THE ROLE OF FEMALE ENTREPRENEURS IN POVERTY ALLEVIATION IN RURAL COMMUNITIES: THE CASE STUDY OF AWKA SOUTH LOCAL GOVEERNMENT AREA IN ANAMBRA STATE,NIGERIA
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THE ROLE OF FEMALE ENTREPRENEURS IN POVERTY ALLEVIATION IN
RURAL COMMUNITIES: THE CASE STUDY OF AWKA SOUTH LOCAL GOVEERNMENT AREA IN
ANAMBRA STATE,NIGERIA
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 microenterprises have played key role in poverty
alleviation among the businesses’ owners in Awka Division through
income generation and job creation.
CHAPTER ONE
INTRODUCTION
1.1 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.
1.2 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.
1.3 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?
1.4
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.
1.5 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.
1.6 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
1.7 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,i.e. 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.
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