Profitability and Constraints Analysis of Women Entrepreneurs in Lagos State, Nigeria

A.O Otunaiya,O.I Ambali,A.O Idowu

doi:10.19026/ajbm.5.5811

Abstract

This research assessed the constraints limiting the success of women entrepreneurs in selected local government areas of Lagos State, Nigeria. A sample of 120 women entrepreneurs were selected from three Local Government Areas of Lagos State in a two-stage sampling procedure. The data collected were analyzed using descriptive statistics, constraint analysis, budgetary analysis and multiple regression analysis. The predominant primary occupation was found to be trading 45 with 92.5% of the women in their productive years. The finding also revealed that a vast majority (92.5%) of the women entrepreneurs had formal education above primary level with 43.3% of them spent not less than 10 years in their business, which was presumed to benefit their enterprises. The women entrepreneurs faced certain constraints which affect their businesses, the highest ranked ones include; poor shop location (ranked 1 st ), lack of long term finance (ranked 2 nd ) and competition from rivals (ranked 3 rd ) among others. The women entrepreneurs earned 40 kobo on every 1 naira sale revenue. The multiple regression results revealed that main occupation, business membership strength, initial capital outlay and total variable cost had significant effect on the net income of the women. Policy options from the findings include: Increment in funds invested in the business enterprises of these women entrepreneurs alongside reduction in cost could boost the possible expansion of their enterprises; provision of psychological, moral and financial support from members of the family is needed for entrepreneurial development and Government should provide cheaper sources of credit to the women with little or no collateral to encourage their enterprises growth, self-reliance which are necessary ingredients for nation's development.

Highlights

Academics and government appear to be focused on entrepreneurship, because it symbolizes innovation and a dynamic economy
The second stage involved the selection of 40 women entrepreneurs within each local government area, making a sample size of 120 respondents used for the study
This research assessed the constraints limiting the success of women entrepreneurs in selected local government areas of Lagos Division

Summary

Introduction

Academics and government appear to be focused on entrepreneurship, because it symbolizes innovation and a dynamic economy. Female entrepreneurs have been identified as a major force for innovation, job creation and economic growth (OECD, 1997). This finding has spurned a lot of researches into women’s ownership. In some regions of the world, transformation to a market economy threatens to sharpen gender inequality. Some of these changes are the legacy of a gender imbalance that exists prior to political and economic returns. Other changes reflect a return to traditional norms and value that relegated women to a secondary position. Women’s productive activities, in industries that empower them economically and enable them to contribute more to overall development; whether they are involved in small or medium scale production activities, or in the informal or formal sectors, are a means for economic survival and have positive social repercussions for the women themselves and their social environment (UNIDO, 2001)

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Results

Conclusion