FACTORS AFFECTING THE PERFORMANCE OF WOMEN ENTREPRENEURS IN MSEs IN THE CASE OF KOLFE KERANIYO SUB-CITY

Abstract

This study was designed to assess the major factors affecting the performance of women entrepreneurs in MSEs. It also addressed the characteristics of women entrepreneurs in MSEs and the challenges they face in the area of technical and business training supports from training colleges/institutes. A sample of 340 women entrepreneurs engaged in 5 sectors was taken for the study using proportionate stratified 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 in MSEs and the effects in technical trainings were designed in a closed ended and Likert scales. After the data had been collected, Data were analyzed using descriptive statistics, which included frequencies, sum, mean, max, standard deviations and percentages and the ordinary least square multiple regression method was used to analyze causes and effect relationships. Tools of analysis such as Independent sample T test and ANOVA were used, the results of the study indicates the personal characteristics of women entrepreneurs in MSEs and their enterprise affect their performance. It also shows that lack of their own premises (land) to run their business, financial access given by micro finances or other lending institutions, inadequate access to business training, stiff competition in the market place, access to technology and access to raw materials were the key economic factors that affect the performance of women entrepreneurs in MSEs. The study also found that conflicting gender roles or household responsibilities, network with outsiders and social acceptability were 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 MSEs, but this study found that access to policy makers, high amount of tax, network with administrative bodies, interest rate charged and over all legal and regulatory environments were the main factors that affect women entrepreneurs. The study also found that customer service training, marketing training, financial report training and entrepreneurship trainings were the main challenges of the entrepreneur. It also found that the profitability of the business, sales turnover and capacity to pay obligations, capital of business and asset of the business were not good. Based on the major findings, recommendations were forwarded to existing and potential entrepreneurs, MSEs, Micro finances and other government bodies.