Chapter one introduction 1 Background to the Study



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CHAPTER THREE

RESEARCH METHODOLOGY
3.0 Introduction

This chapter describes the methods used in this study which include the research design, population, sample size determination, sampling technique and procedure, sampling frame, sources of data, data collection techniques, research instruments, validity and reliability of research instruments and method of data analysis. It describes the methods adopted by the researcher in terms of quantifiable and qualitative techniques to collect and analyze data. This section also include the study area which gives a brief description of the areas used as the case study of this reseaech. Three states; Lagos, Ogun and Oyo States were used as the case study of the research.



3.1 Study Area

Looking at Lagos State, it was created on 27th May, 1967 by Decree No 14 of 1967. Lagos State was founded in the fifiteen century as a Portuguese trading post exporting ivory, peppers and slaves. Among the other six states in the South-West Nigeria, Lagos is the most populous city in Nigeria. It has twenty local Government area which include; Agege, Mushin, Alimosho, Oshodi-Isolo, Ikeja, Lagos Mainland, Lagos Island, Epe and others. Its metropolitan area is estimated at 300 square kilometers and it is endowed with creeks and a Lagoon. It has been recognized for its highly populated business activities. In Nigeria, Lagos is known as one the higly industrialized states. It has over 2000 manufacturing industries and all the financial instutions has their headquarters in Lagos State. All the sectors of the economy such as agricultural, oil and gas, trade, service, insurance, transportation and others have their industries fully represented in Lagos State. It provides the platform for exploring the activities of women entrepreneurship in Nigeria (http://www.lagosstate.gov.ng).

Ogun State was created in February 1976 with Abeokuta as the state capital, comprises the old Abeokuta and ljebu provinces. It was one of the nineteen states created out of the former twelve state structure of 1967. Ogun State had a total population of 2,338,570 according to the Census figures of 1991. The Abeokuta group of LGAs had the highest population density of 480 persons per sq. km., followed by Sagamu group with 288 persons/sq. km. in 1991, followed by AdoOdo/Ota and ljebuOde, groups with each having 271 persons/sq. km., while Egbado South had a density of 234 persons/sq. km. The state shares an international boundary with the Republic of Benin to the West and interstate boundaries with Oyo State in the north, Lagos State in the south and Ondo State in the east. As at March, 1997 Ogun State had twenty Local Government Areas (LGAs). These include; AbeokutaNorth and AbeokutaSouth, lfo, AdoOdo/Ota, Ewekoro, ljebu Remo, Sagamu, Ikenne, Egbado North, EgbadoSouth, ljebuOde and Odogbolu LGAs and ljebuEast and others .

The locational advantage of the state, in being between the Lagos and lbadan commercial centres, has provided accessibility to sources of finance and the market for the manufactured products. All these advantages have made Ogun state one of the growing industrial states in the country. Most of its industries concentrate more in some LGAs such as AbeokutaNorth, AbeokutaSouth, lfo, AdoOdo/Ota, Ewekoro, Sagamu, ljebuOde and Owode LGAs. Availability of forest, agricultural and mineral resources in the state, access to a large pool of skilled manpower, the presence of water and electric power supply, incentives by successive governments and the locational advantage of the state, all make it a favoured location for several kinds of industrial establishments.

At present, there are about 158 manufacturing plants in the state and AdoOdo/Ota LGA has forty five percent (45%) of the total, while Abeokuta, Sagamu and ljebuOde LGA; groups together have about forty percent (40%) of the total. The remaining plants are in some rural centres (i.e, Remo North, ljebuNorth, lfo and Ewekoro LGAs). Among these are Cement manufacturing plants at Ewekoro and Sagamu, Paper Mill which produces fine paper in large quantities and four government agencies which facilitate the extension of modem agricultural techniques and practices to all the rural areas of the state, namely: Agricultural Development Agency (ADA), Agro Services Corporation (ASC), Ogun State Agricultural Development Project (OGADEP) and Ogun State Forestry Plantation and so many others (http://www.onlinenigeria.com/links/ogunstateadv.asp)

Oyo State is a highly urbanized and cosmopolitan State located in the South West Region of Nigeria. It occupies a land area of 27,405 square kilometers with 26190.835 Km2 of wet/plain land and 1214.852 km2 of high land. The topography is of gentle rolling lowland in the South rising to a plateau, 40 meters and above in the North. The actual population of figure of Oyo State in 1991 was 3,452,713 while the estimated figures for the state in 2005 was 5,103,148 as shown in table 2.3. The sex ratio was low as there was more female population in the state. Considering the growth rate of 2.83%, the estimated male and female populations were projected to be 2,529,497 and 2,573,651 respectively. The highest population figure was projected to be 446,760 people in Ibadan North Local Government Area. Population density of more than one thousand persons per square kilometer was reported for six Local Government Area of Egbeda, Ibadan North, Ibadan North East, Ibadan North West, Ibadan South East and Ibadan South West. Oyo State is highly concentrated with various business activities fully representing all the sectors of the economy such as agriculture (fisheries, production of cash crops, poultry, and animal husbandry); trade, service, manufacturing, financial instutions and others (Oyo State of Nigeria, 2005).



3.2 Research Design

There are three (3) types reseach design that are commonly in use. They include the survey research, participant observation and ex-post facto methods. The nature of this research necessitates the use of mixed approaches. For this study, the adoption of the three methods is most applicable, because of their capacity in collecting large and standardized data. This standardized data provides information that helps in providing answers to the research questions. The survey method addresses the social, financial, psychological and environmental implications of women entrepreneurial motivational variables. This was actually precedented by the adoption of exploratory research method to obtain preliminary information on the subject matter of the study from the respondents. The respondents for this work are all the women entrepreneurs drawn from the sample of SMEs from different sectors in the South-West Nigeria which is the population of this study. These sectors are the agricultural, manufacturing, service and trade sectors. A cross sectional type of survey method was also adopted because of the involvement of different sectors and states in this study. The participant observation was used to introduce some intervening variables on the field of data collected. The ex post facto was used to assist in the use of past data and records particularly from the works of previous of scholars.



3.3 Population of the Study

To establish the population of this study, the researcher adopted deliberate non probality sampling method in selecting the states of coverage. These are Lagos, Ogun and Oyo states within South-West Nigeria and four producing sectors; agricultural, manufacturing, service and trade trade were equally selected based on the ISTC scale. This covered over 92 percent of the activities of Nigerian operational system (Bailey, 1987; Otokiti, 2005). Consequently, published documents that contains information on the number of women entrepreneurs in agricultural, manufacturing, trade and service sectors in the South-West Nigeria were obtained from the States’ (Lagos, Ogun and Oyo) membership directories of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Nigerian Association of Small and Medium Enterprises (NASME), Nigerian Association of Small Scale Industrialists (NASSI), some Local Government Areas and other related associations. Two thousand, one hundred and fifty (2,150) women entrepreneurs were extracted from these lists. This study equally took cognizance of the fact that there may be many of these enterprises not actually registered and uncaptured in our frame.



3.4 Sample Size Determination

The Sample size of this study was determined from the population using the Minimum Returned Sample Size Table for Continuous and Categorical data propounded by Bartlett, Kotrilik and Higgins (2001). Among all the methods of sample size determination, the Minimum Returned Sample Size Table was considered to be more appropriate for this study because the information involved has to do with quantitive survey design and categorical data. Quantitive survey design gives researchers the opportunity to use smaller groups of people to make inferences about larger groups that would be prohibitively expensive to study (Holton & Burnett, 1997).



As earlier mentioned, the report from the study population shows that the estimated population of registered number of women entrepreneurs in different sectors in South-West Nigeria is put at 2,150. Going by the table of the sample size, developed by Bartlett, Kotrilik and Higgins (2001), five hundred and seventy (570) was used as the sample size of this study. To arrive at 570, the closest number to the population of this study was selected from the table below (from the column of the population size) which is around four thousand (4000), this was then traced down to 570 under the categorical data. The reason for choosing categorical data at a margin of error of probability of 0.05 is because the margin of error shown is appropriate for this study; however, the appropriate sample size must be calculated if these error rates are not appropriate.

Table 31: Minimum Returned Sample Size Table for Continuous and Categorical Data

S/N

Population Size

Continuous Data

Categorical Data







Margin of Error = 0.03

Margin of Error = 0.05







Alpha=.10

Alpha=.05

Alpha=.01

p.50

p.50

p.50







T=1.65

T=1.96

T=2.58

t=1.65

t=1.96

t=2.58

6

600

73

100

155

187

235

316

7

700

75

102

161

196

249

341

8

800

76

104

166

203

260

363

9

900

76

105

170

209

270

382

10

1000

77

106

173

213

278

399

11

1500

79

110

183

230

306

461

12

2000

83

112

189

239

323

499

13

4000

83

119

198

254

351

570

14

6,000

83

119

209

259

362

598

15

8,000

83

119

209

262

367

613

16

10,000

83

119

209

264

370

623

Source: Bartlett, Kotrilik and Higgins (2001)


    1. Sampling Procedure

The researcher used a two-stage methods in selecting the sample size. Due to the large size of the population of this research work, the researcher decided to select a sample size that adequately represents the population of women entrepreneurs in South-West Nigeria using both probability and nonprobability sampling methods. This combination is necessary because the study was carried out in stages(Chein, 1981). A nonprobability sampling method was used at the first stage to select the areas of the study while a probability sampling method was used in selecting the women entrepreneurs as respondents at the final stage. A sample size of five hundred and seventy (570) women entrepreneurs that are involved in the SMEs of agriculture, manufacturing, trade and service sectors were randomly selected. This is in confirms with Nunally (1978) who suggested a minimum of three hundred (300) respondents for acceptable construct validity. The sample included respondents drawn from three States out of the six States within the South-West of Nigeria. These States (Lagos, Ogun and Oyo) were selected because they been considered as the most commercialized stated in South-West Nigeria (Soetan, 1997).
Stratified, cluster and simple random sampling methods were used in selecting the sample size. Stratified sampling method helped the researcher to group the population into three states and four sectors. The clustering sampling method helped the researcher to choose those local government areas where the respondents have been identified to live in clusters. These local government areas have been listed in Table 32. Random sampling method on the other hand helped the researcher to use the principles of randomization which is a procedure of giving every respondent in the study population an equal chance of appearing in the selection(Asika, 2000). Using these sampling techniques, helped the study to increase the precision and efficiency of the estimates, guarantee that variable categories are adequately represented in the sample and to save costs. This is neccessry considering the the fact that the study involved three states and four different sectors in the Nigerian economy. namely; agricultural, manufacturing, service and trade sectors.
A list of women entrepreneurs from these sectors was drawn with validation and verification from documents made available by the Nigerian Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA), National Association of Small and Medium Enterprises (NASME), Nigerian Association of Small Scale Industries (NASSI), other related associations of Nigerian Women Entrepreneurs of the states involved and some Loal Government Areas. The three states was purposively selected out of the six states in the south-west Nigeria (Bailey, 1987; Singleton, 1992; Asika, 1991; Otokiti, Olateju and Adejumo, 2007). The reasons for choosing these states are because (i) most businesses are situated in these states, (ii) the issue of the proximity of these states to the researcher’s point of contact was considered, (iii) all Nigerian tribes are fully represented in these states, (iv) high financial income of the consumers in these states which serves as motivating factor for establishing business in a location (Soetan, 1997).
The respondents also went through a two-stage selection process. These respondents were first selected as entrepreneurs that are involved in agriculture, manufacturing, trade and service sectors from the three states in the South-West Nigeria. The second set of criteria for selecting the respondents included any of the following: (a) having initiated the business (i) having up to ten employees or (ii) having an asset base that is not less than N1m or (b) being a joint owner of the business with the husband that met any of the two criteria stated in (i) and (ii) above. Some of the respondents were contacted through telephone call by the researcher to ensure their availability during the visitation. Some of the respondents were inquisitive to know the contents of the questionnaire so as to know what and how to answer the questions. To be able to cover the areas selected as the scope of the study, six (6) research assistants were used. Two research assistants each were assigned to the three States after they have been properly trained and instructed on how to go about their assignment. The researcher ensured a close supervision on them while they were on the field.

3.6 Sampling Frame

In this study, sampling frame consists of women involved in entrepreneurial activities in the four selected economic sectors used as the case study, their states, local government areas and addresses. The local government areas used as the sample frame of this study were purposively selected selected based on the issue of proximity to the researcher’s contact point, for effective management of the respondents and costs efficency (given the limits of fund available) Bailey, 1987; Singleton, 1992). Out of the twenty local government areas, twenty local government areas and thirty-three local government areas in Lagos, Ogun and Oyo States respectively the LGAs in Table 32 were purposively selected.


Table 32: Sample Size: Local Government Areas Covered in Lagos, Ogun and Oyo States

S/N

Lagos State

Ogun State

Oyo State

1.

Agege

Abeokuta-North

Ibadan Central

2.

Mushin

Abeokuta-South

Ibadan North

3.

Alimosho

Ado Odo/Ota

Ibadan North West

4.

Oshodi-Isolo

Ewekoro

Ibadan South East

5.

Ikeja

Ifo

Ibadan South West

Source: Field Survey, 2007
3.7 Sources of Data

Both primary and secondary sources were used for the data collection. The primary data was obtained mainly with the instruments of questionnaire and interview methods. Questionnaires were administered to 570 focused entrepreneurs of the study. Concerning information on the contributions of SMEs and women entrepreneurs to Nigerian GDP, GNI, employment generation, wealth creation and so on, secondary data information were obtained from the published documents of CBN, Federal Office of Statistics, Nigerian Chamber of Commerce, Industry, Mines and Agriculture, National Association of Small and Medium Enterprises (NASME), National Association of Small Scale Industries (NASSI), Journals and other materials from financial institutions and NGOs. Additional data were sourced from University Libraries (such as Covenant University, University of Lagos, University of Ibadan, Obafemi Awolowo University, etc). Internet and other sources were also used for sourcing the relevant materials.



3.8 Data Collection Techniques

The data collection technique used in selecting the respondents for the study is the simple random sampling method. Using this method, the names of all the women entrepreneurs from the established sources were first written out and numbers were assigned to them. The respondents were then drawn systematically using a table of random numbers. A total of five hundred and seventy (570) respondents were randomly selected. However, due to: (i) lack of verification of some of these enterprises (ii) wrong registered and unidentified addresses (iii) change of business or product purposes and (iv) improper completion of some of the questionnaires, four hundred and twenty-two (422) or 75.35% of them were adopted and eventually used. Below is a table showing the distribution of the respondents according to states and sectors. The coverage of state based on local governments revealed that 138 or 33% of the respondents are from Lagos State, 134 or 32% from Oyo State and 150 or 35% from Ogun State.



Table 33: Distribution of Respondents by Sectors

Sector

Agriculture

Manufacturing

Trade

Service

Total

State
















Lagos

47

15

45

31

138

Oyo

40

10

22

62

134

Ogun

40

30

55

25

150

Total

127

55

122

118

422

Source: Field Survey, 2007
3.9 Research Instruments

Two types of research instruments were used in carrying out this study. There are questionnaire and interview. The nature of these instruments is explained below:



(i) Questionnaire

In the survey, questionnaire was designed to collect information on the characteristics of women entrepreneurs, factors that motivate them to start up entrepreneurial ventures in the four sectors of Nigerian economy and their entrepreneurial performace. Questionnaire as an instrument for data collection was chosen because it will help the respondents to be objective and more precise in responding to the research questions. The design of the questionnaire was simple and respondent-friendly. The questions were formulated so as to elicit information on women profiles such as age, number of dependent relatives, family size, educational background, type of business, level of income, number of employees at the beginning of the business, number of employee currently serving, reasons for starting up business, location of business, sources of capital, performance measured in term of gross sales / turnovers, obstacles to business and so on. These questions were made up of structured and unstructured questions. The questions were into three parts. Part one has three sections; entrepreneur’s personal bio data, nature of business and entrepreneur’s background characteristics. Part two has seven sections; entrepreneurs’ perception, entrepreneur and environmental factors, motivation and business performance, challenges to women entrepreneurial development, motivation, entrepreneur’s type of business ownership and entrepreneur’s opinion on business. Part three covers information on entrepreneur’s financial performance.


A five-point Likert-scale (Likert, 1961) which ranges from “strongly agree” to “strongly disagree” (5 = ‘Strongly Agree’, 4 = ‘Agree’, 3 = ‘Undecided’, 2 = ‘Disagree’ and 1 = ‘Strongly Disagree’) was used to reflect the agreement of the respondents. Likert scales are widely used in most research in business and other related courses in social science literature (Garland, et al 1984). To elicit the cooperation of the respondents, the nature and purpose of the research were made known to the respondents and anonymity was assured. The respondents were promised access to the thesis if they so desired.

A pilot study was also conducted on twenty four women entrepreneurs selected from the four sectors of the three states involved. The pilot study was considered necessary (i) in order to determine the willingness of the respondents (ii) to have pre-knowledge of the reactions of the respondents and (iii) to know the responses of the respondents. The questions were tested on twenty four women entrepreneurs from the three states who are involved in agriculture, manufacturing, trade and service. According to Czaja (1998) researchers optimized their research results by specifying clearly and precisely pre-testing objectives. After the pilot study, questions were constructed and clarified for the final survey instrument. One hundred and thirty one items in the questionnaire were derived from the result of the pilot test and through literature review of women entrepreneurial motivation (Sarri and Trihopoulou, 2005; Minnit et al, 2006).



The services of research assistants were employed in administering, and collating of the questionnaires. Six of such research assistants (with the distribution of two research assistants for each state) were engaged. These research assistants were mainly from the states of the case study. They were purposively selected so as to gain access to the respondents and for effective interpretation when necessary. The questions were prepared from previous researches (Brockhaus, 1986; Hisrich and Brush, 1986; Dubini, 1988; Otokiti, 1987; Soetan, 1991; Amit, Glosten and Muller, 1993; Orhan and Scolt, 2001; Olutunla, 2001; Ryan and Deci, 2002; Ogundele and Opeifa, 2003; Brunstein and Maier 2005; Gelin, 2005; GEM, 2005; Ojo, 2006; Minnit et al 2006). The survey was carried out between May 2007 and January 2008. This took about eight (8) months. In the process of collecting the data for this study, the researcher encountered a lot of challenges such as lack of cooperation, distrust and suspicion from the respondents.

(ii) Interview
Apart from the questionnaire, personal structured interviews were held with thirty six (36) women entrepreneurs who were purposively selected. The women entrepreneurs selected for the interview are women that are well known in the area of their businesses. The selection was made based on the recommendations the researcher received from the states’ NAWE. The names of their businesses are listed in appendix C. An interview schedule was used to provide a framework for the sessions with the respondents. The interview was based on categorical and open –ended questions (not “yes” or “no” answers) and no pre-set range of responses. This methodology allowed the respondents to convey their views and to elaborate on their answers in their own terms, permitting the emergence of new themes (Strauss and Corbin, 1989). This helped the researcher to have on-the- spot assessment and a better understanding of the motivations, characteristics, performances, challenges and reasons for the choice of business ownership of the respondents. This is necessary so as to confirm the responses given by the women entrepreneurs in the questionnaire and to capture some other information which the questionnaire may be unable to capture.
Interview according to Osuagwu (2002) is also necessary in order to purify and improve the quality of the research questionnaire. The researcher conducted one-on-one interview using a structured interview guide. Though the guide provided a format, the researcher in several occasions expanded the questions so as to get more detailed information from the respondents. The interviews were conducted in English language and the interview time ranged from approximately 30 minutes to 1 hour. Interview questions were also prepared from previous researches (Olutunla, 2001; Ogundele and Opeifa, 2003; Brunstein and Maier, 2005; Gelin, 2005; GEM, 2005; Minnit et al 2006) and these centered on issues of the factors that motivated women for entering into entrepreneurial ventures, their performances, challenges and other related questions.

3.10 Measurement of Variables

Questions were written mainly to assess the factors that motivate women entrepreneurs to start business and the effects of these factors on their performances, challenges, type of business ownership and environmental factors. The items were derived from a careful review of the entrepreneurship literature on women’s entrepreneurial motivation. Some items found to be relevant to motivational factors of women studies include Hisrich and Brush (1986); Denison and Alexandar (1987); Dubini (1988); Scheinberg and MacMillian (1988); Rosin and Korabik (1990); Shane, Kolvereid and Westhead (1991); Ogundele and Opeifa (2003). Among the factors they identified in their studies are social, financial, psychological and environmental factors. These items were compiled and unrelated items were deleted. The items frequently cited as reasons for starting a business were added in the questionnaire. Others include issues like combining family responsibilities with business, glass ceiling, and coping with inadequate resources etc. which were observed to be very peculiar to women entrepreneurs. Other items used as independent variables include family influence, internal locus of control, desire for achievement, risk taking propensity and personal dissatisfaction. The writers behind these studies include Dunkelberg and Cooper (1982); Brockhaus (1986) and Timmons (1978).

Financial factors on the other hand were measured with index of capital adequacy or adequate funds for commencement and expansion of such business and lack of tax reduction and relief (Bannock, 1981; Otokiti, 1987). Another variable used for measuring women entrepreneurship is performance. Measures of performance were both qualitative and quantitative. Qualitative measures covered respondent’s perceptual evaluation of the degree of effectiveness of the entrepreneurs’ business strategies using performance measures such as revenue from entrepreneurial activities, market share, employees’ and customers’ satisfaction in capturing this variable as were identified by Brockhaus and Horwatz (1986); Mokry (1988). On the other hand, quantitative performance measures were provided by the respondents’ income, profitability (profit after tax), number of employees and turnover/sales. These variables are the usual measures of business quantitative performance identified by Hisrich and Brush (1986) Miskin and Rose (1990). Environmental factors took into consideration variables such as government policy, community support, availability of infrastructure and accessibility to suppliers and consumers and we depended extensively on the works of Ronstadt (1984); Keeble and Walker (1994); Otokiti, (1987); Ogundele and Opeifa, (2003).

The tables below which shows how variables used in the study of the motivational patterns of women entrepreneurs in SMEs were constructed and measured was developed from the questionnaire items. See Appendix A.



Table 34: Measurement of Variables - Part 1- Section A

Respondents’ Personal Bio data

Variables

Description

Sex

Single item: Women Entrepreneurs

Marital Status

Four items: single, married, divorced, window

Age

Five items: 15-20, 21-26, 31-35, 40-45, 46 and above

Educational Background

Five items: WASC, OND, HND/BSc, MSc and others

Religion

Two items: Christianity, others

Nature of Business

Four items: Agric, Manufacturing, Service and Trade

Structure of Business

Three items: Sole trade, Partnership, Company

Starting the Business

Four items: From the Scratch, Purchased, Inherited, Joined someone

Source: Field Survey, 2007

Table 35: Measurement of Variables - Section B

Entrepreneurs’ Background Characteristics:

Respondents were asked questions on their entrepreneurial characteristics. These questions include; their position in their nuclear family, educational background, if they have worked before, if their former boss is a man, if they are the breadwinner of their business, if they started business because they needed extra income, if the business is a family business, if they have done the type of business they are doing before, if their parents are in business and they started business because they were sacked in their former place of work. The rating scale ranges from 1-yes and 2- No



Entrepreneurs’ Perception

Respondents were presented with questions on entrepreneurs’ perception. These questions include their opinion on; risk taking, pursuit of moderate goals, tolerance of ambiguity, energy and strength for running a business, creative and innovation, self-confidence, self-esteem, need for independence, self-achievement, gender discrimination, social recognition, desire for extra income, desire for freedom and independence. The rating scale ranges from 5-strongly agrees, 4- agrees, 3-undediced, 2-disagree to 1-strongly disagree.



Table 36: Measurement of Variables - Part 2

Entrepreneurs and Motivational Factors-

Respondents were asked to examine the relationship between entrepreneurial motivations and environmental factors; business performance; challenges they face in business and type of business ownership. The rating scale ranges from 5-strongly agrees, 4- agrees, 3-undediced, 2-disagree to 1-strongly disagree



Environmental Factors

Among the environmental indicators that usually contribute towards the decision for business venturing may include factors such as accessibility to finance, accessibility to labour, accessibility to market, accessibility of customers, accessibility to suppliers, accessibility to transport, availability of supporting service, new technology development, accessibility to electricity, and living condition (scales 5 to 1)

Challenges face in Business

Variables used in measuring challenges women entrepreneurs face in business include; combining family responsibilities, lack of access to finance, lack of support from spouse, customers’ complaints, sexual harassment, coping with competition, lack of power supply, high tenement rates, gender discrimination, lack of training and information (scales 5 to 1).

Type of Business Ownership

Variables used in measuring choice of business ownership include; achievement of self-independence, involvement in family decision making, government support, low capital requirement, convenience, low risk involvement, improvement in quality of life (scales 5 to 1).

Psychological Factors

Variables used in measuring psychological factors include; risk-taking propensity, internal locus of control, need for achievement, tolerance of ambiguity, self-esteem, proactive-ness (scales 5 to 1).

Financial Factors

Variables used in measuring financial factors include; lack of adequate finance for the initial start-up and subsequent expansion, incentive and disincentives of tax system, effects of financial institution regulations an restrictions, government policy on financing SMEs (scales 5 to 1).

Family Influence Factors

Variables used in measuring family influence include; marital status, number of children, number of dependant, year of marriage, family business, business of the spouse, breadwinner of the family, position in the family, participate in the family business ( scales Yes and No ).

Source: Field Survey, 2007

Table 37: Measurement of Variables - Part 3

Business Performance

Variables used in measuring business performance include; sales volume, business profitability, share earnings, market, products quality, efficiency, competitiveness, personal income, business revenue, business assets, investment in equipment, no. of employees at start and currently derving (scales 5 to 1).

Source: Field Survey, 2007

Women Entrepreneurial Motivation Rating Scale (WEMRS)

Women Entrepreneurial Motivation Rating Scale (WEMRS) developed by the researcher from the works of Scott (1986); Sarri and Trihopoulou, (2005); Minnit et al, (2006) which was used to measure the motivational patterns of women entrepreneurs in the South-West Nigeria. The scale includes the following sub-scales: (i) Nature of Business; (ii) Entrepreneur’s characteristics; (iii) Entrepreneur’s Perception; (iv) Entrepreneur’s Business Environment; (v) Motivation and Business Performance; (vi) Challenges to Women Entrepreneurs; (vii) Motivation and Entrepreneur’s Choice of Business Ownership; (viii) Entrepreneur Opinion on Business and (ix) Business Performance


The nature of business has six items that emphasized the business location, structure of business, characteristic of the business, number of the employees and number of branches established by the entrepreneur. Entrepreneur’s characteristics have eighteen items and some of these items include family influence, education, personal dissatisfaction, role model etc. Entrepreneur’s perception has thirty items and these include risk taking propensity, goal setting, creativity and innovation, desire for achievement, proactiveness, competitiveness, access to required capital, self esteem, need for independence, desire for self fulfillment, desire for extra income, desire for change of career etc. Entrepreneur and environmental factors have twenty items which include accessibility to labour, supplier, market, customers, electricity, transportation, network, government policy, migration to the city etc. Business performance has twelve items and this include return on market share, cost consciousness, putting of more time, business profitability, business revenues, estimated value of capital, turnover, investment, total fixed assets, total expenditure etc.
Challenges of women entrepreneurs has eighteen items which specifically include combining family responsibility with business, financial problem, lack of family support, customers complaints, gender discrimination, unfavourable economic conditions, lack of power supply, inadequate level of information and technology etc.
In a similar vein, the choice of business ownership has fourteen items which include; business that requires small amount of capital, small risk, convenient business, business being supported by the government, business that is peculiar to family, business that requires easy registration process etc.
Entrepreneur’s opinion on business has four items that are mainly open ended questions such as business challenges face by women and factors that can motivate women into entrepreneurship.
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