THE CONTRIBUTION OF WOMEN MICRO-BUSINESSES TO HOUSEHOLD SURVIVAL IN KUMBA MUNICIPALITY

Abstract        

Most women in developing countries have the desire of setting up micro businesses but due to several problems like lack of finance, limited access to credit, limited access to market just to name a few has always been a barrier between them and their goals.

The current study sought to examine the contribution of women micro-businesses to household survival in Kumba Municipality. Specifically, the study sought to; establish the socio-demographic profile of women-owned micro-businesses, identify the different types of micro-businesses carried out by women, examine the different reasons for women’s involvement in micro-businesses, identify the benefits of women’s micro-businesses to women and their households and identify the factors affecting the functioning of women’s micro-businesses in Kumba Municipality.

In order to achieved these objectives, the study employed a descriptive survey design, using random sampling and convenience sampling techniques to sample 100 women with micro-business using structured-questionnaire.

Findings revealed that women are involved in micro businesses because it is easy to start, little capital is needed, lack of employment opportunities, the need to generate income and unsatisfactory experiences at workplaces. It was also revealed that women faced some major challenges such as high taxes, electricity failure, high responsibility for providing and catering for family and relatives, limited access to credit while and competition from their counterparts.

The study concluded that, women’s micro businesses contribute a lot to the growth of the household. Women get involved in these businesses so they can assist in the upkeep of their household. They contribute in household feeding, school fees for children and other household expenses and these has a great contribution to the household growth. It was suggested that the government of Cameroon should create public awareness among women to increase their participation in business development and management.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Globalisation and entrepreneurship are bringing new opportunities and challenges for women in the business world today. Dinga (2011) notes that though big corporations continue to be ruled by men, women are entering the new millennium by conquering the world markets through small and medium sized firms, being both their founders and managers.

Female   entrepreneurship is present to the largest extent in developed economies, enjoying the support of the authorities through different economic mechanisms, such as tax allowances and access to micro-credit lines. Adewumi et al., (2009) pointed out that while an increasing number of women in the Western world are running firms with considerable financial capital and developed business contacts in the world, the position of women entrepreneurs in developing countries is basically different.

In most parts of Sub-Saharan Africa, economic and social development has not benefited women relative to men. This has led to the rise of income-generating activities for and by women across the continent. The growing involvement of women in income-generating activities may be seen as an attempt to transform their livelihoods, long disregarded by men and policy.

According to Nachum, (2007) in most parts of sub-Sahara Africa, women have for a long time been confined to traditional women’s activities such as caring for children and working in the kitchen. To a large extent, men have remained the determinants of whether a particular enterprise will make a financial contribution to the family, or if the idea warrants investment by the community (Nachum, 2007). To some, women’s entry into business is a breach of age-old traditions that have perpetuated gender inequality. For women to engage in traditionally male-dominated small and medium enterprises, is, from a conservative point of view, rebellious on the part of women and threatens the very structure of society (Ayuma, 2009).

The question of how women actors find, identify or define new frameworks for their livelihoods in male-dominated small and medium enterprises was a core concern for this study. They have ventured into fields that were closed to them such as mechanics, engineering, driving, mending shoes, bus/matatu conducting, and security guards, among others. They have ventured into businesses such as selling building and construction materials, hardware stores, and meat, among others, thus indicating their ability to make decisions on investments (Wikham, 2007). This means that women are slowly but steadily breaking gender barriers in their quest to diversify livelihoods and stem over-reliance on their spouses.

Over the past two decades, women entrepreneurs have been recognized for their significant contributions to the socio-economic development of their countries. According to Food and Agriculture Organisation (2011). stated that depending on which economy is studied, between 21% to more than 39% of business owners are women. However, most of the literature on women in micro and small-scale businesses has focused on developed countries as limited knowledge exist on women entrepreneurs in developing countries (Chiplunkar and Goldberg, 2021).

Women entrepreneurs around the world are now making a difference in the sector of entrepreneurship as they contribute both pragmatic and feasible ideas. Besides, they inject a great deal of energy and capital resources into their communities hence creating massive job opportunities (Commonwealth secretariat 2002). According to Ziwadi and Mhangami (2011), women are the major actors in this sector and they contribute to the economic development in their areas of residence and are gradually becoming visible in the local economies of developing countries. Mass and Herington in 2006 stated that the growth in the total number of female entrepreneurs outnumbers male entrepreneurs and has led to a renewed focus on gender entrepreneurship.

Similarly, Mass and Herrington (2006) indicate that according to International Trade Center (2004), Canada has experienced a 200% growth in the number of women operating businesses over the last 20 years. Within the African context, taking Cameroon as an example, women entrepreneurs comprise 57% of small and micro-businesses (Bardasi et al., 2011). However, women-owned businesses are more to the economic development than they are today if countries try to address gender-related barriers properly.

While women are active in small and micro businesses, they face particular problems and challenges in developing their businesses and in addition to those problems and challenges; it is commonly asserted that women frequently face gender bias in the socio-economic areas in which they operate. They face different social, cultural, educational and technological challenges than men when it comes to establishing their enterprises and accessing economic resources (Abebe et al., 2020; Aneke et al., 2017).

Microbusinesses have been the source of income for many in recent years especially women, this is so because there is the ease of entry as sometimes it requires little or no formalities to be able to generate a micro business. Equally, because there are often very low or no skills to enable one to operate a small business so this has attracted most women with no source of livelihood to be able to engage themselves in these businesses and lastly because micro businesses require little capital to operate has been a pulling force to most women in this sector.

Women micro-entrepreneurs were largely invisible in early informal sector studies as opposed to recent years as it has been seen as the main form of employment for most people especially women as its contributions to the economy and families cannot be overemphasized. Microbusinesses have encouraged productivity and economic independence as these women’s entrepreneurial activities do not only have positive social repercussions for the women themselves and their social environment but a means of economic survival.

Since the late 1970s, there has been a growing interest in strategies to enhance the economic status of women through the promotion of micro-businesses in the informal sector due to the contributions that this has brought to the development of their countries (Bargotra et al., 2021).

In Cameroon with the justification of employment being a luxury just a few can afford with women toping in unemployment, they tend to be more engaged in micro-businesses in the informal sector by carrying out certain low-income entrepreneurial activities which mostly generate just a little income to take care of their immediate basic needs (Ako-Nai et al., 2010).

Women in micro-businesses in Cameroon cuts across a range of activities, that is, from petty traders in food crops locally known as ‘buyam sellam’, fruit vendors, restaurant operators, basic provision store operators, local beer parlour operators, telephone box operators among others. These women are generally found everywhere and are set to have different individual motivations and objectives for starting up their micro-businesses (Ndoyekeh, 2016).

Though micro businesses have over the years been seen as a very simple and easy thing to run because of their fewer complications and set advantages, it equally has its set constraints which have limited most women to engage in or efficiently carry out their businesses over a long period.

The World Summit for Social Development in 1995 gave central importance to poverty eradication, expansion of production employment, and full participation of the poor in entrepreneurship. The Summit recognized the empowerment of women as a precondition to development more especially as women form a majority of the poor. The Summit pledged action to achieve equality and equity between men and women in entrepreneurship (Reynolds et al., 1999). This is in line with African Development Bank’s Gender Policy that recognises women’s empowerment as a key to attaining poverty reduction and sustainable development (AFDB, 2010). At the same time, acknowledging the poor African woman for example as active agents and entrepreneurs who shoulder the primary responsibility for the well-being of their families.

Ndoyekeh (2016) examined women entrepreneurship in the yam marketing chain to address the profile and participation of women in the yam marketing chain in Fako Division revealed that the provision of household needs was considered as the main benefits achieved in selling yams. Special “njangi” groups were formed in which some of the profits earned could be saved purposely to be ploughed back into the business to ensure growth.

Dinga (2011) demonstrated that in Cameroon, high rate of poverty has forced women into entrepreneurial activities in the informal sector.  They engage in subsistence farming activities and low-income generating activities, while the poor urban women operate marginal enterprises in the informal sector. They carry out business just anywhere convenient to them and for the most part in unauthorised locations These women make an important contribution to economic and national development through the role they play in the process of production as farmers, hair dressers, seamstresses, restaurant operators, second-hand cloth vendors, food and fruit vendors, telephone call box operators, provision store owners and food crop entrepreneurs locally known as “buyam- sellams” which literally means those who buy to resell.

1.2 Statement of the Problem

Transforming the socio-economic status of women both within and outside their homes has been one of the major concerns of development practitioners (Boserup, 1970).

Women have been previously depicted as poor business managers. There has been an assumption that women were unlikely to manage profitable businesses as men do. However, emerging realities in urban areas where women are owners of big businesses (meat/butcheries, transport, schools, hardware, building and construction, etc.), seem to increasingly challenge this assumption.

The male dominance versus minority women actors in small and medium enterprises had feminine implications and affected women relative to men. Women, for instance, have to seek permission from spouses to pledge their property as collateral, harassment and withdrawal of spouses’ moral and financial support, unequal access to resources such as credit and forced to rely on merry-go-rounds, the decision on where to invest by their spouses, lacked self-confidence and ability (ILO, 2003).

Another common challenge or constraint in women’s businesses is the frequent confiscation of wares and harassment by city council law enforcers which often reduces their savings and profit margins due to paying bribes. Despite the significant importance of women’s micro-business activities, women entrepreneurs still encounter numerous problems which could range from limited capital in starting up a micro-business, no collateral to be able to obtain a loan to start up a business, required knowledge to run a business which might make the business not to last for long and equally some cultural constraints.

While there are many studies on constraints faced by women entrepreneurs in small and medium enterprises (1LO, 2003), studies on the contribution of women micro-businesses to household survival in South West Region of Cameroon have not been fully studied. Several interventions are carried out by a number of stakeholders to ensure that this sector plays its role fully. Both the government and the private sector are engaged in various efforts to improve and ensure the growth of women’s micro businesses.

Most women in developing countries have the desire of setting up micro businesses but due to several problems like lack of finance, limited access to credit, limited access to market just to name a few has always been a barrier between them and their goals.

In Cameroon, we have NGOs like Reach Out Cameroon, SHUMAS who give out micro loans to women’ groups and individual women who show the interest of setting up businesses to help them expand their businesses and equally organize training workshops to build up women’s capacity. Thus, the current study seeks to examine the contribution of women micro-businesses to household survival in Kumba Municipality.

1.3 Research Question

1.3.1 Main Research Question

What is the contribution of women micro-businesses to household survival in Kumba Municipality?

1.3.2 Specific Research Questions

1. What is the socio-demographic profile of women-owned micro-businesses to household survival in Kumba Municipality?
2. What are the different types of micro-businesses carried out by women in Kumba Municipality?
3. To examine the different reasons for women’s involvement in micro-businesses in Kumba Municipality.
4. What are the benefits of women’s micro-businesses to women and their households?
5. What are the factors affecting the functioning of women’s micro-businesses in Kumba Municipality?

Read: Gender Studies Project Topics and Materials