CHAPTER ONE

1. INTRODUCTION

1.1.            BACK GROUND OF THE STUDY

Like most developing countries, Ethiopia is a country where by a sizable proportion of its population lives in absolute poverty. In 1992, out of estimated 50.8 million Ethiopians, 60% of them live in absolute poverty, (WDR, 1994). Its socio economic situation for the last two decays is characterized by low level of economic growth, high population increase, drought, famine rural to urban migration civil unrest and so on. The Gross National product ( GNP) per capital of Ethiopia amount to only USD 110 in 1992 with an average growth rate of 1.9% since 1980 ( WDR, 1994). The poor performance of the economy has results decline of real wage share rise in the level of unemployment and an increase in the level of poverty the most seriously affected women , young people and the aged owing to  their relative weak economic situation.( Todaro, development Economics 2003 )

Although even if women have covered half of the population, they are the bottom of the ladder in terms of employment, education and economic status. That means potential, education to be suppressed, owing to some persisting major constraint hindered the participation of women in social and economic activities or access to resource.  Another problem is related to access to productive resource characterized women’s income.  These include lack of funding possibility and adequate access to credit. The social and cultural attitudes are also a major factor that put women in secondary status Vis-a Vis man in social economic and political life.

Lack of adequate level of education and training is another factor that contributes the discrimination of women in society. According to WDR, (WDR, 1994) only 21% of the female are enrolled in primary school, 11% in secondary school and 1% in tertiary level in Ethiopia. (Azmera , women Labor participation 1996)

Traditionally, women are involved in productive, reproductive and community roles. But women are a backbone of the society and are active participant in any micro and large Entrepreneurs activity which are given little consideration. Because of the deep rooted socio cultural practices and their low educational status, women have limited access to participate in any entrepreneur activities, institution and formal organization usually they participate in informal activities such as serving as a house hold maids, bartending (Prostitution and petty trading) all of such do not which need capital or basic education.

Bahir Dar is the capital city of amahra national regional state, which approximately 2million people live within the city in spite that women make up more than 50% of the population the participation and skill of women has to be enhanced for effective development of the country.

The Ethiopian government has made a broad policy oriented to introduce market economy in Ethiopia for the past few years certain measures are out lined for long term growth. This also include the wide participation of women , in promoting favorable initiative and measure for development of entrepreneurship we have to identify and understand the unique features and problems of women entrepreneur particular micro and small enterprises are important for women.

1.2 STATEMENT OF THE PROBLEM

The Ethiopian women have important responsibility regarding food, Agriculture and any other sector of the economy. (Azmera , women Labor participation 1996) They are also engaged on industrial sector as well as the service sector. However due to several factors which include;

·         Operatives cultural attached of the society and women themselves assenting the capability of women in business field,

·         Low availability of capital,

·         Lack of access to financial and credit access,

·         Women have not been fully accorded the attention and importance they deserve. In the past years in many developing countries,

There was a high need for the development of small enterprises. But it is recently that issues and questions are used concerning promotion and enhancement of women entrepreneurs engaged in micro and small enterprises.

Absence in the analysis and effectively studied of  women related issue leads to assume that women are motivated by the same  element and seek of similar reward for undertaking entrepreneurial activity. Never the less, self employment is a means to achieve the desire of autonomy, job satisfaction and in addition a work which allow great flexibility. However these women play a dual role i.e.

a.      To become the center of the home crowned with the virtue of faithfulness and responsible for coordination of house and family.

b.      In addition as an entrepreneur, they have to be able to observe the environment, identify opportunity to improve it utilize resource and implement action to maximize opportunity to organize manage and assume the Risk for running the business.

The above problem may exist on both male and female entrepreneurs for the purpose of this study the following basic research questions are formulated 

1.      What is the level of the practice of women entrepreneurs?

2.      What are the major challenges encountered by women entrepreneurs?

3.      What are the future prospect (opportunity) of those female entrepreneur and related challenges?

1.3 OBJECTIVE OF THE STUDY

The primary objective of this study is to asses and examines some distinguishing features problem, prospects and challenges of women entrepreneurs in bahir dar town. The specific objective of this study therefore,

• To assess the level to the development and promotion of women entrepreneurs.
• To mention the general factor those affect the development of women entrepreneur in the town.
• To identify major the challenges
• To evaluate the   prospect existing as far as women entrepreneurs are concerned.

1.4 SCOPE OF THE STUDY

The interest of the research had been focused its area of study in women engaged in trade. Why? Because, the participation in this sector had permitted women to offer grate contribution to the economy as well as achieving a place in the society by one’s accompaniment. In addition to this, women in the service sector are part of the study. Since women owned business can be categorized under the three broad sectors. The research had been conducted in bahir dar town from which women engaged in entrepreneurial activity selected

1.5 LIMITATION OF THE STUDY

This study is undertaken of the bases of women entrepreneurs that involves in different sector of the economy in Bahir Dar town. Due to the limited human and financial resource the study is restricted to 45 respondents from the total population. Regarding interview, the study is planned to interview appropriate women entrepreneurs who have different occupation and area of participation and their fore,

The other limitation was low availability of data (especially secondary data) regarding business undertake by women. There is a small quantity of current and updated information about women in business.

                

1.6 SIGNIFICNACE OF THE STUDY

The major importance (significance) that are expected from theie research paper would;

1.      It encourages the targeted economic development through further investigation in the area of women entrepreneurs’ participation because it requires another finding and investigation on these areas.

2.      The finding may give a hint (clue) about women entrepreneur and its problem , prospects (opportunity) challenges and the causes for the observed situation , that initiate the policy makers, the women it self and other interested party to carry out detail investigation.

3.      The finding of the research may help the respective responsible party and the investigator to understand the general participation of women entrepreneur profile, the causes of the observed condition & take possible action that can be taken to correct the unbalanced situation.

4.      The result from this study somehow would have practical validity and mainly could serve as a spring board for further studies to be conducted in this area.

      1.7. DESIGN AND METHODOLOGY

1.7.1. PARTICIPANTS AND TECHINQUE

Basically, these researches would be concerned to women entrepreneurs that involve in different sector of the economy and identifying their problem prospects and challenges. Even it those problems affect other portion of the society but for simplicity, reliability and accuracy the specific scope of women entrepreneurs participation would be considered. Regarding the material requirement to analyses and produce out put from raw data the access of personal computer is used. The specific scope of women entrepreneur that have special roles in economic, social as well as political aspects of the town. Among the frame population target in the town, 15% of the sample population assumes to be sufficient to conduct these researches. The frame of population include only who are legalized by renewing their license at least stayed for the past five years in its operation totally 300 women entrepreneurs in the town and interview had bean made with numbering of mentioned percentage, that is 45 women out of the total population. Those selected targeted group are expected to be familiar with the forwarded interview questions because of their behavior and experience.

1.7.2. METHOD OF DATA COLLACTION

For the accompanishment of this research, the data would be collected from both primary and secondary sources. The primary data would be used to identify the problem, opportunities and challenges of women entrepreneurs to identify the actual and potential participation of women and awareness. To get these data interview would used to sample participants.

   Secondary data includes any information available that is directly or indirectly helps to understand the above issue would be collected. These data was collected from the town trade and industry bureau, Bahir Dar Bureau of Finance, Women Association, Labor and Social Women Affairs Office.

           1.7.3.     METHOD OF DATA ANALYSIS

The analyzed data had been organized in tables. Using percentages graphs and also some other methods needed to put or present some part of the data the increasing trend of women participation and also the actual challenges of their participation, moreover, descriptive inflection analysis had been applied on those data that could not be included in the table, graph and percentage. These are applicable especially for qualitative data like feeling, opinions about the women involvement in economic, social as well as political issue of the town

After all the necessary data for the study had been collected, the processing and analyzing of data was been done. Processing implies editing, coding and classification of the collected data, so that they had been suitable for fur their analysis editing on the other hand, is a process of examination of collected data in order to be sure possible problem are resolved.

    Tally and some other methods for presenting data to process are going to be used, so that responses by put in to a limited number of categories or classes. Because as most studies result in large volume of data, which must be reduced to homogeneous groups, arranging the raw data in to a group on the bases of common character tics had been required. After processing and classfing the data, the analysis had been made.

   . The most important finding concerning women entrepreneurs in different sector of the economy in bahir dar town, problem, opportunity and challenges investigation has been conducted thoroughly on women entrepreneurs . The examination focused on different issue like problem, opportunities, social views and attitudes educational back ground and many other aspect.

An interview was conducted to go to deep and clarity answer given by women entrepreneurs. An interview is conducted on 45 women entrepreneurs randomly from the total population.  These section contain the analysis from which related and relevant conclusion will be drown from the data.

                               

                                         

                                                       CHAPTER TWO

2. LITERATURE REVIEW

2.1. ENTERPRENERSHIP DEFFINATION, CONCEPTS AND APPROCH

Entrepreneurship is an essential element in economic development and in believed to have a great contribution towards the creation of activities which lead to human development. As pointed before, there is no one and universally accepted definition of entrepreneurship. However generally entrepreneurship is the capacity and willingness of individual to innovate, properly judged and takes considerable risk to introduce change in the economic activity and manage business. In capitalism, socialism and democracy ( 3^rd 1950) Joseph schupeter defined the entrepreneurial function as that “… of undertaking a new and untried business  responsibility producing new and untried business possibility is producing new  commodities or producing an old one in a new way, reorganizing an industry open up a new market , developing a new source of supply, exploiting an invention”

Entrepreneurship or the entrepreneurial function in a business development processes is widely recognize to be a critical factor or a key variable in the economic growth of a nation particularly LDC_s like Ethiopia. In fact in literature, it is concerned that entrepreneurial in put spells the difference between prosperity and poverty among nation. In real life these process therefore entrepreneurship has emerged as one of the priority of many developing countries.

Basically, the dearth of entrepreneurs in Ethiopia as many other LDC_s is critical issue that deserves further research and study. In Ethiopia, the stimulation, promotion and development of entrepreneurs to accelerate the development of small scale enterprises is a decisive stop for development.

The subject of the promotion and development of entrepreneurship in the country in virtually untouched, except a plot EDP and few safe training opportunity organized and developed by GTZ (the German Technical cooperation agency) . There is thus, an immense need to launch intuitive in the area of entrepreneurship to poster any entrepreneurial talent and potential that may be present or to stimulate and initiate entrepreneurial activity though out the country. (Source: small scale enterprise and entrepreneurship dev’t in Ethiopia)

DEFINATION ENTERPERNERURSHIP

Different authors have come up with much definition on entrepreneurship emphasizing its different facts and stages of development.  Clearly there is no consensus reached as to the precise definition of the term entrepreneurship. How ever, the following definition may be taken as the bases for our study.

Entrepreneurship is the process of identifying, developing and bringing a vision of life . The vision may be an innovative idea, an opportunity or simply a better way of something. The end result of this process is the creation of a new venture formed under conditions or risk and considerable uncertainty.

Many authors have defined entrepreneurship emphasizing on a wide range of activities such as the creation of organization, the carrying of anew combination, the exploration of opportunity, the bearing of uncertainty etc. The following are some of the definition.

1. Richaro Cantillon( 1730) defined entrepreneurship as self employment of any sort entrepreneurs buy goods at a certain price and sell them at uncertain prices after some  times, hence bearing the uncertainty of price fluctuation.

2. Robert Ronstadt– defined entrepreneurship as a dynamic process of creating incremental wealth is created by individual who assume major risk in terms of equity, time and ( or career commitment of providing value for some product ( service). The product service) by it self may or may not be new or unique but value must be some how infused by securing and allocating the necessary skill and resource.

3. Joseph Schumpeter (1934) portrayed entrepreneur as an innovator who implement change with in market by carryout new combination of various factor and conduction prevailing in one particular economy. These new combination may take several forms 

 Viz:

• Introduction of a new product
• Introduction of a new method of production
• Opening of a new market
• Discovering of a new source of supply/ material & parts.
• Bringing out a new organizational structure
• Bringing in new technology.

4.  Vasant Desal : Describes an entrepreneur as one who detects and evaluates a new situation in his environment and directs his conscious to make adjustment in the economic system as he  deem necessary , He coneives of a business enterprise for the purpose , display considerable initiative and diamination in bringing it to fruition and in this process, perform one or more of the following.

I.  Perceives opportunities for profitable investment

II. Explores the prospect of starting such a manufacturing enterprises

III. obtaining necessary industrial licenses

IV. Arranging initial capital

V. Providing personal grantees to the financial institution

VI. Promises to meet the short falls in the capital

VII. Supplies technical know –how.

Source: Hodgetts, Richard, entrepreneurship A contemporary Approach 1998.

2.2. Economic Significance of entrepreneurship

The role of entrepreneurship in economic development involves more than just increasing the per capita out put or per capital income. It involves inflating and constituting change in the structure of business and society. In turn this change is accompanies by over all economic growth and increased out put. One theory of economic growth defects innovation as key, not only in developing new product or service for the market but also in stimulating investment interest in the new ventures that are being developed.

In spite of the significance of investment and innovation in the economic development of a nation, there is some times lack of understanding of the product evaluation processes. This is the process through which innovation is developed and commercialized through entrepreneurial activity, which in turn stimulates economic growth. The innovation process can be of varying degree of  uniqueness most innovations process that are introduced to the market are ordinary innovation i.e with little uniqueness or technology , each innovation involves in to and develops to ward commercialization through either the government, corporate entrepreneurship or an independent entrepreneurship.( Donald . F and kutatko, Entrepreneurship in cotemporary approach, 4^th edition)

For further economic advancement, one recent micro economic approach to economic growth in the promotion of entrepreneurial activities. Entrepreneurial effects have been found to generate a wide range of economic benefits, including new business new job, innovative product and services and increased wealth for further community investments.

An entrepreneur is a catalyst who plays a pivotal role in developing economy, Ethiopia being not an exception, Thus entrepreneurs.

• Create job opportunities
• Ensure better production method and product.
• Identify of business opportunity and markets
•  Conserve  natural resources
• Abolish monopoly and enhance competition
• Development of complementary goods/ services
• Increment of per capital income and out put.
• Ensure batter utilization of scrap materials
• Generation of foreign reserves Source M.Kurakto, Donald. F 4^th edition 1998.

2.3. Women’s empowerment and there Access to resource in

    Ethiopia.

In Ethiopia, women contribute a lot of the family’s and the community well being an equal access to basic resource . Ethiopian women’s have limited bargaining power to enhance their control over resource, both with in their family and with in the community at large. In addition to limit access to resource, a woman in our country earns less than men. This low earnings are limited access to resource make the opportunity to invest very low which in turn make women’s the one that are dominate in the informal urban economy and rural agricultural production. Women  participate in higher status of job ( such as in management , teaching in  higher institution , in medicine , engineering etc) remain very low, with women significantly under represented in the senior position and clustered in industries and occupation that are segregated by gender.

International labor organization report of 1997 regards women participation in various organization progress status ,almost universally, women have failed to reach leading in major senior position… irrespective of their ability women generally fare best in industry’s employing large number of women, such as health and community service and the hotel and clearing  industry. Participation of women steel concentrated in teaching, health care public welfare and communication . Occupational segregation of women in a certain profation or occupation in considered to be lower associated with lower level of position , payment and compensation  women mostly occupy all clerical position and their strength is confined to traditional female job such as nursing health  technology , elementary and secondary education , liberation and social work.

There are many constraints on participation of women in the work place. This conduction of the participation of women in different organization and institution have their origin in the traditional interpretation of socio-cultural attitude and the gender division of labor between the sexes.

As human kind from hunting and gathering to agrarian society , then in to industrial  base urban cultures the traditional  concept of division of labour did not change much women were expected to persive the health and home man were expected to  explore the external world and straggle for the  family’s existence. Source: ( Azmera Mebrahten, women labor participation and their significance in the over all labour force  1996) .

2.4. WOMEN EMPLOYEMENT OPPORTUNITY AND MAJOR

      CONSTRANTS

Development has to be a total in nature any development which marginalized female (50% of the population remain fragile) Heance to attain sustainable development , the political economic culture and social conditions of women have to be the integral part of the over all development program of any nation accordingly women’s reinprcement impact ( positive) providing an opportunity will have the over all economic social and political development of the country. Women constitute half of the population how ever, they do not command an equal shair both interms of employment opportunity and not resource shair specially in the least developed country. The main reason for these lower participation can be social, political cultural, and religious factors ( Alemayehu,economc focus , 3^rd edition ).

The main factor that faced women labour participation in the formal economy and social sector to be low are given below.

I. EDUCATION

Education for female is an investment that builds the human capacity and contribute greatly to productive and efficiently specially female literacy will substantially reduce fertility and increase their capacity. This mean that women’s education minimize socio economic problems. There fore the life conduction of women education must be taken as an important first step. How ever, the social enrollment of women in most developing countries in very low and 75% of Ethiopian women are illiterate. In addition to low enrollment in scholar, there is a high rate of female in Ethiopia. The possible reason for low enrollment and high rate of drop out of  female from school can be early marriage , heavy domestic work and low income their family .

II.  SOCIO CULTURAL AND PSYCHOLOGICAL FACTORS

Traditionally and specially in our society, female are associated with the status of mother and home based workers . In Ethiopia, there are conditions that are against the social value of women in turn affect their psychological make up. Studies and analysis of women culture and society indicates that the most part of the country female are considered inferior to men. The following question supports the above argument.

“In Ethiopia, there is explicit devaluation statement, of women, symbolic device such as attribution to defilement , ( manstration child birth)social structural arrangement that exclude women from participation. ( Teshay, 1992 Gender issue in Ethiopia ).

III. SEXUAL  HARASMENTS

Women’s development , employment and proportion  are mainly affected by sexual harassment .It will be important to defense what sexual harassment is before proceed to its situation in Ethiopia and its adverse impact on women active participation in socio- economic life of the society . Accordingly Sexual harassment can be defined as “ un solicited non reciprocal male behavior that asserts a women sexual role over her function as workers”( Azmera, women Labor participation ).

2.5. PROBLEMS OF WOMEN ENTERPRENUR

Women play different roles and hold different status in the society and face several problem as female business owners it is suggested that women entrepreneur  face greater problem because of particular socio economic barriers. Most potential and existing women entrepreneurs face certain obstacles that are common to entrepreneur in general such as lack of capital insufficient entrepreneur, managerial and technical training and experience economic and technological problem. However this problem may be backed up by additional factors which have an impact on women more than men. The major constraints faced by women entrepreneur to start and manage business, are the cumulative mainifestation of various charactertics expressed in terms of economic, social , cultural & political environment.

A CUTURAL NORMS AND ATTITUDES OF SOCITY

Society have attitude of women, directly or indirectly hinder women’s activity in business sector . Society holds allow esteem for women in business and she is attributed low value not only by men but also women . This perception of women’s task in a society and community as un productive and discrediting their effort and work is a critical factor in undertaking the female labor force.

One of the most barriers of women’s entry and success in business is that values, abilities and role of women at work are often kept in side and not expressed by women themselves. Overcoming society’s belief bussness similarly in ather studys conducted , women entrepreneur stated that they were brought up by their parents or ather to believe that men are batter and more important and that are ultimate role in life for women is to be a wife and mother . Society does not always accord business  women the same esteem and competence they, accord to which in addition , female owning enterprises in sectors which are most of the time male dominated encounter greater constraints due to resistance, discrimination etc. ( C.Vonder wees and H. Ronjin, 1997 ).

B. VOCATIONAL EDUCATION AND TRAINING

Vocational education and training provides a means of facilitating the entry of women in to higher level and wider range of jobs including broader opportunitys for self employment. the purpose of vocational education and tranning is to have skilled and technically  qualified man power to different sector of the economy. it has been observed that the struacture  of female labour force is geared mostly in non technical occupation , mainly in the service sector.

            One serious obstacle is that enrollment of female students in institution based on technical training program is usually less than that of male students women entrepreneurs skill has an important bearing for the work experience they acquire and the type of business they engage in . Thus if women are restricted to training and work experience in a narrow range of occupation, the business they set up will tend to be in productive area which has small potential for growth and income generation. ( C. vonder wees, 1997 P.78) .

C. FINANCIAL FACTOR

            Women have the difficult in acquiring the major and critical resources most frequently, women entrepreneur do not have an easy access to credit or obtaining bank loans due to several factors. The financial institution are not responsive to women owned business due to seize and nature of business organizations women are usually found in very small enterprises and need small loans which are viewed as un profitable by the bank and financing institution since high administrative costs are associated. ( Miti Tesgaye, women entrepreneur in Ethiopia, 1998  )

CHAPTER THREE

3. DATA ANALYSIS AND DISCUSSION

This section presents some of the most important finding concerning women entrepreneurs in different sector of the economy in bahir dar town, problem, opportunity and challenges investigation has been conducted thoroughly on women entrepreneurs. The examination focused on different issue like problem, opportunities, social views and attitudes educational back ground and many other aspect.

An interview was conducted to go to deep and clarity answer given by women entrepreneurs. An interview is conducted on 45 women entrepreneurs randomly from the total population.  These section contain the analysis from which related and relevant conclusion will be drown from the data.

3.1. BACKGROUND AND EDUCATIONAL LEVEL OF WOMEN

  ENTERPRENEURS

Women entrepreneurs in bahir dar town have different educational and also different occupational  back ground . The result indicated that those women entrepreneurs ranging from a student, employee in affirm, or from unemployment . As we have to know that, effectiveness of an organization can be measured by the availability of good organizer and decision makers.

Table 3.1. Educational level of women entrepreneurs.

No	Educational level of women entrepreneurs	Respondents
		Number	Percentage (%)
1	Below primary education	2	4.44
2	Primary education	5	11.11
3	Secondary education	7	15.56
4	Post secondary  diploma	18	40
5	Degree	9	20
6	Above	4	8.89
	Total	45	100

 Source:-  survey data

The above data indicated that about 18 (40%) of the women entrepreneurs have a post secondary diploma and 9(20%) have degree in different field of study . These indicates that women entrepreneurs have a good level of efficiency in operation since they have a wider  exposure , experience and as the result are able to analyze things . But these can  not be the  only criteria of evaluation of women entrepreneurs .

 4.2 MOTIVATIONAL FACTORS FOR WOMEN ENTERPRENEURS (open ended question)

Entrepreneurial action are most often intentional, not accidental.  Such intentions capture the motivational factor that influence entrepreneurial ability, indicating how hard an individual is willing to try and how much effort she is planning to exert in order to carry the new business venture.

 

How do you become entrepreneurs?

From the observed data the question how you become an entrepreneurs and the motivational factors that inter in to entrepreneurial activity were generalized that.

• Wealth creation and profit seeking attitude
• A desire and look for a better living standard and better satisfying away of life.
• The desire to make one own decision and independence in the operation of their life.
• Escape from the Authority of other or the need of independence.
• The avuablity of financial as well as technical potential to accompanish the entrepreneurial activity.
• Find out pressure and satisfaction from the work that can be performed by herself.
• Achieving a higher status in the society and an intention to create new things.

i) PROFIT  SECKING  ATTITUDE

Entrepreneurs are risk takers in investing their time and money operate the business.  Profit is a reward for assuming these risks.  The ultimate purpose of entrepreneurs is wealth creation along with other motives.  The women entrepreneurs in this case more or less earn profit and thus profit is a motivation to engage in a business and operating it.

ii) SATSFING AWAY OF LIFE

From the data about 25 women entrepreneurs It account 55.5% of the entrepreneurs notes that achieving a higher status in society was a good motivational factor. In addition to these entrepreneurs descries and look for a better living standard and thus a better life good living standard assumed by women entrepreneurs as a major motivational factor to enter in to entrepreneurial activity.

iii) ESCAPE FROM AUTHORY OF OTHERS /INDEPENDENCE/

From the observation 33 women entrepreneurs it accounts 66.66% out of the total population, independent was one of their motivational factor to become an entrepreneurs.  This shows that the desire to make one own decision and independence in there operation of their life.

iv) PERSONAL INTEREST

Entrepreneurs are those who believe in ability to accomplish what they set out to do. Women entrepreneurs are mostly happy when they are performed tasks independently in the work and find pleasure in what they  for.  As a result of the study shows that 33 women entrepreneurs notes that personal interest in one from other factors to become entrepreneurs.

3.3 Major line activity that women entrepreneurs

The major line Activity of women and their work experience prior to start there entrepreneurial activity.

Table 3.2. The major activity and their work expanse prior to start the business working in.

No	Major line activity that women entrepreneurs takes	Respondents
		Number	Percentage (%)
1	Manufacturing	5	11.11
2	Construction	8	17.78
3	Trade	25	55.56
4	Transport	5	11.11
5	Others	2	4.44
	Total	45	100
	Work experience prior to start the business working in
1	Employee in affirm	6	13.33
2	Student	18	40
3	Un employed	16	35.56
4	Share holder in other firm	2	4.44
5	Others	3	6.67
	Total	45	100

Source, from the survey data.

The above table shows that women entrepreneurs with in the town perform different tasks like, manufacturing 5 (11.11%) constriction   8 (17.78%) , trading activity 25 ( 55.55%) Transport 5 (11.11%) and some other activity it accounts 2 (4.44%) of the total women entrepreneurs.

Before entry to entrepreneurial activity, women engaged in different area of participation employee in on other firm it account 6 (13.33%) from  student ( it is the larges of women entrepreneurs that  involve before start the business18 ( 40%) , from unemployment 16 (35,55%) share holders in others firm 2 (4.44%) and others occupation 3 (6.66%) that women entrepreneurs involves.

MAJOR ACTIVITYS OF WOMEN ENTERPRENEURS

Table 3.3. Major line Activity of and types of business for women Entrepreneurs.

No	Types of business that  women engages	Respondents
		Number	Percentage(%)
1	Proprtorship  type of business	30	66.67
2	Partner ship business	13	28.89
3	Share company	2	4.44
4	Joint venture	-	-
	Total	45	100

Source from survey data.

           

The major line activity that women entrepreneurs undertake are different according to women personal interest that engaged with in.  The form of enterprises that perform women entrepreneurial activity that participate in the town.  From the survey data, about 30 women entrepreneurs that account 66.6% of the total women entrepreneurs participate in proprietary types of business. These indicate that most of women entrepreneurs own their business and administered themselves.

3.4 SOURCE OF CAPITAL FOR WOMEN ENTERPRENEURS

Women entrepreneurs acquire the entail and working capitals to start their business are from different sources.  The main source of capital to start up a business operation identified by women entrepreneurs are,

• Own saving
• Loan from financial institution
• Contribution from family
• Contribution and assistance from friends

Source from survey data

Fig 3.1. Source of capital for women entrepreneurs to start Entrepreneurial activity.

Financial source

Key:

A Source from own saving

B  Families and friends support

C Financial institutions

D other sources of finance

From the observed survey data, it had been identified that almost 20 women entrepreneurs ( it accounts 44.4% ) of the total population get their working capital from financial instruction .  These indicate that most women entrepreneurs are users of financial institutions as a source of finance for  start anew business even it have some problem with in.

How do you evaluate the loan payment period, the interest rate and the collateral requirement?

Table 3.4. Evaluation of the loan payment period, the interest rate and collateral requirements.

	Description	Number	Percentage
	How do you evaluate the loan payment period
	Land	6	30
	Average	5	25
	Short	9	45
	Total	20	100
	How do you evaluate the collateral requirement
	Reasonable	8	40
	Un reasonable	1	5
	Discouraging	11	55
	Total	20	100
	How do you evaluate the interest rate
	High	12	60
	Average	6	30
	Low	2	10
	Total	20	100

From the above data, women entrepreneurs who have initial capital from financial instruction explained that, the procedure to get the initial working capital took long time –Not all entrepreneurs but 11 (55%) out of 20 women entrepreneurs who have the use of financial institution as a source of working capital suggested that “the collateral requirement is not easy to undertake the required capital “ . It also explained that “the loan payment period is low and the interest rate charge is quite high.”

Banks that included both private banks and commercial government banks are interested in short term loan, even if those women entrepreneurs who have borrowed money from bank stated that “The period of repayment was low and interest rate is high” thus long term borrowing is not accessible to the entrepreneurs in the town . As respondent said “The repayment period should be fixed according to the project reproductive cycle and banks has to be there fore take in to consideration the different condition and circumstances forced by those women entrepreneurs”

These show that the loan repayment period have to be flexible and allow relatively long period to meet credit loan.

Not only these but also women entrepreneurs identified that the interest rates are high . These imply that, if the women entrepreneurs are charged a high interest rate, they won’t be able to achieve or realize their potential to development. Although acceptance to get loan collateral are relatively reasonable high interest rate and low repayment period are real barriers to undertake and achieve the purpose of organization.

The small scale enterprise would not be to meet their obligation and even if they do, their would not be much left to advance and support their business that is straggling to survival when the interest charge is very high . So that, if would stay in the market . The respondents highly suggested that.

“The development of small scale enterprises need special attention, commitment and support by banks to establish conductive environment and support fast promotion of small scale enterprises because they follow growth track ”.

3.5 MEANS OF AQUIRING SKILL IN BUSINESS

Women entrepreneurs has acquired the basic skill, like managerial technical and marketing which contribute a lot to  carry out business effectively and efficiently  through  different  training and other means of education . Because of the requirement of those basic condition women entrepreneurs get those skill form different perspective.

Table4.5. Means of acquiring skill for women entrepreneurs

No	Means  of acquiring skill	Respondents
		Number	Percentage (%)
1	Training	11	34.44
2	Experience	10	23.22
3	Education	20	44.44
4	Naturally	4	8.89
	Total	45	100

From the data vocational education and training provides a means of acquiring and facilitating the entry of women in entrepreneurial activity. 20 women entrepreneurs which accounts 44.44% of the total population acquire this skill from education and 10 women entrepreneurs from experience from previous engagement. Training also have the main means of acquiring those skill it accounts 34.44% of women entrepreneurs get entrepreneurial talents from different training  program.

3.6 THE MAJOR PROBLEM OF WOMEN ENTREPRENEURS IN   RUNNING OF THE BUSINESS

Different constrains that can limit the scope of new opportunity and active involvement of women entrepreneurs in different area of activity’s.

However these constraints should be over come and should not be an obstacle that forever blocks the way. The presence of these problem supplies the potential women entrepreneurs to participate in various economic activity and easy to access to productive resource like credit and the like . Among the major problem that women entrepreneurs faces are include.

i. DAMOSTIC RESPONSIBILITY OF WOMEN

Most of women entrepreneurs have family members and those families require support from those entrepreneurs.  Those entrepreneurs as a mother, a wife and income generator in the family. Not all but most of women entrepreneurs have a great responsibility to support family members. How ever the typical problem of women entrepreneurs faces is the family responsibility to cope up with it.

These shows that, women entrepreneurs face equal responsibility in both domestic and business operation. There have to allocate their time realistically since  both the family as well as business need in different  attention.

A successful entrepreneurial venture require not only  a commitment of money , knowledge skill and energy but it require time and emotional commitment . As an entrepreneur, the women has to devote a lot of time at work and also out side the normal working hours even if women entrepreneurs having one’s business has it job satisfaction like giving  job opportunity to the society but there are also some disadvantages .

( Source, Annual report of women Affairs office of bahir dar town ).

The respondents notes that “ As a mother , the entrepreneurs has to spend time with her children and some  times travel long distance or stay up late at night in the office”. From the observed data women entrepreneurs need to be more organized and programmed way of operating their activity.

The women have to keep the balance between those two sides. (Both domestic responsibility and business operation ) . According to the survey data,18 women entrepreneurs, it accounts 40% of the  entrepreneurs explained that, “ family problem interfere with the work . Only 8 women entrepreneurs notes that their family are not any effect on due run of the business. The remain women entrepreneurs states that it have a considerable effect on perform the business.

ii) SOCITYS ATTITUDE TOWARDS WOMEN ENTERPRENEURS

As a respondents identified that ‘there are stereotypical requirement imposed both religion and culture. These requirement imposed by culture and religion are barriers to the freedom of women in doing what they want to do. Almost all women entrepreneurs explained that “the current economic policy create effective freedom of women entrepreneurs participation in any entrepreneurial activity and affordable to make new venture. However the existence and availability of infrastructural facility is not sufficient.”

As respondent notes that “societies attitude towards women business are the major factor that contribute to a secondary status compared to men” 5 women entrepreneurs it accounts 11.1% of the total population explained that” Generally  the society as well as men entrepreneurs have negative attitude towards women entrepreneurs “ It is because they are really incapable of doing what they have preserved in mind.

What is the attitude of societies towards women entrepreneurs?

Table 3.6. Attitude of society towards women entrepreneurs.

Attitudes of the society towards women entrepreneurs	Respondents
	Number	Percentages
1. Positive attitude	38	84.4
2. Negative attitude	5	11.11
3. Indifference between the two	2	4.44
Total	45	100

The women entrepreneurs asserted that society’s attitude towards business a woman depends in the circle of people you are in and work. Educated people with in the town believes that both male and female  business man or business women are equally  even their have positive attitude to those women who is participate in entrepreneurial activity. The women entrepreneurs have also observed from their own experience that  “ some parts of the society have less value for business women “ they do not respect and encourage them for the work  performed” . It is simply that is the job done less worthy just because the person is a female.

These show that the society is inclined to upraise and appreciate business activity under taken by men 5 women entrepreneurs it account 11.1% of the respondent said that “male business man wants to take  advantage of the situation because the person is a lady” these show that the  society is not open and broad mined- women entrepreneurs have less acceptance in the society as compared with male rather those have Negative attitude for alley.

Which one of the following problem is typical to women entrepreneurs in the town?

 

Fig 3.2 typical problems of women entrepreneurs in bahir dar town.

From the analysis (observed situation) 30 women entrepreneurs that is 66.67% explain that “Financial problem is the most among the other significant constraints in operation of the business” and 10 women entrepreneurs (22.22%) market problem , 6.66% land acquisition problem and 4.44% stated some other problem like family and personal problem were identified.

3.7 ADDATIONAL PROBLEMS OF WOMEN ENTERPRENEURS

What are the challenges and some other additional problems that women entrepreneurs faces in running your business?

From the data respondents explained and suggested the following additional problems.

• The existence and availability of undesirable bureaucracy in some organization.
• Lack of suitable and comfortable operating environment to operate the business and unsatisfactory business climate.
• The absence of suitable motivational and productivity for planning with in business operating climate.
• Land acquisition process has been area constraints to their entry in the business operation.
• The absence of conferences and discussion that help the organization that deal women entrepreneurs and their related challenges.
• Insufficient availability of infrastructural facility’s it consists of transportation, power (energy) and communication.

A   AN EXTREME BUREAUCRACY

Most organization rely on bureaucracy to insure that work is accomplishing effectively by removing error, by reinforcing conformity and obedience organization structure which is the design of an organization including a number of units division and subsidiaries and  what is does  and it  responsible for . But in reality the case is that bureaucracy structure made unstructured problems salving more difficult and even some times impossible.

An extreme bureaucracy is undesirable and an obstacle in undertaking entrepreneurial activities from different perspective dysfunctional bureaucracy structure obstacle to reaching the goal. This kinds of bureaucratic structure limite the  alternative way of achieving the objective that can be taken . These kinds of bureaucracy activity obstacle and take a lot of time to do some thing.

From the survey 25 women entrepreneurs it accounts 55.56% from the total population explained that “The current economic condition enabling these condition, the positive aspects were  the opportunity to use the latter of credit , reasonable tax, freedom to engaged in any types of business? This indicates that the government take an action that encourage women entrepreneurs participation and it create positive economic development. However there is stile some problems were identified in due process of business. There are requiring some changes to come up with effective run of business.

B.  LACK OF SUTABLE OPERATING ENVIROMENT

Comfortable and suitable operating environment helps to the organization exist with effective and efficient manner. any organization exist in an environment . Environment is an essential for developing any business operation. In the absence of suitable work environment, there is no motivation and productivity any decision making and strategic planning with in the organization operate with in the environments.

Special environment must require to perform an entrepreneurs uses their potential talents and effects on business operation proper environmental scanning must require for function and operation properly their most be  favorable regulation, directive and law from various government and non-governmental agency’s.

How long did you want to get land to your operation?

Source survey data

Fig 3.3 the length of time to get land for business operation

From the data above, it is required to long time to get lands to investment 10 women entrepreneurs is accounts 22.2% , explained than if we want to land for investment, the time required is less than 6months bat 20 out of the total population it accounts 44.4% states that “ it require six months up to one year 6.6% of entrepreneurs asserts that these requirement extends to more than 2 years. But all entrepreneurs hotels that if the requirement is suffercent the land is given to the entrepreneurs at the end.

The provision of land on an investor is very essential but from the observation women entrepreneurs notes that “land acquisition process has been a real constraint to their entry in to a business operation. This practice down the contribution of women entrepreneurs business institution and the policies formulated should be supportive to enterprise to the variability and growth.

The role of women entrepreneurs business is essential and should have active role in identifying problem and thus give advice and guidance to those who need it. But the entrepreneur said that “ there had never been any conferences and discussion that help the organization that deal with women entrepreneurs problem and to give corrective action.  As some other business man, women also have some problem in through process of their business so conference discussion are an essential  tool to solve their problem.

As a respondents clearly identified that “ the current economic policy has created enabling condition of operate one’s business” government give a litter of credit for a business people.

CHAPTER FOUR

4. SUMMARY, CONCLUSION AND RECOMMENDATION

4.1. CONCLUSION

This research is shows that even though there are a problem prevailing in the economic system as well as social, conductive working environment are fostered and thus a bright and promising future is awaiting potential and existing women entrepreneurs in the town. It is clear that the Ethiopian economy is moving towards market oriented and the private sector which also includes women entrepreneurs has to take the major role in economic development. However, obstacle faced in reaching these goals has to be minimized. An attempt has been made to identify the problem related to women entrepreneurs from  different aspects. It can be concluded for the findings some of the major problem faced are.

v  The need for change in the attitudinal source of society towards women entrepreneurs

v  Lack of sufficient training and experience in relevant activity’s

v  Lack of capital

v  Lack of sufficient infrastructural facilities

v  The presence of an extreme bureaucracy in some area of operation

This research finding contributes and attempts has been made in order to clear out the major problem related to women entrepreneurs, opportunist that an entrepreneurs expect and related challenges.

4.2 RECOMMENDATION

The presence of conductive working environment has to be essential for the creation and development of entrepreneur’s activities.  Those conductive working environment has to be established to that meaningful and practical change occur in the  economy of the town . to minimize the impact of those problems some Idias  and suggestion   were forwarded.

1. To satisfy the interest of sustainable growth and development, the respective party do not focus only in economic factor . It is the other factor that limit the smooth growth and development but consideration of social factors should be taken in to account . From those social motives and values, education and some other concepts.

2. women related organization should be organize seminars workshop, training program through which several women entrepreneur can help and learn from one from the other . It is clear that training plays pivotal role to increase the efficiency of entrepreneurs. Those training activity must be provide appropriately with required women entrepreneurs according to their  training gap between the actual requirement with potential one . Because training have a potential to close the gap of operation.

3. It is the responsibility of government to make the situation favorable to undertake business activities. Appropriate formulation of business policies that encourage and considering the need of women entrepreneurs and appropriate from work that possible entrepreneurial activity. By providing the basic need like roads, transportation, electricity, telephone water to the difference areas with in the town.

4. The coordination of government with financial institution in addressing the barriers that limit women access to credit. Governmental and non- governmental organization channalize with resources to women entrepreneurs. Banks and other financial institution should establish credit garante schemes to encourage the potential  and prospective women entrepreneur to benefit from their service by giving essential information towards access to credit and practical assistance provision to various support.

5. The financial instution should revise their policy and establish policies that enable women entrepreneurs benefited from their services.

6. Encouraging formation of credit union, financial companies and demobilizing and expand private sector of the bank system.

7. Since credit by itself is not enough to help women to archive higher productivity, it should be complemented y other forms of support such as marketing, training facilities, extension advice and regular monitoring.

8. One remedy to social problems as well as stagnant economy could to invest in human resource development . With out education, it would be difficult to assessing the technology and support competition, Thus government should redirect resource to education

9. Different women entrepreneurs association has a great role to play in supporting and encourage the women entrepreneurs . Those association should be an active participate in up grading their business and assess in problem identification and means of solving it.

References

1. Alemayehu Geda, (2000).  Economic Focus Value 3 No 3 Addis Abeba,
2. Azmera Tesfaye, (1998).  women Labor participation and their significance in the over all labor force, 1998.
3. Catherine Vondeer wees and henry Ronjn, (1987). Enterprise and small enterprises development for women in developing countries : an agenda of unanswered question international  labour force management development branch Geneva 1987
4. Donald F. Kutatko and Richard M.Ho agetts, (1998).  Enterpreneur ship . Acotemporary approach 4^th Edition ,
5. Hirsh  Robert D. and peter Michale P. (2002).  Enterpreneurship, 5^th edition , Tata Mc Graw Hill edition ,
6. Holt  F. David H. (2000). Enterpreneurship New Ventur creation  Eastern economy edtion ,
7. Hayat Adbulahi , (Dec 1997). Constrants to women entrepreneurs in the informal sector the case of traders in Addis Abeba Economic focus , Volume  1,
8. Johannes Kinfu, (1995). Education and Enterpreneurship a Development role and effect on education in entrepreneurship dev’t paper presented at apreceeding of the annual conference on management in Ethiopia Addis Abeba,
9. Konjit  Kefetew (1995). women Enterpreneurs in the trade sector in Ethiopia prospects and challenges, Addis Abeba Ethiopia ,

10. Kartirk , royetal ( 1996) Economic development and women in the world community.

APPENDIX

INTERVIEW QUESTIONNARIES

1. Name of the Bussness_____________________________
2. What is the form of the bussness?
1. Proprietorship_______________________
2. Partnership_______________________
3. Shari company_____________________
4. Joint  venture______________________
3. Education level of the entrepreneur
1. Below primary school ____________________
2. Primary school _______________________
3. Secondary school ______________________
4. Post secondary diploma______________________
5. Degree ( specify) _____________________
4. When did you start your business?

___________________________________________________

5. How much was your initial capital

__________________________________________________

6. What is your major of activity of your business?
1. manufacturing ________________________
2. constriction ________________________
3. Services___________________________
4. Transport ____________________________
5. Other ( specify) _______________________
7. How did you become an entrepreneur?
8. What was your work experience prior to the start of your business?
1. employee in a firm_________________
2. student________________________
3. unemployed_______________________
4. share holder of another firm___________________
5. other specify____________________

9.  Did the current economic policy create enabling  conditions to

     operate your business

            a. Yes _________________    b./ No _________________

10. If Yes, in what areas of aspect? ___________________________

11. How long did you want to get land to your operation

           A. less than 6 month ___________________

           B. six month to one year _________________

           C. one year to two year_____________________

           D. more than to year _______________________

           F. never get land so far______________________

12. How did you get your initial and working capital ?

           A. family members (friends) ____________

           B. financial instructions ___________________

           c. Own saving ________________________

            D. other specify _____________________  

13. If you got your initial and working capital from the bank, how long

     did the procedure for approval take ?

a.       less than there month ____________________

b.      three to six month ________________________

c.       once a Year_________________________________

d.      more than one year___________________________

  14. How do you evaluate the collateral requirement of the banks?

           a. reasonable ______________________

           B. unreasonable _____________________

           c. discouraging_______________________

  15. How do you evaluate the loan payment period

             A. long ______________________ B. average ________________

             C. low ________________________

  16. How do you evaluate the interest rate?

            a. High _______________ b. Average ____________

            c. low____________________

  17. Basically an entrepreneurs need managerial technical and

        Marketing skill to carry out his/ her business effectively . Do you

         have these capability ?

                A. Yes ___________________ B. No _____________________

18. If yes, how did you acquire these capability?

       a. Training __________________

       b. Experience _________________

       c. Education ___________________

       d. Naturally _______________________

       Other ( specify) ________________________

19. Have you ever been exposed to any training

       Yes ___________________ b. No _________________

20. Were these training related or relevant to your business

          a. Yes ____________________ b. No________________

21. If yes, can you site them?

        __________________________________________________________________

      

22. Do you think you need further training?

          a. Yes _____________________ b. No ______________________

23. If yes, where do you think you can get it?

         ______________________________________________________________

    

24. How do you characterize your business activity ?

        a. As a duplicator of new or existing business______________

        b. As an innovative to the society ____________

25. How do you evaluate the existing status and availability of

      Infrastructure facility  possible ?

       A. Sufficient _____________  B. Not sufficient_____________________

26. Are there resource available and affordable to make anew

        Venture possible ?

        A. Yes _______________ B. No _______________

27. Are you make a profit?

28. How do you spend your profit?

        A. on families _____________

        B. to expand your business__________

        C. other specify _______________

29. is there computation in the sphere of your business?

               A. Yes ____________ B. No ____________

30. Have you got any plans for expansion? If so in which area

       _____________________________________________________________

     

31. Are you satisfied with the business climate you are in ? why

       _______________________________________________________________

     

32. Which one (s) of the following problem do you think are typical to

      Women entrepreneur

          A. financial problem that is raising funds

          B. market problem

          C. foreign exchange problem

          D. land acquisition

          E. family responsibility in addition to business responsibility

         F. other specify_________________________

33. What do you think are the solution to the problems you identified?

        _______________________________________________________________

34. Has their ever been any conference that helped your business in

      Dealing with women related problems?

35. What are your plans in the future?

36. A. How many family members do you support/ _______________

      B. what is your relationship with them

                       A. husband /wife_____________

                       B. mother _______________

                       C. immediate family _______________

                       D. Other ________________

    c. are their any member contributing her? his income?

 37. Do you family problem interfere with your work

          a. Yes ______________ b. No _________________

 38.  If yes, how do you deal with this problem?

       ___________________________________________________________________

    

     ____________________________________________________________________ 

 39. Are you satisfied with your family work relation ship?

      ____________________________________________________________________

    

 40. Do you often attribute your success and failure to yourself?

              a. Yes _________________ b. No ______________

 41. Do you think there are any stereotypical requirements imposed on

      Your by religion or culture?

      ____________________________________________________________________

    

42. Do you approve of these requirements? Why

      ____________________________________________________________________

    

43 What do you think of educated women?

      ____________________________________________________________________

    

44. What is the attitude of the society towards women entrepreneurs?

      ____________________________________________________________________

45. What are the challenges you face in running your business

      ____________________________________________________________________

    

46. What are the future opportunities or prospects of women

      Entrepreneurs in the town?

      ____________________________________________________________________

    

47. What are the recommendation you suggest that should be  fulfilled

      by the government in order to motivate and increase work of

      Entrepreneurship?

      ____________________________________________________________________

    

                                             CHAPTER ONE

1. INTRODUCTION

1.1.            BACK GROUND OF THE STUDY

Like most developing countries, Ethiopia is a country where by a sizable proportion of its population lives in absolute poverty. In 1992, out of estimated 50.8 million Ethiopians, 60% of them live in absolute poverty, (WDR, 1994). Its socio economic situation for the last two decays is characterized by low level of economic growth, high population increase, drought, famine rural to urban migration civil unrest and so on. The Gross National product ( GNP) per capital of Ethiopia amount to only USD 110 in 1992 with an average growth rate of 1.9% since 1980 ( WDR, 1994). The poor performance of the economy has results decline of real wage share rise in the level of unemployment and an increase in the level of poverty the most seriously affected women , young people and the aged owing to  their relative weak economic situation.( Todaro, development Economics 2003 )

Although even if women have covered half of the population, they are the bottom of the ladder in terms of employment, education and economic status. That means potential, education to be suppressed, owing to some persisting major constraint hindered the participation of women in social and economic activities or access to resource.  Another problem is related to access to productive resource characterized women’s income.  These include lack of funding possibility and adequate access to credit. The social and cultural attitudes are also a major factor that put women in secondary status Vis-a Vis man in social economic and political life.

Lack of adequate level of education and training is another factor that contributes the discrimination of women in society. According to WDR, (WDR, 1994) only 21% of the female are enrolled in primary school, 11% in secondary school and 1% in tertiary level in Ethiopia. (Azmera , women Labor participation 1996)

Traditionally, women are involved in productive, reproductive and community roles. But women are a backbone of the society and are active participant in any micro and large Entrepreneurs activity which are given little consideration. Because of the deep rooted socio cultural practices and their low educational status, women have limited access to participate in any entrepreneur activities, institution and formal organization usually they participate in informal activities such as serving as a house hold maids, bartending (Prostitution and petty trading) all of such do not which need capital or basic education.

Bahir Dar is the capital city of amahra national regional state, which approximately 2million people live within the city in spite that women make up more than 50% of the population the participation and skill of women has to be enhanced for effective development of the country.

The Ethiopian government has made a broad policy oriented to introduce market economy in Ethiopia for the past few years certain measures are out lined for long term growth. This also include the wide participation of women , in promoting favorable initiative and measure for development of entrepreneurship we have to identify and understand the unique features and problems of women entrepreneur particular micro and small enterprises are important for women.

1.2 STATEMENT OF THE PROBLEM

The Ethiopian women have important responsibility regarding food, Agriculture and any other sector of the economy. (Azmera , women Labor participation 1996) They are also engaged on industrial sector as well as the service sector. However due to several factors which include;

·         Operatives cultural attached of the society and women themselves assenting the capability of women in business field,

·         Low availability of capital,

·         Lack of access to financial and credit access,

·         Women have not been fully accorded the attention and importance they deserve. In the past years in many developing countries,

There was a high need for the development of small enterprises. But it is recently that issues and questions are used concerning promotion and enhancement of women entrepreneurs engaged in micro and small enterprises.

Absence in the analysis and effectively studied of  women related issue leads to assume that women are motivated by the same  element and seek of similar reward for undertaking entrepreneurial activity. Never the less, self employment is a means to achieve the desire of autonomy, job satisfaction and in addition a work which allow great flexibility. However these women play a dual role i.e.

a.      To become the center of the home crowned with the virtue of faithfulness and responsible for coordination of house and family.

b.      In addition as an entrepreneur, they have to be able to observe the environment, identify opportunity to improve it utilize resource and implement action to maximize opportunity to organize manage and assume the Risk for running the business.

The above problem may exist on both male and female entrepreneurs for the purpose of this study the following basic research questions are formulated 

1.      What is the level of the practice of women entrepreneurs?

2.      What are the major challenges encountered by women entrepreneurs?

3.      What are the future prospect (opportunity) of those female entrepreneur and related challenges?

1.3 OBJECTIVE OF THE STUDY

The primary objective of this study is to asses and examines some distinguishing features problem, prospects and challenges of women entrepreneurs in bahir dar town. The specific objective of this study therefore,

• To assess the level to the development and promotion of women entrepreneurs.
• To mention the general factor those affect the development of women entrepreneur in the town.
• To identify major the challenges
• To evaluate the   prospect existing as far as women entrepreneurs are concerned.

1.4 SCOPE OF THE STUDY

The interest of the research had been focused its area of study in women engaged in trade. Why? Because, the participation in this sector had permitted women to offer grate contribution to the economy as well as achieving a place in the society by one’s accompaniment. In addition to this, women in the service sector are part of the study. Since women owned business can be categorized under the three broad sectors. The research had been conducted in bahir dar town from which women engaged in entrepreneurial activity selected

1.5 LIMITATION OF THE STUDY

This study is undertaken of the bases of women entrepreneurs that involves in different sector of the economy in Bahir Dar town. Due to the limited human and financial resource the study is restricted to 45 respondents from the total population. Regarding interview, the study is planned to interview appropriate women entrepreneurs who have different occupation and area of participation and their fore,

The other limitation was low availability of data (especially secondary data) regarding business undertake by women. There is a small quantity of current and updated information about women in business.

                

1.6 SIGNIFICNACE OF THE STUDY

The major importance (significance) that are expected from theie research paper would;

1.      It encourages the targeted economic development through further investigation in the area of women entrepreneurs’ participation because it requires another finding and investigation on these areas.

2.      The finding may give a hint (clue) about women entrepreneur and its problem , prospects (opportunity) challenges and the causes for the observed situation , that initiate the policy makers, the women it self and other interested party to carry out detail investigation.

3.      The finding of the research may help the respective responsible party and the investigator to understand the general participation of women entrepreneur profile, the causes of the observed condition & take possible action that can be taken to correct the unbalanced situation.

4.      The result from this study somehow would have practical validity and mainly could serve as a spring board for further studies to be conducted in this area.

      1.7. DESIGN AND METHODOLOGY

1.7.1. PARTICIPANTS AND TECHINQUE

Basically, these researches would be concerned to women entrepreneurs that involve in different sector of the economy and identifying their problem prospects and challenges. Even it those problems affect other portion of the society but for simplicity, reliability and accuracy the specific scope of women entrepreneurs participation would be considered. Regarding the material requirement to analyses and produce out put from raw data the access of personal computer is used. The specific scope of women entrepreneur that have special roles in economic, social as well as political aspects of the town. Among the frame population target in the town, 15% of the sample population assumes to be sufficient to conduct these researches. The frame of population include only who are legalized by renewing their license at least stayed for the past five years in its operation totally 300 women entrepreneurs in the town and interview had bean made with numbering of mentioned percentage, that is 45 women out of the total population. Those selected targeted group are expected to be familiar with the forwarded interview questions because of their behavior and experience.

1.7.2. METHOD OF DATA COLLACTION

For the accompanishment of this research, the data would be collected from both primary and secondary sources. The primary data would be used to identify the problem, opportunities and challenges of women entrepreneurs to identify the actual and potential participation of women and awareness. To get these data interview would used to sample participants.

   Secondary data includes any information available that is directly or indirectly helps to understand the above issue would be collected. These data was collected from the town trade and industry bureau, Bahir Dar Bureau of Finance, Women Association, Labor and Social Women Affairs Office.

           1.7.3.     METHOD OF DATA ANALYSIS

The analyzed data had been organized in tables. Using percentages graphs and also some other methods needed to put or present some part of the data the increasing trend of women participation and also the actual challenges of their participation, moreover, descriptive inflection analysis had been applied on those data that could not be included in the table, graph and percentage. These are applicable especially for qualitative data like feeling, opinions about the women involvement in economic, social as well as political issue of the town

After all the necessary data for the study had been collected, the processing and analyzing of data was been done. Processing implies editing, coding and classification of the collected data, so that they had been suitable for fur their analysis editing on the other hand, is a process of examination of collected data in order to be sure possible problem are resolved.

    Tally and some other methods for presenting data to process are going to be used, so that responses by put in to a limited number of categories or classes. Because as most studies result in large volume of data, which must be reduced to homogeneous groups, arranging the raw data in to a group on the bases of common character tics had been required. After processing and classfing the data, the analysis had been made.

   . The most important finding concerning women entrepreneurs in different sector of the economy in bahir dar town, problem, opportunity and challenges investigation has been conducted thoroughly on women entrepreneurs . The examination focused on different issue like problem, opportunities, social views and attitudes educational back ground and many other aspect.

An interview was conducted to go to deep and clarity answer given by women entrepreneurs. An interview is conducted on 45 women entrepreneurs randomly from the total population.  These section contain the analysis from which related and relevant conclusion will be drown from the data.

                               

                                         

                                                       CHAPTER TWO

2. LITERATURE REVIEW

2.1. ENTERPRENERSHIP DEFFINATION, CONCEPTS AND APPROCH

Entrepreneurship is an essential element in economic development and in believed to have a great contribution towards the creation of activities which lead to human development. As pointed before, there is no one and universally accepted definition of entrepreneurship. However generally entrepreneurship is the capacity and willingness of individual to innovate, properly judged and takes considerable risk to introduce change in the economic activity and manage business. In capitalism, socialism and democracy ( 3^rd 1950) Joseph schupeter defined the entrepreneurial function as that “… of undertaking a new and untried business  responsibility producing new and untried business possibility is producing new  commodities or producing an old one in a new way, reorganizing an industry open up a new market , developing a new source of supply, exploiting an invention”

Entrepreneurship or the entrepreneurial function in a business development processes is widely recognize to be a critical factor or a key variable in the economic growth of a nation particularly LDC_s like Ethiopia. In fact in literature, it is concerned that entrepreneurial in put spells the difference between prosperity and poverty among nation. In real life these process therefore entrepreneurship has emerged as one of the priority of many developing countries.

Basically, the dearth of entrepreneurs in Ethiopia as many other LDC_s is critical issue that deserves further research and study. In Ethiopia, the stimulation, promotion and development of entrepreneurs to accelerate the development of small scale enterprises is a decisive stop for development.

The subject of the promotion and development of entrepreneurship in the country in virtually untouched, except a plot EDP and few safe training opportunity organized and developed by GTZ (the German Technical cooperation agency) . There is thus, an immense need to launch intuitive in the area of entrepreneurship to poster any entrepreneurial talent and potential that may be present or to stimulate and initiate entrepreneurial activity though out the country. (Source: small scale enterprise and entrepreneurship dev’t in Ethiopia)

DEFINATION ENTERPERNERURSHIP

Different authors have come up with much definition on entrepreneurship emphasizing its different facts and stages of development.  Clearly there is no consensus reached as to the precise definition of the term entrepreneurship. How ever, the following definition may be taken as the bases for our study.

Entrepreneurship is the process of identifying, developing and bringing a vision of life . The vision may be an innovative idea, an opportunity or simply a better way of something. The end result of this process is the creation of a new venture formed under conditions or risk and considerable uncertainty.

Many authors have defined entrepreneurship emphasizing on a wide range of activities such as the creation of organization, the carrying of anew combination, the exploration of opportunity, the bearing of uncertainty etc. The following are some of the definition.

1. Richaro Cantillon( 1730) defined entrepreneurship as self employment of any sort entrepreneurs buy goods at a certain price and sell them at uncertain prices after some  times, hence bearing the uncertainty of price fluctuation.

2. Robert Ronstadt– defined entrepreneurship as a dynamic process of creating incremental wealth is created by individual who assume major risk in terms of equity, time and ( or career commitment of providing value for some product ( service). The product service) by it self may or may not be new or unique but value must be some how infused by securing and allocating the necessary skill and resource.

3. Joseph Schumpeter (1934) portrayed entrepreneur as an innovator who implement change with in market by carryout new combination of various factor and conduction prevailing in one particular economy. These new combination may take several forms 

 Viz:

• Introduction of a new product
• Introduction of a new method of production
• Opening of a new market
• Discovering of a new source of supply/ material & parts.
• Bringing out a new organizational structure
• Bringing in new technology.

4.  Vasant Desal : Describes an entrepreneur as one who detects and evaluates a new situation in his environment and directs his conscious to make adjustment in the economic system as he  deem necessary , He coneives of a business enterprise for the purpose , display considerable initiative and diamination in bringing it to fruition and in this process, perform one or more of the following.

I.  Perceives opportunities for profitable investment

II. Explores the prospect of starting such a manufacturing enterprises

III. obtaining necessary industrial licenses

IV. Arranging initial capital

V. Providing personal grantees to the financial institution

VI. Promises to meet the short falls in the capital

VII. Supplies technical know –how.

Source: Hodgetts, Richard, entrepreneurship A contemporary Approach 1998.

2.2. Economic Significance of entrepreneurship

The role of entrepreneurship in economic development involves more than just increasing the per capita out put or per capital income. It involves inflating and constituting change in the structure of business and society. In turn this change is accompanies by over all economic growth and increased out put. One theory of economic growth defects innovation as key, not only in developing new product or service for the market but also in stimulating investment interest in the new ventures that are being developed.

In spite of the significance of investment and innovation in the economic development of a nation, there is some times lack of understanding of the product evaluation processes. This is the process through which innovation is developed and commercialized through entrepreneurial activity, which in turn stimulates economic growth. The innovation process can be of varying degree of  uniqueness most innovations process that are introduced to the market are ordinary innovation i.e with little uniqueness or technology , each innovation involves in to and develops to ward commercialization through either the government, corporate entrepreneurship or an independent entrepreneurship.( Donald . F and kutatko, Entrepreneurship in cotemporary approach, 4^th edition)

For further economic advancement, one recent micro economic approach to economic growth in the promotion of entrepreneurial activities. Entrepreneurial effects have been found to generate a wide range of economic benefits, including new business new job, innovative product and services and increased wealth for further community investments.

An entrepreneur is a catalyst who plays a pivotal role in developing economy, Ethiopia being not an exception, Thus entrepreneurs.

• Create job opportunities
• Ensure better production method and product.
• Identify of business opportunity and markets
•  Conserve  natural resources
• Abolish monopoly and enhance competition
• Development of complementary goods/ services
• Increment of per capital income and out put.
• Ensure batter utilization of scrap materials
• Generation of foreign reserves Source M.Kurakto, Donald. F 4^th edition 1998.

2.3. Women’s empowerment and there Access to resource in

    Ethiopia.

In Ethiopia, women contribute a lot of the family’s and the community well being an equal access to basic resource . Ethiopian women’s have limited bargaining power to enhance their control over resource, both with in their family and with in the community at large. In addition to limit access to resource, a woman in our country earns less than men. This low earnings are limited access to resource make the opportunity to invest very low which in turn make women’s the one that are dominate in the informal urban economy and rural agricultural production. Women  participate in higher status of job ( such as in management , teaching in  higher institution , in medicine , engineering etc) remain very low, with women significantly under represented in the senior position and clustered in industries and occupation that are segregated by gender.

International labor organization report of 1997 regards women participation in various organization progress status ,almost universally, women have failed to reach leading in major senior position… irrespective of their ability women generally fare best in industry’s employing large number of women, such as health and community service and the hotel and clearing  industry. Participation of women steel concentrated in teaching, health care public welfare and communication . Occupational segregation of women in a certain profation or occupation in considered to be lower associated with lower level of position , payment and compensation  women mostly occupy all clerical position and their strength is confined to traditional female job such as nursing health  technology , elementary and secondary education , liberation and social work.

There are many constraints on participation of women in the work place. This conduction of the participation of women in different organization and institution have their origin in the traditional interpretation of socio-cultural attitude and the gender division of labor between the sexes.

As human kind from hunting and gathering to agrarian society , then in to industrial  base urban cultures the traditional  concept of division of labour did not change much women were expected to persive the health and home man were expected to  explore the external world and straggle for the  family’s existence. Source: ( Azmera Mebrahten, women labor participation and their significance in the over all labour force  1996) .

2.4. WOMEN EMPLOYEMENT OPPORTUNITY AND MAJOR

      CONSTRANTS

Development has to be a total in nature any development which marginalized female (50% of the population remain fragile) Heance to attain sustainable development , the political economic culture and social conditions of women have to be the integral part of the over all development program of any nation accordingly women’s reinprcement impact ( positive) providing an opportunity will have the over all economic social and political development of the country. Women constitute half of the population how ever, they do not command an equal shair both interms of employment opportunity and not resource shair specially in the least developed country. The main reason for these lower participation can be social, political cultural, and religious factors ( Alemayehu,economc focus , 3^rd edition ).

The main factor that faced women labour participation in the formal economy and social sector to be low are given below.

I. EDUCATION

Education for female is an investment that builds the human capacity and contribute greatly to productive and efficiently specially female literacy will substantially reduce fertility and increase their capacity. This mean that women’s education minimize socio economic problems. There fore the life conduction of women education must be taken as an important first step. How ever, the social enrollment of women in most developing countries in very low and 75% of Ethiopian women are illiterate. In addition to low enrollment in scholar, there is a high rate of female in Ethiopia. The possible reason for low enrollment and high rate of drop out of  female from school can be early marriage , heavy domestic work and low income their family .

II.  SOCIO CULTURAL AND PSYCHOLOGICAL FACTORS

Traditionally and specially in our society, female are associated with the status of mother and home based workers . In Ethiopia, there are conditions that are against the social value of women in turn affect their psychological make up. Studies and analysis of women culture and society indicates that the most part of the country female are considered inferior to men. The following question supports the above argument.

“In Ethiopia, there is explicit devaluation statement, of women, symbolic device such as attribution to defilement , ( manstration child birth)social structural arrangement that exclude women from participation. ( Teshay, 1992 Gender issue in Ethiopia ).

III. SEXUAL  HARASMENTS

Women’s development , employment and proportion  are mainly affected by sexual harassment .It will be important to defense what sexual harassment is before proceed to its situation in Ethiopia and its adverse impact on women active participation in socio- economic life of the society . Accordingly Sexual harassment can be defined as “ un solicited non reciprocal male behavior that asserts a women sexual role over her function as workers”( Azmera, women Labor participation ).

2.5. PROBLEMS OF WOMEN ENTERPRENUR

Women play different roles and hold different status in the society and face several problem as female business owners it is suggested that women entrepreneur  face greater problem because of particular socio economic barriers. Most potential and existing women entrepreneurs face certain obstacles that are common to entrepreneur in general such as lack of capital insufficient entrepreneur, managerial and technical training and experience economic and technological problem. However this problem may be backed up by additional factors which have an impact on women more than men. The major constraints faced by women entrepreneur to start and manage business, are the cumulative mainifestation of various charactertics expressed in terms of economic, social , cultural & political environment.

A CUTURAL NORMS AND ATTITUDES OF SOCITY

Society have attitude of women, directly or indirectly hinder women’s activity in business sector . Society holds allow esteem for women in business and she is attributed low value not only by men but also women . This perception of women’s task in a society and community as un productive and discrediting their effort and work is a critical factor in undertaking the female labor force.

One of the most barriers of women’s entry and success in business is that values, abilities and role of women at work are often kept in side and not expressed by women themselves. Overcoming society’s belief bussness similarly in ather studys conducted , women entrepreneur stated that they were brought up by their parents or ather to believe that men are batter and more important and that are ultimate role in life for women is to be a wife and mother . Society does not always accord business  women the same esteem and competence they, accord to which in addition , female owning enterprises in sectors which are most of the time male dominated encounter greater constraints due to resistance, discrimination etc. ( C.Vonder wees and H. Ronjin, 1997 ).

B. VOCATIONAL EDUCATION AND TRAINING

Vocational education and training provides a means of facilitating the entry of women in to higher level and wider range of jobs including broader opportunitys for self employment. the purpose of vocational education and tranning is to have skilled and technically  qualified man power to different sector of the economy. it has been observed that the struacture  of female labour force is geared mostly in non technical occupation , mainly in the service sector.

            One serious obstacle is that enrollment of female students in institution based on technical training program is usually less than that of male students women entrepreneurs skill has an important bearing for the work experience they acquire and the type of business they engage in . Thus if women are restricted to training and work experience in a narrow range of occupation, the business they set up will tend to be in productive area which has small potential for growth and income generation. ( C. vonder wees, 1997 P.78) .

C. FINANCIAL FACTOR

            Women have the difficult in acquiring the major and critical resources most frequently, women entrepreneur do not have an easy access to credit or obtaining bank loans due to several factors. The financial institution are not responsive to women owned business due to seize and nature of business organizations women are usually found in very small enterprises and need small loans which are viewed as un profitable by the bank and financing institution since high administrative costs are associated. ( Miti Tesgaye, women entrepreneur in Ethiopia, 1998  )

CHAPTER THREE

3. DATA ANALYSIS AND DISCUSSION

This section presents some of the most important finding concerning women entrepreneurs in different sector of the economy in bahir dar town, problem, opportunity and challenges investigation has been conducted thoroughly on women entrepreneurs. The examination focused on different issue like problem, opportunities, social views and attitudes educational back ground and many other aspect.

An interview was conducted to go to deep and clarity answer given by women entrepreneurs. An interview is conducted on 45 women entrepreneurs randomly from the total population.  These section contain the analysis from which related and relevant conclusion will be drown from the data.

3.1. BACKGROUND AND EDUCATIONAL LEVEL OF WOMEN

  ENTERPRENEURS

Women entrepreneurs in bahir dar town have different educational and also different occupational  back ground . The result indicated that those women entrepreneurs ranging from a student, employee in affirm, or from unemployment . As we have to know that, effectiveness of an organization can be measured by the availability of good organizer and decision makers.

Table 3.1. Educational level of women entrepreneurs.

No	Educational level of women entrepreneurs	Respondents
		Number	Percentage (%)
1	Below primary education	2	4.44
2	Primary education	5	11.11
3	Secondary education	7	15.56
4	Post secondary  diploma	18	40
5	Degree	9	20
6	Above	4	8.89
	Total	45	100

 Source:-  survey data

The above data indicated that about 18 (40%) of the women entrepreneurs have a post secondary diploma and 9(20%) have degree in different field of study . These indicates that women entrepreneurs have a good level of efficiency in operation since they have a wider  exposure , experience and as the result are able to analyze things . But these can  not be the  only criteria of evaluation of women entrepreneurs .

 4.2 MOTIVATIONAL FACTORS FOR WOMEN ENTERPRENEURS (open ended question)

Entrepreneurial action are most often intentional, not accidental.  Such intentions capture the motivational factor that influence entrepreneurial ability, indicating how hard an individual is willing to try and how much effort she is planning to exert in order to carry the new business venture.

 

How do you become entrepreneurs?

From the observed data the question how you become an entrepreneurs and the motivational factors that inter in to entrepreneurial activity were generalized that.

• Wealth creation and profit seeking attitude
• A desire and look for a better living standard and better satisfying away of life.
• The desire to make one own decision and independence in the operation of their life.
• Escape from the Authority of other or the need of independence.
• The avuablity of financial as well as technical potential to accompanish the entrepreneurial activity.
• Find out pressure and satisfaction from the work that can be performed by herself.
• Achieving a higher status in the society and an intention to create new things.

i) PROFIT  SECKING  ATTITUDE

Entrepreneurs are risk takers in investing their time and money operate the business.  Profit is a reward for assuming these risks.  The ultimate purpose of entrepreneurs is wealth creation along with other motives.  The women entrepreneurs in this case more or less earn profit and thus profit is a motivation to engage in a business and operating it.

ii) SATSFING AWAY OF LIFE

From the data about 25 women entrepreneurs It account 55.5% of the entrepreneurs notes that achieving a higher status in society was a good motivational factor. In addition to these entrepreneurs descries and look for a better living standard and thus a better life good living standard assumed by women entrepreneurs as a major motivational factor to enter in to entrepreneurial activity.

iii) ESCAPE FROM AUTHORY OF OTHERS /INDEPENDENCE/

From the observation 33 women entrepreneurs it accounts 66.66% out of the total population, independent was one of their motivational factor to become an entrepreneurs.  This shows that the desire to make one own decision and independence in there operation of their life.

iv) PERSONAL INTEREST

Entrepreneurs are those who believe in ability to accomplish what they set out to do. Women entrepreneurs are mostly happy when they are performed tasks independently in the work and find pleasure in what they  for.  As a result of the study shows that 33 women entrepreneurs notes that personal interest in one from other factors to become entrepreneurs.

3.3 Major line activity that women entrepreneurs

The major line Activity of women and their work experience prior to start there entrepreneurial activity.

Table 3.2. The major activity and their work expanse prior to start the business working in.

No	Major line activity that women entrepreneurs takes	Respondents
		Number	Percentage (%)
1	Manufacturing	5	11.11
2	Construction	8	17.78
3	Trade	25	55.56
4	Transport	5	11.11
5	Others	2	4.44
	Total	45	100
	Work experience prior to start the business working in
1	Employee in affirm	6	13.33
2	Student	18	40
3	Un employed	16	35.56
4	Share holder in other firm	2	4.44
5	Others	3	6.67
	Total	45	100

Source, from the survey data.

The above table shows that women entrepreneurs with in the town perform different tasks like, manufacturing 5 (11.11%) constriction   8 (17.78%) , trading activity 25 ( 55.55%) Transport 5 (11.11%) and some other activity it accounts 2 (4.44%) of the total women entrepreneurs.

Before entry to entrepreneurial activity, women engaged in different area of participation employee in on other firm it account 6 (13.33%) from  student ( it is the larges of women entrepreneurs that  involve before start the business18 ( 40%) , from unemployment 16 (35,55%) share holders in others firm 2 (4.44%) and others occupation 3 (6.66%) that women entrepreneurs involves.

MAJOR ACTIVITYS OF WOMEN ENTERPRENEURS

Table 3.3. Major line Activity of and types of business for women Entrepreneurs.

No	Types of business that  women engages	Respondents
		Number	Percentage(%)
1	Proprtorship  type of business	30	66.67
2	Partner ship business	13	28.89
3	Share company	2	4.44
4	Joint venture	-	-
	Total	45	100

Source from survey data.

           

The major line activity that women entrepreneurs undertake are different according to women personal interest that engaged with in.  The form of enterprises that perform women entrepreneurial activity that participate in the town.  From the survey data, about 30 women entrepreneurs that account 66.6% of the total women entrepreneurs participate in proprietary types of business. These indicate that most of women entrepreneurs own their business and administered themselves.

3.4 SOURCE OF CAPITAL FOR WOMEN ENTERPRENEURS

Women entrepreneurs acquire the entail and working capitals to start their business are from different sources.  The main source of capital to start up a business operation identified by women entrepreneurs are,

• Own saving
• Loan from financial institution
• Contribution from family
• Contribution and assistance from friends

Source from survey data

Fig 3.1. Source of capital for women entrepreneurs to start Entrepreneurial activity.

Financial source

Key:

A Source from own saving

B  Families and friends support

C Financial institutions

D other sources of finance

From the observed survey data, it had been identified that almost 20 women entrepreneurs ( it accounts 44.4% ) of the total population get their working capital from financial instruction .  These indicate that most women entrepreneurs are users of financial institutions as a source of finance for  start anew business even it have some problem with in.

How do you evaluate the loan payment period, the interest rate and the collateral requirement?

Table 3.4. Evaluation of the loan payment period, the interest rate and collateral requirements.

	Description	Number	Percentage
	How do you evaluate the loan payment period
	Land	6	30
	Average	5	25
	Short	9	45
	Total	20	100
	How do you evaluate the collateral requirement
	Reasonable	8	40
	Un reasonable	1	5
	Discouraging	11	55
	Total	20	100
	How do you evaluate the interest rate
	High	12	60
	Average	6	30
	Low	2	10
	Total	20	100

From the above data, women entrepreneurs who have initial capital from financial instruction explained that, the procedure to get the initial working capital took long time –Not all entrepreneurs but 11 (55%) out of 20 women entrepreneurs who have the use of financial institution as a source of working capital suggested that “the collateral requirement is not easy to undertake the required capital “ . It also explained that “the loan payment period is low and the interest rate charge is quite high.”

Banks that included both private banks and commercial government banks are interested in short term loan, even if those women entrepreneurs who have borrowed money from bank stated that “The period of repayment was low and interest rate is high” thus long term borrowing is not accessible to the entrepreneurs in the town . As respondent said “The repayment period should be fixed according to the project reproductive cycle and banks has to be there fore take in to consideration the different condition and circumstances forced by those women entrepreneurs”

These show that the loan repayment period have to be flexible and allow relatively long period to meet credit loan.

Not only these but also women entrepreneurs identified that the interest rates are high . These imply that, if the women entrepreneurs are charged a high interest rate, they won’t be able to achieve or realize their potential to development. Although acceptance to get loan collateral are relatively reasonable high interest rate and low repayment period are real barriers to undertake and achieve the purpose of organization.

The small scale enterprise would not be to meet their obligation and even if they do, their would not be much left to advance and support their business that is straggling to survival when the interest charge is very high . So that, if would stay in the market . The respondents highly suggested that.

“The development of small scale enterprises need special attention, commitment and support by banks to establish conductive environment and support fast promotion of small scale enterprises because they follow growth track ”.

3.5 MEANS OF AQUIRING SKILL IN BUSINESS

Women entrepreneurs has acquired the basic skill, like managerial technical and marketing which contribute a lot to  carry out business effectively and efficiently  through  different  training and other means of education . Because of the requirement of those basic condition women entrepreneurs get those skill form different perspective.

Table4.5. Means of acquiring skill for women entrepreneurs

No	Means  of acquiring skill	Respondents
		Number	Percentage (%)
1	Training	11	34.44
2	Experience	10	23.22
3	Education	20	44.44
4	Naturally	4	8.89
	Total	45	100

From the data vocational education and training provides a means of acquiring and facilitating the entry of women in entrepreneurial activity. 20 women entrepreneurs which accounts 44.44% of the total population acquire this skill from education and 10 women entrepreneurs from experience from previous engagement. Training also have the main means of acquiring those skill it accounts 34.44% of women entrepreneurs get entrepreneurial talents from different training  program.

3.6 THE MAJOR PROBLEM OF WOMEN ENTREPRENEURS IN   RUNNING OF THE BUSINESS

Different constrains that can limit the scope of new opportunity and active involvement of women entrepreneurs in different area of activity’s.

However these constraints should be over come and should not be an obstacle that forever blocks the way. The presence of these problem supplies the potential women entrepreneurs to participate in various economic activity and easy to access to productive resource like credit and the like . Among the major problem that women entrepreneurs faces are include.

i. DAMOSTIC RESPONSIBILITY OF WOMEN

Most of women entrepreneurs have family members and those families require support from those entrepreneurs.  Those entrepreneurs as a mother, a wife and income generator in the family. Not all but most of women entrepreneurs have a great responsibility to support family members. How ever the typical problem of women entrepreneurs faces is the family responsibility to cope up with it.

These shows that, women entrepreneurs face equal responsibility in both domestic and business operation. There have to allocate their time realistically since  both the family as well as business need in different  attention.

A successful entrepreneurial venture require not only  a commitment of money , knowledge skill and energy but it require time and emotional commitment . As an entrepreneur, the women has to devote a lot of time at work and also out side the normal working hours even if women entrepreneurs having one’s business has it job satisfaction like giving  job opportunity to the society but there are also some disadvantages .

( Source, Annual report of women Affairs office of bahir dar town ).

The respondents notes that “ As a mother , the entrepreneurs has to spend time with her children and some  times travel long distance or stay up late at night in the office”. From the observed data women entrepreneurs need to be more organized and programmed way of operating their activity.

The women have to keep the balance between those two sides. (Both domestic responsibility and business operation ) . According to the survey data,18 women entrepreneurs, it accounts 40% of the  entrepreneurs explained that, “ family problem interfere with the work . Only 8 women entrepreneurs notes that their family are not any effect on due run of the business. The remain women entrepreneurs states that it have a considerable effect on perform the business.

ii) SOCITYS ATTITUDE TOWARDS WOMEN ENTERPRENEURS

As a respondents identified that ‘there are stereotypical requirement imposed both religion and culture. These requirement imposed by culture and religion are barriers to the freedom of women in doing what they want to do. Almost all women entrepreneurs explained that “the current economic policy create effective freedom of women entrepreneurs participation in any entrepreneurial activity and affordable to make new venture. However the existence and availability of infrastructural facility is not sufficient.”

As respondent notes that “societies attitude towards women business are the major factor that contribute to a secondary status compared to men” 5 women entrepreneurs it accounts 11.1% of the total population explained that” Generally  the society as well as men entrepreneurs have negative attitude towards women entrepreneurs “ It is because they are really incapable of doing what they have preserved in mind.

What is the attitude of societies towards women entrepreneurs?

Table 3.6. Attitude of society towards women entrepreneurs.

Attitudes of the society towards women entrepreneurs	Respondents
	Number	Percentages
1. Positive attitude	38	84.4
2. Negative attitude	5	11.11
3. Indifference between the two	2	4.44
Total	45	100

The women entrepreneurs asserted that society’s attitude towards business a woman depends in the circle of people you are in and work. Educated people with in the town believes that both male and female  business man or business women are equally  even their have positive attitude to those women who is participate in entrepreneurial activity. The women entrepreneurs have also observed from their own experience that  “ some parts of the society have less value for business women “ they do not respect and encourage them for the work  performed” . It is simply that is the job done less worthy just because the person is a female.

These show that the society is inclined to upraise and appreciate business activity under taken by men 5 women entrepreneurs it account 11.1% of the respondent said that “male business man wants to take  advantage of the situation because the person is a lady” these show that the  society is not open and broad mined- women entrepreneurs have less acceptance in the society as compared with male rather those have Negative attitude for alley.

Which one of the following problem is typical to women entrepreneurs in the town?

 

Fig 3.2 typical problems of women entrepreneurs in bahir dar town.

From the analysis (observed situation) 30 women entrepreneurs that is 66.67% explain that “Financial problem is the most among the other significant constraints in operation of the business” and 10 women entrepreneurs (22.22%) market problem , 6.66% land acquisition problem and 4.44% stated some other problem like family and personal problem were identified.

3.7 ADDATIONAL PROBLEMS OF WOMEN ENTERPRENEURS

What are the challenges and some other additional problems that women entrepreneurs faces in running your business?

From the data respondents explained and suggested the following additional problems.

• The existence and availability of undesirable bureaucracy in some organization.
• Lack of suitable and comfortable operating environment to operate the business and unsatisfactory business climate.
• The absence of suitable motivational and productivity for planning with in business operating climate.
• Land acquisition process has been area constraints to their entry in the business operation.
• The absence of conferences and discussion that help the organization that deal women entrepreneurs and their related challenges.
• Insufficient availability of infrastructural facility’s it consists of transportation, power (energy) and communication.

A   AN EXTREME BUREAUCRACY

Most organization rely on bureaucracy to insure that work is accomplishing effectively by removing error, by reinforcing conformity and obedience organization structure which is the design of an organization including a number of units division and subsidiaries and  what is does  and it  responsible for . But in reality the case is that bureaucracy structure made unstructured problems salving more difficult and even some times impossible.

An extreme bureaucracy is undesirable and an obstacle in undertaking entrepreneurial activities from different perspective dysfunctional bureaucracy structure obstacle to reaching the goal. This kinds of bureaucratic structure limite the  alternative way of achieving the objective that can be taken . These kinds of bureaucracy activity obstacle and take a lot of time to do some thing.

From the survey 25 women entrepreneurs it accounts 55.56% from the total population explained that “The current economic condition enabling these condition, the positive aspects were  the opportunity to use the latter of credit , reasonable tax, freedom to engaged in any types of business? This indicates that the government take an action that encourage women entrepreneurs participation and it create positive economic development. However there is stile some problems were identified in due process of business. There are requiring some changes to come up with effective run of business.

B.  LACK OF SUTABLE OPERATING ENVIROMENT

Comfortable and suitable operating environment helps to the organization exist with effective and efficient manner. any organization exist in an environment . Environment is an essential for developing any business operation. In the absence of suitable work environment, there is no motivation and productivity any decision making and strategic planning with in the organization operate with in the environments.

Special environment must require to perform an entrepreneurs uses their potential talents and effects on business operation proper environmental scanning must require for function and operation properly their most be  favorable regulation, directive and law from various government and non-governmental agency’s.

How long did you want to get land to your operation?

Source survey data

Fig 3.3 the length of time to get land for business operation

From the data above, it is required to long time to get lands to investment 10 women entrepreneurs is accounts 22.2% , explained than if we want to land for investment, the time required is less than 6months bat 20 out of the total population it accounts 44.4% states that “ it require six months up to one year 6.6% of entrepreneurs asserts that these requirement extends to more than 2 years. But all entrepreneurs hotels that if the requirement is suffercent the land is given to the entrepreneurs at the end.

The provision of land on an investor is very essential but from the observation women entrepreneurs notes that “land acquisition process has been a real constraint to their entry in to a business operation. This practice down the contribution of women entrepreneurs business institution and the policies formulated should be supportive to enterprise to the variability and growth.

The role of women entrepreneurs business is essential and should have active role in identifying problem and thus give advice and guidance to those who need it. But the entrepreneur said that “ there had never been any conferences and discussion that help the organization that deal with women entrepreneurs problem and to give corrective action.  As some other business man, women also have some problem in through process of their business so conference discussion are an essential  tool to solve their problem.

As a respondents clearly identified that “ the current economic policy has created enabling condition of operate one’s business” government give a litter of credit for a business people.

CHAPTER FOUR

4. SUMMARY, CONCLUSION AND RECOMMENDATION

4.1. CONCLUSION

This research is shows that even though there are a problem prevailing in the economic system as well as social, conductive working environment are fostered and thus a bright and promising future is awaiting potential and existing women entrepreneurs in the town. It is clear that the Ethiopian economy is moving towards market oriented and the private sector which also includes women entrepreneurs has to take the major role in economic development. However, obstacle faced in reaching these goals has to be minimized. An attempt has been made to identify the problem related to women entrepreneurs from  different aspects. It can be concluded for the findings some of the major problem faced are.

v  The need for change in the attitudinal source of society towards women entrepreneurs

v  Lack of sufficient training and experience in relevant activity’s

v  Lack of capital

v  Lack of sufficient infrastructural facilities

v  The presence of an extreme bureaucracy in some area of operation

This research finding contributes and attempts has been made in order to clear out the major problem related to women entrepreneurs, opportunist that an entrepreneurs expect and related challenges.

4.2 RECOMMENDATION

The presence of conductive working environment has to be essential for the creation and development of entrepreneur’s activities.  Those conductive working environment has to be established to that meaningful and practical change occur in the  economy of the town . to minimize the impact of those problems some Idias  and suggestion   were forwarded.

1. To satisfy the interest of sustainable growth and development, the respective party do not focus only in economic factor . It is the other factor that limit the smooth growth and development but consideration of social factors should be taken in to account . From those social motives and values, education and some other concepts.

2. women related organization should be organize seminars workshop, training program through which several women entrepreneur can help and learn from one from the other . It is clear that training plays pivotal role to increase the efficiency of entrepreneurs. Those training activity must be provide appropriately with required women entrepreneurs according to their  training gap between the actual requirement with potential one . Because training have a potential to close the gap of operation.

3. It is the responsibility of government to make the situation favorable to undertake business activities. Appropriate formulation of business policies that encourage and considering the need of women entrepreneurs and appropriate from work that possible entrepreneurial activity. By providing the basic need like roads, transportation, electricity, telephone water to the difference areas with in the town.

4. The coordination of government with financial institution in addressing the barriers that limit women access to credit. Governmental and non- governmental organization channalize with resources to women entrepreneurs. Banks and other financial institution should establish credit garante schemes to encourage the potential  and prospective women entrepreneur to benefit from their service by giving essential information towards access to credit and practical assistance provision to various support.

5. The financial instution should revise their policy and establish policies that enable women entrepreneurs benefited from their services.

6. Encouraging formation of credit union, financial companies and demobilizing and expand private sector of the bank system.

7. Since credit by itself is not enough to help women to archive higher productivity, it should be complemented y other forms of support such as marketing, training facilities, extension advice and regular monitoring.

8. One remedy to social problems as well as stagnant economy could to invest in human resource development . With out education, it would be difficult to assessing the technology and support competition, Thus government should redirect resource to education

9. Different women entrepreneurs association has a great role to play in supporting and encourage the women entrepreneurs . Those association should be an active participate in up grading their business and assess in problem identification and means of solving it.

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7. Hayat Adbulahi , (Dec 1997). Constrants to women entrepreneurs in the informal sector the case of traders in Addis Abeba Economic focus , Volume  1,
8. Johannes Kinfu, (1995). Education and Enterpreneurship a Development role and effect on education in entrepreneurship dev’t paper presented at apreceeding of the annual conference on management in Ethiopia Addis Abeba,
9. Konjit  Kefetew (1995). women Enterpreneurs in the trade sector in Ethiopia prospects and challenges, Addis Abeba Ethiopia ,

10. Kartirk , royetal ( 1996) Economic development and women in the world community.

APPENDIX

INTERVIEW QUESTIONNARIES

1. Name of the Bussness_____________________________
2. What is the form of the bussness?
1. Proprietorship_______________________
2. Partnership_______________________
3. Shari company_____________________
4. Joint  venture______________________
3. Education level of the entrepreneur
1. Below primary school ____________________
2. Primary school _______________________
3. Secondary school ______________________
4. Post secondary diploma______________________
5. Degree ( specify) _____________________
4. When did you start your business?

___________________________________________________

5. How much was your initial capital

__________________________________________________

6. What is your major of activity of your business?
1. manufacturing ________________________
2. constriction ________________________
3. Services___________________________
4. Transport ____________________________
5. Other ( specify) _______________________
7. How did you become an entrepreneur?
8. What was your work experience prior to the start of your business?
1. employee in a firm_________________
2. student________________________
3. unemployed_______________________
4. share holder of another firm___________________
5. other specify____________________

9.  Did the current economic policy create enabling  conditions to

     operate your business

            a. Yes _________________    b./ No _________________

10. If Yes, in what areas of aspect? ___________________________

11. How long did you want to get land to your operation

           A. less than 6 month ___________________

           B. six month to one year _________________

           C. one year to two year_____________________

           D. more than to year _______________________

           F. never get land so far______________________

12. How did you get your initial and working capital ?

           A. family members (friends) ____________

           B. financial instructions ___________________

           c. Own saving ________________________

            D. other specify _____________________  

13. If you got your initial and working capital from the bank, how long

     did the procedure for approval take ?

a.       less than there month ____________________

b.      three to six month ________________________

c.       once a Year_________________________________

d.      more than one year___________________________

  14. How do you evaluate the collateral requirement of the banks?

           a. reasonable ______________________

           B. unreasonable _____________________

           c. discouraging_______________________

  15. How do you evaluate the loan payment period

             A. long ______________________ B. average ________________

             C. low ________________________

  16. How do you evaluate the interest rate?

            a. High _______________ b. Average ____________

            c. low____________________

  17. Basically an entrepreneurs need managerial technical and

        Marketing skill to carry out his/ her business effectively . Do you

         have these capability ?

                A. Yes ___________________ B. No _____________________

18. If yes, how did you acquire these capability?

       a. Training __________________

       b. Experience _________________

       c. Education ___________________

       d. Naturally _______________________

       Other ( specify) ________________________

19. Have you ever been exposed to any training

       Yes ___________________ b. No _________________

20. Were these training related or relevant to your business

          a. Yes ____________________ b. No________________

21. If yes, can you site them?

        __________________________________________________________________

      

22. Do you think you need further training?

          a. Yes _____________________ b. No ______________________

23. If yes, where do you think you can get it?

         ______________________________________________________________

    

24. How do you characterize your business activity ?

        a. As a duplicator of new or existing business______________

        b. As an innovative to the society ____________

25. How do you evaluate the existing status and availability of

      Infrastructure facility  possible ?

       A. Sufficient _____________  B. Not sufficient_____________________

26. Are there resource available and affordable to make anew

        Venture possible ?

        A. Yes _______________ B. No _______________

27. Are you make a profit?

28. How do you spend your profit?

        A. on families _____________

        B. to expand your business__________

        C. other specify _______________

29. is there computation in the sphere of your business?

               A. Yes ____________ B. No ____________

30. Have you got any plans for expansion? If so in which area

       _____________________________________________________________

     

31. Are you satisfied with the business climate you are in ? why

       _______________________________________________________________

     

32. Which one (s) of the following problem do you think are typical to

      Women entrepreneur

          A. financial problem that is raising funds

          B. market problem

          C. foreign exchange problem

          D. land acquisition

          E. family responsibility in addition to business responsibility

         F. other specify_________________________

33. What do you think are the solution to the problems you identified?

        _______________________________________________________________

34. Has their ever been any conference that helped your business in

      Dealing with women related problems?

35. What are your plans in the future?

36. A. How many family members do you support/ _______________

      B. what is your relationship with them

                       A. husband /wife_____________

                       B. mother _______________

                       C. immediate family _______________

                       D. Other ________________

    c. are their any member contributing her? his income?

 37. Do you family problem interfere with your work

          a. Yes ______________ b. No _________________

 38.  If yes, how do you deal with this problem?

       ___________________________________________________________________

    

     ____________________________________________________________________ 

 39. Are you satisfied with your family work relation ship?

      ____________________________________________________________________

    

 40. Do you often attribute your success and failure to yourself?

              a. Yes _________________ b. No ______________

 41. Do you think there are any stereotypical requirements imposed on

      Your by religion or culture?

      ____________________________________________________________________

    

42. Do you approve of these requirements? Why

      ____________________________________________________________________

    

43 What do you think of educated women?

      ____________________________________________________________________

    

44. What is the attitude of the society towards women entrepreneurs?

      ____________________________________________________________________

45. What are the challenges you face in running your business

      ____________________________________________________________________

    

46. What are the future opportunities or prospects of women

      Entrepreneurs in the town?

      ____________________________________________________________________

    

47. What are the recommendation you suggest that should be  fulfilled

      by the government in order to motivate and increase work of

      Entrepreneurship?

      ____________________________________________________________________

    

 

PUBLIC RELATION THEORY AND PRACTSE

 

 

BY:

AYELE ADDIS

I.D-NO-033/04

Instructor: Dr. pramod

 

First assignment on the subject

 

 

BAHIR DAR UNIVERSTY

MEDIA AND COMMUNICATION MA PROGRAME

 

                                                                    October, 2011

 

 

 

 

 

 

 

1. Taking any example, write the publics concerned and the channel you would use to communicate with different groups?

Suppose to a new textile factory pr man, there is building and factor implementation as a pr man first do I will be study the awareness the public communicate to the employer

The customer

So many people have so many views responsibility convince the organization which benefit for them.

Public concerned

Residence-they are strongly, oppose the factor because of displace their living place.

Un employers-they are happy, because create for job opportunities.

Merchants-happy because a goods have supply nearly without transport coast.

Parents-disagree because the noise of the factory.

 

Then thinking to as a public relation man how to convince the people, what is the public opinion, how to persuade them.

After this making a channel which find the people am decide to choose a channel of communication carefully, target publics receive and believes decide to meeting, group discussion , radio and television.

 

 

 

2. Define and distinguish advertising, publicity, and pr writing.

Basic Definitions: Advertising, Public Relations and Publicity

It's easy to become confused about these terms: advertising, public relations and publicity. The terms are often used interchangeably. However, they refer to different -- but similar activities. Some basic definitions are provided below. A short example is also provided hopefully to help make the terms more clear..

Advertising

Advertising is bringing a product (or service) to the attention of potential and current customers. Advertising is focused on one particular product or service. Thus, an advertising plan for one product might be very different than that for another product. Advertising is typically done with signs, brochures, commercials, direct mailings or e-mail messages, personal contact, etc.

Advertising is a form of communication used to persuade an audience (viewers, readers or listeners) to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. Advertising messages are usually paid for by sponsors and viewed via various traditional media; including mass media such as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as websites and text messages.

Commercial advertisers often seek to generate increased consumption of their products or services through "Branding," which involves the repetition of an image or product name in an effort to associate certain qualities with the brand in the minds of consumers. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement (PSA).

Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries.

The non-personal communication of information usually paid for & usually persuasive in nature, about products (goods & services) or ideas by identified sponsor through various media. (Arenes 1996)

Any paid form of non-personal communication about an organization, product,service, or idea from an identified sponsor. (Blech & Blech 1998)

Paid non-personal communication from an identified sponsor using mass media to persuade influence an audience. (Wells, Burnett, & Moriaty 1998)

The element of the marketing communication mix that is non personal paid for an identified sponsor, & disseminated through channels of mass communication to promote the adoption of goods, services, person or ideas. (Bearden, Ingram, & Laforge 1998)

An informative or persuasive message carried by a non personal medium & paid for by an identified sponsor whose organization or product is identified in some way. (Zikmund & D'amico 1999)

Impersonal; one way communication about a product or organization that is paid by a marketer. (Lamb, Hair & Mc.Daniel 2000)

Any paid form of non-personal presentation and promotion of ideas,goods or services by an identified sponsor. (Kotler et al, 2006)

Advertising is bought media. Simply, ad agencies or depts. create ads and campaigns to sell products, ideas, services, candidates, etc. Media planners figure out (through extensive demographic research) where and when these ads should run– in print, on the radio or telvision, in the form of internet banner ads, billboards, flyers and more. Media buyers then purchase ad space in the right outlets in order to achieve the greatest success for a client.

Dictionary.com says that Advertising is:

1.             the act or practice of calling public attention to one’s product, service, need, etc., esp. by paid announcements in newspapers and magazines, over radio or television, on billboards, etc.: to get more customers by advertising.

2.             Paid announcements; advertisements.

3.             The profession of planning, designing, and writing advertisements.

Public relations

Public relations include ongoing activities to ensure the overall company has a strong public image. Public relations activities include helping the public to understand the company and its products. Often, public relations are conducted through the media that is, newspapers, television, magazines, etc. As noted above, a public relations is often considered as one of the primary activities included in promotions.

Many people believe that marketing is just about advertising or sales. However, marketing is everything a company does to acquire customers and maintain a relationship with them. Even the small tasks like writing thank-you letters, playing golf with a prospective client, returning calls promptly and meeting with a past client for coffee can be thought of as marketing. The ultimate goal of marketing is to match a company’s products and services to the people who need and want them, thereby ensure profitability

There are many areas of public relations including media relations and publicity, crisis management, public affairs and more. On the whole, public relations deals with earned media as opposed to media exposure that is bought through advertising. PR is about building positive relationships with the public primarily through exposure and coverage in the media, i.e. interviews in newspapers, on the radio on or a TV newscast. PR people work closely with marketing people in order to support publicity efforts for promotional events and any other activities that encourage participation from the public. For Fortune 500 companies, Corporate PR is an intregral part of the communications machine. One false statement, however, can send a company into automatic spin.

Dictionary.com says Public Relations is:

(used with a sing. verb) The art or science of establishing and promoting a favorable relationship with the public.

(used with a pl. verb) The methods and activities employed to establish and promote a favorable relationship with the public.

(used with a sing. or pl. verb) The degree of success obtained in achieving a favorable relationship with the public.

In businesses big and small, generally the marketing dept. is the dept. that allocates resources, a.k.a budget, to communications programs that will help sell products and services. PR and advertising programs almost always fall under the marketing umbrella. Other areas of marketing include promotions (contests and giveaways), events, trade shows, webinars, social media, sponsorships and more. When you think “marketing” think of any activity or process designed to help sell!

Defining the Terms: The Differences Between PR, publicity and Advertising

If you’re a small- to medium-sized business, I bet you’ve asked yourself, “What is the difference between PR, publicity and Advertising, anyway?” The idea of integrated communications is simple: use a variety of communications methodologies which complement each other in order to meet business objectives. But if you’re not quite sure which direction to follow, here’s an elementary rundown of the differences between these main three areas of communications.

There are many areas of public relations including media relations and publicity, crisis management, public affairs and more. On the whole, public relations deal with earned media as opposed to media exposure that is bought through advertising. PR is about building positive relationships with the public primarily through exposure and coverage in the media, i.e. interviews in newspapers, on the radio on or a TV newscast. PR people work closely with marketing people in order to support publicity efforts for promotional events and any other activities that encourage participation from the public. For Fortune 500 companies, Corporate PR is an integral part of the communications machine. One false statement, however, can send a company into automatic spin.

Publicity is mention in the media. Organizations usually have little control over the message in the media, at least, not as they do in advertising. Regarding publicity, reporters and writers decide what will be said. And all over control the issue and content of the message. According to media house style it is telecasted or broad cast ,printed for the purpose of information.

An Example of the Definitions

The following example may help to make the above three concepts more clear. I recently read that the story comes from the Reader's Digest, a quote found in "Promoting Issues and Ideas" by M. Booth and Associates, Inc. (Thanks to Jennifer M. Seher, participant in the CONSULTANTS@CHARITYCHANNEL.COM online discussion group.)

"... If the circus is coming to town and you paint a sign saying 'Circus coming to the Fairground Saturday', that's advertising. If the elephant walks through the mayor's flower bed, that's publicity. And if you get the mayor to laugh about it, that's public relations."

Advertising is information mixed with persuasion. The best advertising presents information to the reader or viewer in a form that will persuade them to act, to change their opinions, or to maintain the opinions they already have. The link between advertising and publicity is information.
People buy a newspaper as much for the advertising as for the news. Consumers want, and need, the information that is presented to them in advertising. The best advertising persuades as well as informs.also gives information as apublicity.

Another point should understand is that some people (manufacturers, organizations, etc.) will pay other people (advertising copywriters) to write advertising. The first group wants to see a return on its investment. They expect advertising to work — to do what they expect it to do, whether that’s to sell more of a product, enhance the reputation of a company, increase the name recognition of an organization, etc. If the advertising does not work, the people who pay for it will not continue to do so. Consequently, I should understand that clients do not pay for creativity; they pay for results.

Writing for publicity, advertisement, and public relation

Effective advertising writing is more important than ever before. Your prospects are time-challenged—personally and professionally—yet bombarded with thousands of messages a day. Never has it been harder to keep their attention even long enough to read your company’s message, let alone act on it. Whether you’re writing your technology company’s website, sales or advertising material, or other promotional piece, the problem is the same. How do you break through the clutter, hold their attention and persuade your readers to do what you want them to do? It takes more than just finding the right advertising words. You also have to use the right marketing strategy.

Advertising writing and marketing technical writing to promote your technology company demands a vastly different skill set than writing systems documentation and other highly technical communications. Although both require an understanding of technology, the primary difference is the purpose of the communication: tech writing educates users; marketing tech and advertising writing sells the product or service to prospective buyers. To effectively write advertising and marketing communications for technology audiences, you need to translate technical points into simple language and build in strategic messages motivating your audience to act. That action could be to understand or form a favorable image of your company—or more likely, buy your products, services or stock, or provide capital investment.

Write effective promotional content for technology audiences, presenting key strategic messages that get results.

Writing promotional tech copy is different from any other type of writing—especially technical writing for documentation. True technical writing focuses on the technology process, how it works and all required information to implement, use, change, troubleshoot or fix the product or service—in depth, without editorializing. Promotional tech writing translates the technical aspects into a short overview telling the reader “what’s in it for me”, highlighting benefits and how the product will solve my problem, and help me reach my business goals better than competing products. It compares the product to others and contains a call to action (to buy, ask for a demo, etc.). And, it’s made appealing with attention-getting design. Advertising and marketing communications technical writing combines technology knowledge, marketing strategy and promotional writing skills.

 Unlikely publicity, a good one I like to use is this:

"You have permission to publish the article electronically or in print, free of charge, as long as the bylines are included and all links remain active. A courtesy copy of your publication would be appreciated."

Let's continue onto bylines. These are the couple of lines included at the end of article; this is what you get in return for allowing people to use your work. Pretty much the same as an email signature, the idea is to attract people to see, hear, visit your site or email you to find out more about your product. I usually use something like: focus on information.

When writing tech advertising and marketing publicity pieces, not allowing enough time to write and shape strategic messages will set you up for failure—or less effective messages at best. Recognize that the writing process will take longer than anticipated. Expect a lot of changes and revisions—especially when you have multiple reviewers. Allot blocks of uninterrupted time to devote full attention to writing. The more starts and stops, the longer it will take and the harder it will be. Don’t be tempted to borrow days from writing time for other steps. It’ll show in the end product.

In publicity, looks on the journalism science applied on the news values and article formula. The headline and the first sentence are the two most important parts of publicity. Make sure they are compelling enough to draw the editor or reporter in, use active verbs in headline, making them brief and to the point.

Develop a well-thought-out’ news hook,’ a persuasive reason for the news media to pursue a story. The news hook provides direction to the rest of the release.

In public relation writing, the ability to write easily, logically, and succinctly is vital in public relatios.the object of most pr writing is to grab the reader’s attention. Most press releases and other written communications for the media use an inverted-pyramid style, with the most important and relevant information at the top, followed by gradually less important information.Most people just want to start writing. They have a rough idea what they want to say and feel they can wing it. But before you ever touch a key (or heft a pen), keep in mind that:Decide who your audience is. Is your prospect an entire industry, a subsection or multiple industries? Do you want to reach actual users or a decision maker? Knowing who your primary audience is provides the foundation for your approach, message and language also.

Each communication medium reaches a different target audience. Know where your target audience would be and when it would be most receptive. Then determine which communication vehicle—or combination if you want to do a campaign—would best reach your particular target. Radio telivishen.news paper, magazine, Websites, e-letters, e-blasts, banner ads, blogs and other electronic forms of communication can reach your target audiences and be less expensive. Other times, print communications—ads, brochures, direct mail, etc.—are more effective.

Support your brand. Your brand is the total experience of your product or company in the marketplace—values, expectations, experiences and perception all rolled into one impression. It’s similar to the reputation and personality of a person. Create, nurture and protect the brand. If you don’t, prospects, buyers and competitors will create one for you. Your marketing people can help make sure that your promotional piece supports your brand, company image and marketing strategy.

Keep your message to key strategic points, briefly stated. Often  people try to include every single feature, overlooking what  the reader really wants to know: what the product is and does, its major benefits, how it helps solve their company’s critical problem, how easy it is to integrate and use, how it differs from competing products, the support provided after sale, available warranties, future upgrade intentions, and whether your company will be in business during the entire product or service life cycle. Too many points and points not made succinctly dilute the message—causing readers to leave without any messages registering.

Always create your game plan—an outline—before writing. It doesn’t have to be formal—with Roman numerals, letters and numbers, and full sentences. It simply can be topics and bulleted supporting phrases. Jot them down and arrange them in a logical order from introduction to conclusion. Fill in gaps and think about transition elements. This step shortens both writing and revision time, so don’t skip it.

A great message is worthless if it is—or it is perceived to be—difficult to read. In fact, research shows that people of all educational levels prefer to read well below their abilities. (Most daily newspapers are written for a fourth-grade level for easy comprehension.) Readers choose simpler over harder every time, so keep it simple. Bigger words and longer elements make your writing more difficult to understand. No one cares how intelligent you are—they only want to understand what you’re trying to say. So, use one- or two-syllable words, short sentences and brief paragraphs over longer ones whenever  you can. Simple writing makes topics and messages easier to read, more attention-holding, and more likely to persuade prospects to become buyers. Keep it simple.

Write for the medium. Each medium has a different writing style and format. Examples: To be effective, you can’t repurpose copy written for a brochure or direct mail piece as a web page, or lift letter wording for an ad. In these cases, copy needs to be written for the Web and as an ad, respectively.

Get inside the “head” of your target audience. Imagine you are having a conversation with the prospect. What would you say? How would you approach the subject? What would they want to know? Write it from their perspective, not your company’s.

Watch your tone. This is the manner in which you speak to the reader. Don’t be formal, talk down to your audience or bad-mouth competition. Your audience is reading between the lines to determine credibility and what it would be like to do business with you.

When Writing for publicity

When people see you as a provider of good information that they can use and profit from then your reputation and the reputation of your company becomes more credible. When this happens people will be more likely to buy your products and services or indeed the products or services you recommend them.

One of the best and fastest ways to get the name of your company and your own name spread on the radio, telivishen.news paper, web… is to begin writing articles for other ezines and websites or indeed just submit previously written articles to them.

If your articles are of good quality and informative then ezine and website publishers will be interested in them and your work could end up being published in endless ezine editions and hundreds of websites.

Not only will this increase your credibility but it could also result in 1000's more visitors, this is because at the end of all your articles which you allow others to publish will be a link back to your site. Don't forget also that if lots of your articles are published on websites then your link popularity will improve drastically. This in turn will result in higher search engine rankings in Google and the other engines which use link popularity as a ranking factor; this of course means lots more visitors and profit.If you're looking for a powerful way to get free publicity and build your credibility at the same time, then writing articles may be your answer.
If you've been on the Internet for a while, you've probably subscribed to a few ezines. Many ezine publishers will include an article written by a guest author. At the end of the article are a few lines of text about the author referred to as bylines or resource box. These lines of text are basically just an advertisement for the writer. They usually contain a couple of lines about the author and a web address.
The writer gives the publisher permission to publish their article, free of charge, in exchange for the publisher including the author's bylines. 

By writing articles and allowing them to be freely published, your articles will have the potential to be viewed by millions of Internet users. They may be published by several ezines with subscriber bases of a few hundred to several thousand. In addition, they may be displayed in ezine archives or on high traffic websites.

Reference.

Introduction: Writing For Public Relations University of Nevada, Las Vegas Spring 2010

“If I was down to my last dollar, I would spend it on public relations.” — Bill Gates But What Is A Public Relations Specialist? University of Nevada, Las Vegas Spring 2010

Public relations specialists are responsible for “the management function that maintains mutually beneficial relationships between an organization and the publics on whom its success or failure depends.” — Scott M. Cutlip But What Is A Public Relations Specialist? University of Nevada, Las Vegas Spring 2010

Public relations is “a package of trickery, economies with the truth, manipulation of public credulity, bullying of journalists and favoritism.” — Melanie Phillips But What Is A Public Relations Specialist? University of Nevada, Las Vegas Spring 2010

“A public relations specialist is an online celebrity for a company.” — prevailing thought But What Is A Public Relations Specialist? University of Nevada, Las Vegas Spring 2010

So what is it? What Is A Public Relations Specialist? University of Nevada, Las Vegas Spring 2010

Someone who... • Thinks like a journalist. • Acts like a business strategist. • Digs deeper than an investigator. • Writes with the passion of a novelist. • Speaks with the conviction of a communicator. • Exhibits empathy like a lead public advocate. • Demonstrates authenticity like a social worker. What Is A Public Relations Specialist? University of Nevada, Las Vegas Spring 2010

So why all the confusion? What Is A Public Relations Specialist? University of Nevada, Las Vegas Spring 2010

The profession is in a state of change. What Is A Public Relations Specialist? University of Nevada, Las Vegas Spring 2010

• The division of modern media. • The rapid pace of technology. • The evolution of distribution. • The speed of communication. • The infusion of different disciplines. The Profession Is Changing. University of Nevada, Las Vegas Spring 2010