THE ROLE OF INDIGENOUS WOMEN ENTREPRENEURIAL VENTURES FOR ECONOMIC DEVELOPMENT OF SOKOTO METROPOLIS
Transcript of THE ROLE OF INDIGENOUS WOMEN ENTREPRENEURIAL VENTURES FOR ECONOMIC DEVELOPMENT OF SOKOTO METROPOLIS
THE ROLE OF INDIGENOUS WOMEN ENTREPRENEURIAL VENTURESFOR ECONOMIC DEVELOPMENT OF SOKOTO METROPOLIS
BY
A. A. KWAIDO (Mrs)Economics Unit, Department of General Studies,
College of Basic and Preliminary Studies, Sokoto State Polytechnic
February, 2010
Abstract
An important issue of interest to the global
economy in the 21st century depends on the
participation of both sexes in the growth and
development processes. All over the world, the
significance of women entry into economic venture
over the past three decades has produced profound
transformations in the organization of families,
society, the economy and urban life. Unfortunately
the participation of women in economic ventures in
Sokoto metropolis has been considered as a way to
meeting domestic needs rather than profitable
source of income that can lead to expansion in
business and in the long-run will go along way
towards enhancing economic development. The
objective of this study, therefore, is to determine
ways to overcome some of the problems facing women
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entrepreneurs in Sokoto metropolis. Unless that is
achieved, the chances of indigenous women
entrepreneurs succeeding in running an enterprise
will remain an unfilled dream.
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IntroductionWomen specifically participate in business
ventures from a desire for self determination and for
career challenge and that they expect the
corresponding respect, recognition and self esteem,
which both self determination and challenge can
provide. Unfortunately, along way these desires
remain unattainable to many women entrepreneurs,
because they face difficult challenges stemming not
only from their biological make-up but also the
quantity and quality of the nation’s resources
available to them. Like any other entrepreneur, women
require education and training, financial assistance
and advice to be able to manage the businesses
properly and profitably. Other impediments for women
are societal, cultural and religious attitudes.
For the purpose of convenience and proper
organization, the paper is structured to consist of
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introduction, review the concept of entrepreneurial
venture and examine women entrepreneurial ventures in
contemporary Nigeria. It will also examine problems of
women entrepreneurs in Sokoto metropolis and their
contributions, government effort and the paper ends
with recommendations.
Entrepreneurial Venture as a ConceptThe concept of entrepreneurship has been around
for a very long time, but its resurgent popularity
implies a sudden discovery as our future rests
squarely on entrepreneurial ventures, which involves
more than just problem solving in a management
position but also involve identification and
evaluation of the opportunity, development of the
business plan, determination of the required resources
and management of the resulting enterprise.
Entrepreneurial ventures are founded by creative
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individuals, energetic adventurers, risk takers who
can at once disrupt a society and instigate progress
(Hisrich, Peters & Shepherd, 2008).
Entrepreneurial venture involve a kind of
behaviour that includes initiative thinking,
organizing and reorganizing of social and economic
mechanisms to turn resources and situations to
practical account, individual with vision for growth,
the acceptance of risk or failure (Holt, 2005).
Women Entrepreneurial Venture in Contemporary NigeriaAll over the world, the significance of women
entry into economic ventures has been steadily
increasing. Women have always actively participated in
their local economies. In Africa, for example, women
produce 80 percent of the food and in Asia 60 percent
and in Latin America 40 percent (Onwumere, 2000). In
many cases, women not only produce the food but market
it as well, which gives them a well-developed
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knowledge of local markets and customers. In Africa,
all the tasks related to family support are the
responsibilities of women. Due to cultural and
traditional aspect, a woman’s presence has been a
question of survival of her family (Anyanwu, 2001).
Women, especially poor mothers, must divide their
time between “productive role” and family
“reproductive role” and balancing all the demands.
Time is valuable for these women as their livelihoods
depend largely on their ability to fulfill the
multiple demands of the household and the market
place. In spite of the remarkable importance of
women’s participation, their jobs have been considered
as an “extra income” to family survival or simply to
improve living conditions, instead of a profitable
source of income. This explains why women enterprises
tend to be associated with activities that provide
part-time employment. They are small in size and have4
loose, informal structures, require very little start-
up capital, and little or no formal education
(Obitayo, 1991). Business women in developing
countries like Nigeria share the following
characteristics:
i. They are concentrated in market sectors that have
low barriers to entry and low level of outside
communication (transfer to other markets).
ii. They focus on trade, services, and light
manufacturing activities.
iii. Their businesses are smaller than others,
employing less than five employees.
iv. The owners have relatively little previous
working experience.
v. They use traditional technologies.
vi. Most employees are family related which increases
social pressure to share benefit.
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vii. They are often home based.
viii. Business growth strategies are affected by
household responsibilities.
ix. Owners tend to have lower level of education and
literacy.
x. In adequate bookkeeping.
Despite government programmes aimed at reaching
small-scale entrepreneurs in Nigeria, women, as a
group, are not considered for assistance (US National
Commission on Working Women, 1998). The major reason
for this is that most of the enterprises women engage
in, such as petty dressmaking, hair dressing, food
processing and small scale manufacturing, fall outside
census production surveys, (Economic Commission for
Africa, 1991). The representation of women in the
informal sector is in fact higher than that of men,
unfortunately, the participation of women is
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underestimated. This is because women’s ventures,
which are often excluded from national census of
production surveys, are unaccounted for in the
calculation of the Gross Domestic Product (GDP)
(Soatan, 2004).
Problems of Women Entrepreneurs in Sokoto MetropolisIn Sokoto metropolis, women are faced with
serious constraints in the development of their
business ventures. This is so because the state is a
place where women enterprises are mostly concentrated
in rural areas with few opportunities and little
access to funds and credit facilities. Even where
credit facilities are available, the cost (that is
interest rate) and other bank charges are mostly too
high. Also women entrepreneurs find it difficult to
provide collateral security usually demanded by banks,
access to equity funding are difficult to raise by
most women largely because of lack of trust by equity
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providers because the women entrepreneurs lack the
rudimentary skills necessary for preparation of
bankable proposals due for consideration by lending
institutions and access to the stock market is
virtually non existent (Mensah, 1990).
Lack of information on the availability and
location of raw materials, its profitability,
availability, technology and technical assistance and
sources of finance including venture capital
particularly for small-enterprise are all either not
available or difficult to access in certain situation.
Where they are available, there is inadequate
availability of industrial infrastructure to meet the
need of women entrepreneurs in Sokoto metropolis. For
instance, infrastructural facilities such as water,
electricity, transportation et cetera are not
adequately provided leading most businesses to
spending their limited resources in establishing basic8
utilities and facilities. Obviously, this adds to
their total overhead costs (Nnanna, 2001).
In a study conducted by Shamsudeen (2003) it was
discovered, there is the lack of technical support
mechanism to most ventures owned by women. In fact, it
is surprising that no technical support system geared
towards assisting women entrepreneurs by way of
improving existing technology is in use despite the
fact that most women ventures use indigenous
technology in their production system. To date there
has not been a well articulated technological policy
formed as an integral part of National Industrial
Development Strategy. Against this background, the
growth prospects of women entrepreneurs in Sokoto
metropolis appear very bleak especially under the
present economic environment of liberalization and
deregulation.
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The impact of family commitment in Oluchi, (2001)
was identified as a major problem militating against
women entrepreneurs as they lack the full support and
cooperation of their spouses. It is revealed that most
spouses are unnecessarily jealous of their wives
business endeavour thereby relinquishing their
domestic financial responsibilities to their wives.
The women entrepreneurs lack adequate time for running
of their businesses because of reproductive and
domestic responsibilities.
Indigenous Women Entrepreneurs and their ContributionsIndigenous women entrepreneurs refer to the group
of women who are the real indigenes of Sokoto State.
These groups of women are mostly the local women who
are generally illiterates, poor and majority of them
are married and remain in their matrimonial homes for
the greater part of their time without going out
unless the need arises. Thus, many people believe that
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these women are not participating in any economic
activity. This notion however, contradicts the reality
of the situation. Ironically, this segment of women
perhaps contribute more than those who formally engage
in those economic activities that receive due
recognition and attention by the government (Malami,
2006).
The labour which these women provide is very
large and it helps in the smooth running of our
societies. The level of domestic chores which these
women engage in, if given monetary value may be higher
than any other respected and recognized job. In
addition to domestic responsibilities of these women
they also engage in one form of trade or the other.
(Malami, 1996) Some economic activities undertaken by
this segment of women includes the following:
1. Rearing of animals
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2. Food and catering
3. Local sauce (Daddawa)
4. Manufacturing soaps and creams
5. Manufacturing of mats (Wundaye), covers (Faya-
fai) local fans (Maferfetai), making sieve
(Matankadi) and mixer (Maburkaki)
6. Pot manufacturing
7. Leather works
8. Spinning and weaving
9. Leather works
10. Tailoring
11. Carpentry
12. Hair dressing, to mention but few.
Going by the above mentioned contribution one
will be able to observe that all the above mentioned
are areas if expanded will become big manufacturing
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enterprises that can provide employment and income to
many and which in turn adds value to the state’s
economy as well as the country’s economy, thus leading
to economic development. Unfortunately these segments
of women and their types of trade are not receiving
due recognition by the government as part of the
economic activities that contribute to the economic
growth and development of the nation (Malami, 2006).
Government EffortsThe present civilian administration, which took
over the government on 29th May, 2007 formulated
policies and programs towards improving the well being
of people of Sokoto State at large. particularly the
poor and unemployed through skill acquisition training
program. The state government established women
resource center where women are trained in different
types of skills for income generation activities
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(Social Welfare, Entrepreneurship Education and Skills
Acquisition, 2008).
Training poor widows left with children on simple
business methods and each assisted with N10,000 (ten
thousand naira) to boost their existing income
generation activities or start new ones. Additionally,
there was limited provision of credit support facility
for the procurement of equipment and machines
essential to enhance productive capacity and to
improve or modernize production methods.
Recommendations
1. In the face of all that, it is being suggested
that the existing literacy level in the country
and particularly among women can be improved by
the government through education and training
programmes by educating more women providing them
with basic education and training. These can be
done by arranging scholarship and embarking on14
house to house training programme involving
female teachers who will meet with the targeted
women in their various homes to educate and train
them since most of them live in seclusion
(purdah). The education and training should cover
skill development courses, monitoring trainees
and enterprises, marketing development,
continuous training of entrepreneurs which will
help in assisting the women in becoming
successful.
2. Since women make up a higher proportion of those
involved in small – scale activities, their
contribution should be acknowledged by the
society as a whole and in particular the
government. To acknowledge the contribution of
women is to assist them to solve the numerous
obstacles they are facing.
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3. To increase and support women’s participation in
small scale enterprises. governments should
explore ways of developing innovative credit
programmes using intermediary channels or
institutions closer to the target groups such as
co-operatives, women’s group associations and
other grassroot organisations. Savings and credit
programmes should be designed in a way not to
exclude women from participating.
4. Establishing of support systems including the
provision of relevant infrastructure, working
materials machines, equity market, quality
control, standardization, flexible rules and
regulations, simplified registration and business
procedures et cetera. This will help in
strengthening the capacities of women.
5. Husbands should try as much as possible to give
their wives the encouragement, the moral and16
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