CHALLENGES OF WOMEN STARTING A BUSINESS ENTERPRISE IN NIGERIA
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CHALLENGES OF WOMEN STARTING A BUSINESS ENTERPRISE IN NIGERIA
Chapter one
INTRODUCTION
1.1 Background for the Study
Nigeria’s economic development experience has not been positive for more than two decades. This has resulted in low rates for the majority of economic indices. More importantly, Nigeria’s overdependence on oil has contributed significantly to its economic downturn.
The situation did not improve much until late 1980, when macroeconomic variables began to recover as new development variables were included into the process of her development.
The new value systems introduced include inter-industry relationships, production and distribution process restructuring, recognition of micro and macro enterprises, a new role assigned to entrepreneurship development, increased international competitiveness
economic restructuring, industrial development, and employment generation strategies. These were intended to raise the citizens’ level of living.
The role that entrepreneurship plays in economic growth and development, particularly in developed economies such as the United States, the United Kingdom, Japan, Canada, and others, has caused most developing economies to adjust their developmental concepts and plans, viewing new enterprise development as critical to their economic problems.
Entrepreneurship, as the engine of economic growth and the wheel that propels the vehicle of economic development, has been acknowledged for its role in job creation, revenue generating, poverty alleviation, and wealth building.
This idea is currently recognised as the essential factor in economic development theory (Schumpeter, 1934; Josiane, 1998), and it accounts for the greatest business sector in economies.
It has been identified as a source of employment and economic growth (Culkin and Smith 2000, Peacock 2004; Wang, Walker, & Redmond 2006).
Entrepreneurship is critical for the growth of small and medium-sized businesses (United Nations 2006). With an active Small and Medium Enterprises (SMEs) sub-sector in the manufacturing process, developed and developing countries should expect to rely less on giant industries to propel their economies into the future.
This is because economic rejuvenation and growth will increasingly be driven by firm creation and industry clusters. Entrepreneurship is thus a process that requires a willingness to renew market offerings, innovate, take risks, experiment with new and uncertain products, services, and markets, and be more proactive than competitors in exploring new business opportunities (Covin and Slevin, 1991; Wiklund and Shepherd, 2005).
It attracts both men and women seeking profitable inter-industry relationships. To ensure proper development and competitiveness in firms, much research has been conducted on the participation of both men and women in business activities
particularly those who have personal goals of becoming entrepreneurs. This sector has quickly banded together to achieve success in commercial and enterprise development (Gelin 2005).
Women are thus becoming increasingly essential in the socioeconomic growth of both developed and emerging countries, as they account for a sizable proportion of the owners of Small and Medium Enterprises (SMEs) (Josiane, 1998; Kjeldsen and Nielson, 2000).
Women entrepreneurs make significant contributions to national economies by participating in start-ups and growing small and medium-sized firms (United Nations, 2006).
Their interests and efforts in economic growth and development, particularly in the field of SMEs, have piqued scholars’ curiosity. According to the Global Enterprises Monitor (GEM) (2005)
women engage in a wide range of entrepreneurial activities across the 37 GEM, and their efforts in many countries have resulted in the establishment of numerous new businesses that create jobs and money.
Despite this, entrepreneurship is typically viewed through the lens of a male-dominated economy (Gelin 2005, Josiane, 1998). Because of its complexities, particularly its gender concerns, the role of female entrepreneurs has not been thoroughly recorded.
While women’s firms are an important part of economic development and public policy in most nations, scholarly study on female entrepreneurial activity is limited.
Enterprises’ function as labour market agents for job creation, income creation, poverty alleviation, and resource provision has greatly contributed to the global expansion in the number of women-owned entrepreneurial businesses.
The rise of the private sector as a major participant/player in many countries’ industrial development has also improved women’s access to employment opportunities, as opposed to when they were denied opportunities as wage workers due to family responsibilities, a lack of skills, and social and cultural barriers (Josiane, 1998).
To deal with these issues, the development of self-employment, particularly among SMEs, became their last choice. Small and medium-sized enterprises (SMEs) account for more than half of the Gross Domestic Product (GDP) of most developed and developing countries.
Its contributions to economic growth have mostly focused on job creation, poverty reduction, environmental vitality, wealth generation, and human capital.
Women entrepreneurs therefore account for more than half of the operators of the SMEs sub-sector, and they operate more frequently in the agricultural, manufacturing, trade, and service sectors (Kjeldsen and Nielson, 2000; Community, Women, and Development (COWAD), 2004, Gelin, 2005).
However, the operation of SMEs entails significant risks, hard labour, huge sacrifice, and sincerity of purpose that overcomes several hurdles. Women entrepreneurs may face more risks, problems, and obstacles than men (Ojo, 2004), reducing their chances of success significantly (Hisrich and Brush, 1986).
Given the numerous challenges and obstacles that SMEs face, particularly in Nigeria, such as capital inadequacy, a lack of required infrastructure, and a shortage of manpower, one might conclude that women are typically discouraged from venturing into enterprise development. But today’s story is different: women are launching and growing businesses at an unprecedented rate.
For example, in the United States, an analysis of gender creative firms reveals that women-owned businesses expand at twice the pace of men-owned businesses, accounting for more than 35% of all entrepreneurial initiatives.
They create more than $2.3 trillion in annual revenue and employ 18 million people (Bartol and Martin, 1998). In Nigeria, women’s businesses are regarded as an essential component of economic growth.
Their companies provide jobs, as well as productive and distributive activities necessary for wealth growth in both the family and national economies (Soetan, 1997; Okunade, 2007).
Women who work in companies and SMEs are able to effectively combine their productive and reproductive roles due to the flexibility in hours of work, which allows them to care for their children while also contributing significantly to economic growth (Soetan, 1997). This has led to women being considered as the primary focus of economic growth and public policy concerns (Bagby, 2005).
1.2 Statement of the Research Problem
In Nigeria, women make up more than half of the overall population and account for a sizable labour force (Afonja and Aina, 1993; Soetan, 1997; Okunade, 2007).
Despite their involvement in the commercial and service sectors, women continue to play important productive roles that contribute to the nation’s economic development, particularly during times of economic distress.
Several research (Hisrich and Brush, 1985; Simpson, 1993; Buttner and Moore, 1997; Hurley, 1999; Kutanis and Bayraktaroglu, 2003) indicate a positive association between women’s engagement in business and economic progress.
Despite their role in economic development through entrepreneurship, women have limited access to and control over financial and other resources. They have bore the brunt of the structural adjustment measures being implemented in Nigeria (Afonja and Aina, 1993; Barrett, 1995; Soetan, 2004; Usman, 2008).
Despite this, researchers Yves et al. (2001), Kutanis (2003), and Aina (2003) have identified a rising number of women entering the field of entrepreneurship. Buttner and Moore (1997) and Minniti and Arenius (2003) have reported on the recent women’s organisational migration to entrepreneurship in emerging countries.
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