Table 59 below shows different environmental factors that are likely to motivate women entrepreneurs. Seven environmental factors seem to have the highest mean score. Most women entrepreneurs believed that accessibility to finance (with a mean score of 3.8313) in their environment influenced their establishment of business. Secondly, most of them identified the involvement in job creation in their environment (mean score =3.8037) as reason, behind their going into business this is followed by the desire to make contribution to their immediate environment with a mean score of 3.7685, the accessibility to their customers and suppliers had mean scores of 3.6770 and 3.6656 respectively. Desire to take advantage of business opportunity and not to be among the unemployed in their environment with mean scores of 3.5925 and 3.5851 respectively. also motivated many of them to go into business. Few of them cited infrastructural facilities as a motivator.
Table 59: Entrepreneurs and Environmental Factors
Accessibility to finance required for my Business encouraged me to start
Accessibility to labour for the business couraged me to start this business.
Accessibility to my suppliers encouraged me to start this business.
Accessibility to the market encouraged me to start this business.
A conducive environment encouraged me to Start this business.
I wanted to make contribution to my Community, this led me to start
I started the business because of availability of support services such as; incubators etc.
I started this business because I wanted to be involved in job creation in Nigerian economy.
Nobody is doing this type of business in my community that is why I started it.
Accessibility to networking /association on this Type of business
encouraged me to start it
I would have still be in business even if I was not making enough profit.
Accessibility to customers encouraged me to start this business.
My friends are into this type of business.
The uncertainty of Nigerian business environment led me into to this
I did not want to be among the unemployed, hence I started this
My movement into the city encouraged me to start this business.
Deregulation policy encouraged me to start This business.
Desire to take advantage of positive business opportunity made me to
Accessibility to electricity encouraged me to Start this business.
Accessibility to good road encouraged me to Start this business.
Accessibility to transportation encouraged me to start this business.
Source: Field Survey, 2007 The issue of environment factors in relation with what motivated women entrepreneurs into business was looked at under the interview section, majority of them were of the opinion, that environment whether good or bad has a way of motivating someone to go into business. According to the result obtained form the survey study, 86% of the respondents agreed that bad environment helps someone to go into business than good environment. “ Good environment has a way of making someone to over relax while bad government can make you to think better on how to survive.”
Motivation and Business Performance
Table 60 below shows different perceptions that women entrepreneurs held about the reason for better performance or otherwise of businesses being owned by them. There are six prominent perceptions, many of them believed that their business is growing because of their inputs, competence and special marketing skills. Most women entrepreneurs believed that they are hard working and this has resulted in better performance in their business in terms of their financial investment. This is shown in the mean score which is the highest at 4.0864. This is closely followed by the perception that their personal income have increased since they started their own business with a mean score of 3.8847. This is also followed by other itmes such as, ‘business expansion as a result of the input of extra hours in their business’ with a mean score of 3.8696, increase in business profitability because of their personal involvement in business, with a mean score of 3.8179, increase in business revenue with a mean score of 3.7516 and increase in return on share with a mean score of 3.7304.
Source: Field Survey, 2007 The views of the respondents were also sought on the relationship between the entrepreneurial motivation and performance. Seventy five percent of them (75%) of the women entrepreneurs interviewed were of the opinion that their performance in business is a function of what motivated them to start the business. Variables used in measuring performance include; (i) Revenue, (ii) Profit (iii) Value of asset (iv) Number of employees (v) investment in cash or in asset and (vi) sales volume. It was discovered that the women entrepreneurs who were intrinsically motivated measured their performance in terms of income received, profit made and personal investment while those that are extrinsically motivated measured their performance using variables such as sales volume, number of employees and amount of asset acquired. Below are some of their views on the relationship between motivation and performance. According to one of the respondents, “I personally, started business because I wanted to have control over my money and assets. Any time I remember this, it makes me to work harder” (Fieldwork, 2007). Another women interviewed also emphasized that the numbers of employees have tremendously increased, the reason for that is
because I am fully involved in the business and this actually is what I was expecting before starting this business. I formerly worked where there were few employees and not only that, the employee turnover was very high. I made up my mind that if I have opportunity to start my own business, my focus will be how to attract more employees and retain them as my business grow ( 39 years old involved in Pure Water manufacturing at Ibadan North, Oyo State)
Challenges to Women Entrepreneurial Development
Table 61 below identifies challenges to women’s entrepreneurial development. The strongest of them is competition which has a mean score of 3.7116. This might be as a result of many businesses springing up to pose as a challenge once a business is started and hence they become a barrier to the business expansion. Second to this is the fact that the challenges other women are facing in business seems to be a motivator to most women under this study survey with a mean score of 3.5171. Another major challenge facing women entrepreneurs is finance with mean score of 3.2736. This is probably because of the poverty level in the country. This is followed by family related problems and sexual harassment with mean scores of 3.2672 and 3.1442 equally cited as challenges they face in the course of doing their businesses. Other factors include lack of financial skill and the nature of business with mean scores of 3.0658 and 3.1406 respectively.
Table 61. Challenges to Women Entrepreneurial Development
I anticipated competition and customers’
complaints before I started this business.
Lack of access to finance have been my major
Challenge since I started this business.
I am facing financial challenge because of my lack of financial
skill before I started this business.
I am facing these challenges because of the nature of the business that I am into.
The rate of labour turnover in my business is high because I did not consider it a problem before starting my business.
One of the challenges I am facing in business is sexual harassment from the opposite sex.
The role I play in my family is a challenge to my business.
The challenges facing women entrepreneurs motivated me to start this business
Source: Field Survey, 2007 On the issue of how the entrepreneurs perceived the relationship between the factors that motivated them into entrepreneurship and the challenges they were facing in business, 81% of them were of the opinion that the challenges women face in business depend on what motivated them into business. The following were mentioned by some of the women interviewed as the major challenges they face in business;
lack of inance and capital to run the business, lack of power supply, lack of good infrastructural facilities, bad government policy and governance, high competition from men, sexual harassment, lack of family support, lack of managerial skills, customers’ complaints, inability to separate business from private life, stress and tension associated with business, unstable income (Responses from the women entrepreneurs interviewed).
They mentioned the following challenges to be likely associated with people that were pushed or forced into business; (i) lack of managerial skills (ii) lack of experience (iii) inefficiency (iv) stress and (v) customers dissatisfaction. While according to them, the challenges that can be associated with those that were pulled into business are (i) excessive wastes of resources (ii) high rate of labour turnover, (iii) over reliance on outside opinion (iv) ineffectiveness in the use of materials and other resources. This was confirmed by a response from one respondent;
personally, I went into business because I lost my job and because I needed something urgently to do, I did not take time to get prepared, and as a result all the money I borrowed to start the business suddenly disappeared. If not for the mercy of God and for my husband, this business would have been a story today and I know a lot of women are having similar experience in their business (34 years old women in saloon business in Agege, Lagos).
Motivation and Entrepreneurs’ Type of Business Ownership
Table 62 below identifies motivation for choice of business among women entrepreneurs. The strongest of the items is “I chose this type of business because it is the type of business most people around me do” with a mean score of 4.7729 and standard deviation of 1.78561. No wonder, competition was identified as the major challenge being experienced among women entrepreneurs. This is followed by “I chose this type of business because it will enable me to achieve self independence”, this has a mean score of 4.0835 and a standard deviation of 1.04961. Need for independence equally was given as one of the reasons why many women under this survey go into business. See Table 58 The third is family issue with a mean score of 3.9164 and the standard deviation is 1.05574. This is not surprising because women usually consider their family as an important factor in most of their activities. This is followed by other factors such as quality of life with a mean score of 3.8196 and a standard deviation of 1.98031, the peculiarity of business to women with a mean score of 3.6906 and a standard deviation of 1.07501. Others are possession of personal characteristics required for the business with a mean score of 3.6604 and a standard deviation of 1.07501, then the issue of convenience which has a mean score of 3.6019 and a standard deviation of 1.08572 followed by “I chose this type of business because the registration process is very easy”. This has a mean score of 3.5552 and a standard deviation of 1.45999. This is followed by “I chose this business because it does not require too much capital to start” with a mean score of 3.4907 and standard deviation of 1.02382, followed by “choosing a business to prove that they can do what any man can do”; this has a mean score of 34441 and a standard deviation of 1.14532. This is however very surprising because self-achievement is the number two reason why women under this study went into business. See Table 58.
Table 62: Motivation and Entrepreneurs’ Type of and Business Ownership
I chose this type of business because it will enable me to achieve self independence
I chose this business because it will enable me to be involved
in the family decision making process.
I chose this business because it does not require too much capital to
I chose this business because I have personal characteristics in line with this type of business.
The government is supporting this type of business that is why I started it.
I chose this type of business because it is the Type of business most
people around me do.
I chose this type of business because it is convenient for me as a woman.
I chose this type of business because the risk Involved is relatively
I chose this type of business because it does Not require too many
Employees to run it.
I started this type of business because it is peculiar to women.
I started this type of business because I wanted prove that I can do
what a man can do.
I chose this type of business because it is peculiar to my family.
I chose this business because it will improve my quality of life.
I chose this type of business because the registration process is very easy.
Source: Field Survey, 2007 Responding to the question of what motivated them to choose thieir type of business; 69% of them responded that in most cases people choose the type of business that is most convenient to them especially, sole proprietorship. The reason(s) why they started business in most cases determine the type of business they do. Whether it is one man business, partnership or company, it has something to do with the reason why people go into business. This was substantiated by the comment from one of the respondents. “Me, I decided to go into sole trade business because it will give me time to take decision on my own without asking anybody questions especially in the area of money spending” (Fieldwork, 2007). Another respondent agreed that she went into one man business because of lack of funds. “When I lost my job I did not have enough money and I did not have anybody to borrow money from, so I started with what I had” (Fieldwork, 2007).
4.3 Hypotheses Testing
Five hypotheses were raised and tested in this study using appropriate statistical tests. The first hypothesis sought to differentiate between motivational patterns across different business sectors operated by women entrepreneurs. One way Analysis of Variance (ANOVA) and Correlation Coefficient were used to test this. The second hypothesis sought to identify the relationship between the factors that motivate Nigerian women entrepreneurs and their business performance; Correlation Coefficient and Pearson Chi-square were used . The third, fourth and fifth hypotheses predicted challenges facing women entrepreneurs, their type of business ownership and the environmental factors that could affect women entrepreneurs using motivation factorial indices. Correlation Coefficient was used for testing these hypotheses.
The first hypothesis tested in the study states that different factors do not motivate
women entrepreneurs across different industrial sectors in the South-West Nigeria
Table 63: Summary of Correlation Coefficient between the factors that Motivate Nigerian Women Entrepreneurs Across Different Industrial Sectors of the South-West Nigeria. (n=422)
Variables 1 2 3 4 5 6 7 8
Family - 0.67* 0.72* 0.58* 0.18 0.72* 0.88* 0.34*
Psychological - 0.42 0.66* 0.71* 0.59 0.64 0.62
Financial - 0 .61 0.51* 0.96 0.71 0.66
Environmental - 0. 85* 0.79 0.58 0.51
Agricultural - 0. 42 0.48 0.32
Manufacturing - 0.33 0.21
Trade - 0.65
P<0.05 (2-tail test)
Source: Field Survey, 2007 Table 63 above indicates positive relationship among each of the motivational patterns and SMEs sectors of the South-West Nigeria. Among these relationships, eight of them are very high. These are the coefficient relationships between financial factor and manufacturing sector (0.96), family influence and trade sector (0.88), environment factor and agricultural sector (0.85), environmental factor and manufacturing sector (0.79), family and manufacturing sector (0.72), psychological factor and agricultural sector (0.71), financial factor and service sector (0.66) and psychology factor and service sector (0.62). The result revealed that there is a high positive correlation between the motivational patterns and SMEs sub-sectors, except family, which shows a very low significant relationship with agricultural sector at r=0.18. The reason for this might probably be that a lot of women with families see agriculture as not the best type of business that will allow women to show off as their personal achievement since majority of them started business because of their desire for self-achievement.
Table 64: Summary showing the Analysis of Variance between the factors that Motivate Nigerian Women Entrepreneurs across Different Industrial Sectors of the South West Nigeria.
Source: Field Survey, 2007 *significant P<0.05
Keys to Abbreviation: SS- Sums of Square, Df- Degree of freedom, MS- Mean Square, F-F-value
Table 64 above has six columns. The source of variation column which is - source of variance for Between the mean, Within the mean and Total; column for Sum of Square; degree of freedom; Mean Square, F-value and Significance. Table 64 shows that the F-value is the Mean Square between (1561.48) divided by the Mean Square within (71.109), yielding F=21.958. The p-value associated with this F-value is very small (0.015). These values are used to answer the question "Is there significant difference between the independent variables and dependent variable?” The p-value is compared to the alpha level set at 0.05 and, if smaller, one can conclude that "Yes, there is a significant difference between the independent variables and dependent variable and if otherwise then the research hypothesis will be retained. In this study, the ANOVA result reveals that different motivational patterns exist among women entrepreneurs across different industrial sectors of the South-West Nigeria at F (3,422) = 21.958, and 0.05 significant level. The null hypothesis one is therefore rejected and the alternative hypothesis is acceptable.
There is no significant relationship between the factors that motivate Nigerian women entrepreneurs and their performance in SMEs sub- sectors.
Table 65: Summary of Correlation Coefficient between the Factors that Motivate Nigerian Women Entrepreneurs and their Performance in SMEs Sub- Sectors
Variables 1 2 3 4 5
Family - 0.72* 0.64 0.62 0.12
Psychological - 0.66* 0.71* 0.66
Financial - 0.51* 0.74
Environmental - 0.61
P<0.05 (2-tait test)
Source: Field Survey, 2007
The magnitude of a correlation indicates how strong a relationship that exists between variables is. Factors that motivate Nigerian women entrepreneurs are clearly associated with performance in SMEs sub- sectors as indicated in Table 65 above. The magnitude of this correlation is r=0.12, 0.66, 0.74 and 0.61 for family influence, psychological, financial and environmental factors respectively. The figures in Table 65 show that the coefficient of correlation between the independent variables (motivational factors of women entrepreneurs) and their performances are positively related. From the above table, the factor that exact strongest relationship among other factors is the financial factor (0.74). This is not surprising because researchers have proved that majority of women entrepreneurs start their businesses so as to earn extra income in order to support their family. This is followed by the psychological and environmental factors which yeiled 0.66 and 0.61 respectively. Looking at the result in Table 65, it can be deduced that although family influence has a significant relation with business performance, the relationship is very weak (0.12). The weakness in the relationship between women entrepreneurs and their entrepreneurial performance probably could have caused by the weight of family responsibility on women entrepreneurs under the survey. This also revealed that once women start their own busienss, they always have the problem of coping with family issues. This implies that the null hypothesis of no signifiant relationship between the factors that motivate Nigerian women entrepreneurs and their performances in SMEs sub sector cannot be sustained. The alternative hypothesis which states that there is significant relationship between the factors motivate Nigerian women entrepreneurs and their performance in SMEs sub-sector is therefore accepted.
Table 66: Summary of X2 Showing relationship between the Factors that Motivate Nigerian women entrepreneurs and their performance in SMEs Sub- sectors
Variables Value df Assump.Sig
Motivational Patterns 82.626 3 0.002
Performance in Sub-sector 2.048 3 0.014
Source: Field Survey, 2007 Pearson´s Chi-square test (χ²) was used in bivariate analyses to determine the significances of the interdependence between these variables, such as Motivational factors (family, psychological, financial and environmental) and entrepreneurial performance. It was used to test the dependence of entrepreneurial performance of women entrepreneurs in different sub-sectors and motivational patterns. Stratified analysis was used when evaluating the effect of background variables on the correlations between performance and motivational patterns and the significance of the value level on the associations between these variables were analyzed. In this analysis, the X2 calculated =82.626 at 3 degree of freedom and 0.002 significant level. Since the X2 calculated = 82.626 is greater than X2 tabulated = 0.0717, the null hypothesis which states that there is no relationship between motivational factors and women entrepreneurial performance is rejected while alternative hypothesis is accepted. This implies that there is a significant relationship between the factors that motivate Nigerian women entrepreneurs and their performance in SMEs sub- sectors
Motivational factors do not determine the type of challenges women entrepreneur face in business. Table 67 Summary of Correlation Coefficient between the Factors that Motivate Nigerian Women Entrepreneurs and Challenges Women Entrepreneurs face in Business.
The primary meaning of the coefficient of correlation lies in the amount of variation in one variable that is accounted for by the variable it is correlated with. The correlation coefficient for this study reveals a significant relationship among the motivational factors and challenges women entrepreneurs face in business. The result from the testing of Hypothesis 3 shows that the factors that motivated Nigerian entrepreneurs (family influence, psychological, financial and environmental) and the challenges they face in business exhibit moderate positive values with family factor having the highest influence of 0.55, followed by environmental factor (0.52), psychological and financial factors with values 0.39 and 0.42 for respectively. The highest value exhibited by the family factor is an indication that majority of the respondents are married and are probably finding it difficult coping with their family issues and business activities. Also financial factor recorded the least value of 0.39. This probably may be as a result of the financial support the married women entrepreneurs are receiving from their husbands. This confirmed why majority of them did not see finance as the main challenge they are facing in their business. See Table 61. In likewise perspective, the null hypothesis which states that motivational factors do not determine the challenge women entrepreneurs face in business is rejected in preference for the alternative hypothesis.
Motivational factors do not determine women entrepreneurs’ type of business ownership.
Table 68 Summary of Correlation Coefficient between the Factors that Motivate Nigerian Women Entrepreneurs and Type of Business Ownership.
Variables 1 2 3 4 5
Family - 0.89* 0.74 0.66 0.64
Psychological - 0.68* 0.74* 0.55
Financial - 0.50* 0.54
Environmental - 0.77
Type of business ownership -
P<0.05 (2-tail test)
Source: Field Survey, 2007 Table 68 shows that motivational factors determine women entrepreneurs’ type of business ownership. From the above, it is apparent that the null hypothesis which stated that motivational factors do not determine women entrepreneurs’ type of business ownership is not acceptable. This is because there is a positive relationship between the family, psychology, financial, and environmental factors with the type of business owned by women entrepreneurs under this study. The coefficient result revealed that the strongest influence is the environmental factors with the value of 0.77. This is followed by family influence with the value of 0.64, then the psychological and financial factors with the values of 0.55 and 0.54 respectively.
The highest value of the environmental factor confirmed the results in table 61and 62 where majority of the respondents see competition as their major challenge in business and a lot of them entered business because their friends and neighbours are doing the same type of business. Family influence as the second highest value among the factors that determine the type of business ownership among women entrepreneurs is an indication that most women under this study are doing their family business or are in partnership with their husbands. The financial factor’s least value of 0.54 is an indication that most of the women entrepreneurs under this study did not start their business because they obtained financial assistance from the financial institutions or from their relations. This contradicts the accessibility to finance as the major environmental factor that attracted them to entrepreneurial activities. The finding implies that motivational factors determine women entrepreneurs’ type of business ownership.
There is no significant relationship between the environmental factors and women entrepreneurial motivation.
Table 69: Summary of Correlation Coefficient between Environmental Factors and Women Entrepreneurial Motivation
Source: Field Survey, 2007 The coefficient of correlation specifies that the amount of variation in one variable that is accounted for by the variable it is correlated with. Table 69 revealed the existence of moderate positive relationship between the environmental factors and women entrepreneurial motivation. The coefficient for this study reveals a significant relationship with values of 0.52, 0.42, 0.60 and 0.39 for access to finance, family and community support, business support services and government policy (environmental factors) respectively with the factors that motivate women entrepreneurs. The above result shows that all the environmental factors have positive relationship with the women entrepreneurial motivation but among these factors, the result shows that access to finance (0.52) and support services (0.60) have the highest tendency of motivating women into entrepreneurship. This also confirmed the result in Table 58 where accessibility to finance was seen as one of the major factors that motivated women into entrepreneurship. The lowest value of 0.39 that occurred between government policy (as an environmental factor) and women motivation revealed that some of the government policies in Nigerian business environment are not favourable to women entrepreneurs. As a result, a lot of them are discouraged from starting their own businesses.
4.4 Women Entrepreneurial Traits and Environmental Factors
To find out the relationship between women entrepreneurial traits and environmental factors, related items were used to further explain the dependent and independent variables. The four items (access to finance, family and community support, availability of support services and government policy) used in measuring the independent variables were maintained while nine most commonly used entrepreneurial traits were employed in measuring the dependent variables. These include; risk taking propensity, desire for achievement, tolerance for ambiguity, desire for independence and freedom, creativity and innovation, internal locus of control, competitiveness, self- confidence and energy and strength. The potential correlation between entrepreneurial traits of women entrepreneurs and environmental factors were then examined with a correlation analysis. The aggregate variables of these two variables were then placed in a correlation matrix.
Table 70: Correlations between Entrepreneurial Traits and Environmental Factors
Accessibility to finance
Tolerance for ambiguity
Creative and innovative.
Internal Locus control
Energy and strength
* Correlation is significant at the 0.05 level (2-tailed)
* * Correlation is significant at the 0.01level (2-tailed)