appropriate
strategies to counter this criticism is a difficult task, mainly because of the diverse
socioeconomic roles of women, involving both productive and reproductive work, and partly
because of limited resources on the part of the promotional agencies. This seminar paper
investigated some of the entrepreneurial activities that women entrepreneurs of Addis Ababa
City Administration engaged as illustrated in Figure 2.
Figure 2: Type of business Run by Women
5(6.2%)
6(7.4%)
26(32.1%)
Stone and Block Construction
Wood and Furniture
Food and Restaurant
Metal Work and Engineering
Leather Product
11(13.6%)
33(40.7%)
The types of business that respondents showed vary but the dominant were Food and
Restaurant and Leather Products according to 40.7% and 32.1%, respectively. Women
entrepreneurs were also engaged in Metal Working and Engineering according to 13.6% of
the respondents. There were also women engaged in Wood and Furniture work and Stone

and Block Construction with varying proportion indicated above. The secondary data review
also indicated that women entrepreneurs were engaged in business type other than
aforementioned like beauty salon, shop, Barber and milestone. All this indicated that the
majority of them participated in Hotel and Restaurants due to the associated interest of
women with this business type and the relatively low capital and training requirements.
4.4 Challenging Factors of Women Entrepreneurs
One of the basic problems that we identified in preparing this report is the lack of adequate
empirical studies on women entrepreneurs in Ethiopia (Zewde & et al, 2002). Women-owned
and operated small enterprises that are relatively growth-oriented are practically unexplored
from a research perspective. In fact there is no appropriate institution which conducts
research on entrepreneurship development for MSEs in general, let alone on women’s
entrepreneurship. This seminar paper similarly identified various factors challenging the
effectiveness of women entrepreneurs as illustrated in Table 2 depicted bellow.
Table 2: Challenging Factors of Women Entrepreneurship

Challenges Frequency Percent
Lack of finance 24 29.6
Lack of market and production
22 27.2
area
Cultural and attitude of society 15 18.5
Legal aspects 14 17.3
Lack of education and training 6 7.4
Total 81 100
From the above table 29.6% of the respondent’s lack of financial support was the leading
challenges that women face in entrepreneurial activity. They criticized that commercial banks
in Ethiopia are not keen on financing women entrepreneurs in general. Their minimum loan
size and collateral requirements are not often feasible for small entrepreneurs, particularly

those run by women. At this point in time, micro-financial institutions (MFIs) are the only
formal institutions that are accessible to entrepreneurs/micro and small enterprises (MSEs).
In fact, MFIs do not finance small enterprises but generally lend for household and domestic
requirements. Although MFIs have been striving to expand their outreach both in terms of
the area and size of clients, their loan product development capacity is limited. A recent
report by the Association of Ethiopian Micro-finance Institutions (AEMFI) asserts that the
loan products of the MFIs in the country are supply-driven and are offered to all clients
indiscriminately. These loan products do not suit the particular needs of all sizes of
entrepreneurs.
Whereas 18.5% and 17.3% of the respondents, correspondingly, claimed that cultural related
plus attitude of the society and the legal aspects were challenges that women entrepreneurs
faced. Lack of entrepreneurial skill training and education was a challenge as indicated by
7.4% of the respondents. The finding coincides with the report of Ladzani and Van Vuuren
(2002) who agree to a certain extent, stating that organizations wishing to develop
entrepreneurship by education presuppose that the lack of training of entrepreneurs is the
main reason for venture failure.
The rest of 27.2% respondents were forwarding the challenges to lack of market and
producing area. They claimed that it is essential to have greater availability of plots of land
and premises in strategic locations to produce and market their products. Lack of appropriate
premises tends to force many women to operate their businesses from home or resort to
unsuitable and sometimes unsanitary working conditions. They are saddened with the often
harassment from Policemen often harass some women entrepreneurs when they attempt to
operate their businesses in places such as street corners. They also face serious difficulties in
marketing their products or services. Research has revealed that this problem is often caused
by the fact that women entrepreneurs produce and try to market their products or services
around the homestead, thereby limiting their market to individual buyers or the immediate
neighborhood. Zewde & et al (2002) reported that these practices often stem from a lack of
information about market opportunities or access to markets.

4.1Mechanism to Reduce those Challenges
Challenges of women entrepreneurs can be reduced to the extent of avoiding it via various
mechanisms depicted in Figure 3. Regarding to reduce or avoid those challenging factors 28(34.6%)
of the total respondents responded financial support is relatively the best mechanism to tackle the
challenges.
Figure 3: Mechanism to reduce those challenges
120 100
100 81
80
60
40 2834.6 2125.9 1518.5 17 21
20
0
e g ls t l
nc in ria en ta
ta ia n e m To Frequency
sis tr at se
as e m erti Percent
cia
l
ovid an
d
ad
v
an pr ac
e d
g fin pl an
in g r e
in
vid vid uctu
o o r
pr pr st
fra
in
o ve
pr
im
Source: SPSS Result of survey, 2018
Capacity building by providing education and entrepreneurial skill training was also helpful to
reduce/avoid the challenges of women entrepreneurs according to 21(25.9%) of the respondents. This
is in line with the fact that entrepreneurship training can complement the early stage awareness-
raising function of entrepreneurship education, as it provides the more practical skills that
entrepreneurs require when they are ready to set up their business. The remaining portion of
15(18.5%) respondents told that facilitating working place and materials had paramount importance
to reduce/avoid challenges of women entrepreneurs. There were respondents calling for other
solution, such as reducing cost of raw materials, working with government, etc. From the above
information we can concludes that, to reduce their challenging factors providing the financial,
education and training are the best solutions. Furthermore, their low levels of education, as well as
various social and cultural inhibitions and values, tend to have significant implications for the choice
of enterprises which women can engage in.

4.5Role of Women Entrepreneurs in Development
Women entrepreneurs play invaluable role the development of a country. As indicated in

Table 3 the majority of the role of woman entrepreneurs in economic development is creation
of job opportunities for themselves and for their societies. Other scholars similarly witnessed
that entrepreneurs will continue to be critical contributors to economic growth through their
leadership, management, innovation, job creation, productivity, and formation of new
industry.
Table 3: Role of Women Entrepreneurs in Development

Economic Role Frequency Percent
Creation of job opportunities 44 54.3
Better utilization of resources 22 27.2
Generation foreign currencies 9 11.1
Reduces dependency on family 6 7.4
Total 81 100
Source: SPSS Result of survey, 2018
Various stands regards to the role of woman entrepreneurs in economic development was
observed during this study. More than half of the respondents (54.3%) believe that women
entrepreneurs have a share in economic development by creating job opportunities for
themselves or to the nations. The remaining 27.2% and 11.1% of the respondents,
respectively, answered women entrepreneurs exploit better utilization of resource and
generates foreign currencies to advances the economic development. Though it was
insignificant, there were respondents who added that the role of women entrepreneur in
economic development is beyond the role mentioned above. For instance, it protects social
crisis of hopelessness from joblessness.
4.5 Mode of Communication of Women Entrepreneur
Women entrepreneurs are outreaching their business through different mode of

communication. From the total respondent 42(51%) are participating in any accessible
market to dispose and sell their products. There are others who are frequently reacting with
the government to exploit the facilitated conducive market environment. Though most of

them are discouraged with the difficult to afford cost of media for massive advertisement
about 10(12%) of women entrepreneurs responded that they are sometimes communicating
via media to expand their customer base.
4.6 The Future Prospects of Women Entrepreneurs
Though the future is uncertain women entrepreneurs have planned to improve quality and
shelf life of products, increase manufacturing products, advertize their business, Better job
opportunity, sharing experience of others by participating national and international Bazaar,
being the prominent exporter and expand their business according to 34(42%), 12(15%),
10(12%), 9(11%), 6(7.4%), 6(7.4%) and 4(4.9%), respectively.
Table 4: Future Prospects of Women Entrepreneurs

Prospects Frequency Percent
Improve quality and shelf life of
34 42
products
Increase manufacturing products 12 15
Advertizing the business 10 12
Better job opportunity 9 11
Exporter 6 7.4
Experience sharing by participating
6 7.4
national and international Bazaar
Business Expansion 4 4.9
Total 81 100

In the open ended questionnaire and interview of different office heads indicates that the
main challenges were the working place not accessible to the market , lack of skill to adopt
and select new technology, power interruption made their machinery damaged repeatedly
beyond the interruption of their work and delaying their customer appointment, lack of
transport services and high collateral requirement for micro finance and other institutions,
rented some parts of their working areas to persons in order to get additional income from
rent ,lack of incentives for this work from the TVET , at the time when training was given
women’s require to be paid premium, less attention to training. As a result, the respondents
expose that these challenges hinder in women entrepreneurs activity in Addis Ababa city
Administration.
As generalized from the data presented the women entrepreneurs in Addis Ababa city
Administration it is necessary to existence of a strong network amongst women entrepreneurs
and organizations is also highly essential for increasing the visibility of women’s
entrepreneurship at government level and among key stakeholders. Such measures should
help to draw attention to the need for a better enabling environment for the sector.

CHAPTER FIVE
Conclusion and Recommendation
5.1Conclusion
In conducting to this study, wide range of literature on women entrepreneur in general were
reviewed women enterprisers in the country playing a vital role in economic development
of women’s through employment creation, utilization of local resource and inputs and
transferring of knowledge, etc. However they are not fully utilized because of various
barriers, especially women entrepreneurs in Addis Ababa city administration.
The study identified women entrepreneurs in Addis Ababa city administration that challenges
their activities include, education and training, lack of finance, lack of market and production
area and also lack of infrastructure (road, water, and electricity) was identified.
The majority of the role of woman entrepreneurs in economic development is creation of job
opportunities for themselves and for their societies. Other scholars similarly witnessed that
entrepreneurs will continue to be critical contributors to economic growth through their
leadership, management, innovation, job creation, productivity, and formation of new
industry.
The major finding is organized based on the thematic objectives of the study .The study
revealed that the majority of women entrepreneurs under the category of age 20-29 (45.7%)
and educational level of secondary school (27%). In addition to that, the most respondents
their marital status is married (66.7%).The fact that the larger the age of youth and married
women is better experience for the different economic activities. Finally mechanism to
reduce different challenges, from the total respondent 28(34.6%) financial support, 22
(27.2%) market and production area, 15(18.5%) cultural and attitude of society are the most
important solution to tackle the above challenge.

5.2Recommendations
5.2.1To Women and Children Affairs
Women and children affair Bureau should encourage and promote active involvement of
functioning women starting committee, coordination of stock holders, private sectors and
women entrepreneurs at large in order to develop their business performance. Give emphasis
to sustainable attitudinal change capacity building and skill develop of support provider and
women entrepreneur, Compressive provision of support based on the development level of
women entrepreneurs through awareness creation and capacities business operators so that
they could able to understand how they could work and change their attitude in the growth
oriented sectors. In addition to this bring attitudinal change to aware the whole society about
gender mainstreaming.
5.2.2To Micro and Small Enterprise Institutions

MSEs institution should design a different screening mechanism while selecting candidates
in training and their ethical activities and commitment to work should also be taken in to
account .MSEs should also discuss with municipalities and other administrative bodies to
make women entrepreneurs owners of working premised (land). The MSEs should provide
the necessary infrastructure especially road, water, electric city and reduce delays in
formulizing women entrepreneur ,improper services delivery in one stop service ,give
support at the time entrepreneurs. With this regard to support providers and developing
knowledge and skill to execute the development plan of sector effectively and prepare and
implement support based on knowledge and skill.
5.2.3To Technical and Vocational Education and Training College

TVET institution should provide technical skills and business training supports to women
entrepreneurs so as to capacitate those women entrepreneurs to be competitive and develop
an entrepreneurial spirit and improve managerial skills in both domestic and international
levels. In addition, the TVET collage should provide business consultants to women
entrepreneurs who would be easily accessible whenever they are needed. The training
providing by the TVET College to women entrepreneurs should be based on the market
driven technology and their needs.

5.2.4To Micro Finance Institution
The study recommends that microfinance institution should minimize the collateral
requirements from the women entrepreneurs to widen their sources of capital that can boost
to enable an adequate start-up for the promotion of their business performance. Micro
Finance Institutions should change the practice of “group lending system” since members in
a group cannot have the same thinking level attitude and commitment as there as personal
differences. Hence institutions should allow individual lending systems. The procedures for
securing loans must be simplified or greater support offered by the lenders to supports some
microfinance institutions also need to be sensitized to the nature of entrepreneur and the
sustainability of their business.
5.2.5To women entrepreneurs

In the time of globalization, it would be unthinkable to get jobs easily because of the serious
competition throughout the world most business requires active involvement of all
stockholders including business owners themselves to improve their entrepreneurship skills
by themselves through sharing experience each other. They should work in advertising and
promotion to get optional market and improve their customer handling by the providing
quality products and they sold make effective business plan that helps their business
development ,improve selling culture ,change their altitude for the business activity who
would not expect immediate profit.
5.2.6To media
Media is one of the most important socializing agents that millions of lives are being
conditioned and shaped by what is heard on the radio, what is viewed on television. Media
transmit values and attitudes that highly affect the attitude and behavior of society. However,
considering the important role ICTs play in transmit of information to advertizing and
promotions of different activities (leather product, clothing, food and restaurant, wood and
furniture, stone and block contraction) those worked by women entrepreneur and create
access for women to use it. For example the formation of the Ethiopian Media Women
Association (EMWA), with the objectives of training and exchange of experience for
capacity building is an attempt to solve the problems that face women to participate in many
activities and the media.

REFERENCES
1. Aldrich, H. E. (2012), .The emergence of entrepreneurship as an academic field: A
personal essay on institutional entrepreneurship. Research Policy, 41(7): 1240-1248.
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Perspective and Future Directions‟. Entrepreneurship Theory and Practice 16(4): 5-
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3. EWP,(1998) Ethiopian women policy ,Ethiopia Addis Ababa.
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Owned Small Accounting Practices
5. Hodgetts, Richard M Kurakto, Donald F. “Entrepreneurship: A contemporary
approach” Fourth edition, the Dryden press, 1998.
6. ILO,(2003):Ethiopian women Enterpruenures:going for growth, Geneva, international
labor office.
7. Jeanne, M.Ruane. (2002).the Rise of women entrepreneur, people, process, and
global frends, London, Quorum books.wefport.
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Ceiling. Thousand Oaks, California: Sage.
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countries. Working paper NO. 7.Lagos Want. A company they can call their own;
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Enterprendre in SMEs.

15. Valdez, A., and Cepeda, A. (1998). Homegirls, chicks, and kicking it: Females
associated with Mexican American male gangs. Unpublished paper. San Antonio,
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APPENDIX 1: QUESTIONNAIRE
CIVIL SERVICE UNIVERSITY
College of Finance, Management and Development
Department of Public and Social Security

Management
Questionnaire filled by respondents
Dear respondent we 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
□ Edegree □F 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 Leather product □

6. 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. Lake of market and production □
7. How we can reduce or avoid those challenging factors.
A. Providing financial assistances□
B. Providing education and training□
C. Providing place and materials□
D. Improve infrastructure and advertisement □
8. What is 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. Reduce dependency on family □
9. What will be the future prospects of women entrepreneurs in the Town?

___________________________________________________________________________
__________________________________________________________
10. Are women entrepreneurs different from men entrepreneur interims of participation?

A. Yes □ B. No □
11. If your answer is “yes”_________________________________________
_____________________________________________________________________
__________________________________
12 . What the major action has been taken to solve the above problems?
___________________________________________________________________________
__________________________________________________________

Appendix 2 interview Questions
1/ what problems did you face while managing women entrepreneurs in MSEs?
2/ Do you have promotional policy, strategy and action toward women entrepreneurs
activity?
3/ from which sector do you give more priority than others? Why?
4/What kind of measurement mechanism is taken to avoid challenges of women

entrepreneur?


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COLLEGE OF FINANCE, MANAGEMENT AND DEVELOPMENT

DEPARTMENT OF PUBLIC AND SOCIAL SECURITY MANAGEMENT

SEMINAR FOR PUBLIC MANAGERS

CHALLENGES AND PROSPECTS OF WOMEN ENTREPRENEURS IN

Submitted To: Prof. DURGA

Addis Ababa, Ethiopia

Table 1: Demographic Characteristics of the Respondents ………………………… 24

Figure 1: conceptual framework of the study……………………………….. 17

Figure 2: Age Categories of Respondents ………………………………...…… 25

Women’s productive activities, particularly in industry, empower them economically and

1.2 Background of the Study

Women entrepreneurship is increasingly recognized as an important driver of employment,

The formulation of Ethiopian Women’s policy in 1998 is aimed at empowering women by

1.3 Statement of problem

1.2 Objective of the study

1.2.1 General Objective

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 To describe the role of women entrepreneur in economic development

1.4 Research Questions

1.5. Significance of the Study

1.5.1 Addis Ababa City Administration

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1.7 Definitions of key terms

Self- actualization:-the realization or fulfillment of one’s talent and potentiality.

1.8 Description of the Study Area

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1.9 Limitation of Study

1.10 Organization of the study

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REVIEW OF RELATED LITERATURE

2.2 Concepts of Entrepreneurship

2.3 Women in Entrepreneurial Activities from Gender Perspectives

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Women business developing certain characteristics according to the circumstances of

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2.4The Difference between Women and Men Entrepreneurs

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2.4 The Role of Women Entrepreneurs in the Economy

2.2.1 Creation of Job Opportunity

2.2.1 Increase in per Capital Output and Income

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2.2.3 Better Utilization of Resources

2.2.4 Improvement of Business Policies and Procedure

2.2.5 Better Production Methods and Better Products

Women entrepreneurs often introduce better production methods in terms of processing

2.2.6 Identification of Business Opportunity

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2.2.8 Abolition of Monopoly and Enhancement of Competition

2.2.9 Business Opportunity for Women Suppliers

2.3 Challenging Factors of Women Entrepreneurs

2.3.1 Cultural Norms and Attitudes of Society

The society’s attitude hinders directly or indirectly women entrepreneurial activities in

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2.3.3 Legal Aspects

2.3.4 Socio-Economies and Political Conditions

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

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2.3.6 Changing Preparation

2.4 Empirical literature review

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2.5 conceptual framework of the study

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