Determinants of Women Participation in Micro and Small Enterprises in Hadiya Zone, Ethiopia

Abstract

The study was undertaken with the objective of assessing determinants of women participation choice and intensity of participation in Micro and Small Enterprises in Hadiya zone, Ethiopia. Within the zone three town administrative were selected based the largest number of economic activities. The investigation was grounded on cross-sectional review information from 385 women Micro and Small Enterprise's undertakings participant and non-participant that were assigned using semi-structured interview schedule, key informants interview, focus group discussion, and personal observation. Secondary data was acquired from empirical reports, government policy documents, national statistical reports, journal articles and reports of different organizations. Heckman's two-stage selection model was applied to recognize factors influencing women's participation decision and intensity of participation in MSEs. The first level of probit model estimation results reveal that educational status, business experience, access to credit, access to training, achievement motivation, receiving remittance, information seeking behaviour and initial capital were emphatically and fundamentally impact the likelihood of women participation decision in MSE while age was negatively related and does significantly determine the participation choice of the women. The after effects of the second stage Heckman model demonstrated that the intensity of participation in Micro and Small Enterprises was significantly and positively influenced by educational status, access to market, access to transportation, and achievement motivation. Hence, this study recommends that government and concerned bodies are anticipated to enhance the educational level, skill, and knowledge development training, provide aids and subsidized to income, credit facilities, and the remittance-receiving channels. It is also suggested that women should formulate their own goals and they should participate in business by their own choice nevertheless of other alternatives accomplish well and actions need to be accepted to offer incentives for women who have faced a lack of available initial capital in the study area.