Challenges that Affect the Growth of Women Owned Small and Medium Enterprise: A Case Study of Arada Sub City

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Addis Ababa University


Small and Medium Enterprises (SMEs) are still an issue that is interesting to study because it is recognized that small businesses have a major role in employment and contribution to the gross domestic product. This study sets out to provide detailed information on the main factors that currently affect the growth of women owned small and medium enterprise which started out as small and eventually grew into medium and large scale industries. The study considered the total population of 65 respondents in Arada sub city. Both descriptive and econometric analysis was employed to determine factors influencing the growth of women manufacturing industries. The study found that only few numbers of women in the manufacturing industry have transformed their business from small to medium enterprises and no one transferred to large scale industries. The result from econometrics analysis confirmed that those enterprises who took loan from bank has positive and significant influence on transformation of women owned enterprise. The study further observes that years of experience in the industry and receiving related training plays an important role in the success and growth of women owned enterprise. Interestingly, the study did not find any evidence of gender related burden to affect the growth of women owned enterprise targeted in the study.



Growth, Quality, Training