Chapter one introduction 1 Background to the Study



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Source: Field Survey, 2007
How the Business was started and Branches of the Business

Considering how the respondents started their businesses, the survey revealed that 243(58%) of them started their businesses from the scratch, 73(17%) of them purchased their businesses, 50(12%) of them inherited their businesses while 56 (13%) of them joined their husband to start their business. Looking at the number of branches of their business, it was discovered that 253(60%) of them have one branch, 98(23%) have two branches, 48(11%) have three branches, 17(4%) have four branches while 6(2%) have five branches.



Table 45: Descriptive Statistics of Respondents by Modalities for Establishment and Number of Branches

Variations

Freq n=422

Per. (%)

Variations

Freq n=422

Per (%)

How did you start your business?







How many branches do you have







From the scratch

243

58

1 branch

253

60

Purchased

73

17

2 branches

98

23

Inherited

50

12

3 branches

48

11

Joined husband to start the business

56

13

4 branches

17

4

Total

422

100

5 branches

6

2










Total

422

100

Source: Field Survey, 2007
Number of Employees in the Business

The study also showed that 295(70%) of them had between one to four employees in their business when they started the business, 60(14%) of them had five to nine employees, 52(12%) employed ten to fourteen employees, 11(3%) of them employed fifteen to nineteen employees while 4(1%) of them had twenty and above employees in their organization when they started. On the other hand, 256(61%) of them have between ten to thirteen employees in their business, 75 (18%) fourteen to seventeen employees in their business, 67(16%) had eighteen twenty-one employees in their organization, 12(3) had between twenty-two to twenty-five employees in their firm while 11(3) have twenty-six and above employees in their organization.



Table 46: Descriptive Statistics of Respondents by Number of Employees engaged by them at the Commencement and at Current

Number of Employees engaged at start

Number of Employees currently engaged

Variables

Freq n=422

Per (%)

Variables

Freq n=422

Per (%)

No of employees







No of employees







1-4

295

70

10-13

256

61

5-9

60

14

14-17

75

18

10-14

52

12

18-21

67

16

15-19

11

3

22-25

13

3

20 and above

4

1

26 and above

11

3

Total

422

100

Total

422

100

Source: Field Survey, 2007

The number of employees at the start of the business and the current number are cross tabulated and represented in the figure below. Entrepreneurs in the study that started business with 1-5 employees had a higher rate of labour tunrnover when compared to those that started their business with more than five employees. Figure 20 also shows that the number of establishments that had 6-10 employees rose from less than two hundred to above two hundred considering all the sectors used as case study of the research work. Graphically the above Table 45 can be represented in a figures as below.


F

igure 20: Number of Employees at Start and Current number of employees






6-10

< 20

11-15

16-20

1-5

300

500

400

200

Counts


Estimated Value of Initial Capital at the Commencement of the Business and at Present

Looking at the value of initial capital of the business at commencement, it can be seen from Table 47 that 260 (62%) of the respondents started their business with an amount that is below N50,000, 71 (17%) started their business with amount between N50,999 and N100,000, 41(10%) of them started their business with N150,999-N200,000, 23(5%) of them had the estimated value of their initial capital to be between N150,999-to N200,000, while 27(6%)of them started their business with N2,000,999 and above. On the other hand, 257(61%) of the respondents’ capital had grown to N1m, 73(17%) of them had their present capital stood at N1m- N5,000,000, 49(12%) had their capital to be N5,999,999-N10,999,999, 27(6%) of them had an amount of N10,999,999- N15,000,000 as their present capital while 16(4%) of them had N15,000,999 and above as their capital at close.


Table 47: Estimated Value of Initial Capital at the Commencement of the Business and at Present

Initial capital at the Commencement

Capital at Present

Variables

Freq n=422

Per. (%)

Variables

Freq n=422

Per (%)

Below N50,000

260

62

Below N1m

257

61

N50,999 – N100,000

71

17

N1m – N5, 000,000

73

17

N100,999 – N150,000

41

10

N5, 000, 999 – N10, 000,000

49

12

N150,999 – N200,000

23

5

N10, 000,999 – N15, 000,000

27

6

N200,999 and Above

27

6

N15, 000,999 and Above

16

4

Total

422

100

Total

422

100

Source: Field Survey, 2007
The estimates of initial capital of the business and the current capital are cross tabulated and represented in the figure below. The diagram shows women entrepreneurs that started with less than fifty thousand and those who had fifty thousand as capital at present decreased tremendously. However the capital continued to rise but not at high rate as expected. The graph shows four stages of capital investment for business at start up. (i) A step increase and a sudden sharp fall in capital investment at the beginning for entrepreneur who started with less than fifty thousand; (ii) a relatively steady investment between fifty and one hundred and fifty with (iii) elastic point at one hundred and fifty follows by (iv) a steady increase in investment at two hundred thousand. In the same vein, the current capital investment from less than fifty to one hundred and fifty thousand shows steady increase in four stages with an elastic point at 200 thousand where it declines. This can also be represented in a figure as in Figure 21.

F

igure 21 Estimate of Initial and Current Capital




50-100

>200

>100-150

>150-200

<50

300

500

400

200

Counts

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