THE ROLE OF FEMALE ENTREPRENEURS IN POVERTY ALLEVIATION IN RURAL COMMUNITIES

(THE CASE STUDY OF AWKA SOUTH LOCAL GOVERNMENT AREA IN ANAMBRA STATE,NIGERIA)

By

NWOLISA KENECHI KANAYO

Presented To

Department of Entrepreneur

ABSTRACT

The study assessed the role of female entrepreneurs in poverty alleviation in rural communities of Awka South Local Government Area of Anambra State, Nigeria. It specifically analysed the socio-economic characteristics of women entrepreneurship and assessed the contribution of female-owned businesses to poverty alleviation in the study area. The main reason for this study was due to the fact that most studies on the relationship between businesses development and poverty alleviation have concentrated on aggregate effects of small businesses on poverty reduction with little attention on gender issue in rural areas. The study employed primary data. The target population was all the women-owned enterprises from eight communities in Awka South Local Government Area in Anambra State of Nigeria. Data were collected from primary source, using questionnaire on a sample of 205 female-0wned enterprises. Responses of the respondents were analysed using percentages and the chi-square tests were carried out to support the analysis. The study therefore concluded that female-owned micro-enterprises have played key role in poverty alleviation among the businesses' owners in Awka Division through income generation and job creation.

TABLE OF CONTENTS

APPROVAL I

CERTIFICATION ii

Dedication iii

Acknowledgement iv

Outline page v

Abstract 1

CHAPTER ONE

INTRODUCTION

11 Background of the study 2

12 Statement of the Research Problem 2

13 Research Questions 3

14 Objectives of the study 3

15 limitation of the Study 4

16 Statement of the Research Hypothesis 4

17 Definitions of Terms 4

CHAPTER TWO

LITERATURE REVIEW

21 Theoretical Issues on SMEs 7

22 Conceptual Review of the Study

23 Empirical Review 14

24 Concept of Poverty 16

25 Theoretical Framework 18

26 Previous Empirical Studies on the Relationship between SMEs and Poverty 19

Alleviation

27 Alleviating Poverty through Micro, Small & Medium Enterprises Micro, 20

28 Alleviating Poverty through Women Entrepreneurship 21

29 Women as Entrepreneur 22

210 Gap in knowledge 23

CHAPTER THREE

METHODOLOGY

31 Study Area 25

32 Research Design 25

33 Population Of The Study 25

34 sample size 26

35 Methods of Data Collection 26

36 Analytical Technique 27

37 Source Of Data 28

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

41 Socio-Economic Profile Of Respondent 29

411 Age Distribution Of The Respondent 29

412 Educational Qualification 29

42 Nature and Type of SMEs Businesses in Awka south Area in Anambra State 29

421 Nature of Business 31

422 The size of Business 32

423 Ownership Structure

424 Year of operation 34

43 Assessment of Income and Employment generating capacity of SMEs 35

431 Income Generation 35

44 Impact of SMEs on Living Conditions of Owners 35

441 Income Level 36

442 Toilet Facility 36

443 Sources of Water 37

444 Sources of Energy for Cooking 37

4 45 Access to Medical Care 37

446 Sources of Electricity/Power Supply 38

447 Affordable and Adequate Meal per Day 38

448 SME's increase employment 39

CHAPTER FIVE

SUMMRARY, CONCLUSION AND RECOMMENDATION

51 Summary of the Findings 42

52 Conclusion 42

53 Recommendations 43

REFERENCES 44

APPENDIX 48

CHAPTER ONE

INTRODUCTION

11 Background of the study

Poverty is one of the main economic problems facing most countries in the world There have been several strategies to tackle poverty in its various forms and dimensions Of recent, there has been a shift from the capital intensive large-scale industrial policy to Small-scale policy as small scale industries viewed as a sector that creates substantial employment opportunities as they are relatively labour intensive In the light of this, different levels of government in Nigeria have embraced the challenge of promoting small and medium enterprises since 1986 through the Small Scale Enterprises Programme (SSEP) as an engine for economic growth There are many studies on the relationship between small businesses development and poverty rates and overall microeconomic performance on the basis of aggregate time series data But most of the studies have neglected the individual traits of businesses and gender issue, and with less attention on rural areas This study is gender sensitive as it investigates the roles of small businesses owned by women in rural areas in poverty alleviation

12 Statement of the Research Problem

In view of the escalating level of poverty in developing countries constituting a serious problem to economic growth and welfare state of the citizenry, various policies were implemented which could not significantly impact on the level of poverty The failure of various reforms and development programmes to impact on the level of welfare of the citizens in terms of poverty reduction particularly through employment generation, triggered the reappraisal of the role and importance of small and medium sized enterprises as a viable channel to attaining economic growth and development especially in terms of reducing the poverty level in the economy as was witnessed in the developmental progress and economic transformation of some developed countries In most developing countries, attention has not been focussed on development of businesses owned by women due to the perception of their traditional role at home In Nigeria, there are few studies on the actual contribution of the women-owned micro, small or medium enterprises (SMEs) to employment creation, income generation and wealth creation in rural areas, hence this study

13 Research Questions

The study addressed the following questions

(i) What are the characteristics of Female business owners in rural areas in Anambra State, Nigeria

(ii) Has the establishment of the female-owned enterprises alleviated poverty?

14 Objectives of the study

The broad objective of this study is to assess the role of small and medium businesses owned by women in reducing poverty in Awka south Local Government Area in Anambra state, Nigeria through job creation and income generation The specific objectives are to:

i Analyse the characteristics of female business owners in Anambra

ii Assess the extent to which the SMEs have reduced poverty among the female owners in Anambra

15 limitation of the Study

Some factors may limit the level of accuracy and reliability of this study Factors include:

i difficulty in obtaining data

ii Low response rate from individual parties

In the absence of the above mentioned limitations, all other errors and omissions are entirely those of the researcher

16 Statement of the Research Hypothesis

This study would be guided by the following hypothesis

Ho: Participation in SMEs by female does not improve the standard of living

Hi: participation in SMEs by female improves the standard of living

17 Definitions of Terms

i Entrepreneur :Someone who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what, how, and how much of a good or service will be produced

ii Entrepreneurship: this is the process of designing, launching and running a new business,ie a start-up company offering a product, process or service It has been defined as a capacity and the willingness to develop, organize and manage a business venture along with any of its risks in order to make profit

According to economist Joseph Alois Schumpeter (1883-1950), entrepreneurs are not necessarily motivated by profit but regard it as a standard for measuring achievement or success

iii Poverty: United Nations: Fundamentally, poverty is the inability of getting choices and opportunities, a violation of human dignity It means lack of basic capacity to participate effectively in society It means not having enough to feed and clothe a family, not having a school or clinic to go to, not having the land on which to grow one's food or a job to earn one's living, not having access to credit It means insecurity, powerlessness and exclusion of individuals, households and communities It means susceptibility to violence, and it often implies living in marginal or fragile environments, without access to clean water or sanitation

iv World Bank : Poverty is pronounced deprivation in well-being, and comprises many dimensions It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one's life

v Small and medium-sized enterprises: these are business whose personnel numbers fall below certain limits The abbreviation SMES is used in European Unions and by international organizations such as the World Bank, the United Nations and the World Trade Organization Small enterprises outnumber large companies by a wide margin and also employe many more people SMES are said to be responsible for driving innovation and competition in many economic sectors

Alleviation : Reduction of or freedom from suffering and pains