On the issue of investment, Table 51 below shows that 26(7%) of the respondents invested less ten percent of their profit into capital expenditure, 44(11%) of the respondents invested ten to twenty percent of their profit into assets, 132(33%) invested their twenty one to thirty percent of their profit into assets, 147(35%) of them invest thirty one to forty percent of their profit into assets while 73(14%) of them invested more than forty one percent of their profit. On the contrarily, 190(42%) of the respondents invested less than ten percent of their income into assets, 111(24%) of the respondents invested ten to twenty percent of their income into assets, 57(12%) of the respondents invested twenty one to thirty percent of their income into assets, 28(5%) of the respondents invested thirty one to forty percent of their income into assets while 36(7%) of them invested forty one percent of their income into assets.
Table 51: Percentage (%) of Investment that Represent Profit and Income before Starting the Business
Percentage (%) of Investment that Represent Profit
Percentage (%) of Investment that Represent Income
41% and Above
41% and Above
Source: Field Survey, 2007 The estimates of initial percentage (%) of investment representing annual profit of the business and the current percentage (%) of investment representing annual profit are cross tabulated and represented in the Figure below, The percentage of investment representing annual profit increased when it was less than ten percent (10%), decreased at 10%, it stabilized until it got to 30% when it dropped again afterwards. According to the plotted graph, the profit at start tends to fall marginally at 200 with a peak at forty percent (40%) follow by marginally increases. Entrepreneurs’ current annual profit also increases sharply but fell at three hundred (300) and latter experience a rise at forty percentage (40%). Graphically this can be represented in a graph as below.
igure 27: Percentage of Investment Representing Annual Profit at the Start and Current of Business
Estimated Value of Initial Annual Sales and Current Total Sales
Table 52 below shows that 270(64%) of the respondents’ estimated value of initial sales stood at an amount below N50,000, 81(19%) of them had their initial sales value to be N50,999-N100,000, 34(8%) of them had their initial annual sales to be between N100,999-N150,000, 24(6%) of them had their initial sales value to be N150,999-N200,000 while 13(3) of them had their initial sale value to be N200,999 and above. Also looking at their present sales value it was discovered that the amount has tremendously increased. Twenty two or (5%) of the respondents’ current total sales is below N10m, 25(6%) of them had their sales value to be N10,999,999-N20,000,000, 253(60%) of them have their current sales to be N20,000,999-30,000,000, 81(19%) of them have their sales value to be between N30,000,999-N40,000,000 while 41(10%) of them agreed that their current sales value is N40,000,999 and above.
Table 52: Estimated Value of Initial Annual Sales and Current Total Sales
Initial Annual Sales
Current Total Sales
N50,999 – N100,000
N100,999 – N150,000
N20, 999, 999 – N30,000,000
N150,999 – N200,000
N30,999,999 – N40, 000,000
N200,999 and Above
N40, 000,999 and Above
Source: Field Survey, 2007 Source of Initial Capital
Table 53 below shows that 258(61%) of the respondents raised their initial capital through savings, 23(6%) of the respondents agreed that they raised their initial capital through bank loan, 48(11%) of the respondents raised their initial capital by borrowing from their friends, 73(17%) of them raised initial capital through their family member s and relations, while 20(5%) of them raised their initial capital through other unspecified means.
Table 53: Source of Initial Capital
Borrowing from friends
Borrowing from relations
Source: Field Survey, 2007 Factors that Motivated Women to go into Entrepreneurship
Table 54 gives the descriptive statistics of one of the main variables used in this study. Factors that motivate women to start and grow their business were observed and analyzed. Five factors were identified; family influence, educational attainment, experience, personal dissatisfaction and role modeling. Sub-factors are here presented under each of the main factors that were measured.
Family influence as a factor was equally investigated to determine whether the parents of the entrepreneurs were self-employed or not. The researcher investigated the position of the entrepreneurs in the family and other issues as factors that motivate women to start and grow their business. It was discovered that 193 respondents indicated that they were first child of their parents, representing 45.73%, while 229 (54.26%) said ‘no’ to the question. However, looking at these figures, one can deduce that the percentage of being ‘the first child’ as an entrepreneur is high considering other options such as ‘being sacked from someone’s place of work’, ‘being the only child of their parents’, ‘participating in a family business when they were younger’ and education background. Being the only child as motivation for women to start and grow their businesses was cited by 170 participants representing 40.28% while majority of them, 252 (59.72%) reported that they were not their parents’ only child. One hundred and twenty or 28.43% of the respondents accepted the fact that their parents were originally self employed. Being the only child, according to this finding was not likely to be the reason why women start and grow their businesses.
Majority of the entrepreneurs, 302 (71.56%) said ‘no’ to the question ‘if their parents were self employed’ while 120 representing 28.43% indicated ‘yes’. Considering the question ‘if their business relate to their family business’, 200 (47.39%) of the respondents agreed that the type of business they are into is peculiar to their family business while 222 (52.61%) of them said ‘no’ to the question. In response to the question ‘whether a business is currently running in their family’, majority 229 (54.26%) said ‘no’ while 193 representing 45.73% said ‘yes’ to the question. Majority of the women entrepreneurs 322 (75.83%) said ‘no’ to the question whether they participated in their family business when they were younger while 102 indicated ‘yes’, this represents 124.17%. Majority of the women entrepreneurs under this study, 353 (83.65%) started business because they wanted to be closer to their families while 69 of them indicated ‘no’ to the question and this represented 16.35% of the respondents.
Education/training as a factor revealed that majority of the entrepreneurs, 293 (69.43%) of the respondents were motivated to start and grow their business as a result of training they received rather than their educational background which is 200 (47.39%). This implies that training is very important to entrepreneurial venturing; meaning that irrespective of someone’s educational background, through training, one can acquire the required skills for the success of a business.
Most of the respondents, about 353 (83.65%) had worked for someone before starting their own businesses while 69 or 16.35% had not had working experience before going into entrepreneurship. Also, many of them, about 303 (71.80%) of them started their businesses immediately they stopped working for someone. This implies that working experience is an important factor that motivates women entrepreneurs into starting and growing their businesses.
Surprisingly, majority of the women entrepreneurs about 353 (83.65 %) of them were dissatisfied working for men. Looking at the circumstances that made the respondents to start their business, 193 (45.73%) of them agreed that they started their entrepreneurial venture because they were dissatisfied with their former place of work, while 229 (54.26%) of them disagreed that they went into business because of dissatisfaction with their former place of work.
Role modeling is also another factor that motivates women entrepreneurs. 338 (80.09%) of the women entrepreneurs were encouraged by a role model while 84 (19.91%) were not.
Table 54 shows that 353 (83.65%) of the respondents agreed that they went into business mainly because they wanted extra income while 69 (16.35%) of them disagreed that they entered into business because of money. Also 303 (71.80%) agreed that they started their business because of their dissatisfaction with their financial status, while 119 (28.20%) disagreed that they went into business because ‘they were dissatisfied with their former financial status’.
Is the business you are currently running your family business?
Is this type of business peculiar to your family?
Did you participated in your family business when you were younger?
Did you start your business because you wanted to be closer to your family?
Are you the first in your nuclear family?
Are you the only child?
Does your educational background relate to your
Did you received training related to the business
before you started your own?
10. Have you worked for someone before?
Did you start this business immediately you
stopped working for someone?
12. Is your former boss a man?
13. Were you dissatisfied with your former place of
Is it your desire to earn more or extra income that pushed you into
15. Were you sacked from your former place of work?
16. Did you start this business because of
dissatisfaction with your former financial status
17. Were you encouraged by a role model?
Source: Field Survey, 2007 Using Mansor’s (2005) motivational factors classification, the above items can further be
grouped as family influence, pshychological (personal dissatisfaction and experience), financial and environmental factors (education/training and role model). This forms the basis for the classification of this study’s independent variables used for the analysis of the hypotheses. In emphasizing the factors that motivate women into business, the information obtained from the instrument of the interview can be used to buttress this point more. The women entrepreneurs interviewed under this study were asked “what are the different factors that motivated you to go into business?”, Out of the 36 women entrepreneurs, 88% of them gave different reason(s) for their involvement in business. Some of these reasons include;
gaining freedom of decision and expression, it helps someone to be economically independent, it helps someone to be a leader, earning of income according to one’s performance, porousity of the labour market and economy, desire to have investment/fortune, strive for higher income of your own, public reputation that follows business ownership; frustrated as employee because of being under control, people pay less or no tax when they start business, you will be allowed to work within a unit that can be supervised from the beginning, opportunity to create something lasting and durable, ability to determine the amount of your income, possibility to work with your spouse/family member(s) etc. (Responses from women entrepreneurs interviewed).
Patterns of Motivation
Table 55 below gives the descriptive statistics of another main variable used in this study. Motivational patterns that exist across different business sectors where women entrepreneurs operate were observed and analyzed. Two patterns were identified as intrinsic and extrinsic motivation (Ryan and Deci, 2002; Brunstein and Maier, 2005).
Intrinsic and Extrinsic Factors
Intrinsic as a factor investigated the situation when the business activity and the business environment elicit motivation in an entrepreneur. Internal desires to run a business such as when women entrepreneurs engaged in business activities because it gives them pleasure and helps them to develop a particular skill. The extrinsic factors are external to the individual and unrelated to the business they do. These include money, prestige, family influence and so on. Table 55 shows that most women in agricultural sector 115 (27%), reported to be intrinsically motivated while women in manufacturing, trade and service sectors that were intrinsically motivated are 10(2.37%), 40(9.48%) and 40(9.48%) respectively. On the other hand, women in manufacturing, trade and service sectors reported to be extrinsically motivated are 42 (9.95%), 83(19.67%) and 79(18.72%) respectively. In all, majority of the women entrepreneurs were extrinsically motivated.
Table 55: Motivational Patterns Across Economic Sectors
Source: Field Survey, 2007
Out of the total responses obtained from the depth interview, those who were intrinsically motivated into entrepreneurship were 54% while those who were extrinsically motivated were 36%. 8% of the 36 respondents did not see the question as relevant because according to them, it has been long they started business and it does not really matter what led them into business, but what matters is that they are presently doing something. The remaining 2% bluntly answered “No comment”.
There is a paradox of intrinsic and extrinsic motivation. Intrinsic motivation is far stronger a motivator than extrinsic motivation, yet external factors that include money, prestige and family influence were found to be associated with high performance across different business sectors where women entrepreneurs operate as shown in Table 56. Surprisingly, those that are extrinsically motivated had access to more initial capital than those who were intrinsically motivated and lower turnover across the sectors. As presented in the table below, the performance analysis shows that the mean figure for capital of those in agriculture who were extrinsically motivated (186,000) is higher than intrinsically motivated, while the turnover of those that were intrinsically motivated (245,000) is higher than those that were extrinsically motivated into business (242,000). In manufacturing sector, the extrinsic mean for the capital (918, 000) is higher than the intrinsic figure (626,000), the mean figure for the trade and service sector shows that extrinsic is higher than the intrinsic figure.
Table 56: Motivational Patterns and Performance among Women Entrepreneurs
Across Economic Sectors
Source: Field Survey, 2007 Challenges that Women Entrepreneurs Face in Business
Table 57 below presents challenges faced by women entrepreneurs in starting and growing their businesses across different sectors. Financial related problems appear to be the most common to all the sectors, because the figures seem to be the highest among other challenges. The Table shows a mean figure of 46.34, 72.82, 68.42 and 64.84 for agricultural, manufacturing, trade and service sectors respectively. Agriculture surprisingly revealed low response and reaction to finance variable. Here, (agro) family related problem was considered as highly significant. In order of prominence, nature of the business was cited moderately by all the sectors except service sector. This was closely followed by sexual harassment cited in service and trade sectors (24.77 and 24.12) which are higher than the agricultural and manufacturing sectors (18.42 and 16.28). Sexual impediment was not regarded as a serious problem in manufacturing and agricultural sectors; the weight was however noticeable. The challenge of competition seems to be higher in the service sector (34.46) than in other sectors (24.21, 24.21and 28.17) for agricultural, manufacturing and trade sector respectively. This is not surprising since a lot of women seem to be more in the service sector than in the other sectors.
Table 57: Challenge Incidences on Commencement and Growth of Businesses
Source: Field Survey, 2007 Keys to Abbreviation: Ccc -Competition, customer loyalty and their complaints; Fin-finance Nb-Nature of business Sh-Sexual harassment Frp-Family related problem
Perceptions of Women Entrepreneurs
Table 58 shows different perceptions women entrepreneurs hold about themselves. There are eight prominent perceptions. The first among these is ability to find customers which has a mean score of 4.1451. This is followed by self achievement, which has the mean score of 4.1156. This is followed by independence with a mean score of 4.0466. This is not surprising as the issue of women liberation has become the main reason for women going into business, politics and other activities. The fourth is self esteem with a mean score of 4.0344, creativity and innovation (4.0343), acquisition of the skills required for the business (3.9876), desire for extra finance (3.9876) and energy and strength (3.9811). This implies that most women entrepreneurs believed that they are influential and this influence can be used to attract customers. Secondly, most of them cherished personal achievement “I wanted to have self-achievement by having my own business.” This implies that many of them believe that they can achieve whatever their men counterpart is achieving. Closely following is the need for independence “My need for independence made me to start my own business”.
The need to boost personal self- esteem was also a common perception among women entrepreneurs. Many of them see themselves as highly creative and innovative “I am highly creative and innovative.” The self-confidence and personal pride with internal locus of control are attributes that women entrepreneurs ascribed to themselves “I believe I have control over my business resources through my own efforts”. The desire for extra income seems not to be their main reason for going into business. Probably, because they are being supported by their husbands since majority of them are married. They perceived themselves as strong and energetic “I have the strength and energy required”. They also see themselves as highly skilful “I have the skills required for business; this encouraged me to start this business”. Surprisingly, many of them did not rely on banking sector before starting their business, many of them disagreed with the statement “I started the business because I obtained loan from the bank”. They equally believed that starting their business is as a result of their inability to cope with many things at a time.
Table 58: Entrepreneurial Perception, Innovative Skill and Creative Indices
I enjoy taking risk.
I enjoy pursuing moderately difficult goals
I believe I have control over my business resources through my own efforts.
My tolerance for ambiguity is very high
I have the strength and energy required for this business that I am doing.
I am highly creative and innovative.
My desire to build up equity for retirement made me to start this business.
I started the business because I obtained loan from the bank.
I can easily find customers for my products
I was not challenged by the work that I was started this business.
My desire to be my own boss led me into starting this business.
My need for independence made me to start my own business.
My desire for Self- esteem led me into starting my own business.
I desired self-confidence hence I have to start my own business.
My competitive nature pushed me to start this business
My Proactive-ness pushed me to start this business.
I wanted to have self-achievement by having my own business.
I have the skills required for business, this encouraged me to start this business
Desire to earn an extra income encouraged me to start this business.
I started my own business because I wanted to be more involved in my family affairs; this led me into starting this business.
Desire for a change of career led me into this business.
I could no longer cope combining my former job with my family affairs.
Desire to leave business as a legacy made me to start this business.
Desire for self- fulfillment made me to start this business.
Desire to advance in my career made me to start this business.
Issues of gender discrimination in the labour market made me to start this business.
Desire for social recognition led me into starting business.
I could not get job, hence I had to start my own business.
Desire to experience business growth/success made me to start business.