FACTORS AFFECTING THE PERFORMANCE OF WOMEN SMALL AND MEDIUM ENTERPRISES IN NAKAWA DIVISION
INTRODUCTION
1.1 Background of the study
It is realized globally that solving factors facing the performance of women small and medium enterprises is the key to any development process of any nation and that women form the bases of success in economic project in this case small and medium enterprises. The great success of small and medium sized enterprises will largely depend on appreciating and mentoring majority of human resources in the developing world: ‘women’. The success of women small and medium enterprises’ projects is key to the nation as if they succeed, the nation succeeds. In this study, ‘factors affecting the performance’ of women small and medium enterprises involves two related concepts: women’s right to expect returns and services from the project, on the one hand, and on the other, the women’s responsibility to the project so as to ensure contribution to growth of nation’s economy. The structure and goals of the business itself, and the performance of its management will define the success of the business, particularly the ability to make rational decisions about operations (Bridge et al., 1998).
In their development policies, many countries have stressed the need to encourage women to participate and establish their own businesses, a factor which will eliminate poverty in the society as women clearly outnumber men. Ownership, passion and support of women small and medium enterprises will lead to their projects’ success. The rationale for this lies in the acknowledgement that society cannot prosper without full co-operation and support of its women in running of the development projects. Entrepreneurial factors like management experience, family history, functional skills, and relevant business sector knowledge will be key for the success of women small and medium enterprises (Storey, 1994).
To overcome the factors affecting the performance of women small and medium enterprises, women must be allowed to take initiative and deliberations so that they are able to exert effective control of their development projects. Therefore creating an enabling climate to small and medium enterprises in development projects involves effective coordination of local activities and involving all stakeholders to enable women help themselves to achieve certain objectives to bring about success. Successful women small and medium entrepreneurs identify good business climate as key in achieving one of the Millennium Development Goals (MDGs) that is eradication of extreme poverty and hunger, (Modebe & Ubajaka, 2012)
Supporting entrepreneurial potential of Women has not yet been fully exploited (Antoni, 2010).If well supported, whether by internal factors (eg capital and human resources), or by external factors for example government support, women small and medium enterprises will be seen to thrive and position themselves to mentor other women who have interest in venturing to small and medium enterprises projects. Other scholars have also emphasized the need of ownership of development projects by communities. In Uganda, women need to up their game and own successful small and medium enterprises project as it’s through their effort that they can expand their businesses leading to expansion of the Ugandan economy.
Women need to work on their projects as their own, and also involve the beneficiaries. Unless local people assume ownership, development projects are meaningless (Jeffrey, 2008). He is echoed by Katheline, (2001) who adds that “It is important to put the ownership of the project in the hands of the beneficiaries who can then use these new skills to address other needs.” This means that cooperation by both women entrepreneurs and their consumers is very important for small and medium enterprises projects’ success.
Globally, success of small and medium enterprises projects still is a challenge. Large projects like Kariba dam is on the verge of collapse as it has developed ‘serious structural weaknesses’ according to Zambian watchdog newspaper, 2014. The walls of the dam are developing cracks and therefore the World Bank and IFC need to move with speed to save the situation. The possible collapse of the dam would pose a threat to power supply not only in Zimbabwe and Zambia but in the whole region. According to a survey conducted by World Bank’s private arm and the International Finance Corporation, they have found that only half of its Africa projects succeed. The major contributing factor for collapse of these projects is lack of required skills, unfriendly business environment and the passion to drive the projects to the next level. Some projects are funded through loans, but the sometimes due to poor feasibility studies, they end up collapsing.
In Nakawa division, incomplete projects include real estates, halfway built hospitals and schools, broken water pipes to mention but a few of the indicators of unresolved barring blocks in women small and medium enterprises. It is now necessary to examine in-depth the challenges that cause or influence negatively small and medium enterprises owned by women.
1.2 Statement of the Problem
SMEs are the major agents of economic growth and employment in Uganda and over 60% of businesses are estimated to fail each year (Uganda National Bureau of Statistics, 2013). Glen (2003) notes that, under normal circumstances women’s enterprises have low growth rate and limited potential partially due to the type of business activities they run. Despite government efforts in Uganda to promote SMEs activity, not much progress seems to have been achieved on the performance of SMEs with many women small and medium enterprises failing in the first two years of operation. Therefore the study seeks to investigate the factors influencing the performance of women small and medium entrepreneurs.
1.3 Objectives of the study
1.3.1 General objective of the Study
- To determine the factors influencing the performance of women small and medium entrepreneurs in Nakawa division, Kampala district.
1.3.2 Objectives of the Study
The study will focus on achieving the following objectives:
- To analyze the effect of cultural practices on the performance of women small and medium entrepreneurs in Nakawa division
- To establish the effect of source funding on the performance of women small and medium entrepreneurs in Nakawa division
- To determine the effect of entrepreneurial training on the women small and medium entrepreneurs in Nakawa division
1.4 Research questions
The study will attempt to answer the following questions:
- To what extend do cultural practices have on the performance of women small and medium entrepreneurs in Nakawa division?
- How does source of funding affect the performance of women small and medium entrepreneurs in Nakawa division?
- To what extend does entrepreneurial training have on the performance of women small and medium entrepreneurs in Nakawa division?
1.5 Scope of the study
1.5.1 Content Scope
The study will determine the factors influencing the performance of women small and medium entrepreneurs. With specific emphasis on the effect of cultural practices, source of funding and entrepreneurship training on the performance of women small and medium entrepreneurs
1.5.2 Geographical scope
The study will be carried out at Nakawa division, Kampala district. The area is chosen because it has multiple SMEs that are women owned thus, will provide relevant information needed.
1.5.3 Time scope
The study will be carried out for a period of three months from May to July, 2017.
1.6 Significance of the study
It is hoped that the study would be of great use to the Nakawa division as it will use the study to develop policies and strategies that will be of great use in ensuring success of already established women small and medium enterprises and new ones to come.
It is the researchers believe that the government would use the report through the Ministry of Gender in developing policies for effective disbursement and use of funds to women small and medium enterprises
Non Governmental Organizations (NGOS) and other development partners like International Monetary Fund (IMF) and World Bank will find the report useful.
