FACTORS AFFECTING THE PERFORMANCE OF WOMEN ENTREPRENEURS (In Case of WEDP members)

Abstract

This study assesses the major factors affecting the performance of women entrepreneurs in Women Entrepreneurship Development Project. It also addressed the characteristics of women entrepreneurs’ and the driving forces behind them to start their own business, supports given to women entrepreneurs by Women Entrepreneurship Development Project and other institutions. A sample of 142 women entrepreneurs engaged in 5 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, factors that affect the performance of women entrepreneurs and the supports that women entrepreneurs acquire through Women Entrepreneurship Development Project and other Institutions were designed in a closed ended and likert scales. Interviews were held with top officials of micro finances and Women Entrepreneurship Development Project officers. After the data has been collected, it was analyzed using simple statistical techniques (tables and percentages) and descriptive statistics (mean and percentage). The results of the study indicates the personal characteristics of women entrepreneurs and their enterprises in Women Entrepreneurship Development Project are they have 4-5 family members engaged in trade sector in the form of a sole ownership and also provided opportunity generated by their businesses. It also shows that the driving force to start their own business are absence of other alternative for income. The major economic factors that affect women entrepreneurs are lack of own premises or land to run their business. The study also found that conflicting gender roles is the major social factors that affect these entrepreneurs. The legal and administrative bodies are required to create an enabling environment for the growth and development of women entrepreneurs, but this study found that access to policy makers, amount of tax levied and request of collaterals were the main factors that affect women entrepreneurs. The study also found that planning and financial reporting training, technology support, raw material supports and financial supports were the main challenges of the entrepreneurs. Based on the major findings, recommendations were forwarded to Addis Ababa women entrepreneurs, to sectorial associations, to finance institutions, to educational institutions and to concerned government bodies.