JIMMA UNIVERSITY

College of Business and Economics

Department of Management

Course Title:

Entrepreneurship and Small Business management

Course Code: MBA 711

Journal article review

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

October, 2016

I.

DESCRIPTION OF THE STUDY

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The purpose of the research entitled Challenges Confronting women in

Micro and Small Enterprises in Addis Ababa by Jemal Abagissa (PhD) is to
offer information on the factors that negatively affect women entrepreneurs
who are engaged in starting and growing their small and micro business, in
order to create, more employment opportunities for the entrepreneurs and
others, to create flexible jobs for women, enrich the entrepreneurs
entrepreneurial skill, for equitable income distribution, activate completion
and alleviate lack of resources, to help them exploit niche markets, enhance
their productivity, stimulate economic development to suggest some policy
issues that stimulate economic development

and alleviate poverty in the

country.
The study is conducted on woman entrepreneurs because women
entrepreneurs contribution is considerable in the socio economic wellbeing
of their family and community however they receive little attention. Other
rationales behind this research are:o Women entrepreneurs play a great role in employment creation
and poverty reduction.
o
There is lack of detail assessment on their impact on the
economy.
o Research done by many institutions like ILO, UNDP etc.
demand better information on women entrepreneurs in order to
support them.
o Lack of attention given to women entrepreneurs experience of
o

entrepreneurship.
Women entrepreneurs have less support from the society than

their male counterparts.

o This study is expected to be the base for further studies on
women entrepreneurs.

II.

LITERATURE EVALUATION

The sequence of the literature review is from general to specific. The study
review literatures regarding factors that hinder women entrepreneurs in
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micro and small enterprises starting from general (global) to specific

research area which is Ethiopia. The content of the literature review is
related to the research problems. However, most of the literature review
sources are not recent. Since the study was conducted in 2013, the literature
review sources are expected to be within the last 5 years. Though, most the
sources of the literature review utilized in this study back 17-10 years
ranging from (1980-2003).

III.

CONCEPTUAL FRAMEWORK

In this study, the researcher did not deploy any theoretical and conceptual
framework and model.

IV.

SAMPLE

The research subjects in this study are 300 women entrepreneurs who
operate micro and small business selected randomly from two sub cities
(Gullele and Addis ketema). The researcher purposely selected the two
administrative areas purposely and the selection criteria seems reasonable,
however, the total number of population which is the total number of women
entrepreneurs in Addis Ababa is not well defined and as the researcher said
he didnt get the exact number of women entrepreneurs in Addis Ababa.
Therefore, since the total population is not well defined it is difficult to say
that the sample size is representative or not.
The data instrument is questioner only; this instrument may exclude women
entrepreneurs who are illiterate and other stakeholders like small cub city
administrators, policy maker etc. are not included in the study. Obtaining
data from participants with different experience and education can prevent
information bias and thus increase credibility regarding the information.

V.

METHOD AND DESIGN

Since the study is social study the research is qualitative research and the
area of the subject is Addis Ababa. The researcher chosen two cub cities
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among the ten cub cities purposively and random method was used while
choosing the subjects of 150 from each of the two subs cites. The researcher
tried to collect primary data through questioner. The right of the subjects
was protected because there is no reflection about personal issues of the
subjects in the research and while data collection as indicated in the analysis
part of the study.

VI.

ANALYSIS

The researcher analyzed the data collected through questioner in tabular

presentation and detail written expression in the form of number of
frequency and percentage. The question addressed in the questionnaire
seems not detail and through, however it is appropriate to the title of the
research.
The results of the analysis are significant because it clearly address the
major obstacles that hinder Woman entrepreneurs of Addis Ababa in starting
and growing their micro and small business.

VII. RESULTS
As discussed in the study by the researcher the core challenges of Women
Entrepreneurs of Addis Ababa who operate micro and small business are lack
of startup capital and acquiring land and premises for production or provision
of services as well as selling their produce and provision of their service.
As indicated in the research most of the Women get their startup capital from
their relatives and credit from micro finance institutions. Regarding place,
most of the Women who participated in the research run their business from
rented premises, but relatively high rents create critical problems for the
women in expanding and diversifying their business.

VIII. SUBJECT MATTER SIGNIFICANCE

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The implication of this study for practitioners who want engage in micro and
small business specifically in Addis Ababa is that having, having assess the
business they want to engage, they should address the source of capital and
premises they produce and sell their product because this are the main
hindrances for women entrepreneurs in Addis Ababa. The study addresses
additional knowledge in understanding the problems and how to solve the
hindrances of women entrepreneurs in Addis Ababa and in order to
encourage them to grow their business.

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