THE CHALLENGES AND OPPORTUNITIES OF WOMEN ENTERPRENEURS IN JIMMA

TOWN (CASE STUDY ON MICRO AND SMAII SCAL ENTERPRISE)

A RESEARCH PAPER SUBMITTED TO DEPARTMENT OF

MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR BACHELOR OF ART DEGREE IN MANAGEMENT

BY:-ABUBEKIR BAYE

ADVISOR:-WUBESHET MENGESHA(MBA)

JIMMA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

MAY, 2016

JIMMA, ETHIOPIA
ACKNOWLEDGEMENT
First and for most I would like to thank almighty Allah and my family for giving me the strength
to bring my longtime dream and effort in the reality.

Secondly, I would like to extend my most profound gratitude and sincere appreciation to my
advisor Wubeshet Mengesha(MBA), who consistent advice and guidance were invaluable to
competent of this research paper. Finally, I would like to thanks all my friends who support me
financially and by giving different opinions regarding to the research.
Abstract
The main purpose of this study was to identify the most significant problem that women
entrepreneurs face, and to provide how it can be solved by themselves and by governmental and
non-governmental bodies within jimma town. These issues were viewed from the women
entrepreneurs in micro and small scale enterprises.
Women’s entrepreneurial activities was occupied by many problems which include financial
problems, loan and credit problems, social and family problems, cooperation problems,
materials or resource problem and knowledge problems .Data for the research were collected
from women entrepreneurs through questionnaires and interview by taking sample 50
respondents from women entrepreneurs that are found in jimma town . Data analysis tools of
descriptive static used as to analysis the data depending on source of data. We recommend that
both the governmental and non-governmental institutions should take corrective action and
initiate the women’s to overcome the problem and ensure our countries development.
 CHAPTER ONE

1. INTRODUCTION

1.1. Background of the study

Entrepreneurship is one aspect of development which may possibly affect the economic status of
a given country. Entrepreneurship is a process of creating something which is new with value by
devoting time and effort.(Histrich and Peters, 2002) ll

Ethiopia in the last twenty years has been victimized in drought, famine and war. This leads the
country to have high economic depreciation. This, according to many local historians, may be
attributed to different factors of those factors; one may be lack of entrepreneurial development in
the country. This is one or another way will, perhaps be the exclusion of women in the economic
process. This is true in our country, Ethiopia for the fact that women's were discriminated in the
past. Thinking about the women’s previous oppression and challenges the present government of
Ethiopia providing affirmative action to make women active participants in economic, political
and social aspects of the country. One of the actions taken by the government is increasing the
women entrepreneurs in small business enterprise. However, it may not to possible to say with
confidence that women’s are totally participated in all aspect of the country. Still, there are many
challenges that women face. These challenges may be due to the different reasons such as, lack
of motivation, low work and employment opportunities and discrimination.

Regarding this, we discriminate between people in many aspects of our life and work. This
selection process in particular directly discriminates between people in order to offer the reward
of a job to one but not to the others. The effects of this, according to these scholars, can be seen
in the employment area. As this is inextricably linked with discrimination in the rest of society,
disadvantage groups, who have already been identified, are women people from other racial
backgrounds, disabled groups and other people. This implies that women are among those
groups who were discriminated.(Thomason.G; 1998 a text book of HRM).

The government of Ethiopia has also positively discriminated women for they were oppressed in
the past. However the treatments that have been made by the government of Ethiopia are not
absolutely effective in that there are still challenges women faces when they participate in
different scholars. Thus, these challenges would better investigate so as to enhance women’s
opportunities in participating in different entrepreneurial undertakings.

1.2 Statement of the problem

Too often in the past, the traditional or stereotypical attitude of management and supervision was
essentially protective (Urlcher, 1999). According to this scholar, women generally found
themselves restricted to some secretarial or clerical routines in the office or some other task in
home. From this it is possible to depict that women’s participation in economic, political& social
aspects in general and in managerial positions in particular, was low in the past. This may affect
women’s role in development process. It is glorious fact that women are the member of wider
society. If it is so, they need to get equal opportunities in any economic or any other aspects.

The main problems that were studied under the topic include the women’s entrepreneurs’
challenges in their micro and small enterprises. Of these problems, financial problems,
inaccessibility for credit, some social and family problems, material problems, cooperation
problems and lack of training opportunities, were the commonly observed problems. And also
the government and other non-governmental organization have little contributions for them. The
intention to do this study is; the achievement of social development goal is largely depending on
level of women’s participation. So as one citizen of Ethiopian the researcher contributes his own
recommendations by studying the Jimma town women entrepreneurs challenge.

1.3 Research Questions

Based on the aforementioned objectives, this study attempts to answer the following research
questions

1. What are the challenges women entrepreneurs in Jimma town small enterprise face?

2. What opportunities of women entrepreneurs in Jimma small enterprises have?

3. What is the government contribution for women entrepreneurs in small enterprise in

jimma town?
1.4Objectives of the study

1.4.1 General objectives

The main objective of this study is to identify the challenges & opportunities of women
entrepreneurs in Jimma town.

1.4.2 Specific objectives

 To examine the roles of women entrepreneurs in economic development.

 To assess the contributions of the government in improving women entrepreneurs.
 To identify the major challenges women entrepreneurs in Jimma small enterprise face.
 To investigate the possible opportunities women entrepreneurs in Jimma small enterprise
have.

1.5Significance of the study

This study has significant contributions for women entrepreneurs in the country in general & for
women entrepreneurs in Jimma small enterprise in particular. The result of this study may help
the women entrepreneurs in providing some idea about their roles in the economy & to take risks
in working enterprises. The study will also be significant for them to enhance their performance
& capacities. It may also be important in making women entrepreneurs more motivated &
responsible for performing entrepreneurial activities. Furthermore, the study may help the
government to consider the challenges women entrepreneurs face & to alleviate those challenges
by using different mechanisms. Eventually, this study can serve as a spring board for other
researchers to conduct other research in the area.

1.6 Scope of the study

As the topic indicates, the study was aimed at assessing the challenges & opportunities of women
entrepreneurs in Jimma small & micro enterprises with this, the challenges the entrepreneurs
face, the roles they contribute for the economic development, & the opportunities they may have
to alleviate the challenges will be assessed.
1.7 Limitation of the study

The main concern of this research focuses on the women entrepreneur activities & associated
problems they face in Jimma. However, due to time, cost & other constraints was difficult to
investigate all necessary information that enable to compete the research, & lack of appropriate
skills & knowledge in subject area.

1.8 Organize of the paper

Chapter one, background of the study, statement of the problem, objective of the study,
significance of the study, scope of the study & limitation of the study.

Chapter two, review of literature

Chapter three, methodology of the study

Chapter four, finding, discussion and analysis

Chapter five, conclusion, recommendation, reference & appendix

 CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

2.1. Definition of entrepreneur

Different scholars as different time define “entrepreneur” in many ways. The Longman
dictionary, for example, defined entrepreneur as one who organizes, manages & assumes the risk
of a business. On the other hand entrepreneurs defined as the head of the firm & coordinate the
factors of production, introduce new methods, processes & product & create opportunities for
economic growth, bear the risk connected with his or activities & enjoy power & high status in
capitalist market societies. This scholar, still define entrepreneur as a process of creating
something which is new with value by devoting time & effort with the necessary commitment to
achieve the objectives, through the above schools had different definitions for the term
“entrepreneurs”, there seems to have a common idea among these scholars. This means that the
concept of entrepreneurs has a direct implication to designate leadership in business & overlaps
with the others.(Smelser&Baltes, 2001).

However, there is no agreed up on definition of entrepreneurship. He claimed that founders &

managers age a highly heterogeneous group that defines a common definition. Probably, the best
strategy, according to Ostrom is to use a behavioral definition because it does not make any
further assumption of success, growth or failure.(Ostrom, 2001).

In general, entrepreneur can be viewed in different ways through a common idea could be taken
from the scholars.

2.2. Women and entrepreneurship

Women entrepreneurs play a significant role to the unprecedented rate of growth of the small &
medium enterprise (SMEs) & indirectly to the economy of Ethiopia. However, many women
turn to micro enterprise because they are essentially marginalized in labor force & unable to find
employment alternatives, in effect, they are driven to entrepreneurial activities out of necessity
(Stevenson & St-onge, 2005).
These scholars also suggested that women’s lack of mobility (due to their large families &
household responsibilities), coupled with their lack of ability to secure proper operating premises
means they are often home based & this prevents them from seeking out markets, information on
better economic opportunities & business assistance. From this it could be understood that
through women tend to engage in entrepreneurial activities, they will face some financial & other
social problems. However, to faster the growth & development of women entrepreneurs, many
things are needed. The first thing, according to Stevenson & St-onge(2005) is that women have
to be aware of the entrepreneurship option & motivated to explore it; have access to
opportunities to gain the knowledge & skill necessary to start & grow a viable enterprise; be
exposed to network of other women entrepreneurs to learn from their experiences & gain moral
support & encouragement; have access to information & professional business development
services to help develop their management & production capacity & be recognized for their
achievements, both individually & collectively.

Previously, the world of business management as Symons (1988) noted has long been the
domain of men yet, to increase & show the roles of women entrepreneurs in the economic
development, there has to be a considerable insight for women entrepreneurs.

Regarding the situation & status of women entrepreneurs, he described people’s traditional
thinking as:

People are often hesitant to behalves that women can actually build a business on her own; a
frequent assumption is that her male advisors are really running the show. In dead, establishing
credibility is the Achilles heel of business women in general. (Symons,1988).

As it could be depicted from the above scholar’s idea, women were thought of that they were not
able to run a business. However, it seemed to be more traditional thought.

Some studies show that women-owned businesses are no more likely to file than men-owned.

2.3. Women and micro and small enterprises

According to Stevenson & St-onge (2005), the Ethiopian government released the country’s first
micro & small enterprise development strategy in November 1997 the primary objective of the
national strategy frame is to create an enabling environment for small & micro enterprise.
Specifically, the objectives are to:

 Facilitate economic growth & bring about equitable development.

 Create long term jobs.
 Strengthen cooperation between MSE (to jointly address hindering obstacles,
take up opportunities & build collective efficiency).
 Provide the basis for medium & large scale enterprise.
 Promote exports
 Balance preferential treatment between MSEs & large enterprises.

The government of Ethiopia has taken a number of to change the regulatory environment for
MSEs. Thus, it is though the inclusion of women entrepreneurs that the aforementioned
objectives could be realized.(Stevenson & St-onge, 2005)

2.3.1. Micro and small enterprises defined

Micro& small enterprises are a special focus of the government, given that they comprise the
largest share of total enterprise & employment in the non-agricultural sector.

Micro & small enterprises are enterprises by which income can be created & employment
opportunity will be available. So, poverty will be reduced.

Enterprises in MSE are defined both in terms of paid up capital & number of workers.

Enterprises may be of:

A) Micro-enterprises: These enterprises are those business enterprises with a paid-up capital of
less than 20,000 & excluding high tech consultancy firms & other technology establishments.

B) Small enterprises: These enterprises have a paid-up capital of above 20,000 and not exceeding
birr 500,000 and excluding high tech consultancy firm and other technology establishment.

C) Large and medium enterprise: Large and medium enterprises are enterprise with more than
birr 500,000 in paid-up capital
Considering the above definition of enterprises, the researcher will focus on women
entrepreneurs in small and micro trading industry.

The government of Ethiopia is drafted its first micro and small enterprise development strategy
in 1997. In this case, the government is in the process of taking appropriate macro-economic
actions to support the development of the private sectors, including many measures to support
the development of small enterprise.(Stevenson and St-onge, 2005)

2.3.2. Constraints facing the MSE sector

The constraints facing MSEs in most developing economies are similar :(Stevenson and St-onge,
2005).

These constraints include the following:

 Lack of access to markets, business, information’s.

 Unfavorable legal and regulatory environments and in some cases, discriminatory
regulatory practices.
 Lack of business premises (at affordable rent).
 Low ability to acquire skill and managerial expertise.
 Low access to appropriate technology and
 Poor access to quality business infrastructure.

Ethiopian MSEs are confronted by many of these problems. The major obstacles experienced by
small scale manufacturing industries where the irregular and erratic supply of raw materials and
shortage of suitable working premises.

The problem of shortage of raw materials, lack of working capital and effective marketing
practices faced by small scale manufacturing industries result in the failure of these businesses to
expand.
2.4. The state, challenges, and opportunities of women’s enterprise in Ethiopia

2.4.1. The state of women’s enterprise in Ethiopia

Women’s enterprises in Ethiopia are not many in number as compared to man’s enterprise. Ming
(2008) argues that many women turn to micro enterprises because they are essentially
marginalized in the labor force and unable to find an employment alternative; that is in effect,
they are driven to entrepreneurial activity out of necessity. Ming (2008) citing Zewde and
associates (2002) claimed that the results of the previous research studies of women
entrepreneurs in Ethiopia showed that women were described as functioning with a male
dominated traditional society. While it is true that predominant image of the Ethiopia women
entrepreneur is one of poor women trying to survive. These women believe that they are the most
neglected category of women entrepreneurs because they do not have institutional credit or other
support.(Ming, 2008)

In a nut shell, as it is evidenced from the above mentioned scholars, women’s enterprise were not
be mainly in number due to several reasons, such as male dominated traditions, domestic factors,
cultural and other factors. However, it is possible for women to make transition from a macro to
smaller enterprise under the right circumstances.

2.4.2. The challenge of women entrepreneurs in small enterprises

Many scholars suggested that, women entrepreneurs face several challenges in developing their
business. Ming (2008), for instance, explains financial barriers as one challenge that women
enterprise face.

Much of the studies conducted in1980’s, according to Ming (2000) identified business specific to
women entrepreneurs. These include start-up funds, financial management of effective marketing
and advertising. The other serious obstacle women entrepreneurs’ face is discrimination. They
suffer from the banking and the banking committee.

Lack of training opportunities can also be the other challenge women entrepreneurs’ face. In this
case they are unaware of training opportunities. Efforts are thus; need to increase the level of
awareness among women entrepreneurs of existing training opportunities.
Furthermore, the scholars noted that for growth oriented women entrepreneurs in their study, the
biggest obstacles faced in developing their businesses were;

1) Lack of working capital

2) Lack of management skill
3) Problems of finding work spaces and sales outlets
4) Lack of confidence to risks in business and other related challenges

Women are also disadvantaged in terms of access to training and even most entrepreneurship
training program is to general in scope and does not offer a growth strategy orientation.

Therefore, women entrepreneurs may face the offer mentioned challenges, yet, we need to find
ways by which such challenges could be reduced. (Stevenson and St-Onge, 2005)

2.4.3. Opportunities for women entrepreneurs in small and micro enterprises.

Women entrepreneurs in small and micro enterprises may face certain obstacles. But, it would be
possible to at least come up with some measures to reduce the challenge. These opportunities are
those which may help overcome the problems. These opportunities could be seen against the
obstacles.

Though the SME promotion program could be gender neutral, additional support and services
should be made available to women in view of additional constraints they face, particularly the
dual role they play in running the business while at the same time taking care of their
households.

Thus, the government should think of an effective mechanism to support for women
entrepreneurs towards the program planed for them.

Moreover, the government should invest more on the necessary infrastructure to make E-
commerce possible to involve them in.

Additionally, more training opportunities for women entrepreneurs should be provided by

engaging successful women entrepreneur as trainers.
(Stevenson and St-Onge, 2005), listed the following points to reduce women entrepreneurs’
challenges in small and micro enterprises. These are listed as follows.

2.4.3.1. Providing credit services for women from suppliers

Since one of the challenges women entrepreneurs’ face will run a business is lack of money, the
government will give women a credit service so that they can run their own business. The
government will also open new enterprise for women. Hence, this measure will help women
entrepreneurs. The government will expand different enterprises where people (women) work in.

2.4.3.2. Mapping the components of enabling environment for growth oriented enterprises

Many thing are needed faster the growth and development of women entrepreneurs. First, they
have to be motivated. They need to have the access to opportunities to gain moral support and
encouragement. Donor agencies and NGOs may help women entrepreneurs improve their
performance.

2.4.3.3. Promotion of entrepreneurship

The objective of promotion is to create awareness of the enterprise as an attractive employment

option among women and to raise the profile of women entrepreneurs as credible role models to
others.(Steven and St-Onge, 2005)

2.4.3.4. Women access to micro and other form of financing

Women often start business with their own money or money borrowed from family or friends
who have little access to other forms of credit.

2.4.3.5. The impact of micro finance

Micro finance has a good impact on poverty eradication to economic development. They are
intended to increase incomes, contribute individual and household livelihood security, and
change social relations.
2.5. Training and skill development

The existing training network has considerable strength in terms of quality programs and
materials but it looks capacity and outreach. A training of women entrepreneurs includes:

 Business opportunity seminars

 Augmented training in marketing promotion skills on trade affairs
 Workshops on improving product quality
 Training on dealing on credit institutions
 Expand the Southern region women facilitator.

2.6. Women Entrepreneur Members

The organization is helpful for improving women entrepreneurs. Generally, all the
aforementioned institutions help women entrepreneurs increase the quality.
 CHAPTER THREE

3. METHODOLOGY OF THE STUDY

3.1 Research design

The study on assessment of challenges and opportunities of women entrepreneurs in micro and
small scale enterprises on Jimma town and the researcher was used descriptive type of research.

3.2. Description of the population

The target population of the study was women’s that are engaged in small scale enterprise
activities and the researcher was used purposive sampling technique.

3.3. Source of data

The collect data, both primary and secondary sources were employed. The primary source of
data was collected through interview and questionnaire, whereas the secondary source was
collected from different documents, books, journals and articles.

3.4. Target population

The target population of the study was women entrepreneurs that are found in Jimma town. The
total population is 150. The information of the data was collected from 50 respondents by using
purposive sampling technique.

3.5. Sample size determination

The sample size focused on Jimma town women entrepreneurs. And the researcher selected 50
individual women entrepreneurs.

3.6. Sampling Techniques

To collect the relevant information, the researcher used purposive sampling technique. In this
case, the women entrepreneurs in Jimma small and micro enterprise are selected. Because the
researcher believe that women entrepreneurs provide relevant and sufficient information about
the challenge and opportunities of women entrepreneurs.
3.7. Data collection methods

The primary data have been collected from respondents using interview and questionnaire;
whereas secondary sources were collected from different, books and documents. Information
from the interview and from questionnaire was about the challenges of women entrepreneurs,
and their role in the country economy.

3.8. Method of data analysis

The data gathered from the interview was analyzed qualitatively, whereas, the data gained from
the questionnaire was analyzed quantitatively mainly of in the percent and numbers.

3.9. Data collection procedure

Before doing anything else, the researcher had first got permission from the respondents. Once
the researcher made the decision to use an interview and questionnaire, a schedule for interview
and questionnaire had been constructed. Then, the questionnaire was administrated for the
respondent. After the questionnaire is collected the interview was held finally, the data gained
from the interview and questionnaire were analyzed and interpreted to draw a conclusion.
 CHAPTER FOUR

4. FINDINGS, DISCUSSION AND ANALYSIS

4.1. Discussion

Regarding the roles of women, the challenges, the government’s contributions and the
opportunities of women entrepreneurs, the results revealed that women entrepreneurs can
contribute a lot for the development of the country as they are part of the wider community
results regarding the challenges that women entrepreneurs face, it could be understand from the
questionnaire that women have the challenges to finance problems lack of capital resources,
social problems(family), cooperation problems and lack of land to start their own business, and
other related challenges have been identified by majority of the respondents. Regarding to the
other research question, majority of the respondents noted that women have some opportunities
to run their enterprises effectively. These included the government is in some extent helping
them, women entrepreneur members may help them strength their cooperation. The regional
state is also helping them in many ways though it is not satisfactory. The responses also revealed
that the government included or emphasized women in its policy. The government is also
providing credits and loan for women to establish their own enterprises. But, the problem here is
about the fact that governments help or contribution is not satisfactory. These in turn lead women
entrepreneurs to face some challenges. Therefore, the four research questions have been
answered in this section to make it clear, women have many roles to play for the development of
the country as they are part of the wider society. Though it is not satisfactory, the regional states
in particular and the government in general is contributing for women entrepreneurs in terms of
credit, loan, finance, area (setting). The findings of this study also revealed that women
entrepreneurs face many challenges. These challenges as to the majority of the respondents
include, lack of finance, cooperation problem, land area problems, family problem, etc. And for
women to reduce the challenges they face, they have some opportunities such as the
governments support, the establishment of women entrepreneur’s members, and some other
opportunities.
4.2. Findings

Women entrepreneurs in the MSEs have respond to the questions forwarded for them as far as
their knowledge and experience is concerned. The questionnaire was distributed for 50 women
entrepreneurs and the interview was also conducted from the women entrepreneurs. The
researcher is thus, going to present the findings as follows.

Women entrepreneurs responses to the questionnaire semi structured questionnaire were

distributed for women entrepreneurs. The questionnaires had both open ended and close ended
questions, have been analyzed qualitatively, whereas the closes ended once have been analyzed
quantitatively. Both of them have been analyzed in the next section.

Table 4.1 government policy

Alternatives
Item number 1 Yes No
No. % No. %
Are women entrepreneurs given special 34 68 16 32
attention by government policies?
Source: field survey through questionnaire, 2016.

As its depicted in the above table 68% of women entrepreneurs noted that the government gives
special attention for women entrepreneurs in its policy. Only 32% of the respondents said that
the government doesn’t give special attention for women entrepreneurs.

So, here it is possible to understand that majority of the respondent to this item. This is to mean
that the emphasis given by the government to women entrepreneurs has positively accepted by
the majority of the respondent.
Table4.2, advertisement of women entrepreneur

Item number 2 Alternatives

Yes No
No. % No. %
Is there mechanism for advocating the interest
and concerns of women entrepreneurs and their 35 70 15 30
Enterprise among relevant government
departments?
Source: field survey through questionnaire, 2016.

The result in the above table shows that 70% of the respondent started that the government and
other bodies are contributing a lot in promoting women entrepreneurs and enterprise. The result
here confirmed with Stevenson and St-Onge (2005) ideas which states that the government
should think of an effective mechanism to get support or women entrepreneurs towards the
program planned for them.

From this, we can understand that majority of the respondents have positive idea about the act of
advertising issues about women entrepreneurs and their enterprises by government departments.
But 30% of the women entrepreneurs in this study stillresponded negatively to this item. In other
words, these respondents said that the government does not advertise issue about women
entrepreneurs. This indicated that still the government has to improve and encourage women
entrepreneurs because these 30% of the respondent have negatively responded to the
advertisement and encouragement by the government.
Table4.3. Source of Finance

Alternatives
Yes No
Item number 3 No. % No. %
Do women entrepreneurs have equal access to
source of financing for the startup of new 21 42 29 58
enterprise?
Source: field survey through questionnaire, 2016.

Regarding item number 3 the result from the above table shows that the majority of the
respondents (58%) noted that women entrepreneurs do not have equal access to sources of
finance for startup of new enterprises. This can be taken as the challenge women entrepreneurs’
face.

When they start a new enterprise this is confirmed with what Ming (2000) identified as a
challenge women entrepreneurs face. He suggested that women entrepreneurs face goal business
challenges, such as start-up funds, financial management of effective marketing and advertising.
The interview response also revealed that women entrepreneurs face financial, place and
knowledge related problems.

Therefore the majority of the respondents replied that they do not have equal access to financing
for startupof the enterprise so, there seems to have a problem as to the majority of the
respondents. It besides from interview response it indicates that the government is contributing a
lot for women entrepreneurs so as to build their capacity.
Table4.4. Special financing credit access

Alternatives
Yes No
Item number 4
No. % No. %
Do special financing programs exist to help
overcome the barrier women face in accessing 39 78 11 22
credit (e.g., lack of collateral……….)
Source: field survey through questionnaire.2016.

The result in the above table shows that 78% of the respondents noted that there are special
financing programs exist to help overcome the barriers women face in accessing credit.
Regarding this item, the interview response and the respondents response in the open ended
questions revealed that through they are not satisfactory, there are some financial programs to
help women entrepreneurs overcome the barriers they face in accessing credit.

Table 4.5 accessing finance lending limit

Alternatives

Yes No
Item number 5
No. % No. %

Are women able to access financing beyond 20 40 30 60

micro finance lending limit?
Source: field survey through questionnaire, 2016.

In the above table 60% of the respondents said that women are not able to access financing
beyond the micro financing lending limit. This means that they are limited to access their finance
beyond their micro finance lending limit.

Here, as far as the response of the majority of the respondents concerned, women are not able to
access their finance beyond the micro financing lending limit. This can be taken as a problem
because women entrepreneurs have to the access to finance.
Table 4.6 Source of finance development

Alternatives

Yes No
Item number 6
No. % No. %

Are there enough sources and types of financing 22 44 28 56

available to meet the needs of women
entrepreneurs at each stage of development?
Source: field survey though questionnaire, 2016.

From the above table, it could be understand that 56% of the respondents respond there are not
enough sources and types of financing available to meet the needs of women entrepreneurs at
each stage of development. The rest of the respondents (44%) on the other hand, noted that there
are enough sources available for women entrepreneurs. Thus, the highest number of the
respondents claimed that there are problems in terms of the availability of service and finance.
The interviewee suggested that in some extent, women entrepreneurs can get financial support to
strength their members. But, as there are many problems and challenger it could not be solved
once. Thus, as far as the regions limited resources are concerned, it count help women
entrepreneurs too much. This interviewee then suggested much has to be done to support women
entrepreneurs so as to increase their participation in the development process of the country.
Table 4.7 Access of information

Alternatives

Yes No
Item number 7
No. % No. %

Are efforts made to ensure that women have the access 24 48 26 52

to information about all available sources and types of
financing used?
Source: field survey through questionnaire, 2016.

As it is indicated in the above table 52% of the participants responded that efforts are not made
to ensure that women have the access to information about the available sources and types of
financing. Thus, this implies almost most of the respondents dissatisfied with the less efforts
made to ensure that women have the access to information about the available sources and
finance of these respondents.48% responded positively to this question. Therefore, this shows
that though the efforts are not as such observable. Some respondents responded as some efforts
are made.

In addition, the respondents explained the reasons why they said yes. For the above question,
their response show that women entrepreneurs need therefore, better organized into women
entrepreneurs helped to identify higher-potential business opportunities, develop markets or their
products improve product qualities and marketing practice good financial management.

Here, the interview has noted that Medias play a role in motivation those who are reluctant to do
their task.
Table 4.8 Adequate training opportunity

Alternatives

Yes No
Item number 9
No. % No. %

Do women entrepreneurs have adequate access to 16 32 34 68

entrepreneurial training opportunities?
Source: field survey through questionnaire, 2016.

For item number 9, response that women entrepreneurs do not have the access to get adequate
entrepreneurial training. Lower number of respondents responded positively to this question.

Regarding the access to entrepreneurial training majority of respondent (68%) noted that women
entrepreneur do not have the access to entrepreneur training. Only 32% of the responded
respondents viewed that training opportunities are sufficient for women.

Table 4.9 Training program by government

Alternatives

Yes No
Item number 10
No. % No. %

Are efforts made to recruit women for entrepreneurial 16 32 34 68

training program by government and non-
governmental organizations?
Source: field survey through questionnaire, 2016.

These respondents 68% noted that governmental and non-governmental organizations do not
conduct training for women entrepreneurs and do not set different training programs. On the
other hand, these respondents said that women entrepreneurs in Oromia region, particularly in
jimma town do not get sufficient support by the region.
Table 4.10 Entrepreneur joined together members

Alternatives

Yes No
Item number 11
No. % No. %

Have women entrepreneurs joined together to form 32 64 18 36

their own members?
Source: field survey through questionnaire, 2016.

The respondents, on the item number 11, their responses shows that women, entrepreneurs joined
together to form their own members, for this, 64% of the respondents positively responded to
this item.

Table 4.11 Opportunity of women entrepreneur exchange experience

Alternatives

Yes No
Item number 12
No. % No. %

Are there opportunities for women entrepreneurs to

exchange good practice and learn from each other’s’ 39 78 11 22
experience?

Source: field survey through questionnaire, 2016.

The result in the above table shows, that 78% responded positively to their questions. This is to
mean that the respondents stated that women entrepreneurs have the access to share experiences
among each other.
Table4.12. Financially support by regional state

Alternatives
Yes No
Item number 13 No. % No. %
Are women entrepreneurs financially supported by 19 38 31 62
the regional state?
Source: field survey through questionnaire, 2016.

These respondents responded that 62% in Oromia region, particularly in Jimma do not get
sufficient support by the regional state.

The intervew indicates that the opportunities the regional government provides for women
entrepreneurs so as to encourage women’s participation and members include financial support,
material support and training but, this interviewee strongly suggested such supports are not
enough or adequate.

Table4.13. Regular mating for members

Alternatives
Yes No
Item number 14 No. % No. %
Do women entrepreneur organize regular meeting for 39 78 11 22
members so that they can learn from each other?
Source: field survey through questionnaire, 2016.

The respondents respond that 78 their response show that women entrepreneurs conduct require
meeting to discuss issue to gather through it as well improved. In addition the women
entrepreneurs also explained the main agenda of the meeting. This include about the main
agenda were about women and how to change their life, how to save money and about marketing
in general.

Table4.14. Sector that support women entrepreneur

 Alternatives
Yes No
Item number 16 No. % No. %
Is there any sector that support women entrepreneur 34 68 16 32
to promote women entrepreneurs?
Source: field survey through questionnaire, 2016.

The respondents respond that 68% of the respondent replied that there are sectors which can
support and strength women entrepreneurs. To these questions only 32% of the respondents
negatively responded to this question.

Table4.15. the member of women entrepreneurs

Alternatives
Yes No
Item number 17 No. % No. %
Are you the member of women entrepreneur? 39 78 11 22

Source: field survey through questionnaire, 2016.

The result from the above table show that 78% of the respondent also suggested that they are
member of women entrepreneurs.

The respondent responded that they get current benefits for instance, they get loan to start their
own business and they also get places to make their own establishment. Almost all of the
respondents responded that women entrepreneurs face many problems related with finance
establishment areas, family problems and cooperation problems. Of these challenges, problems
related to finance inaccessibility of materials, and cooperation problems are found to be the most
frequently available problems, as of the respondents.

The respondents who are not members of women member explained the reasons why they are
not members due to family problems, workloads and some extra tasks such as education.

The interview analysis

 1. Do you think that women entrepreneurs in Jimma have the access to run their own
business? Please explain?
The interview noted that there are many challenges or obstacles hinder women
entrepreneurs so as not to run their own business as from these, the interviewee mentioned
the problems, such as financial problems, problems of places to produce or to sell, lack of
training among entrepreneur and some social and attitudinal problems.
2. Do you think that women entrepreneurs in Jimma have some constraints which hinder
them not to run their business effectively? If yes, what are the challenges?
The interview noted that there are some constraints that hinder them not to run their
business effectively those are financial problems, loan problems, and land related
problems and so on.
3. Does the Oromia regional state adjust some opportunities for women entrepreneur to
enhance their participation? If yes, what are the opportunities?
There is some opportunities that the Oromia regional state adjust some of these are
government support by giving training and by establish women entrepreneur members.
4. Are women entrepreneurs financially strong to empower its members?
The interview also noted that they are not financially strong to empower its members
because of loan and credit problems.

CHAPTER FIVE

SUMMARY, CONCLUSION & RECOMMENDATIONS

5.1 Summary

The study was aimed at studying the challenges and opportunities of women entrepreneurs in
micro and small enterprises in Jimma. A total of 50 women entrepreneurs were taken to the
study. Both semi-structured questionnaire and semi-structured interview had been employed. 50
women entrepreneurs were asked to fill the questionnaire. The women entrepreneurs also
interviewed 4 questions. Then, the data was analyzed using quantitative and qualitative methods.
Based on this, the results show that though women entrepreneurs have a great role in
development process, less support is given by the government. In addition, regarding the
challenges women entrepreneurs face, it was found out that women face challenges, such as
financial problems, loan and credit problems, social and family problems, cooperation problems,
materials or resource problem and knowledge problems when they try to run their own business.
Regardless of these challenges, women have some opportunities. These include the government
as well as non-governmental organization can contribute a lot more over the women
entrepreneurs may help them to cooperate each other and to discuss their problems together.

5.2. Conclusion

Women entrepreneurs face many challenges in their micro and small enterprises. Of these
problems, financial problems, inaccessibility for credit, some social and family problems,
material problems, cooperation problems and lack of training opportunities, were the commonly
observed problems. But, the government and other non-governmental organization have little
contributions for them. In fact, women play a great role in the development process. All the
challenged can be minimized and women can have other opportunities. These opportunities are
the women entrepreneurs’ members should be promoted, the government helps them some
financial institutions can support them and training programs should extensively be adjusted.
Therefore, the government should support these women entrepreneurs to promote their capacity.

5.3. Recommendations

Based on the findings of the research, the researchers want to.

  The government of Ethiopia and the regional state of Oromia should motivate
morally, support financially, and give priority for them as they are part of the wider
community.
 The government and non-governmental organizations should provide the access to
credit and loans so that they can further expand their enterprises.
 The government should adjust some training programs for women entrepreneurs to
promote their contribution to the economy.
 The government should support the women entrepreneurs’ members and provide
finance for their enterprises.
 The government should create awareness among women entrepreneurs and conduct a
meeting to deal with them.
 Women entrepreneurs should give special emphasis for the members so as to
cooperate each other.
 Both governmental and non-governmental organizations should financially support
women enterprises to strength their mutual aims and objectives.
 Members of women entrepreneurs should participate in different business meetings
and share experiences.

Reference

 Haque,I& O’ Connor, B. (2002). J2 ME EnterpriseDevelopment. M & T books: New

York.
  Harzing,A. &Royssevelat. (2004). International Human Resources Management. SAGE

Publications. London.

 Ming,W. (2008). Improving women entrepreneurs’ inSmall and Medium Enterprises in

Malaysia:Policy Recommendation.Siong Chong.
 Smelser, N &Balter, P. (2002).Elsever. London.
 Stevenson, L. & St-Onge,A. (2005). Support for Growth Oriented Women Entrepreneurs
in Ethiopia African Development Bank (AFDB). Junis
 Thomason, G. (1998). A Textbook of Human Resource Management.Institute or Personal
Management.
 Torrington, D. &Haly, L.(1998).Human Resource Management. Prentice Hall

Urlacher, L.S .(1999). Small Business Entrepreneurship.An Ethics and human relations

Perspectives prentice Hall.

Appendix-1

Jimma University
College of Business and Economics

Department of Management

Questionnaire to be filled by women entrepreneurs in Jimma town

Dear women entrepreneurs and employees, I am currently conducting as study on ‘’the

challenges and opportunities of women entrepreneurs’’ in Jimma town.

Thus, I kindly request you to give me genuine information.

Instruction: - please read the questions carefully and put a tick (√ ) mark on the boxes
corresponding to the questions.

I, Questions about women entrepreneurs.

1. Are women entrepreneurs given special attention by government policies?

Yes No
2. Is there a mechanism for advocating the interests and concerns of women entrepreneurs and
their enterprises among relevant government departments?
Yes No
3. Do women entrepreneurs have equal access to sources of financing for the start up of new
enterprise?
Yes No
4. Do special financing programs exist to help overcome the barriers women face in increasing
credit (e.g. lack of collateral).
Yes No
5. Are women able to access financing beyond the micro finance lending limit?
Yes No

6. Are there enough sources and types of financing available to meet the needs of women’s
enterprises at each stage of development?
Yes No
7. Are efforts made to ensure that women have the access to information above all available
sources and types financing used?
Yes No
8. If your response in No.”7” yes, what were the efforts?
9. Do women entrepreneurs have adequate access to entrepreneurial training opportunities?
Yes No
10. Are efforts made to recruit women for entrepreneurial training programs by governmental
and non-governmental organizations?
Yes No
11. Have women entrepreneurs joined together to form fair own association?
Yes No
12. Are there opportunities for women entrepreneurs to exchange good practice and learn from
each other’s experience?
Yes No
13. Are women enterprises financially supported by the regional state?
Yes No
14. Do women entrepreneur regular meetings for members so that they can learn from each
other?
Yes No
15. If your responses in No.”14” yes, what is the agenda?
16. Is there any sector that support women entrepreneur to promote women entrepreneur?
Yes No
17. Are you the member of women entrepreneur members?
Yes No
18. If your response in No.”17” is Yes, what benefits did you get from it?
19. If your response in No.”17” is No, what are your reasons for not to be the members?

20. In general, what challenges do you face in the women entrepreneurs? You can select move
one.
 A. Financial credit problems
B. Land related problems
C. Loan problems
D. Work load (family problems)
E. Cooperation problems

Appendix-2
 II. Interview question

1. Do you think that women entrepreneurs in Jimma have the access to run their own
business? Please explain?
2. Do you think that women entrepreneurs in Jimma have some constraints which hinder
them not to run their business effectively? If yes, what are the challenges?
3. Does the Oromia regional state adjust some opportunities for women entrepreneur to
enhance their participation? If yes, what are the opportunities?
4. Are women entrepreneurs financially strong to empower its members?

DECLARATION
Under signed declare that this research paper is my original work and it has not been presented
for a degree program in any there University and all materials used for this research paper have
been duty acknowledged.

Name of student Signature

This student research paper has been submitted for examination with my approval as a
University.

Name of advisor Signature

Date