Challenges & Opportunities For Zambian Women Entrepreneurs

JOURNAL OF MANAGEMENT AND ADMINISTRATION
Challenges and Opportunities for Zambian Women Entrepreneurs

Gabriel Konayuma
Abstract
Very little has been written about women entrepreneurs in Zambia. Notable studies have
been those by Walker (1998:10) focusing on the changes and effects of the macro-economic
policy as it relates to indigenous female entrepreneurs in Zambia in the agricultural sector.
In another study, the International Labour Organisation (ILO) (2003:xv) sought to identify
ways in which the government, the ILO, donors, non-governmental organisations (NGOs),
and the private sector could improve the prospects for women's entrepreneurship in Zambia
and enhance the contribution of women entrepreneurs to the creation of meaningful and
sustainable employment opportunities and poverty reduction.
Women are active participants in the small and micro enterprises (SME) sector throughout
the world, especially those running informal enterprises. However, research has shown that
women entrepreneurs face particular socio-cultural, educational and technical constraints
to starting, and growing their own enterprises (International Labour Organisation, 2003:1)
This paper focuses on enhancing the business management of women entrepreneurs so that
they have equal opportunities as their male counterparts in contributing to the socio-
economic development of Zambia. The study also seeks to provide policy recommendations
for the further development of entrepreneurship in general and women’s entrepreneurship
in Zambia in particular. Currently there is lack of a strong policy framework that supports
the growth of an entrepreneurial culture among Zambians and growth of women’s
entrepreneurship development.
Significance of the Study
By examining the challenges and opportunities of women entrepreneurs in Zambia, the study
will:
1. Suggest solutions to various challenges faced by women entrepreneurs. This may lead
to improvements in the management practice particularly among women entrepreneurs
Challenges and Opportunities for Zambian Women Entrepreneurs 69

MARCH 2007
in Zambia as it relates to entrepreneurship development;

2. Influence indirectly the nature of practices, industries and business support services that
are linked to entrepreneurship;
3. Propose guidelines to the policy framework for entrepreneurship as it affects women
entrepreneurs;
4. Add to the body of knowledge of entrepreneurship development in Zambia that can be
used by academicians, researchers, non-governmental organisations, private sector,
entrepreneurs and policy makers.
Aim of the Study
The aim of the study is to investigate the challenges and opportunities faced by women
entrepreneurs in Zambia and establish the effects on business management in general and
entrepreneurship development in particular.
Objective of the Study
The objective of this study is to:
Identify the strengths, weakness, opportunities and threats faced by women entrepreneurs in
Zambia;
Problem Statement
Women entrepreneurs are an emerging force in Zambia’s economy. However, they face a
number of challenges such as inadequate access to start-up capital in form of loans, inadequate
policies supportive of women’s entrepreneurship development and cultural norms that are not
supportive of women entrepreneurs. These challenges impede the full potential of women
entrepreneurs in their businesses. While some efforts have been made by policy makers,
women’s associations, non-governmental organisations and other stakeholders to address this
concern, there is still a lot that needs to be done to ensure that women entrepreneurs contribute
fully to the national economy. In addition women entrepreneurs have a number of opportunities
which they are not fully taking advantage of such as women associations, conferences and
70
international markets. The purpose of this study is to investigate the challenges and
opportunities faced by Zambian women entrepreneurs in order to ensure that they manage their
enterprises better to result in improved and competitive enterprises.
Literature Review
Benefits of Entrepreneurship
Entrepreneurship has a lot of benefits. These benefits can be broken down at national, societal
and individual levels. The figure below shows these benefits. In Zambia, entrepreneurship has
proved to be beneficial to individuals, society and the nation. For example, Euro Africa Coach
Services which runs bus services between Lusaka and the Copperbelt provinces, has created
job opportunities for some Zambians and created a competitive environment in the transport
sector due to their efficient services. Society has benefited because traders from the Copperbelt
can travel to Lusaka, buy their goods and return to the Copperbelt on the same day.
Entrepreneurship Development in Zambia
Entrepreneurship in Zambia has arisen due to a number of factors. Some have started
enterprises due to retrenchments as a consequence of privatisation of parastatal firms between
1992 and 1999. Others have become entrepreneurs to supplement their incomes in order to
meet family budget needs. A number of government ministries have policies that support
entrepreneurship development. These include the Technical Education, Vocational and
Entrepreneurship Training Policy, the Youth Policy, the Commercial, Trade and Industrial
Policy and the Labour and Social Security Policy.
Before 1991, small-scale business owners were actively discouraged due to socialist economic
management with the government playing a leading role in stimulating economic activities.
However, a sharp decline in the copper price, Zambia’s most important export product between
1973 and 1975 coupled with a rise in oil prices and other imports led to a more active
encouragement of small-scale entrepreneurs.
Some of the challenges that entrepreneurship development has had in Zambia include:
entrepreneurs lacking managerial skills, low levels of consumer demand, competition from low
entry barriers given to foreign investors and lack of capital (Frese, 2000:32-33).

MARCH 2007
Kombe (2000:62–67) identifies culture, education, mistrust, dishonesty, resources, bank

lending policies, technological capabilities, lack of protectionist policies as some of the barriers
that affect entrepreneurship development in Zambia.
It can be noted that entrepreneurship development has not been easy. However some
entrepreneurs both female and male have weathered the storm and become successful by
adopting sound business practices and having a resolute desire to succeed.
Women Entrepreneurs
Women’s entrepreneurship needs to be studied for two main reasons. The first reason is that
women’s entrepreneurship has been recognised during the last decade as an important untapped
source of economic growth. Secondly, the topic of women entrepreneurship has been largely
neglected both in society in general and in the social sciences (Organisation for Economic Co-
operation and Development, 2004:5). There is need to review existing literature as it relates to
the challenges and opportunities faced by women entrepreneurs in the global scene, Africa and
Zambia.
Nieman et al. (2006:34) estimates that between 80 percent of the workforce of developing
nations are in the informal sector. Street vendors constitute a significant share of this
workforce. In Africa, especially, women represent the majority of these vendors because they
often lack the necessary technical skills to do much else in the informal sector. Women
entrepreneurs seem to be the most disadvantaged group. Until recently a woman could not
pursue a business activity without taking her husband or a male family member along.
In Zambia, a number of entrepreneurs are in the informal sector. Females are in the majority as
informal sector operators. The table below shows the distribution.
Table 1 Proportion of Persons Aged 12 years and Above Who Were Employed in the
Informal Sector by Sex, Rural/Urban, Stratum and Province, Zambia, 2002-2003
Source: (Central Statistical Office, 2004:66)

Residence/Stratum/Province Both sexes Male Female Total number of employed
persons
All Zambia 83 76 91 3,517,371
Rural 93 89 96 2,571,153
Urban 56 47 71 946,218
72
Types of women entrepreneurs
Women entrepreneurs may be grouped in four broad types. These are: traditional, innovative,
domestic and radical.
Traditional women business owners are highly committed to entrepreneurial ideas, as well as
to conventional gender roles.
Innovative women business owners are highly committed to entrepreneurial ideas but not to
traditional gender roles.
Domestic women business owners are not committed to entrepreneurial ideas but have a high
attachment to entrepreneurial ideas or to traditional gender roles.
Radical women business owners have little commitment to entrepreneurial ideas or to
traditional gender roles; these women cannot be seen as entrepreneurial venture seekers. They
are usually young, without children and well educated, but have limited work experience
(Nieman et al., 2006:35).
In Zambia, women entrepreneurs are mainly in the categories of traditional and innovative. For
the traditional category, women entrepreneurs have started businesses because of economic
hardships at home. This contributes to the push factor in the economy. In Lusaka and
Copperbelt provinces, a number of women have started enterprises to earn income due to
retrenchments of their spouses. The innovative women entrepreneurs are motivated by limited
career progression in large firms. They are ambitious and place a high priority on their
businesses.
There are various motivations for becoming an entrepreneur. There are basically push and pull
factors. Push factors are factors that are there due to necessity. Examples are unemployment,
insecurity, disagreement with management and lack of alternatives. Pull factors are opportunity
driven. One may have a desire for personal development, independence, achievement,
recognition and personal wealth.
Female entrepreneurs differ from male entrepreneurs in terms of motivation, business skills,
and occupational backgrounds (Hisrich et al., 2005:69). A comparison of female and male
entrepreneurs is listed in the table below. A significantly large number of women operate as
portfolio entrepreneurs, preferring to grow more than one enterprise rather than expanding an

MARCH 2007
existing one. In Lusaka, Zambia there is a lodge owner (female entrepreneur) running a plant
nursery business along her main business line. Another female entrepreneur runs a hair saloon
and also undertakes media consultancies. Women entrepreneurs often have a clearly articulated
business logic and marketing strategy underpinning their multiple enterprise strategies. In
developing countries, more research has been carried out on women in the informal economy,
and to date little is known about women in growth-oriented enterprises (Finnegan, 2003:2-3).
This illustrates the need for a study on women operating formal enterprises and why women
prefer a diversified approach to running enterprises. It is worth investigating why many women
entrepreneurs operate their “multiple” enterprises in feminised sectors (Finnegan, 2003:4).
Challenges Faced By Women Entrepreneurs in Zambia
An ILO study on Zambian women entrepreneurs identified the following challenges faced by
women entrepreneurs: lack of access to start-up capital, lack of business training/skills and
experience, bureaucratic business registration systems and negative attitudes by society
towards women in business (International Labour Organisation, 2003:xvii). As this study was
conducted in 2002, it is necessary to investigate whether these challenges still exist, or whether
they have been minimised or they have become worse. The ILO study was
conducted at a time Zambia was formulating and implementing a Transitional Development
Plan.
The ILO study among many findings found that “76 per cent of women involved in enterprise
are in the age category of 20-40. This places heavy reproductive and child care
responsibilities on them. These responsibilities are often in competition and conflict with the
demands of the women’s businesses. It was also discovered that the majority (77 per cent) of
the women in enterprise in Zambia have high education levels ranging from ‘O’ Level to
university education “which represents a significant improvement in comparison with women
in the informal sector” (Chisala, 2002:1). From this finding it can be noted that the age group
of women are those in the critical stage of their lives where they are setting goals and
planning for later life (after becoming 40 years). They are vibrant and can learn a lot of new
skills, yet the demands on their time as parents and spouses places a lot of demands on their
businesses. They require training in management with emphasis on time management, stress
management, change management and project management. This training can be done after
conducting a training needs analysis. It’s advisable to use entrepreneurs that have undergone
74
the experiences of this age group would help in ensuring that the training received is very
practical.
Masebo (2006:1) has noted that disabilities and the HIV/AIDS pandemic deprive women of an
opportunity to contribute towards national economic development. Those living with
HIV/AIDS are hindered from growing their businesses. HIV/AIDS impacts business
performance as the business owner may need to take time off thus reducing on business
profitability and supervision of the business. Employees also in the business may also fall ill
due to HIV/AIDS and other illnesses. This will have a negative impact on the business when
the employee(s) are on medical leave. Should the business owner relieve them of their duties
and employ someone else? Would it be ethical for the business owner to demand HIV/AIDS
tests for new employees? What about the issue of providing a medical scheme for all
employees that would include providing free ARVs for employees that have HIV/AIDS.? What
does business ethics suggest? Job discrimination on health grounds is an ethical issue.
Velasquez (2004:390) states that “a helpful framework for analysing different forms of
discrimination can be constructed by distinguishing the extent to which a discriminatory act is
intentional and isolated (or non-instutionalised) and the extent to which it is unintentional and
institutionalised”. Discrimination in any form is undesirable. Employees should not be
discriminated against because they are unwell.
Opportunities for Women Entrepreneurs in Zambia
In Zambia, women face the following opportunities: agriculture, mining, tourism and
education. For tourism there is a Visit Zambia 2006 Campaign. This campaign seeks to:
 Brand Zambia as home of the Victoria Falls,
 Increase international tourists arrivals by 20 per cent per annum during the period of the
campaign with additional 400, 000 tourists by 2010.
 Stimulate domestic tourism visitor levels to at least 50% of international arrivals by the
year 2010 (Lumpa, 2005:4).
The Visit Zambia campaign provides opportunities for tour operators and those that provide
goods and support services. More specifically tourism sub sectors where investments are
required include: accommodation, restaurants, tourism transport, adventure activities,

MARCH 2007
meetings, conferences, wildfire tourism, museums, sports tourism, crafts and cultural/ethno
tourism and tourism entertainment (Tourism News, 2005:14). This Visit Zambia campaign is
an opportunity for women entrepreneurs to position their enterprises so that they fully exploit
such businesses. In addition there is a Tourism Credit Fund that is used to support those
engaged in tourism to improve their businesses.
The ‘Buy Zambian campaign’ also presents opportunities for women entrepreneurs to improve
their product offerings and services. The campaign seeks to encourage Zambians to buy
Zambian products and services. The Commercial, Trade and Industrial policy has an objective
of promoting the consumption of locally produced goods and services in order to increase
domestic demand for Zambian goods and services. The policy prescriptions for this policy
objective are “encouraging the branding of locally produced goods and services and
maintaining support for the Buy Zambia Campaign, in order to ensure that locally
manufactured goods and services compete favourably in the domestic market, while becoming
competitive on the international markets” (Ministry of Commerce, Trade and Industry,
2005:33). Women entrepreneurs can take advantage of this campaign by producing quality and
affordable products that can compete favourably with imported products. They must correctly
identify their target market and make product offerings with the right price. This needs to be
supported by well designed promotions and having the right environment (place) for the
product or service offerings.
The Citizens Economic Empowerment is another opportunity available to entrepreneurs. The

objectives of this reform programme is to unlock the growth potential of citizens through
business development support and empowerment initiatives (Ministry of Commerce, Trade and
Industry, 2005:38). This programme can be taken advantage of by women entrepreneurs to
ensure that they benefit from the funds available for entrepreneurs to develop their businesses.
Other opportunities are in services, agriculture, mining, energy, manufacturing and

construction. Service opportunities range from business services (advertising, market research,
printing and publishing, consultancy, etc) communication (telecommunications, courier
services) educational services (education and training), health services, transport (air, road,
customs and freight forwarding), construction and engineering services, financial services
(insurance, banking, asset management), recreational, entertainment and sporting services,
76
energy (generation and transmission of electricity; supply of fuels and lubricants), agriculture,
manufacturing and mining (technical services and management consultancy).
Mining offers many opportunities to women entrepreneurs. There are some support
organisations for women entrepreneurs in mining. Examples are Women in Mining. In mining
a deliberate program needs to be put in place to train Zambian entrepreneurs to appreciate the
different minerals that can be used in various industries. Zambian businesses must be
developed with skills to mine, cut and polish in the case of marble and granite, and process
these minerals to the quality that meets export standards thereby opening an opportunity to earn
foreign exchange in addition to servicing the domestic market (Zambia Investment Centre,
2006:1).
Women entrepreneurs can benefit from providing services domestically and internationally.
The Times of Zambia (2006:1) observes that “Services account for at least 50 per cent of Gross
Domestic Product in most developing countries. The growth of the service sector, especially
through export promotion, can thus have a significant impact on economic growth,
employment creation and poverty alleviation, thereby contributing to the achievement of the
Millennium Development Goals. As the service sector employs more women than any other
sector, women entrepreneurs are likely to benefit from employment creation in the service
sector”.
Women entrepreneurs need to possess skills of opportunity evaluation in order to make the
most of the opportunities above. Nieman et al. (2006:77-78) propose the following criteria in
screening opportunities: “industry and market issues, economics, harvest issues, management
team, fatal flaw issues, personal criteria and strategic differentiation”. Strategic differentiation
refers to how a venture positions itself to take advantage of the given market conditions to its
benefit, while at the same time differing from the competitors in terms of the value added to
consumers (Nieman et al, 2006:80). For women entrepreneurs to practice good opportunity
evaluation skills they need to have a good educational background, networking and good
mentors. In short they need to overcome the challenges identified above.
It needs to be noted that if these opportunities are not seized at the right time, they may be
missed for ever. Currently, the local currency in Zambia has appreciated against major trading
international currencies. This is both a challenge and opportunity. For exporters it is a

MARCH 2007
challenge, because it means the foreign exchange sales earn them less local currency. For
importers it is an opportunity as they need less local currency to import items.
It is important for women entrepreneurs to be armed with skills at identifying the right
opportunities at the right time. They are a lot of opportunities available to women. The danger
lies in women entrepreneurs going for the same or similar opportunities while other profitable
opportunities go begging. Banda (2004:2) advises that: “Women entrepreneurship development
programmes must cover all aspects not only for establishment and running of enterprises, but
also for development of their entrepreneurial and managerial competencies”.
Women entrepreneurs can also take advantage of organisations such as Women Entrepreneurs
Development Association of Zambia (WEDAZ), Zambia Federation of Association of Women
in Business (ZAFWIB), Small Enterprises Development Board (SEDB), Women Finance Co-
operative of Zambia and Lusaka District Business Association. SEDB formulates coordinates
and implements policies and programs for promoting and developing micro and small
enterprises. It also develops provides marketing support services to micro and small enterprises
and develops entrepreneurship in Zambia (Ministry of Commerce, Trade and Industry, 2006:1).
Women Finance Co-operative of Zambia economically empowers all micro and small-scale
women entrepreneurs in Zambia through provision of financial services, training, advocacy and
networking.
Methodology
This study largely uses the inductive approach with the deductive approach also used to collect
and analyse data. The inductive approach has been selected in preference to the deductive
approach where it is difficult to define the control groups. Within the inductive approach a
questionnaire is used as it is most suitable for this type of study.
Target Population
The target population in the research is made up of all potential participants that form the group
to be studied. In this study the target population is the women entrepreneurs with registered
business in the Lusaka Province of Zambia. A total of 38 out of 40 women entrepreneurs
included in the sample responded to the questionnaire. This represents a response rate of 95
78
percent. Three out of the 40, were not included in the data analysis. Of the three, two of them
were for enterprises that were not registered and one was not included as it was incomplete.
Two questionnaires were not completed by the respondents. This left the complete
questionnaires to 35 (i.e. 70 percent of the sample). For organisations a total of 9 out of 10
included in the sample responded to the questionnaire. This represents 90 percent of the
sample.
Sampling
Sampling is the process of selecting a fractional part of the whole relevant group or population.
Sampling is of two broad types – probability and non-probability. With probability sampling,
the likelihood of any one member or element of the population being selected is known. If
there are a hundred guest houses and twenty hotels, the odds of selecting one hotel as part of
the sample is 20:100 or 1/5. In non-probability sampling, the exact numbers of elements in the
population are unknown with the result that the likelihood of selecting any one member of the
population is not known (Mancosa, 2003:74-76). Coldwell and Herbst (2004:79) state that the
advantage of the probability sample is that, given that the sampling frame is complete and the
samples are adequate, it is unbiased and representative of the population. For non-probability
sampling, it is not possible to assess whether the sample is representative of the specific
population or not.
This research will use probability sampling as the exact number of elements in the population
is known.
The Research Instrument
A research instrument is used to collect data. The two most commonly used primary data
collection methods are the questionnaire and the interview. These data collection instruments
enable the researcher to collect answers for their research questions from their subjects.
The questionnaire used in this study is the Likert-style rating scale. The scale seeks to measure
how strongly respondents feel on the challenges and opportunities faced by women
entrepreneurs. The questionnaires utilises both positive and negative statements to ensure that
respondents read each statement carefully before circling their response. This type of

MARCH 2007
questionnaire was chosen to enable respondents make quick choices and also because it is
simpler to code and analyse. Closed questions or statements have been used to avoid
differences in interpretation.
The Questionnaire Items
Questionnaire items are made up from a question and scale. The question may be in question or
statement form. The scale is used to capture the respondent’s opinion/response to the question.
The questionnaire used has a 5-point scale with the anchors: strongly disagree, disagree,
uncertain, agree, and strongly agree. The questionnaire uses a Likert scale that “measures on a
continuum how strongly a respondent agrees or disagrees on n item/phrase”
(Hendricks, 2003:2).
Pilot Study
A pilot study was done on 10% of the sample size. This size is considered adequate
information on the validity and reliability of the questionnaire. No adjustments were deemed
necessary on the original questionnaire.
Data Analysis
Data analysis will be done on the collected data. The purpose of analysis is to give some
meaning from the collected raw data. The data is analysed using SPSS (statistical analysis
software) for both data entry and editing. The questionnaires from the field work are
consequently edited, coded and then entered on to the computer. As data is entered it is
checked for inconsistencies and errors. Thereafter it is converted to a spreadsheet package
(Microsoft Excel) for labelling and further cleaning.
Presentation of Findings
The study focuses on the challenges and opportunities of Zambian women entrepreneurs.
Consequently, the questionnaire was designed to obtain the views of women entrepreneurs,
policy makers and women business associations. The questionnaire was meant to help women
entrepreneurs reflect on their strengths, weaknesses, opportunities and threats.
80
Presentation of Research Findings
The presentation of findings focuses on analysis of the interview question:

 What opportunities and threats do women entrepreneurs face?
Additional questions/statements were used to obtain data from the respondents. These
questions are:
(i) Women Entrepreneurship plays a key role in a nation’s development.
(ii) You went into business because you were unemployed.
(iii) You went into business because you were dissatisfied with your job.
(iv) You went into business because you had a desire for personal development.
(v) HIV/AIDS poses a real threat to the business growth of women entrepreneurs.
(vi) Associations such as Women Entrepreneurs Development Association of Zambia
(WEDAZ) offer business opportunities and support.
(vii) Associations such as Zambia Federation of Associations of Women In Business
(ZAFWIB) offer business opportunities and support.
(i) Women Entrepreneurship plays a key role in a nation’s development.
Figure 1 Role of Entrepreneurship to Development
30
28
26
24
22
20
18
16
Number of Respondents
14
12
10
8
6
4
2
0
Strongly disagree Agree Strongly agree
Respondent's Response

MARCH 2007
From figure 1 it can be seen that 94 percent of the respondents strongly agreed or agreed that
women entrepreneurship plays a key role in a nation’s economic development. A total of 6
percent of the respondents strongly disagreed with the statement.
Hypothesis Testing
Table Cross-tabulation chi-square test on the role of women entrepreneurship in

national development and desire for personal development.
Asymp. Sig.
Value Df (2-sided)
Pearson Chi-Square 10.08 4 0.039
Likelihood Ratio 7.665 4 0.105
Linear-by-Linear Association 3.266 1 0.071
N of Valid Cases 35
The researcher formulated a hypothesis that the role women entrepreneurship plays in national
economic development had no relationship with women entrepreneurs going into business
because of a desire for personal development. From the computations in Table 2 for the null
hypothesis test, the computed test is 0.039, the null hypothesis is rejected and conclude that the
role women entrepreneurship plays in national economic development has a relationship with
women entrepreneurs going into business because of desire for personal development.
Table 3 Cross-tabulation chi-square test for role of women entrepreneurship in

economic development and job dissatisfaction.
Asymp. Sig.
Value df (2-sided)
N of Valid Cases 35
because of job dissatisfaction. From the computations in Table 3 for the null hypothesis test,
the computed test is 0.003, the null hypothesis is rejected and conclude that the role women
entrepreneurship plays in national economic development has a relationship with women
entrepreneurs going into business because of job dissatisfaction.
82
Table 4 Cross-tabulation chi-square test for the role of women entrepreneurship in

economic development and the business support and opportunities
offered by women business associations.
Asymp. Sig.
Value df (2-sided)
N of Valid Cases 35
because of job dissatisfaction. From the computations in Table 4 for the null hypothesis test,
the computed test is 0.047, the null hypothesis is rejected and conclude that the role women
entrepreneurship plays in national economic development has a relationship with women
entrepreneurs going into business because of job dissatisfaction.
Table 5 Cross-tabulation chi-square test of the role of women entrepreneurship to economic

development and the usefulness of the Gender Policy
Asymp. Sig. (2-

Value df sided)
N of Valid Cases 35
economic development had no relationship with the usefulness of the national Gender Policy in
ensuring that women entrepreneurs have equal opportunities as their male counterparts in
business. From the computations in Table 5 for the null hypothesis test, the computed test is
0.014, the null hypothesis is rejected and conclude that the role women entrepreneurship plays
in national economic development has a relationship with the usefulness of the national Gender
Policy in ensuring that women entrepreneurs have equal opportunities as their male
counterparts in business.

MARCH 2007
(ii) You went into business because you were unemployed.
Figure 2 Unemployment as a reason for going into business
16
14
12
10
8
Number of Respondets
0
Strongly disagree Disagree Agree Strongly agree
Unemployment and entrepreneurship
Figure 2 shows that 29 percent of the respondents strongly agreed or agreed that women
entrepreneurs went into business because they were unemployed. A total of 71 percent of the
respondents disagreed or strongly disagreed with the statement.
Hypothesis Testing
Table 6 Cross-tabulation chi-square test of unemployment as a reason for starting

business and challenge of information in business.
Asymp. Sig.
Value df (2-sided)
N of Valid Cases 35
The researcher formulated a hypothesis that the unemployment as a reason for women
entrepreneurs going into business had no relationship with the challenge of information in
business. From the computations in Table 6 for the null hypothesis test, the computed test is
0.031, the null hypothesis is rejected and conclude that unemployment as a reason for women
entrepreneurs going into business has a relationship with the challenge of information in
business.
84
(iii) You went into business because you were dissatisfied with your job.
Figure 3 Job dissatisfaction as a reason for starting business
14
12
10
Number of Respondents 8
0
Strongly disagree Uncertain Strongly agree
Disagree Agree
From figure 3 it can be seen that 48.5 percent of the respondents agreed and strongly agreed
that women entrepreneurs go into business because they are dissatisfied with their jobs. A total
of 48.5 percent disagreed and strongly disagreed with the statement while 3 percent were
uncertain.
Hypothesis testing
Table 7 Cross-tabulation chi-square test of unemployment as a reason for starting

business and challenge of information in business
Asymp. Sig.
Value Df (2-sided)
N of Valid Cases 35
The researcher formulated a hypothesis that the job dissatisfaction as a reason for women
entrepreneurs going into business had no relationship with personal development as a reason
for women entrepreneurs going into business. From the computations in Table 7 for the null
hypothesis test, the computed test is 0.05, the null hypothesis is rejected and conclude that job
dissatisfaction as a reason for women entrepreneurs going into business has a relationship with
personal development.

MARCH 2007
Figure 4 Personal development as a reason for starting business
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0
Strongly disagree Agree Strongly agree
Figure 4 shows that 91 percent of the respondents agree and strongly agree that women
entrepreneurs go into business because they have a desire for personal growth. A total of 9
percent strongly disagree with the statement.
Hypothesis Testing
Table 8 Cross-tabulation chi-square test personal development as a reason for going

into business and available business support.
Asymp. Sig.
Value df (2-sided)
N of Valid Cases 35
The researcher formulated a hypothesis that the desire for personal development as a reason for
women entrepreneurs going into business had no relationship with available business support
for women entrepreneurs. From the computations in Table 8 for the null hypothesis test, the
computed test is 0.03, the null hypothesis is rejected and conclude that the desire for personal
development as a reason for women entrepreneurs going into business has a relationship with
available business support for women entrepreneurs.
86
(v) HIV/AIDS poses a real threat to the business growth of women entrepreneurs.
Figure 5 Threat of AIDS to business
20
18
16
14
12
Number of Respondents 10
2
0
Disagree Agree
From figure 5 it can be seen that 91 percent of the respondents agreed or strongly agreed that
HIV/AIDS was a real threat to the business growth of women entrepreneurs. A total of 6
percent disagreed or strongly disagreed with the statement while 3 percent were uncertain.
(vi) Associations such as Women Entrepreneurs Development Association of

Zambia (WEDAZ) offer business opportunities and support.
Figure 6 Association business support (WEDAZ)
20
18
16
14
12
10
2
0
Disagree Agree
Respondents Respnse
Figure 6 shows that 60 percent of the respondents agreed or strongly agreed that Women
Entrepreneurs Development Association of Zambia (WEDAZ) offered business opportunities
and support to women entrepreneurs. 14 percent disagreed or strongly disagreed with the
statement while 26 percent were uncertain.

MARCH 2007
Hypothesis Testing
Table 9 Cross-tabulation chi-square test of personal development and association

business support.
Asymp. Sig.
Value df (2-sided)
N of Valid Cases 35
The researcher formulated a hypothesis that the desire for personal development as a reason for
women entrepreneurs going into business had no relationship with business support for women
entrepreneurs from business associations. From the computations in Table 9 for the null
hypothesis test, the computed test is 0.02, the null hypothesis is rejected and conclude that the
desire for personal development as a reason for women entrepreneurs going into business has a
relationship with available business support for women entrepreneurs.
(i) Associations such as Zambia Federation for Associations of Women In Business

(ZAFWIB) offer business opportunities and support.
Figure 7 Association business support (ZFAWIB)

20
18
16
14
12
10
0
Disagree Uncertain Agree Strongly agree
Respondents Response
Figure 7 shows that 60 percent of the respondents agree or strongly agree that Zambia
Association of Federation of Women in Business offers business opportunities and support to
women entrepreneurs. A total of 6 percent disagreed with the statement while 34 percent are
undecided.
88
Hypothesis Testing
Table 10 Cross-tabulation chi-square test for association business support and gender
policy support.
Asymp. Sig.
Value df (2-sided)
N of Valid Cases 35
The researcher formulated a hypothesis that gender policy support for women entrepreneurs
had no relationship with business support for women entrepreneurs from business associations.
From the computations in Table 10 for the null hypothesis test, the computed test is 0.03, the
null hypothesis is rejected and conclude that gender policy support for women entrepreneurs
has a relationship with available business support for women entrepreneurs.
Discussion of Findings
The discussion of findings focuses on the interview question:

 What opportunities and threats do women entrepreneurs face?
(i) Women Entrepreneurship plays a key role in a nation’s development

Most respondents (94 percent) agreed or strongly agreed that women entrepreneurship plays a
key role in a nation’s development. This view could be attributed to women realising that
entrepreneurship is a means to wealth creation that promotes national development. Women
become entrepreneurs due to a desire for personal development and being dissatisfied with
their current jobs. In the literature review it was noted that entrepreneurship initiates change in
the structure of business and society leading to growth that allows more wealth to be divided
by the various participants (Hisrich et al., 2005:69). The role of women entrepreneurs in
national development needs to be taken very seriously by developing nations. This view is
supported by Annan (2003:1) who states that “there is no effective development strategy in
which women do not play a central role”.
Those that strongly disagreed (6 percent) could have done so as they felt that their enterprises
are not really performing well. Others could have felt that their enterprises are just pastimes

MARCH 2007
and could not really contribute to national development. It is also possible that some
respondents could not have fully understood the importance of the role that their enterprises
played in national development.
(ii) You went into business because you are unemployed

Only 29 percent strongly agreed or agreed that women entrepreneurs went into business
because they are unemployed. Some of those in this category had been retrenched after
downsizing of some companies after privatision of firms in Zambia that started in 1992.
A total of 71 percent disagreed or strongly disagreed that women entrepreneurs went into
business because they are unemployed. This implies that some women are involved in
entrepreneurial ventures to supplement income in their jobs. Thus most of the respondents
interviewed can be categorised as being entrepreneurs due to pull factors i.e. a desire for
personal development, independence and personal wealth. Some of the entrepreneurs
interviewed indicated that they needed to be sure of the viability of their businesses before they
could leave their jobs to concentrate on their businesses.
(iii) You went into business because you are dissatisfied with your job.
An equal number of respondents (48.5 percent) both agreed/strongly agreed and
disagreed/strongly disagreed that they went into business because they are dissatisfied with
their jobs. Considering those that disagreed or strongly disagreed, it can be noted job
dissatisfaction does not always lead to women becoming entrepreneurs. Some may choose to
remain in their jobs despite being dissatisfied due to few jobs in the market and a guaranteed
source of income. Those that are uncertain (3 percent) could be unclear on how to assess
whether they are dissatisfied with their jobs.
For those that agreed or strongly agreed with the statement it implies that job dissatisfaction is
a big factor that leads to women starting enterprises. In this case the motivation for becoming
an entrepreneur is a push factor.
Most respondents (91 percent) agreed or strongly agreed that they went into business because
they had a desire for personal development. This indicates that women entrepreneurs are driven
by opportunity (pull factors) to become entrepreneurs. Personal development is enhanced in an
90
environment where there is adequate business support for women entrepreneurs. Those that
disagreed or strongly disagreed (9 percent) could have other motivating factors such as job-
dissatisfaction, unemployment, family business etc.
(v) HIVA/IDS poses a real threat to the business growth of women entrepreneurs.
Most respondents (91 percent) agreed or strongly agreed that HIV/AIDS was a real threat to
the business growth of women entrepreneurs. This can be explained by the high infection rates
in Zambia and the working hours lost by employees who have to seek medical attention and get
some rest. This finding agrees with the literature review where it was noted that the HIV/AIDS
pandemic deprived women of the opportunity to contribute towards national economic
development (Masebo, 2006:1). In addition, persons with HIV/AIDS have lower immunity
thus other diseases such as opportunistic diseases such as tuberculosis take advantage leading
to long periods of illness.
Respondents who disagreed or strongly disagreed could have felt that HIV/AIDS was not a real
challenge as it was like any other disease except that people stigmatise those that have it. They
may also not have had any significant experiences with HIV/AIDS in their enterprises.
The respondents that are uncertain (3 percent) could have not been clear on the impact of
HIV/AIDS on their enterprises due to lack of information.
(vi) Associations such as Women Entrepreneurs Development Association of Zambia

(WEDAZ) and Zambia Federation for Associations of Women In Business (ZFAWIB)
offer business opportunities and support.
A good number (60 percent) of the respondents agreed or strongly agreed that WEDAZ and
ZFAWIB, a women’s business association offered business opportunities and support. In the
literature review it was noted that women associations such as AABWA and African
Association of Women Entrepreneurs offer opportunities for training and marketing of goods.
The ILO study found that a number of women had received non-financial support services
(business training, counselling, participating at exhibitions) and are active members of
associations (ILO, 2003:55). However, there was still scope to increase the awareness of and
greater interaction of the women entrepreneurs with business development support providers in
Zambia as that study found. This finding is supported by the high numbers who disagreed or

MARCH 2007
strongly disagreed and are uncertain (40 percent) of the business support offered by both
WEDAZ and ZFAWIB. There is need to ensure that this high number is reduced by putting in
place measures by the associations that will market their services and increase their levels of
business support.
Conclusions
Women entrepreneurs are faced with a number of challenges and opportunities. The challenges
impede the growth of the women enterprises. The major challenges as seen in the study include
access to finances, access to information, lack of business training/skills and experience, and
negative attitudes towards women in business. Some women have not taken full advantage of
the opportunities that are available to them. Some of the opportunities include tourism and
agriculture businesses.
Below are conclusions arising from the research study.
Strengths and Weaknesses of Women Entrepreneurs
The study found that women entrepreneurs face challenges in accessing finances, information
and competition from well-established male dominated businesses. Other challenges included
family commitments, inadequate business support services and recruiting and managing human
resources. The study has shown that women entrepreneurs are impacted negatively by these
challenges. These challenges have been faced by the women entrepreneurs for some time as
shown in the literature review has shown. Business support services, women business
associations and organisations need to put in place better measures to effectively address these
challenges so as to improve the performance of women enterprises.
Opportunities and Threats faced by Women Entrepreneurs
The study found that women entrepreneurs had opportunities in starting enterprises due to job
dissatisfaction and a desire for personal development. In addition it was found that the majority
of respondents thought that business associations such as WEDAZ and ZAFWIB offer
business opportunities and support. HIV/AIDS was found to be a real threat to the business
growth of women entrepreneurs. Women entrepreneurs need business support such as finances
92
and training to take advantage of the available opportunities. This also applies to the threats
faced by the women entrepreneurs.
Recommendations
Based on the research findings above, the following recommendations are made:
Access to Finances
Finances play a critical role in the development of women enterprises. Therefore, the
government, civil society and business support providers need to put some measures in place to
ensure that women entrepreneurs have better access to finances. For government it is
recommended that a Women’s Entrepreneurship Development Fund be put in place. This will
ensure women have adequate access to finances to develop their businesses. In addition, the
Ministry of Gender in Development needs to set up a Women’s Desk that has detailed
information on finances and other business details. Other policy strategies should include:
 Encouraging banks and other money-lending institutions to have favourable lending
terms such as not demanding for too much collateral and giving low-interest loans for
women and other disadvantaged groups.
 Creation of women only banks to cater for women entrepreneurs in Zambia.
 Tax incentives to categories of women enterprises.
 Women business associations should have detailed information on services available
from lending associations. This should include training in presenting funding proposals
and business plans.
Access to Information
Women business associations need to create a comprehensive database of women

entrepreneurs, business support providers, government ministries dealing with women
entrepreneurs and business opportunities. The media needs to devote more space to addressing
issues about women entrepreneurs and providing information useful to them. The Ministry of
Commerce, Trade and Industry in liaison with stakeholder ministries needs to package relevant

MARCH 2007
information on women entrepreneurs. The information should include details on business

support services, policies, legislation, technologies and profiles of women entrepreneurs.
Business Support Development
Business support providers need to:

 Develop training programmes in business management skills such as marketing,
finances, human resource management, operations management and knowledge of
business performance, etc.
 Facilitate better and improved networking amongst women entrepreneurs to ensure
information sharing on business related matters. In addition role models among
successful women entrepreneurs need to be used as signposts for women entrepreneurs.
 Develop targeted training and support for different groups of women entrepreneurs e.g.
widows, retrenches, new entrepreneurs etc.
 Facilitate business incubation and mentoring of new entrepreneurs.
HIV/AIDS
The HIV/AIDS pandemic continues to be a major threat to the development of women

enterprises in Zambia. Business support providers, business associations, and the government
need to continue providing information and programmes that will mitigate the impact of the
problems caused by the pandemic. This should include assistance in developing HIV/AIDS
policies for the workplace, provision of anti-retroviral drugs and other AIDS therapeutic drugs.
Bibliography
Annan, K. (2003) Investment in African Women Entrepreneurs Leverages Economic Growth

[online]. London: Commission for Africa. Available from: http:
//www.commissionforafrica.org/english/consultation/bob_geldofs_seminars/unitedstates/alice_
m_dear.pdf [Accessed 10 July 2006].
Chipungu, S. N. (ed.) (1992) Guardians in their Time. London: Macmillan Press Limited.
Chisala, C. (2002) ‘New era dawns for Zambia women entrepreneurs?’ Times of Zambia,
Ndola, Monday, 16 December 2002, p. 1.
Coldwell, D. and Herbst, F. (2004) Business Research. Cape Town: Juta and Co. Ltd.
94
Finnegan, G. (2003) Facilitating Women’s Entrepreneurship: Lessons form the ILO’s research
and support programmes. Geneva: International Labour Organisation.
Frese, M. (ed.) (2000) Success and Failure of Microbusiness Owners in Africa: A

Psychological Approach. Westport: Quorum Books.
Gundry, L. K., Ben-Yoseph, M. and Posig, M. (2002) ‘Contemporary Perspectives on

Women’s Entrepreneurship: A Review and Strategic Recommendations’, Journal of
Enterprising Culture, 10(1), March, 67-85.
Hisrich, R. D., Peters, M. P. and Shepherd, D. A. (2005) Entrepreneurship. 6th Edition. New
York: McGraw-Hill.
Kombe, A. M. (2000) Entrepreneurship Development in Zambia: An Evaluation of Barriers

Affecting Entrepreneurship Development in the Informal Sector. Unpublished MBA
dissertation. Lincolnshire: University of Lincolnshire and Humberside.
Lumpa, C. (2006) ‘Speech at Launch of the Visit Zambia 2006 Campaign’, Tourism News, No.
21. April 2006. Lusaka: Chopiva Enterprises.
Masebo, S. (2006) ‘HIV/AIDS derails women’s business progress’, Times of Zambia, 2

February 2006. Available from: http://www.times.co.zm/news/viewnews.cgi?
category=allandid=1128023526 [Accessed on 19 May 2006].
Ministry of Commerce, Trade and Industry (2005) Commercial, Trade and Industrial Policy.
Lusaka: Ministry of Commerce, Trade and Industry.
Ministry of Commerce, Trade and Industry (2006) Small Enterprises Development Board
[online]. Lusaka: Ministry of Commerce, Trade and Industry. Available from:
http://www.mcti.gov.zm [Accessed on 17 May 2006].
Ministry of Science, Technology and Vocational Training (1998) Technical Education,

Vocational and Entrepreneurship Training Policy. Lusaka: Ministry of Science, Technology
and Vocational Training.
Nieman, G., Hough, J. and Nieuwenhuizen, C. (eds.) (2006) Entrepreneurship: A South

African Perspective. Pretoria: Van Schaik Publishers.
Robb, A. M. (2002) Entrepreneurial Performance by Women Minorities: The Case of New

Firms. Journal of Developmental Entrepreneurship, 7(4), December, pp. 383-397.
Tourism News (2005) ‘General Investment Opportunities in Zambia Tourism’, Tourism News,
No. 13, May 2005. Lusaka: Chopiva Enterprises.
Velasquez, M. G. (2004) Business Ethics – Concepts and Cases. 5th Edition. New Delhi:
Prentice-Hall
Walker, E. W. (1998) Indigenous Female Entrepreneurs in Zambia Success Strategies.

Unpublished MBA dissertation. Leicester: De Montfort University.

MARCH 2007
Zambia Investment Centre (2006) Investment Opportunities [online]. Lusaka: Zambia

Investment Centre. Available from: http://www.zic.org.zm [Accessed on 7 May 2006].
96
INSTRUCTIONS: Please tick the appropriate box to indicate whether you:
1. Strongly disagree
2. Disagree
3. Uncertain
4. Agree
5. Strongly agree
1. Women Entrepreneurship plays a key role in a nation’s economic development
Strongly disagree 1
Disagree 2
Uncertain 3
Agree 4
Strongly agree 5
2. You went into business because you were unemployed
Strongly disagree 1
Disagree 2
Uncertain 3
Agree 4
Strongly agree 5
3. You went into business because you were dissatisfied with your job
Strongly disagree 1
Disagree 2
Uncertain 3
Agree 4
Strongly agree 5

MARCH 2007
4. You went into business because you had a desire for personal development
Strongly disagree 1
Disagree 2
Uncertain 3
Agree 4
Strongly agree 5
5. Female entrepreneurs differ from male entrepreneurs in terms of business skills.
Strongly disagree 1
Disagree 2
Uncertain 3
Agree 4
Strongly agree 5
6. You prefer to run more than one enterprise at a time.
Strongly disagree 1
Disagree 2
Uncertain 3
Agree 4
Strongly agree 5
98
(Volume 5; Number 1)
EDITORIAL OFFICE : MANCOSA Journal of Management and Administration

26 – 32 Aliwal Street, Durban, 4001
PHONE : +27 31 3007200
FAX : +27 31 3007254
E-MAIL : research@mancosa.co.za
EDITOR : Dr. R.D. Maharaj
EDITORIAL COMMITTEE : Prof N Bhana

Prof P Beard
Dr D Jinabhai
Dr RD Maharaj
Dr AS Adam
REFEREE : Prof N Bhana
PRODUCTION MANAGER : Mrs Babita Narain
COVER : Mrs Babita Narain
The Mancosa journal is a research periodical which publishes work from around Southern Africa that is applicable to
policy, practice or research enquiry in general and specialised areas of management.
The views expressed in published articles are those of the authors and not necessarily those of the editor, editorial
board or MANCOSA. All submissions will be initially reviewed by the editor, and if appropriate, sent to referees for
review. The authors are responsible for the accuracy of facts stated in the articles.
Published by the Management College of Southern Africa, Durban, South Africa

Copyright © 2007, MANCOSA

Challenges & Opportunities For Zambian Women Entrepreneurs

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Challenges & Opportunities For Zambian Women Entrepreneurs

Caricato da

Copyright:

Formati disponibili

JOURNAL OF MANAGEMENT AND ADMINISTRATION

Challenges and Opportunities for Zambian Women Entrepreneurs

Significance of the Study

Challenges and Opportunities for Zambian Women Entrepreneurs 69

in Zambia as it relates to entrepreneurship development;

Aim of the Study

Objective of the Study

The objective of this study is to:

Entrepreneurship Development in Zambia

Challenges and Opportunities for Zambian Women Entrepreneurs 71

Kombe (2000:62–67) identifies culture, education, mistrust, dishonesty, resources, bank

Source: (Central Statistical Office, 2004:66)

Types of women entrepreneurs

Challenges and Opportunities for Zambian Women Entrepreneurs 73

Challenges Faced By Women Entrepreneurs in Zambia

Opportunities for Women Entrepreneurs in Zambia

Challenges and Opportunities for Zambian Women Entrepreneurs 75

The Citizens Economic Empowerment is another opportunity available to entrepreneurs. The

Other opportunities are in services, agriculture, mining, energy, manufacturing and

Challenges and Opportunities for Zambian Women Entrepreneurs 77

The Research Instrument

Challenges and Opportunities for Zambian Women Entrepreneurs 79

The Questionnaire Items

Presentation of Research Findings

The presentation of findings focuses on analysis of the interview question:

(i) Women Entrepreneurship plays a key role in a nation’s development.

Figure 1 Role of Entrepreneurship to Development

Challenges and Opportunities for Zambian Women Entrepreneurs 81

Table Cross-tabulation chi-square test on the role of women entrepreneurship in

Table 3 Cross-tabulation chi-square test for role of women entrepreneurship in

Table 4 Cross-tabulation chi-square test for the role of women entrepreneurship in

Table 5 Cross-tabulation chi-square test of the role of women entrepreneurship to economic

Asymp. Sig. (2-

Challenges and Opportunities for Zambian Women Entrepreneurs 83

(ii) You went into business because you were unemployed.

Figure 2 Unemployment as a reason for going into business

Unemployment and entrepreneurship

Table 6 Cross-tabulation chi-square test of unemployment as a reason for starting

Table 7 Cross-tabulation chi-square test of unemployment as a reason for starting

Challenges and Opportunities for Zambian Women Entrepreneurs 85

Figure 4 Personal development as a reason for starting business

Table 8 Cross-tabulation chi-square test personal development as a reason for going

(vi) Associations such as Women Entrepreneurs Development Association of

Challenges and Opportunities for Zambian Women Entrepreneurs 87

Table 9 Cross-tabulation chi-square test of personal development and association

(i) Associations such as Zambia Federation for Associations of Women In Business

Figure 7 Association business support (ZFAWIB)

The discussion of findings focuses on the interview question:

(i) Women Entrepreneurship plays a key role in a nation’s development

Challenges and Opportunities for Zambian Women Entrepreneurs 89

(ii) You went into business because you are unemployed

(vi) Associations such as Women Entrepreneurs Development Association of Zambia

Challenges and Opportunities for Zambian Women Entrepreneurs 91

Below are conclusions arising from the research study.

Strengths and Weaknesses of Women Entrepreneurs

Opportunities and Threats faced by Women Entrepreneurs

Women business associations need to create a comprehensive database of women

Challenges and Opportunities for Zambian Women Entrepreneurs 93

information on women entrepreneurs. The information should include details on business

Business Support Development

Business support providers need to:

The HIV/AIDS pandemic continues to be a major threat to the development of women

Annan, K. (2003) Investment in African Women Entrepreneurs Leverages Economic Growth