An Assessment Of The Choice Of Performance Of Women Entrepreneurs In Technological And Non-Technological Enterprise

AN ASSESSMENT OF THE CHOICE OF PERFORMANCE  OF WOMEN ENTREPRENEURS IN TECHNOLOGICAL  AND NON-TECHNOLOGICAL ENTERPRISE IN LAGOS, NIGERIA

Entrepreneurship is a multidimensional phenomenon that cuts across disciplines. There is no universal theory of the phenomenon. The existing theories 0f entrepreneurship are propounded from variety of schools of thought, with many authors emphasizing different variable to explain it among these variable are culture (Gadgil 1954, Jenkins 1984).

The explanation provided by the different theoretical approaches gave height to some entrepreneurial behavior. Entrepreneurship is basically the exploitation of a business idea though owning a private business REEE(2001) defined entrepreneurship as the discovery evaluation and exploitation of opportunities.

 

Dorfand Byers (2005) defined technological entrepreneurship as a style of business leadership that involves identifying high-potential, technology-intensive commercial capital and managing rapid growth and significant risk using principled decision–making skills. Shame and Venkataman (2003) defined technological entrepreneurship as the process by which entrepreneurs assemble organization resources and technical systems, and the strategies by entrepreneurial firm to pursue opportunities. Technological entrepreneurship is needed to make full use of the knowledge of science and technology currently available and to meet market need, thereby making the country in question more productive and more competitive internationally. It involves a process of industrial innovation and technology transfer in the country. Technical entrepreneurship is initiated and eliminated in design development, production, engineering and commercialization of innovation new products and processes. The challenge is to increase the frequency and pace of innovation in all sectors of the country economy. Professional engineers due to their education, training and work experience are well positioned to practice technological entrepreneurship. Reviews of literature by (Witt and Zecher 2005) reveal that the scientifically trained personnel are in a better position to transfer innovative researchers to commercial production.

Women entrepreneurship is developing in the organization for economic co-operative and development (OECD) member countries, women-owned business are increasing at a very rapid pace in term of both member and turnover. Women entrepreneur constituent a growing share of SME owners, with higher than average start-up rate in several (OECD) member and non-member countries and economics in an era of global economic integration,. This significant economic and social development is of growing interest policy makers worldwide.

Women entrepreneurship in Nigeria is common in the informal sector and activities in this sector seen to be invisible, along with their contributions and needs despite government programs aimed at reaching small-scale entrepreneurs. Women as a group are not considers for assistance. A major reason for this is that most of the enterprises women engage in, such as petty trading, dress making, hairdressing, food processing and small-scale manufacturing, fall outside the census of production surveys. These surveys normally include enterprises employing 10 or more people (Soctan 1995).

Women have limited access to critical resources like education, land, technology and credit; hence, they are often excluded from employment in the formal sector. Theoretically, the informal sector captives certain peculiarities, such as informality of business organization, use of rudimentary technology, lack of separation of consumption and production, ease of entry and exist, reliance on family labor and apprentices, and small requirements for capital.

Since the last two decades, women have entered the field of entrepreneurship is greatly increasing numbers. The routes women followed to take leadership roles in business vary and most of them have overcome or worked to avoid obstacles and challenges in creating their business. The presence of women in the work-place in during small and entrepreneurial organizations has had a tremendous impact on employment and on business environment worldwide (Gundry and Welsch, 2001). A significant trend in the US economy was the recognition of the growth of women-owned business which was estimated to be 50% of all US business by the year2000 (British 1992). Wither they are involved in small or medium-scale production activities or in the information or formal sectors, their contribution to output and value added in the manufacturing sector is  sustain tail, even though it remains partly invisible in official statistic. Women’s entrepreneurial activities are not only a means for economics survival but also have positive social repercussions for the women themselves and their social environment (UNIDO, 2001). The growths of their business have also contributed to the global economy, and the economies of their immediate communities and countries (Gundry and Welsch, 2001).

The factors influencing the choice performance of business enterprises have been a well-researched area by scholars for many years. Previous research indicates several factors of influence. These include the entrepreneurs themselves, their professional background, their entrepreneurial capabilities and preferences, cultural and religious beliefs, as well as the technological and macro environment. In this study, these factors and others that are more relevant to the Nigerian context were collected and surveyed both in the informal sector of service and manufacturing enterprises. Basically two questions prompted this study:

  1. What factors influencing the performance of women in service and manufacturing in macro and small-scale enterprises of the Nigerian economy?
  2. What factors are responsible for the choice of service and manufacturing ventures by women?

These questions suggest that separate factors influence the choice and performance of women in service and manufacturing business. Some of the theories found in the literature that are related to choice and performance in businesses include demographic characteristics such as gender, age and marital status. For instance Rashees (2002) found that the above demographic factors have an impact on entrepreneurial intention and endeavor Stevenson and Jarillo (1990) disclosed that successful entrepreneurs were relatively younger in age while Mazzarol et al (1999) in their study shows that female were generally less likely to be founders of technological business than male. These factors were examined in the study to determine their effect on the choice and performance of women in technology and service base businesses.

Similarly, another important factor influencing the choice and performance of women in human capital such as educational background and previous work experience. Human capital plays an important role with respect to entrepreneurial know-how as well as access to external resources (NEPAD, 2003). For instance, in their different research, Kourilsky (1980) and Bates (1986) showed that educational attainment levels are positively associated with self-employment increases with education. Also, individual with prior work experience in related business have significantly higher entrepreneurial intentions than those without such experience (Kourilsky, 1980). In Nigerian and in some other part of the world, some entrepreneurs pull out from businesses where they have previously worked as staff to start their own businesses. However, in some of these cases, the entrepreneur lacks the needed educational back-ground, skill and professionalism as well as managerial experience to manage the business. This has resulted into a short life span of many businesses.

Previous research also indicate that individual who were entrepreneurs at some point in time succeed more often in starting another business due largely to existing network or their ability to recognize business opportunities.

In the same vein, other research indicates that unemployment (not necessarily a lack of professional experience and self-confidence) play a major role with respect to business success.

Summary of Review

In term of access to external resources most women have limited access to funds to enable them start and expand their own business. For instance, studies have shown that female entrepreneur starts with less capital and their enterprise stays smaller in terms of employment and turn over compared to businesses led by male entrepreneurs. In most case, they settle for businesses requiring small capital and little managerial experience. Banks are unable to grant them loans because of fear that they may not be able to pay back and usually the entrepreneur lacks collateral that can be presented to the banks.

The external environment is another factor considered in literature as crucial ad necessary for the success of an enterprise. Such environment includes family, friends, customers, and business cartel and government support structure such as business development and incubation center.

Motivational factors into entrepreneurship such as family, influence personal decision, intuition and many more determined extensively how well the entrepreneurs perform in his chosen venture.

In conclusion, venture choice and performances is influenced by the variety of personnel, family, social environmental factors and capabilities.

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