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

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esearch showed that women entrepreneurs were creating a considerable amount of employment for others, both on a formal and informal basis. Of the 344 women’s businesses which employed others in addition to the woman entrepreneur herself, a total of 2,701 jobs were created, and of these 2,014 were full-time paid positions, as outlined in Table 15. Table 15: Employment created by the women entrepreneurs Ethiopia Zambia Tanzania Full-time 592 875 547 Part-time 112 108 158 Paid family 44 * 47 Unpaid family /others 77 16 28 Temporary/seasonal paid * 14 * Apprentices * * 83 Total number of jobs 825 1,013 863 Total number of businesses in survey 120 96 128 By secondary business * * 231 Source: ILO, 2003a, b and c. *Note: The blank boxes signify that this information was not gathered, and should not be interpreted as “zero”. In Tanzania, the average number of full-time paid jobs created per business was 7.6, with 67 per cent of the 128 women interviewed employing between one and nine people. In Zambia and Ethiopia, the majority (61 per cent and 56 per cent respectively) of the women were employing between one and five workers, with the overall average being 8.7 and 6.7 respectively. In Ethiopia this was well above the average of three persons, as reported in other government surveys of the sector (Zewde & Associates, 2002). The survey samples in all three countries included women whose businesses were “significant” employers, taken as being those with 20 or more employees. In Ethiopia five businesses employed over 21 workers, with the largest employing 46 (of which 14 were full-time and the rest part-time, paid workers). In Zambia four businesses employed over 31 employees, and in Tanzania six businesses had over 20 employees. One of the case study businesses in Zambia, a contract cleaning service not counted in the survey or statistical analysis, employed a total of 88 people. In Tanzania, the field research explored this issue of employment in more depth and found that several of the women entrepreneurs in Tanzania had established more than one business, and these “additional” businesses created employment for a further 231 people. So in total, the 128 women entrepreneurs in Tanzania were generating a total of 1,094 jobs, including those of apprentices and unpaid family members. In Zambia, the researchers asked the women entrepreneurs how many employees they had at start-up, as well as their current employment profile. Whilst Table 16 does not track individual changes, it does show that the collective change over time had been beneficial in total terms of employment creation, with the 118 firms employing only 312 people at startup, as compared to the current total of 1,013 jobs. 50
Table 16: Number of employees at start-up and the time of survey in Zambia Number of workers At start of business At time of survey Frequency Per cent Frequency Per cent 0 workers 22 18.6 11 9.3 1–5 workers 77 65.4 72 61.0 6–10 workers 11 9.3 22 18.6 11–15 workers 4 3.4 4 3.4 16–20 workers 2 1.7 3 2.5 21–25 workers 1 0.8 - - 26–30 workers - - 2 1.7 31 workers & above 1 0.8 4 3.4 Total 118 100.0 118 100.0 Source: ILO, 2003 c. These employment figures significantly challenge any stereotypical view of women entrepreneurs operating only at a micro level and with little or no job creation potential. The women entrepreneurs in the WED Study are clearly generating significant employment, and in doing so they are contributing to the sustained livelihoods of their own immediate families, their employees and their families, and the wider communities. 4.7 Future development of the business In discussions around managing the business, the WED Study research also examined the women entrepreneurs’ plans for the future of their business. Many of those surveyed clearly felt that the business was currently successful – although the women varied in how they defined “business success”. In Ethiopia for example 72 per cent of the women felt that their business was currently successful and they measured this success in the following ways: • Profitability of the business (20) • Business enables support to family (14) • Self-esteem or satisfaction in the business (11) • Income is growing (7) • Business is expanding (5) • Increased number of customers (4) • Supplying more goods (4) • Business is running smoothly (2) • Opportunity for self-employment (created job for myself) (2) 51
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SEED Working Paper No. 47 Series on
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Foreword The ILO’s Programme on B
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Table of contents Foreword ........
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5.2.2 Abilities, skills, and experi
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Executive summary This report provi
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Acronyms AEMFI BDS CSA CSO COMESA E
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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
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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
Page 53 and 54: Table 6: The primary reasons given
Page 55 and 56: Table 7: Type of business by sector
Page 57 and 58: This reliance on personal sources o
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Page 65: employment practices, signs of impr
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Page 90 and 91: 6. Key recommendations from the Nat
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Page 94 and 95: appropriate services that are desig
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Page 100 and 101: Abdulahi, Hayat (1997): “Constrai
Page 102 and 103: Economic Commission for Africa (ECA
Page 104 and 105: Hulme, D. and Mosley P. (1998): Mic
Page 106 and 107: Maliyamkono, T. L. and Bagachwa, M.
Page 108 and 109: Oyhus, A. O. (1999): “The importa
Page 110 and 111: Temu, S. S. (1997): Financing and I
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Page 114 and 115: 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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