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WOMEN ENTREPRENEURS in SMALL and MEDIUM ENTERPRISES (Smes) in GHANA

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WOMEN ENTREPRENEURS in SMALL and MEDIUM ENTERPRISES (Smes) in GHANA WOMEN ENTREPRENEURS IN SMALL AND MEDIUM ENTERPRISES (SMEs) IN GHANA Smile Dzisi This thesis is submitted in fulfillment of the requirements of the Degree of Doctor of Philosophy Australian Graduate School of Entrepreneurship Faculty of Business and Enterprise Swinburne University of Technology Victoria, Australia March 2008 ABSTRACT Over the past two decades, women entrepreneurs have been recognized for their significant contributions to the socio-economic development of their countries. The Organization of Economic Cooperation and Development (2004) found that, depending on which economy is studied, between 15 percent to more than 35 percent of business owners are women. However, most of the literature on women entrepreneurs has focused on developed countries; limited knowledge exists on women entrepreneurs in developing countries (Saffu and Takyiwaa Manu 2004). While the economic impact of female entrepreneurial activities on economies is substantial, the world still lacks a reliable definition of female entrepreneurship in developing countries and its impact on their economies (ILO 2000). Ghana is one such developing economy in Africa, where women are engaged in diverse productive ventures mostly concentrated in Small and Medium Enterprises (SMEs). These women’s contribution to the socio-economic wellbeing of their families and communities through their entrepreneurial activities has received little attention from policy makers and researchers, and has been taken for granted by the Ghanaian society (Buame 2000; Dolphyne 1991; Saffu and Takyiwaa Manu 2004). This has resulted in gross underestimation and under-utilization of the women’s socio-economic contribution and potential in the Ghanaian economy. The focus of the thesis is generally on female entrepreneurship in a developing country context. Particularly, it investigates and describes the nature and construction of entrepreneurship by Ghanaian women in the cultural, socio-economic and political environment of Ghana, which shapes these women’s entrepreneurial life. As this is one of the first studies on Ghanaian women entrepreneurs in SMEs, a multi- disciplinary approach was adopted to investigate and explore a myriad of factors in order to provide an understanding of Ghanaian women’s entrepreneurship in a whole of life context, rather than as a discrete business activity. Seven research questions based on seven key dimensions were identified in entrepreneurship literature in relation to the women entrepreneurs’ characteristics and experiences, their motivations for business ownership, business profile, human and financial resources, ii their network affiliations, business problems encountered, and their successes. A combined quantitative and qualitative approach was used to collect and interpret data for the study. A questionnaire survey was administered to 300 women entrepreneurs in SMEs in the Koforidua Municipality in Ghana. Additionally, 20 of these women were selected for face to face interviews. The findings reveal that Ghanaian women entrepreneurs balance, create, and manage a whole range of innovative businesses, and personal and family relationships concurrently. These Ghanaian women entrepreneurs possess a unique human capital derived from their childhood and general exposure to entrepreneurial experiences from family members. Their method of acquiring business knowledge and skills is primarily informal compared to their counterparts in developed countries. Also, with their strong personality traits, such as determination and a high need for achievement, coupled with hard work, they have proved themselves capable of doing equally well what their male counterparts can do. These women have worked hard to fulfil themselves, not only through marriage and child bearing, as traditionally expected of them, but also through creating businesses and earning income to care for themselves and their families. It was identified that women in developing countries are taking their economic future into their own hands and are no longer depending on the customary forms of male support. They are positive role models for young women. This study dispels the notion that women’s small businesses are less important to economic growth. The women’s businesses are found in diverse business sectors: trading, services, agro-processing, manufacturing, textile and fabric, agriculture, education and construction. The women have made socio-economic contributions to the economic growth of Ghana by reducing poverty and unemployment. Women’s entrepreneurship, properly harnessed, has great potential as a tool for transforming developing economies. Meeting women’s financing needs at all stages of the business continuum will improve their productivity rate and success. Easier and more convenient access to mainstream business training will be particularly useful to these women, given their time constraints and family responsibilities. The study contributes significantly to knowledge about female entrepreneurship in a developing economy. It also helps to consolidate our understanding of the female iii entrepreneurship phenomenon and the field of entrepreneurship generally, and has practical implications for researchers and policy makers. iv ACKNOWLEDGMENTS A research study of this nature requires the support and assistance of others. I am deeply grateful to my supervisors, Associate Professor Patricia Buckley, Professor Christopher Selvarajah and Dr Denny Meyer, for their commitment and insightful general supervision and inspirational encouragement in all phases of this thesis. I wish to acknowledge my gratitude to those women entrepreneurs in Ghana who comprised the sample group, whose generosity in participating and providing information underpinned the richness of the data and hence the success of the study. I would like to acknowledge the Rector and staff of Koforidua Polytechnic, and the Government of Ghana for the support and opportunity to embark on this study. This vital body of work would never have been able to exist without the exceptionally understanding love and support of my awesome husband, Stephen. My children, Sedem and Sika, though you are very young, you understood when I had to study and created an environment that allowed me to find time for this important study – I love you so much. Also, the encouragement, love and support of my mum Rebecca, and siblings – Togbe Seedom, Kodzo Bright, Esenam, Vivian, Kuklui, Komla Mifatu and Ebenezer are gratefully acknowledged. Many thank to all members of my extended family especially my nieces Adzagba, Sedem and Enaam and my nephews Gad and Fofo. I am also grateful to my in-laws, the Dzisi family for their great love. I wish to convey my gratitude to all my friends, especially Jessie and Frank, Thomas and Namiko, Henry and Elsie, Marrisol and Dimitrie; members of Kew Baptist Church, and those mums at Kew East Primary School, Australia, who readily looked after my kids whenever I had to study. Above all, to God Almighty, the author and finisher of all good works in my life are all the glory and honour for enabling me to complete this study. This thesis is dedicated to the memory of my late father, Rev. Eusebius Kofi Gavua, whose inspiration has brought me so far. v DECLARATION I, Smile Dzisi declare that the thesis: • Contains no material which has been accepted for the award to the candidate of any other degree or diploma, except where due reference is made in the text of the thesis • To the best of my knowledge contains no material previously published or written by another person except where due reference is made in the text of the thesis; and • Where the work is based on joint research or publications, discloses the relative contributions of the respective or authors. Signature: Date: vi TABLE OF CONTENTS Abstract………………………………………………………………………….....ii Acknowledgement……………………………………………………………….....v Declaration…………………………………………………………………………vi Table of Contents………………………………………………………………....vii List of Tables……………………………………………………………………... xi List of Figures……………………………………………………………………..xii List of Appendices………………………………………………………………...xiii Chapter 1: General Overview and the Purpose of the Study………………….. 1 1.1 Introduction…………………………………………………………………..1 1.2 Background to Entrepreneurship …………………………………………….1 1.2.1 Background to Female Entrepreneurship …………………………………....5 1.2.2 The Rise in Female Entrepreneurship………………………………………..7 1.3 Why Study Women Entrepreneurs in Ghana?.................................................12 1.4 Research Objectives…………………………………………………………18 1.5 The Research Questions……………………………………………………..19 1.6 The Theoretical Framework of the Study……………………………………20 1.7 The Hypotheses of the Study………………………………………………...25 1.8 The Ghanaian Context……………………………………………………….27 1.8.1 Geographical Features, Population and Ethnic Composition………………..27 1.8.2 Spheres of Socio-Economic Activities………………………………………28 1.8.3 Critical Issues Concerning Entrepreneurial Activities in Ghana…………….29 1.8.4 Women in Ghana…………………………………………………………….35 1.9 Thesis Outline………………………………………………………………..38 1.10 Summary……………………………………………………………………..40 Chapter 2: Entrepreneurship and Female Entrepreneurship………………….. 41 2.1 Introduction…………………………………………………………………….41 2.2 Interpretations of the Definition of Entrepreneurship ………………………....41 2.3 Entrepreneurs and the Entrepreneurial Process………………………………...44 2.4 Research on Female Entrepreneurship ………………………………………...50 2.5 Summary…………………………………………………………………….....52 Chapter 3: Female Entrepreneurship: Interdisciplinary Perspectives………...54 3.1
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