Chapter one introduction 1 Background to the Study


The Concept of Entrepreneurship



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2.1.3 The Concept of Entrepreneurship


There seems to be lack of consensus on the definition and meaning of the word entrepreneurship. This makes it imperative for researchers to provide a clear statement on the meaning of entrepreneurship when used. As Bygrave and Hofer (1991) rightly observe that lack of a common conceptual framework for the concept of entrepreneurship affects the researchers in having concession on its definition. The concept of entrepreneurship has a complex tradition within economic theory and any attempt to formulate a succinct definition will inevitably exclude a valuable element of this history (Bygrave and Hofer, 1991). The definition of entrepreneurship therefore lacks a common language. Different authors, institutions and agencies define entrepreneurship differently based on the circumstances and fundamental issues surrounding the person/institution. Byrd, (1987) was right when he asserted that “there are almost as many definitions of entrepreneurship as there are scholars and books on the subject”.
On the contrary, Long (1983) thinks differently. According to him it is important to have a common definition of entrepreneurship so as to give it a conceptual basis. In an attempt to provide a common language for definition of entrepreneurship, Long (1983) provided an historical background of the development and uses of entrepreneurship. Murray (1938) and McClelland (1961) defined entrepreneurship from the concept of “achievement of needs”. According to McClelland (1961), entrepreneurship is “a dynamic process created and managed by an individual, the entrepreneur, who strives to exploit economic innovation to create new value in the market toward achieving a particular need.” In an attempt to offer a definition that is suitable for an indigenous setting, Akeredolu-Ale (1975) viewed entrepreneurship from three categories of factors which influence the development of entrepreneurship. These include; individual-personal attributes of the entrepreneurs themselves, and the socio-cultural determinant of the such attributes, intra-firm/organizational factors, (especially organizational structure, organizational functions) and the overall social and economic environment. Okotiki (1987) looked at entrepreneurship in the form of the determinant of its development and creation in the newly industrial country, or analysis that showed education, family background capital outlay and level of previous experience and level of exposure to be significantly associated with its human development
According to Jones and Sakong (1980) Entrepreneurship is “a force that mobilizes other resources to unmet market demand”. Ronstadt (1984) on his part defined entrepreneurship as “the dynamic process of creating incremental wealth”. He went further to explain that wealth is created by individuals who assume the major risks in terms of equity, time and/ or career commitment or provided value for some products and services, which may or may not be new or unique but value must somehow be infused by the entrepreneur through receiving and allocating the necessary skills and resources. Stevenson and Gumpert (1985) also defined entrepreneurship as “the process of creating value by pulling together a unique package of resources to exploit an opportunity.” Gartner (1989) and Low and Macmillan (1988) define entrepreneurship as the creation of new enterprise. Defining entrepreneurship according to purpose and goal, Bygrave and Hofer (1991) defined entrepreneurship as “a process of creating of a new organization and to pursue it”. According to them, the process of entrepreneurship involves all functions, activities and action associated with the perceiving opportunities and the creation of organizations to pursue them. Petrin, (1994) also defined entrepreneurship as an innovative activity that needs not involve anything new from a global or even national perspective, but rather the adoption of new forms of business, business organizations, new technologies and new enterprises producing goods not previously available at a location. Timmons (1995) defined entrepreneurship “as the ability to create and build something from practically nothing”. Entrepreneurship as an innovative activity (Schumpeter, 1934) usually involves the adoption of new products, processes, new technologies, new enterprises and new methods.
On this note, Schumpeter (1954) and Parboteeach (2000) defined entrepreneurship or the function of entrepreneurs as “to reform or revolutionize the pattern of production by exploiting an invention or more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products by reorganizing an industry and so on.” Chung and Gibbons (1997); Stopford and Baden-Fuller (1994); Zahra, (1996); Sharma and Chrisman (1999) cited in Parboteeach (2000) attempt to propose a converging definition is notable. They define entrepreneurship as encompassing “acts of organizational creation, renewal, or innovation that occur within or outside an existing organization”. Dollinger (2003) in support of entrepreneurship as organizational creation, affirms that “it is the creation of an innovative economic organization ( network of organizations for the purpose of gain or growth under conditions of risks and uncertainty”. In support of these definitions, Ige (2007) conclude that entrepreneurship is a predisposition towards the establishment and operation of business ventures by any one or group or persons, including government for the sake of making profit or social surplus in order to accumulate wealth, social or real.

The above definitions can continue on and on without any conclusion but one thing is certain, each of these definitions, adopted different approach to the definition of entrepreneurship which suggested that entrepreneurship is more of a process of becoming than a state of being (Bygrave, 1989 and Jones 1997). The key elements which represent the activities of entrepreneurship, used for defining it include; risk taking, innovation, need for achievement, locus of control, process of wealth creation, creation of value, identification of an opportunity, market stabilizing force, ability to start new business and managing it effectively, provision of resources, profit maximization, ability to recognize un-exploited dis-equilibrium, owing and operating a business. Based on the above criteria, entrepreneurship can therefore be defined as the combination of production factors to produce new products and services in pursuance of an identified business opportunity for either profit maximization or for social service.



Historical Perspective of Entrepreneurship

The history of entrepreneurship can be traced as far back as 800 years, to the French word “entreprendre” meaning ‘to do something’ or to go between’ in a military expedition. It took over three hundred years for the word to be used as English word. The concept of laissez-fair capitalism propounded by Adam Smith which permitted free entry and free exit of the merchants to the market actually helped in the development of entrepreneurship. However, prior to Adam Smith, different people had been identified to exhibit the characteristics of an entrepreneur. For instance;



(i) Earliest Period: During this period, a good example of an entrepreneur (who acted as a go-between) was Marco Polo who attempted to establish trade route to the far East. As a go –between, he would sign a contract with a venture capitalist to sell his goods. As a merchant, he undertook the risk involved in the adventure both physical and emotional aspects.

(ii) Middle Ages: Middle ages, according to Hisrich, Micheal and Shepherd (2005) is the periods of European history from the fall of the Roman Empire (476 BC) to the late 15th Century. The middle ages used the word entrepreneur to describe both an actor and a person who managed large production projects who may not necessarily be a risk taker but a manager of a project using the resources provided to him. An entrepreneur was also seen as an architect or a handler of government contract.

(iii) 17th Century: This century witnessed the gradual application of the entrepreneurial concept to business development. This was used in connection with profit according to John Law, a notable French businessman who established the Royal Bank. During this period, Richard Cantillion (1725) an Irishman, first adopted the word entrepreneur to describe a risk bearer when he observed that farmers, merchants, craftsmen and others actual buy their goods at a certain known price and sell at unknown price bearing the risk involved. He used entrepreneur to mean a self-employed person with a tolerance for the risk he believed was inherent in providing for one’s own economic well being.

(iv) 18th Century: In the 18th century, entrepreneurship began to assume a greater application to business and business environment particularly as capital or fund demander or users. According to Hisrich, Micheal and Shepherd (2005), this period coincided with the industrial era. Many inventors such as Thomas Edison, Whitney and others were identified as entrepreneurs. Here, the inventors attempted to produce or turn their inventions into products in commercial quantities but lacked the capital to do so. This created a situation where a capital/fund provider became separated from the fund or capital demander. The demanders in this case are the entrepreneur. In this century, the concept of entrepreneurship was viewed as capital demander or users. One who makes use of capital for his invention for commercial purpose. Two levels of profits were then recognised. Towards the beginning of the Industrial Revolution in 1830, theorists further expanded the definition of a successful entrepreneur to include the possession of managerial skills. Under this period, Jean Baptize Say was able to separate profits of entrepreneur from profits of capital. The profit of capital goes to the fund providers while residual profit goes to the entrepreneurs.

(v) 19th Century: In the 19th century, the concept of entrepreneur assumed economic and managerial perspectives. The entrepreneur was seen as someone who combines the factors of production (such as land, labour, capital, information and personal initiative, skill and ingenuity) for profitable rewards.

(vi) 20th Century: The concept of entrepreneur in 20th century was that of an innovation. Schumpeter was one of those who introduced the concept of innovation. Innovation means the introduction of new methods, new machines, new materials, new market, new products and new organisational structure. According to Hisrich and Peters (1985) the entrepreneur is viewed “as an innovator; an individual who develops something that is unique.” They pointed out that the function of the entrepreneur is to reform or revolutionise patterns of production or production process.

(vii) 21st Century: The Concept of an entrepreneur in 21st century was further expanded. For instance, McClelland (1961) sees an entrepreneur as someone who is out to satisfy identified needs. He classified these needs as; need for achievement; need for power and need for affiliation. Among these needs, desire or need for achievement is more relevant to entrepreneurship. He sees an entrepreneur as someone who has desire for achievement of a particular need (‘n’ achievement). An entrepreneur is always seen as an achiever. These may include the following needs viz; (i) to obtain or attain some height in someone’s business pursuit (ii) to experiment something new in business (iii) to accomplish a particular task and (iv) to escape an unpleasant situation. Shapero (1975) sees an entrepreneur as someone who exhibits a kind of behaviour which includes: (i) taking initiatives. (ii) organising and re-organising social and economic mechanisms to turn resources and situations to practical profitable ends and (iii) acceptance of risk or failure. Vesper (1980) viewed an entrepreneur from the following perspectives: (i) the economist perspective (ii) the psychologist perspective (iii) the business perspective (i)The economist sees an entrepreneur as someone who combines resources such as labour, materials and other assets together, introduces changes, innovations and new orders for a profitable and rewarding ends. (ii) The psychologist on the other hand sees an entrepreneur as someone who is being driven by certain forces. (iii) The business man sees an entrepreneur as someone who maximizes profit. The history of entrepreneurship can be summarized in a table as below;
Table 16: Summary of the Historical Perspective of Entrepreneurship

Period

Contributors

Date

Concept

Earliest Period

Marco Polo

800 B.C

An Entrepreneur acted as a go-between

Middle age


John Law




An Entrepreneur was seen as an actor

17th Century


Richard Cantillion




Entrepreneur as a risk bearer.


18th Century





1725

Entrepreneur was seen as a self employed person.


19th Century

Jean Baptize Say


1803

Entrepreneur was seen as some one who separated profit of capital and profit of entrepreneur

Person that possess some managerial skills






Francis Walker

1876

Birth of venture capital.




Knight, F

1921

Entrepreneur as someone who specializes in bearing residual risk

20th and 21st Century

Schumpeter

1934

Entrepreneur as an innovator




David MacCllend

1961

Entrepreneur was seen as a personal achiever




Peter Drucker

1964

Entrepreneur as a maximizer of opportunity/wealth




Albert Shapero

1975

Entrepreneur was seen as one that takes initiatives and organizes social economic mechanism.




Karl Vesper

1980

Entrepreneurship was seen from different perspectives.




Gifford Pinchot

1984

Introduction of the concept of intrapreneurship




Kirzner

1984

Entrepreneur as a specialist in exploiting profit opportunities including arbitraging price differentials




Robert Hisrich

1985

Entrepreneurship was seen as the process of creating something of value.




Reich

1987

Entrepreneurship and Managerial competencies.

Source: Hisrich (1995) redesigned by the researcher
Who is an Entrepreneur?

According Schumpeter (1954) being an entrepreneur is not a profession and entrepreneurs do not form a social class…This makes it very difficult to define an entrepreneur as a functional economic group or to classify one set of persons as entrepreneurs. Rather an entrepreneur can be seen as an element of the mechanism or agent of change. As Akeredolu-Ale (1975) rightly opined that Schumepeter’s characterization of the entrepreneurial function gives one the impression that the entrepreneur must be an unusual sort of man in that in a situation in which everyone is doing what they used to do before, an entrepreneur emerges and innovates. In order to provide a definition to the word ‘entrepreneur’ Carland, Hoy, Boulton and Carland (1984) defined an entrepreneur as “an individual who establishes and manages a business for the principal purpose of profit and growth”. Bagby (1988) also sees an entrepreneur as “a person that utilizes the opportunity of instability, turbulence, lack and change to produce something new or modifies an existing one for profit motive”. Gartner (1989) defined an entrepreneur as “someone who creates an organization”. Herbert and Link (1989) viewed an entrepreneur as “a person that has some comparative advantage in the decision making process either because he or she will have better information or different perception of events or opportunities”. They also defined an entrepreneur as “an individual whose judgment differs from the norms”. Pickle and Abrahamson (1990) saw an entrepreneur as “one who organizes and manages a business, undertakes and assumes the risks for the sake of profit”. The entrepreneur evaluates perceived opportunities and strives to make the decisions that will enable the firm to realize sustained growth”.

Envick and Langford (2000) defined an entrepreneur as “someone who owns and operates his/her own business”. Stevenson and Jarillo, (1990) and Parboteeach (2000) define entrepreneurs as individuals who "pursue opportunities without regard to the resources they currently control" According to Thomson (2002) entrepreneurs are individuals who survey their potential business environment, identify opportunities to improve it, marshal resources, and act to maximize operational opportunities. In support of the above, Fasua (2007) concluded that an entrepreneur is: a middle man; creative person; a person who perceives and is alert to opportunities; a special person; an innovator; a resourceful and original person; an imaginative person; a risk taker; a reward seeker and a coordinator of resources. From the above definitions, entrepreneurs are enterprising individuals who show a readiness to take risks and to start a new or an old business with some modifications towards meeting identified needs in their immediate environment.

Types of Entrepreneurs

Entrepreneurship is clearly a complex and multifaceted phenomenon (Grafisk 2000). Recent changes in the exonomy and the restructuring of labour markets in terms of employee qualifications, nature of work contents and work contracts have rasied the profile and importance of entrepreneurship within the global economy and and this has resulted into different types of entrepreneurs (Minniti and Arenius, 2003). Different theorists and authors have classified entrepreneurs in different was ways. Timmons (1978) classified entrepreneurs crasfiman and opportunistic; Vasper (1980) classified entrepreneurs into economic, philosophy, business, political, communistic and social entrepreneurs; Minniti and Arenius (2003) classified entrepreneurs into nascent, new, opportunistic and necessity entrepreneurs. Most elaborately, Grasfik (2000) and United Nations (2006) classified entrepreneurs into six different types which include; self-employed, traditional self employed, growth-oriented, leisure or subsistence and network entrepreneurs.

(i) The Self-employed Entrepreneur: This type of entrepreneur results from the establishment of new enterprise and the owner has the business as his primary occupation. At the initial stage of the business, the entrepreneur is both the self-employed and an entrepreneur. This type of business includes hotel business, restaurant business, trading etc.

(ii) The Traditional Self-employed Entrepreneur: This type of entrepreneur exists when someone has taken over and continues on running a personally owned enterprise and who is not necessarily an entrepreneur. This type of entrepreneurs are usually found in the service, trade and in rural district culture in occupation such as farming, building, construction, manufacturing and related occupation.

(iii) The Growth-Oriented Entrepreneur: The growth-oriented entrepreneur is usually neither registered as an entrepreneur nor as a self-employed person. The business is usually registered as a limited company and the owner is known as growth-oriented entrepreneur (United Nations, 2006). They have better prospects of survival, innovation and growth than other entrepreneurs. Kerta (1993) recognized this type of entrepreneurs as social entrepreneurs. This was in support of Burlingham (1990) who viewed this type of entrepreneur as new breed of women entrepreneurship.

(iv) The Leisure Entrepreneur or subsistence: This is the type of entrepreneur that does business that is in line with his or her hobby. He or she usually sets out at a relatively low level of activity and operates in a high risk environment. This type is usually found in all types of business with relatively low entrance barriers (Grafisk, 2000; United Nations, 2006).

(v) The Family-Owner Entrepreneur: The family enterprise is a business that is usually passed on from generation to generation. Under this type of entrepreneur, the new owners are neither entrepreneurs nor self-employeed. Founding a company is considered a natural step in the growth or reorganization strategy of an enterprise, but the subject is only referred to briefly ( Grafisk, 2000).

(vi) The Network Entrepreneur: This type of entrepreneur is usually found in all traditional categories of life. The entrepreneur under this category in most cases is project oriented and establishes the business in line with the emergence of the projects. He or she may be an employer or a project manager in one project and then enter the next project as an employee. This type of enterprise can be found in consultancy services and information technology.


However, these classifications depend on the motivational factors, gender and the sector of the economy under consideration because different motivational factors arise when the type of entrepreneurship is examined in different sectors of the economy (National Women Business Council, (NWBC) (2003). In the process of classifying entrepreneurs, GEM (2005) categorized and compared two classifications and reasons for starting a business: opportunity entrepreneurship, which is defined as perceived a business opportunity (i.e an entrepreneur elects to start a business as one of several possible career options) ; and necessity entrepreneurship , when an entrepreneur sees entrepreneurship as a last resort ( i. e this type of entrepreneurs feel compelled to start their own businesses because all other options for work are either absent or unsatisfactory (NWBC, 2003).
2.1.4 Nature, Profile, and Status of Women Entrepreneurship

Women entrepreneurs are simply women that are involved in entrepreneurial activities. They are women that have decided to take the risks involved in, combining resources together in a unique way so as to take advantage of the opportunity identified in their immediate environment through production of goods and services. Women entrepreneurs around the globe strive to maximize the utilization of their talents, in their own businesses. Majority of them are involved in micro, small and medium scale businesses which contribute more than 97% of all enterprises, 60% of the nation’s GDP and 94% of the total share of the employment (Weller, et al 1999, Mayoux 2001, Udechukwu, 2003, Ndubuisi 2004). Entrepreneurship has actually brought women into the mainstream of economic development and turned them into world changers. In support of this, Kerta (1993); Olutunla, (2001) affirmed that “as women form micro-enterprises and bring their values and concerns to the marketplace, they are changing the face of the nation’s business”.



The Profile of Women Entrepreneurs in Nigeria

Women in Nigeria account about 50% of the nation’s population yet their participation in developmental issues is very low. Women in SMEs, their role in the economy not withstanding, have very limited access to formal financial services. Ayogu (1990) emphasizing on this opined that “…women are groaning under unjust culture, beliefs and overbearing influence of a male dominated society especially in Nigeria where women are denied access to land ownership. Reacting to this, Mazrui (1991) lamented the tragedy of the marginalization and dispossession of women in general and Nigerian women in particular. He highlighted the categories of sexism that oppress women. The principles guiding the ownership of economic resources like land and property strengthened the stereotype of men dominated society in which women are suppressed or downtrodden. The worst of this being malignant sexism, which according to him ensures the complete economic manipulation, sexual exploitation, political marginalization and economic inequality of women (Anyanwu, 1993). Commenting on the role of women entrepreneurs, Weeks (2001) opined that women entrepreneurs play an increasingly important role in promoting economic growth and development. To ensure this role is accomplished, most of them rely on predatory moneylenders because of the problems they encounter in accessing credit from the formal financial institution in Nigeria (Iheduru, 2002). The traditional and conventional role of women in Nigeria most often inhibits them from having access to formal financial institution’s loans and credit. Due to their inability to meet up with the required conditions for accessing loan such as collateral security, guarantor and others, women are highly restricted from formal finance and this negatively affects their involvement in both business and national economic decision making. Their inability to access the formal financial services also hinders them from starting and expanding their own entrepreneurial activities. Sustainable development can only be achieved with the full participation of women in economic development. Unfortunately lack access to resources has somehow affected their contributions to economic development and growth. This was clearly stated in the Abuja Declaration Development that …

the deterioration of the economic situation in the 1980s has constrained government and financial institutions from allocating the necessary resources to the multiple roles of women and their access to development. Hence, women’s lack of access to resources including credit, information and technology has adversely affected their participation in entrepreneurial and economic development in Nigeria ( Iheduru, 2002).

Based on this condition and background, the magnitude of any contribution through business and entrepreneurship, however little, that woman made, make or will make towards the economic development of the country Nigeria is appreciated (Odoemene, 2003). Data from the Federal Office of Statistics revealed that the majority of women in SMEs engage mainly on agriculture, manufacturing, trade and service



Table17: Percentage (%) Distribution of Persons by Industry in Nigeria

Industry

Male

Female

Agriculture

63.0

47.8

Mining

0.1

0.0

Manufacturing

4.0

3.7

Utility

1.0

0.0

Construction

1.0

0.0

Trade

12.0

37.6

Transport

5.0

0.1

Finance

0.8

0.3

Service

14.0

10.2

Source: Federal Office of Statistics adopted from Community Women and Development (COWAD) 2004

The above table shows that majority of the women in SMEs are into agriculture (47.8%) followed by trade (37.6%), then service (10.2) and manufacturing (3.7%). In support of the above data, Fonjong and Endeley (2004) listed out some of the activities that are peculiar to women in SMEs “to include; food and fruit vendors, hair dressing, telephone call box operators, provision store operators, seamstresses, local beer parlor, inner decorators, fish smoking, roasted corn and corn selling, local wine vendor, roasted plantain selling etc.” The report on the findings of a survey conducted by Barwa (2003) revealed that women entrepreneurs under the survey were engaged in four main business sectors, that is trade, agricultural production, manufacturing and service.



The Status of Women Entrepreneurship

Half of the world’s population lives on less than $2 a day, 8 million of these people live on less than $1 a day, 70% percent of them are women (Thomson, 2002). Three hundred and forty (340) million women around the world are not expected to survive to age 40. Fifty to sixty percent (50-60%) of the workforce in developing countries works in the informal sector, with women comprising the overwhelming majority of that workforce (Weeks, 2001). Women entrepreneurs are active in a large number of enterprises and make a substantial contribution to national economies (United Nations, 2006). While women have lower participation rates in formal large enterprises, they often have higher rates of start-ups and growth in small and medium enterprises. Sectors that are traditionally dominated by women are often crowded with competitors, however, and are characterized by low productivity and low profit margins. Those sectors are also often marked by physical or cultural divides between the products and the markets. For all of these reasons, most women entrepreneurs in these traditional sectors struggle to achieve profits (United Nations, 2006). Kjeldsen and Nielson (2000) identified these sectors to predominately include agricultural, manufacturing, sercive and trade. Global Entrepreneurship Monitor (GEM) (2005) report shows that the average rate of entrepreneurship among women across GEM countries in these sectors was 8.9%. According to this report, one in every eleven women is an entrepreneur, with a wide range across the 37 GEM countries. Around the globe, women are venturing into entrepreneurship at unprecedented rate. For instance, in Thailand, more than 18.5% of women are entrepreneurs and apart from Thailand, other countries according NWBC (2003) have experienced tremendous growth in the number of women involved in entrepreneurial development as reported in the following;



Table 18. Showing the Status of Women’s Entrepreneurship

Country

Percentage (%)

India

14.1

Argentina

11.5

Nigeria

11.3

Brazil

11.1

China

11.1

New Zealand

11.0

Mexico

10.6

Chile

10.3

Korea

9.5

USA

8.1

Japan

0.6

Balguim

1.5

Russia

1.6

Croatia

1.8

France

2.1

Hong Kong

2.3

Spain

2.6

Sweden

2.6

Singapore

2.7

Slovenia

2.9

Source: National Women’s Business Council NWBC (2003)
The report shows that around the globe, certain factors act as motivation to women involvement in entrepreneurship. Among other factors, NWBC (2003) identified level of education, level of economic development, the number of men in entrepreneurship and glass ceiling as factors that motivate women into entrepreneurship. Although the number of women around the globe that are involved in entrepreneurship is on the increase, women are still much less likely to start a business than are men. In concordance with this, the report of GEM study in 2005 shows that men are about 50% more likely than women to be involved in entrepreneurial activity. Nearly one in seven men (13.9%) is an entrepreneur, compared to one in eleven women which is 8.9% (NWBC, 2003). The particularity of the business activities of most women in SMEs necessitates this research in the sectors involved. The report of Usman (2008) also shows that female entrepreneurs in developing countries are more likely found in some sectors than in others. This however depends on the country involved. The table below summaries the key features of the enterprises which include the sector of the enterprise, the size of the enterprise and the number of years in business.

Table 19: Women Enterprise Classification by Sector, Size and Year




Sectors of Enterprise Size of Enterprise




Country/Year of Survey 2002-2006

Textile

Agric

Other Man

Service

Others

Micro

Small

Medium

Large

Total

Female

Male

Angola

-

40

10

29

30

25

25

-

-

25

7.8

7.6

Benin

-

13

8

n/a

-

10

7

-

-

9

6.9

14

Botswana




-

58

56

-

56

54

-

-

55

9.2

9.3

Burkina Faso

-




-

n/a

-

-

-

-

-

29

14

15

Burundi




-

21

32

39

31

42

-

-

29

14

15

Cameroon

-




37

-

-

-

41

-

-

42

15

16

CapVerde

-

-

n/a

-

-

-

-

-

-

51

23

21

Congo

46

7

8

25

26

25

17

-

-

22

7.8

10

Egypt

21

25

20

-

-

19

19

22

24

21

22

21

Eritrea

-

-

-

n/a

-

-

-

-

-

5

22

29

Ethiopia

14

11

10

n/a

-

11

12

-

-

11

20

13

Gambia

24

-

11

36

-

27

18

-

-

25

12

9.2

Guinea-Bissau

-

-

13

11

-

18

15

-

-

14

1.0

9.9

Kenya

8




6

n/a

-

-

6

6

6

6

28

24

Lesotho

-




-

n/a

-

-

-

-

-

20

7.8

12

Madagascar

49

22

12

n/a

-

-

21

-

24

24

14

17

Malawi

-

23

15

n/a

-

-

15

-

18

18

17

14

Mali

-

30

3

n/a

-

19

11

-

-

13

8.4

13

Mauritania

-

-

6

20

11

16

20

-

-

17

7.8

9.7

Mauritius

21

-

7

n/a

-

-

9

17

-

12

26

23

Morocco

8

2

2

n/a

-

-

5

8

7

6

14.6

18.6

Mozambique

-

46

42

n/a

-

-

43

-

-

44

27

20

Namibia

-

-

17

45

19

41

32

-

-

37

9.7

11

Niger

-

-

-

-

-

12

10

-

-

11

14

16

Nigeria




-

5

n/a

-

-

3

-

-

6

28

21

Senegal

-

9

4

n/a

-

4

8

-

-

7

17

16

South Africa

15

3

10

-

-

-

12

7

8

9

15

21

Swaziland

-

-

-

48

-

38

27

-

-

39

8.2

7.9

Tanzania




9

5

n/a

-

3

10

-

-

8

14

16

Uganda

-

38

16

41

-

31

30

-

-

32

12

11

Zambia

-

15

13

-

-

-

-

20

18

14

18

19

Source: World Bank Enterprise Source 2002 – 2006, adapted from Usman (2008). Agric= Agriculture,

Man= Manufacturing



2.1.5 Characteristics of Women Entrepreneurs

Women entrepreneurs often have a special personality. They value autonomy and independence. They possess energy and a high need for achievement. Women Entrepreneurs often have a strong internal locus of control. They perceive change as opportunity and are willing to take careful risks. They usually have social skills and possess a balance between intuition and thinking. According to Gould and Perzen (1990) women business owners generally have the same characteristics and motivations with men business owners. Their entrepreneurial characteristics include adaptability, competitiveness, discipline, drive, honesty and organization (Dean, 2000), internal locus of control ( Borland, 1974; Timmons, 1978; Brockhaus, 1982; Bartol and Martin 1998, Timmons, 1998), scepticism, flexibility, impulsiveness and self-interestedness, propensity to take risks ( Mill, 1948; Ginzberg, 1955; McClelland, 1961; Welsh and White, 1981 cited in Envick and Langford 2000), leadership, readiness for change, and endurance (Buttner and Rosen 1992 and Jaimie et al ( 1998) and high tolerance for ambiguity (Bartol and Martin, 1998).
On the other hand, women entrepreneurial motivational factors that act as part of their characteristics include; the need for achievement (McClelland, 1961; Glennon, 1966; Hornaday and Aboud, 1971; Robinson, Stimpson, Huefner & Hunt, 1991 cited in Envick and Langford 2000), desire for independence, ability to control resources (Timmons, 1989; Hisrich, 1990), exposure to entrepreneurial role models, dissatisfaction with limits on their earnings and advancement, job flexibility and insatiability of wants. Women at all economic levels find it difficult to have their needs met in the working place (women wants are insatiable), hence, turning to entrepreneurship will help them to create their own opportunities.
Entrepreneurship has made women to be able to set up economic activities and build independent resources base. This advantage helps them in providing financial support for themselves towards improving their social status and decision making ability. Women in entrepreneurship enjoy a number of potential advantages such as; possession of dual characteristics; (entrepreneurial and women characteristics) which gives them extraordinary ability to carry out their role as entrepreneurs. These characteristics include the following

(a) Adaptability. Women find it easier to adapt their work to family life than their men counterparts. Adaptation to culture, behavioural norms, professional networks, and family relationships all affect the attitudes of women entrepreneurs (Birley, 1989). According to Kilby (1971) adaptability enhances entrepreneurship and women’s stability nature makes it easer for them to adapt in their environment better than their men counterpart.

(b) Innovativeness/Creativity: Women entrepreneurs are highly innovative and creative (Schumpeter, 1949; Drucker, 1985). They can easily generate idea(s), initiate business plans and nurture it to maturity stage. They are potentially creative and more innovative than men (Gumpert, 1983; Gelin, 2005). To confirm this, Annenkova (2001) affirms that several studies revealed that there are multiple general individual characteristics of women business owners that promote their creativity and generate new ways of doing things.

(c) Strength: Most women have strength and energy for multidisciplinary assignment (Timmons, 1995). This is why you are likely to see them combining many things at the same time. For instance a woman can be in business, plays the role of a daughter, a student, wife, a community developer and a mother at the same time. Hence, strength and energy are among the characteristics and unique attributes usually portray by women. Characteristics reflected in research of women entrepreneurs show that women are highly motivated, initiates actions and activities with less supervision. This is an indication of strength (Annenkova, 2001)

(d) Internal Locus of Control: Most women believe in their ability towards achieving their assigned task. They have a high internal locus of control and propensity toward achievement (McClelland, 1961; Borland, 1974; Annenkova, 2001).

(e) Ability to think fast: Women have been proved to be fast in reasoning and thinking. This is a good potential for business success. The skills involved in managing households may significantly add to women’s capabilities in thinking fast about business operations (Stevenson, 1986).

(f) Ability to endure: The potential of endurance and patience have been proved to be a requirement for achieving steady growth in business. To maintain a steady business growth, an entrepreneur must be patient. Patience as a virtue is peculiar mostly to women. Women ability to endure helps them to relate to people effectively. Women have superior abilities, compared with men in human relations or caring for people (Scott, 1986).

(g) Accountability and Credibility: Patience as a unique attribute of women helps them to be accountable and credible. It has been proved that women are more reliable and accountable in financial recordings. This is the main reason why most MFIs have more women than men as customers. For instance, report from the Grameen Bank of Bangladesh showed that the bank has over two million members; 94% of the borrowers are women, who have proven a three times better credit risk than men (Khandker, 1998).

(h) Managerial Skill: Women are unique in that they have the skills and competencies that help them to merge both business and family lives, managing both effectively and intentionally (Sarri and Trihopoulou, 2005). This confirms Birley (1989) assertion that every woman is a manager. According to him, women rely (consciously or not) on their experiences as homemakers for types of managerial experiences, even without professional experience and networks (Birley, 1989). Managerial skill is an in-born trait in women because of their peculiar nature of home keeping. Home keeping and management have made women to be better business managers. Women entrepreneurs portray personal qualities such as self-confidence, autonomy, responsibility, determination, and leadership that help them to be successful in the formation and management of their own businesses (Thomson, 2002). Report from the analysis of ten MFIs conducted by Anyanwu (2004) confirmed that the MFIs are of the view that women perform better than men in managing of resources and promotion of micro enterprises.

Comparison of Men and Women Entrepreneurs’ Characteristics

The characteristics of women and men entrepreneurs differ in several important aspects. Evaluating this critically, Hisrich, Micheal and Shepherd (2005) argues that differences in men and women entrepreneurs’ characteristics result from the fact that men and women differ in terms of; (i) reasons for starting an enterprise (ii) the types of business they run (iii) the chosen method of accessing finance (iv) choice of business location (v) choice of labour force (vi) educational background (vii) age (viii) business of the parents, (ix) position in the family (x) educational background, (xi) propensity to risks taking (xii) structure of business (xiii) type of business ownership (xiv) sources of finance (xv) type of marketing. This can further be illustrated with the information in the table below;


Table 20. Comparison of Men and Women Entrepreneurs’ Characteristics

Characteristics

Men

Women

Achievement

Strive to make things happen

Accomplishment of a goal

Independence

Self-image as it relates to status

Desire to do it alone.

Departure Point

Dissatisfaction with present job

Job frustration

Sources of funds

Personal assets and savings, bank financing and investors

Personal assets and savings personal loans

Occupational background

Experience in line work, recognized specialist and competence in variety of business function

Experience in area of business, middle-management level, service-related occupational background

Personality Characteristics

Goal oriented, innovative and idealistic, high level of self-confidence, enthusiastic, energetic and boss

Goal oriented, creativity and realistic, medium level of self confidence, enthusiastic, energetic and ability to deal with social and economic environment

Age

Age when starting venture is usually 25-35 years.

Age when starting venture is usually 35-45 years.

Business of the Parents

Father is usually self-employed.

Father and mother are self-employed.

Position in the family

They are usually fist born.

They are first daughter of their parents and not necessarily first born of the family.

Background

College educated-degree in business or technical area

College educated-degree in liberal arts.

Support Groups

Friends, professional acquaintances, business associates, spouse.

Close friends, spouse, family, women’s professional groups, trade associations.

Type of business

Manufacturing or construction

Service Related educational services, consulting, trade, and public relations.

Source: Hisrich, Micheal and Shepherd (2005)

Hisrich, Micheal and Shepherd (2005) in their comparison of men and women entrepreneurial characteristics viewed men as agents that strive to make things happen, self image relates to their status, sources of funds usually come from personal assets, savings, and bank financing; goal oriented, innovative and idealistic, high level of self confidence, enthusiastic and energetic; from parents who are self employed; usually belong to support groups of friends, professional, acquaintances, business associates and spouse. On the other hand, they viewed women entrepreneurs as those that are out to accomplish goals; those that always desire to do it alone; they go into business because they are frustrated in their job; source their funds mainly through personal assets and savings; they are usually goal oriented, creativitive and realistic, medium level of self confidence, enthusiastic, energetic and ability to deal with social and economic environments. Apart from the above areas of differences between men and women entrepreneurs, the World Bank (1995) observed that a great disparity exist between men and women entrepreneurs in Africa especially in terms of literacy rate, earned income and other economic activities. Table 21 shows Gender –Related Development Index and Gender Inequality in Economic Activity.


Table 21: Gender –Related Development Index and Gender Inequality in Economic Activity.





Gender Related Development Index

Gender Inequality in Economic Activity

Countries

Adult illiteracy Rate (Age 15 and above)

Estimated Earned Income

Female Economic Activity





Female

Male

Female

Male

Rate %2003

Index 2003

Female 2003

Angola

42.3

39.3

1797

2997

72.5

98

82

Benin

54.7

53.2

910

1316

73.1

96

90

Botswana

36.7

35.9

6617

10816

62.4

95

76

Burkina Faso

48.2

46.8

980

1357

73.1

96

90

Burundi

44.5

42.6

545

758

81.7

98

89

Cameroon

46.5

45.1

1310

2940

49.7

105

59

Central Africa Republic

40.1

38.4

829

1366

67.1

96

78

Chad

44.7

42.5

902

1525

67.4

102

70

Congo Dem Rep

44.1

42.1

500

903

60.3

97

72

Cote D’ Ivoire

46.7

45.2

792

2142

44.0

102

57

Egypt

72.1

67.7

1614

6203

36.0

119

46

Eritrea

55.7

51.8

579

1123

74.5

98

87

Ethopia

48.7

46.6

487

931

47.7

103

56

Gabon

55.2

53.7

4765

8054

63.2

101

77

Gambia

67.1

54.3

1391

2339

69.8

101

78

Ghana

57.3

56.3

1915

2567

79.8

98

78

Guinea-Bissau

46.2

43.2

466

960

57.0

100

63

Kenya

46.3

48.1

1001

1078

74.7

100

85

Lesotho

37.7

34.6

1480

3759

47.7

103

56

Madagascar

65.2

76.4

603

1017

68.9

99

78

Malawi

39.6

39.8

486

717

77.5

97

90

Mali

48.5

47.2

742

1247

69.6

97

79

Mauritania

54.3

51.1

1269

2284

63.1

97

74

Mauritius

80.5

88.2

6084

16606

38.7

112

49

Morocco

71.9

67.5

2299

5699

41.9

108

53

Mozambique

42.7

41.1

910

1341

82.3

99

92

Namibia

49.0

47.6

4201

8234

61.8

101

68

Niger

44.4

44.3

601

1050

45.2

99

75

Nigeria

43.6

43.1

614

1495

47.3

102

510

Rwanda

45.6

42.1

985

1583

82.3

98

88

Senegal

56.9

54.5

1175

2131

61.8

101

72

Sierra Leone

42.1

39.4

325

703

45.2

107

55

South Africa

50.2

46.8

6505

14326

47.3

102

59

Switzerland

82.9

32.1

2609

6907

42.1

107

52

Tanzania

46.3

45.5

516

725

81.4

97

93

Togo

56.3

52.4

1092

2318

53.5

101

62

Uganda

47.6

46.9

1169

1751

79.1

98

68

Zambezi

36.9

37.9

629

1130

63.9

98

74

Zimbabwe

36.9

37.3

1757

3042

64.9

97

78

Tunisia

36.5

71.2

3840

10420

37.7

115

48

Sources: UNDP, (2005)P. 299-302, 311-314 Adapted by Usman, (2008)
The table above shows that women adult illiteracy rate is higher than that of men in most African countries eg. Angola, Benin, Nigeria, Botswana, Burkina Faso, Burundi, Chad, Congo and others. The table shows that the estimated earned income for women are far lower that of men. Examples are Nigeria, Tanzania, Burundi, Tunisia and others.

Role of Women Entrepreneurs in Economic Development


Entrepreneurship has no respect for sex, color, height, individuals, race or culture. Women in different nations play equal role with their men counterparts in economic development through entrepreneurship. An entrepreneur, whether male or female play important role in a particular economy. In an attempt to offer an acceptable definition of an entrepreneur, Wennekers and Thurik (1999) identified thirteen roles of an entrepreneur in every economy. According to them “An entrepreneur is:

a person who assumes the risks associated with uncertainty, an innovator, a decision maker, an industrial leader, an organizer and a co-ordinator of economic resources, a contractor, a resource allocator, a person who realizes a start up of a new business, an employer of other factors of production, the owner of an enterprise, manager or super rider, a person who supplies financial capital.

Wennekers and Thurik (1999) further classified the above roles of entrepreneurs into static and dynamic theories; while roles ten to thirteen form the static theories, which see an entrepreneur as merely a passive component of economy. Under these theories, the emphasis of entrepreneurship is focused on activity that is based on repeating technique. On the other hand, roles one to nine were grouped under dynamic theories. The dynamic theories assumed that an entrepreneur must play an active role for every economic development. This theory sees entrepreneurship as an agent for economic growth. Economic growth according to Wennekers and Thurik (1999) “is a function of entrepreneurial development”.
As Kpohazounde (1994); Omotayo (2005); Selvalamar and Sadiq (2006) argued that women entrepreneurs play the role as mothers, wives, daughters and their need to generate income for the family as important economic ‘driver’ for business ownership, whereas other researches on men shows that men tend to give reasons such as “to generate income” while women usually give reason for starting business that is in line with their various roles in the family. Women entrepreneurship development has been recognized as important because of the contributions of women’s entrepreneurs to the economic development in both developed and less developed countries. Women entrepreneurs therefore enhance economic development through:

(i) Employment Creation: Women entrepreneurship development can help women –owned businesses generate more income which then can be used to support their households and improve their family welfare outcomes (Thomson 2002, Kantor, 1999). This income can help women to start and grow their businesses which will in turn help them to offer employment to others in their community. More than 20% employment in Nigeria is being generated by women entrepreneurs. As regards to this, Petrin, (1997) opined that:

entrepreneurial orientation to national development, contrary to development based on bringing in human capital investment from outside, should be based on capital and stimulation of local entrepreneurial talents and subsequent growth of indigenous companies. This in turn would create jobs and add economic value to a region and community and at the same time keep scarce resources within the community. To accelerate economic development, it is necessary to increase the supply of entrepreneurs, by encouraging female gender and other minorities through empowerment thus building up the critical means of first generation entrepreneurs.


(ii) Poverty alleviation: Many women support themselves and their families through the income they receive from their entrepreneurial activities (Kantor, 1999). Women also are more involved in organizing programmes that focused on empowering women and youths for poverty alleviation. For instance, in Nigeria, COWAN is a NGO formed by women and they are doing a lot in line with their set objective -to alleviate poverty among the Nigerian women. In India, the SEWA Bank has been a catalyst for much changes in laws and practices in addition to the changes in the institutional arrangements and processes. Others include Micro-finance Scheme in Zimbabwe, Credit Program of Grameen Foundation in Bangladesh, women participating in AQUACULTURE and Fisheries in Bangladesh and others (Kpohazounde, 1994).

(iii) Economic Vitality: Economic vitality is a necessary condition for achieving social vitality which improves the standard of living of the citizens of nation. Important factors that make living attractive are flow of information, education, health, housing and transportation which are developed and sustained through entrepreneurship. The easiest approach to economic vitality is through women entrepreneurship development. Women have been known for their ability to combine different activities that have the potential to enhance the standards of living and quality of life of the citizenries. To support this, Floro (2001) argued that

women are more likely to juggle their working time between the market sector and non-market economic activities. Non-market production whether it involves subsistence crop production, water and fuel gathering, food preparation and housecleaning or care for the children and elderly is a crucial element in determining the quality of life.


(iv) Economic and Socio-Political Empowerment: Women now have access to and control over income and working conditions. This has empowered them for full involvement and participation in economic, social and political policy making that might result to changes in gender inequality and discrimination especially in the labour market. It is believed that with self-employment and entrepreneurship, women gained confidence, self-esteem and decision-making experience leading to greater control over their lives in social, economic and political spheres (Thomson, 2002; Kantor, 1999).

(v) Financial Sustainability: Small enterprises tend to have the flexibility and innovativeness that are critical business needs in developing economy. As women form micro and macro enterprises and bring their values, products and services to the market place, they become involved in changing the face of the nation’s business. As Steinem (1992) noted, women entrepreneurs tend to take a “holistic approach to balanced life, work, family, economic, and cultural values. They integrate economic techniques such as job training, job creation, marketing and management with work place innovations such as flexible scheduling, childcare, language workshop for immigrants”. In support of this, AGORA FORUM (1993) opined that “women are bringing their values, (many of which have been unrecognized in this culture as business values) into the process of creating and operating business. However, the importance of women in business and economic development depends to some extent, on the existence of political, social and cultural climates of the country that encourage the formation of business by women (AGORA FORUM, 1993; Kpohazounde, 1994).



(vi) Economic growth: The increase of women prominence in entrepreneurship has positive contribution to the country’s G D P and Gross National Income (GNI) (Kantor, 1999). Statistically, more than 30% of the contributions of the country’s GDP, comes from women that are self-employed especially in micro and small sized enterprises (Kerta, 1993 ). This sector of business and its entrepreneurial characteristics are viewed by many to be central to innovation and is considered the engine of economic growth (Schumpeter, 1934; 1947). Obviously, if women make up a large number of SMEs which add to the growth of the economy, then it only makes sense to promote the development of women entrepreneurs in SME’s for this reason (Thomson, 2002). Sourcing for external funds and experts for nation’s economic development might be a waste of resources. On the contrary, a nation should invest its resources to develop women entrepreneurs whose major focus is the country’s economic development. Petrin (1994) was right when she asserted that:

As evidence suggested, it is false to assume that socially and economically depressed areas will transform into fast growing areas by injection of external investment funds and external expertise. Without women entrepreneurial capabilities, which are well developed or potentially available, external funds will be wasted on projects that will not provide long term economic growth. Consequently, instead of becoming more and more integrated into other economically, socially and increasingly, isolated, depopulated, efforts should be devoted in attracting women to entrepreneurship who, given other available resources, would make an impact from a development stand point.


To accelerate economic development, government and private agencies should be committed in developing women entrepreneurial talents and micro and small industries for job creation and economic vitality. Women entrepreneurs, if well empowered, will definitely operate better than foreign investors in the rural development even in the period of uncertainty. Investment in foreign human and capital assets for nation development capabilities will therefore amount to waste of resources.

(vii) Wealth Creation: Wealth creation and social vitality are the economic goals of both men and women entrepreneurs. To achieve this, women entrepreneurs usually combine their efforts to form a strong base either in the rural or urban areas and channel the same towards economic development. Teamwork (Reich, 1987), networking (Johannission and Nilsson, 1989) and managerial competence (Penrose, 1960) have been recommended as good promotional strategies that can be adopted by women entrepreneurs to pull their resources together towards best business practices, contacts, and references. Business networks can help women identify and secure partners for future transactions (Thomson, 2002). These can be represented in a diagram as below;



Figure 4. The Multi-facets Roles of Women


Wives

Agro-Allied

Manufacturing

Trade

Service





Employment Creation

Poverty alleviation Economic Empowerment

Financial Sustainability

Economic growth

Wealth Creation




Women

entrepreneurs

Politics

NGOs etc


Daughters

Agro-Allied

Manufacturing

Trade


Service

Economy Drivers

Agro-Allied

Manufacturing

Trade


Service











Mothers

Agro-Allied

Manufacturing

Trade


Service



Source: Omotayo (2005); Ayadurai et al (2006); United Nations (2006)
The above diagram summaries the role of women in economic development of a nation. It shows that women entrepreneurs may play the role of wives, daughters, mothers and economy drivers. Women entrepreneurs therefore need to blend their many roles of business person, daughter, wife and mother in order to operate their businesses successfully (Kpohazounde, 1994). In the process of making subtantail contributions to economic growth and development, they often face overt or hidden discrimination against their entrepreneurship.

Challenges Facing Women Entrepreneurs


Although there are many contributions to be accredited to women entrepreneurs, a number of constraints have been identified as detriments to these contributors. Women entrepreneurs face many challenges, including government rules and regulations, gaining access to finance, and building an ICT infrastructure that enables efficiency and growth (United Nations, 2006). Women entrepreneurs require confidence, leadership and management skills and must find ways to access new markets. Kantor (1999) rightly argued that women often experience greater constraints on their economic actions relative to men. Mayoux (2001) also noted that “there are certain factors that limit the ability of women entrepreneurs to take advantage of the opportunities available to them in their environment and these factors have been identified as the reasons why women business fail”. These include poor financial management, liquidity problems, management inexperience and incompetence, problems in coping with inflation and other external economic conditions, poor or non-existent books and records, sales and marketing problems, staffing, difficulties with unions, the failure to seek expert advice, limited social and business networks, a low level of demand in the local economy, the value and system of tenure for housing, constraints in access to finance, lack of work experience and skill, and lack of role models (United Nations, 2006). Other barriers to women entrepreneurship development are cultural obstacles, lack of motivation, high crime rates, government regulation and problems during the transition from reliance on government benefits and employment. More extentively, Mayoux (2001) identified these factors to include:

(a) Lack of Access to Control of Property: The restriction of women from having access to and control of property constitutes a fundamental constraint on women entrepreneurs. The legal system in most countries has not been able to recognize and enforce women’s equal right to property and ownership. Statistically, International Labour Organisation (ILO) has on record that only 1% of the world’s assets are in the name of women (Mayoux, 2001). Property in this context includes; land, houses, lockup-stores, production plants, equipment, motor van etc. Legal backing on women’s access to and control of property will help women in setting up their own firms without much stress. In this note Mayoux (2001) observed that:

Women are usually seen as the dependents of men and subject to their authority as fathers, husbands, brothers, and community leaders. In some cases, especially in African societies, women are defined as minor and denied independent access to land, credit and independent status and other types of financial transactions.


In some parts of the country, customary laws, community heads and land lords do not even allow women to rent/lease property in their own names without the backing of men. This hinders women from participating in any benefit available for business development service/programme thereby discouraging them from desiring to go into business and also places a serious constraint on women’s autonomy as entrepreneurs.

(b) Lack of Access to and Control over Income: Another constraint that faces women entrepreneurs is lack of access to and control over income. Low income, low investment and low profit may limit women’s ability to save. More than 65% of the poor and rural settlers in Nigeria are women. Women usually face discrimination in the labour market (both in their remuneration and the nature of job they are offered). This affects their income, investment, and savings. Inability to save, can affect their start-up capital there by discouraging them from owing businesses. Mayoux (2001) also noted that Women have limited control over the incomes they earn. Gendered rights and responsibilities between man and women within households invariably operate to constrain women’s ability to control their own income and access to male income. Even when women have opportunity to earn high income, by virtue of culture and tradition, they are subjected under their husbands who have control over them and their money. This can hinder their participation in business.

(c) Lack of access to Information Technology: The number of women in the technology is very low unlike in other sectors such as health care, hotel, education, restaurant etc.

(d) Lack of Information on Women Entrepreneurship: There is little information available on women entrepreneurship or women owned business in Nigeria in particularly and in the world generally.

(e) Age Limit: Unlike men, there are certain periods in a woman age/time that she cannot do business –for instance, during pregnancy, labour period, child nursing and such other times that are peculiar to woman. Due to this, entrepreneurship therefore tends to be a midlife choice for women. Hence, majority of women start up business after the age of 35 ( Dane, I984).

(f) Family Dependence: Most of the family members depend on women for care and hospitality, thereby limiting their full involvement and participation in business.

(g) Restriction to Family Business: Most women entrepreneurs are some how restricted to family business because of their family commitment. This affects their level of ingenuity, creativity, innovativeness and competitiveness.

h) Inaccessibility to Required Funds: Women also may not have equal opportunity to access finance from external sources such as banks, and other finance institutions as a result of this, they tend to prefer using personal credit/saving in financing their business. This discourages a lot of women from going into entrepreneurship.

j) Religious Predicament: Some religion prohibits women from coming out of their homes and environments thereby restricting them from getting involved in business.

k) Non Involvement of Women in Decision Making: Women all over the world and in all sectors are usually marginalized, especially in the planning stage of development. The decision for the execution of projects done in Nigeria such as construction of roads, building of markets, building of civic centers etc are done without consultation of the women by their men counterparts (Okunade, 2007).

l) The Offensive of the Economic Planner: The women are totally neglected in the economic planning process. The opinion of the men assumed to be the same with that of women. Even the work they do in most cases, is not giving economic value. Dane (1984) was right when she asserted, “all the work by women in the family enterprises and on the land is given no economic value, and women are being exploited in the employment field”.

(m) Much Emphasis on Domestic Role: No matter the role of a woman in the society, she is mainly remembered for the domestic role. A woman, whether a director of a company, an educationalist, an entrepreneur, or a professional, must go back to the kitchen. The popular saying that a “woman education ends in the kitchen”- tends to prohibit women from going into business. “The kitchen” role dominates every other role of a woman (Kpohazounde, 1994).

(n) Limited Leadership Role: Women especially in Nigeria have always been assumed not to be matured for leadership position. They are usually given the seconding position in company’s meetings and as government functionaries. For instance in meetings (not women meetings) a women cannot move motion, but she can second it. Gould and Perzen (1990) listed the barriers that women entrepreneurs face which are not usually encountered by their men counterpart. He classified the constraints that face women into two groups; “constraints for better- off women and for low-income women”. Gould and Perzen (1990) commenting on the challenges facing women entrepreneurs classified women into “better –off and low-income women”. According to them, better-off women face the following challenges;

i) Lack of socialization to entrepreneurship in the home, school and society



  1. Exclusion from traditional business networks

  2. Lack of access to capital and information

  3. Discriminatory attitude of leaders

  4. Gender stereotypes and expectation: Such as the attitude that women entrepreneurs are dabblers or hobbyists

  5. Socialized ambivalence about competition and profit

  6. Lack of self-confidence.

  7. Inability to globalize the business: Men are leading in the global market.

As Ando et al (1988) and Kizilaslan (2007) noted, “in spite of the increase in the business activities of the global economy, it is sad to note that 88-93% of business owned by women did not export any goods or services”.


Low–income women according to Gould and Perzen face the following challenges: i)poor savings, ii) longer hours to work, iii) health care and other assistance, iv) illiteracy, v) regulation that do not distinguish between personal business assets make it extremely difficult to start a business or to invest the time it takes to make it profitable, vi) Lack of managerial skill, vii) cultural bias both within cultural group and in the larger society (viii) high level of poverty.


Summary of the Constraints On Women Small Enterprises

Mayoux (2001) summarized the above mentioned constraints facing women entrepreneurs in the following sub headings in a tabular form.



Table 22. Summary of the Constraints on Women Small Enterprises

Enterprise Constraints

Micro- Level

Household Level

At Level of Individual

Resources and Property

Unequal inheritance laws, inequality in marriage contract and community access to Land

Male appropriation of household/family property.

Women are not usually to participate in property sharing.



Lack of individual property

Income

Legal systems which treat women as dependants rather than individuals, also reflected in tax systems

Male appropriation of income

Limited control of income





Lack of public welfare provision or recognition of costs of reproduction

Female responsibility for family provision and male withdrawal of income

Prioritization of investment in household




Low female wages




Low incomes for investment

Credit

Financial system discriminating against women

Male appropriation of credit

Lack of collateral to secure credit

Skills

Lacks of Opportunities for apprenticeship

Lack of investment in female education and skill acquisition

Lack of confidence and ability to enter new areas of business.




Gender-stereotyped training and education which devalue women

Low valuation of female skills







Discrimination in access to education system and training







Marketing

Lack of access to marketing support scheme.

Concerned with family honour and restrictions on female mobility.

Lack of information and network system.




Lack of marketing support for female-dominated industries







Labour

Unwillingness of men to work under a women entrepreneur.

Limited claim to unpaid male family labour.

Lack of network system and authority.




Harassment of female informal sector workers













Women’s responsibility for unpaid family labour

Lack of time.

General underlying constraints on change

Institutionalized discrimination and violence

Opposition to female independence and autonomy

Lack of autonomy




Lack of women’s participation in decision-making

Domestic Violence

Lack of confidence.

Sources: Mayoux (2001) Jobs, Gender and Small Enterprises: Getting the Policy Environment Right. P.64-66
Commonwealth business women classified the challenges faced by women-owned SMEs into women intensive and women exclusive and provided an overview of the challenges face by women in the table below.


Table 23 The Challenges Faced by Women –owned SMEs

Area of Challenge

Challenges faced by SMEs (women intensive)

Challenges faced by women-owned SMEs (women exclusive)

Access to Finance

Service companies face difficulties due to the nature of their businesses. Cost of capital relative to other countries

Discriminatory national laws

Prejudice against women and women-owned businesses

Difficulty in providing collateral (women do not own assets in their own night)

Lack of credit/banking history(due to past, informal nature of businesses)

Need for credit plus business planning and advisory services.


Access to Markets

Access to quality, up-to-date information.

Contacts through personal networks Small size of businesses



Prejudice against women

Difficulty in traveling to make contacts

Sexual harassment


Access to Training

Technical training

Training on World Trade Organization (WTO) and Trade policy and requirement



Training needs are often overlooked

When identified , women’s needs may not be met (for example, time of training, content, method of delivery).



Access to infrastructure

Need for reliable physical infrastructure (road transportation, air transportation)

Need for predicable trade support bureaucracy, supportive government mechanisms, etc



Bias against women’s business

Few or no contacts in the bureaucracy



Access to Technology

Need for reliable telephone and Internet service

Potential for e-commerce and e-trade

Access to electronic banking and transfers

Use of English as the medium of communication through the Internet



Older women and women with low levels of education and literacy are particularly disadvantaged

Lack of English language skills

Bias against women’s involvement in technical matters


Access to policymakers/Input into trade Policy

Large companies and men can more easily influence policy and have access to policymakers who are their peers

Most women have little access to policymakers or representation on policy making bodies.

Lack of access to information limits knowledgeable input into policy



Source: Commonwealth Secretariat, (2002) Commonwealth Business Women: Trade Matters, Best Practices and Success Stories, London.

2.1.6 The Concept of Motivation

Motivation may be expressed in various ways such as the aspirations or behavourial intentions (Davidson, 1997). According to Ivancevich, Konopaske and Matteson (1997), motivation is the set of forces that initiate behaviour and determine its form, direction, intensity and duration. Hisrich, Micheal and Shepherd (2005) saw it as what causes people to do something. Goleman (2001) defined motivation as a passion to work for reasons that go beyond money or status and a propensity to pursue goals with energy and persistence. Cole (2001) viewed motivation as the term used to describe those processes, both instinctive and rational, by which people seek to satisfy the basic drives, perceived needs and personal goals, which trigger human behaviour. For effective entrepreneurial performance, motivation is important. Motivation propels performance which brings behaviour and reward (intrinsic and extrinsic) (Huitt, 2001). Motivation is an internal state or condition (sometimes described as a need, desire, or want) that serves to activate or energize behavior and give it direction. Kleinginna and Kleinginna, (1981) and Huitt, (2001) emphasized that motivation is

* internal state or condition that activates behavior and gives it direction;

* desire or want that energizes and directs goal-oriented behavior;

* influence of needs and desires on the intensity and direction of behavior

Analyzing the motivational aspect of entrepreneurship Schein (1978) propounded a theory of career anchors where he argues that as people move into their careers they gradually develop clearer self-concepts in terms of their:

(i) talents and abilities: they discover at what they are and are not good.

(ii) motives and needs: they determine what they are ultimately seeking out of their career (e.g. good income, security, interesting work, or opportunities to be creative).

(iii) values: they realize with what kind of company, work environment, product, or service they want to be associated.

According to Schein (1978) “talents, motives and values are three interrelated factors that determine why women go into one kind of entrepreneurship or another. Entrepreneurial identity is usually anchored in the values, motives, occupational experiences, education and external factors like entrepreneurial culture or the existence of entrepreneurial ‘heroes’ that strengthens and affects the entrepreneurial intentions of individuals according to the circumstances they face per time (Vesalainen and Pihkala, 1999). Schein (1978) in his theory originally identified eight career anchors which he defined on the basis of Schumpeterian entrepreneurship where extreme creativity and the need for creating a new business are the dominant features of the anchor. These include; (i) security/stability (ii) autonomy and independence, (iii) entrepreneurship (iv) technical/functional competence (v) managerial competence (vi) service (vii) life style


In an attempt to evaluate the concept of motivation and entrepreneurship, Cole (2001) also developed a model that helps to explain the relationship between need, behaviour and outcome. According to him, human needs whether physical, social or intellectual need (form of stimulus) give rise to a response or behaviour which leads to an outcome, which either satisfies or fails to satisfy the original stimulus and leads to satisfaction or frustration.

Figure 5: Relationship Between Need, Behaviour and Outcome

Physical need/drive Behaviour Satisfaction/Frustration


Stimulus ………………………………………..…Response…………………………Outcome

Social/Intellectual/ Emotional Behaviour Satisfaction/Frustration

Source: Cole (2001) A Basic Model of Motivation

Relating the above model to the concept of entrepreneurship, women entrepreneurs just like every other individual are being motivated to go into business by certain needs which may be physical, social, emotional or intellectual (Cole, 2001). Response to these needs will result to entrepreneurial behaviour which will result to either intrinsic or extrinsic gain (outcome) or hence personal satisfaction. The satisfaction that results from entrepreneurial behaviour however depends on the class of the entrepreneur in question. Schein (1992) and Cole (2001) classified an entrepreneur as an individual into four categories.

According to Schein (1992) and Cole (2001), an entrepreneur as an individual is either a rational-economic person, or a social person, or a self-actualizing person or a complex person. The understanding of Schein’s classification of man will help us to relate the approaches of entrepreneurial theory with the concept of motivation as regards to women entrepreneurs. According to Schein’s model, women’s motives for entrepreneurship are directed towards their desired ends, and their behaviour is selected consciously or sometimes instinctively towards the achievement of those ends (Cole, 2001).

Types of Motivation

Motivational researchers share the view that achievement behaviour is an interaction between situational variables and the individual subject's motivation to achieve (Rabideau, 2005). Motivation can be classified in different ways depending on the views and dispositions of the authors and theorists in terms of individual motives, behavour, task to be achieved, performance and environment. However, among these classifications, the most commonly accepted ones have been adopted in this research. These include;

(a) Explicit and Implicit Motivations: Implicit motives are spontaneous impulses to act, also known as task performances and are aroused through incentives inherent to the task. Explicit motives are expressed through deliberate choices and more often stimulated for extrinsic reasons. Also, individuals with strong implicit needs to achieve goals set higher internal standards, whereas others tend to adhere to the societal norms. These two motives often work together to determine the behavior of the individual in direction and passion (Ryan and Deci, 2002; Brunstein and Maier, 2005).
Explicit and implicit motivations have a compelling impact on behavior. Task behaviors are accelerated in the face of a challenge through implicit motivation, making performing a task in the most effective manner the primary goal. According to Rabideau (2005) “a person with a strong implicit drive will feel pleasure from achieving a goal in the most efficient way. The increase in effort and overcoming the challenge by mastering the task satisfies the individual. However, the explicit motives are built around a person's self-image”. This type of motivation shapes a person's behavior based on their own self-view and can influence their choices and responses from outside cues. The primary agent for this type of motivation is perception or perceived ability. Many theorists still can not agree whether achievement is based on mastering one's skills or striving to promote a better self-image (Brunstein and Maier, 2005). Most research is still unable to determine whether these different types of motivation would result in different behaviors in the same environment. This was in line with the opinion of The THIAGI GROUP (2004) who emphasized that Intrinsic motivation occurs when you are passionate about a task and perform it for the sheer pleasure of it. The motivator resides within you. Only some internal motivators are truly intrinsic and extrinsic motivation occurs when someone perform a task because some force, either external to you (money, rewards, punishment) or internal to your (a value or a belief that impacts your sense of self-worth) drives you to perform. The THIAGI GROUP (2004) used the diagram below to further explain the difference between intrinsic and extrinsic motivation;

Figure 6: Difference Between Intrinsic And Extrinsic Motivation

Intrinsic Extrinsic

Extrinsic




• Money

• Bonus


• Punishment

• Praise



Intrinsic

• When you have a passion for performing a

task.


• When you perform a task for the sheer

pleasure of it.

• When you freely choose to perform a task.


• Guilt

• Ego Gratification

• Seeing the Value

of a Task




Source: THIAGI GROUP (2004)

(b) Achievement Motivation: Achievement motivation has been conceptualized in many different ways (Scott, 2005). Despite being similar in nature, many achievement motivation approaches have been developed separately, suggesting that most achievement motivation theories are in concordance with one another instead of competing. In an attempt to provide definition of achievement motivation, researchers have sought to promote a hierarchal model of approach and avoidance achievement motivation by incorporating the two prominent theories. These approaches include; the achievement motive approach and the achievement goal approach. More prominent among these researches is McClelland (1961), who suggested that achievement motives include the need for achievement and the fear of failure. These are the more predominant motives that direct our behavior toward positive and negative outcomes. Achievement goals are viewed as more solid cognitive representations pointing individuals toward a specific end. The researches Shan and Shan (2005) further explained that an individual with achievement motivation wishes to achieve objectives and advance up on the ladder of success and also always works towards accomplishing three types of achievement

(c) Competence Motivation: Competence motivation is the drive to be good at goals: a performance-approach goal, a performance-avoidance goal, and a mastery goal. According to Rabideau (2005) competence relevant to peers plays a big role in motivation theory, both in approach and avoidance goals. Often times motivation for a task comes from seeking a level of proficiency, or avoiding a failure. It would have been interesting to see how the outcome of peer criticism or support in the face of a failure effects future task motivation, as in some areas of psychology, peer support can have a large effect on the progression of emotional problems.

(d) Affiliation Motivation: Affiliation motivation is a drive to relate to people on a social basis. Persons with affiliation motivation perform work better when they are complimented for their favourable attitudes, co-operation and sometimes, allowing the individual to perform high quality work. Competence motivated people according to Butler (1999) seek job mastery, take pride in developing and using their problem-solving skills and strive to be creative when confronted with obstacles. They learn from their experience. Competence moderated attitudes and behaviors are more prevalent in ego-involved activities than task-involved. Achievement does not moderate intrinsic motivation in task-involving conditions, in which people of all levels of ability could learn to improve. In ego-involving conditions, intrinsic motivation was higher among higher achievers who demonstrated superior ability than in low achievers who could not demonstrate such ability (Butler, 1999).

(e) Attitude Motivation: Attitude motivation emphasizes on how people think and feel. It is their self confidence, their belief in themselves, their attitude to life determines their work behaviour and achievement of task assigned to them. Their relation with their employer, family members and colleagues depends on how they feel about the future and how they react to the past. The relationship between their motivation and business performance can be determined and predicted by their disposition.

(f) Incentive Motivation: Incentive motivation involves rewards. According to Husseini (2007) people who believe that they will receive rewards for doing something are motivated to do everything they can to reach a certain goal. While achievement motivation is focused on the goal itself, incentive motivation is driven by the fact that the goal will give people benefits. Incentive motivation is used in companies through bonuses and other types of compensation for additional work. By offering incentives, companies hope to raise productivity and motivate their employees to work harder.

(g) Fear Motivation: Fear motivation is when incentives do not work, people often turn to fear and punishment as the next tools. Fear motivation involves pointing out various consequences if someone does not follow a set of prescribed behaviour. Fear motivation according to Shan and Shan (2005) coercions a person to act against will. It is instantaneous and gets the job done quickly. It is helpful in the short run. This is often seen in companies as working hand-in-hand with incentive motivation. Workers are often faced with a reward and punishment system, wherein they are given incentives if they accomplish a certain goal, but they are given punishments when they disobey certain policies(Husseini,2007).
(i) Power Motivation: Power motivation emphasizes on the fact that people do things just to bring about changes within their immediate environment. Change motivation is often the cause of true progress. Entrepreneurs who become tired of how things are and thus, think of ways to improve it usually use power motivation. When poor performance is likely to reflect poor ability, a situation of high threat is created to the individual's intellect. On the other hand, if an excuse allows poor performance to be attributed to a factor unrelated to ability, the threat to self-esteem and one's intellect is much lower (Thompson,Davidson and Barber,1995).
2.2 Theoretical Literature


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