Motivation, Challenges and Performance of Tourism Entrepreneurs in Addis Ababa
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Date
2019-06
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Addis Ababa University
Abstract
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.
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Keywords
Motivation, Challenges, Tourism, Entrepreneur, performance