WOLLO UNIVERSITY

DESSIE CAMPUS

COLLEGE OF AGRICULTURE

DEPARTMENT OF AGRICULTURAL ECONOMICS

DETERMINANTS OF WOMEN PARTICIPATION IN MICRO AND SMALL

ENTERPRISE IN DESSIE TOWN

A senior essay submitted to Department of Agricultural Economics in partial fulfillment

of the requirement for the Degree of Bachelor of Science in Agricultural Economics

PREPARED BY:

1. DEBASH BEYENE

2. ZEHARA EBRAHIM

ADVISOR: Dr. HASSEN BESHIR

June; 2016

DESSIE, ETHIOPIA

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 ACKNOWLEDGMENT
First of all we would like to say thanks to God for he give us mind to analysis things. This
work comes in to end not only by the effort of the researchers but also the support of many
individuals and organizations. To begin with, we would like to say thanks to our advisor or
Dr. Hassen Beshir, for his constructive advice, valuable comments, supervision,
encouragement professional advice and assistance during this research work. Had it been
without his support, this work would not have been come in to reality. Secondly, our heartfelt
thanks go to our family who helped us in writing the whole document besides their moral and
financial support. In additional, Dessie women participation in MSEs should be greatly
praised for their Zealous effort in filling questionnaire.

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 TABLE OF CONTENT

ACKNOWLEDGMENT.............................................................................................................................. ii

LIST OF ABBREVATIONS, ACRONYMS AND SYMBOLS.....................................................................v

LIST OF TABLE......................................................................................................................................... vi

ABSTRACT................................................................................................................................................ vii

1. INTRODUCTION.................................................................................................................................... 1

1.1 Back ground of the study..........................................................................................................................1

1.2 Statement of the problem..........................................................................................................................2

1.3 Objective of the study................................................................................................................................2

1.3.1 General objective............................................................................................................................2
1.3.2 Specific objective.............................................................................................................................3

1.4 Research question.....................................................................................................................................3

1.5 Scope of the study......................................................................................................................................3

1.6 Significance of the of the study.................................................................................................................3

1.7 Limitation of the study..............................................................................................................................3

1.8. Organization of the study.........................................................................................................................4

2. LITRATURE REVIEW........................................................................................................................... 5

2.1 Conceptual definition................................................................................................................................5

2.2 Theoretical frame work of MSEs..............................................................................................................6

2.2.1 Literature in Ethiopia.....................................................................................................................6
2.2.2 Women entrepreneurs in WMSEs in Amhara region..................................................................7

2.3 Empirical review........................................................................................................................................8

3. METHODOLOGY................................................................................................................................. 11

3.1 DESCRIPTION OF THE STUDY AREA..............................................................................................11

3.2 Data type and source...............................................................................................................................11

3.3 Methods of data collection......................................................................................................................11

3.4 Sample size and sampling techniques.....................................................................................................11

3.5 Methods of data analysis.........................................................................................................................12

3.6. Definitions, Measurement and Description of Variables......................................................................12

4. RESULT AND DISCUSION................................................................................................................... 14

4.1. Demographic characteristics of respondents.........................................................................................14

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 4.2 Participation of respondents on business sector.....................................................................................17
4.2.1 The main amount of start-up capital................................................................................................17

4.3 Reason to start own business................................................................................................................19

4.4 Illegal business availability.....................................................................................................................19

4.5 Effect of government action in business development...........................................................................20

5.1 Conclusion................................................................................................................................................24

5.2. Recommendation...................................................................................................................................25

6. REFERENCE.............................................................................................................................................. 26

7. APPENDIX................................................................................................................................................ 27

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 LIST OF ABBREVATIONS, ACRONYMS AND SYMBOLS
CSA Central statically agency

GDP Gross domestic product

ILO International Labor Organization

KM Kilo meter

MSEs Micro and Small scale Enterprise

UNID United nation international developments

WEA Women Entrepreneurs Association

WISE Women in Self Employment

WMSEs Women operated Micro Small Enterprise

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 LIST OF TABLE
Table 3.1 Definition, Measurement, and Description of Variables 13

Table 4.1 Age structure of the sample respondents (n=40) 14

Table 4.2 Sex of the respondent 15

Table 4.3 Educational level of respondents 15

Table 4.4 Marital status of the respondents 16

Table 4.8 the experience of respondents in the business 18

Table 4.9 Reason of respondents to start own business 19

Table 4.10 Availability of illegal activities in business 19

Table 4.11 Awareness of respondents on illegal activities 20

Table 4.12 Effect of government action in encouraging/discouraging business development 20

Table 4.14 Profit from respondents’ enterprise 21

Table 4.16 Availability of infrastructure for MSEs 22

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DETERMINANTS OF WOMEN PARTICIPATION IN MICRO AND SMALL
ENTERPRISE IN DESSIE TOWN

ABSTRACT
The role of micro and small enterprise (MSEs) in employment and income generation is
increasingly recognized for the unemployed people, especially for women and has become a
major playing for policy makers and donors with dual objectives enhancing growth and
alleviating poverty. MSEs are particularly important for women’s since they offer a more
flexible, less restrictive form of employment and can be under taken by the skill they acquire.
This study describes the main determinants of women participation in Micro and Small
Enterprise using survey covering 40 business units in 2 sub-cities of Dessie town. The finding
of the study showed that small and micro enterprises make some profit from the intended
business. Lack of information and illegal business practices were the key challenges of MSE
in the study area. Due to this reason, profits of businesses for women were less profitable
than their male counter parts. Illegal business should be controlled and legalized by trade
and industry bureau of Dessie town. To make this effective, the trade and industry office of the
town should create coordination and co-operation with the entrepreneurs who are close to the
enterprise and can easily identify their day to day activities. Moreover, the government should
also establish relevant information system to balance the barrier in information in illegal
activities and taxation. Such actions would boost the participation of women in business.

Key words: micro and small enterprise, women entrepreneurs, growth, determinant and
market linkage

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 1. INTRODUCTION

1.1 Back ground of the study

The role of micro and small scale enterprise (MSEs) in socio-economic development as a means for
generating sustainable employment and income increasingly recognized. In developing countries, the
informal sectors are large source of employment and income, particularly for the urban population.
The informal employment , outside of agriculture, is defined as employment that comprises of both
self-employment, in the informal enterprise and wage employment, in the informal jobs, without
secure contracts, worker benefits, or social participation and represents nearly half or more of the
total non-agricultural employment in small regions of the developing world.

It ranges from 48% in North Africa, to 51% in Latin America, 65% in Asia and 72% in sub-Saharan
Africa (ILO, 2002). In Ethiopia, about half of the urban work force is engaged in the informal sector
and Addis Ababa nearly accounts for about 48% and Dessie accounts 30% of the total operators in
micro enterprise. Even if the composition of the female informal work force varies across regions, the
majority of economically active women in developing countries makes up a significant share of the
micro enterprise population and is considered critically important to poverty reduction strategies.

Women in Ethiopia also account for the larger share of the in formal economy operators, as well as
those running in micro and small enterprise. About 60% of the total population engaged in the
informal sector is female urban work force (Gebrehiwot &Wolday, 2005). This shows that the
informal sector is the primary source of employment for women than men.

The government of Ethiopia gives attention to the promotion and development of MSEs, especially
for women as a strategy for poverty reduction and increasing employment creation. The issuance of
the first national MSEs development and promotion strategy in 1997 and formulation of women
policy in 1998 aims to empower women by facilitating conditions to have access to resources and to
participate in economic activities the establishment of the federal MSEs development agency and the
issuance of Ethiopia’s industrial development strategy in 2003 are, additionally, important
instruments to promote MSEs development.

Furthermore, different national and international organization, such as international labor

organization(ILO), women in self-employment (WISE), women entrepreneurs association (WEA),
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etc, designed different support program to help women get out poverty and build the capacity of
women enterprise by providing access to credit, training and related assistances. This study will be
describes the determinants of women participation in MSEs.

1.2 Statement of the problem

The development of MSEs is becoming a very critical issue for the unemployed people, especially for
women. However, only a new start rate is higher for women operated micro small enterprise
(WMSEs). They grow less rapid than those headed by males and relatively high percentage of
WMSEs was closed, due to personal and other non-business failure reason (USAID, 2001).

It assess to provide a details study in the problem related to what are the problem or barriers to
women in starting and running their own business enterprise. Give a concern to factor that load
women to join micro and small scale enterprise and examine women access to economic opportunity
and input which promote MSEs Contribution.

Studies also show that male-headed firms grow more than double that of WMSEs (Lied Holm, 2001;
Mulu, 2007). So, the challenge is less about trying to increase to increase the number of women
enterprises and more about how to legitimize and strengthen the base of their enterprise. Therefore, a
research in to WMSEs could high light the specific experiences and problems which confront women
enterprise by focusing specifically on urban women.

In our study area the major problem observed is that, first of all accommodation of small and micro
enterprises in one area leads to unfair service for the overall the community. Secondly lack of
infrastructure and market access also prominent problems that faced in MSEs.

This study will be to assess the socio-economic, demographic and institutional factors affecting
participation of women in SME at Dessie town. This information will be filling the knowledge and
information gap for researchers, policy makers and entrepreneurs.

1.3 Objective of the study

1.3.1 General objective

The study aims to analyze the determinants of women participation in micro and small enterprise in
Dessie town

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1.3.2 Specific objective
 To examine the nature of the perception of women participation in MSEs
 To find out constraints and opportunities for women operated enterprises in the study area

1.4 Research question

 What is the nature of the perception of women participation in MSEs?
 What are the constraints and opportunities for women operated enterprises in the study area?

1.5 Scope of the study

The research is expected to investigate determinants of women participation in micro and small
enterprise in Dessie town. The scopes of this research rely on the assessment of determinants of
women participation in micro and small enterprise. Although there are number of small and micro
enterprise in Ethiopia, it is difficult to identify the challenges as a whole in the country level so the
researchers delimit the determinants of women participation in micro and small enterprise
particularly in Dessie town.

1.6 Significance of the of the study

It is important for the researchers to get experience on how to conduct research. The study also may
serve as a source for other researchers to study further research in this area. The success full
completion of these researches has the following potential importance. By applying or showing major
determinants that affects women participation in micro and small enterprise the researcher gives on
insight for the Dessie administration, other government and stockholders on how to remove or
eradicate the problem stated. It may also serve as an initial reading for researcher and individuals
seeking intensive study in the problem area.

1.7 Limitation of the study

Lack of finance resource, references and time constraints were among the main factors which
confined the research to such small sample size. There were some limitations in conducting the study
starting from designing the proposal tool the final report writing. Lack of well documented a relevant
data are the main limitation to analysis the problem. The study are limited due to shortage of time,
money and resource to conduct the under context.

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1.8. Organization of the study
Chapter one focuses on introduction. The second chapter reviewed the related available literature.
The research methodology is addressed in the third chapter. The fourth chapter is concerned on the
credential of the survey result by discussing it. Brief narration of importance finding of the study and
their recommendations are presented in the final chapter of five.

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 2. LITRATURE REVIEW

2.1 Conceptual definition

Due to the vary uses of the term, any study on MSEs should start by out lining the conceptual
definitions and specific meaning in the study. The terms MSEs have different uses and meanings
under different conditions and contexts, depending on the approach and level of the country
economic and technological development (andalem, 1997).

Definition is a fundamental issue facing all those wish to understand what exactly is MSEs and when
does it become medium sized or larger. Efforts to define MSEs have lead to remarkable diversity of
definitions which actually generated debate as to the different approaches to defining MSEs (Hailey,
1991; 2). Interesting the definition of MSEs applied vary from country to country and also mean
different things to different people even within the same country. That also appears to hold true in the
case of Ethiopia. This lack of definition has evidently contributed to failure to distinguish between
one segment and the other.

Beside as some commentators say most definitions will appear to be governed by the interest of the
receiver. Hence as stressed by Hayley (1991), agreed national definitions are vital importance not
only for research purpose but also for consistency of legislation and for focusing of discussion of
policy makers as well as financial and enterprises promotion agencies. Here it is worth indicating that
as can be evidenced from above, all attempts to define small scale enterprise adopt two basic
approaches these are qualitative and quantitative approach.

Qualitative definition

Some of the qualitative measures are critical like easy entry flexibility etc (Andualem, 1997).
Andualem defines micro enterprise within the context of Ethiopia and using both measure business
activity that are independently owned and predated have a small share of the market are managed by
owner and employing five or less employs.

Quantitative definition

Are those definitions which relay on clearly defined parameters are combinations of parameters
including some or all of the following. Number of employees, sales turn over assets, capital net worth
5
or even specific industry wide measure etc, these sorts of definition are essential when its desired to
identify specific target groups for inclusion or exclusion for certain preferential treatments. Yet as has
been clearly shown above there is wide disparity among countries in adopting quantitative definition.

2.2 Theoretical frame work of MSEs

The development thinking of the 1950’s educated large scale industrialization as means to achieve
social and economic prosperity among developing countries (Hyman, 1959),However this faith had
failed to bring about the expected result in many of these countries.

In the 1950’s like the agriculture sector the potential of MSEs in development had been over looked.
MSEs were usually viewed as marginal unproductive activities did not contribute much to the region
development evaded taxes and had little potential for growth or development of entrepreneurial
capacity (Hyman, 1989). During the 1980’s many developing countries faced chronic crisis that
almost brought their economic development process to a halt. For Africa, the 1980’s were labeled as
the last decades for the development. In response to this economic crisis many African nations were
rushed or forced to adjust with or without pressure and support from the World Bank and IMF.

Ethiopia has also confirmed that the micro small enterprise has potential to contribute to economic
growth, employment generation and poverty alleviation. In most developing countries like Ethiopia
MSEs by virtue of their size, location, capital investment and their capacity for rapid economic
growth proved their propellant effect to empower (bulletin, Webster and fiddle, 1996) have pointed
out that current thinking looks to MSEs development as a major tools with to reduce poverty and
empower women economically. In this paradigm more recent works (mead ET. Al, 1998) put it there
for front the reality that MSEs have the same potentials of contributing to a countries economic
development.

There are those with growth potentials and those that are not. Hence different categories of MSEs
have different contribution to make poverty alleviation and growth. Many new and small MSEs that
do not expand in terms of employment are survival type of activities that potential to contribute to
only poverty alleviation enterprise that are seeking to expand and add to their labor force can often
contribute to growth (made et. al, 1998).

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2.2.1 Literature in Ethiopia
Literature on MSEs in Ethiopia is scarce particularly on the subject women MSE s. However the
crucial economic and social contribution played by this sector has recognized by the Ethiopia as
evidenced by the introduction by policy strategy on women in the MSE s Sector. In line with other
African countries the majority of MSEs in Ethiopia are dominated by one person operation.

As the case elsewhere the individual characteristics of an enterprise such as sex ethnicity or religion
often influence the opportunities of Ethiopia women enterprise. Similar to other African in Ethiopian
the sector constituted a large share of labor force although information about contribution to GDP is
not sufficient (Billtoft, 1996). Like other African countries the majority of MSEs in Ethiopia are
small in size dominated by those operated by one person. Consequently the majority of the work
force in Ethiopia consists of the owner operators followed by unpaid family worker. The CSA survey
(1997) also estimated that 82% of the urban MSEs in 1996 were operated by the proprietor. And it is
found that women alone account for 60% of the employees of urban MSEs in 1996 (CSA, 1997).

In the Ethiopia case the most common missing pieces that could to identified is inadequate state
regulation or heavy bureaucracy. According to a survey presented in a work shop on the role of
MSEs (2003) excessive and seriously damaging trivial corruption coupled with lack of positive
attitude in general plus the policy environment and on other factor were responsible for the under
development of the sectors. Regarding the lack of a clear and programmatic nation policy to enhance
the development of MSEs even government institution that are created to support small business are
not enterprise friendly do not do their job in a enterprise like manner and are over bureaucratized (the
reporter vol. 8, number 363, 2003).

2.2.2 Women entrepreneurs in WMSEs in Amhara region

According to Walelign and Wondimu (2002) women entrepreneurs in MSEs in ANRS play a crucial
role in the economic improvement, because they utilize relatively less capital, it’s a home of
entrepreneurship, can create sustainable job opportunity, utilize cheap and local raw materials and
produce goods and services. Which save hard currency for country in general and for the region
particular and the very important point is that it is creating opportunities for the population to earn
(generate) income, which by itself create the way to reduce the poverty. Comparing with large
enterprises women entrepreneurs in WMSEs maintain a closer relationship with its customers,

7
employees, it’s based on lower over head and have greater flexibility, because their size allows them
to adopt new process, services, materials and products.

Regional, small and micro enterprise development agency strategy drafts as sited in Walelign and
Wondimu (2002) shows that encouragement promotion activities of women entrepreneurs in WMSEs
in the region have been weak. Though the regional government has formulated the WMSEs regional
strategy and put in place institution to implement the strategy, little is achieved so far. Women
entrepreneurs in WMSEs are still facing sever constraints in their activities and their promotion and
development are, therefore, hampered.

The micro and small enterprise are unable to address the problems they faced on their own, even in
and effectively functioning market economies. The problems or constraints related to each other, to
the legal and regulatory environments, access to market, finance, business information, business
premises, the acquisition of skill and managerial expertise, access to appropriate technology, access
to infrastructure, and in some cases discriminatory regulator practices. They also pointed out that
since there have not been any organized policy and support systems that women entrepreneurs in
WMSEs have been confronted by the various problems which are of policy, structural and
institutional in nature, lack of smooth supply of raw materials and working premises were the
majored bottlenecks for women entrepreneurs in MSEs.

On the other hand negative attitude of the public to the importance of the sector due to cultural
influence is another constraint to the development of WMSEs, due to these reason, training services
to SMEs is fairly young and weak. Only in sufficient formal consoling information and training
services are given and they are often given freely and are not demand driven and lack of knowhow on
adequate skills and experience.

A similar study by Walelign and Wondimu (2002) shows that women entrepreneurs in WMESs in
amhara region are constrained by lack of market; lack of finance or capital; problems related to
government rules and regulations; lack of information and advice; lack of sufficient training; lack of
premises or working place; shortage of supply of raw materials; cultural influence and lack of
infrastructural facilities.

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2.3 Empirical review
This review draws largely on reviews and synthesis of the existing primary research base. It is not
always there for possible to assess the rigor of every study referenced and in some cases the quality
of the original review and a sample of the primary studies on which it draws have been used as
indicative. The research on women enterprises is quite broad in developed countries especially in the
united state, Canada and the United Kingdom, because there is not much knowledge of women and
their enterprise in Latin America and especially Peru.

There are specific studies in France, Singapore, Russia, Ireland, Puerto Rico, China, and Turkey,
Hungary, South Africa, Israel, Poland, Germany, India, Lithonia, Greek, Australia. The initial studies
were devoted to knowing the back ground and organizational characteristics of their enterprise; most
recent studies consider wider research on the problems faced by women enterprises, their
administrative practices, perceptions of women as administrator, their abilities, for achieving success,
gender difference, conflicts between their roles in their enterprises and the vision they have for their
enterprises.

Women productive activities, particularly in industry, empower them economically and enable them
to contribute more to over all development. Weather they are involved in small or medium scale
production activities, or in the informal or formal sectors, women’s MSEs activities are not only a
means for economic survival but also have positive social repercussion for the women themselves
their and their social environmental united nations industrial development (UNID, 2001).

In many societies women do not enjoy the same opportunities as men. In many transitional
economies progress has been achieved in opening doors to education and health protection for
women but political economic opportunities for female enterprises have limited. Concerted efforts are
needed to enable female enterprises to make butter economic choices and to transform their business
in to competitive enterprise, generating income and employment through improved production
(OECD, 1997). Women enterprises have grown in large number across the global over the last and
increasingly the enterprise potentials of have changed the rural economies in many parts of the world.
But this does not mean that the problems are totally resolved. In support of this the center for
women’s business research in the united states as sited in UNECE (2004) and Mahbub (2000)
identified the following factors that affect women enterprises.

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A. Access to finance

Access to finance is a key issue for women. Accessing credit particularly for starting an enterprise, is
one of the major constraints faced by women enterprises. Women often have fewer opportunities than
men to gain access to credit for various reasons, including lack of collateral, unwillingness to accept
household assets as collateral and negative perceptions of female enterprise by loan officer.

B. Access to market

The ability to tap in to new markets requires expertise, knowledge and contacts. Women often lack
access training and experience in on how to participate in the market place and are therefore unable to
market goods and services strategically. Thus women own MSEs are often unable to take on both the
production and marketing of their goods. In addition, they have often not been exposed to the
international market, and therefore I knowledge about what is international acceptable. The high cost
of developing new business contacts and relationships in a new country or market is big deterrent and
obstacle for many MSEs, in particular women-owned business. Women many also fear or face
prejudice or sexual harassment, and may be restricted in their ability to travel too.

C. Access to networks

Women have fewer business contacts, less knowledge of how to deal with the governmental
bureaucracy and less bargaining power, all of which further limited their growth. Since most women
enterprises operate on a small scale and are generally members of professional organization or part of
other networks, they often find it difficult to access information. Most existing networks are male
dominated and sometimes not particularly welcoming to women but prefer to be exclusive.

D. Access to policy maker

Most women have little access to policy makers or representations on policy making bodies. Large
companies and men can more easily influence policy and have access to policy makers, who are seen
more as their peers. Women tend not belong to, and even less reach leadership positions in main
stream business organizations, limiting their input in to policy making through lobbying. Women’s
lack of access to information also limits their knowledgeable input in to policy making (UNECE,
2004). This study aimed to describe the determinants of women participation in MSE at Dessie town.

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11
 3. METHODOLOGY

3.1 DESCRIPTION OF THE STUDY AREA

The study will conduct in Dessie town which is found in the north central Ethiopia and located in the
Debub Wollo Zone of the Amhara region consists at altitude of 11° 8'N 39° 38' E and longitude of
11.33° N 39.633° E, with alleviation between 2,410 and 2,550 meters above sea level. The area of the
town is 15.08 km2 with a total population of 151,174 from this 72,932 are men and 78,242 are
women; 12095 or 79.44% are urban inhabitants living in the town on Dessie, rest of the population is
living in rural kebeles around Dessie. The majority of the inhabitants were muslin, with 58.62%
reporting as their religion, while 39.92% of the populations are Ethiopian orthodox Christianity, and
1.15% was protestant. The city receives an annual rainfall of 600mm and 300mm and has an average
temperature of 17.2°c and 12.9°c. During the year the average temperature varies by 4.3°c. The agro-
ecology of the city is Dega, and weynadega and the majored crops in the rural kebele’s of the city are
barely (28q/ha), wheat (25q/ha), bean and maize.

3.2 Data type and source

The research will be conducted by using both primary and secondary source. Primary details was
collected through questionnaires which is used to get first Land information required for assess the
element of the issue. Primary data was obtained from the men and women enterprise by distributing
questionnaires and the secondary data on the other hand can get from books, magazines, different
report, website and other related materials are will be used.

3.3 Methods of data collection

The primary data was collected through questionnaire and it only includes close-ended type
questionnaire and distribution for some of randomly selected men and women’s intended in the
enterprise. The secondary data were gathered by reviewing previously made researcher on different
aspects of women enterprise and various related publication document are source of data such as
books, journals, and report and internet website.

3.4 Sample size and sampling techniques

In order to accomplish the aim or the desired objectives of the target population of the study is
conducted in Dessie town. By selecting two sub-cities, that is Arada and Melaku sub cities from 9

12
sub-cities purposively. The populations of the study were the men and women are who works under
micro and small enterprise in those sub-cities. According to Dessie administration micro and small
enterprise office information there are 411 men’s and women’s are engaged in micro and small
enterprise in both sub-cities. From 411 target population in both sub-cities 261 are male and 150 are
female. From the total participants of men and women we were selecting 40 participants by using
non-statistical sampling method. Those participants were selected by using simple random sampling
technique due to financial, time and personal constraints for analysis researcher to select 40
participants as a sample size. The sample size was selected proportionately in both male and female.

40∗261
Male= =25
411

40∗150
Female= =15
411

The researchers were using simple random sampling methods to select 40 samples from the target
population. A simple random sample finite population is a sample selected over that of each possible
sample combination has equal probability of each unit in the population is identified and each unit
has an equal chance of in the sample.

3.5 Methods of data analysis

After the data was collected the analysis of the data is begin in the study descriptive method of the
data analysis is found to be important for transforming of the raw data in to a form that makes easy to
understand and interpret. Primary descriptive techniques are used with simple statically analysis such
as percentage and some other relevant tools are used. In addition to categorical methods such as
tabular presentation will be used to study briefly.

3.6. Definitions, Measurement and Description of Variables

The following variables were defined and measured (Table 3.1.).

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Table 3.1 Definition, Measurement, and Description of Variables

Name Measurement
Sex 1=for male
0=for female
Age In years
Marital status 1= married
0= unmarried
Level of education Year of schooling

Engagement in sector 1= production

0= otherwise

Initial income In birr

Years stayed in enterprise In years

Working capital In birr

Profit In birr

Training 1=yes
0=no

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 4. RESULT AND DISCUSION
In this chapter data analysis and interpretation are presented. The data collected through
questionnaire are presented mainly with the help of table and percentage. The study findings are
obtained from men and women entrepreneurs in Dessie town. According to information obtained
from Dessie office micro and small enterprise, both men and women are generally engaged in urban
service sectors, commerce and construction each constituting different sector. Based on this, out of
411 women and men enterprises association 40 of them are randomly selected.

4.1. Demographic characteristics of respondents

As indicated in the following table4.1 the proportion of sampled respondents whose age range from
between the age group18 -30 is 17.5% of male and 20% of female .in addition to this the age ranges
from 31-40 is 35%of male and 10% female and age range from 41-50% is 5%of male and 7.5 %of
female where as the rest of the age range greater than 50 is 5%of male. This implied that women who
participated in business are young.

Table 4.1 Age structure of the sample respondents (n=40)

No Age group Respondent

Male Female

Frequency Percent Frequenc Percent

y

1 18-30 7 17.5 8 20

2 31-40 14 35 4 10

3 41-50 2 5 3 7.5

4 >50 2 5 0 0

Total 25 62.5 15 37.5

Source: Survey Result (2016)

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As indicated in the table 4.2, most of the respondents were male which account 62.5%, while the
remaining respondents were female. This implies those male are more engaged in small and micro
enterprise.

Table 4.2 Sex of the respondent

Sex Respondents Percentage

Male 25 62.5

Female 15 37.5

Total 40 100

Source: Survey Result (2016)

Table 4.3 Educational level of respondents

Level of educational Respondents

Male Female

Frequenc Percent Frequency Percent

y

Illiterate 1 2.5 2 5

Primary 10 25 6 15

Elementary 4 10 3 7.5

Secondary 4 10 2 5

10+1and 10+2 5 12.5 2 5

Diploma and degree 1 2.5 0 0

Total 25 62.5 15 37.5

Source: Survey Result (2016)

As indicated in table above most of the respondents that is 25%of male and 15%of female are studied
primary level of education while those who studied in elementary which accounted 10% of male and
16
7.5% of female. In addition to this 10%of male and 5%of female respondents education level is grade
10 completed. And 2.5% of male and 0% of female are diploma and degree.

Table 4.4 Marital status of the respondents

Marital status Male Female

Frequency Percent Frequency Percent
Single 12 30 3 7.5
Married 11 27.5 9 22.5
Divorced 2 5 1 2.5
Widowed 0 0 2 5
Total 25 62.5 15 37.5
Source: Survey Results (2016)

As indicated on the above table out of the 40 respondents the 30% of male and 7.5%of female are
single and the 27.5%of male and 22.5%of female were married implying that the male and female
have family responsibility while the 5%of male and 2.5%of female are divorced and the rest of 0%of
male and 2% female are widow.

Table 4.5 Family size of respondents

Family size Male Female

Frequency Percent Frequency Percent

Less than 4 20 50 10 25

Greater than 4 5 12.5 5 12.5

Total 25 62.5 15 37.5

Source: Survey Results (2016)

As can be seen from the table above, majority of the respondents that is 50% of male and 25% of
female of the respondent have a family size of less than 4 and the rest of 12.5% male and 12.5% of
female of the respondent have family size greater than 4.

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4.2 Participation of respondents on business sector
The sector in which women enterprise are working in depicted in the following table.

Table 4.6 Participation of respondents in different sector

Type of sector Male Female

Frequency Percent Frequency Percent

Trade 15 37.5 5 12.5

Production 3 7.5 2 5

Services 7 17.5 8 20

Hand craft 0 0 0 0

Total 25 62.5 15 37.5

Source: Survey Results (2016)

It is clearly seen from table above the 37.5% male and 12.5% of female respondents are engaged in
the trade. In addition to this the 7.5% of male and 5% of female respondents are engaged in
production and the rest of 17.5% of male and 20% of female respondent are engaged in service
sector.

4.2.1 The main amount of start-up capital

Starting own enterprise requires a starting capital rather than in existence of ideas. The following
table showed the main source of capital.

The following table4.7 shows that majority of male 32.5% respondent of initial capital is 7000-
10000 were as the majority of female 17.5% respondent of initial capital is 1000-3000 and the 20%
of male respondent of initial capital is 1000-3000 and the rest 10% male and 7.5% of females initial
capital is 4000-6000.

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Table 4.7 .The startup capital of business among respondents

Initial capital Male Female

Frequency Percent Frequency Percent

1000-3000 8 20 7 17.5

4000-6000 4 10 3 7.5

7000-10000 13 32.5 5 12.5

Total 25 62.5 15 37.5

Source: Survey Results (016)

As indicated on the following table the majority respondent that is 22.5% of male (Table 4.8) Then
15% of female are 1-3 year stayed in the business. On the other hand 15% of male and 10% of female
are less than one year. In addition to this 15% of male and 5% of female are stayed 3-4 years and the
5% of male and 5% of female are stayed 5-8 years while the rest of 5% of male and 2.5% of female
are stayed the enterprise a year of greater than 8. This showed that it is very recent phenomenon for
women to full engage in micro and small enterprise so that they have been encouraged to continue
with the business and there to build experience to confront the problem that might affect them.

Table 4.8 the experience of respondents in the business

How long did you work with enterprise Male Female

Frequency Percent Frequency Percent
Less than one year 6 15 4 10
1-3 year 9 22.5 6 15
3-4 year 6 15 2 5
5-8 year 2 5 2 5
Greater than 8 2 5 1 2.5
Total 25 62.5 15 37.5
Source: Survey Results (2016)
19
4.3 Reason to start own business
Table 4.9 Reason of respondents to start own business

Reason to start own business Male Female

Frequency Percent Frequency Percent

To work independently 15 37.5 7 17.5

To increase investment 3 7.5 1 2.5

To satisfy personal needs 7 17.5 7 17.5

Others 0 0 0 0

Total 25 62.5 15 37.5

Source: Survey Results (2016)

This table show that most of the respondents that is 37.5% of male and 17.5% of female respondents
to work independently. And the 17.5% of male and 17.5% of female respondents start their own
enterprise to own satisfy personal needs and the rest of 7.5% of male and 2.5% of female respondents
were start their business to increase investment.

4.4 Illegal business availability.

Table 4.10 Availability of illegal activities in business

Is there illegal activities Male Female

Frequency Percent Frequency Percent

Yes 18 45 12 30
No 7 17.5 3 7.5
Total 25 62.5 15 37.5
Source: Survey Results (2016)

From the above table majority of the respondent that is 45% male and 30% of female [micro and
small enterprise participants] are affected or challenged by the presence of illegal business [i.e. Black
market and speculation etc] and the rest of 17.5% male and 7.5% of female are not affected by the
illegal business .

Table 4.11 Awareness of respondents on illegal activities

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 Is there awareness on illegal Male Female
actors?
Frequency Percent Frequency Percent

Yes 10 25 5 12.5

No 15 37.5 10 25

Total 25 62.5 15 37.5

From the total number of respondent most of them that is 37.5% of male and 25% of female said
that Dessie town trade and industry department is not aware about illegal business the rest one
expected that it is aware but it is not stride to avoid those activities .

4.5 Effect of government action in business development

Here the government action affects most of the respondent (87.5 of the respondent)

Table 4.12 Effect of government action in encouraging/discouraging business development

Is there What type of Male Female

effect of effect/service? Frequency Percent Frequency Percent
government
action?
Yes House rent 2 5 3 7.5
High taxation 15 37.5 5 12.5
Both 5 12.5 5 12.5
No 3 7.5 2 5
Total 25 62.5 15 37.5
Source: Survey Results (2016)

Here the government action affects most of the respondent by high taxation [37.5%] male and
[12.5%] female and the 5% male and 7.5% of female of the respondents are affected by the house
rent and the rest of 12.5% of male and 12.5% of female affected by both house rent and high taxation.

4.6 Availability of raw materials in MSE

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Table 4.13 Availability of raw materials in MSE

Degree of availability of raw Male Female

material
Frequency Percent Frequenc Percent
y
Very good 7 17.5 3 7.5
Good 13 32.5 7 17.5
Poor 2 5 3 7.5
Very poor 3 7.5 2 5
Total 25 62.5 15 37.5
Source: Survey: Results (2016)

As we observed from table above the availability raw material in micro and small enterprise are
17.5% and 7.5% of male and female respectively were very good .in addition to this 32.5% male and
17.5% of female are good and the 5% male and 7.5% of female is poor and the rest of 7.5% of male
and 5% of female are very poor availability of raw material.

Table 4.14 Profit from respondents’ enterprise

Get For what purpose use it Male Female

profi
t Frequenc Percent Frequency Percent
y
For consumption 3 7.5 5 12.5
Yes
For re-investment 4 10 1 2.5
For deposit 4 10 2 5
Partly for consumption and 8 20 2 5
partly for investment
No 6 15 5 12.5
Total 25 62.5 15 37.5
Source: Survey Results (2016)

As we observed from above table the 7.5% of male and 12.5% of female were use the profit for
consumption. In addition to this 10% of male and 2.5% of female are used for re-investment while
the 10% of male and 5% of female were used for deposit and the rest of 20% of male and 5% of
female are used partly for consumption and partly for re-investment and the rest of 15% male and
12.5% of female is do not get from their enterprise.

22
4.7 Challenges for starting the enterprise

Table 4.15 Challenges of starting business

Is there What is the problem Male Female

challenge
Frequency Percent Frequency Percent
No 20 50 9 22.5
Yes Lack of managerial 2 5 2 5
skill
Lack of information 3 7.5 4 10
about its important
Total 25 62.5 15 37.5

As we observed from the above table majority of the respondents (i.e50%) of male and 22.5% of
female were do cost benefit analysis before starting their enterprise .in addition to this 5% of female
and 5% of female are not do cost benefit analysis due to lack of managerial skill and the rest of 7.5%
of male and 10% of female are not do cost benefit analysis due to lack of information important

4.8 Availability of infrastructure for MSEs

Table 4.16 Availability of infrastructure for MSEs

Infrastructure availability Male Female

Frequenc Percent Frequency Percent
y
Very good 7 17.5 3 7.5

Good 13 32.5 7 17.5

Poor 2 5 3 7.5

Very poor 3 7.5 2 5

Total 25 62.5 15 37.5

Source: Survey Results (2016)

As we observed from the above table (table4.16) the availability of raw material in micro and small
enterprise are 17.5% and 7.5% of male and female respectively were very good. In addition to this

23
32.5% male and 17.5% of female are good and the 5% male and 7.5% of female is poor and the rest
of 7.5% of male and 5% of female are very poor availability raw material.

Table 4.17 Descriptive statistics main variables

Variable Male Female

No Min Max Sum Mean No Min Max Sum Mean
Age 25 24 60 923 36.92 15 18 35 345 23
Year of education 25 O 15 224 8.96 15 0 13 96 6.4
Initial capital 25 100 10000 7488 2995.52 15 100 6000 42550 2836.67
8 0
Profit 25 600 8000 5390 2156 15 700 4000 29100 1940
0
Source: Survey Results (2016)

The minimum ages of the male and female entrepreneurs were 24 and 18, respectively. The average
ages of the male and female entrepreneurs were 36.9 and 23, respectively. The average education
levels of the male and female entrepreneurs were 9 and 6, respectively. The average initial capitals of
the male and female entrepreneurs were Birr 2995.5 and 2836.67, respectively. The average profits of
the male and female entrepreneurs were Birr 2156 and 1940, respectively.

24
 5. CONCLUSION AND RECOMMENDATION
The main objective of this research was describing the determinants of women participation in micro
and small enterprise in Dessie town. After collecting the necessary data, they were analyzed and
discussed under chapter four and in this chapter conclusion are made and the recommendations are
also forwarded.

5.1 Conclusion
On the base of finding in the chapter for the following conclusion are drawn. Most of the respondents
have low level of education as a result they have low skill and knowledge about how to operate their
enterprise. The finding also shows that the respondents are affected by government action interims of
high taxation system and house rent as a result there is a great challenge by the respondents on the
activities of their business operation. Although there are many challenges in small and micro
enterprises, there are also some opportunities for the respondents. From the finding more than half of
the respondents believed that there were insufficient raw materials for their enterprise. Most of the
respondents said that there were market problems such as price difference of raw materials,
incompatibility of demand and supply. The respondent said that small and micro enterprise got some
profit from their business. Most of the respondents faced lack of information for starting their
enterprise. Micro and small entrepreneurs had established their enterprise to achieve the desire to
work independently. Based on the above statement, the researcher concludes that there are many
problems or challenges that affect respondents business operation, there exist some opportunity for
them.

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5.2. Recommendation
 Illegal business should be controlled and legalized by trade and industry bureau of Dessie
town and as well as by the government. To make this effective, the trade and industry bureau
of the town should create coordination and co-operation with the Dessie enterprise leaders and
can easily identify their day to day activities. The government should also revise high taxation
system. This would be achieved through systemic information for empowering and boosting
the income of women.

 The small and micro enterprise should conduct marketing research to take pro-active control
and paper enterprise to response the changing environment.

 It is known that there is no totally free marketing system from government intervention, from
this point of view, to be solved the marketing system problems, the government should
prioritize this small and micro enterprise and give different incentive in order to strength those
small and micro enterprise in the marketing.

 Generally, to overcome the problems stated, the government body and the industry offices
should be take for these factors affecting the micro and small enterprise.

26
 6. REFERENCE

Andualem Tegegne, (1997) Small scale enterprise and entrepreneurship development in Ethiopia

Billetofts, (1996) between industrialization and income generation challenges of micro and small
enterprise (MSEs) in Ethiopia.

Hayley, (1991), agreed national definitions are vital importance not only for research purpose but
also for consistency of legislation and for focusing of discussion of policy makers as well as financial
and enterprises promotion agencies.

Hyman, Erick (1989) women empowerment illustration from third world

ILO, (2002), women and men in the informal economy a statically picture, International labor office,
ILO, Geneva

Lied Holem (2001), small firm dynamics evidence from Africa and Latin America, The international
bank of reconstruction and development Washington Dc, USA, The World Bank

Mulu G. (2007) growth of micro enterprise; empirical evidence from Ethiopia, Ethiopian
development research institute (EDRI) February 2007.

OECD (2002) the keys for successful women entrepreneurs. The OCED Bologna process, December
2002

UNECE (2004), “Women’s self employment and entrepreneurship in the ECE region”, Background
paper prepared by the secretariat for the regional symposium on mainstreaming Gender in to
Economic policies, Geneva, 28-30 January 2004

UNID (2001), women entrepreneurship development in selected African countries. Working paper
No.7.Legos World Bank (2003), Importance of SMEs and the role of public support in promoting
SME development

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 7. APPENDIX
Topic: Determinants of women participation in micro and small enterprise in Dessie town

Part1. Demographic characteristics of respondents

1. Sex: Male Female

2. Age: of respondents

Less than 20 20-30 31-40 41-50 above 50

3. Marital status:

Single married windowed Divorce

4. Level of education:

Illiterate Reade and write grade 1-4 Grades 5-8

Grade 9-10 above 10

5. How many children do you have?

One 2-4 five and above No children

Part2. Business related information

6. What is your engagement in the sector?

Production Non-production others

7. Number of employees in the enterprise?

Less than 5 6-10 11-15 More than 15

8. How long did you work with enterprise?

Less than one year 1-3 3-5 greater than 5

9. From where do you get startup capital?

Equb Bank loan Government loan others

10. How much is your working capital?

Bellow birr 50,000 from birr 50,000-100,000

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 From birr 100,000 and above

Part3. Effect of illegal business

11. Is there any illegal business that challenges your MSEs Operation?

Yes No

12. If your response to question no11 is” yes” do you think that the trade and industry department of
Dessie town aware of this fact?

Yes No

Part4. Respondents view on government intervention

13. Is there government action that affects your business in the current situation?

Yes No

14. If your response question no13 is “yes” in what way affect your business?

House rent High taxation both

Part5. Availability of raw materials to small and micro enterprise

15. How do you see the availability of raw materials for micro and small enterprise?

Very good Good Poors Very poor

Part6. Respondents view on marketing problems

16. Do you observe market and marketing problems for production of MSEs?

Yes No

17. If your answer is “yes” question 6 what are these problems?

Part7. The respondents profit in the operation of enterprise

18. Do you get some profit from your enterprise?

Yes No

19. If your answer is “yes” for question 18 what purposed do you use it?

For consumption for re-investment for deposit

Partly for consumption and partly for re-investment other specify

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Part10. Character cost benefit analysis is conducted before starting the enterprise

20. Have you made any cost benefit analysis before starting the enterprise?

Yes No

21. If your answer is “NO” for question 20 why not?

Lack of managerial skill and abilities

Lack of information about its importance

Other specify

Part9. Reason for starting the enterprise

22. What is the reason for starting your enterprise?

To work independently to increase investment

To satisfy personal needs other specify

Part10. Availability of infrastructure for micro and small enterprise

23. How infrastructure availability for small and micro enterprise?

Very good good poor

very poor

30