Challenges Confronting Women in Micro and Small Enterprises in Addis Ababa, Ethiopia

Abstract

This study was undertaken to explore factors that hinder women entrepreneurs
who are engaged in micro and small enterprises in Addis Ababa City. To this
effect the study provides information on the factors that deter women
entrepreneurs in starting and growing their businesses in Addis Ababa by
taking two sub-cities as a sample. 300 female respondents who were engaged
in micro and small enterprises were randomly selected from the two sub-cities.
Questionnaires with both close-ended and few open-ended questions were
prepared and distributed. The questionnaire consists of business related issues
such as the type of business, ownership types, sources of starting capital,
reasons of starting business, the profitability of business, problems encountered
at all stages of business. The data have been analyzed mainly using percentages
presented in tables. Lack of starting and working capital was clearly stated as a
major barrier to growth by many of the women entrepreneurs. While sources
from relatives were used to start business; ploughing back is reported as the
current source of finance used to run the business. The second and third largest
sources of current finance appear to be back the profit and credit from micro
finance. Moreover, the majority of women entrepreneurs have experienced
difficulties in finding and acquiring land and premises for production or
provision of services, as well as for selling purposes. Most run their businesses
from rented premises, but the relatively high rents poses critical problems for
them and can hinder their expansion and diversification.