Challenges & Opportunities for Zambian Women Entrepreneurs

JOURNAL OF MANAGEMENT AND ADMINISTRATION

Challenges and Opportunities for Zambian Women Entrepreneurs 69

Challenges and Opportunities for Zambian Women Entrepreneurs

Gabriel Konayuma

Abstract

Very little has been written about women entrepreneurs in Zambia. Notable studies have

been those by Walker (1998:10) focusing on the changes and effects of the macro-economic

policy as it relates to indigenous female entrepreneurs in Zambia in the agricultural sector.

In another study, the International Labour Organisation (ILO) (2003:xv) sought to identify

ways in which the government, the ILO, donors, non-governmental organisations (NGOs),

and the private sector could improve the prospects for women's entrepreneurship in Zambia

and enhance the contribution of women entrepreneurs to the creation of meaningful and

sustainable employment opportunities and poverty reduction.

Women are active participants in the small and micro enterprises (SME) sector throughout

the world, especially those running informal enterprises. However, research has shown that

women entrepreneurs face particular socio-cultural, educational and technical constraints

to starting, and growing their own enterprises (International Labour Organisation, 2003:1)

This paper focuses on enhancing the business management of women entrepreneurs so that

they have equal opportunities as their male counterparts in contributing to the socio-

economic development of Zambia. The study also seeks to provide policy recommendations

for the further development of entrepreneurship in general and women�s entrepreneurship

in Zambia in particular. Currently there is lack of a strong policy framework that supports

the growth of an entrepreneurial culture among Zambians and growth of women�s

entrepreneurship development.

Significance of the Study

By examining the challenges and opportunities of women entrepreneurs in Zambia, the study

will:

1. Suggest solutions to various challenges faced by women entrepreneurs. This may lead

to improvements in the management practice particularly among women entrepreneurs

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in Zambia as it relates to entrepreneurship development;

2. Influence indirectly the nature of practices, industries and business support services that

are linked to entrepreneurship;

3. Propose guidelines to the policy framework for entrepreneurship as it affects women

entrepreneurs;

4. Add to the body of knowledge of entrepreneurship development in Zambia that can be

used by academicians, researchers, non-governmental organisations, private sector,

entrepreneurs and policy makers.

Aim of the Study

The aim of the study is to investigate the challenges and opportunities faced by women

entrepreneurs in Zambia and establish the effects on business management in general and

entrepreneurship development in particular.

Objective of the Study

The objective of this study is to:

Identify the strengths, weakness, opportunities and threats faced by women entrepreneurs in

Zambia;

Problem Statement

Women entrepreneurs are an emerging force in Zambia�s economy. However, they face a

number of challenges such as inadequate access to start-up capital in form of loans, inadequate

policies supportive of women�s entrepreneurship development and cultural norms that are not

supportive of women entrepreneurs. These challenges impede the full potential of women

entrepreneurs in their businesses. While some efforts have been made by policy makers,

women�s associations, non-governmental organisations and other stakeholders to address this

concern, there is still a lot that needs to be done to ensure that women entrepreneurs contribute

fully to the national economy. In addition women entrepreneurs have a number of opportunities

which they are not fully taking advantage of such as women associations, conferences and



international markets. The purpose of this study is to investigate the challenges and

opportunities faced by Zambian women entrepreneurs in order to ensure that they manage their

enterprises better to result in improved and competitive enterprises.

Literature Review

Benefits of Entrepreneurship

Entrepreneurship has a lot of benefits. These benefits can be broken down at national, societal

and individual levels. The figure below shows these benefits. In Zambia, entrepreneurship has

proved to be beneficial to individuals, society and the nation. For example, Euro Africa Coach

Services which runs bus services between Lusaka and the Copperbelt provinces, has created

job opportunities for some Zambians and created a competitive environment in the transport

sector due to their efficient services. Society has benefited because traders from the Copperbelt

can travel to Lusaka, buy their goods and return to the Copperbelt on the same day.

Entrepreneurship Development in Zambia

Entrepreneurship in Zambia has arisen due to a number of factors. Some have started

enterprises due to retrenchments as a consequence of privatisation of parastatal firms between

1992 and 1999. Others have become entrepreneurs to supplement their incomes in order to

meet family budget needs. A number of government ministries have policies that support

entrepreneurship development. These include the Technical Education, Vocational and

Entrepreneurship Training Policy, the Youth Policy, the Commercial, Trade and Industrial

Policy and the Labour and Social Security Policy.

Before 1991, small-scale business owners were actively discouraged due to socialist economic

management with the government playing a leading role in stimulating economic activities.

However, a sharp decline in the copper price, Zambia�s most important export product between

1973 and 1975 coupled with a rise in oil prices and other imports led to a more active

encouragement of small-scale entrepreneurs.

Some of the challenges that entrepreneurship development has had in Zambia include:

entrepreneurs lacking managerial skills, low levels of consumer demand, competition from low

entry barriers given to foreign investors and lack of capital (Frese, 2000:32-33).

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Kombe (2000:62�67) identifies culture, education, mistrust, dishonesty, resources, bank

lending policies, technological capabilities, lack of protectionist policies as some of the barriers

that affect entrepreneurship development in Zambia.

It can be noted that entrepreneurship development has not been easy. However some

entrepreneurs both female and male have weathered the storm and become successful by

adopting sound business practices and having a resolute desire to succeed.

Women Entrepreneurs

Women�s entrepreneurship needs to be studied for two main reasons. The first reason is that

women�s entrepreneurship has been recognised during the last decade as an important untapped

source of economic growth. Secondly, the topic of women entrepreneurship has been largely

neglected both in society in general and in the social sciences (Organisation for Economic Co-

operation and Development, 2004:5). There is need to review existing literature as it relates to

the challenges and opportunities faced by women entrepreneurs in the global scene, Africa and

Zambia.

Nieman et al. (2006:34) estimates that between 80 percent of the workforce of developing

nations are in the informal sector. Street vendors constitute a significant share of this

workforce. In Africa, especially, women represent the majority of these vendors because they

often lack the necessary technical skills to do much else in the informal sector. Women

entrepreneurs seem to be the most disadvantaged group. Until recently a woman could not

pursue a business activity without taking her husband or a male family member along.

In Zambia, a number of entrepreneurs are in the informal sector. Females are in the majority as

informal sector operators. The table below shows the distribution.

Table 1 Proportion of Persons Aged 12 years and Above Who Were Employed in the Informal Sector by Sex, Rural/Urban, Stratum and Province, Zambia, 2002-2003 Source: (Central Statistical Office, 2004:66) Residence/Stratum/Province Both sexes Male Female Total number of employed

persons All Zambia Rural Urban

83 93 56

76 89 47

91 96 71

3,517,371 2,571,153 946,218



Types of women entrepreneurs

Women entrepreneurs may be grouped in four broad types. These are: traditional, innovative,

domestic and radical.

Traditional women business owners are highly committed to entrepreneurial ideas, as well as

to conventional gender roles.

Innovative women business owners are highly committed to entrepreneurial ideas but not to

traditional gender roles.

Domestic women business owners are not committed to entrepreneurial ideas but have a high

attachment to entrepreneurial ideas or to traditional gender roles.

Radical women business owners have little commitment to entrepreneurial ideas or to

traditional gender roles; these women cannot be seen as entrepreneurial venture seekers. They

are usually young, without children and well educated, but have limited work experience

(Nieman et al., 2006:35).

In Zambia, women entrepreneurs are mainly in the categories of traditional and innovative. For

the traditional category, women entrepreneurs have started businesses because of economic

hardships at home. This contributes to the push factor in the economy. In Lusaka and

Copperbelt provinces, a number of women have started enterprises to earn income due to

retrenchments of their spouses. The innovative women entrepreneurs are motivated by limited

career progression in large firms. They are ambitious and place a high priority on their

businesses.

There are various motivations for becoming an entrepreneur. There are basically push and pull

factors. Push factors are factors that are there due to necessity. Examples are unemployment,

insecurity, disagreement with management and lack of alternatives. Pull factors are opportunity

driven. One may have a desire for personal development, independence, achievement,

recognition and personal wealth.

Female entrepreneurs differ from male entrepreneurs in terms of motivation, business skills,

and occupational backgrounds (Hisrich et al., 2005:69). A comparison of female and male

entrepreneurs is listed in the table below. A significantly large number of women operate as

portfolio entrepreneurs, preferring to grow more than one enterprise rather than expanding an

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existing one. In Lusaka, Zambia there is a lodge owner (female entrepreneur) running a plant

nursery business along her main business line. Another female entrepreneur runs a hair saloon

and also undertakes media consultancies. Women entrepreneurs often have a clearly articulated

business logic and marketing strategy underpinning their multiple enterprise strategies. In

developing countries, more research has been carried out on women in the informal economy,

and to date little is known about women in growth-oriented enterprises (Finnegan, 2003:2-3).

This illustrates the need for a study on women operating formal enterprises and why women

prefer a diversified approach to running enterprises. It is worth investigating why many women

entrepreneurs operate their �multiple� enterprises in feminised sectors (Finnegan, 2003:4).

Challenges Faced By Women Entrepreneurs in Zambia

An ILO study on Zambian women entrepreneurs identified the following challenges faced by

women entrepreneurs: lack of access to start-up capital, lack of business training/skills and

experience, bureaucratic business registration systems and negative attitudes by society

towards women in business (International Labour Organisation, 2003:xvii). As this study was

conducted in 2002, it is necessary to investigate whether these challenges still exist, or whether

they have been minimised or they have become worse. The ILO study was

conducted at a time Zambia was formulating and implementing a Transitional Development

Plan.

The ILO study among many findings found that �76 per cent of women involved in enterprise

are in the age category of 20-40. This places heavy reproductive and child care

responsibilities on them. These responsibilities are often in competition and conflict with the

demands of the women�s businesses. It was also discovered that the majority (77 per cent) of

the women in enterprise in Zambia have high education levels ranging from �O� Level to

university education �which represents a significant improvement in comparison with women

in the informal sector� (Chisala, 2002:1). From this finding it can be noted that the age group

of women are those in the critical stage of their lives where they are setting goals and

planning for later life (after becoming 40 years). They are vibrant and can learn a lot of new

skills, yet the demands on their time as parents and spouses places a lot of demands on their

businesses. They require training in management with emphasis on time management, stress

management, change management and project management. This training can be done after

conducting a training needs analysis. It�s advisable to use entrepreneurs that have undergone



the experiences of this age group would help in ensuring that the training received is very

practical.

Masebo (2006:1) has noted that disabilities and the HIV/AIDS pandemic deprive women of an

opportunity to contribute towards national economic development. Those living with

HIV/AIDS are hindered from growing their businesses. HIV/AIDS impacts business

performance as the business owner may need to take time off thus reducing on business

profitability and supervision of the business. Employees also in the business may also fall ill

due to HIV/AIDS and other illnesses. This will have a negative impact on the business when

the employee(s) are on medical leave. Should the business owner relieve them of their duties

and employ someone else? Would it be ethical for the business owner to demand HIV/AIDS

tests for new employees? What about the issue of providing a medical scheme for all

employees that would include providing free ARVs for employees that have HIV/AIDS.? What

does business ethics suggest? Job discrimination on health grounds is an ethical issue.

Velasquez (2004:390) states that �a helpful framework for analysing different forms of

discrimination can be constructed by distinguishing the extent to which a discriminatory act is

intentional and isolated (or non-instutionalised) and the extent to which it is unintentional and

institutionalised�. Discrimination in any form is undesirable. Employees should not be

discriminated against because they are unwell.

Opportunities for Women Entrepreneurs in Zambia

In Zambia, women face the following opportunities: agriculture, mining, tourism and

education. For tourism there is a Visit Zambia 2006 Campaign. This campaign seeks to:

Brand Zambia as home of the Victoria Falls,

Increase international tourists arrivals by 20 per cent per annum during the period of the

campaign with additional 400, 000 tourists by 2010.

Stimulate domestic tourism visitor levels to at least 50% of international arrivals by the

year 2010 (Lumpa, 2005:4).

The Visit Zambia campaign provides opportunities for tour operators and those that provide

goods and support services. More specifically tourism sub sectors where investments are

required include: accommodation, restaurants, tourism transport, adventure activities,

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meetings, conferences, wildfire tourism, museums, sports tourism, crafts and cultural/ethno

tourism and tourism entertainment (Tourism News, 2005:14). This Visit Zambia campaign is

an opportunity for women entrepreneurs to position their enterprises so that they fully exploit

such businesses. In addition there is a Tourism Credit Fund that is used to support those

engaged in tourism to improve their businesses.

The �Buy Zambian campaign� also presents opportunities for women entrepreneurs to improve

their product offerings and services. The campaign seeks to encourage Zambians to buy

Zambian products and services. The Commercial, Trade and Industrial policy has an objective

of promoting the consumption of locally produced goods and services in order to increase

domestic demand for Zambian goods and services. The policy prescriptions for this policy

objective are �encouraging the branding of locally produced goods and services and

maintaining support for the Buy Zambia Campaign, in order to ensure that locally

manufactured goods and services compete favourably in the domestic market, while becoming

competitive on the international markets� (Ministry of Commerce, Trade and Industry,

2005:33). Women entrepreneurs can take advantage of this campaign by producing quality and

affordable products that can compete favourably with imported products. They must correctly

identify their target market and make product offerings with the right price. This needs to be

supported by well designed promotions and having the right environment (place) for the

product or service offerings.

The Citizens Economic Empowerment is another opportunity available to entrepreneurs. The

objectives of this reform programme is to unlock the growth potential of citizens through

business development support and empowerment initiatives (Ministry of Commerce, Trade and

Industry, 2005:38). This programme can be taken advantage of by women entrepreneurs to

ensure that they benefit from the funds available for entrepreneurs to develop their businesses.

Other opportunities are in services, agriculture, mining, energy, manufacturing and

construction. Service opportunities range from business services (advertising, market research,

printing and publishing, consultancy, etc) communication (telecommunications, courier

services) educational services (education and training), health services, transport (air, road,

customs and freight forwarding), construction and engineering services, financial services

(insurance, banking, asset management), recreational, entertainment and sporting services,



energy (generation and transmission of electricity; supply of fuels and lubricants), agriculture,

manufacturing and mining (technical services and management consultancy).

Mining offers many opportunities to women entrepreneurs. There are some support

organisations for women entrepreneurs in mining. Examples are Women in Mining. In mining

a deliberate program needs to be put in place to train Zambian entrepreneurs to appreciate the

different minerals that can be used in various industries. Zambian businesses must be

developed with skills to mine, cut and polish in the case of marble and granite, and process

these minerals to the quality that meets export standards thereby opening an opportunity to earn

foreign exchange in addition to servicing the domestic market (Zambia Investment Centre,

2006:1).

Women entrepreneurs can benefit from providing services domestically and internationally.

The Times of Zambia (2006:1) observes that �Services account for at least 50 per cent of Gross

Domestic Product in most developing countries. The growth of the service sector, especially

through export promotion, can thus have a significant impact on economic growth,

employment creation and poverty alleviation, thereby contributing to the achievement of the

Millennium Development Goals. As the service sector employs more women than any other

sector, women entrepreneurs are likely to benefit from employment creation in the service

sector�.

Women entrepreneurs need to possess skills of opportunity evaluation in order to make the

most of the opportunities above. Nieman et al. (2006:77-78) propose the following criteria in

screening opportunities: �industry and market issues, economics, harvest issues, management

team, fatal flaw issues, personal criteria and strategic differentiation�. Strategic differentiation

refers to how a venture positions itself to take advantage of the given market conditions to its

benefit, while at the same time differing from the competitors in terms of the value added to

consumers (Nieman et al, 2006:80). For women entrepreneurs to practice good opportunity

evaluation skills they need to have a good educational background, networking and good

mentors. In short they need to overcome the challenges identified above.

It needs to be noted that if these opportunities are not seized at the right time, they may be

missed for ever. Currently, the local currency in Zambia has appreciated against major trading

international currencies. This is both a challenge and opportunity. For exporters it is a

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challenge, because it means the foreign exchange sales earn them less local currency. For

importers it is an opportunity as they need less local currency to import items.

It is important for women entrepreneurs to be armed with skills at identifying the right

opportunities at the right time. They are a lot of opportunities available to women. The danger

lies in women entrepreneurs going for the same or similar opportunities while other profitable

opportunities go begging. Banda (2004:2) advises that: �Women entrepreneurship development

programmes must cover all aspects not only for establishment and running of enterprises, but

also for development of their entrepreneurial and managerial competencies�.

Women entrepreneurs can also take advantage of organisations such as Women Entrepreneurs

Development Association of Zambia (WEDAZ), Zambia Federation of Association of Women

in Business (ZAFWIB), Small Enterprises Development Board (SEDB), Women Finance Co-

operative of Zambia and Lusaka District Business Association. SEDB formulates coordinates

and implements policies and programs for promoting and developing micro and small

enterprises. It also develops provides marketing support services to micro and small enterprises

and develops entrepreneurship in Zambia (Ministry of Commerce, Trade and Industry, 2006:1).

Women Finance Co-operative of Zambia economically empowers all micro and small-scale

women entrepreneurs in Zambia through provision of financial services, training, advocacy and

networking.

Methodology

This study largely uses the inductive approach with the deductive approach also used to collect

and analyse data. The inductive approach has been selected in preference to the deductive

approach where it is difficult to define the control groups. Within the inductive approach a

questionnaire is used as it is most suitable for this type of study.

Target Population

The target population in the research is made up of all potential participants that form the group

to be studied. In this study the target population is the women entrepreneurs with registered

business in the Lusaka Province of Zambia. A total of 38 out of 40 women entrepreneurs

included in the sample responded to the questionnaire. This represents a response rate of 95



percent. Three out of the 40, were not included in the data analysis. Of the three, two of them

were for enterprises that were not registered and one was not included as it was incomplete.

Two questionnaires were not completed by the respondents. This left the complete

questionnaires to 35 (i.e. 70 percent of the sample). For organisations a total of 9 out of 10

included in the sample responded to the questionnaire. This represents 90 percent of the

sample.

Sampling

Sampling is the process of selecting a fractional part of the whole relevant group or population.

Sampling is of two broad types � probability and non-probability. With probability sampling,

the likelihood of any one member or element of the population being selected is known. If

there are a hundred guest houses and twenty hotels, the odds of selecting one hotel as part of

the sample is 20:100 or 1/5. In non-probability sampling, the exact numbers of elements in the

population are unknown with the result that the likelihood of selecting any one member of the

population is not known (Mancosa, 2003:74-76). Coldwell and Herbst (2004:79) state that the

advantage of the probability sample is that, given that the sampling frame is complete and the

samples are adequate, it is unbiased and representative of the population. For non-probability

sampling, it is not possible to assess whether the sample is representative of the specific

population or not.

This research will use probability sampling as the exact number of elements in the population

is known.

The Research Instrument

A research instrument is used to collect data. The two most commonly used primary data

collection methods are the questionnaire and the interview. These data collection instruments

enable the researcher to collect answers for their research questions from their subjects.

The questionnaire used in this study is the Likert-style rating scale. The scale seeks to measure

how strongly respondents feel on the challenges and opportunities faced by women

entrepreneurs. The questionnaires utilises both positive and negative statements to ensure that

respondents read each statement carefully before circling their response. This type of

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questionnaire was chosen to enable respondents make quick choices and also because it is

simpler to code and analyse. Closed questions or statements have been used to avoid

differences in interpretation.

The Questionnaire Items

Questionnaire items are made up from a question and scale. The question may be in question or

statement form. The scale is used to capture the respondent�s opinion/response to the question.

The questionnaire used has a 5-point scale with the anchors: strongly disagree, disagree,

uncertain, agree, and strongly agree. The questionnaire uses a Likert scale that �measures on a

continuum how strongly a respondent agrees or disagrees on n item/phrase�

(Hendricks, 2003:2).

Pilot Study

A pilot study was done on 10% of the sample size. This size is considered adequate

information on the validity and reliability of the questionnaire. No adjustments were deemed

necessary on the original questionnaire.

Data Analysis

Data analysis will be done on the collected data. The purpose of analysis is to give some

meaning from the collected raw data. The data is analysed using SPSS (statistical analysis

software) for both data entry and editing. The questionnaires from the field work are

consequently edited, coded and then entered on to the computer. As data is entered it is

checked for inconsistencies and errors. Thereafter it is converted to a spreadsheet package

(Microsoft Excel) for labelling and further cleaning.

Presentation of Findings

The study focuses on the challenges and opportunities of Zambian women entrepreneurs.

Consequently, the questionnaire was designed to obtain the views of women entrepreneurs,

policy makers and women business associations. The questionnaire was meant to help women

entrepreneurs reflect on their strengths, weaknesses, opportunities and threats.



Presentation of Research Findings

The presentation of findings focuses on analysis of the interview question:

What opportunities and threats do women entrepreneurs face?

Additional questions/statements were used to obtain data from the respondents. These

questions are:

(i) Women Entrepreneurship plays a key role in a nation�s development.

(ii) You went into business because you were unemployed.

(iii) You went into business because you were dissatisfied with your job.

(iv) You went into business because you had a desire for personal development.

(v) HIV/AIDS poses a real threat to the business growth of women entrepreneurs.

(vi) Associations such as Women Entrepreneurs Development Association of Zambia

(WEDAZ) offer business opportunities and support.

(vii) Associations such as Zambia Federation of Associations of Women In Business

(ZAFWIB) offer business opportunities and support.

(i) Women Entrepreneurship plays a key role in a nation�s development.

Figure 1 Role of Entrepreneurship to Development

Respondent's Response

Strongly agreeAgreeStrongly disagree

Num

ber

of R

espo

nden

ts

30

28

26

24

22

20

18

16

14

12

10

8

6

4

20

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From figure 1 it can be seen that 94 percent of the respondents strongly agreed or agreed that

women entrepreneurship plays a key role in a nation�s economic development. A total of 6

percent of the respondents strongly disagreed with the statement.

Hypothesis Testing

Table Cross-tabulation chi-square test on the role of women entrepreneurship in national development and desire for personal development.

Value Df Asymp. Sig.

(2-sided) Pearson Chi-Square 10.08 4 0.039 Likelihood Ratio 7.665 4 0.105 Linear-by-Linear Association 3.266 1 0.071 N of Valid Cases 35

The researcher formulated a hypothesis that the role women entrepreneurship plays in national

economic development had no relationship with women entrepreneurs going into business

because of a desire for personal development. From the computations in Table 2 for the null

hypothesis test, the computed test is 0.039, the null hypothesis is rejected and conclude that the

role women entrepreneurship plays in national economic development has a relationship with

women entrepreneurs going into business because of desire for personal development.

Table 3 Cross-tabulation chi-square test for role of women entrepreneurship in economic development and job dissatisfaction.

Value df Asymp. Sig.




because of job dissatisfaction. From the computations in Table 3 for the null hypothesis test,

the computed test is 0.003, the null hypothesis is rejected and conclude that the role women

entrepreneurship plays in national economic development has a relationship with women

entrepreneurs going into business because of job dissatisfaction.



Table 4 Cross-tabulation chi-square test for the role of women entrepreneurship in economic development and the business support and opportunities offered by women business associations.





because of job dissatisfaction. From the computations in Table 4 for the null hypothesis test,

the computed test is 0.047, the null hypothesis is rejected and conclude that the role women

entrepreneurship plays in national economic development has a relationship with women

entrepreneurs going into business because of job dissatisfaction.

Table 5 Cross-tabulation chi-square test of the role of women entrepreneurship to economic

development and the usefulness of the Gender Policy

Value df Asymp. Sig. (2-

sided) Pearson Chi-Square 19.227 8 0.014 Likelihood Ratio 14.208 8 0.076 Linear-by-Linear Association 2.9438 1 0.086 N of Valid Cases 35


economic development had no relationship with the usefulness of the national Gender Policy in

ensuring that women entrepreneurs have equal opportunities as their male counterparts in

business. From the computations in Table 5 for the null hypothesis test, the computed test is

0.014, the null hypothesis is rejected and conclude that the role women entrepreneurship plays

in national economic development has a relationship with the usefulness of the national Gender

Policy in ensuring that women entrepreneurs have equal opportunities as their male

counterparts in business.

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(ii) You went into business because you were unemployed.

Figure 2 Unemployment as a reason for going into business

Unemployment and entrepreneurship

Strongly agreeAgreeDisagreeStrongly disagree

Nu

mb

er

of R

esp

on

de

ts

16

14

12

10

8

6

4

2

0

Figure 2 shows that 29 percent of the respondents strongly agreed or agreed that women

entrepreneurs went into business because they were unemployed. A total of 71 percent of the

respondents disagreed or strongly disagreed with the statement.

Hypothesis Testing

Table 6 Cross-tabulation chi-square test of unemployment as a reason for starting business and challenge of information in business.

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 13.889 6 0.031 Likelihood Ratio 14.256 6 0.027 Linear-by-Linear Association 2.7828 1 0.095 N of Valid Cases 35

The researcher formulated a hypothesis that the unemployment as a reason for women

entrepreneurs going into business had no relationship with the challenge of information in

business. From the computations in Table 6 for the null hypothesis test, the computed test is

0.031, the null hypothesis is rejected and conclude that unemployment as a reason for women

entrepreneurs going into business has a relationship with the challenge of information in

business.



(iii) You went into business because you were dissatisfied with your job.

Figure 3 Job dissatisfaction as a reason for starting business


Strongly agree

Agree

Uncertain

Disagree

Strongly disagree

Num

ber

of R

espo

nden

ts

14

12

10

8

6

4

2

0

From figure 3 it can be seen that 48.5 percent of the respondents agreed and strongly agreed

that women entrepreneurs go into business because they are dissatisfied with their jobs. A total

of 48.5 percent disagreed and strongly disagreed with the statement while 3 percent were

uncertain.

Hypothesis testing

Table 7 Cross-tabulation chi-square test of unemployment as a reason for starting business and challenge of information in business

Value Df Asymp. Sig.


The researcher formulated a hypothesis that the job dissatisfaction as a reason for women

entrepreneurs going into business had no relationship with personal development as a reason

for women entrepreneurs going into business. From the computations in Table 7 for the null

hypothesis test, the computed test is 0.05, the null hypothesis is rejected and conclude that job

dissatisfaction as a reason for women entrepreneurs going into business has a relationship with

personal development.

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Figure 4 Personal development as a reason for starting business


Strongly agreeAgreeStrongly disagree

Num

ber

of R

espo

nden

ts

30

28

26

24

22

20

18

16

14

12

10

8

6

4

20

Figure 4 shows that 91 percent of the respondents agree and strongly agree that women

entrepreneurs go into business because they have a desire for personal growth. A total of 9

percent strongly disagree with the statement.

Hypothesis Testing

Table 8 Cross-tabulation chi-square test personal development as a reason for going into business and available business support.



The researcher formulated a hypothesis that the desire for personal development as a reason for

women entrepreneurs going into business had no relationship with available business support

for women entrepreneurs. From the computations in Table 8 for the null hypothesis test, the

computed test is 0.03, the null hypothesis is rejected and conclude that the desire for personal

development as a reason for women entrepreneurs going into business has a relationship with

available business support for women entrepreneurs.



(v) HIV/AIDS poses a real threat to the business growth of women entrepreneurs.

Figure 5 Threat of AIDS to business


Strongly agree

Agree

Uncertain

Disagree

Strongly disagree

Num

ber

of R

espo

nden

ts

20

18

16

14

12

10

8

6

4

2

0

From figure 5 it can be seen that 91 percent of the respondents agreed or strongly agreed that

HIV/AIDS was a real threat to the business growth of women entrepreneurs. A total of 6

percent disagreed or strongly disagreed with the statement while 3 percent were uncertain.

(vi) Associations such as Women Entrepreneurs Development Association of

Zambia (WEDAZ) offer business opportunities and support.

Figure 6 Association business support (WEDAZ)

Respondents Respnse

Strongly agree

Agree

Uncertain

Disagree

Strongly disagree

Num

ber

of R

espo

nden

ts

20

18

16

14

12

10

8

6

4

2

0

Figure 6 shows that 60 percent of the respondents agreed or strongly agreed that Women

Entrepreneurs Development Association of Zambia (WEDAZ) offered business opportunities

and support to women entrepreneurs. 14 percent disagreed or strongly disagreed with the

statement while 26 percent were uncertain.

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Hypothesis Testing

Table 9 Cross-tabulation chi-square test of personal development and association business support.



The researcher formulated a hypothesis that the desire for personal development as a reason for

women entrepreneurs going into business had no relationship with business support for women

entrepreneurs from business associations. From the computations in Table 9 for the null

hypothesis test, the computed test is 0.02, the null hypothesis is rejected and conclude that the

desire for personal development as a reason for women entrepreneurs going into business has a

relationship with available business support for women entrepreneurs.

(i) Associations such as Zambia Federation for Associations of Women In Business (ZAFWIB) offer business opportunities and support.

Figure 7 Association business support (ZFAWIB)

Respondents Response

Strongly agreeAgreeUncertainDisagree

Num

ber

of R

espo

nden

ts

20

18

16

14

12

10

8

6

4

2

0

Figure 7 shows that 60 percent of the respondents agree or strongly agree that Zambia

Association of Federation of Women in Business offers business opportunities and support to

women entrepreneurs. A total of 6 percent disagreed with the statement while 34 percent are

undecided.



Hypothesis Testing

Table 10 Cross-tabulation chi-square test for association business support and gender policy support.



The researcher formulated a hypothesis that gender policy support for women entrepreneurs

had no relationship with business support for women entrepreneurs from business associations.

From the computations in Table 10 for the null hypothesis test, the computed test is 0.03, the

null hypothesis is rejected and conclude that gender policy support for women entrepreneurs

has a relationship with available business support for women entrepreneurs.

Discussion of Findings

The discussion of findings focuses on the interview question:

What opportunities and threats do women entrepreneurs face?

(i) Women Entrepreneurship plays a key role in a nation�s development

Most respondents (94 percent) agreed or strongly agreed that women entrepreneurship plays a

key role in a nation�s development. This view could be attributed to women realising that

entrepreneurship is a means to wealth creation that promotes national development. Women

become entrepreneurs due to a desire for personal development and being dissatisfied with

their current jobs. In the literature review it was noted that entrepreneurship initiates change in

the structure of business and society leading to growth that allows more wealth to be divided

by the various participants (Hisrich et al., 2005:69). The role of women entrepreneurs in

national development needs to be taken very seriously by developing nations. This view is

supported by Annan (2003:1) who states that �there is no effective development strategy in

which women do not play a central role�.

Those that strongly disagreed (6 percent) could have done so as they felt that their enterprises

are not really performing well. Others could have felt that their enterprises are just pastimes

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and could not really contribute to national development. It is also possible that some

respondents could not have fully understood the importance of the role that their enterprises

played in national development.

(ii) You went into business because you are unemployed

Only 29 percent strongly agreed or agreed that women entrepreneurs went into business

because they are unemployed. Some of those in this category had been retrenched after

downsizing of some companies after privatision of firms in Zambia that started in 1992.

A total of 71 percent disagreed or strongly disagreed that women entrepreneurs went into

business because they are unemployed. This implies that some women are involved in

entrepreneurial ventures to supplement income in their jobs. Thus most of the respondents

interviewed can be categorised as being entrepreneurs due to pull factors i.e. a desire for

personal development, independence and personal wealth. Some of the entrepreneurs

interviewed indicated that they needed to be sure of the viability of their businesses before they

could leave their jobs to concentrate on their businesses.

(iii) You went into business because you are dissatisfied with your job.

An equal number of respondents (48.5 percent) both agreed/strongly agreed and

disagreed/strongly disagreed that they went into business because they are dissatisfied with

their jobs. Considering those that disagreed or strongly disagreed, it can be noted job

dissatisfaction does not always lead to women becoming entrepreneurs. Some may choose to

remain in their jobs despite being dissatisfied due to few jobs in the market and a guaranteed

source of income. Those that are uncertain (3 percent) could be unclear on how to assess

whether they are dissatisfied with their jobs.

For those that agreed or strongly agreed with the statement it implies that job dissatisfaction is

a big factor that leads to women starting enterprises. In this case the motivation for becoming

an entrepreneur is a push factor.


Most respondents (91 percent) agreed or strongly agreed that they went into business because

they had a desire for personal development. This indicates that women entrepreneurs are driven

by opportunity (pull factors) to become entrepreneurs. Personal development is enhanced in an



environment where there is adequate business support for women entrepreneurs. Those that

disagreed or strongly disagreed (9 percent) could have other motivating factors such as job-

dissatisfaction, unemployment, family business etc.

(v) HIVA/IDS poses a real threat to the business growth of women entrepreneurs.

Most respondents (91 percent) agreed or strongly agreed that HIV/AIDS was a real threat to

the business growth of women entrepreneurs. This can be explained by the high infection rates

in Zambia and the working hours lost by employees who have to seek medical attention and get

some rest. This finding agrees with the literature review where it was noted that the HIV/AIDS

pandemic deprived women of the opportunity to contribute towards national economic

development (Masebo, 2006:1). In addition, persons with HIV/AIDS have lower immunity

thus other diseases such as opportunistic diseases such as tuberculosis take advantage leading

to long periods of illness.

Respondents who disagreed or strongly disagreed could have felt that HIV/AIDS was not a real

challenge as it was like any other disease except that people stigmatise those that have it. They

may also not have had any significant experiences with HIV/AIDS in their enterprises.

The respondents that are uncertain (3 percent) could have not been clear on the impact of

HIV/AIDS on their enterprises due to lack of information.

(vi) Associations such as Women Entrepreneurs Development Association of Zambia

(WEDAZ) and Zambia Federation for Associations of Women In Business (ZFAWIB)

offer business opportunities and support.

A good number (60 percent) of the respondents agreed or strongly agreed that WEDAZ and

ZFAWIB, a women�s business association offered business opportunities and support. In the

literature review it was noted that women associations such as AABWA and African

Association of Women Entrepreneurs offer opportunities for training and marketing of goods.

The ILO study found that a number of women had received non-financial support services

(business training, counselling, participating at exhibitions) and are active members of

associations (ILO, 2003:55). However, there was still scope to increase the awareness of and

greater interaction of the women entrepreneurs with business development support providers in

Zambia as that study found. This finding is supported by the high numbers who disagreed or

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92

strongly disagreed and are uncertain (40 percent) of the business support offered by both

WEDAZ and ZFAWIB. There is need to ensure that this high number is reduced by putting in

place measures by the associations that will market their services and increase their levels of

business support.

Conclusions

Women entrepreneurs are faced with a number of challenges and opportunities. The challenges

impede the growth of the women enterprises. The major challenges as seen in the study include

access to finances, access to information, lack of business training/skills and experience, and

negative attitudes towards women in business. Some women have not taken full advantage of

the opportunities that are available to them. Some of the opportunities include tourism and

agriculture businesses.

Below are conclusions arising from the research study.

Strengths and Weaknesses of Women Entrepreneurs

The study found that women entrepreneurs face challenges in accessing finances, information

and competition from well-established male dominated businesses. Other challenges included

family commitments, inadequate business support services and recruiting and managing human

resources. The study has shown that women entrepreneurs are impacted negatively by these

challenges. These challenges have been faced by the women entrepreneurs for some time as

shown in the literature review has shown. Business support services, women business

associations and organisations need to put in place better measures to effectively address these

challenges so as to improve the performance of women enterprises.

Opportunities and Threats faced by Women Entrepreneurs

The study found that women entrepreneurs had opportunities in starting enterprises due to job

dissatisfaction and a desire for personal development. In addition it was found that the majority

of respondents thought that business associations such as WEDAZ and ZAFWIB offer

business opportunities and support. HIV/AIDS was found to be a real threat to the business

growth of women entrepreneurs. Women entrepreneurs need business support such as finances



and training to take advantage of the available opportunities. This also applies to the threats

faced by the women entrepreneurs.

Recommendations

Based on the research findings above, the following recommendations are made:

Access to Finances

Finances play a critical role in the development of women enterprises. Therefore, the

government, civil society and business support providers need to put some measures in place to

ensure that women entrepreneurs have better access to finances. For government it is

recommended that a Women�s Entrepreneurship Development Fund be put in place. This will

ensure women have adequate access to finances to develop their businesses. In addition, the

Ministry of Gender in Development needs to set up a Women�s Desk that has detailed

information on finances and other business details. Other policy strategies should include:

Encouraging banks and other money-lending institutions to have favourable lending

terms such as not demanding for too much collateral and giving low-interest loans for

women and other disadvantaged groups.

Creation of women only banks to cater for women entrepreneurs in Zambia.

Tax incentives to categories of women enterprises.

Women business associations should have detailed information on services available

from lending associations. This should include training in presenting funding proposals

and business plans.

Access to Information

Women business associations need to create a comprehensive database of women

entrepreneurs, business support providers, government ministries dealing with women

entrepreneurs and business opportunities. The media needs to devote more space to addressing

issues about women entrepreneurs and providing information useful to them. The Ministry of

Commerce, Trade and Industry in liaison with stakeholder ministries needs to package relevant

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94

information on women entrepreneurs. The information should include details on business

support services, policies, legislation, technologies and profiles of women entrepreneurs.

Business Support Development

Business support providers need to:

Develop training programmes in business management skills such as marketing,

finances, human resource management, operations management and knowledge of

business performance, etc.

Facilitate better and improved networking amongst women entrepreneurs to ensure

information sharing on business related matters. In addition role models among

successful women entrepreneurs need to be used as signposts for women entrepreneurs.

Develop targeted training and support for different groups of women entrepreneurs e.g.

widows, retrenches, new entrepreneurs etc.

Facilitate business incubation and mentoring of new entrepreneurs.

HIV/AIDS

The HIV/AIDS pandemic continues to be a major threat to the development of women

enterprises in Zambia. Business support providers, business associations, and the government

need to continue providing information and programmes that will mitigate the impact of the

problems caused by the pandemic. This should include assistance in developing HIV/AIDS

policies for the workplace, provision of anti-retroviral drugs and other AIDS therapeutic drugs.

Bibliography

Annan, K. (2003) Investment in African Women Entrepreneurs Leverages Economic Growth [online]. London: Commission for Africa. Available from: http: //www.commissionforafrica.org/english/consultation/bob_geldofs_seminars/unitedstates/alice_m_dear.pdf [Accessed 10 July 2006]. Chipungu, S. N. (ed.) (1992) Guardians in their Time. London: Macmillan Press Limited. Chisala, C. (2002) �New era dawns for Zambia women entrepreneurs?� Times of Zambia, Ndola, Monday, 16 December 2002, p. 1. Coldwell, D. and Herbst, F. (2004) Business Research. Cape Town: Juta and Co. Ltd.



Finnegan, G. (2003) Facilitating Women�s Entrepreneurship: Lessons form the ILO�s research and support programmes. Geneva: International Labour Organisation. Frese, M. (ed.) (2000) Success and Failure of Microbusiness Owners in Africa: A Psychological Approach. Westport: Quorum Books. Gundry, L. K., Ben-Yoseph, M. and Posig, M. (2002) �Contemporary Perspectives on Women�s Entrepreneurship: A Review and Strategic Recommendations�, Journal of Enterprising Culture, 10(1), March, 67-85. Hisrich, R. D., Peters, M. P. and Shepherd, D. A. (2005) Entrepreneurship. 6th Edition. New York: McGraw-Hill. Kombe, A. M. (2000) Entrepreneurship Development in Zambia: An Evaluation of Barriers Affecting Entrepreneurship Development in the Informal Sector. Unpublished MBA dissertation. Lincolnshire: University of Lincolnshire and Humberside.

Lumpa, C. (2006) �Speech at Launch of the Visit Zambia 2006 Campaign�, Tourism News, No. 21. April 2006. Lusaka: Chopiva Enterprises. Masebo, S. (2006) �HIV/AIDS derails women�s business progress�, Times of Zambia, 2 February 2006. Available from: http://www.times.co.zm/news/viewnews.cgi? category=allandid=1128023526 [Accessed on 19 May 2006]. Ministry of Commerce, Trade and Industry (2005) Commercial, Trade and Industrial Policy. Lusaka: Ministry of Commerce, Trade and Industry. Ministry of Commerce, Trade and Industry (2006) Small Enterprises Development Board [online]. Lusaka: Ministry of Commerce, Trade and Industry. Available from: http://www.mcti.gov.zm [Accessed on 17 May 2006]. Ministry of Science, Technology and Vocational Training (1998) Technical Education, Vocational and Entrepreneurship Training Policy. Lusaka: Ministry of Science, Technology and Vocational Training. Nieman, G., Hough, J. and Nieuwenhuizen, C. (eds.) (2006) Entrepreneurship: A South African Perspective. Pretoria: Van Schaik Publishers. Robb, A. M. (2002) Entrepreneurial Performance by Women Minorities: The Case of New Firms. Journal of Developmental Entrepreneurship, 7(4), December, pp. 383-397.

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http://www.zic.org.zm



INSTRUCTIONS: Please tick the appropriate box to indicate whether you: 1. Strongly disagree 2. Disagree 3. Uncertain 4. Agree 5. Strongly agree 1. Women Entrepreneurship plays a key role in a nation�s economic development

Strongly disagree 1

Disagree 2 Uncertain 3 Agree 4 Strongly agree 5 2. You went into business because you were unemployed

Strongly disagree 1

Disagree 2 Uncertain 3 Agree 4 Strongly agree 5 3. You went into business because you were dissatisfied with your job

Strongly disagree 1

Disagree 2 Uncertain 3 Agree 4 Strongly agree 5

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4. You went into business because you had a desire for personal development Strongly disagree 1

Disagree 2 Uncertain 3 Agree 4 Strongly agree 5 5. Female entrepreneurs differ from male entrepreneurs in terms of business skills.

Strongly disagree 1

Disagree 2 Uncertain 3 Agree 4 Strongly agree 5 6. You prefer to run more than one enterprise at a time.

Strongly disagree 1

Disagree 2 Uncertain 3 Agree 4 Strongly agree 5



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Challenges & Opportunities for Zambian Women Entrepreneurs

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