Women's participation in micro and small enterprises: the case of Addis Ababa

Abstract

This study aimed to investigate factors affecting the participation of women-owned MSEs in the manufacturing sector in two selected sub-cities of Addis Ababa, namely, Kolfe Keranio and Nefas Silk Lafto sub-cities and to explore and gain a deeper understanding of the lived experiences and participation of women who own MSEs in the manufacturing sector as well as government entities that support these MSEs. The study adopted a qualitative, exploratory research approach. Semi-structured in-depth interviews were conducted to collect data from women who participated in the manufacturing sector, government officials, MSEs experts in the sub-cities and gender office professionals who worked closely with women’s MSEs in the manufacturing sector. Besides, direct observation was used to get firsthand information concerning the nature of women-owned MSEs and their working environments such as limited working space, lack of warehouses, and physical constraints relating to the use of stairs in storeyed buildings, among others. Document review and secondary data were used to triangulate the results from the interviews and obtain quantifiable data that could be used to clarify certain issues in the study. The data were analyzed using thematic data analysis to identify how the theme related to the research objectives. The researcher used a table to visualize the coded themes to determine which was the major problem, support, and characteristics of women-owned MSEs. The study revealed that women have limited education levels and skills. It is thus difficult for women who own MSEs to exploit advantages or opportunities to expand their business. The findings also reported the inability to access finance for MSEs start-ups and expansion. Women generally lacked information regarding various aspects of MSEs during the establishment of their businesses. Women-owned MSEs have received some support, particularly from government agencies. However, the support they are currently receiving is inadequate to enable them to transform their business. Women-owned MSEs still face problems on many fronts including workspace, limited finance, outdated technology, poor marketing strategies were among others that need addressing. To develop women-owned MSEs and empower other women in the field, the government, the public sector, and formal financial institutes should be informed on the value of gender-balanced contribution in the informal sector enterprises. It is recommended that there should be a greater focus on the social and economic empowerment of women, as they constitute a vulnerable social category that is critical in development endeavors.