Professional Documents
Culture Documents
Thesis Grace Mary Thonga
Thesis Grace Mary Thonga
Thesis Grace Mary Thonga
Assignment:
Year: 2020
Task
Chapter Two
Chapter Three
The women are key instrument in the society and their role is very important in the world
because they act dual role both in the family as well as society. The microfinance has an
important role in empowering women in developing countries as well as in Zambia by accessing
credit facilities for their income generating activities to empower the women.. Micro Financial
Institutions provide their customers with financial and social intermediation services to help
improve their income generating activities. The aim of this study is to investigate the challenges
of women in accessing finances in Business. This concept paper focuses on a review of
academic literature on Challenges when accessing finances in empowering women through
micro finance in Kabwata For this purpose previous studies from developed and developing
countries on this regards have been examined and then found out the solutions from the
literatures. Finally, the conclusion of their studies has been analyzed and then provided a
comprehensive literature by seeing the experiences and usefulness of the activities about the
solutions for the challenges in accessing the finances for their business activities to empower
poor women. Therefore it has been strongly feel that a look into empowering women and
developing them with the support of the microfinance and the monitoring and creating awareness
are important to eliminate the challenges facing by them in accessing credit from Microfinance
Institutions.
Therefore, the study will examine the challenges of women financing in business using feminist
theoretical ideas and liberal viewpoint, the study will explore on how gender – biased and
structural barriers prevent women financing in business. The intention of this study is to examine
the challenges and obstacles faced by women in accessing finances for their business. in terms of
a supply-side finance gap that obstructs the growth and development of this vital economic
sector in Kabwata in Lusaka District. The study will analyses data collected from the female
residents in business from Kabwata township, banks and financial institutions. In Zambia, during
recent decades, women's contributions to the country's economic and social development have
increased substantially (Ahmed, 2014). Nonetheless, the participation by women in the formal
economy is still inadequate (Chowdhury, 2000). Even today, the progress of women as
entrepreneurs in Lusaka is remarkably poor as compared with the men, there are few women
who participate in business. In recent years, the Government of the republic of Zambia through
the Zambia National Commercial bank and African Development bank have increased financial
support of female-owned businesses in both rural and urban areas (Small Enterprises Business
Account, SEBA, 2010). For example, during 2010–2018, most of the commercial banks had
introduces user friendly bank rates slightly lower so as to encourage women to access finances
for their business. Research shows that economic developments lead to cultural developments
that lead to societal change that transforms the position of women into one of equality rather than
subordination (Inglehart, Norris, & Welzel, 2011). Women's representation in the mainstream
economy is crucial because female entrepreneurship leads women to greater economic
independence and gender equality in decision making (Goyal & Yadav, 2014). Evidence shows
that the economic empowerment of women results in significant improvements in children's
health, nutrition, and education and has multiplier effects on sustainable development
(International Finance Corporation [IFC], 2011). Women’s self-employment increases their
income, which strengthens their bargaining capacity and control over resources. This allows
them to make greater investments in their own quality of life and in their children's well-being.
The World Bank's World Development Report 2011 suggests that to increase the level of
productivity by 25%, several countries should eliminate unfair practices towards women. In
Zambia, a policy restraints obstruct women's full economic participation and cause a reduction in
the gross domestic product by 2% (The World Bank’s World Development Report, 2011). Today
women in business represent almost 40% of all private firms in the United States and 34% and
33% of the total businesses in Austria and in France, respectively (Cultural, 2010). On the other
hand, female-owned firms constituted only 3% to 4% of total business enterprises in the
Republic of Zambia (Ahmed, 2014). In 2013, the statistics estimated that micro, small, and
medium enterprises made up 65.5 % of all businesses owned by the women only.
The women face numerous challenges to access financial services from commercial banks and
any other financial lending institutions because of lack of guarantee, collateral and distance for
rural areas business women. There other reasons such as poor education background, lack of
small loans and lower rate of profit also involved for which commercial banks are not willing to
finance. Therefore, limited option to access loan leads to push the women in more poverty. This
situation resulted in the emerging of micro lending and microfinance. Therefore, microfinancing
is a way to finance people who have no collateral or any property for guarantee. The
microfinance organizations have financial focus they are expected to impact the lives of poor
women in doing business. Kabeer, 2010). According to Otero (2012), Micro finance is the
provision of financial services to low- income poor and very poor self- employed people. There
are a number of challenges financing women in business, in Lusaka in the republic of Zambia
and also in other developing countries. Mostly the poor women, for example the widows, single
mothers, have greatly been affected. Therefore, the government has the responsibility to prevent
the poor women from the struggles and enhance their standard of living conditions have
somehow improved by empowering them and forming up cooperatives.
It is against this background that this study intends to assess the challenges of women face in
Accessing finances in Business effectiveness of the Gender empowerment and Policy in
improving the welfare of women in business in Kabwata Township, of Lusaka District is
situated in Lusaka Province of Zambia with an estimated population of 22,537 people. It is
agrarian economy with the majority of residents relying on small medium enterprises for
survival.
The women in Business have faced challenges in accessing finances in Zambia, during recent
decades’ women’s contributions to the country’s economic and social development have
increased substantially (Ahmed, 2014). Nonetheless, the participation by women in the formal
economy is still inadequate (Chowdury, 2002) even today, the progress of women as
entrepreneurs in Lusaka is remarkably poor as compared with the men, there are few women
who participate in business.
The aim of the research is to evaluate the effectiveness of women accessing finances for business
and women empwerment Policy in improving the status quo of women in Zambia.
RESEARCH OBJECTIVES
The objectives of this study will be broken down into General objectives, and Specific
objectives.
General Objectives
To evaluate the efforts undertaken by the Zambian government to ensure the women access
finances for business and women empowerment Policy develops programs that will ensure
adequate financial resources in Zambia.
SPECIFIC OBJECTIVES
1). To determine the measures undertaken by the Zambian Government to promote increased
women accessing finances for business in Kabwata.
2). To evaluate the improvement of women status through the utilization of all available
microfinances in Lusaka district.
3). To investigate activities put in place by the Zambian government to support and promote
small and medium enterprises in Lusaka district.
RESEARCH OBJECTIVES
1).To describe the challenges faced by women in accessing financing for their businesses.
1.2RESEARCH QUESTIONS
3). Why do women face challenges in accessing financing for their businesses?
The significance of this study is to come up with a mechanism that will help mitigate the
challenges that women face in accessing financing for their business in Kabwata market, the
community, Banks and financial institutions.
The Research will be conducted in Kabwata, Lusaka district, I wish to conduct the research in
this area because its within my vicinity, therefore it will be easy to conduct a survey, apart from
that it will enable me to identify the challenges women face in accessing finances in business and
come up with recommendations that will help mitigate the challenges
In trying to justify why the current study is important Theory of personal resourcefulness Theory
of entrepreneurial supply Theory of personal resourcefulness Theory of entrepreneurial supply
Theory of personal resourcefulness Theory of entrepreneurial supply Theory of personal
resourcefulness Theory of entrepreneurial supply Theory of personal resourcefulness Theory of
entrepreneurial supply Theory of personal resourcefulness Theory of entrepreneurial supply
Theory of personal resourcefulness Theory of entrepreneurial supply Theory of personal
resourcefulness Theory of entrepreneurial supply Theory of personal resourcefulness Theory of
entrepreneurial supply Theory of personal resourcefulness Theory of entrepreneurial supply
Theory of personal resourcefulness Theory of entrepreneurial supply to a number of theoretical
frameworks were looked at upon which this study will be anchored such as Liberal feminism
theory, the theory of personal resourcefulness Theory of entrepreneurial supply
Entrepreneurship theory (John H. Kunkel 2012) advocated the theory of entrepreneurship supply,
according to him, psychological and sociological variables are the main determinants for the
emergence of entrepreneurs. He contemplated that entrepreneurial talent can be found in women,
minorities, religious, ethnic, migrated, displaced elites and these minorities have supplied most
of the entrepreneurism in the society
After a strict scrutiny of the theories, the researcher settled for Liberal Feminism Theory which is
more suitable for this study. The theory advocates equal rights for men and women. It was first
expressed in 18th-century Europe during the Enlightenment (Fischer etal., 1993). Well-known
thinkers of liberal feminism include Mary Wollstonecraft (18th century), John Stuart Mill and
Harriet Taylor (19th century), and Betty Friedan and Rebecca Walker (20th century).All
grappled with male-dominated power structures (Carter & Williams, 2003; Tong, 2007).As
highlighted by liberal feminist theorists, male-controlled organizations and societies impose
structural barriers that prevent women benefiting from power, opportunities, and resources such
as education, finance, networks, business experience, management training, and property rights
(Carter& Williams, 2003; Fischer et al., 1993; Tong, 2007). The theory argues that women are
more likelythan men to be deprived of the chance to develop their full intellectual capacity and
so are less able to compete in male-dominated entrepreneurial activities and less able to increase
their status. This study will be anchored on Liberal Feminism Theoretical framework.
1.8 Summary
This Chapter sets the background of the study. It gives an overview of the state of women
empowerment in Zambia and attempts that have been made to improve the status quo through
the introduction of women empowerment policy in Zambia. It then establishes the research
problem and defines what it intends to achieve through research objectives. Furthermore, in the
light of the scope of the study, this Chapter also poses research questions of which the research
finding will substantiate. Finally, it outlines the anticipated benefits that will be realized from the
findings of this study.
CHAPTER TWO
INTRODUCTION
This chapter will focus on literature review on challenges of women in accessing finances for
their business globally, Africa and Zambia. The Significant empirical studies have focused on
the challenges of women in accessing finances for their business. The challenges women face in
Europe accessing finances for their business are not exception to Europe alone Africa faces even
worse challenges. Within the wide-ranging category of owners or managers’ characteristics,
gender has received much attention and is the most considered in the literature (Abor & Biekpe,
2006; Coleman, 2000; Irwin & Scott, 2010) as having an impact on the ability of women to
access finance. Gender and access to finance from formal financial institutions, mostly banks,
has raised discussions in the literature because the Small Medium Enterprises owned by women
are growing and are starting to represent a considerable share in the small business sector
(Coleman, 2000). Further, gender has been cited in large studies (Treichel & Scott, 2006; Kwong
et al., 2012; Osei-Assibey et al., 2012) as being among the various factors that affect access to
finance. Muravyev et al. (2009) stated that gender differences in financing patterns and the use of
bank credit observed in Small Medium Enterprises could be explained by several reasons.
Small Medium Enterprises owners in Europe, when asked about the most important problems
they faced, they mention access to finance first, ahead of issues such as ‘’taxation, lack of skill,
access to public procurements, unfair competition, labour law, access to the single market and so
forth (European Commission Report, 2008).
The fact that women in business have not made the desired impact on the Australian economy in
spite of all the efforts and support of succeeding administrations and governments gives a cause
for concern. It underscores the conviction that there are fundamental issues or problems, which
face Small Mediums Enterprises but which up till now have either not been addressed at all or
have not been wholesomely tackled. A review of literature reveals indeed that access to loan is
the main problem. The following researchers confirmed it.
Lack of adequate financial resources places significant constraints for women in doing business
Cook and Nixson (2000) observe that, notwithstanding the recognition of the role of Small
Medium Enterprises in the development process in many developing countries, Small Medium
Enterprises development is always constrained by the limited availability of financial resources
to meet a variety of operational and investment needs.
The major challenge faced by women in business is accessing finances. (Boapeah, 1993). Some
of the challenges women face in accessing finances are discussed below;
Stringent conditions
In many cases, women are not able to access loans from financial institutions because of the
conditions attached to the loan. Financial institutions refuse to lend to some small enterprises
particularly women because they do not have acceptable collateral and they are viewed as a high
risk. Previous researchers have suggested that, bank financing will depend upon whether the
lending can be secure by collateral (Storey, 1994; Berger and Udell, 1998). Collateral in the form
of assets is only a way for financial institutions to recover their money in event of default.
Without adequate collateral, banks have limited or no ways to protect the loan assets. The
financial institutions demand collateral in order to mitigate the risk associated with the loans.
The small scale enterprises with good business plans not back by adequate collateral are
normally refused credit because financial institutions cannot afford to take any chances of non-
repayment of loans. Financial institutions always insist that this collateral requirement is
fulfilled.
Fatoki and Garwe (2010) noted that inaccessibility of finance is the second most reported
contributor to low firm creation and failure, after education and training in South Africa.
Herrington et al., (2009) also pointed out that access to finance is the major problem for
South African SMMEs. Cassar (2004) makes it clear that inaccessibility of finance can be a
constraint on SMME growth and success. A research conducted by Naude and Havenga (2004)
proved that most entrepreneurs, specifically SMMEs struggled with accessing finances from
banks due to excessive red tape and administrative burden. They argued that financial institutions
rarely finance startup businesses because they are bureaucratic, lack knowledge or understanding
of the owners or operators of SMMEs (entrepreneurs), are not willing to assist and are wary in
providing finance to people who do not have a business record.
Strict vetting of credit applications
Banks are also strict when vetting credit applications of small businesses. Banks are
more stringent when appraising credit applications of SMES hence subjecting them to
cumbersome credit procedures. The procedure of vetting loan applications waste so much time
that loans are delayed and issued when intended purposes have expired. Chowdhury Dilruba
Shoma :2018
Short period for repayment
At times, loans received are less than requested and short periods are given for the repayment of
the loans. Ricupero (2002) states that commercial bank loans extended to Small Medium
Enterprises are often limited to a period far too short to pay off any sizeable investment and
Abereijo and Fayomi (2005) notes that the majority of commercial bank loans offered to SMEs
are often limited to a period far too short to pay off any sizeable investment.
Unaware of factors financial institutions take into considerations
Then women in small enterprises do not know factors financial institutions take into
consideration before lending to its customers. Financial institutions generally do not lend to
whoever would be willing to pay higher interest rates, because doing so would attract riskier
borrowers. They have ways of checking credit worthiness of their customers. They lend to
businesses, which they are convince that they have the ability to repay the loan (Ocansey, 2006).
It has been observed that a key factor that make the SMEs unable to access financial assistance
was the lack of understanding in the operations of banks and vice versa. Consequently, in effect
SMEs suffer from the frustration of delay in accessing bank credits or denied completely. Banks
demand things like audited financial information, convincing business plan, and bankable
proposal before they lend to small business. Most small enterprises do not have technical
capacity to do these things. This makes it difficult for them to access loans.
The greatest constraint facing all women entrepreneurs in the African Continent is a lack of
funds. UNIFEM, a „United Nations Development Fund for Women‟ was used widely in many
parts of Africa to assist women entrepreneurs. Unfortunately, it is not very encouraging for
African women entrepreneurs regarding capital generation. Women entrepreneurs have to go
through complex and time consuming procedures for capital generation due to number of
reasons, consequently turning their motivational spirit off as business startups. More avenues
and platforms need to be introduced by NGO‟ s, banks, financial institutions to encourage
women entrepreneurs to join as business startups in the economic activity of the continent
CHAPTER THREE
3.0 METHODOLOGY
3.1 INTRODUCTION
This is a concept paper and the researcher has adopted the method of reviewing different
research articles, research journals, and case studies, to collect data about the challenges women
are facing in accessing finances in business which is consequently incorporated as a concept
paper drafted by the researcher
Research methodology is the way to systematically solve the research problem The methodology
includes the various steps that are adopted by a researcher in studying the research problem alone
with the logic behind them. Research methods and materials on the other hand maybe understood
as all those techniques and associated with materials that are used for conducting research.
Research methods or techniques thus refers to the methods the researcher uses in performing
research operation in other words all those methods which are used by the researcher during the
course of studying the research problem are termed as research method. The methodology maybe
qualitative or quantitative (Ghosh.B.N.2015) defines qualitative studies focuses on subjective
information such as feelings, experiences opinions or data that cannot be quantified’. Quantified
research focuses on statistics and quantitative information the methodology sections should
include the following;
Kothari (2004) defines a research design as the conceptual structure within which research is
conducted. The research design used ensured collection of relevant information with minimal
expenditure of effort, time and money. This study will employ a survey method to collect data. A
survey is an attempt to collect data from members of a population in order to determine the
current status of that population with respect to one or more variables, (Mugenda & Mugenda,
2003). A mix of element of study is appropriate for representative purpose since the study
elements are engaged in a variety of commercial activities. The qualitative data will have been
used particularly to supplement the strength of the quantitative aspect. The research design
shows a description of a plan to be used in collecting the relevant evidence in order to achieve
the objectives for instance case study, correlation, exploration, description diagnosis,
experimentation and survey research designs. In some departments particularly or analytical as
opposed to descriptive research the methodology section is further segmented into;
2 Study population
This will provide a description of all the intended subjects, respondents or participants, where
possible the research should provide numbers
3 Study sample
4. Sampling Techniques
This will provide a description and justification and techniques to be used to select a subject
respondent or participant.
This will provide a description and justification of instruments used to collect data. This will be
used for data analysis after questionnaires have been collected from the field. This is one of the
fast method of analyzing data from the fields A further step taken after designing the
questionnaire was to carry out “the pilot test” or “test running” which was conducted on 15
SMEs. The main objective of the testing was to improve the potential response rate, since
through the initial test, poorly worded and complicated questions are eliminate.
Analysis will be made through SPSS 22, because it can obtain data from any file and generate
tabulated reports, plots of distributions, trends, descriptive statistics and complex statistical
analyses. Statistical techniques like the mean, standard deviation, cross-tabulation, Mann-
Whitney U test and Chi-square test were used in accordance with the research objectives.
This will be used for data analysis after questionnaires have been collected from the field. This is
one of the fast method of analyzing data from the fields A further step taken after designing the
questionnaire was to carry out “the pilot test” or “test running” which was conducted on 15
SMEs. The main objective of the testing was to improve the potential response rate, since
through the initial test, poorly worded and complicated questions are
eliminated..
REFERENCES
Bhalotra, SR, and M Umaña-Aponte. 2012. “The Dynamics of Women’s Labour Supply in
Developing Countries.” Institute for the Study of Labor (IZA) Working Paper. Institute for the
Study of Labor (IZA) Working Paper