COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

A RESEARCH PAPER ON THE ASSESSMENT OF THE CHALLENGES OF

WOMEN ENTREPRENEURS (IN CASE OF BONGA TOWN IN KAYAKELA
KEBELE)

A RESEARCH PAPER SUBMITTED TO DEPARTMENT OF

MANAGEMENT IN PARTIAL FULLFILMENT OF THE REQUIREMENTS
FOR BACHELOR ART (BA) DEGREE IN MANAGEMENT

BY

ADDISU ZEREFA 0095/13

&

YESHI DAYU 1452/13

ADVISOR: MENGISTU AMESE (MBA)

APRIL 2024

BONGA, ETHIOPIA
 ACKNOWLEDGMENT

First of all, we would like to thank almighty God. Second we would like to express our sincere and
gratitude thank to our advisor Mengistu A. (MBA) for his technical and professional support. Next
we would like to express our heartfelt thanks to those who have not been mentioned their name but
contribute a lot to this achievement, especially for those who provide technical support in line with
the study.

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Table of Content

s
ACKNOWLEDGMENT.....................................................................................................................i
ABSTRACT........................................................................................................................................iv
CHAPTER ONE.................................................................................................................................1
INTRODUCTION..............................................................................................................................1
1.1. Background of the Study.........................................................................................................1
1.2. Statement of the problem........................................................................................................2
1.3. Research Questions.................................................................................................................3
1.4. Objectives of the study............................................................................................................3
1.4.1. General Objective............................................................................................................4
1.4.2. Specific Objectives..........................................................................................................4
1.5. Significance of the study.........................................................................................................4
1.6. Scope of the study...................................................................................................................4
1.7. Limitation of the study............................................................................................................4
1.8. Organization of the paper........................................................................................................5
CHAPTER TWO................................................................................................................................6
REVIEW OF RELATED LITERATURE.........................................................................................6
2.1. Definition of terms..................................................................................................................6
2.1.1. Entrepreneurship..............................................................................................................6
2.1.2. Barriers of entrepreneurship.............................................................................................7
2.1.3. Characteristics of Entrepreneurs......................................................................................7
2.1.4. Role of Entrepreneurs in Economic Development..........................................................8
2.1.5. Types of Entrepreneurs....................................................................................................9
2.1.6. Women Entrepreneurs....................................................................................................10
2.2. Empirical literature................................................................................................................14
CHAPTER THREE..........................................................................................................................15
RESEARCH METHODOLOGY.....................................................................................................15
3.1. Description of the Study Area...............................................................................................15

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3.2. Research design.....................................................................................................................15
3.3. Source of the data..................................................................................................................15
3.4. Target population of the study:.............................................................................................16
3.5. Sampling design and Sample Size.........................................................................................16
3.6. Data Collection and Instrument.............................................................................................17
3.7. Data Analysis Techniques.....................................................................................................18
CHAPTER FOUR............................................................................................................................19
DATA PRESENTATION, ANALYSIS AND INTREPRETATION..............................................19
CHAPTER FIVE..............................................................................................................................30
CONCLUSION AND RECOMMENDATION...............................................................................30
5.1. Conclusion.............................................................................................................................30
5.2. Recommendation...................................................................................................................31
REFERENCE...................................................................................................................................33
APPENDIX......................................................................................................................................36

iii
 ABSTRACT

The aim of this research paper is to identify the challenges of women entrepreneurs in Bonga town.
The target populations of the study were descriptive type of research design women entrepreneurs in
Bonga town. The researchers used descriptive type of research design to describe the challenges of
women entrepreneurs. Both primary and secondary source of data used to collect the relevant data
from the respondents. The researchers distributed 95 questionnaires from the total population of
2011 in order to collect the relevant data regarding to women entrepreneurs. The researchers used
stratified and simple random sampling techniques. Moreover, the researchers used both quantitative
and qualitative approach to analyze the data obtained from questionnaires. The data presented
through table and analyzed by frequency and percentage. We conclude that the majority of women
entrepreneurs are participated in service; they face financial, high government taxation and other
problems. We recommend for Bonga micro and small-scale enterprise office to encourage women
entrepreneurs by giving finance, training and changing their attitudes towards the business.

Key words: Women, entrepreneur, and challenges

iv
 CHAPTER ONE

INTRODUCTION

1.1. Background of the Study

Women’s constitute about 50% of the world population. In traditional societies, they are
continued to house performing household activities and hence women is generally called as
“house wife” or “homemaker”. But today in a modern society, they have moved out of four walls
of the house and are taking part in all areas of life. Now a day women are seen in academic,
politics, administration, software development, managing business enterprises, banking sector,
hospital, etc. The involvement of women in these activities generates good income to support
them and their families (Abdu, 2023)

Women are the backbone of the society and they are the basis of one’s country’s development.
Women entrepreneurs can be defined as a group of women who initiate, organize and run a
business enterprise (Baral, 2023)

In Ethiopia, the role of women in economic development has been tremendous through largely
unaccounted in agricultural sector. Women entrepreneurs are not provided with adequate policy
related strategic support from the national government. And the promotion of micro, small and
medium enterprises shall be one of the most important priority strategies for empowering
women, addressing poverty and unemployment in Ethiopia, (Khan, 2023)

Although women entrepreneurs contribute significantly to the national economy in terms of job
creation, skill development and alleviation of poverty among women and men, it argued that
small business enterprises operated by women entrepreneurs contributed for economic growth,
diversification, productivity, innovation and economic development (Khan R. U.-a.-s., 2023).

Agnation’s ability to generate a steady stream of business opportunities can only come about
when is people take in to entrepreneurial activities. Good entrepreneurs can create a strong

1
economy. They are an important aspect industrial growth and development of a nation. Women
entrepreneurship is increasingly recognized as an important factor for economic growth and
development in the world Khan (Cardella, 2023).

Interest in entrepreneurship in general and women entrepreneurship in particular has been on the
increase throughout the world with recognition that women play an important role in
entrepreneurial activity. This has led to an increase in the interest of the development of women
entrepreneur among policy makers, academics and practitioners, particularly on less developed
countries. Thus, there has been recognition that the creation of women entrepreneurship can play
an invaluable role in promoting growth and development and, thus, alleviate poverty (Khan R.
U., 2020).

Women entrepreneurship needs to be studied for two main reasons. The first reason is that
women entrepreneurship has been recognizing during the last decade as an important untapped
resource of economic growth. As an entrepreneur, women’s have to perform all the functions
involved in establishing an enterprise. These include idea generation and screening,
determination of objectives, project preparation, product analysis, and completion promotional
formalities, raising funds, procuring manpower and other resources and operation of business
(Khan R. U., 2020).

1.2. Statement of the problem

Women’s contribution to the socioeconomic well-being of their families and communities

through their entrepreneurial activity has received little attention from policymakers and
researchers. This has resulted in under estimation and underutilization of their potential on
socioeconomic contribution (source) (Skinner, 2023).

Particularly, women’s engagement in developing countries in entrepreneurship and their

experience in self-employment, their contribution to the creation of new business and ability to
create new jobs, and the consequent reduction in unemployment and poverty are largely invisible
in the literature (Brady, 2023).

2
Women dominate the micro and small enterprises in Ethiopia and their participation in the
private sector is incomparable to other African countries .women entrepreneurs play unimportant
role in the economy. Their products and services contribute to the growth of domestic product.
Women entrepreneurs also generate income and employment for many peoples. The extent and
form of women’s participation in the market is different from that of men entrepreneurs. The
reasons are strongly linked to the roles and position of women in Ethiopian society. Women
entrepreneurs in poor countries suffer from gender discrimination in society, under developed
enterprise culture; inadequate support system for business and under developed market and
infrastructure. Generally, women owned business are concentrated in the low growth segment,
face constraints such as poor access to finance, lack of business development service and
business network, limited exposure to business management experience and challenges of doing
business with household and family responsibility (Dewitt, 2023).

The initiating factors to conduct this research are to assess the challenges of women
entrepreneurs in Bonga town in kaya kela kebele. However, factors affect women entrepreneurs
are investigated many times in different part of Ethiopia, many researchers conducted this issue
but not one conducted with a specific objective of analyzing the problems of women
entrepreneurs in terms of personal and organizational related challenges in Bonga town in kaya
kela kebele, such as economic, social and cultural problems. This study was to identify the
challenge of women entrepreneurs in Bonga town in order to manage their own business
enterprise. Therefore, to address the above problem the following research question has
developed.

1.3. Research Questions

The study tries to answer the following questions:

1. What are the factors that hinder the productivity of women entrepreneurs?

2. What are the most serious problems that affect women entrepreneurs?

3. What are the incentives that encourage women participation in entrepreneurial activities?

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1.4. Objectives of the study

1.4.1. General Objective

The general objective of the study is to identify the challenges of women entrepreneurs in Bonga
town, Kaya kela kebele.

1.4.2. Specific Objectives

In light of the general objective of the study, the following specific objectives are the main
concern for this study.

1. To identify the factors that hinders the productivity of women entrepreneur.

2. To identify the most serious problem that affect women entrepreneurs in Bonga town in
kaya kela kebele.

3. To identify incentives that encourages women participation in entrepreneurial in activity

in Bonga town in Kaya kela kebele

1.5. Significance of the study

This study as served as an important for policy making that involves enhancing women
participation in entrepreneurial activities; it helps to identify their challenges and find the
solution to minimize these problems, and also serves as reference material for other research who
wants to conduct further study on the same topic.

1.6. Scope of the study

The study was geographically delimited to Bonga town; conceptually, it is limited to the
assessment of the challenge of women entrepreneurs and methodologically delimited to
descriptive type of research design.

1.7. Limitation of the study

4
 The researchers were faced many challenges from that some of the following will be relate to,
involuntariness of respondents to give information what the researchers need, but the researchers
overcome the challenge by searching different option. the language barrier could have provided
difficulty for the authors during the interviews, as well as when analyzing the possibility
that the interviews could have been less complicated and more straightforward if the authors and
the entrepreneurs would have to speak their native language. However, important to highlight is
that this is a limitation that would have been difficult to overcome, but still significant to mention
as a possible limitation of this study.

1.8. Organization of the paper

The study was structured in to five different sections starting with the introduction. Similarly,
background of the study, statement of the problem, objectives of the study, significance of the study,
limitations and organization of the paper was included in chapter one. Chapter two reviews both the
theoretical and empirical part of the study and work related to the research. The next chapter
(Chapter three) explained description of the study area, Research design, sampling techniques and
method of data analysis and concludes with explaining the references used. Then again, Chapter four
and five was included data analysis, presentation, and discussion, summary of major findings,
conclusion and recommendations.

5
 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1. Definition of terms

2.1.1. Entrepreneurship

Entrepreneurship is the dynamic process of creating incremental wealth. Individuals who assume
the major risk in terms of equity, time and career commitment to provide value for some product
or service create the wealth. The product or service may or may not be new or unique, but
(Busch, 2023).

Entrepreneurship is the process of creating something new with value by devoting the necessary
time and effort; assuming the accompanying financial, psychological and social risk and
uncertainties, and receiving the resulting rewards of monetary and personal satisfaction
(Vaquero, 2023).

This definition process stresses on four basic aspects of being an entrepreneur. First,
entrepreneurship involves creating process-creating something new of value. The creation has
value to the entrepreneur and value to the target group for which it is developed. This target
group can be:

 A market of organization buyers for business innovation,

 A hospitals, administration for a new admitting procedure and software,

 prospective students for a new course or even a collage of entrepreneurship,

 The constituency for a new service provided by anon profit agency and so on,

Second, entrepreneurship requires the decision of the necessary time and effort by entrepreneurs

6
and their associates. Only those going through the entrepreneurial process appreciate the
significant amount of time and effort it takes to create something new and make it operational.
As one new entrepreneur stated, “Though we may have worked as many hours in the office
while we will employee in industry, as an entrepreneur never stop thinking about the business".
The third part of the definition involves the rewards of being an entrepreneur. The most
important of these rewards is independence, followed by personal satisfaction, but monetary
reward also comes in to play. For some entrepreneurs, money becomes the indicators of the
degree of success achieved. Assuming the necessary risk and uncertainties is the final aspect of
the entrepreneurship. Because action takes place over time, and the feature is unknowable, action
is inherently uncertain (Panigrahi, 2020).

Entrepreneurs must decide to act even in the face of uncertainty. Therefore, entrepreneurs create
change through their entrepreneurial actions, where (Zayadin, 2023).

2.1.2. Barriers of entrepreneurship

The following are some of the barriers of entrepreneurship (Naidu,2008) such as: lack of capital,
lack of technical knowledge, economic business cycle, no availability of material and resource,
government regulation, obsolescence of technology or idea, unable and unpredictable market and
risk.

2.1.3. Characteristics of Entrepreneurs

A common characteristic of the entrepreneurs emphasizes such characteristics as a high need for
achievement, willingness to take moderate risks, strong self-confidence and innovation.

 Need for achievement: psychologists recognize that people differ in their need for
achievement. Individuals with a low need for achievement are those who seem to be
connected with their present status. On the other hand, individuals with high need for
achievement competes with some standard of excellence prefer to be personally
responsible for their own assigned tasks. Entrepreneurs are self-starters who appear to
others to be internally driven by a strong desire to compete, to pursue, and to attain

7
 challenging goals. High achievers tend to be moderate risk takers. They examine a
situation, determine how to increase the odd of winning, and then push ahead. As a
result (Omolawal, 2023).

 Team Building: the desire for independence autonomy does not prevent the
entrepreneur’s desire to build a. This shows that most of the respondents are engaged
in trade strong entrepreneurial team. Most successful entrepreneurs have highly
qualified, well-motivated teams that help to handle the ventures growth and
development. In fact although the entrepreneur may have the clearest vision of
where the firm is should be headed. The personal often more qualified to handle the
day to day implementation challenges.

 Willingness to take risks: the risks that entrepreneur takes in starting and operating
their own business are varied by investing their own money and assuming their
financial risk. If they secured jobs, they risk their carriers, the stress and time required
in standing and running, a business may also place their families at risk. Successful
entrepreneurs are not gamblers - they are risk takers. When they decide to participate
in a venture, they do so in every calculated carefully thought-out manner. They do
everything possible to get the odds in favor, and they often avoid taking unnecessary
risks.

 Self-confidence: an individual who possess self-confidence feel he or she can meet

the challenges that conform them. They have a complete knowledge over the type of
problems that might encounter. They must be think it is possible to eliminate
infeasible or not achieve the goal, always believe that things are simple.

 Independence: the desire for independence is a driving force behind contemporary

entrepreneurs. A frustration with a rigid bureaucratic system, combined with a sincere
commitment to make a difference, adds up to an independence personality trying to
accomplish takes of his or her way. This is not to say that entrepreneurs must make all
of the decisions; however, they do want authority to make the important ones.

8
 2.1.4. Role of Entrepreneurs in Economic Development

Role of entrepreneurs in economic development involves more than just increasing the output
and income; it involves in initiating and effecting the change in the structure of business or
society. This change gives way to growth and higher output that leads to higher profits.
Innovation plays very important role in economic growth both in developing new products or
service and stimulating idea of investment in new ventures .This new investment works on both
the demand and supply sides of growth. The new capital created expands the capacity for growth
on supply side and the resultant new spending brings new capacity and increased output on
demand (Dey, 2022).

In Spite of the importance of investment and innovation in the economic development of an area,
there is little awareness of the product evolution process. This is the process through which
innovation develops and commercializes through the entrepreneur's activity which in turn results
in economic growth. Entrepreneurs bridge the gap between science and the market place,
creating new enterprises and bring new products and services into the market. Those activities of
an entrepreneur significantly affect the economy of an area by building economic base and
providing jobs. In some areas entrepreneurs creates new product and new employment. Thus
entrepreneur thrusts impact and plays vital role both in overall economic development and
creating employment to people (Mohd Noor, 2023).

2.1.5. Types of Entrepreneurs

The term "Entrepreneur" is defined in variety of ways. It varies from country to country, time to
time and level of economic development. The word "Entrepreneur" is derived from the French
verb "Entrepreneur" which means “to undertake". French economist Richard Canutillo used the
word entrepreneur to business. Since the word entrepreneur is used to one who takes the risk of
stating new organization or business or introducing new idea, product, or service to society.

According to (Thurik A. R., 2023) An entrepreneur in an advanced economy is an individual

who introduces something new in the economy a method of production not yet tested by

9
experience in the branch of manufacture concerned, a product with which consumers are not yet
familiar, a new source of raw materials or of new markets and the life ". Accordingly to him the
functions of an entrepreneurship are:-introduction of new product, introduction of new methods
of production, development of new market and finding fresh source of raw materials and making
changes.

Cotillion defined entrepreneur as" The agent who buys factors of production at certain prices in
order to combine them in to a product with a view to selling it an uncertain prices in the future".
To summarizes an entrepreneur is the person who bears risk, units various factors production, to
explore the perceived opportunities in order to evoke demand, create wealth and employment.
The entrepreneurs have been broadly classified according to the type of business, motivation, age
and gender, and stages of development and so on.

Entrepreneurs according to business:-business entrepreneurs, trading entrepreneurs, industrial

entrepreneurs, corporate entrepreneurs and agricultural entrepreneurs. Entrepreneurs according to
motivation pure entrepreneur, induced entrepreneur, motivated entrepreneur and spontaneous
entrepreneur.

Entrepreneurs according to stage of development first generation entrepreneur, modern

entrepreneur and classical entrepreneur. Entrepreneurs according to age and gender:young
entrepreneur, old entrepreneur, male entrepreneur and female entrepreneur/ Women
entrepreneur.

2.1.6. Women Entrepreneurs

Women entrepreneurs may be defined as" a women or group of women who initiate, organize
and run a business enterprise". Government of India has defined women entrepreneur as, an
enterprise owned and controlled by a women having minimum financial participation of 51% at
the capital and giving at least 51% of employment generated in the enterprise to women ". This
definition is based on women participation in equity and employment of business enterprise. In
brief women entrepreneurs are those women who think of a business enterprise, initiate it,

10
organize and combine the factors of production, run the enterprise and under take the risk and
economic uncertainty involved in running the business (Khuan, 2023).

2.1.6.1. Function of Women Entrepreneurs

As an entrepreneur, a women had to perform all the functions involved in established an

enterprise. Some of them are listed below .

 Use of the resource: to start an enterprise, she needs the factor of production namely: land,
labor, capital and technology.

 Establish industrial enter reprise: Entrepreneurs main function is to establish and promote
the enterprise. She has to select the location of the enterprise and implement of the idea into
action.

 Manage the business: she has to manage the business. In order to manage the business, she
has to perform all function of management-planning, staffing coordinating, directing and
controlling. She has to organize workers, materials and other resources.

 Development of strategies: after starting the enterprise, a number of challenges, risks,

difficulties, problems tend to begin. To face them she has to develop strategies, play tactics
and will to overcome them.

 To assume risk and uncertainty: she has bear risk and uncertainty that emerge in the
enterprise. She should have good decision making capacity to take right decision at the right
time to suit a situation.

 To develop business and business decision: she has to page attention to business decision.
She has to take important decision about business for its development. For the business
development, she has to increase volume of production, market share, wealth.

 Motivation: she would motivate employees to achieve the targets by putting their full effort.

 Supervision and leadership: she should supervise and lead the people towards the goals.

11
 Exploration of the prospects of starting a new business: women entrepreneurs have to
explore all the prospects of starting a new business. It involved in searching for a new ideas,
product, technology, marketing, etc. She should be innovation and creative.

2.1.6.2. Problems of women entrepreneurs

In general problem faced by any entrepreneur, women face other problems like gender problem.
Some of the problem faced by women entrepreneur is presented here.

 Financial problem: women entrepreneurs suffer from shortage of finance in two ways: The
first one is, women generally do not have property on their names to use ad collateral
security for getting loans from external service like banks and other financial institution. The
second one is, some banks may face women not so credit worthy and discourage women
borrowers. The general belief is that they may leave the business at any time. Under such
circumstances, women entrepreneurs have to depend on their own funds or funds from
relatives and close friends.

 Lack of education: as per census, about of women are still illiterate in Ethiopia. In the
absence of qualitative education, women are not exposed to business tactics, technology,
management skill and function, market knowledge, financial management etc. Which are
very essential for any enterprise?

 Limited mobility: in Ethiopia, mobility of women is limited compared to me, due to various
reasons. Women working in night shifts, staying alone a room or return late in the night are
still problems in Ethiopia.

 Family ties: as per Ethiopian tradition, it is mainly the women who take care of children,
elders or family members in the family and kitchen. This problem is more with married
women. The total involvement of family leaves on time and energy to devote to business.
Support of family member especially husband is very essential for women to enter in to
business.

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 Scarcity of raw materials: most of the enterprises managed by women suffer because of
scarcity of raw materials and necessary inputs.

 Stiff competition: due to limited facilities and funds, enterprises managed by women face
stiff competition with man managed enterprises -such a competition sometimes leads to loss
and closure of women entrepreneurs' enterprise.

 Low risk bearing capacity: women in Ethiopia are generally not well educated and
economically no self-dependent. This leads to them to low risk bearing capacity while
running an enterprise. They are not very strong minded to bear risk.

 Social problem: women in Ethiopia lead operated life. They face social problems to come
out and start an enterprise. They face problems in the society.

 Male domination: male domination still prevail sin Ethiopian social culture. Though
government says equal right for female and male, in practice, women are given secondary
treatment compared to men. The male dominated Ethiopian society; women are not treated
equal to men; women are treated as worker in many sections of life.

2.1.6.3. Challenging Factor of Women Entrepreneurs

According to (Toan T. T., 2023) women are not different from men in entrepreneurial activities
and their desire to economic independence and personal self- fulfillment that a business
ownership brings. There is a hidden problem intends to be more difficult to women than for men.
It suggested that women entrepreneurs face certain obstacle that are common on women
entrepreneurs in general challenges such as lack of sufficient capital for entrepreneurial
activities, lack of managerial and technical training, lack of technological advancement, and lack
of best experience. (Toan, 2023).

According to (Toan T. T., 2023)in developing countries like our country Ethiopia, there are
many problems in relation to women entrepreneurs Many Ethiopian women entrepreneurs have
the Following challenges: cultural norm and attitude of society, bad perception of individuals

13
 towards women and social prejudice towards women. Despite the fact that females are important
economic and social agent in the society; the society attitude hinders indirectly women
entrepreneur's activities in business sector and other. A society hold a low esteem for women
business and other entrepreneurial activity and they perceive she is attributed low value not only
by men but also by women. Women entrepreneur skill has an important bearing for the work
experience. They acquire the type of business engaged in vocational education and training. It is
a means of facilitating the entry of women into higher level and wider range of jobs. Financial
factors, women always found in very small entries and small loan which are viewed as UN
profitable by the bank and financing institution since high administrative cost are associated,
women have difficulty in acquiring the major and critical resource. Most frequently, women
entrepreneurs do not have an easy access to responsive to women owned business due to size and
nature of business organizations. (Korinek, 2023).

2.2. Empirical literature

According to (Gebremariam, 2017), despite MSEs are one of the most important alternative sectors
for socioeconomic development in both developed and developing countries, and that they play
significant roles in the creations of employment opportunities, reduction of poverty and income
generation for urban dwellers, in Ethiopia it is less likely to come across women entrepreneurs or, if
any, most often them are participating in areas where they need limited capital such as service
delivery, and much less so in

Entrepreneurship seems as strategic and operational construct at first a glance, which makes it
possible to put in place the managerial strategies that was be conducted according to the attitude and
aptitude of the entrepreneur. The latter is likely to seize and successfully exploit the targeted
opportunity. Thus, this reformulation work makes it possible to describe the entrepreneurial
phenomenon. This section of the literature review provides a better understanding of the concepts
that constitute the necessary condition for the classic operation of the entrepreneurial approach
(Mustapha Achibane, 2020).

14
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1. Description of the Study Area

Bong town is the capital of southwestern Ethiopia peoples Regional State, in Kaffa zone distance
449 Km from Addis Ababa. Its astronomical location is 7º16'N Latitude and 36º14'E Longitude
(CAS 2017). The city receives 1,735–2,545 mm of rainfall per year, with minimum and maximum
temperatures ranging from 11.70 to 28.40°C and an average relative humidity of 73.39% (National
Meteorological Agency, unpublished data, 2020).

3.2. Research design

The researchers were employed descriptive type of research design to describe the challenges of
women entrepreneurs, because this type of research design help the researchers to describe the
current or existing situations of a particular issue or problems of women entrepreneurs.

3.3. Source of the data

The researchers were used both primary and secondary data source to collect relevant data about
women entrepreneurs in Bonga town (kaya kela kebele). Primary data was obtained by using
questionnaire and interview. Questionnaires were prepared based on questions regarding the
various aspects of the topic of the study. Questionnaires were used in such cases where the study
is very wide and direct observation not possible because of distance and time limitation.
Questionnaires also used to gather definite concert and better information concerning the
problems under the study. In interview, the researcher needs people and discuss the problematic
issue with them and during the courses of discussion, gather fact information. Secondary data
will obtain through reading written documents, text and relate journals as well as internet service.

15
The study will be conduct on women entrepreneurs, in Bonga town engage in their own business
activity.

3.4. Target population of the study:

According to Bonga micro and small-scale enterprise office, there are 2011 women
entrepreneurs in Bonga town who works in their business. They are working in five key
sectors, such as manufacturing, construction, service, urban agriculture and trade, and there are
96, 230, 980, 196 and 509 members in each sector respectively.

3.5. Sampling design and Sample Size

The researchers will be use stratified and simple random sampling technique. The reason for
using stratified sampling is that the population in which the sample is drawn by
heterogeneous. Therefore, it is important to classify in to homogeneous groups. Moreover, the
reason for using simple random sampling is simple to accomplish and provides the advantage of
speed of data collection and lower cost. The populations are divided in to five sectors and then
we use simple random sampling to give equal chance each stratum. From the target population of
2011 women are select randomly using the following formula:

n=N/1+N (e)2(Yamane,1967).

Where n=sample size

N=total population

e=sample error (10%)

n=2011/1+2011(0.1)2

n=95

The researchers use the following formula to determine stratified sample sizes:

16
 Ni=Ni*n/N (Baumann, 2006)

Where, Ni =sample of different

strata n=total sample size

N=total population strata

Ni=total population of single strata

I=order of stratum(1,2,3………)

The searchers use 5 samples from manufacturing, 11 from construction, 46 from service, 9 from
urban agriculture and 24 from trade.

Table 1 determine stratified sample sizes entrepreneur

No. Strata No of Proportion of Sample from each strata

entrepreneurs allocation
1 Manufacturing 96 96*95/2011 5
2 Construction 230 230*95/2011 11
3 Service 980 980*95/2011 46
4 Urban agriculture 196 196*95/2011 9
5 Trade 509 509*95/2011 24
Total 2011 95

3.6. Data Collection and Instrument

In collecting primary data, questionnaire and interview were used. The questionnaires have both
open ended and closed ended type, because open-ended helps respondents to express their idea
unlimited way and close ended provide actualize question to the respondents. The reason why
the researchers used questionnaire is due to the fact that large sample can be used and the

17
respondents can have adequate time to thinks over question and using depth of information or
data relevant to the subject matter or study. The questionnaire will be translating in to Amharic
for the convenience of data respondents.

3.7. Data Analysis Techniques

After the data was collected and organized, it was presented through table .Then the data was
analyzed qualitatively and quantitatively. The quantitative analyses are trough frequency and
percentage.

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 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTREPRETATION

This chapter deals with data presentation, analysis and interpretation of the results. The researchers
used questionnaires as a method of data collection tools. Hence, 95 questionnaires were distributed
to respondents and 87 of them were returned. The collected data presented through table and
analyzed by using frequency and percentage.

Table 2 background of respondents

No. Item Respondents

Frequency Percentage%
1 Age group
Below 20 years 17 20%
21-30 years 51 58%
31-40 years 19 22%
Above 40 years - -
Total 87 100%
2 Marital status
Single 55 63%
Married 18 20%
Divorced 14 17%
Total 87 100%
3 Educational level
Illiterate 6 7%
Primary and secondary 23 26%
Certificate 22 25%
Diploma 31 36%
Degree 3 4%
Above degree 2 2%

19
 Total 87 100%
4 What types of business activity are
you engaged?
Manufacturing 7 8.04%
Trade 21 24.14%
Services 44 50.57%
Urban agriculture 5 5.75%
Construction 10 11.5%
Total 87 100%

Source: own questionnaire, 2024

In the above table 2,item 1, of the 87 respondents, 17 (20%) fell within the age group of 20 years of
age or below , respondents aged between 21-30 years were 51 (58%) and 19 (22%) of respondents
were between 31-40 years. This shows that most of the respondents were within the age group of 21-
30, which are adults.

Based on the above table 2, item 2, of the 87 respondents who answered this question, 55 (63%) of
respondents were single, 18 (20%) of the respondents were married, and 14 (17%) the respondents
were divorced. This indicates that majority of the respondents are single.

Based on table 2, item 3, of the 87 respondents who answered this question, 6 (7%) of the
respondents were illiterate, 23 (26%) of the respondents have finished their elementary and
secondary school; 22 (25%) of the respondents are certificate; 31 (36%) of the respondents were
diploma holders; 3 (4%) of the respondents were graduated in degree; and 2 (2%) of the respondents
graduated above degree. This shows that majority of the respondents were diploma holders.

From table 2, item 4, of the 87 respondents, 7 (8.04%) of the respondents were engaged in
manufacturing; 21 (24.14%) of the respondents were engaged in trade; 45 (50.57%) of the
respondents were engaged in services; 5 (5.75%) of the respondents were engaged in urban
agriculture; and 10 (11.5%) of the respondents were engaged in construction. This shows that most
the respondents are engaged in services.

Table 3 the culture and attitude of the society towards the business

20
To what extent the culture and attitude of the Frequency Percentage %
society affect your business activity?
Very high 27 31%
High 34 39%
Medium 15 17%
Low 8 9%
Very low 3 4%
Total 87 100%

Source: own questionnaire, 2024

Based on table 3, of the 87 respondents, 27 (31%) of the respondents answered very high, 34 (39%)
of the respondents replied high, 15 (17%) of the respondents respond medium, 8 (9%) of the
respondents replied low and 3 (4%) the respondents replied very low. This indicates that the attitude
and culture of society towards the business are high.

Table 4 the demand and supply factor in the business

To what extent the demand and supply of the Frequency Percentage (%)
market affect your business?
Very high 7 8%
High 36 41%
Medium 25 29%
Low 19 22%
Very low - -
Total 87 100

Source: own questionnaire, 2024

In table 4, of the 87 respondents, 7 (8%) of the respondents respond very high, 36 (41%) of the
respondents replied high, 25 (29%) of the respondents replied medium, 19 (22%) of the respondents
replied low. This indicates that the demand and supply of the market affect the business highly.

Table 5 the financial problems, that hinders the business activity

To what extent the financial Frequency Percentage (%)

21
problems affect your
business?
Very high 43 49%
High 28 32%
Medium 12 14%
Low 3 4%
Very low 1 1%
Total 87 100%
To what extent you satisfied
with the financial access given
by
Very high 3 6%
High 5 10%
Medium 9 17%
Low 35 67
Very low 45 52%
Total 87 100%

Source: own questionnaire, 2024

Based on table 5, of the 87 respondents, 43 (49%) of the respondents respond very high, 28 (32%) of
the respondents replied high, 12 (14%) of the respondents respond medium, 3 (4%) of the
respondents replied low, and 1 (1%) of the respondents replied very low. This shows that the
financial problems affect their business very high.

In the above table 5, of the 87 respondents, 3 (6%) of the respondents replied very high, 5 (10%) of
the respondents replied high, 9 (17%) of the respondents replied medium, 35 (67%) of the
respondents replied low, and 45 (52%) of the respondents replied very low. This shows that the
financial access given by microfinance and other lending institution are very low.

In addition regarding the financial problem of women entrepreneur the manager asked what are
challenging factors of their business. The manager replied that; Lack of exchange sufficient
information between entrepreneurs, lack of quality education and training, unfavorable work place
and environment, lack of mental strength, lack of persistent nature, political instability, higher

22
production cost, poor infrastructure, lack of best experience and insufficient technological
advancement are factors affecting our business.

Table 6 marketing Problems that affect the business

To what extent the marketing problem, such as Frequency Percentage (%)

promotion and advertising
Very high 35 40%
High 27 31%
Medium 22 26%
Low 2 2%
Very low 1 1%
Total 87 100%

Source: own questionnaire, 2024

Based on table 6, of the 87 respondents, 35 (40%) of the respondents respond very high, 27 (31%) of
the respondents replied high, 22 (26%) of the respondents replied medium, 2 (2%) of the respondents
replied low, and 1 (1%) of the respondents replied very low. This indicates that the marketing
problems such as promotion and advertising affect the business very high.

Table 7 respondent’s attitude towards the business

What is your attitude towards the business Frequency Percentage (%)

activities?
Very good 3 3%
Good 8 10%
Medium 15 17%
Poor 32 37%
Very poor 29 33%
Total 87 100%

Source: own questionnaire, 2024

23
In table 7, of the 87 respondents, 3 (3%) of the respondents respond very good, 8 (10%) of the
respondents replied good, 15 (17%) of the respondents replied medium, 32 (37%) of the respondents
replied poor, and 29 (33%) of the respondents replied very poor. This indicates that the attitude of
respondents towards their business activities is good or majority of the respondents have poor
attitude towards the business activity.

Table 8 the government support to overcome the problem

To what extent the government supports you to Frequency Percentage (%)

overcome the problem?
Very high 4 5%
High 3 3%
Medium 21 24%
Low 41 47%
Very low 18 21%
Total 87 100%

Source: own questionnaire, 2024

Based on table 8, of the respondents, 4 (5%) of the respondents respond very high, 3 (3%) of the
respondents replied high, 21 (24%) of the respondents replied medium, 41 (47%) of the respondents
replied low, and 18 (21%) of the respondents replied very low. This shows that the support of the
government to overcome the problem is low.

Table 9 government restriction in your business and type of government restriction

Is the government restriction in your F r e q u e n c y Percentage

business?
Yes 48 55%
No 39 45%
Total 87 100%
What type of restriction?
Imposing tax 57 65%
Price controlling 30 35%

24
Unexpected change in price - -
Total 87 100

Source: own questionnaire 2024

It implies table 9, of the 87 respondents, 48 (55%) of the respondents respond there is government
restriction in business; and 39 (45%) of the respondents replied there is no government restriction in
the business. This table shows that there is government restriction in their business activity.

Based on table 9, of the 87 respondents, 57 (65%) of the respondents replied there is higher taxation;
and 30 (35%) of the respondents replied there is price controlling that restricts the business activity.
This indicates that the major government restriction in the business is imposing high tax.

Table 10 relationship with your business

To what extent do you have a positive F r e q u e n c y P e r c e n t a g e

relationship with your employee?
Very high 2 3%
High 6 7%
Medium 21 24%
Low 28 32%
Very low 30 34%
Total 87 100%

Source: own questionnaire, 2024

In table 10, of the 87 respondents, 2 (3%) of the respondents respond very high, 6 (7%) of the
respondents replied high, 21 (24%) of the respondents replied medium, 28 (32%) of the respondents
replied low, and 30 (34%) of the respondents replied very low. This table shows most of the
respondents replied there is very low relationship with their employees.

Table 11 availability of infrastructure

Adequate infrastructure is available: Frequency Percentage (%)

Strongly agree 4 5%
Agree 12 14%

25
Medium 16 18%
Disagree 37 42%
Strongly disagree 18 21%
Total 87 100%

Source: own questionnaire, 2024

Based on table 11, of the 87 respondents, 4 (5%) of the respondents replied strongly agree, 12 (14%)
of the respondents respond agree, 16 (18%) of the respondents replied medium, 37 (42%) of the
respondents replied disagree, and 18 (21%) of the respondents replied strongly disagree. This shows
majority of the respondents disagree with the availability of infrastructures.

Table 12 government policy in encouraging women entrepreneurs

How do you evaluate the government policy in Frequency Percentage (%)

encouraging women entrepreneurs?
Very good 5 6%
Good 12 14%
Medium 18 21%
Poor 29 33%
Very poor 23 26%
Total 87 100%

Source: own questionnaire, 2024

In the above table 12, of the 87 respondents, 5 (6%) of the respondents respond very good, 12 (14%)
of the respondents replied good, 18 (21%) of the respondents respond medium, 29 (33%) of the
respondents replied poor, and 23 (26%) of the respondents replied very poor. This indicates majority
of the respondents replied there is very poor government policy in encouraging women an
entrepreneur. In addition, regarding the government encourage women entrepreneurs the manager
asked that what are the facilities given by the local government to your business? And the manager
replied that; to give equal chance of business opportunity, provide financial support, source of
information and organized, product information, reservation product and working place.

26
Table 13 training given by the government related to entrepreneurial activity

Is the government providing training concerning related to Frequency Percentage (%)

entrepreneurial activity
Yes 52 60%
No 35 40%
Total 87 100%
If your answer yes in the above question number to what
extent does the provided training change your business?
Very High 3 3.45%
High 5 5.75%
Medium 22 25.29%
Low 45 51.72%
Very low 12 13.79%
Total 87 100%

Source: own questionnaire 2024

Based on table 13, of the 87 respondents, 52 (60%) of the respondents replied that there is training
and 35 (40%) of the respondents respond that there is no training given by the government concerned
with entrepreneurial activity. This indicates the government provides training concerned with
entrepreneurial activity.

In table 13, of the 87 respondents, 3 (3.45%) of the respondents replied very high, 5 (5.75%) of the
total respondents replied high, 22 (25.29%) of the respondents replied medium, 45 (51.72%) of the
respondents replied low and 12 (13.79%) of the respondents replied that very low. This implies that,
even if there is training given by the governments concerned with entrepreneurial activity, the
provided training have low changes on their business.

Table 14 improvement after engaging the business

What is your improvement after engaging in the Frequency Percentage (%)

business?
Independent 47 54%

27
Target temporary consumption 38 44%
To support family 2 2%
Other - -
Total 87 100

Source: own questionnaire, 2024

Based on table14, of the 87 respondents, 47 (54%) of the respondents respond independent, 38

(44%) of the respondents replied getting temporarily consumption, and 2 (2%) of the respondents
replied to support family. This shows that the major improvement after engaging in their business
activity is getting independency.

In addition to this improvement after engaging the business shows; to create better job opportunity
for others, to increase customer satisfaction, increasing our equity capital, creating awareness about
our business how to profitable.

Table 15 future benefit of the enterprise for the society

What benefit your enterprise will bring the society Frequency Percentage (%)
Reduce poverty 27 31%
Reduce unemployment 31 36%
Promote export marketing 14 16%
Build up local production 15 17%
Total 87 100%

Source: own questionnaire, 2024

From table 15, of the respondents, 27 (31%) of the total respondents respond the benefit of the
enterprise to reduce poverty; 31 (36%) of the total respondents replied the benefit of enterprise to
reduce unemployment, 14 (16%) of the total respondents replied the benefit of the enterprise to
promote export marketing and 15 (17%) of the total respondents replied that the benefit of the

28
enterprise to build up local production. This shows that the benefit of starting this business activity is
to reduce unemployment.

Regarding to the most serious problems of women entrepreneurs, most respondents replied that the
most serious problems that affect their business are lack of finance, lack of infrastructure such as
road, water, transportation, workplace, enough electric power. There are also lack of team and
coordination.

CHAPTER FIVE

29
 CONCLUSION AND RECOMMENDATION

In this chapter based on the findings, recommendations are forwarded and drawn to the concerned
bodies.

5.1. Conclusion

Based on the findings of the study, the following conclusions are drawn.

 Most of the respondents are within the age group between 21-30 years, single, and diploma
holders. The respondents are engaged in services.
 The result of this study discloses that, most of the respondents have financial problems. Even
if they have gotten financial credit from microfinance and other lending institution, they are
not satisfied with its support in terms of financial credit. The demand and supply of the
market affect the business highly. The attitude of respondents towards their business
activities in poor or majority of the respondents have poor attitudes the business activity
 Regarding to marketing problem, majority the respondents replied that there have been lack
of promotion, advertisement and place in order to sale their products. There is lack of
government support to overcome such problems. Most of the respondents stated that there is
lack of infrastructure facilities in business area like transportation, water, workplace and
enough electric power, there is also lack of team and coordination in between the respondents
according to their suggestions.
 Concerning to the type of government restriction, the government impose higher taxation on
their business activity and control the price changed to their products. Respondents also have
a negative relationship with their employees. This leads to conflict between entrepreneurs and
employees and the reduction of the production in terms of quality and quantity.
 Although the government provides training for women entrepreneurs it does not change their
business activity. Most respondents replied that engaging in this business activity helps to
become independent, some of them replied to get temporary consumption and least of the
respondents replied to we support their families, this business enterprise have a major
importance for the society in order to reduce unemployment and reduce poverty.

30
5.2. Recommendation

In light of the finding of this study, the researcher forwarded the following recommendation to the
Bonga micro and small scale enterprise office, society and women entrepreneurs for the reduction of
problems.

 Bonga micro and small scale enterprise should motivate the other age group of
entrepreneurs, married and divorced entrepreneurs.
 Bonga micro and small scale enterprise office and other lending institutions should
provide financial support with small interest rate until it becomes strengthen.
 Bonga micro and small scale enterprise office should balance the demand and supply of
the market by encouraging those entrepreneurs to products during high demand of the
customers, and decrease their products during low demand of customers.
 It would be advisable to replace the wrong perceptions of the society towards women’s
entrepreneurial activity by an optimistic view towards business people.
 It would be advisable to the government to expand the basic infrastructures like road,
transportation, electricity, water and work place. The government would also coordinate
those entrepreneurs to work themselves. So that entrepreneurs would be motivated to work
and help for smooth flow of business activity.
 Bonga micro and small business enterprise office should encourage women entrepreneurs
in all business sectors.
 Bonga micro and small enterprise office must check this entrepreneur, whether they are
profitable or not after providing finance, credit and training.
 Women entrepreneurs should be avoid a negative relation with their employees by
effective communication in order to create positive relationship.
 Bonga micro and small-scale enterprise office must encourage women to participate in the
other types of business sectors. Because most women are mostly participated in service.
 The government should also support women by finance, moral, work place and other
necessary facilities

31
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 APPENDIX

BONGA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

Questionnaires to be filled by respondents

Dear respondents

 The researchers are under graduate students in Bonga University in department of

management. Currently we are conducting a study under the title of assessment on the
challenges of women entrepreneurs in case of Bonga town for the requirement of
bachelor of art in management. Thus, the researchers politely asking you to spent your
precious time and effort to respond the following question. You response will be used
only for academic purpose and the researchers honesty process to you as well being
transfer to third party.

Thank you in advance for your cooperation.

NB: No need to writing your name, tick in the box your choice and write your answer on the
space provided

Part one: The respondent’s background information.

1. Marital status
Single [ ] Married [ ] Divorced [ ]
2. Age.
Below 20 years [ ] 21-30 years 31-40 years [ ] above 40 years [ ]
3. What is your educated level?
Illiterate [ ] Elementary school [ ] Certificate [ ] Diploma [ ] Degree [ ] above degree [ ]
4. What types of business activity are you engaged?
Manufacturing [ ] Trade [ ] Urban agriculture [ ] Construction [ ] Service [ ]
Part two: Questions related with the challenge of women entrepreneur

36
1. How do you evaluate the culture and the attitude of society towards your business?
Very high [ ] High [ ] Medium [ ] Low [ ] Very low [ ]
2. To what extent the demand and supply of a market affect your business?
Very high [ ] High [ ] Medium [ ] Low [ ] very low [ ]
3. How the financial problem challenges your business?
Very high [ ] High [ ] Medium [ ] Low [ ] very low [ ]
4. To what extent you satisfied with the financial access given by microfinance and other
lending.
Very high [ ] High [ ] Medium [ ] Low [ ] very low [ ]
5. To what extent the marketing problem such as promotion .advertisement affects your
business?
Very high [ ] High [ ] Medium [ ] Low [ ] very low [ ]
6. What is your attitude towards the business activities?
Very high [ ] High [ ] Medium [ ] Low [ ] very low [ ]
7. To what extent the governments support to overcome the problem?
Very high [ ] High [ ] Medium [ ] Low [ ] very low [ ]
8. Is there government restriction in your business?
Yes [ ] No [ ]
9. If your answer is yes in question number 8 what type of restriction:
Imposing high tax [ ] Price controlling [ ] unexpected change in price [ ]
If there are others, please
specify--------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
10. To what extent do you have relationship with your employee?
Very high [ ] High Medium [ ] Low Very low [ ]
11. Adequate infrastructure is available:
Strongly agree [ ] Agree [ ] Disagree [ ] Strongly disagree [ ] Undecided [ ]
12. How do you evaluate the government policy in encouraging women entrepreneur?
Very good [ ] Good [ ] Medium [ ] Poor [ ] Very poor
13. Is the government provides training concerned with entrepreneurial activity?
Yes [ ] No [ ]
14. If your answer is yes in question number 13 to what extent does the provided training
changes your business.

37
 Very high [ ] High [ ] Medium [ ] Low [ ] very low [ ]
15. What is our improvement after engaging on the business?
Independency [ ] To get temporarily consumption [ ] To support family [ ]
If other please
specify--------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
------------------------
16. What benefit your enterprise will bring for the society in the future?
Reduce poverty [ ] Promote export marketing [ ] Reduce unemployment [ ] Build local
production [ ]
17. What are the most serious affecting problems of your business?
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------
Part three: Interview question

1. What are the challenging factors of your business?

2. What are the facilities given by the local government to your business?

38