The Challenges of Growing Small Businesses - International Labour ...

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Copyright © International Labour Organization 2004 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to the Publications Bureau (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland. The International Labour Office welcomes such applications. Libraries, institutions and other users registered in the United Kingdom with the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP [Fax: (+44) (0)20 7631 5500; email: cla@cla.co.uk], in the United States with the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923 [Fax: (+1) (978) 750 4470; email: info@copyright.com] or in other countries with associated Reproduction Rights Organizations, may make photocopies in accordance with the licences issued to them for this purpose. ISBN 92-2-116521-3 ISBN 92-2-116522-1 (web pdf) First published 2004 The Challenges of Growing Small Businesses: Insights from Women Entrepreneurs in Africa The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address, or by email: pubvente@ilo.org Visit our website: www.ilo.org/publns Printed by the International Labour Office, Geneva, Switzerland
Foreword The ILO’s Programme on Boosting Employment through Small Enterprise Development (SEED) has been able to intensify its support for women’s entrepreneurship development in Ethiopia, Tanzania and Zambia thanks to the support provided by Development Cooperation Ireland. During 2002, the ILO commissioned comprehensive reviews of existing literature on women entrepreneurs in each of the three countries. Based on these reviews, a number of key issues were identified that merited further investigation and research. Between 2002 and 2003, the ILO commissioned a series of three linked studies with a particular focus on issues relating to women entrepreneurs — “Going for growth”. This research in Ethiopia, Tanzania and Zambia involved interviews with more than 360 women entrepreneurs. The research process proved to be invaluable in as far as it identified problems and issues that required immediate attention and action. The findings shed considerable light on the situations facing women entrepreneurs in trying to start, grow and formalize their businesses. The reports emphasized the significant contribution that women are making to enterprise creation and employment. From the three countries, we find that the womenowned enterprises in the sample employed between 6 to 8 workers, and this figure is increasing. These substantial findings have helped to “debunk” the idea that women entrepreneurs are largely engaged in petty trading. In addition, the findings informed many of the ILO’s support actions in each of the three countries, involving support on issues such as improving market access, strengthening associations of women entrepreneurs, promoting women entrepreneur role models, and generally creating a high profile for the contribution of women entrepreneurs in the national economies. In gathering the background information, the authors identified a large number of resource documents and these have been included as a final section in the report, thus providing a valuable resource for practitioners, policy-makers and academics alike. The entire process has involved a large number of actors, too numerous to mention. However, particular reference should be made to the contributions made by the three national research teams: in Ethiopia, Zewde and Associates, led by Mr. Zewde Biratu; in Tanzania, University of Dar es Salaam Entrepreneurship Centre (UDEC), led by Dr. Marcelina Chijoriga; in Zambia, JUDAI Consultants, led by Ms. Monica Munachonga. The ILO has undertaken this work in partnership with national governments: Ministry of Trade and Industry in Ethiopia; Ministry of Industry and Trade in Tanzania; and Gender in Development Division (GIDD), Cabinet Office, Zambia. The ILO’s work on women’s entrepreneurship development is seen as an important means of action for promoting gender equality in the field of enterprise creation and growth. The efforts being made by governments, such as in Tanzania, to improve gender mainstreaming in SME policy implementation can largely be attributed to the ILO’s supportive interventions. Similarly, governments in other neighbouring countries, such as Kenya, are also beginning to benefit from this work. Furthermore, lessons emerging from the research and subsequent ILO actions are not limited to the African context, but they also help to inform the ILO’s technical work in this field globally. iii
Page 1: SEED Working Paper No. 47 Series on
Page 5 and 6: Table of contents Foreword ........
Page 7 and 8: 5.2.2 Abilities, skills, and experi
Page 9 and 10: Executive summary This report provi
Page 11 and 12: Acronyms AEMFI BDS CSA CSO COMESA E
Page 13 and 14: WED WED Study WEDAZ WEPC WEDGE ZCSM
Page 15 and 16: The Gender lexicon Gender was taken
Page 17 and 18: 1. Introduction and background 1.1
Page 19 and 20: 1.2 Aims and objectives In associat
Page 21 and 22: Phase Two (July-Oct 2002) Workshop
Page 23 and 24: • The Enterprise Level, as relate
Page 25 and 26: • The Enabling Environment for En
Page 27 and 28: (ii) Degree of Formality Another ch
Page 29 and 30: 1.4 The Structure of the report Thi
Page 31 and 32: The lack of up-to-date and comprehe
Page 33 and 34: employees, marketing and resources,
Page 35 and 36: eluctant to make legal agreements w
Page 37 and 38: Most of the existing research would
Page 39 and 40: promotional activities, may be ques
Page 41 and 42: Tanzania, the Women and Gender Deve
Page 43 and 44: Throughout the preliminary reports,
Page 45 and 46: 3. Jobs, gender and enterprise in A
Page 47 and 48: • In Tanzania, there was a greate
Page 49 and 50: 4. Profiles of women entrepreneurs
Page 51 and 52: networking skills for business. Ind
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Table 6: The primary reasons given
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Table 7: Type of business by sector
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This reliance on personal sources o
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and JUDAI, 2002). The WED Study fin
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4.4.2 Why formalize? The women entr
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Table 13: Forms of business develop
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employment practices, signs of impr
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Table 16: Number of employees at st
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premises, and this factor constrain
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cent of women able to name credit a
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oth. Those who were members were po
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their time is already constrained b
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In Tanzania the research acknowledg
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Figure 12: Ingredients for a succes
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men business owners surrounding the
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and also help to diversify risks; a
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(iii) Attitudes to collateral One m
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egulations. There is no recognized
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6. Key recommendations from the Nat
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oadly similar in nature and focus,
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appropriate services that are desig
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- Are sometimes regarded as “mino
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addressed effectively with positive
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Abdulahi, Hayat (1997): “Constrai
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Economic Commission for Africa (ECA
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Hulme, D. and Mosley P. (1998): Mic
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Maliyamkono, T. L. and Bagachwa, M.
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Oyhus, A. O. (1999): “The importa
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Temu, S. S. (1997): Financing and I
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Wangwe, S.M. (1993): “Small and m
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Identify ways in which Governments,
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Elements impacting on successful mi
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1.3 The research approach The WED S
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Market access and developing BDS (a
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III. IV. Special efforts should be
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II. III. IV. Women entrepreneurs an
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110 V. As women experience particul
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Access to resources and finance (a)
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114
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22. “Ajuste Local à Globalizaç
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59. “Facilitating Youth Entrepren
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