BIRHAN COLLEGE

POST GRADUATE PROGRAM

Title: FACTORS AFFECTING SUCCESS OF WOMEN ENTREPRENEURS IN

MICRO AND SMALL ENTERPRISES
(THE CASE OF MEHALMEDA TOWN)

Prepared by: - Asfaw

Adviser Name. Zerihun Girma

ID No. : BCP/ 425/2013

June 19/ 2015 EC

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 Approval sheet
Student’s name: Asfaw Taye

Degree sought: Masters in business Administration

Thesis title: Factors affecting success of women entrepreneurs in Micro and Small Enterprises:
The case of MehalmedaTown

A Thesis Submitted to the School of Graduate Studies of Birhan College in Partial Fulfillment of
the Requirements for the Award of the Degree of Master of Business Administration (MBA)

Approved by Advisor Signature Date

____________________________ __________ ________________

Co-advisor Signature Date

____________________________ __________ ________________

Department head Signature Date

____________________________ __________ ________________

School dean Signature Date

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Associated form pg program Signature Date

____________________________ __________ _______________

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 FACTORS AFFECTING SUCCESS OF WOMEN ENTREPRENEURS IN

MICRO AND SMALL ENTERPRISES

(THE CASE OF MEHALMEDA TOWN)

BY: ASFAW TAYE

BCP /425/13

Advisor. Zerihun Girma (PHD)

A Thesis Submitted to the School of Graduate Studies of Birhan College in Partial Fulfillment of
the Requirements for the Award of the Degree of Master of Business Administration (MBA)

June \ 2015 EC

DEBIRE BIRHAN, ETHIOPIA

ii
 ACKNOWLEDGMENT
This work is the result of a fruitful collaboration of all the people who have kindly contributed
an enormous commitment and enthusiasm in my research. I wish to express my sincere gratitude
to my advisor Zerihun Girma (PHD) for sharing his great knowledge, priceless input and
constant help during my research. His guidance and suggestions have made me reflect upon my
work throughout the entire learning process. I specially want to express thankfulness to all the
respondents from the offices in Mehalmeda town for their great support, time and willingness to
provide essential information that has been crucial for this thesis. Furthermore, I want to thank
Mehalmeda town micro-finance for making themselves available for the interviews and
providing invaluable material for my research. My deepest thanks goes to my friends, shimels
Birhane and Egigu who helped me in writing the whole document besides her moral and
financial support.

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Contents
Approval sheet.............................................................................................................................................i
ACKNOWLEDGMENT...................................................................................................................................iii
List of tables...............................................................................................................................................vii
ABSTRACT...................................................................................................................................................ix
CHAPTER ONE..............................................................................................................................................1
1 . Introduction......................................................................................................................................1
1.1 Background of the study....................................................................................................................1
1.2. Statement of the problem................................................................................................................6
1.3. Objective of the study.......................................................................................................................7
1.3.1. The main objective of the study...................................................................................................7
1.3.2 .The study’s specific objectives are to assess..................................................................................7
1.4. Significance of the study...................................................................................................................7
1.5. Delimitations of the study................................................................................................................7
1.6 limitation of the study.......................................................................................................................8
1.7 The structure of the study.............................................................................................................8
1.8. Definition of terms............................................................................................................................8
Chapter two...............................................................................................................................................10
2. REVIEW OF RELATED LITERATURE.....................................................................................................10
2.1. Overview of entrepreneurship.......................................................................................................10
2.2. Meaning and definitions of entrepreneurship................................................................................11
2.3. The benefits of entrepreneurship...................................................................................................12
2.4 Advantages and disadvantages of entrepreneurship...................................................................13
2.4.1 Advantages...............................................................................................................................13
2.4.2. Disadvantages..........................................................................................................................14
2.5. Women entrepreneurship..............................................................................................................14
2.6 Factors affecting entrepreneurship.................................................................................................15
2.7 Factors affecting success of women entrepreneurs................................................................16
2.8 .Women entrepreneurs in Micro and Small Enterprises in Ethiopia................................................18
2.9 .Women entrepreneurs in MSEs in Amhara Region........................................................................19
CHAPTER THREE........................................................................................................................................20
3. METHODOLOGY.....................................................................................................................................20

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 3.1 Design of the study..........................................................................................................................20
3.2 Population, sample and sampling techniques.................................................................................20
3.3. Data sources, gathering instruments and procedures....................................................................21
3.4 Methods of data analysis...............................................................................................................22
CHAPTER FOUR..........................................................................................................................................23
4. DATA PRESENTATION, ANALYSIS AND DISCUSSION OF RESULTS.....................................................23
4.1. Presentation and analysis...............................................................................................................24
4.1.1. Age of Respondents.................................................................................................................24
4.1. 2 Educational level of respondents...........................................................................................24
4.1.3. Work experiences of respondents...........................................................................................25
4.1.4. Marital status of respondents..................................................................................................25
4.2. Characteristics of women entrepreneurs in MSEs and women owned enterprises.......................26
4.2.1. Family size................................................................................................................................26
4.2.2. Sectors of the respondents......................................................................................................27
4.2.3 Number of employees in the enterprise...................................................................................27
4.2.4 Legal ownership status of the establishment...........................................................................28
4.2.5. Reasons to start own business.................................................................................................29
4.2.6. Who initiated and started the business?...............................................................................29
4 .2.7 .Source of skill for running your enterprise..............................................................................30
4.2.8. The main source of start-up funding........................................................................................31
4.3. Factors affecting success of women entrepreneurs in MSEs.......................................................32
4.3.1 Economic factors......................................................................................................................32
4.3.2. Socio-cultural factors...............................................................................................................34
4.3.3. Legal and administrative factors..............................................................................................35
4.3.4. Comparison of factors that affect women entrepreneur’s success in MSEs............................36
CHAPTER FIVE............................................................................................................................................39
SUMMARY, CONCLUSION ANDRECOMMENDATIONS...............................................................................39
5.1. Summary.........................................................................................................................................39
5.2 Conclusion.......................................................................................................................................41
5.3. Recommendations..........................................................................................................................41
5.3.1. To women entrepreneurs in MSEs:..........................................................................................42
5.3.2. To Micro and Small Entrepreneurs Offices..............................................................................42

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 5.3.3. To Micro finances:...................................................................................................................42
REFERENCES..............................................................................................................................................43
Appendix A................................................................................................................................................45

List of tables
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Table 1 total population in each sector........................................................................................................21
Table 2 Reliability analysis table...............................................................................................................22
Table 3 Age of Responde 24
Table 4 Level of education and training......................................................................................................24
Table 5Work experience of the respondent.................................................................................................25
Table 6 Marital status...................................................................................................................................25
Table 7 Family size.....................................................................................................................................26
Table 8 Sectors of the respondents..............................................................................................................27
Table 9 Number of employees in the enterprise..........................................................................................28
Table 10 Legal ownership status of the establishment................................................................................28
Table 11 Reasons to start own business.....................................................................................................29
Table 12 Who initiated and started the business?.......................................................................................29
Table 13 Source of skill for running your enterprise...............................................................................30
Table 14 who was entrepreneur or owner of some related business activities?.......................................30
Table 15 If yes, what is your family relation with him/her.........................................................................31
Table 16 The main source of start-up funding.............................................................................................31
Table 17 Economic factors.........................................................................................................................32
Table 18 Socio-cultural factors...................................................................................................................34
Table 19 Legal and administrative factors..................................................................................................35
Table 20 Comparison of factors that affect women entrepreneur’s success in MSEs.................................37

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ACRONOMY

BDS. Business development services.

CEFE. Competency based economic through formation of Enterprises.

ECSA. Ethiopia central statics Authorities.

EW EF. Ethiopian women exports forum

GDP. Gross domestic production

GNP. Gross national production

MSE. Micro and small enterprises

NGO. Non-government enterprises

MSE: Micro and Small Enterprises

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 ABSTRACT

Entrepreneurship today is an area that is given due consideration by government in developing

countries like Ethiopia as they are key solution for employment. Women entrepreneurs are also
one of the ways out for employment and contribution to the development of the country even
though it was challenged by different factors. Therefore, this thesis is designed to assess factors
affecting success of women entrepreneurs in MSEs. The characteristics of women entrepreneurs
in MSEs. A sample of 100 was taken for the study using stratified and simple random sampling
from women entrepreneurs engaged in urban agriculture, textile, Trade and industries,
municipality sectors. A questionnaire that include demographic profiles, characteristics of
women entrepreneurs and their enterprises, factors that influence the success of women
entrepreneurs in MSEs was designed in a closed ended and likert scales for answering the basic
questions was used. In addition to questionnaire, interviews were held with top officials of
MSEs, micro finances. Data collected was analyzed using tables, graphs and percentages and
descriptive statistics (mean and standard deviations).The results of the study indicates the
personal characteristics of women entrepreneurs in MSEs and their enterprise affect their success
.It also shows that lack of own premises (land), inadequate access to training, access to
technology and lack of adequate infrastructure were the key economic factors that affect the
success of women entrepreneurs in MSEs. The study also found that better contacts (network)
with outsiders and encounter harassment were the major social factors that affect these
entrepreneurs. Furthermore, the main legal/ administrative factors include access to policy
makers; can borrow money even with out titled assets as collateral, and over all legal and
regulatory environments. Recommendations were forwarded to existing and potential
entrepreneurs, MSEs, Micro finances.

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 CHAPTER ONE

1 . Introduction
1.1 Background of the study

SMES are important to economic growth and significantly essential to general employment
(Harvie and lee 2005; World Bank 2009). In economic and social development, the role of
entrepreneurship and an entrepreneurial culture has often bear under estimated .three successive
governments that were in power since 1960 have failed to improve the plight of women
entrepreneurs in Ethiopia (Ethiopian welfare monitoring unit, 2002 ).

A national survey conducted by the Ethiopian welfare monitoring unit ( 2020 shows that women
entrepreneurs in Ethiopia are not provided with adequate policy related and strategic support
from the national government ,and that the promotion of vibrant MSMES should be one of the
most important priority strategies for community women, addressing object poverty and un
employment in Ethiopia , Nowadays entrepreneurships in increasingly recognized as an
important driver of economic growth productivity , innovations and employment and it is widely
accepted as a key aspect of economic dynamism .

History shows that economic progress has been significantly advanced by pragmatic people who
are entrepreneurial and innovative ,able to exploit opportunists and willing to take risks ( his
rich 2005) SMES in developing economies have a tendency to contribute more to the total
employment at an average of 70% ( harvie and lee,2005),

It was not common to see women owned business world wide especially in developing countries
like Ethiopia. the ideas and practices of women entrepreneurships is a resent phenomena until the
1980s little was known about women entrepreneurships both in practice and research which
made its focus entirely on men scientific discourse about women’s entre premierships and
women owned and run organizations is just the development of 1980s( ICO,2006 ).

Only one-third of the small and medium-sized enterprises (SMEs) in the world are run by
women. Particularly in accessing finance.

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An estimated 70% of women-owned SMEs in the formal sector in emerging markets are
underserved by financial institutions. This amounts to a financing gap of $285 billion.

There are many reasons for this.

Women are less likely to own assets which can serve as collateral and are more likely to be
excluded because of unequal property rights or discriminatory regulations, laws and customs.

Addressing this financing gap and investing in women-owned enterprises is one of the highest-
return opportunities available in emerging markets.

The growth of female-owned enterprises can be a key driver in reducing overall high
unemployment rates since unemployment rates among women are higher and since women are
more likely to hire other women.

Women Entrepreneurs in Ethiopia: Over the past decade, Ethiopia has achieved high economic
growth, averaging 10.7% per year, establishing the country among the fastest growing
economies in Africa and the developing world. However, Ethiopia is falling behind its peers in
the area of credit to the private sector. According to the World Bank’s Enterprise Surveys, access
to finance is perceived as the main business environment constraint by micro (41%), small
(36%), and medium (29%) enterprises in Ethiopia, compared to a Sub-Saharan Africa average of
24%, 20%, and 16% respectively.

At the same time, opportunities for women entrepreneurs in Ethiopia lag far behind those of
men.

In The Economist’s Women’s Economic Opportunity index, Ethiopia occupies the 107th rank
out of 112 countries. Growth-oriented women-owned enterprises don’t have the investment they
need to thrive. Most fall into a “missing middle” trap, in which they are served neither by
commercial banks nor by microfinance institutions. High minimum loan sizes and excessive
collateral requirements restrict women’s access to loans from commercial banks. Microfinance
Institutions (MFIs) primarily cater to micro-firms with group lending schemes that provide very
small loans, and tend to have low outreach to women (30%).

Women’s Entrepreneurship Development Project (WEDP) is a $50 million IDA investment

lending operation designed to address the key constraints for growth-oriented women

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entrepreneurs in Ethiopia. DFATD Canada and UK’s DFID are key development partners
funding part of the project’s activities with an additional $13 million. The project became
effective in October 2012.

Since the project created the first ever women-entrepreneur focused line of credit in Ethiopia in
2013, the demand has been staggering. The WEDP line of credit is disbursing roughly US$2
million in loans to growth-oriented women entrepreneurs every month, far exceeding initial
targets. Several hundred women participate in the project’s cutting-edge entrepreneurship
training program each month, which draws lesson from modern cognitive psychology and equips
participants not only with business skills in the traditional sense, but also with the ability to
‘think like an entrepreneur.’

As of August 2015, the project provided loans to more than 3,000 women entrepreneurs and
entrepreneurship training to 4,500 women. The project has exceeded most of its own forecasted
plans and expectations, and is amongst the highest-disbursing and highest-rated projects in the
region. WEDP’s line of credit involves a market “up-scaling” operation where the Development
Bank of Ethiopia (DBE) acts as a wholesaler and MFIs act as retailers. The project uses an
incentive approach aimed at (i) helping DBE developing a new business line involving
wholesaling of MSE subsidiary loans and provision of related technical support to participating
MFIs; and (ii) helping the MFIs build up a high quality MSE loan portfolio based on credit
techniques that have been developed and validated under successful micro and small loan
programs in other countries, introduced through downscaling or up scaling approaches to
microfinance.

Top Achievements: WEDP is changing the way the microfinance sector caters for micro and
small entrepreneurs and is reaching previously underserved segments of the population. WEDP
disbursed US$22 million in loans to female entrepreneurs in 2014, against a target of US$16
million, with repayment rates (99.6%).

An embedded impact evaluation component is capturing key learning’s and results of the project.

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Some key achievements are as follows:

Reaching the underserved: WEDP is successfully reaching its target segment of under-served
women entrepreneurs, who have the desire and potential to grow their businesses. 76% of WEDP
clients have never taken a loan before.

Unlocking needed capital: One of WEDP’s objectives was to increase loan sizes, since most
Ethiopian women-owned enterprises were stuck in a ‘missing middle’ trap where loans offered
by microfinance were too small to meet their needs. For repeat borrowers, loan sizes have
increased on average by 870%.

Catalyzing growth: According to initial surveys, the average WEDP loan has resulted in an
increase of 24% in annual profits and 17% in net employment for Ethiopian women
entrepreneurs, one year after taking the loan. These female-owned businesses are continuing to
grow, as the impacts of capital investments play out. Repayments of loans stand at 99.6%.

Improving capacity of lenders: Through a dedicated technical assistance component, WEDP is

building the capacity of. The MFI’s improved ability to appraise resulted in their capacity to
reduce the collateral requirements from an average of 200% of the value of the loan to 125%. At
the same time, WEDP microfinance institutions are adopting and diffusing new techniques to
reach and serve women entrepreneurs better. They are developing new loan products and
recognizing new forms of collateral such as vehicles, personal guarantees, and even business
inventory, to secure loans. This is all the more relevant in a country where there is no existing
collateral registry.

Underwriting innovations in the sector: WEDP is introducing innovative credit technologies to

lenders, such as psychometric tests which can predict the ability of a borrower to repay a loan
and reduce the need for collateral. This technology allows entrepreneurs who do not have
collateral to take an interactive test on a tablet computer which predicts their likelihood to repay.
If they score highly, they can borrow without traditional collateral. The test is being piloted
under WEDP and subjected to a rigorous impact evaluation. Other banks are asking for the
technology already, and scaling-up this technology could have a sea-level change on access to
credit in Ethiopia

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“With WEDP, the microfinance institutions’ appetite for risk has increased. Previously, they
provided loans in small amounts of $1000 - $1500. Now, they are making WEDP loans
averaging over $10,000. Plus, they have taken part in a capacity building program, which helped
them assess these larger loans using cash flow analysis and risk mitigation techniques. So the
MFIs are strengthening both in terms of loans disbursed as well as in their knowledge of
lending,” said Beignet Foto, Principal Appraisal Officer, Development Bank of Ethiopia.

Top Challenges

Unlocking the growth potential of Ethiopia’s women entrepreneurs involves addressing a

number of intractable constraints. To date, the project has encountered several important
challenges and leanings:

Lenders need help too. Helping lenders move away from traditional collateral-based lending
and adopt innovative (and likely more effective) forms of appraisal is a powerful way of
expanding access to women entrepreneurs. Improved appraisal can be easier and more profitable
for lenders, but changing the way a bank makes loans takes time, and most lenders are cautious
when reforming these fundamentals. Flexible, responsive, long-term technical assistance to
lenders is critical in bringing about sustainable changes.

Engaging men is critical. When women entrepreneurs grow their businesses, dynamics in the
household and the family can change. Engaging husbands, partners, and male family members to
ensure their buy-in and support is critical. Linking women entrepreneurs with trusted male
mentors and role models in other sectors can help them transition into more profitable
businesses.
“WEDP’s Access to Microfinance component provides excellent experience to show financial
institutions that and that with good cash flow analysis and lending procedures, collateral
requirements can be relaxed.” (Independent Review of WEDP, July 2015).

Training is hard. While most women entrepreneurs say that they want to enhance their skills,
many don’t register for training programs. Women usually cite time constraints or concerns
about quality as the main reasons why they won’t attend entrepreneurship trainings. At the same
time, women who participate in WEDP’s entrepreneurship trainings tend to rate them very
highly and recommend them to others. Entrepreneurship training needs to be of high quality, in

5
accessible locations, and at convenient hours, in order to attract busy women entrepreneurs.
Marketing the benefits of training programs is critical.

1.2. Statement of the problem

SMES in developing countries tend to have low productivity and they are weak in terms of
completions, as the result of using in advanced technology, not maximizing machinery utility
and not improving in technology due to the limitation of findings (OSMEP, 2007).

Gemechis (2007) and ILO (2009) stressed that entrepreneurs are surrounded by a number of
factors. This forces entrepreneurs in MSES not to contribute a lot to the poverty reduction of the
town, region and the country as whole problems of women entrepreneurs in MSES are one of the
reasons why, despite the vast number of women as can be under stood from the introduction
above, the region does not yet exploit them very well to contribute a lot for economic
development.

Prier researches focus on all entrepreneurs regardless of sex and did not see the factors with
respect to the different personal, organizational, economic, and social cultural and legal,
administrative matters similarly, their studies did not address women entreprepreners in MSES.

One of the reasons why ,despite the vast number of women as can be understood from the
introduction above ,the reigntion does not yet exploit them very well to contribute a lot for
economic development prior researches focus on all entrepreneurs regardless of sex and did not
see the factors with respect to the different personal, organizational economic ,social cultural and
legal ,administrative matters similarly ,their studies did not address women entrepreneurs in
MSES .but the study specifically emphasis on factors that influence the success of women
entrepreneurs in MSES of particularly in mehalmeda town .regardless of the large number of
women entrepreneurs in micro and small enterprises in Ethiopia in general and Amhara region
particularly ,there is shortage of studies conducted with a specific objective of analyzing the
problem of enterprises operated by women in terms of a personal and organizational related
factors economic ,social, cultural and legal administrative .therefore these studies was conducted
to fill the gaps by identifying specific factors that are responsible for resiliencies SME Separated
by women entrepreneurs ,and should light on women specific differentiation that affects their
success.

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 1.3. Objective of the study.
1.3.1. The main objective of the study
To assess the factors affecting success of women entrepreneurs in MSEs and the challenges they
face in starting and running their business in Mehalmeda t own.

1.3.2 .The study’s specific objectives are to assess:

1. Characteristics of women entrepreneurs in MSEs and their enterprises.

2. Key factors that affect the success of women entrepreneurs in MSEs.
3. Supports given to women entrepreneurs in MSEs by other institutes in Mehalmeda town. .

1.4. Significance of the study

As stated by Gemechis (2007) opportunities of getting employment in government, non

government or private organization is currently almost declining; so, women should create their
own jobs and become entrepreneurs. For this to be realized it is must for women entrepreneurs‟
problem to be solve. The following points are the general significance of the study.

1. It can help MSEs Offices, and Women entrepreneurs in solving problems that women
entrepreneurs encounter.
2. It indicates the areas where MSEs should support together.
3. It will also be an addition to the existing literature since not much is done in this area.

1.5. Delimitations of the study

There are more than 100 women entrepreneurs found in the town as sources taken from
mehalmeda town. This study is delimited to the key economic, socio-cultural,
legal/administrative factors affecting success of women entrepreneurs in MSEs. In addition, the
study focuses only on assessing the major personal and organizational characteristics of women
entrepreneurs in MSEs to check whether these characteristics affect their success. The study also
addresses the training, machine, financial, raw material, technology and facility supports these
entrepreneurs so as to minimize the problems the women entrepreneurs in MSEs Face.
Moreover, women entrepreneurs in 4 key sectors which are considered as growth corridors now
a-days and only the case of mehalmeda town women entrepreneurs are considered given all other
constraints.

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The study moves to answer the three basic questions raised below

1. The key economic, social, legal and administrative factors that affect the success of
women entrepreneurs in MSEs.
2. The major characteristics of women entrepreneurs in running MSEs in mehalmeda town.
3. The natures of supports given to women entrepreneurs in running MSEs in economic
affirmative action.

1.6 limitation of the study

Since majority of the respondents‟ educational background will be low they show negligence in
filling the questionnaire. Some of them will not give values to the questionnaire and some others
will not return it totally. Besides some were not as such willing to fill the questionnaires. Giving
orientations, distributing questionnaires, following up and collecting it back will be challenging
as respondents will not found near to one another. So, these will be the condition which may
affect the result of the work.

1.7 The structure of the study

This study will be divided into five sections. The first chapter of the study discusses the study's
introduction, statement of the problem and research objectives, purpose of the investigation,
research questions, and limitations. The literature review element of the study is presented in the
second chapter, which includes a theoretical review in the first section, followed by a review of
prior works in the field and empirical reviews. The third chapter outlines the methodology that
utilized by the researcher to collect data and analyze it in order to meet the study's objectives. It
specifies the population as well as the sample size and sampling strategy, research design, data
sources and collection tools, as well as ways for presenting, interpreting, and analyzing results.
Details, findings, and discussion are covered in Chapter 4. The fifth chapter contains a summary
of the findings, conclusions, and recommendations based on the findings made by respondents
and researchers

1.8. Definition of terms

Factors: personal, organizational, economic, socio-cultural, legal/administrative influences that

affect women entrepreneurs overall activities and operations in MSEs.

8
Characteristics: key personal and organizational features of women entrepreneurs in MSEs.

Cooperatives: association of at least 10 individuals who are from the same kebele (mehalmeda
MSEs Office).

Joint ownership: association of two or more individuals who act as a co owner (Hisrich, 2005).

Micro Enterprise means commercial enterprise whose capital is not exceeding birr 20,000 other
than technological and consultancy services (Ethiopia Ministry of Trade and Industry, 2003).

Micro finance: refers to the provision of financial services to low-income clients, including
consumers and the self-employed (Ethiopia Ministry of Trade and Industry, 2003).

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 Chapter two

2. REVIEW OF RELATED LITERATURE

This chapter describes different literatures written in the areas of entrepreneurship, women
entrepreneurs; women entrepreneurs in MSEs; the problems of entrepreneurship, and factors
affecting success of women entrepreneurs in MSEs;

2.1. Overview of entrepreneurship

According to the Ethiopian Central Statistical Authority (2004), almost 50% of all new jobs
created in Ethiopia are attributable to small businesses and enterprises, and roughly 49% of new
businesses that were operational between 1991 and 2003 were owned by women. According to
Aregash (2005), 98% of business firms in Ethiopia are micro and small enterprises, out of which
small enterprises represent 65% of all businesses. More than half of all women entrepreneurs in
Ethiopia often face gender related factors related to establishing new businesses as well as
operating or expanding existing businesses (Amha & Admassie, 2004). Entrepreneurship
objectives and policies nevertheless differ considerably among countries, owing to different
policy needs and diverse perspectives on what is meant by entrepreneurship.

In support of this Schumpeter (2005) stated:

Entrepreneurship has increasingly been narrowed to entrepreneurial activities that lead to some
kind of innovation (e.g., Casson, 2013). The theoretical interest has changed focus from not only
looking at how entrepreneurs emerge, but also how they develop innovations. One discussion is
whether entrepreneurs are driven by an internal force and the will to establish projects or firms,
or whether they are driven by opportunities, for example, in the market.

Another discussion concerns how entrepreneurs act in their attempt to develop and implement
the innovation and, may be, as a consequence, enable their firm (or other organizations) to grow.
They often use social networks, and entrepreneurship is increasingly seen as a social activity
where the entrepreneur has or establishes relations to other people who again have relations to
other people and the entrepreneur thus has access to many people in, often loosely coupled,
networks. The networks are both professional – which can give access to knowledge, capital,
labor force, and so forth – and social. If there are no positive mutual social attitudes, the

10
networks will rarely work professionally either. Theories even state that innovation can happen
in networks where several entrepreneurs collaborate or where one cannot point to any individual
being the entrepreneur more than others.

Entrepreneurship can be collective and several entrepreneurs can collaborate and engage in
group innovation.

2.2. Meaning and definitions of entrepreneurship

The number of different definitions of entrepreneurship in recent academic publications is

enormous. This diversity has not escaped the attention of the academics. Number o f researchers
have attempted to find the reasons behind this multitude of definitions. Some of the definitions
are given below.

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

A look of a few concrete definitions of entrepreneurship from notable scholars of

entrepreneurship will help getting an idea of the extent of the diversity. We will start with
quoting two full definitions.

Entrepreneurship is the process of developing, organizing, and running a new business to

generate profit while taking on financial risk. In a broader sense, entrepreneurship is the process
of transforming the status quo by solving the most pressing problems and pain points in our
society, often by introducing an innovative product or service or creating new markets.

The field of entrepreneurship is defined as the scholarly examination of how, by whom, and with
what effects opportunities to create future goods and services are discovered, evaluated and
exploited. (Shane and Venkataraman 2000, p. 218)

Entrepreneuring is the efforts to bring about new economic, social, institutional, and cultural
environments through the actions of an individual or group of individuals. (Rindova et al. 2009,
p. 477)

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

2.3. The benefits of entrepreneurship

Entrepreneurial activities have been recognized as an important element in organizational and

economic development, success and wealth creation. For economic growth, productivity,
innovation and employment entrepreneurship is important tool and that is why many countries
have made entrepreneurship explicit policy priority. According to World Bank (2007), Fox
(2001) and Hisrich (2005) entrepreneurship has the following benefits.

1. Entrepreneurs are their own bosses, They make the decisions, They choose whom to do
business with and what work they will do, They decide what hours to work, as well as
what to pay and whether to take vacations.

2. . Entrepreneurship offers a greater possibility of achieving significant financial rewards

than working for someone else.

3. It provides the ability to be involved in the total operation of the business, from concept
to design and creation, from sales to business operations and customer response.

4. . It offers the prestige of being the person in charge.

5. It gives an individual the opportunity to build equity, which can be kept, sold, or passed
on to the next generation.

6. Entrepreneurship creates an opportunity for a person to make a contribution. Most new

entrepreneurs help the local economy. A few, through their innovations, contribute to
society as a whole.

7. It is a catalyst for economic change and growth. Entrepreneurship increase per-capita

output and income. By doing so it involves initiating and constituting change in the
structure of business and society. As a result entrepreneurship contribute a lot in
increasing countries output and productivity

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 8. Entrepreneurship encourages innovation and creativity. It develops new products or
service for the market to fulfill human needs. It also stimulates investment interest in the
new ventures being created. Entrepreneurship through its process of innovation creates
new investment of new ventures. More ventures being created, new jobs will be
produced, thus reduce the unemployment rate. That will Creates and promotes wealth
distribution.

From the above points it possible to generalize that entrepreneurship helps the economy by
creating wealth for many individuals seeking business opportunities. Although this is not the
number one reason individuals pursue entrepreneur activities, it plays a major role in ones
country economy. Both a new business and the wealth the owner can obtain will help boost the
economy by providing new products as well as the spending power created for the entrepreneur.
Without entrepreneurs, our economy would not benefit from the boost they give from added
business and ideas.
Entrepreneurs are their own bosses. They can have more control over their working hours and
conditions than they would have if they worked for someone else. If they cannot find a job they
want, they can go into business to create one. For example, they may have a new idea about a
particular product or service. If they believe that others would be interested in it, they can go into
business for themselves. They may make a profit, which is the money left over after paying their
bills, from being creative and doing what they enjoy.

2.4 Advantages and disadvantages of entrepreneurship

Being an entrepreneurship has a numbers of good and bad sides. Marison (2008) described the
advantages and disadvantages of entrepreneurship as indicated below.

2.4.1 Advantages
Competition: Employees feel they can offer their current company’s products or services at a
lesser expense to the public.
Excitement: Due to its high capacity for risk, there is a lot of adventure.
Flexibility: Entrepreneurs can schedule their work hours to spend quality time with family or any
other reason.
Freedom: Entrepreneurs can work whenever, wherever, however they want.
Independence: Some people wish to be their own boss and make all the important decisions
himself/herself.

13
Originality: Some people feel that they can offer a new service/product that no one else has
offered before.
Rational salary: They are not being paid what they are worth and would rather work on their
own and earn the money they should be earning for their efforts.

2.4.2. Disadvantages
Administration: All the decision of the business must be made on your own; there is no one
ranked higher than you in the chain of command in your business.
Benefits: There will undoubtedly be fewer benefits, especially when considering that your
business will be just starting off.
Incompetent staff: Often times, you will find yourself working with an employee who “does not
know the ropes” as well as you do due to lack of experience.
Procedures: Many times during you entrepreneurial life, you will find that many policies do not
make sense, nor will they never make sense..
Salary: Starting your own business means that you must be willing to give up the security of a
regular paycheck.
Work Schedule: The work schedule of an entrepreneur is never predictable; an emergency can
come up in a matter of seconds and late hours will have to be put in

2.5. Women entrepreneurship

A national survey conducted by the Ethiopian Welfare Monitoring Unit (2002) shows that
women entrepreneurs in Ethiopia, despite their enormous contribution to the national economy,
are not provided with adequate policy related and strategic support from the national
government, and that the promotion of vibrant MSEs should be one of the most important
priority strategies for empowering women, addressing abject poverty and unemployment in
Ethiopia.
Much countries economical progress has been achieved in opening doors of education and
health protection for women but political and economic opportunities for female entrepreneurs
have remained limited. Concerted efforts are needed to enable female entrepreneurs to make
better economic choices and to transform their businesses into competitive enterprises,
generating income and employment through improved production (OECD, 1997).

14
 2.6 Factors affecting entrepreneurship

Bolton and John (2008), People asked me how to become an entrepreneur and I cannot tell them,
it is something innate; I could not stop if I wanted to.

Samiti (2006) sated that even though there are different opportunities associated with
entrepreneurship they are not free of factors. Tan (2003) described that factors of entrepreneurs
are classified Social and economical factors broadly.

Entrepreneurship is a human skill, which can be developed. Due

to entrepreneurship development, living standards of society can tend to rise, new opportunities
of employment can be created and rapid economic and industrial developments become possible.
There are a number of factors affecting entrepreneurship or motivating entrepreneurs as follows.

Individual Entrepreneur is an individual having specific knowledge, skills and efficiency. Any
new enterprise is created by an individual or group of individuals. The creativity of an individual
encourages him to establish a new enterprise. Creativity consists of innovation, search and
research. Personality, social conditions, social support, education and training etc. factors lay an
important role for developing such skills and motivate an individual to become an entrepreneur.

Industrial development More suitable the industrial environment in a nation, more rapid
development of entrepreneurship. More favorable industrial environment is one, where
transportation, communication, electricity, lab our, water, raw materials etc are easily available.
Such industrial environment by and large affects entrepreneur development.

Social environment Social system plays a vital role in social environment. As an individual is
born and developed in a family and society, social values, ethical standards, family structure,
caste and religious attitudes of social environment affect entrepreneurship development.

Economic environment: The economy in which enough capital funds are available for
establishing an enterprise and market incentives are also available encourages
entrepreneurship development. Banking, education, industrial policy, economic policy, Exim
policy interest rate etc. Factors of economic environment affect entrepreneurship development.
Thus economic soundness and free economy motivate entrepreneur development.

15
Technological environment Technology is an art of converting the natural resources into goods
and services more beneficial to society. Due to technological development new product, new
production process new raw material, new researches are encouraged for modernization.

Political environment Government also plays an important role in entrepreneurship development.

Due to Globalization, Indian economy has adopted free industrial policy, restrictions on
industries have been minimized and MRTP act has been cancelled, which has motivated many
entrepreneurs to establish and to develop industries in Indian economy.

Incentives are also one of the important factors affecting entrepreneurship. If motivating loans,
policies, organizations are developed, it leads to rapid entrepreneurship development.

Profit making It is the profit that induces the prospective entrepreneurs to get into the business
and start new activities. Profit, therefore, is a factor which induces the entrepreneur to engage
and utilize the.

2.7 Factors affecting success of women entrepreneurs

According to the Ethiopian Economic Association (2004), small businesses and enterprises
operated by women entrepreneurs contribute significantly to the national economy in terms of
job creation and the alleviation of poverty, but are provided with little or no policy related
support from the Ethiopian Ministry of Trade and Industry factors of production and for
development. In many parts of the world Women Entrepreneurs have grown in large number
and increasingly the entrepreneurial potentials of women have changed the rural economies.
Despite the large number of women entrepreneurs the problems associated with them remain
unsolved in different angles of the world. In support of this The Centre for Women’s Business
Research in the United States as sited in UNECE (2004) and Mahbub (2000) identified the
following factors that affect women entrepreneurs.

I. Access to finance

Finance is considered as a key issue to women. Accessing credit, particularly for starting an
enterprise, is one of the major constraints faced by women entrepreneurs. Women often have
fewer opportunities than men to gain access to credit for various reasons, including lack of
collateral, unwillingness to accept household assets as collateral and negative perceptions of
female entrepreneurs by loan officers. Pankhrust (2003), Rahmato (2004), Rahel ( 2004) and

16
Belay (2000) have reported that women do not have adequate access to finance from commercial
banks, and that they rely heavily on indigenous social capital schemes called “iqqub” for raising
finance needed for business ventures. Credit and training had positive impact on women
entrepreneur’s success (Kuzilwa, 2005).

II. Access to markets

UNECE (2004) stated that even though market plays a great role in generation of wealth for
producers women often lack access to training and experience on how to participate in the
market place and are therefore unable to market goods and services strategically. Thus, women
owned SMEs are often unable to take on both the production and marketing of their goods. In
addition, they have often not been exposed to the international market, and therefore lack
knowledge about what is internationally acceptable. The high cost of developing new business
contacts and relationships in a new country or market is a big deterrent and obstacle for many
SMEs, in particular women-owned businesses.

III. Access to training

Training had positive impact on women entrepreneurship success in Nigeria, Ghana, USA,
Tanzania and Canada respectively (Ibru, 2009; Cheston & Kuhn, 2002; Jill et al., 2007; Kuzilwa,
2005; Reavley & Lituchy, 2008). Women entrepreneurs, especially in developing countries,
lacked social connections that are a source of credit and market information (Olomola, 2002),
whereas social capital has been found to have positive impact on the success of women
entrepreneurs (Brata, 2004; Lawal et al., 2009; Mkpado & Arene, 2007; Olomola, 2002). Like
finance and market women also have limited access to vocational and technical training. In fact,
women on average have less access to education than men, and technical and vocational skills
can only be developed on a strong foundation of basic primary and secondary education. South
Asia is characterized by low enrolment among women in education, high dropout rates and poor
quality of education. The table below shows female literacy levels as a percentage of male
literacy as well as average years of schooling of women and men, respectively. The figures are
testifying to the existence of gender discrimination in building capacity of women and providing
them with equal opportunities (UNECE, 2004).

IV. Access to networks

17
Concerning network women entrepreneurs face once again the same problems. Supporting this
Mahbub (2000) noted that women have fewer business contacts, less knowledge of how to deal
with the governmental bureaucracy and less bargaining power, all of which further limit their
growth. Since most women entrepreneurs operate on a small scale, and are generally not
members of professional organizations or part of other networks, they often find it difficult to
access information. Most existing networks are male dominated and sometimes not particularly
welcoming to women but prefer to be exclusive. Even when a woman does venture into these
networks, her task is often difficult because most network activities take place after regular
working hours. There are hardly any women-only or women-majority networks where a woman
could enter, gain confidence and move further. Lack of networks also deprives women of
awareness and exposure to good role models. Few women are invited to join trade missions or
delegations, due to the combined invisibility of women-dominated sectors or sub sectors and of
women as individuals within any given sect

2.8 .Women entrepreneurs in Micro and Small Enterprises in Ethiopia

In Ethiopia the idea of Micro & Small Enterprises (MSEs) development emerged as a promising
agenda in the 1980s (Schorling 2006), (ILO (2006). A variety of reasons have been cited for the
surge of interest in MSEs development and the first one is that MSEs are a better way for poverty
reduction. MSEs are can also be used as policy for sustainable development and productivity and
are an important actors in the trade sector for economic development of countries.

The MSE sector plays an important role in providing people with livelihood and income
generating opportunities, providing income and services to people who cannot get employment
in the formal sector.

ILO, (2003) specific support programs also include measures related to facilitating access to
finance, provision of incentives, promotion of partnerships, training, access to appropriate
technology, access to market, access to information and advice, infrastructure and institutional
strengthening of the private sector associations and chamber of commerce

In November 1997 the Ethiopian Ministry of Trade and Industry has published the "Micro and
Small Enterprises Development Strategy", which enlightens a systematic approach to alleviate
the problems and promote the growth of MSEs. Elements of the program include measures with

18
regard to creating an enabling legal framework and streamlining regulatory conditions that
hinder the coming up of new and expansion of existing MSEs.

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

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

Women entrepreneurs development in MSEs: difficulties and problems Schorling (2006) study
shows that in Ethiopia's situation MSEs are confronted by various problems, which are of
structural, institutional and economic in nature. Lack of Capital, market and working premises,
marketing problems, shortage of supply of raw materials and lack of qualified Human resources
are the most pressing problems facing MSEs.

Although the economic policy of Ethiopia paid due emphasis for entrepreneurship values and
appreciation of the sector's contribution to the economy, there are still constraints related to
infrastructure, credit, working premises, extension service, consultancy, information provision,
prototype development, imbalance preferential treatment and many others, which therefore need
proper attention and improvement.

2.9 .Women entrepreneurs in MSEs in Amhara Region

Women entrepreneurs in MSEs in AMSS play a crucial role in the economic improvement,
because they utilize relatively less capital, it’s a home of entrepreneurship, can create substantial
job opportunity, utilize cheap and local raw materials, and produce goods and services. Which
save hard currency for the country in general and for our region in particular and the very
important point is that it is creating opportunities for the population to earn (generate) income,
which by itself create the way to reduce the poverty (Gemechis 2009).

19
 CHAPTER THREE

3. METHODOLOGY

The research design used, the data gathering methods and tools, sample and sampling procedures
and the methods of data analysis are discussed in this chapter.

3.1 Design of the study

In order to assess the key factors that affect the success of women entrepreneurs in MSEs in
Mehalmeda town, a descriptive survey research design will employ in the study. This design is
used because of the reason that it enables to describe the different factors that affect the success
of women entrepreneurs in MSEs as they exist.

3.2 Population, sample and sampling techniques

The population of the study, as data taken from Mehalmeda MSE office shows, consisted of 100
women entrepreneurs who work in 4 sectors of MSEs. So as to get a reasonable sample size, a
97% level of confidence and a3 % confidence interval was used to select a sample of 200
Women entrepreneurs in these MSEs. For selecting these samples of entrepreneurs, stratified
sampling was used in which the 4 key sectors that woman entrepreneurs are engaged was taken
as strata so as to give equal chance to each of the sectors. From each sector, women
entrepreneurs in MSEs were selected based on Morgan table randomly using lottery method by
taking list of respondents from the MSE‟s office.
The following table summarizes the total population in each sector and the corresponding sample
was taking from each sector.

Table 1 total population in each sector

No Key sector population sample

20
1 Textile 50 25
2 Urban agriculture 100 45
3 Trade and industries 25 15
4 municipality 25 15
Total 200 100

3.3. Data sources, gathering instruments and procedures

For the study, both primary and secondary sources of data was used. The secondary data include
information that are obtained mainly from different reports, bulletins, websites and literatures,
which are relevant to the theme of the study, was gathered from various sources to complement
the survey-based analysis. The primary sources of data will be questionnaires distributed to
women entrepreneurs and interviews conduct with MSEs and Micro finance leaders.
To answer the basic questions raised, a 50 item questionnaire that has 3 parts was prepared. The
first part consists of demographic profile of the respondents which is designed in a close ended
format. The second part covers the characteristics of women entrepreneurs in MSEs and their
enterprises which is also prepared in a close ended format. The third and the fourth parts both
designed using Likert scale, address issues of key factors that affect women entrepreneur’s
success in MSEs. The Likert scale ranges from „strongly agree‟ to „strongly disagree‟
(5=strongly agree 4=agree 3=undecided 2=disagree 1=strongly disagree, see appendix A) so as
to not limit the response of respondents to some limited ranges. First the questionnaire will
prepare in English language based on the literature review and some adaptations from prior
researches. (randomly 3 respondents from each sector using lottery methods ) to cheek whether
what is expected to acquires achieved or not as a present For reliability and validity tests, the
pretest result under taken shows a Cranach alpha value of 71.69. According to Yalew (2009),
taking the number of items in the questionnaire and the characteristics of respondents, the value
can verify the reliability of the testes. In addition, it will be check for grammar and other spelling
errors using language and measurement professionals. Based on the findings of the pretest and
comments of language and measurement experts, certain amendments were made on the
questionnaire and lastly by giving the necessary orientations to respondents, the questionnaire
was distributed to the whole sample women entrepreneur respondents. Moreover, in order to get

21
detail information from limited number of respondents, the researcher conducted structured
interviews with top officials. Hence, a predesigned 3 major questions and 3 Sub-questions were
conducted with MSEs Work process owner for an hour.

3.4 Methods of data analysis

Data collected will code and fed to excel sheet so as to simplify further tasks. The respondents’
scores will summarize from the sheet and made ready for analysis. After that, it will be analyze
using both descriptive statistical techniques and descriptive narrations. The profiles and items
related to characteristics of women entrepreneurs was analyze using simple statistical tools such
as tables and percentages. Descriptive statistics (mean and standard deviations) of the respondent
scores were computed for the Likert statements and analyze by comparing these mean scores and
deviations among respondents. The reason for using descriptive statistics is to compare the
different factors that affect the success of women entrepreneurs in MSEs by the means and
standard deviations of scores. The interview questions were analyzed using descriptive
narrations.
Finally, all these were followed by the necessary interpretations and discussions so as to achieve
the desired goals. In interpreting the results for the likert questions, , the mean scores less than 3
implies respondents do not agree; scores 3.00-3.45 shows undecided and greater than 3.45,
results rounded to the nearest two decimal places, indicates agreement among respondents on the
issues raised and I use SPSS methods.
Table 2 Reliability analysis table

no Crompache alpha no
1 Economical factor 94.5 10
2 Social factor 84.3 10
3 Legal factor 95.1 10
4 Success of women entrepreneur 95.4 3
all 91.5 33

According to the researcher point of view each factor of the research or study independent and
dependent variable reliability should be above 70% or 0.7 do the above table shows the result do
to the case of the researcher independent and dependent variables in Crompache alpha shows
successes.

22
 CHAPTER FOUR

4. DATA PRESENTATION, ANALYSIS AND DISCUSSION OF RESULTS

This chapter describes the analysis of data collected and their discussions under each point. It
starts with the analysis of of respondents and the follows the characteristics of women
entrepreneurs in MESs. Both are analyzed using frequency tables and percentages. After that the
data related to the factors that affect the success of women entrepreneurs and the areas of support
MSEs are presented and analyzed. Mean and standard deviations are used for the presentation

23
and analysis of these parts. Lastly discussions are made based on the data presented and
analyzed. From the total of 100 questionnaires distributed, 97 were properly filled and collected.
This amounts 97% of the total questionnaires distributed. The number of questionnaires returned
indicates that it is possible to continue and all the discussions below are made on these groups of
respondents.
4.1. Presentation and analysis.
This section summarizes general information about age, educational level, work experience and
marital status of respondents one by one.

4.1.1. Age of Respondents

Women entrepreneurs in MSEs are categorized under different age category and this is depicted
by the figure below.
Table 3 Age of Respondents

age of the respondent

Frequency Percent Valid Percent Cumulative Percent
Valid 21-30 years 20 20.6 20.6 20.6
31-40 years 77 79.4 79.4 100.0
Total 97 100.0 100.0

Source: Primary data

Majority of the respondents, 79.4 %, are under the age category of above31-40 year’s %, under
the age of 21—30 years 20.6

4.1. 2 Educational level of respondents

A Government survey of Ethiopian women entrepreneurs in the informal sector elementary
education (CSA, 1997). Respondents (women entrepreneurs in MSEs) have achieved different
educational level and this is shortly presented in the figure two below

Table 4 Level of education and training

Level of education and training

Frequency Percent Valid Percent Cumulative Percent
Valid . Grade 5-8 49 50.5 50.5 50.5

24
 Grade 10 48 49.5 49.5 100.0
complete
Total 97 100.0 100.0

4.1.3. Work experiences of respondents

Women entrepreneurs in MSEs have no equal duration of time in the work. Their different work
experiences are explicitly described in the table below

Table 5Work experience of the respondent

Work experience of the respondent

Frequency Percent Valid Percent Cumulative Percent
Valid 1-5 year’s 29 29.9 29.9 29.9
6-10 year’s 49 50.5 50.5 80.4
Greater than 10 19 19.6 19.6 100.0
years
Total 97 100.0 100.0
Source: Primary data
The table shows the work experience of the respondents, and as it clearly indicates majority of
the respondents (50.5%) have 6-10 yeas of experience. Next 29.9 % of the respondents have an
experience of 1-5 years. The remaining 19.6 % of the respondents have greater than 10 years of
service in their enterprise

4.1.4. Marital status of respondents

Zewde & Associates (2002) stated that previous studies in Ethiopia have shown that the
majority of women business owners are or have been married and this was also the case for this
study, with nearly 45 per cent of the women interviewed falling into this.
Table 6 Marital status

Marital status
Frequency Percent Valid Percent Cumulative Percent
Valid Single 19 19.6 19.6 19.6

Married 19 19.6 19.6 39.2

Divorced 59 60.8 60.8 100.0

25
 Total 97 100.0 100.0

Source: Primary data

The figure shows that majority of the respondents 60.8% are divorced followed by singles and
married 19.6 %. Respectively

4.2. Characteristics of women entrepreneurs in MSEs and women owned enterprises

Women entrepreneurs have a number of distinct criteria that makes them different from men and
their enterprises different from that of men entrepreneurs even though there are common
elements. Based on this, the following table shows the characteristics of respondents; family size,
sector they are working in, the number of employees working in the enterprise, legal ownership
status of the business, reasons to start own business, who initiates the business idea, source of
skill for starting the enterprise and source of starting fund.

4.2.1. Family size

The average national household size in Ethiopia according to the most recent Government
surveys is 4.8 persons (CSA, 1995). But respondent women entrepreneurs have different family
size as stated in the figure below.

Table 7 Family size

Family size
Frequency Percent Valid Percent Cumulative Percent
Valid Less than 3 67 69.1 69.1 69.1
. 4-5 10 10.3 10.3 79.4
. More than 20 20.6 20.6 100.0
5
Total 97 100.0 100.0

Source: Primary data

26
From the figure, majority of the respondents (69.1%) have a family size of less than 3. The graph
also shows that 10.3% of the respondents have a house hold size of 4-5yearse.It is only the
remaining 20.6 % respondents that their family size is greater than 5 years.

4.2.2. Sectors of the respondents

The sectors in which women entrepreneurs are working in is depicted in the following figure A
number of employment opportunities are opened to workforces by women entrepreneurs in
MSEs. The following figure clearly shows the number of employees those women entrepreneurs
in MSEs Employ
Table 8 Sectors of the respondents

What sector is your business in

Frequency Percent Valid Percent Cumulative Percent
Valid . Trade 10 10.3 10.3 10.3
Production 19 19.6 19.6 29.9
Services 38 39.2 39.2 69.1
Hand-craft 10 10.3 10.3 79.4
Other 20 20.6 20.6 100.0
(specify)
Total 97 100.0 100.0

Source: Primary data

As it can be seen from figure above that majority of the respondents (39.2 %) are engaged in the
service sector. The production sector accounts 19.6% of the respondents. The trade takes the
10.3%. Hand craft and other 10.3 % and 20.6% respectively.

4.2.3 Number of employees in the enterprise

A number of employments are opportunities are opened to workforces by women entrepreneurs
in MSEs. The following figure clearly shows the number of employees those women
entrepreneurs in MSEs Employ.

Table 9 Number of employees in the enterprise

Number of employees in the enterprise

Frequency Percent Valid Percent Cumulative Percent

27
Valid 6-10 48 49.5 49.5 49.5
11-15 39 40.2 40.2 89.7
More than 10 10.3 10.3 100.0
15
Total 97 100.0 100.0

Source: Primary data

From the figure above, majority of the respondents (49.5% hire 6-10 employees in their
enterprise. But 10.3% responded that they employ more than 5 workers in their enterprise. The
figure also shows that 40.2 % the respondents hire from 11-15 employees.

4.2.4 Legal ownership status of the establishment

Hisrich, (2005) Enterprises are created having different legal ownership statuses such as Sole
ownership, Joint ownership, Family business, Cooperative and others.
Table 10 Legal ownership status of the establishment

what is the legal ownership status of the establishment

Valid
Frequency Percent Percent Cumulative Percent
Valid . Sole 18 18.6 18.6 18.6
ownership
Joint ownership 39 40.2 40.2 58.8
Family business 20 20.6 20.6 79.4
Cooperative 20 20.6 20.6 100.0
Total 97 100.0 100.0

Source: Primary data

From the table above, majority of the respondents (40.2 %) establish their enterprise in the form
of joint venture followed by family and cooperative (20.6 %). Only (18.6%) of the respondents
has a legal ownership of sole proprietorship business.

4.2.5. Reasons to start own business

Entrepreneurs are provoked by different motivators to start their own business. The following
figure shows the reasons that women entrepreneurs in MSEs are motivated to start their own
enterprises.

28
 Table 11 Reasons to start own business

Frequency Percent Valid Percent Cumulative Percent

Valid Family tradition 20 20.6 20.6 20.6
To be self-employed 47 48.5 48.5 69.1
Brings high income 10 10.3 10.3 79.4
Small investment is 20 20.6 20.6 100.0
required
Total 97 100.0 100.0

Source: Primary data

As can be observed from the above figure most of the respondent entrepreneurs (48.5%)
establish their own business for the reason that they want to be self employed .20.6% of the
respondents start their own business because they believe that it requires a small investment. And
the remaining 10.3 % belive that they bring high income.

4.2.6. Who initiated and started the business?

Entrepreneurs start their business by a number of motivators. When some start by their own,
others are motivated by family members, friends and others. The table below shows the initiators
of women entrepreneurs to start own business.

Table 12 Who initiated and started the business?

Who initialed and started the business?

Cumulative
Frequency Percent Valid Percent Percent
Valid Myself alone 10 10.3 10.3 10.3
With a 37 38.1 38.1 48.5
friend/partner
With the family 20 20.6 20.6 69.1
Other (specify) 10 10.3 10.3 79.4
20 20.6 20.6 100.0
Total 97 100.0 100.0

29
 Source: Primary data
The table shows that majority 38.1%) of the respondents start enterprises with imitated with their
friends. Second, 20.6 % of the respondents are initiated by their family. When (10.3 %) are
encouraged by others and myself alone.

4 .2.7 .Source of skill for running your enterprise

Having a knowhow what to do is important before just starting an activity and the same is true
for running a business. The following table shows the respondents source of skills to run their
enterprises.

Table 13 Source of skill for running your enterprise

B How did you acquire the skill for running your enterprise
Frequency Percent Valid Percent Cumulative Percent
Valid Through formal 10 10.3 10.3 10.3
training
From past experience 29 29.9 29.9 40.2
From family 48 49.5 49.5 89.7
Other (specify 10 10.3 10.3 100.0
Total 97 100.0 100.0

Table 14 who was entrepreneur or owner of some related business activities?

Is there anyone in the family who was entrepreneur or owner of some related business
activities?
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 10 10.3 10.3 10.3
No 87 89.7 89.7 100.0
Total 97 100.0 100.0

30
Table 15 If yes, what is your family relation with him/her

If yes, what is your family relation with him/her?

Frequency Percent Valid Percent Cumulative Percent
Valid . Father 20 20.6 20.6 20.6
mother 28 28.9 28.9 49.5
sister 19 19.6 19.6 69.1
brother 10 10.3 10.3 79.4
Grandfathe 20 20.6 20.6 100.0
r
Total 97 100.0 100.0

Source: Primary data

Majority89. 7 %, of the entrepreneurs replied none of their family is an entrepreneur but only
10.3% who have an entrepreneur in their family. Among those who have an entrepreneur family,
20.6% responded that their fathers are entrepreneurs, 10.3 % respond that their brother is an
entrepreneur. Only 20.6% who have an entrepreneur grandfather. The table also shows that
10.3% of the respondents acquire the necessary skill for their business from formal trainings.
Entrepreneurs, 49.5 %, acquire their skills from their family. Only 10.3% of the respondent
entrepreneurs acquire the skill from sources other than those stated the rest.

4.2.8. The main source of start-up funding

Capital is required to start a business in addition to creative idea of an entrepreneur. The
following table shows the main sources of start-up fund.

Table 16 The main source of start-up funding

Frequency Percent Valid Percent Cumulative Percent

Valid Personal saving 19 19.6 19.6 19.6
Borrowed from 10 10.3 10.3 29.9
relatives or friends
Micro-finance 68 70.1 70.1 100.0
institutions

31
 Total 97 100.0 100.0

Source: Primary data

From the table above majority of the respondents, (70.1%), use micro finances as main source of
start-up funding in financing their enterprises. But 19.6 % of the entrepreneurs use personal
saving as their main source of start-up funding. When 10.3 % get assistance from friends /
relatives and from inheritance.

4.3. Factors affecting success of women entrepreneurs in MSEs

Women entrepreneurs in MSEs have number of factors that affect them and these factors are
associated with different factors.

4.3.1 Economic factors

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

Table 17 Economic factors

Descriptive Statistics
N Mean Std. Deviation
I am satisfied with the financial access 97 3.89 .945
given by micro finances and other
lending institutions.
I have access to market for my products 97 3.24 .977
A have access to different business 97 2.44 1.361
trainings
I have my own premises (land) to run my 97 2.82 1.267
business
I have an access to information to exploit 97 3.43 1.020
business
I have managerial skills 97 3.59 .813
I have access to necessary technologies 97 2.82 1.090

32
There is no stiff competitions in the 97 3.79 .763
market place that I am engaged in.
Adequate infrastructures are available 97 2.82 1.090
I have access to necessary inputs(raw 97 3.13 .942
materials)
Valid N (listwise) 97

Source: Primary data

The table shows that micro finances are the main suppliers of finance for women entrepreneurs
in MSEs. In this, table 17 shows that women entrepreneurs in MSEs are satisfied with the
financial access given by micro finances and other lending institutions. It shows a mean score of
3.89 with a standard deviation of 0.945. The average score of the respondents concerning
satisfactory financial access is,, agree‟ with little deviations among them. Concerning market
access the mean score 3.24) and standard deviation (0.9) in the table above show, the
respondents entrepreneurs are almost undecided. This resembles that the respondents are neither
agree nor disagree with the idea raised. As described in table 17 most women entrepreneurs in
MSEs acquire their skills for establishing their own business from formal trainings. But as the
table above shows, the access for different business trainings for the women respondents is low
with a mean of 2.44 and standard deviation of 1.36. According to Hisrich (2005) having premises
like land is considered as one success factor. As it is clearly indicated in the table above
respondent women entrepreneurs in MSEs does not have their own land to run their businesses
and this is reflected by a mean of 2.82 with a standard deviation of 1.267. On the other hand,
women entrepreneurs respond that, as a mean score (3.43) and standard (1.1.02.) clearly depicts,
the respondents do not divided. Managerial skills is the point on which respondents decided in
running their business, This is justified by the mean score (2.82) and the standard deviation
(1.09) Concerning access to technological, as the mean scores (2.82) and the standard deviations
(1.09) indicates, respondents do not agree with its access. But for market competition, mean
(3.79) and standard deviation of (0.76) shows that there is competition for their products.
Infrastructure, as shown in the table with a mean score (2.82) and standard deviations (1.09)
indicates the respondent women entrepreneurs in MSEs do not agree on the availability of the
necessary infrastructures in the area of their business. At the end, scores of mean of 3.13 and

33
standard deviation of 0.94 for the availability of necessary raw material/inputs in the table above
shows that the respondent entrepreneurs agree with accessibility of raw materials.

4.3.2. Socio-cultural factors

Some unnecessary names were common to hear such as “buda”,”shemane,”ketkach” and others
are given to different entrepreneurs in Ethiopia (Hadiya, 1998). For socio-cultural influences ~
48 ~ those names given for them are good indicators for an individual’s running their own
business. The following table shows the impact of socio-cultural factors on women entrepreneurs
in MSEs

Table 18 Socio-cultural factors

Descriptive Statistics
N Mean Std. Deviation
I have a better of social acceptability 97 4.08 .534
I have a better contacts(networks) with outsiders 97 2.87 1.017
I have no prejudice or class biases 97 3.59 .495
The societies attitude towards my 97 3.79 .611
products/services is positive
The attitude of other employees towards my 97 3.90 .549
business is positive
I have a positive relationship with the workforce 97 4.01 .637
I have no conflicting gender roles 97 3.90 .549
I am not affected by gender inequalities 97 3.18 1.155
I have no cultural influences 97 3.19 1.228

I never encounter harassments in registering 97 2.98 1.399

Valid N (listwise) 97

Source: Primary data

Women entrepreneurs in MSEs, as indicated by a mean score of (4.08) and standard deviations
(0.534) shows which shows that they strong agree, responded that they have a better of social
acceptability. As opposed to business assistance and support, women entrepreneurs disagree with
the ideas of having network with administrative bodies and, encounter harassments in registering
with a mean and standard deviations of 2.87 and 1.017 and standard deviations of 2.98 and 1.399

34
respectively. In case of prejudice or class biases they are agreeing with the idea that they have no
problem as, a mean of (3.56) and standard deviation of (0.495) indicates. The respondent women
entrepreneurs in MSEs cannot decide on idea that the attitude of the society towards them is
positive.

The table above shows that the attitude of other employees towards their business and the
relationship that these women entrepreneurs have with their employees have a positive
relationship with their employee and the attitude of the employees towards the business is not
either. The mean scores 3.90 and 4.01 and standard deviations 0.59 and 0.67 for attitude of
employees and relationship with employees respectively clearly strengthens this idea.

In contrary to the above agreement, as a mean scores (3.90) and standard deviations (0.59) in the
table above shows, women entrepreneurs do agree with the idea of having conflicting gender.

As it is clearly indicated the table above, issues gender inequality, cultural influences and
harassments are not this much problems of women entrepreneurs. The respondent’s do not
decide with a mean of 3.18 and standard deviation of 1.55 that there are no problems of gender
inequalities.

4.3.3. Legal and administrative factors

In addition to economic and socio-cultural factors, legal and administrative factors are also what
women entrepreneurs face in MSEs. The table below shows Legal and administrative factors that
influence women entrepreneurs working in micro and small enterprises.
Table 19 Legal and administrative factors

Descriptive Statistics
N Mean Std. Deviation
I have business assistants and supporters 97 3.13 1.047
from government bodies
I have a network with different 97 3.05 1.334
administrative bodies
I have access to policy makers 97 2.94 1.223
I have no legal, institutional and policy 97 3.04 1.089
constraints
can borrow money even without titled assets 97 2.74 1.184
as a collateral
Interest rate charged by micro finances and 97 3.70 .648
other

35
I have never encountered bureaucracies and 97 3.52 .679
red tapes
I am beneficiary of government incentives 97 3.40 1.133
I have never faced unfavorable legal and 97 2.73 1.279
regulatory environments
The tax levied on my business is reasonable 97 3.41 .813
Valid N (listwise) 97
Source: Primary data

Women entrepreneurs in MSEs, as indicated by a mean score of (3.13) and standard deviations
(1.043) shows which shows that they do not decided, responded that they have business assistant
and supports from government bodies.

Women entrepreneurs do not decided with the ideas of having network with administrative
bodies this is shown by a mean score and standard deviations of 1.83 and 1.92 and access to
policy makers disagree standard deviations of 2.94 and 1.223 respectively.

Source: Table 17, 18 and 19

From the table above grand mean (2.82) and grand standard deviation (1.267) shows that the
economic factors are more Sevier and legal and administrative factors and socio cultural factors
with the grand mean and grand standard deviation of (2.98) , 1.399) and (2.94) and 1.223 )
respectively

4.3.4. Comparison of factors that affect women entrepreneur’s success in MSEs

All factors are not equal in affecting women entrepreneurs and should be given a rank based on
their grand mean. Therefore, the following table shows the rank of the three factors.
The following table clearly compares the overall impact of all the key factors discussed in detail
above
Table 20 Comparison of factors that affect women entrepreneur’s success in MSEs

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation

36
The key economic, social, 97 4 5 4.39 .491
legal and administrative
factors that affect the
success of women
entrepreneurs in MSEs.
The major characteristics of 97 4 5 4.39 .491
women entrepreneurs in
running MSEs in mehalmeda
town.
The natures of supports 97 4 5 4.49 .503
given to women
entrepreneurs in running
MSEs in economic
affirmative action
Valid N (list wise) 97

Discussion
According to Barley’s (1987) findings, women entrepreneurs in MSEs are daughters of self
employed father and are married. The fact that these entrepreneurs are daughter of self employed
father shows that women entrepreneurs in MSEs are not significant in number in the business
world. This is because the number of respondents having a self employed mother or sister is
insignificant. It is also possible to imagine from the fact that women entrepreneurs are divorced
that they may have conflicting gender roles such as keeping kids since in our country context
most of these responsibilities are left to women. It is also possible to conclude that women
entrepreneurs in Mehalmeda are not from a middle or upper class. If these entrepreneurs be from
such a family, they would not see starting own business as a last alternative. From the respondent
women entrepreneurs the maximum educational level that they reach is 8th grades. From this it is
possible to estimate that women entrepreneurs are not using modern science to run their
business. It is also possible to conclude that women entrepreneurs in Mehalmeda have no
sufficient experience in running their business and they are found in the age category of 31-40.
This age category shows that women entrepreneurs are in a productive age and are expected to
contribute a lot to the growth and development of the area. But being inexperienced my
challenge their success. In contrary to Shane (1997) and ILO (2003) conclusion that women
entrepreneurs have an average larger family size, women entrepreneurs in Mehalmeda town have
a family size of less than three. The fact that women entrepreneurs are married, have no self
employed mother or sister, have low educational background and are not experienced in business
37
can lead to the conclusion that, the personal characteristics of these entrepreneurs can contribute
to their low success in addition to the economic, social, and legal/administrative factors. As this
study shows, most women entrepreneurs in MSEs in mehalmeda are engaged in the service
sector and employ 6-10 within them. So, the finding matches with the report. Similarly, the
entrepreneurs are organized and use micro finances as main sources of funding. This shows that
the production sector do not opens an opportunity of employment for a large number of
individuals. The openings of Micro finances allow women to be organized under cooperatives,
because the get finance only if they are organize by micro, for the purpose of acquiring finance
even without collaterals. Hisrich (2005) cooperatives give these entrepreneurs an opportunity of
sharing skills, knowledge and experiences for one common goal which is organizational success.
Women entrepreneurs in MSEs are affected by a number of economic, social/cultures and
legal/administrative factors (World Bank, 2005), (ILO, 2003), (Samiti, 2006), (Tan, 2000) and
(SMIDEC, 2004). Some of the findings of this study go in line with these and some others go
against. The success of women entrepreneurs in MSEs in Mehalmeda town are highly affected
by economic factors such as lack of own premises (land), financial problems, inadequate access
to trainings, and lack of technology, adequate infrastructure. As opposed to World Bank, ILO
Samiti, Tan and SMIDEC, this study found that infrastructures and access to information are not
problems of women entrepreneurs in MSEs in the town. The result may because of place and
time. Since this study is concerned on the town the problem of infrastructure. Time can also be
the other reason for contradicting because those studies were conducted some years ago.
Socio-cultural conditions like encounter harassment, and network with outsiders, are the sever
factors that affect women entrepreneurs in mehalmeda. In the researcher’s findings, gender
inequalities, attitude of employees towards the business are not problems of entrepreneurs in the
town. The reasons for such a variation may due to better access to media and other facilities that
may change the society’s attitude as this study focused only on the town. Factors like borrowing
money even with out titled assets as a collateral , network with administrative bodies, access to
policy makers, encounter harassment, and administrative environmental are the serious problems
of women entrepreneurs in MSEs in the town. In contrary, issues related to government
incentives, legal, instructional and policy constraints, assistance and support from government
bodies are not found to be problems of women entrepreneurs in MSEs in Mehalmeda town.
Among the major factors that affect the success of women entrepreneurs in MSEs, the impacts of

38
the economic factors are significant even though the influence of social factors is kept to least
amount.

CHAPTER FIVE

SUMMARY, CONCLUSION ANDRECOMMENDATIONS

This unit is the section that contains summary of findings, conclusions based on findings and
recommendations.

5.1. Summary

The aim of this study was to assess factors that affect the success of women entrepreneurs in
MSEs. The supports women entrepreneurs get these entrepreneurs characteristics are also tried to
be addressed. For this purpose, a sample of 100 women entrepreneur engaged in 4 sectors textile,
urban agriculture, Trade and industries and municipality was taken for the study using stratified
and simple random sampling. In the process of answering the basic questions, a questionnaire

39
that include table lists, characteristics of women entrepreneurs and their enterprises, factors that
affect the success of women entrepreneurs in MSEs . Additionally, structured interviews were
held with top officials of MSEs, micro finances. Using these tools data was gathered and
analyzed using simple statistical techniques (tables, and percentages) and descriptive statistics
(mean and standard deviations). Based on the result of questionnaire from women entrepreneurs
and interview results acquired from the concerned officials, the major findings of this study are
presented below.
Accordingly, most of the respondent women entrepreneurs are under the age category of 31- 40
with educational level of 5th -8th grades having a working experience of 1-5 years and are
divorced.
Large numbers respondents have a family size of less than 3 of which majority are engaged in
the service sector; hiring more than 39.2% employees within their organization. The legal
ownership establishment of their enterprises is in the form of joint venture of which majority
start their own business for the reason that they have to be self employed. Similarly, most of
these respondents acquire the necessary skills from their families to start their own business by
their own initiation. Additionally, the largest part of women entrepreneurs has no entrepreneurial
family. Among entrepreneurs who have an entrepreneurial family, most of them have a self
employed mother and majority of the respondents use micro finances as the main source of
startup fund. Economic factors that affect women entrepreneurs in MSEs according to their rank
of severity are: lack of financial access, lack of own premises or land, existence of stiff
competition in the market, inadequate access to training, lack of access to technology, and raw
materials. But infrastructure problems and access to information are not serious economic
problems for these entrepreneurs. According to their severity order, socio-cultural factors that
affect the respondent women entrepreneurs in MSEs in Mehalmeda town are: conflicting gender
roles, contact (network) with outsiders and social acceptability. On the other hand, prejudices or
class biases, gender inequality, attitude of employees to the business, harassments and
relationship with the workforce are those which are significant problems that affect the success
of women entrepreneurs.
Once more, based on order of severity, the respondent women entrepreneurs in MSEs are:
encounter harassment, lake of access to policy makers, lack of network with administrative
bodies, access to policy makers, a better contacts (net works with outsiders), premises( lands ) to

40
run Nevertheless, government incentives, legal, institutional and policy constraints, assistant and
support from government bodies and request of collaterals are not problems.
Comparatively, among major factors that affect the respondent women entrepreneurs in MSEs,
economic factors take the first place when legal/administrative and socio/cultural factors follow
it. Technology support holds the first position while machine maintenance service, technical skill
trainings, facility supports and machine maintenance trainings takes the next ranks. However
supports in the areas of entrepreneurship trainings, marketing trainings and planning and report
trainings hold the consequent position while customer service training, machine support and raw
material support are considered low. Finally, as interview result shows cooperation and harmony
among MSEs are considerably weaker.

5.2 Conclusion

Women entrepreneurs in the mehalmeda town are characterized by having no entrepreneurial

family ant taking entrepreneurship as a carrier because they don’t have other alternatives. Based
on the finding women entrepreneurs in the town do not get entrepreneurship training; the
minimum training given focus only on theoretical concepts than on issues of women
entrepreneurs‟ practical trainings. On their side women entrepreneurs there is a lack of focusing
on the trainings given. Beside these all conditions, women entrepreneurs in MSEs Still contribute
more for the countries‟ development. In developing countries generally and Ethiopia, MSEs are
becoming an important area of emphasis mainly because of employment opportunity it creates.
Economic and legal and administrative factors are high in the town while socio-cultural factors
are decreasing. Countries economic development requires production of trained workforce which
is important than just production/fabrication of goods and services. Whatever is produced in the
economy to be competitive, both in the domestic and international markets, depends on the
quality of the productive workforce the country has.

5.3. Recommendations

The main objective of this study is to asses factors affecting women entrepreneurs in MSEs in
mehalmeda town town. Therefore, based on the findings of the study, recommendations are
forwarded for the following concerned ones.

41
 5.3.1. To women entrepreneurs in MSEs:
Women entrepreneurs should not see entrepreneurship as the last option though it is associated
with different factors. Since the opportunity of getting employed in both government and
nongovernment are decreasing, women entrepreneurs use this as a means of creating sense of
independence, flexibility and freedom by starting their own business.
Women entrepreneurs, in order to overcome the different economic, social/cultural and legal/
administrative blockages they face, should cooperate together by forming entrepreneurs
associations. They should search for other alternative supports. Since all women entrepreneurs in
MSEs are not equal in all aspects they can enhance their knowledge by sharing best practices
with other entrepreneurs.

5.3.2. To Micro and Small Entrepreneurs Offices

Selection of women entrepreneurs, which was restricted by number while forming cooperatives,
should be amended as getting exactly the same member size is difficult. Restriction of members
to an area they come from is another point need modification and the criteria are better if it is
according to their knowledge and skill. Arrangement of work place (land) is an issue that
requires MSE office and municipality to give due attention. Finally, MSE office, give accesss of
different business training, access of necessary technologies, adequate infrasturacture.net work.
Should also arrange mechanisms through which women entrepreneurs in MSEs can easily access
administrative bodies and policy makers and also make borrow money even with out titled
aspects as collateral improve unfavorable legal and regulatory environments.

5.3.3. To Micro finances:

Micro finances should device systems of collecting back their loan as other members are
responsible for the other member’s failure to submit the loan on time as this negatively affects
those who obey the rule. They also modify their rule, grouping, to provide loan as it may be
difficult to get full number of members. Micro finances should device other means like
extending time for collecting back loans and rates interest for women entrepreneurs to make
them more benefited from cooperating by MSEs. Micro finances should read well each with
MSE offices in deciding up on women entrepreneurs in MSEs.

42
 REFERENCES

AEMFI (2006), Women Empowerment through Delivery of Microfinance of Service in Ethiopia,

Occasional Paper No. 17

Afza, T., Hassan, M. and Rashid, M.A., (2010). 'Enterprising Behaviors of Enterprise-less

Rural Women Entrepreneurs of Khyber Pakhtunkhawa of Pakistan', Europeon Journal of Social

Sciences, Vol. 18, No. 1, pp. 109-119

Ahmad, S.Z. (2011). 'Businesswomen in the kingdom of Saudi Arabia: Characteristics, Growth
patterns and Progression in Regional Context ', Equality, diversity and Inclusion: an International
journal, Vol. 30, No. 7, pp. 610-614.

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Alex, M. (2008). Entrepreneurial services marketing initiatives facilitating small business
growth. Journal of Small Business and Entrepreneurship, 21 (4), 493-502.

Brush, C.G. and Cooper S. (2012), “Female entrepreneurship and Economic Development, An
International Perspective”, Entrepreneurship and Regional development Abegaz, B. (2004).

Escaping Ethiopia’s poverty trap: the case for a second agrarian reform. Journal of Modern
African Studies, 42, 313-342.

Admassie, A. & Amha,W. (2008). Public Private Partnership Projects of the GTZ in Ethiopia:
International Trade and the protection of Natural resources in Ethiopia. Bonn: Eschoborn.

APEC (1994). “The APEC Survey on Small and Medium Enterprises: Member Report of
Malaysia.

Bekele, Eshetu and Worku, Zeleke (2008). Women Entrepreneurship in Micro, Small and
Medium Enterprises: The Case of Ethiopia. Journal of International Women's Studies, 10(2), 3-
19.

Birley, S. J., (1987). Britain’s new enterprise programmers’. Journal of Small Business
Management, 23(4), 6-12.

Bolton Bill and John Tomson (2004), Entrepreneurs talent, temperament, technique, 2nd Ed,
McGrew-Hill

Bruni, A. Gherardi, S, & Poggio, B. (2004). Entrepreneur-Mentality, Gender and the Study of
Women Entrepreneurs. Journal of Organizational Change Management. Vol. 17 No. 3. (pp. 256-
268). Emerald Group Publishing Limited.

Ethiopian Business Development Services Network. (n.d). Links related to Micro, Small and
Medium Enterprises, www.bds-ethiopia.net, retrieved on 21–4–10.

Ethiopian Central Statistics Authority,(2004). Report on large and medium scale manufacturing
and electronic industries survey, vol.321.Addis Ababa: Ethiopian Central Statistics Authority.

44
Appendix A
This questionnaire is designed to investigate “factors affecting success of women entrepreneurs
in MSEs.”The researcher kindly reminds the respondents (Women entrepreneurs in MSEs) that
the response given by them will be used only as an input for the research work. In addition the
researcher would like to be grateful to the respondents the sacrifices they paid in completing this
questionnaire.
Note: No need of writing your name
PART 1: DEMOGRAPHIC INFORMATION
1. Age
A. Below 20 Years 

B. 21-30 years

C. 31-40 years

45
D. above 40 years
2. Level of education and training
A. Can’t read and write

B. Grade1-4 

C. Grade 5-8

D. Grade 10 complete

3. Work experience
A. Less than 1 year’s 

B. 1-5 year’s 

C. 6-10 year’s 

D. Greater than 10 years

4. Marital status
A. Single 

B. Married 

C. Divorced
Part 2: CHARACTERSTICS OF WOMEN ENTREPRENEUNERS IN MSEs AND
WOMENN OWENED ENTERPRISES
5. Family size
A. Less than 3 

B. 4-5 

C. More than 5
6. What sector is your business in?
A. Trade 

B. Production 

C. Services 

D. Hand-craft 

46
E. Other (specify) _____________________________________________
7. Number of employees in the enterprise?
A. Less than 5

B. 6-10 

C. 11-15 

D. More than 15

8. What is the legal ownership status of the establishment?
A. Sole ownership 

B. Joint ownership

C. Family business

D. you 

E. Other (specify) __________

9. Why did you prefer to start your own business?
A. Family tradition

B. To be self-employed 

C. Brings high income 

D. Small investment is required

10. Who initialed and started the business?

A. Myself alone 

B. With a friend/partner

C. With the family 

D. Other (specify) 
11. How did you acquire the skill for running your enterprise?
A. Through formal training

B. From past experience 

C. From family 

47
D. Other (specify) 
12. Is there anyone in the family who was entrepreneur or owner of some related business
activities?
A. Yes 

B. No 
13. If yes, what is your family relation with him/her?
A. Father

B. Mother 

C. Brother 

D. Sister 

E. Grandfather 

H. Other (specify)
14. What was your main source of start-up funding?
A. Personal saving 

B. household 

C. Borrowed from relatives or friends

D. Micro-finance institutions 

E. Equb 
PART 3: FACTORS AFFECTING WOMEN ENTREPRENEURS’ SUCCESS IN MSEs
The major factors that affect women entrepreneurs’ success in MSEs are listed below. After you
read each of the factors, evaluate them in relation to your business and then put a tick mark ()
under the choices below.
5=strongly agree, 4=agree, 3=undecided, 2=disagree, 1=strongly disagree

No Item Agreement scale r

e
m
a
r

48
 k
15 Economic factor 1 2 3 4 5
15.1 I am satisfied with the financial access given by micro
finances and other lending institutions.

15.2 I have access to market for my products

15.3 A have access to different business trainings
15.4 I have my own premises (land) to run my business
15.5 I have an access to information to exploit business
Opportunities
15.6 I have managerial skills
15.7 I have access to necessary technologies
15.8 There is no stiff competitions in the market place that I am
engaged in.
15.9 Adequate infrastructures are available
15.1 I have access to necessary inputs(raw materials)
0
16 Social factors
16.1 I have a better of social acceptability
16.2 I have a better contacts(networks) with outsiders
16.3 I have no prejudice or class biases
16.4 The societies attitude towards my products/services is
positive
16.5 The attitude of other employees towards my business is
positive
16.6 I have a positive relationship with the workforce
16.7 I have no conflicting gender roles
16.8 I am not affected by gender inequalities
16.9 I have no cultural influences
16.1 I never encounter harassments in registering and
0 operating my business

49
17 Legal and administrative factors
17.1 I have business assistants and supporters from
government bodies
17.2 I have a network with different administrative bodies
17.3 I have access to policy makers
17.4 I have no legal, institutional and policy constraints
17.5 can borrow money even without titled assets as a collateral
16.6 Interest rate charged by micro finances and other
lending institutions in reasonable
16.7 I have never encountered bureaucracies and red tapes
16.8 I am beneficiary of government incentives
16.9 I have never faced unfavorable legal and regulatory
environments
16.1 The tax levied on my business is reasonable
0
17 Successive women enterpreur 1 2 3 4 5
17.1 The key economic, social, legal and administrative factors
that affect the success of women entrepreneurs in MSEs.

17.2 The major characteristics of women entrepreneurs in

running MSEs in mehalmeda town.

17.3 The natures of supports given to women entrepreneurs in

running MSEs in economic affirmative action.

50
Birhan College
School of Business and Economics
Department of Business Administration
Graduate program
Interview Questions with MSE heads
1. What problems did you face while running MSEs in relation to?
A) Economic factors
 Market

 Finance

 Technology

51
 Infrastructure

 Training

 Raw material & if others specify

B) Social factors
 Public acceptance

 Attitude towards women owned businesses

 Relationship with suppliers, customers and others

C) Legal and Administration factor

 Government policy

 Bureaucracies (in relation to licensing, taxation etc.)

 Women Support

2. Your cooperation with

 Micro finances

3. What other problem did you face?

4. What measures did you take to solve the problems you face?

Birhan College
School of Business and Economics
Department of Business Administration
Graduate program
Interview Questions with micro finance heads
1. Is there a special financial support that you give for women entrepreneur?
2. What problem did you face is relation to
 Borrowing and

 lending

 Collateral

52
3. What measure did you take to solve the problem you faced?
4. What is your cooperation with?
 MSEs.

53