CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

Table 4.1 Analyzing the gender and the age of the Respondents

Variables Items Frequency Percent

Respondents gender Male 104 63
Female 61 37

Total 165 100

Age of the Below 25 years 24 14.5

respondents 25-30 years 16 9.7

31- 45 years 71 43
46 and above 54 33
165 100

Source:(field survey,2014)

The table above reveals about the gender and age of the respondents of the study,
accordingly , Male entrepreneurs constituted (104) 63% of the respondents while
their female counterparts onlywere (61) 37%. The results thus indicate that men are
more involved in entrepreneurial activities as compared to their female counterparts.
This can also be confirmed by the female Total Entrepreneurial Activity (TEA).
Iindex which showed that on average, participation rates of men tend to be 50% higher than
those of women (Minniti, 2004).
It is very important to be aware of the age distribution of the respondents. This will
enable the researcher to know whether respondents are old or young (Zindiye 2008:
150). The above table shows the age categories of the respondents.
The results depicted in Table show that the majority which is 125 (76%) of owners
and managers of SMEs in the Hawassa town administration are above 30 years of
age. The findings of the study done in America by Muijanack et al. (2003: 6)
determined that the optimum age for entrepreneurs was 25-35. However, in this case,
16 (9.7%) of the respondents in that category are actively involved in entrepreneurial
activities.

It can be concluded that the majority of Hawassa town youths are not actively
involved in entrepreneurial activities. This is further supported by Von Broembsen et
al. (2005:36) who stated that the Hawassa town youth do not believe they have
skills to start a business, and only 24(14.5%) of youths believe they have the skills to
start businesses. According to (Von Broembsen et al. 2005: 36).
This is said to compare very poorly with the statistics indicating that 70% of young
men in Brazil and 60% of young men in India believe they have the required skills to
run businesses.

Table 4.2 Educational background

Items Frequency Percent

Primary education 18 11
Secondary education 23 14
Educational Technical and vocational 69 42
background training /T VT
First degree 45 27.3
Second degree and above 10 6.1
Total 165 100
Source:(field survey,2014)

To effectively determine the impact of entrepreneurships` education on business

performance, it was crucial to seek the highest educational qualifications of the
respondents. In fact, education equips people with knowledge and managerial skills,
making them understand better the business dynamics, hence being able to manage
business effectively.
This was also important in determining whether they understood the importance of
education in running a business shows that the respondents had different levels of
educational qualifications ranging from primary education to a masters degree and
above. Thus, It is clear from the table that 124 (75%) of the respondents have post-
secondary school qualifications. These results are confirmed with the findings of
 Shafeek (2006: 101) on SMEs in the study areas in Hawassa town administration,
where more than 70% of the respondents had a post-secondary school qualification.
Only 25% of the respondents attained primary education.

Table 4.3 Marital status of the respondents

Marital status Married 55 33.3
Un married 110 66.7
165 100
Sources: (Field survey,2014)
The other is marital status of the respondents, here the majority 110 (66.7%) of the

respondents were un- married while 55(33.3%) married.

Business experience
An enterprise’s age has a significant effect on growth for the reason that older firms

have more experience and a superior financial position to execute their business

activities than their counterparts relatively (Afande 2015; Leza et al. 2016).

Moreover, older firms are more likely to grow faster than younger firms because of

the social capital they have gathered over time through experience (Nathan et al.

2015). Therefore, business experience and firm growth have a positive relationship,

that is, as the age of an individual firm increases, the firm growth also increases

(Fissiha, 2016).

Table 4.4 Business experiences of the respondents/ Years in business

Items frequency Percent

Less than 3 years 20 12

Business experiences 3-5years 54 33

6-10 years 46 28

11-15 years 34 20.3

16 and above 11 6.7
Total 165 100
Source :( field survey, 2014)
From the above table we can see that 20 which constitute (12%) of the SMEs have been
operating for less than 3 years. About 54 (33%) have been in business for 6 to 10 years and the
remaining 45 (27%) have been in business for more than 11 years. This shows that 145(87.9%)
of the businesses that participated in this research have survived for more than five years and are
now established firms. These results differ with the findings of Fatoki and Garwe (2010: 731)
and Von Broembsen et al. (2005: 21) who agreed that the majority of SMEs fail within three to
five years of operation.

Table:-4.5 Extent to which entrepreneurship skills add value to business growth

SA % A % DA % SD %
entrepreneurship skills add 74 44.8 54 55.2 0 0 0 0
value to business growth
whether you had ever been 34 20.6 13 7.9 50 30.3 78 47.3
trained in entrepreneurship
skills
Not at
1X % 2X % 2- 3X % all %
the number of training sessions 12 7.3 16 9.7 19 11.5 137 82
they had attended
Source:(Field survey, 2022)

Entrepreneurial skills training is an important component with regard to business growth.

Through training, entrepreneurs acquire skills and knowledge of improving their businesses. As
to whether entrepreneurship skills add value to business growth. All the respondents agreed on it.
their entrepreneurship skills added value to their business to very good, good and to fairly extent
contribute to the growth of their businesses And in case of’ whether the respondents had ever
been trained in entrepreneurship skills’, it is evident that a substantial percentage of the
respondents (77.6%) had not had any training in entrepreneurship skills. Those who had received
training constituted 47 (28.5 %) and were trained in negotiation and customer care
communication skills by different organizations such as TVET, Hawassa university, TTC and
different training centers. When asked the number of training sessions they had attended, the
majority 82 %) did not attain any session. A proportion of 11.5% revealed that they had been
trained 2-3 times. On the whole, it is evident that members of enterprises are not adequately
trained in entrepreneurship skills.
In effect, entrepreneurship growth entails enhancement of entrepreneurial skills and knowledge
through structured training and institution building programs (UNDP, 1999). This is consistent
with Lind (2005), who argues that a successful entrepreneur should be creative, innovative and
have good communication and negotiation skills and that these skills can be acquired through
training. The Asian Productivity Organization (APO), (2007) in its report on Entrepreneurship
development for competitive small and medium enterprises pointed out that entrepreneurship
skills development positively correlates with the growth of SMEs.

Entrepreneurship training is believed to have a positive impact on return on investment, profit,

and turnover. In this study therefore, investigation into the impact of entrepreneurship training on
the businesses members who received the training.

Table 4.6: - Ways of identifying opportunities for business

Statements frequency Percent
Gathering information concerning the business environment 49 29.7
Meeting the demand that is not currently met by your 47 28.5
competitors
Developing new products ahead of your competitors 69 42
Total 165 100
Source: (Field survey, 2022)

Focus was mainly on identification of business opportunities and profitability. Identification of

viable business opportunities in a given environment, use skills to combine and manage the
factors of production (land, labor and capital) well with the aim of making profit is one of the
key skills that an entrepreneur ought to possess. Accordingly 29.7% of the respondents affirmed
that by gathering information concerning business environment, and meeting the demand that is
not currently met by competitors 42% said they could identify opportunities by developing new
products ahead of competitors.
Table4.7: Ways of identifying opportunities to generate profit for business

SMEs recognize available opportunities for their business growth, the focus was mainly on
identification of business opportunities and profitability. Identification of viable business
opportunities in a given environment, use skills to combine and manage the factors of production
(land, labor and capital) well with the aim of making profit is one of the key skills that an
entrepreneur ought to possess. A ratio 35 % responded in the affirmed that they recognized
opportunities for business growth.

Statements frequency percent

Discovering opportunities to earn money 23 14
Buying resources or producing goods and selling them 58 35.2
Financing ventures by borrowing money from a bank 24 14.5
Using the funds for entrepreneurial venture 40 24.2
Paying back the interest, and retaining the "pure entrepreneurial 20 12.2
profitability”

Source: field survey,2014

Indicates the various aspects which the respondents indicated in regard to having ability of
recognizing opportunity for increasing business profitability. In response to having ability of
recognizing opportunity for increasing business profit ability ,a greater majority of respondents
35.2% indicated that they were capable of buying resources or producing goods and selling them
while 24.2% said that they can use the funds for entrepreneurial ventures.
Impact of Communication Skills on SMEs Growth

Good communication skills are indispensable to successful business. The entrepreneur requires
this to communicate his/her ideas to clients. The entrepreneur must always give the people
something to feel, something to remember and something to do. Asked about language they were
most comfortable using, their respond is as indicated in the table below.

Table4.8: - The language in which respondents can communicate comfortably

Statements SA % AG % DA % SD %
I can communicate comfortably with Customers 63 38.2 46 28 27 16.4 30 18.2
in Amharic
I can communicate comfortably with Customers 43 26 36 22 39 23.6 47 28
in Sidamigna
I can communicate comfortably with my 69 35.8 43 32 30 18.2 33 20
customers with both sidamigna and Amahric
Source: (Field survey, 2022)

The above table shows that all the respondents 63(38,8%) strongly agreed that Amharic is most
of their customers speak it since it is favorable medium of communication for urban dwellers .
However this affects their businesses in the sense that they fail to communicate properly with
clients who speak Sidamigna only but do not know other a commonly spoken language. As a
result they may lose such customers hence affecting sales.

Probably attributed to lack of innovative and language communication skills whereby

entrepreneurs replicate each other’s’ enterprises.

Effects of Innovative Skills on SMEs Growth

Innovation is a crucial part of the entrepreneurial process. The idea of innovation in business
sense can mean more than just developing a product. It includes bringing that innovation to the
market place and using it to deliver value to customers. In this study, respondents were asked
whether or not they had innovation section in their businesses. A proportion of while 55.2%
affirmed to innovative skills on SMEs growth.
Table 4.9:- About the presence of innovation section in their business or not
Statement Items frequency Percent
innovation section in their business Yes 74 44.8
or not No 91 55.2
Total 165 100
Source: (Field survey, 2022)

The table above show as SMEs in Hawassa sub cities are fond of doing same businesses with the
same commodities no innovation has been observed. This is advantageous as it re 44.8% reduces
monopoly but it is disadvantageous to entrepreneurs as it affects their sales.

The table below shows the opinion of the respondents concerning the challenges that affect
SMEs growth.

Table: 4.10 Challenges observed on the growth of SMES

Statements Items Frequency Percent

Need to face financial problems Strongly agree 77 46.7
Agree 64 38.8
Dis agree 24 14.5
Strongly dis agree 10 6
Risks in availability of capital and labor Strongly agree 58 35.1
market Agree 52 31.5
Dis agree 33 20
Strongly dis agree 32 19.4
need more technical or professional Strongly agree 79 48
knowledge and skill/Technological Agree 62 37.4
Dis agree 17 10.3
Strongly dis agree 7 4.2
Availability of infrastructures and security Strongly agree 73 44.2
Agree 41 25
Dis agree 24 14.5
Strongly dis agree 27 16.4
Government policy related challenges Strongly agree 61 37
Agree 43 26
Dis agree 31 18.7
Strongly dis agree 20 12
Socio cultural challenges Strongly agree 87 53.7
Agree 78 47.3

Source: Field.survey,2014
From the above table we conclude that with regard to the problems faced in entrepreneur is the
percentage score of the statement “the need of more technical or professional knowledge and
skill 141(85.4%) was the priority problem they faced and the next problem was the need to face
financial problem Since the percentage score is 131(80%) ,Economic problems have faced in
business 120(73%) next to it was availability of infrastructure and security 114 (69%).While the
rest problem is risk in availability Capital and labor 110 (66.7%) considered as the problem.

Regarding the government policy as a challenge for entrepreneurs’ the majority 104(62.4%) of
the respondents said that they agreed upon government policy was taken as the one of the
challenge that face entrepreneurs. While the rest said they denied government policy was not
taken as a challenge the other challenges of entrepreneurs was socio-cultural the majority
107(65%) were accepted as the challenges of them while only 58(35.2%) dis agreed.

Government related challenges that imped the development of entrepreneurship that

Entrepreneurs are dependent upon law for a wide variety of factors. The strength and fairness of
the legal system of a nation affect the quality of entrepreneurship to a large extent. This is
because entrepreneurs require a wide variety of legal, political services to function. The
government can also influence a high degree of control on the market through provisions of
taxation. Some amount of taxation is necessary for the government to maintain the legal and
administrative systems in place for the entire economy.

Labor is an important factor of production for almost any kind of product or service. The
fortunes of the entrepreneurs are therefore dependent on the availability of skilled labor at
reasonable prices. However, in many countries labor has become unionized. They demand higher
wages from the entrepreneurs and prohibit other workers from working at a lower price. This
creates an upward surge in the costs required to produce and as such has a negative effect on
entrepreneurship. The interviewee also confirmed that there are different factors that imped the
growth and development of entrepreneurs, like policy related issues, socio -cultural influences
technological ,shortage of capital, labor ,finance as well as infra- structure as the factors.

Table4.11:-The Level of Entrepreneurship skill development and Training among the

SMEs

Statements Items Frequency Percent

Yes 71 43
 Have you attained training on entrepreneurship skill No 94 57
development program?

Entrepreneurship education necessary for the Yes 142 86

successful establishment amd the growth of SMEs No 23 14

The Need for Entrepreneurship Skills and Strongly agree 112 68

Knowledge
Agree 53 32
Do you expect that your business has witnessed Yes 98 59.4
tremendous growth after training No 67 40.6

Do you accept that your business perform well in Strongly agree 98 59.4
terms of sales turnover after training Agree 45 27.3
Dis agree 22 13.3
165 100
Are you able to generate new clients every day Strongly agree 99 60
after training and education? Agree 54 32.7

Dis agree 12 7.3

Are you able to prepare a marketing plan for my Strongly agree 12 7.3
business Agree 8 4.8

Dis agree 49 29.7

Strongly dis agree 96 58.2

Are you carrying out daily book keeping of your Yes 54 32.7
business transaction No 99 60
I don t know 10 6
Do you separate your working capital from other Yes 53 32
moneys No 90 54.5
Don’t know 22 13.3
Do you aware of your customers’ needs rather Yes 49 29.7
than your profit No 116 70.3

Do your customers feel very happy due to the Yes 108 65.5
services you provide No 7 4.2
I don’t know 50 30.3
Source: Field survey,2014

From the above table we conclude that with regard to the problems faced in entrepreneur is the
percentage score of the statement “the need of more technical or professional knowledge and
skill 141(85.4%) was the priority problem they faced and the next problem was the need to face
financial problem Since the percentage score is 131(80%) , the availability of infrastructure and
security 114 (69%). While the rest problem is risk in availability Capital and labor 110 (66.7%)
considered as the problem. Regarding the government policy as a challenge for entrepreneurs’
the majority 104(62.4%) of the respondents said that they agreed upon government policy was
taken as the one of the challenge that face entrepreneurs. While the rest said they denied
government policy was not taken as a challenge the other challenges of entrepreneurs was socio-
cultural the majority 107(65%) were accepted as the challenges of them while only 58(35.2%)
dis agreed.

Table4.12: - the role of Government on entrepreneurship skill Development

statements Items Frequency Percent

There is strong Government Regional /federal role in Strongly agree 29 17.6
the entrepreneurship development in the study area Agree 34 20.6
Dis agree 48 29.1
Strongly dis agree 54 32.7
Do you agree that Government policies and schemes Strongly agree 29 15.6
towards entrepreneurship development is highly Agree 35 21.2
applicable. 60 36.4
Dis agree
Strongly dis agree 41 24.8
Financial support provided by Government Yes 49 29.7
adequately for entrepreneur’s development program. No 116 70.3
Don’t Know -
Total 165 100
Is there any supportive institutions that Yes 50 30.3
established by government No 105 63.6
I don’t Know 10 6.6
Financial support provided by private financial Yes 42 25.5
Institutions like banks, bank loan, No 119 72.1
Don’t know 4 2.4
Total 165 100

From the above table we have seen that the role of government on the development of

entrepreneurship, Hence regarding “There is strong Government Regional /federal role in the

entrepreneurship development in the study area” here the majority 103(61.8%) of the

respondents, did not agree up on this the role of government was weak in the study area. while

the rest said that they agreed that there was government played a strong role on entrepreneurial

development program. In the case of “Do you agree that Government policies and schemes
towards entrepreneurship developments are highly applicable?” Most 101(61.2%) of the

respondents did not agreed that government policies and programs were not applicable in the

study area. but only 54(37.8 %) of the respondents said government policies and programs were

applicable and realized in the study area. Regarding” Financial support provided by Government

adequately” majority 116(70.6%) of the respondents denied about financial provision and

support while only 49(29.4%) accepted that there were financial provision from respective

government bodies. With the regard to “Is there any supportive institutions that established by

government” most of the respondents said that there were no supportive institutions that

established by government to support entrepreneurs. But only agreed that there were some

government established supportive institutions in the study area. In the case of “Financial support

provided by private financial Institutions like banks, bank loan,” the majority of the respondents

responded that denied the presence of private lenders institutions.