Motivation, Challenges and Performance of Tourism Entrepreneurs in Addis Ababa

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


The objective of this study is to assess motivation, challenges and performances of tourism entrepreneurs in Addis Ababa city. Cross sectional design was employed to explain the major factors like motivation, challenges and performance of entrepreneurs by conducting survey among 144 souvenir entrepreneurs. The challenge of business performance was analyzed by ranking order of items. The result reveals too much government taxation, lack of access to finance are the constraining challenges. Principal component analysis (PCA) was used to identify the motivational factors of business startups and the result also reveals four pull motivational factors such as independence, alertness, confidence and initiation which are validated by discriminatory analysis test. Additionally, four factors such as risk, satisfaction, effectiveness and unemployment factors are identified under push motive factors and validated in the same procedures. The reliability of each factors were tested using Cronbach alpha and validated for the first time in Ethiopia especially in tourism sector. Finally, hierarchical regression analysis was conducted to measure the impact of independent variables (control variables) on independent variables such as sales, profit, and asset and employment performance of the firms. The result implies factors, such as independence has positive association with sales while effectiveness, risk taking, initiation and alertness have negative association with sales performance whereas effectiveness and alertness have negative association with profit performance due to the firms weren’t used resources wisely for profit making.



Motivation, Challenges, Tourism, Entrepreneur, performance