Challenges of Women Entrepreneurs in Micro & Small Enterprises in Adama City

Abstract

This study was designed to assess challenges and prospects of women entrepreneurs in MSEs. It also addressed the characteristics of women entrepreneurs in MSEs and their enterprises and the supports they acquire from municipality, TVET colleges/institutes and other government body. A sample of 255 women entrepreneurs engaged in different sectors was taken for the study using stratified and simple random sampling. In the process of answering the basic questions, a questionnaire that include demographic profiles, characteristics of women entrepreneurs and their enterprises, challenges or factors that affect of women entrepreneurs in MSEs and supports MSEs acquire from TVETs was designed in a closed ended and likert scales. Moreover, interviews were held with top officials of MSEs, micro finances and TVET educators. After the data has been collected, it was analyzed using simple statistical techniques (tables and percentages) and descriptive statistics (mean and standard deviations) by using “SPSS” software. The results of the study indicate the personal characteristics of women entrepreneurs in MSEs and their enterprise affect their day to day activities. It also shows that lack of own premises (land), financial access, stiff competition, inadequate access to training, access to technology and access to raw materials were as the key economic challenges or factors that affect women entrepreneurs in MSEs. The study also found that conflicting gender roles, social acceptability and network with outsiders were the major social challenges or factors that affect women entrepreneurs. Furthermore, the main legal/ administrative challenges or factors include access to policy makers, high amount of tax and interest, bureaucracies and red tapes, and over all legal and regulatory environments. The study also found that even though in ADAMA City, for women entrepreneurs’ TVETs provide technology, machine maintenance, and technical skill training, co operations in the areas of business related trainings are poor. Based on the major findings, recommendations were forwarded to existing and potential entrepreneurs, MSEs, Micro finances and TVET educators.