8

Business Business Problems Recommendatio

Profile of Encountered by Women n to Address the
Women Entrepreneurs Business
Entrepreneurs Problems of
Management Women
Marketing Entrepreneurs
Technical/Operationa
l

Figure 1. Conceptual Framework

Review of Related

Literature

The review of

related literature involves the systematic identification, location and analysis of

documents containing information related to the research problem. It serves as a

background for the study which guides the researchers.

Form of Organization. The self-employed entrepreneur is the type of

entrepreneur results from the establishment of new enterprise and the owner has

the business as his primary occupation. At the initial stage of the business, the

entrepreneur is both the self-employed and an entrepreneur. This type of

business includes hotel business, restaurant business, trading etc. The traditional

self-employed entrepreneur is type of entrepreneur exists when someone has

taken over and continues on running a personally owned enterprise and who is

not necessarily an entrepreneur. This type of entrepreneurs are usually found in

 9

the service, trade and in rural district culture in occupation such as farming,

building, construction, manufacturing and related occupation. (Grasfik 2000).

The Small Business Administration (SBA) conducted detailed research on

U.S. business from 1990 to 1998. The research drew from a number of

government agencies including the Internal Revenue Services Statistics (IRS) of

Income Division. The SBA and IRS crunched data specifically to see what

progress women were making on the privately-owned business field. The results

show that women are gaining in business ownership. The number of sole

proprietorships owned by women grew dramatically from 1990 to 1998 in

numbers, gross and net income. The number of sole-proprietorships grew from

5.6 million in 1990 (which was 33.5 percent of the total) to 7.1 million in 1998

(which was 36.8 percent of the total). Big gain in number, but only a slight gain as

a percentage of businesses in general. The SBA found that most womens sole

proprietorships 87 percent are quite small, with less than $50,000. The 13

percent that produced more than $50,000 per year accounted for two-thirds of

the receipts from women-owned sole proprietorships. Only 2.7 percent of

women-owned sole proprietorships produced $200,000 and above annually.

Also, 70 percent of women-owned sole proprietorships were in the service

industries. There are also statistics that indicate that women do not sustain a

business as long as men. The SBA shows that more than 50 percent of start-ups

are women-owned businesses. This has been the case for more than a decade,

yet the total number of women-owned businesses is only 28 percent (36.8

percent of sole proprietorships). This seems to indicate that women come in and
 10

out of business ownership. Again, stay-at-home moms with a part-time business

that is abandoned as kids mature could explain why the high number of women-

owned startups has not lifted the percentage of women-owned businesses

overall. (Rob Spiegel)

Concerning the form of the business venture, 35 percent were sole

proprietorship, while only 12 percent entered in general partnership. Another

interesting point revealed by this study is that more than 30 percent of the

businesses had no employees other than the women entrepreneur herself, and

42 percent had only one to four employees (Hisrich & Brush, 1984, p.33).

According to Chaganti (1986) the fact that women businesses remain small in

size is a way to ensure employee satisfaction.

A business generally assumes one of the three forms of organization

which includes the sole proprietorship, partnership and corporation. Sole

proprietorship is a business organization that has a single owner called the

proprietor who generally is also the manager. Sole proprietorships tend to be

small service-type businesses and retail establishments. The owner receives all

profits, absorbs all losses and is solely responsible for all debts of the business.

Partnership is a business owned and operated by two or more persons who bind

themselves to contribute money, property or industry to a common fund, with the

intention of dividing the profits among themselves. Each partner is personally

liable for any debt incurred by the partnership. Corporation is a business owned

by its stockholders. It is an artificial being created by operation of law, having the

rights of succession and the powers, attributes and properties expressly

 11

authorized by law or incident to its existence. The corporation is a separate legal

entity. (Ballada, 2015)

Type of Business. The different types of business in the Philippines

includes service type, manufacturing and trading. The service type provides

intangible goods or services to customers. It usually generates profit by charging

for labor or other services rendered to consumers, government or other

companies. It hires skilled staff and selling their time. Manufacturing businesses

converts raw materials, labors and overhead into finished products that are

available for sale to customers. It designs products, aggregating components and

assembling finished products. (Abrugar, V., 2011)

Women entrepreneurs are represented in all sectors of the economy, but

at some different degrees. They tend to a large extent to enter traditional female

sectors such as retail and services, even if a modest progress has been made in

women entering nontraditional fields such as manufacturing, finance and

construction (Bowen & Hisrich, 1986, p.402).

In South African women entrepreneurs engage in survivalist activities such

as sewing co-operatives, chicken farming, candle-making, gardening, arts and

crafts Mandipaka (2014). According to Akhalwaya and Havenga (2012), their

contribution in business is mainly located in the areas of craft, hawking, personal

services and retail sectors. It point out that only 41 percent of the adult women in

South Africa are part of the active working population. The TEA index (total early-

stage entrepreneurial activity index) measured the percentage of women

entrepreneurs between the ages of 18 and 64, involved in starting a business, at

 12

only 4.83 percent for South Africa. This is below the average of 7.72 percent as

calculated for all countries (Maas & Herrington, 2006).

According to Singh (2012:46), in the process of entrepreneurship, women

have to face various problems associated with entrepreneurship and these

problems are doubled because of their dual role as a wage earner and a

homemaker. The service sector, which now constitutes the biggest sector of the

global economy and accounts for an increasing proportion of global trade, and in

which many women-owned businesses can be found, suffers particularly from

statistical problems and underreporting. (Organization for Economic Co-operation

and Development, 2000). Global Entrepreneurship Monitor (GEM) 2005 confirm

that women participate in a wide range of entrepreneurial activities across the 37

GEM and their activities in different countries have paid off in form of many

newly-established enterprises for job and wealth creation. The role of

entrepreneurs as agents in the labor market for creation of employment, wealth

creation, poverty alleviation and provision of resources has helped tremendously

to increase the number of women owned entrepreneurial ventures in the world

(United Nations, 2006).

Although the small businesses owned by women have traditionally been in

the service sector, in recent years women entrepreneurs have been moving

rapidly into manufacturing, construction, and other industrial fields. Women

entrepreneurs are found in every sector of the Canadian economy, but are

largely concentrated in service industries. In 2001, four in five majority women-

 13

owned were found in service-based industries, compared with only 59 percent of

owned by men. (Christine Carrington, 2004)

Trading businesses purchase goods that are ready for sale and sell these

to customers. It includes retailing businesses which involves selling products and

services to consumers for their personal or family use. Retailers add value to

products by making it easier for manufactures to sell and consumers to buy.

Retailers also provide services that make it less risky and more fun to buy

products. They have salespeople on hand who can answer questions, may offer

credit, and display products so that consumers know what is available and can

see it before buying. In addition, retailers may provide many extra services, from

personal shopping to gift wrapping to delivery, that increase the value of products

and services to consumers. (Harris, 2000). And wholesaling businesses is a type

of business that buys products in bulk from one or more manufacturers and sells

them at prices that are typically lower than those available in retail outlets. A

wholesale business can specialize in one type of product, such as electrical

wholesaling, or offer a wide range of products to many different types of

customer. A wholesale business sells products at wholesale prices to business

and institutional customers -- such as other businesses, government agencies or

hospitals -- who use the products in their own day-to-day operations. (Linton,

2016)

Number of Years in Operation. The statistics indicate the first four to five

years are the "survival years." Each year, one out of 12 businesses in the United
 14

States closes its doors, but this rate is one in six in the first four to five years. A

recent study of new businesses in British Columbia found "there is no abnormally

dangerous year among the first five. By the same token, the risk of going out of

business does not lessen in any of the first five years." the first one to two years

are hardest for many, and specifically for certain industries, such as independent

(not franchised) restaurants and network marketers. It's also true that in a fast-

changing world, any business can be faced with survival issues at any age. New

technology, changing distribution patterns and shifting consumer tastes can all

bring a business' survival into question. For a home-based business, it's not

having a financial plan to cover family living expenses particularly during the first

two years. It takes time to develop and concentrate on marketing techniques that

produce business, to find a profitable mix of products--whether you offer products

or services and sometimes both--and to develop repeat and referral business.

Most people say everything takes longer than they expected. (Edwards, P and

Edwards, S., 2003)

According to Brush and Hisrich (1991, p.12) the typical woman

entrepreneur operating an established venture is 46 years old, married, has two

children over 20 years old and has operated her typically service-oriented

business for eight-years. She is college educated, usually in the area of liberal

arts, and has had occupational experience in the service area. Brush and

Hisrich (1991, p.10) emphasize that a nationwide investigation on women

entrepreneurs proves that the female business-owner is generally the first child
 15

of middleclass parents who engages in entrepreneurship first in the area of

service at the age of 35 after obtaining a liberal arts degree and raising children

At the moment of start-up the majority of the respondents had a good idea

of what they wanted their company to do and what type of clients they wanted to

attract. When asked about the size or growth they hoped their company would

achieve, a large proportion of the respondents said it is hard to know that in

advance. After start-up about one third of the respondents described an evolution

in growth ambitions that could be classified as minor to none. It is perfectly

possible for an entrepreneur to start with rather high growth ambitions, work

towards reaching this high growth in the following years and then continue on the

same pace. Approximately half of the respondents indicated they have

experienced one or more inhibiting factors at a certain moment which have

slowed down or hindered the growth process. The financial aspect was pointed

out most, both being able to find additional sources of finance and the high labor

costs. (Lieselotte Switten, 2013)

Successful ventures frequently follow a maturation process known as a life

cycle. The venture cycle life cycle begins in the development stage, and ends in

a maturity stage. The early-stage ventures which are new or very young firms

with limited operating histories. They are in their development, startup, or survival

cycle stages. Some ideas may take less or more time to develop, and the various

operating life cycle stages for a particular venture may be shorter or longer

depending on the product or service being sold. The first stage is the

development stage. During the development stage, the venture progresses from
 16

an idea to a promising business opportunity. Most new ventures begin an idea for

a potential product, service, or process. The development stage is depicted as

occurring during the period of -1.5 to -05 years (or about one year at most, on

average.) prior to market entry. The second stage is the startup stage, when the

venture is organized, developed and an initial revenue model is put on place.

This stage occur between years -0.5 to +0.5. In some instances, the process of

acquiring necessary resources can take less than one year. The third stage is the

survival stage where it occur from about +0.5 to +1.5 years, although different

ventures will experience different timing. During the survival stage, revenue start

to grow and help pay some, but typically not all, of the express. Consequently,

ventures in survival stage begin to have serious concern about the financial

impression they leave on outsiders. The fourth stage is the rapid-growth stage.

When revenues and cash inflows grow very rapidly. Cash flow from operations

grow much more quickly than do cash outflows, resulting in a large appreciation

in the ventures value.

This rapid-growth often coincides with years 1.5 to +4.5. Ventures that

successfully pass through the survival stage are often the recipients of

substantial gains in market share taken from less successful firms struggling in

their own survival stage. During this stage the value increases rapidly as

revenues rise more quickly than expenses. The last stage is the early-maturity

stage. When thw growth of revenue and cash flow continues, but at much slower

rates than the rapid-growth stage. Although value continues to increase

 17

modestly, most revenue value has already been created and recognized during

the rapid-growth stage. This stage occur around years +4 and +5.

Capitalization. One of the most difficult problems in the venture process

is obtaining financing. Available financing needs to be considered from the

perspective of debt versus equity and using personal funds, family and friends

and commercial banks as the funding source. Debt financing is a financing

method involving an interest-bearing instrument, usually a loan, the payment of

which is only indirectly related to the sales and profits of the venture. It requires

that some asset be used as collateral. Debt financing requires the entrepreneur

to pay back the amount of funds borrowed as well as a fee expressed in terms of

the interest rate. If the financing is short term, the money is usually used to

provide working capital to finance inventory accounts receivable, or the operation

of the business. Long term debt is frequently used to purchase some asset such

as a piece of machinery, land or a building, with part of the value of the asset

being used as collateral for the long-term loan. Equity financing does not require

collateral and offers the investor some form of ownership position in the venture.

The investor shares in the profits of the venture, as well as any disposition of its

assets on a pro rata basis. (Hisrich, R. and Peters, M., 2004)

Few, if any, new ventures are started without the personal funds of the

entrepreneur. Not only are these the least expensive funds in terms of cost and

control, but they are absolutely essential in attracting outside funding, particularly

form banks, private investors and venture capitalists. After the entrepreneur,

family and friends are the next most common source of capital. They are likely to
 18

invest due to their relationship with the entrepreneur. Family and friends provide

a small amount of equity funding for new ventures, reflecting in part the small

amount of capital needed. Commercial banks are by far the source of short-term

funds most frequently used by the entrepreneur when collateral is available. The

funds provided are in the form of debt financing and as such, require some

tangible guaranty or collateral some asset with value. This collateral can be in

the form of business assets, personal assets or the assets of the cosigner of the

note. (Hisrich, R. and Peters, M., 2004)

Most start-ups are grossly funded and struggle along, finding money

where they can. Start-ups normally begin with whatever money the entrepreneur

and other founders can scrape together from their own resources. The main

funding sources for the potential entrepreneur includes their own resources,

banks, business angels, credit cards and venture capital. First is their own

resources, entrepreneurs are their own best source of start-up money. In 1971

the Bolton Report on Small Firms found that self-financing was the main source

of funding for small businesses. (Bolton, 1971). In 1982 a study showed that

personal savings were the main source of funding for 56 percent of new

independent firms in the north-east of England (Storey, 1982). In 1986 a KPMG

study of 280 new technology-based businesses in the UK produced a similar

figure of 55 percent (Monck et al., 1988). The US study of 500 star start-ups

quoted above found that 78.5 percent had used their personal savings.

Entrepreneurs are the best providers of money because they have to be;

they simply cannot get it from anywhere else. Second is the bank. Banks say
 19

they would like to support more start-ups but that because they carry the risk

they have to be selective. They usually add that helping startups is not cost

effective because of the time it takes to evaluate and control them. Banks are risk

averse and many do not understand the start-up business. Third is the business

angels. They are individuals who want to use their wealth to invest in early stage

businesses. For some the motive is to make money but for many it is simply to

help the potential entrepreneur to get started. Fourth is the credit cards. The

credit card is an easy way to raise the money and no bank guarantees are

necessary. Although this sounds easy, heavy debts can soon cripple a business

and easy loans always have their downside. Lastly is the venture capital. Venture

capitalists get their money form pension funds, major institutions, universities and

wealthy individuals and invest it on their behalf. (Bolton and Thompson, 2013)

Business Problems of Women Entrepreneurs

Women Entrepreneurs have grown in large number across the globe over

the last decade and increasingly the entrepreneurial potentials of women have

changed the rural economies in many parts of the world. But this does not mean

that the problems are totally resolved. The following are related literatures that

are relevant to management, marketing, technical/operational and financial

problems.

Management. According to Mboko and Smith-Hunter, (2009) entitled

Women entrepreneurs in Zimbabwe, believe that entrepreneurs are good

leaders in the sense that they can motivate, encourage, influence, and supervise

employees in order to achieve goals. However, all the cases acknowledged the
 20

importance of knowledge of management and indicated that they have to learn

on the job. They further point out that management can be learnt through

experience through attending courses, and advocates for a combination of

experience and formal courses.

Management functions needed by an entrepreneur to accomplish the goal

in the business includes planning, organizing and staffing, leading and

controlling. Planning involves setting goals and figuring out ways of reaching

them. Planning is considered as the central function of management, pervades

everything a manager does. Decision making is usually a component of planning,

because choices must be made in the process of finalizing plans. The

importance of planning expands as it contributes heavily to performing the other

management functions. Strategic planning establishes master plans that shape

the destiny of the firm. Tactical planning translates strategic plans into specific

goals and plans that are most relevant to a particular organizational unit. The

tactical plans also provide details of how the company or business unit will

compete within its chosen business area. Operational planning identifies the

specific procedures and actions required at lower levels in the organization.

(Dubrin, 2014)

Planning offers several important benefits: intensified effort, persistence,

direction, and creation of task strategies. If planning is done right, it brings about

tremendous increases in individual and organizational performance. If done

wrong, it can have just the opposite effect and harm individual and organizational

performance. Despite the significant benefits associated with planning, it is not a

 21

cure-all. Plans wont fix all organizational problems. In fact, many management

authors and consultants believe that planning can harm companies in several

ways. The first pitfall of planning is that it can impede change and prevent or slow

needed adaptation. Sometimes companies become so committed to achieving

the goals set forth in their plans, or on following the strategies and tactics spelled

out in them, that they fail to see that their plans arent working or that their goals

need to change. The second pitfall is that planning can create a false sense of

certainty. Planners sometimes feel that they know exactly what the future holds

for their competitors, their suppliers and their companies. However, all plans are

based on assumptions. For plans to work, the assumptions on which they are

based must hold true. The third potential pitfall of planning is the detachment of

planners. Strategic planners and top-level managers are supposed to focus on

the big picture and not concern themselves with the details of implementation.

Plans are meant to be guidelines for action, not abstract theories. Consequently,

planners need to be familiar with the daily details of their businesses if they are to

produce plans that can work. (Williams, 2014)

Organizing is the process of making sure the necessary human and

physical resources are available to carry out a plan and achieve organizational

goals. Organizing also involves assigning activities, dividing work into specific

jobs and tasks and specifying who has the authority to accomplish certain tasks.

The staffing function ensures the availability of necessary human resources to

achieve organizational goals. Hiring people for jobs is a typical staffing activity. In

organizing side, manager engages in activities such as clarifying group members

 22

assignments, explaining organizational policies, rules and procedures, and

establishing policies, rules, and procedures to coordinate the flow of work and

information within the unit. Another is liaison which develops and maintains the

network of work-related contacts with people. To achieve this, the manager

cultivates relationship with clients or customers, maintains relationship with

suppliers, and join boards, organizations, or public service clubs that might

provide useful, work-related contacts. (Dubrin, 2014)

Leading means influencing others to achieve organizational objectives. As

a consequence, it involves energizing, directing, persuading others, and creating

a vision. Leadership involves dozens of interpersonal processes: motivating,

communicating, coaching, and showing group members how they can reach their

goals. Leadership is such a key component of managerial work that management

is sometimes seen as accomplishing results through people. The leadership

aspect of management focuses on inspiring people and bringing about change,

whereas the other three functions focus more on maintaining a stable system.

According to management guru Henry Mintzberg, effective leaders develop the

sense of community or shared purpose that is essential for cooperative effort in

all organizations. (Dubrin, 2014) An effective manager takes time to motivate and

coach group members. It offers encouragement and reassurance, thereby

showing active concern about the professional growth of group members. It also

provides feedback about both effective and ineffective performance, and giving

group members advice on steps to improve their performance. Aside from that, a

key aspect of a managers role is to build an effective team. Activities contributing

 23

to this role include, ensuring that group members are recognized for their

accomplishments and holding periodic staff meetings to encourage group

members to talk about their accomplishments, problems, and concerns.

Managers who work in large organizations have some responsibility for

suggesting innovative ideas of furthering the business aspects of the firm. Those

activities such as talking with customers or others in the organization to remain

abreast of changing needs and requirements, reading trade publications,

newspapers, and searching the Internet to remain up-to-date, and becoming

involved outside the unit that could result in performance improvements within

the managers unit constitutes of being an entrepreneur. (Berrett-Koehler,2009)

Controlling generally involves comparing actual performance to a

predetermined standard. A secondary aspect of controlling is determining

whether the original plan needs revision, given the realities of the day. The

controlling function sometimes causes a manager to return to the planning

function temporarily to fine-tune the original plan. (Dubrin, 2014) In an article by

Bossidy and Charan (2002) entitled The Discipline of Getting Things Done, the

monitor role fits the controlling function precisely, because the term monitoring is

often used as a synonym for controlling. By developing systems that measure or

monitor the units overall performance, using information systems to measure

productivity and cost, and talking with group members about progress on

assigned tasks are some ways of monitoring. The role of disturbance handler is

categorized under controlling because it involves changing an unacceptable

 24

condition to an acceptable stable condition like resolving complaints from

customers or other units, resolving conflicts among group members.

While the number of firms owned by women may be much greater than

statistics reveal, Carer and Shaw find that where UK firms are wholly or majority

owned, women still comprise a substantially lower proportion of business owners

than men. This is reflected throughout the developed world. The last few years,

female entrepreneurship has been growing at a higher rate than male

entrepreneurship. This is seen as a positive trend and governments are keen to

support and increase this trend in order to contribute to the economic base,

provide employment and particularly female employment. (Deakins, D. and Feel,

M. 2010).

According to Philippine Commission on Women (2013), the constraints

that women faced are their lack of social preparation and technical skills. Many

women venture into business without a thorough market analysis and feasibility

study of the enterprise to be set up. A common observation among aspiring

entrepreneurs is the tendency to avail themselves of government financial

assistance or dole- outs, despite their lack of skills and technical and social

preparation to do so. Experienced entrepreneurs also point to the lack of

business discipline and low level of interest of women to experiment and learn

new things to improve their products. They have very little incentive or interest to

be competitive and expand their markets.

Another problem encountered in managing aspect, as mention by Mishra

& Kiran (2012), that there are limited managerial ability. Management has
 25

become a specialized job which only efficient managers perform. Due to lack of

proper education women entrepreneurs are not efficient in managerial functions

like planning, organizing, controlling, coordinating, staffing, directing, motivating

etc. of an enterprise. Therefore, less and limited managerial ability of women has

become a problem for them to run the enterprise successfully. Lack of proper

education, training and financial support from outsides, and lack of

entrepreneurial aptitude also reduce their ability to bear the risk involved in an

enterprises.

Marketing. Marketing in the growth stage of a new venture is also critical

to a ventures continued success. As the company grows, it will need to develop

new products and services to maintain its distinctiveness in a competitive market.

This should be an ongoing process based on information regarding changing

customer needs and competitive strategies. This information can be obtained

formally using surveys or focus groups, or informally by direct contact with

customers by the entrepreneur or his or her sales force. Some entrepreneurs

have found that occasional travel with the sales force to key accounts can be

very revealing and often lead to ideas for new products. (Hisrich, R and Peters,

M. 2004)

In a small entrepreneurial growing venture it is difficult to engage in some

of the more formal procedures for developing new products because of the lack

of people and financial resources. Key employees, customers and channel

members should be utilized in the preparation of the marketing plan. Once the

plan is prepared, it needs to be implemented and monitored to ensure that the

 26

goals and objectives will be met. Sharing the marketing plan with employees,

particularly sales representatives, is important in getting it implemented

effectively. (Hisrich, R and Peters, M. 2004). Other trends found for women

owned firms include that most of their markets are local with a small minority

involved in export and they are often smaller scale than male-owned firms.

(Deakins, D. and Feel, M., 2010).

Firms perform specific activities designed to persuade the prospective

customers to buy their products. Personal selling will help the prospective buyer

in making his purchasing decision. Personal selling refers to the direct face-to-

face communication between sellers and prospective buyers. This is an attempt

to communicate on a person-to-person basis with the object of making sales.

(Medina, 2014).
As mentioned in an article entitled Women Entrepreneurs by Ruprah

(2014) marketing involves various stages such as assembling, storing,

transporting, financing and negotiating the sales etc. There is a complex set of

institutions which make up the marketing structure. When thus structure is

efficient, it increases efficiency. Women entrepreneurs have to buy the inputs and

sell the finished products, but due to lack of mobility they have to depend upon

the middle and brokers, who enjoy all the profit. Again the women entrepreneurs

fail to reap the profits, which is another hurdle. In the absence of proper

advertisement, and sales promotion activities, she fails to sell the products at the

market at responsible prices.

According to the UNECE (2004), the ability to tap into new markets

requires expertise, knowledge and contacts. Women often lack access to training

and experience in on how to participate in the market place and are therefore
 27

unable to market goods and services strategically. Thus, women-owned SMEs

are often unable to take on both the production and marketing of their goods. In

addition, they have often not been exposed to the international market, and

therefore lack knowledge about what is internationally acceptable. The high cost

of developing new business contacts and relationships in a new country or

market is a big deterrent and obstacle for many SMEs, in particular women-

owned businesses. Women may also fear or face prejudice or sexual

harassment, and may be restricted in their ability to travel to make contacts.

Based on an article titled Women Entrepreneurs & Problems of Women

Entrepreneurs by Bharthvajan (2014), states that a lack of sales and marketing

skills was the most commonly reported problem faced by female entrepreneurs,

after finance. The fact that this is a characteristics shared with many other micro

enterprises and small firms does not make it any less important to female

entrepreneurs. It may be seen as part of a general need to raise the level of

management skills and competencies in female owned and other small

businesses.
According to Ferrell and Hartline (2008), one of the problems encountered

in marketing is the astounding growth of the Internet has shifted power to

customers, not marketers. Rather than businesses having the ability to

manipulate customers via technology, customers often manipulate businesses

because of their access to information and ability to comparison shop. Individual

consumers and business customers can compare prices and product

specifications in a matter of minutes. In many cases, customers are able to set

their own prices. Customers can now interact with one another because
 28

merchants such as Amazon and eBay allow customers to share opinions on

product quality and supplier reliability. As power continues to shift to customers

marketers have little choice but to ensure that their products are unique and of

high quality, thereby giving customers a reason to purchase their products and

remain loyal to them. Another problem is the massive increase in product

selection. The variety and assortment of goods and services offered for sale on

the Internet and in traditional stores is staggering. In grocery stores alone,

customers are faced with countless options in the cereal and soft-drink aisles.

The vast amounts of information available online has changed the way we

communicate, read the news and entertain ourselves. This radical increase in

product selection and availability has exposed marketers to inroads by

competitors from every corner of the globe. One of the greatest frustrations and

opportunities in marketing is change customers change, competitors change

and even the marketing organization changes. Strategies that are highly

successful today will not work tomorrow. Customers will buy products today that

they will have no interest I tomorrow.

Problems encountered by entrepreneurs also includes the marketing

strategy. Most entrepreneurs dont know the best way to market their products

and services: print, online, mobile, advertising, etc. (Morris, 2014). Many of the

women enterprises have imperfect organizational set up. But they have to face

severe competition from organized industries. (Jain, 2013)

The consumer-marketer relationship is changing. The evolution of media

culture has hit a new point, and marketers can no longer rely on long product

descriptions to make their point. The relationship between marketer and

 29

consumer has changed the sense that marketers must work harder and harder to

both make and maintain these connections. Content marketing innovators must

develop new strategies and approaches that enable their businesses to develop

better relationships with consumers. Everyone is producing content. Getting your

ideas out there is no longer a problem; anyone with Twitter and a smartphone

can generate content that competes with yours. Streamlining your products and

connecting with your audience is vital so is getting your content seen in the first

place. (Patel, 2016)

The concerns most often said from small business owners in marketing

are the lack of resources (budget/people/time), increasing visibility or generating

quality leads, choosing the right social media platforms for the business,

producing and delivering content takes a lot of time and keeping up with trends

and technology. Solving the majority of marketing challenges is accomplished by

creating a simple marketing plan to guide your efforts based on your resource

constraints and schedule your time. Small businesses and solo professionals

have resource constraints. We normally lack people, rarely have a huge budget.

With many marketing strategies available, trying to do it all is overwhelming.

Keeping up with trends and technology is a much harder challenge for small

business owners. The rate of change in marketing tools and technology is

staggering. (Murphy, 2015)

Marketing is probably the most important expenditure for any business.

Without it, your target market may never know about you, your products or why

buying form you is preferable to the competition; thus your product or service

goes unnoticed and unpurchased. Marketing for the small-scale businesses has
 30

its challenges which must be overcome for the business to succeed. One

problem of marketing for a small-scale business is transportation. A large-scale

business can buy an item in bulk which saves money. A small-scale business

may not have the money or demand to order such quantity, which raises item

cost and causes a marketing issue on how a small company sell the same item

as its competition at a higher price and remain competitive. The financial problem

facing small-scale marketing efforts is the cost of advertising. Running a full-page

newspaper ad or TV commercial is no financial hardship for certain large

businesses. However, such costs are obviously prohibitive for small-scale

businesses. Thus, many will circumvent this dilemma through forming co-ops to

split advertising costs or using local advertising and word-of-mouth. (Writing,

2013)

Technical/Operational. Knowledge of latest technological changes,

know-how, and educational level of the person are significant factor that affect

the business. Many women in developing nations lack the educational needed to

spur successful entrepreneurship. They are ignorant of new technologies or

unskilled in their use, and often unable to do research and gain the necessary

training. Although great advances are being made in technology, many womens

illiteracy, structural difficulties, and lack of access to technical training prevent the

technology from being beneficial or even available to female (Santhi,2012).

An article by Jinrong and Rahman (2012), entitled Women Entrepreneurs

Development in Bangladesh: What are the Challenges Ahead? states that SME

owners generally use local technologies to produce goods but these are not
 31

productive enough to fulfill market demand, produce quality/ beautiful products to

compete with the international products available in the local market. As a result,

SME entrepreneurs are losing their livelihood due to poor technical know-how.

According to Tiwari, (2007) entitled Women Entrepreneurship and

Economic Development, states that women entrepreneurs should know how to

use of the modern technology because effective use of information technology,

help in assimilating information about variety, range and quality of products, and

marketing of products and services. They should have knowledge about it so that

they could handle and be equipped in using plant, equipment and machinery and

functioning of different process.

Based in a journal by Holloway (2009), entitled The Best Things in Life

Are Free. Entrepreneur states that access to technology and knowledge about

multiple programming languages and computer skills has also helped smaller

firms compete. It gives small business the opportunity to put themselves out

there and really compete with larger companies. Sophisticated computer

software, once accessible only to large businesses, is now available at prices

small firms can afford.

Technical skills reflect specific practical knowledge and often pertain to

mechanical or scientific subjects. This is attained from training and through

experience in a field. (Mack, 2016).

Costs reduced by appropriate technological innovation by the firm include

labor costs, cost of waste, costs of carrying too much inventory, and utility costs.

Technology can also provide the controls necessary to reduce product defects
 32

and service failures, eliminating waste at the same time. It can also be used to

improve the quality of goods and services. In many services, process behind the

line of visibility can be automated to increase processing speed and provide

quicker service. With this entrepreneurs can respond quickly and with greater

flexibility in a business environment that continues to increase its amount of

outsourcing and better communication with suppliers. (Fitzsimmons and

Fitzsimmons, 2000)

As mentioned in an article entitled Issues and Challenges of Women in

Micro Entrepreneurship by Pushpalatha (2013), women in various sectors of

economic and commercial activities like manufacturing, trading, and service

sectors face so many problems like lack of available raw materials and acquiring

plot/shop. Availability of raw materials is one of the biggest problems of the

manufacturing sectors related to garment industry, aromatic oil manufacturers,

beauty product manufacturers, food processing sector and bakeries where

women face lots of problems due to delay or availability of raw materials. Also

acquiring plot/shop is the problem generally faced by service sectors because it

is associated with location that affects the business, delay in obtaining

permissions from urban department to get shed allotment and also faces

problems in getting a plot nearer to home.

Management of inventory is an important cost control and customer

service activity that needs to be carefully monitored. Too much inventory to meet

customer needs can be a drain on cash flow since manufacturing, transportation,

and storage costs would be assumed by the venture. While, too little inventory
 33

can also cost the venture in lost sales or it can create unhappy customers who

may choose another firm if their needs are not efficiently met. Transportation

modes, such as the use of air, are very expensive. Rail and truck are the most

often used sources of transportation when a next-day delivery for a customer is

not necessary. Careful management of inventory through a computerized system

and by working with customers and other channel members can minimize these

transportation costs. Anticipating customer needs can avoid stock outs and the

unexpected costs of having to meet a customers immediate need by shipping a

product by next-day air. (Dubrin, 2014)

Inventory management is particularly important in small retail or wholesale

business, because inventory typically represents a major financial investment by

these businesses. The company may need more inventory to satisfy customers,

but it will want to maintain less inventory to keep the companys balance sheet

healthy. (Zipkin, 2000)

According to Petty, Palich, Hoy, and Longenecker (2012), entitled

Managing Small Business an Entrepreneurial Emphasis, states that in most

small businesses, inventory records are computerized. Small firms should

emphasize simplicity in their control methods. Inventory checks can be carried

out in different ways. A physical inventory system a method that provides for

periodic counting of items in inventory that is done in physical units, such as

pieces, gallons, or boxes; and a perpetual inventory system provides an ongoing,

current record of inventory items and does not require a physical count.
 34

In an article entitled The Influence of Power Driven Buyer/Seller

Relationships by Benton and Maloni (2005), the quality of a finished product

depends on the quality of the raw materials used. If a well-managed production

process is used, excellent products will result. Purchasing also contributes to

profitable operations by ensuring that goods are delivered when they are needed.

Failure to receive materials, parts, or equipment on schedule can cause costly

interruptions in production operations. In a retail business, failure to receive

merchandise on schedule may mean a loss of sales and, possibly, a permanent

loss of customers who were disappointed.

Based in an article entitled What Whole Package by Tiffany (2008), part

of the preparation of a product is packaging. Packaging is another important part

of the total product offering. In addition to protecting the basic product, packaging

is a significant tool for increasing the value of the total product. Though it seems

like a straightforward decision, financial constraints often prevent small

businesses from pursuing creative packaging strategies that would boost sales.

Entrepreneurs who simply cannot afford the expensive equipment required for

such packaging innovations should not immediately write off the options.it

certainly pays to consider what goes on the outside of your product, not just

whats in.

Very few business owners have any formal training in how to set the

prices for the products and services they sell. Many times, their prices are based

on what competitors are charging, some percentage above their costs, or just

some instinctive feel. Price determination must also consider market

 35

characteristics. Pricing strategies that reflect these additional considerations

include: Penetration pricing which sets lower than the normal prices to hasten

market acceptance. Skimming pricing that sets at a very high price for a limited

period before reducing them to more competitive levels. Follow-the-leader pricing

use a particular competitor as a model in setting prices. Variable pricing is setting

more than one price for a product or service in order to offer price concessions to

certain customers. Dynamic (personalized) pricing charge more than the

standard price after gauging a customers financial means and desire for the

product. (Collin, 2011). Price lining establishes distinct price categories at which

similar items of retail merchandise are offered for sale. (Hair and McDaniel,

2008)

According to Kumar (2001) entitled Entrepreneurship in Small Industry

states that when women entrepreneurs need to be aware of the factors that can

assist them in their pricing decisions. They need to consider the consumers

ability and willingness to pay a premium for the product offering, if the consumer

cannot afford the product they will not purchase even if the quality is good. Price

setting is influenced by competitor information and macro environmental factors

such as fuel prices and inflation.

Lean experts typically view 3P (Production, Preparation, Process) as one

of the most powerful and transformative advanced manufacturing tools. 3P

focuses on eliminating waste through product and process design. The goal is to

develop a process or product design that meets customer requirements best in

the least waste way. Elimination of waste is the top priority such as: defects are
 36

costly because they have to be repaired or scrapped, overproduction must be

stored and may never be sold, transportation can be minimized by locating close

to suppliers and customers, waiting can be wasteful, inventory in excess, motion

whether by product, people, or machinery can be wasteful, and processing itself

is wasteful if it is not productive. However, low amount of inventory also leads to

a variety of benefits, ranging from capital efficiency to a smooth production

process. (Cant, 2016)

As mentioned by Garner&Garner (2005) in their book entitled Managing

Businesses: Strategic Planning, Personnel and Finances, states that part of a

company strategy is the operational plan that describes how the strategy

(mission, goals, and objectives) will be achieved. This will become a basis for the

operation manual that contains policies, rules and regulations. Company policies

are codes of conduct that follow rules as well as good business practices. The

creation of company policies is a lot of work, but it is necessary to protect the

owners and resources of the company and in order to comply with legal

expectations.

Financial Problems. Maintaining good records and financial controls over

such activities as cash flows, inventory, receivables, customer data and costs

should be a priority of ever growing venture. In order to support this effort it is

helpful to consider using a software package to enhance the flow of this type of

information. With a growing venture it is sometimes necessary to enlist the

support and services of an accountant or consultant to support record keeping

and financial control. (Hisrich, R and Peters, M 2004).

 37

A special report of the Global entrepreneurship Monitor, the 2010 womens

Report 179 concludes a key challenge for women entrepreneurs in early

development stage economies is sustaining their business beyond the start-up

and early phases. (Kelley et, al. 2011).

Good record keeping is an essential part of running a successful business.

Accurate, organized records make it quicker to prepare your accounts at year-

end, help you monitor your companys cash flow and unsure you are tax efficient.

They contain information about salaries and dividends and help you to keep on

top of all business expenses. This then reduces the amount of profit you will pay

tax on. (Turton, 2015)

Financial statement analysis is also an essential skill that needs by an

entrepreneur specifically for women entrepreneurs. This refers to the process of

understanding the risk and profitability of a company by analyzing reported

financial information, especially annual and quarterly reports. It is a quantifying

method for determining the past, current, and prospective performance of a

company. This provides an idea to the investors in a business about deciding on

investing their funds to it. An entrepreneur can use this to analyze its own

performance over a specific time period. (Sullivan, 2013)

In an article by Amatucci and Crawley (2011) entitled Financial Self-

efficacy Among Women Entrepreneurs, postulate the possibly on of the less

glamorous aspects of entrepreneurship, financial management is necessary for

successful launch and operation of a small business. They contend the

 38

weakness or discomfort in this area of management may translate into key areas

or errors in judgment that can be fatal to the business.

Accounting for and documenting exact worldwide figures on women in

entrepreneurship remains elusive but there is no doubt that the womens place

as part of the entrepreneurial field is becoming more relevant. (Mboko and Smith-

Hunter, 2009)

An accountant can also be particularly helpful to nascent women

entrepreneurs who may lack confidence in their own financial abilities. He or she

can help prepare financial statements and other documents required to apply for

a loan and can even accompany the entrepreneur when she goes to the bank to

seek funding. The fact that the firm has financial statement prepared by an

accountant may increase a banks willingness to advance funds. (Coleman and

Robb, 2012)

As mentioned in an article entitled Rural women Entrepreneurs: Concerns

and Importance Mishra&Kiran (2012), women entrepreneurs have to suffer a lot

in raising and meeting the financial needs of the business, bankers, creditors,

and financial institutes are not coming forward to provide financial assistance to

women borrowers on the ground of their less credit worthiness and more

chances of business failure. They also face financial problem due to blockage of

funds in raw materials, work-in-progress finished goods and non-receipt of

payment from customers in time.

According to the Philippine Institute for Development Studies, Policy Notes

(2015), access to credit and financing of women in the informal economy and
 39

MSMEs are not served by the government financial institutions and microfinance

institutions due to the high cost of service delivery and their stringent

requirements that are below the capacity of women to meet. These requirements

include the minimum loanable amount, quality of collateral, repayment terms,

number of years of business experience, submission of business plans, and

consent of the husband. Issues of over indebtedness, multiple borrowing, and

credit burden affect the capacity to access services.

Some owners do not have the skills such as bookkeeping, financial

management, inventory management, personal management, and basic

marketing hence most business owners end up losing their expenses and profits

at the end of the month. About 60 percent of the women perceived controlling

expenses, cash flow planning, and forecasting were major problems. (Okpara,

2011)

Based on an article by McGee (2003) entitled Breaking Free From

Budgets, she points out some women entrepreneurs do not keep

records/accounts nor do they have bank account. They end up spending their

capital because they cannot differentiate between their capital and profit.

According to McLeary (2000) entitled Accounting and Its Business

Environment, states that even smallest business nowadays can justify the use of

a computer by using a computerized accounting systems or maintaining their

financial records on a computerized system. It is much faster, not only in

processing but also in the amount of labor which is saved. Invoices, receipts and

credit notes are prepared on the computer, which immediately posts the amounts
 40

and in their transaction lists compared in a manual system, the bookkeeper

would have to perform five separate operations.

Computerized systems also allow accountants to create trending analysis

and report any variances quickly and accurately. It also gives them a better

access to financial information. A typical computerized accounting system will

offer a number of different facilities such as automatic updating of suppliers

accounts in the purchase ledger, recording of bank receipts, automatic updating

of customer accounts in the sales ledger, etc. (Parameswaran, 2008)

In an article entitled Information Needs of Female Entrepreneurs by

Nelson (2007), women entrepreneurs need to undertake training in various

aspects of financial management to understand its finer implications. A proper

project profile may also be prepared with the help of appropriate financial

management trainings.

As mentioned in an article entitled Budgeting: Planning for Success by

Walther and Skousen (2010), it says here that in small organizations, formal

budgets are actually a rarity. The individual owner likely manages only by

reference to general mental budget. The person has a good sense of expected

sales, costs, financing, and asset needs. When things don not go well, the owner

can usually take up the slack by not taking a paycheck for engaging in some

other form of financial exigency. Of course, many small businesses ultimately fail

anyway. Explanations for failure are many and varied, but are often pinned on

undercapitalization or insufficient resources to sustain operations. Even in a

small business, an authentic business plan/budget can often result in anticipating

 41

and avoiding disastrous outcomes. The budget provides a formal quantitative

expression of expectations. It is an essential facet of planning and control

process. Without a budget, an organization will be highly inefficient and

ineffective.

Most firms of any size need both working capital and fixed assets. The

amount and types of assets required will vary, depending on the nature of

business. Net working capital is a measure of a companys liquidity- that is, the

greater a firms net working capital, the greater its ability to pay on any debt

commitment as it comes due. Too frequently, small business owners tend to

underestimate the amount of capital the business requires. Without the money to

invest in assets, they try to do without anything that is not absolutely essential

and to spend less money on essential items. (Brewer, Garrison,Noreen, 2016)

According to Dennis (2011), in his article entitled Small Business Credit in

a Deep Recession, he says that an entrepreneur must decide whether to sell on

credit or for cash only. In many cases, credit selling cannot be avoided, as it is

standard trade practice in many types of businesses. Although a seller always

hopes to increase profits by allowing credit sales, it is not a risk-free practice. For

a variety of reasons, a small business may or may not decide to sell on credit.

Factors related to the entrepreneurs decisions are the type of business, credit

policies of competitors, customers age and income levels, the availability of

working capital, and economic conditions. A survey conducted by he National

Federation of Independent Business in 2010 reported that most small business

 42

owners suffered sales decline, which may trigger offers of credit terms to boost

sales.

In an addition to Petty, Palich, Hoy, and Longenecker (2012), says that

most credit customers pay their bills on time if the creditor provides them with

information verifying their credit balance. Failure on the sellers part to send

invoices delays payments. Overdue credit accounts tie up a sellers working

capital, prevent further sales to the slow paying customer, and lead to losses

from bad debts. A firm extending credit must have adequate billing records and

collection procedures if it expects prompt payments. There are people who will

intentionally abuse a relationship and drag out or even refuse to make a

payment. Many have found that the most effective collection consists of series of

steps, the process has started with a gentle reminder: subsequent steps may

include additional letters, telephone calls, registered letters, personal contacts,

and referral to a collection agency or attorney.

According to United Nations Conference on Trade and Development

(2009) Accounting and Financial Reporting Guidelines for Small and Medium

Enterprises, it says that IFRS may not be suitable for smaller enterprise referred

as microenterprises, ISAR has developed a set of guidelines-Level 3- which meet

the needs of those enterprises that do not produce general purpose financial

statements. Such enterprises should generally follow a simplified accruals-based

accounting system that is closely linked to cash transactions. The income

statement and the balance sheet are based on a simplified accruals accounting

approach. This guidance uses the historical cost measurement basis. Thus, it is
 43

recommended that ownermanagers keep cash records that will be a source of

primary entry for the financial statements. These records will be an important

component in the financial management of Level 3 enterprises.

As mentioned by Thompson and Bolton (2002), Entrepreneurs, says

there are for keys in assessing the growth potential; strategy, structure,

operations, and finance and performance. In finance and performance it must

both have the availability of capital or funds for investment and the ability to

maintain ready cash for the purchase of raw materials, goods and supplies.

Review of Related Studies

This covers information from a specific studies found to be relevant in the

conduct of the present study, the skills and business problems encountered by

women entrepreneurs in General Santos City in terms of personal and business

profile of women entrepreneurs, the skills used and business problems as to

management, marketing, technical/operational, and finance.

Foreign Studies

A study conducted by Wube (2010), on Factors Affecting the Performance

of Women Entrepreneurs in Micro and Small Enterprises was designed to

assess the factors that affect the performance of women entrepreneurs in MSEs.

It also addressed the characteristics of women entrepreneurs in MSEs and their

enterprises and the supports they acquire from TVET colleges/institutes. A

sample of 203 women entrepreneurs engaged in 5 sectors was taken for the

study using stratified and simple random sampling. In the process of answering
 44

the basic questions, a questionnaire that include demographic profiles,

characteristics of women entrepreneurs and their enterprises, factors that affect

the performance of women entrepreneurs. Interviews were held with top officials

of MSEs, micro finances and TVET educators. After the data has been collected,

it was analyzed using simple statistical techniques and descriptive statistics.

The results of the study indicates the personal characteristics of women

entrepreneurs in MSEs and their enterprise affect their performance. It also

shows that lack of won premises, financial access, stiff competition, inadequate

access to training, access to technology and access to raw materials were the

key economic factors that affect the performance of women entrepreneurs in

MSEs. The study also found that conflicting gender roles, social acceptability and

network with outsiders were the major social factors that affect these

entrepreneurs. Furthermore, the main legal/administrative factors include access

to policy makers, high amount of tax and interest, bureaucracies and red tapes,

and over all legal and regulatory environments.

A study conducted by Tambunan (2009) on Women entrepreneurship in

Asian developing countries: Their development and main constraints aimed to

examine recent developments of women entrepreneurship in Asian developing

countries. The main aim of this paper is to examine women entrepreneurship

development in Asian developing countries. The study focuses on women

entrepreneurs in SMEs. Greater opportunities for women to become

entrepreneurs will help much in poverty reduction. Methodologically, the study is

based on a review of key literature and a descriptive analysis of secondary data,

 45

form government sources as well as from International Labour Organization (ILO)

or form individual case studies, on women entrepreneurs in Asian developing

countries. The study only covers all member countries of the Association of

Southeast Asian Nations (ASEAN), China and some countries in the South Asia

including India and Pakistan.

The study concluded that SMEs are of overwhelming importance in Asian

developing countries, as they accounted, on average, for more than 95% of all

firms, thus the biggest source of employment, providing livelihood for over 90%

of the countrys workforce, especially women and the young. Women

entrepreneurs are mainly found in MIEs that is, traditional and low income

generating activities. They choose MIEs simply because this economic activity is

characterized by an easy entry and exit, and low capital, skills and simple

technology requirements. Majority of women entrepreneurs in the region were

not drawn to entrepreneurship by pull factors, such as the need for a challenge,

the urge to try something on their own and to be independent, to show others

that they are capable of doing well in business, to be recognized by the society

(self-esteem), hobby or to use spare time, but by push factors such as poverty,

unemployment, the need to have more cash income to support the family daily

expenditures, and precaution motives. This may suggest that when women in the

region are better educated and have greater well-paid employment opportunities,

their participation in SMEs may decline. The relative low representative of

women entrepreneurs can be attributed to many factors including low level of

education and lack of training opportunities that make women severely

 46

disadvantaged in both the economy and society, heavy household chores, legal,

traditions, customs, cultural or religious constraints on the extent to which women

can open their own businesses, lack of access to formal credit and other

facilities.

A study conducted by Sabri (2015) From Invisibility to Visibility: Female

Entrepreneurship in Afghanistan which focuses on female entrepreneurship in

Afghanistan as a relatively new phenomenon in the country. It captures women

entrepreneurs lived experiences and investigates their motivations, the factors

affecting their businesses, the challenges they face, and their survival strategies.

It also explores entrepreneurships impacts on womens lives, particularly

affecting their ascribed gender roles and contributions to social transformation.

The findings of the research is based on qualitative interviews with 19 female

entrepreneurs in Afghanistan which suggests that female entrepreneurship could

be an effective way of involving women in social and economic development. The

research also contributes to womens empowerment and increases job

opportunities for other women. It also has the potential to address womens

previously unmet needs. The researcher argues that in conservative societies,

entrepreneurship brings about social change by normalizing womens presence

in the public sphere, particularly in business and therefore it should be supported

and promoted.

A study conducted by Dzisi (2008) Women Entrepreneurs in Small and

Medium Enterprises (SMEs) in Ghana which focuses on female

entrepreneurship in a developing country context. Particularly, it investigates and

 47

describes the nature and construction of entrepreneurship by Ghanaian women

in the cultural, socio-economic and political environment of Ghana, which shapes

these womens entrepreneurial life. As this is one of the first studies on Ghanaian

women entrepreneurs in SMEs, a multidisciplinary approach was adopted to

investigate and explore a myriad of factors in order to provide an understanding

of Ghanaian womens entrepreneurship in a whole of life context, rather than as

a discrete business activity. Seven research questions based on seven key

dimensions were identified in entrepreneurship literature in relation to the women

entrepreneurs characteristics and experiences, their motivations for business

ownership, business profile, human and financial resources, their network

affiliations, business problems encountered, and their successes. A combined

quantitative and qualitative approach was used to collect and interpret data for

the study. A questionnaire survey was administered to 300 women entrepreneurs

in SMEs in the Koforidua Municipality in Ghana. Additionally, 20 of these women

were selected for face to face interviews. The findings reveal that Ghanaian

women entrepreneurs balance, create, and manage a whole range of innovative

businesses, and personal and family relationships concurrently. These Ghanaian

women entrepreneurs possess a unique human capital derived from their

childhood and general exposure to entrepreneurial experiences from family

members. Their method of acquiring business knowledge and skills is primarily

informal compared to their counterparts in developed countries. Also, with their

strong personality traits, such as determination and a high need for achievement,

coupled with hard work, they have proved themselves capable of doing equally
 48

well what their male counterparts can do. These women have worked hard to

fulfil themselves, not only through marriage and child bearing, as traditionally

expected of them, but also through creating businesses and earning income to

care for themselves and their families. It was identified that women in developing

countries are taking their economic future into their own hands and are no longer

depending on the customary forms of male support. They are positive role

models for young women.

This study dispels the notion that womens small businesses are less

important to economic growth. The womens businesses are found in diverse

business sector such as trading, services, agro-processing, manufacturing,

textile and fabric, agriculture, education and construction. The women have

made socio-economic contributions to the economic growth of Ghana by

reducing poverty and unemployment. Womens entrepreneurship, properly

harnessed, has great potential as a tool for transforming developing economies.

Meeting womens financing needs at all stages of the business continuum will

improve their productivity rate and success. Easier and more convenient access

to mainstream business training will be particularly useful to these women, given

their time constraints and family responsibilities. The study contributes

significantly to knowledge about female entrepreneurship in a developing

economy. It also helps to consolidate our understanding of the female

entrepreneurship phenomenon and the field of entrepreneurship generally, and

has practical implications for researchers and policy makers.

 49

A study conducted by Pathan et al. (2012) Problems Faced by Female

Entrepreneurs of Sindh to have an overview of the existing conditions, problems

or barriers of female entrepreneurs based in Sindh, Pakistan. It was also

conducted to come up with recommendations to address existing problems to

promote gender-friendly business environment. The analysis was based on

primary data collection through structured questionnaire. The total sample size

(29) twenty nine female entrepreneurs of four districts of Sindh. The study clearly

indicates that lack of technology, social capital, low government support and

financing are the main barriers which highly affect to the growth of female

entrepreneurs of Sindh. The other major problems included are low education

level, lack of managerial experience and low marketing skills.

This study conveys the message that if the female entrepreneurs of Sindh

are provided appropriate training, technical knowledge, local administrative

support from public institutions, free collateral loans, social security, protection

and encouragement from their families, flexible business environment etc they

will enter into the entrepreneurial occupation in a large number and will prove

their worth to contribute to the economy of the country. Both the government and

non-government organizations have a major responsibility to promote

entrepreneurship development for female. Without their interventions the

advancement of female and female entrepreneurship cannot be achieved.

Local Studies

A study conducted by Africa (2010) on Baseline Study on Women Micro-

Entrepreneur (Wme) and Women Workers in the Microenterprise (Wwme) in

 50

Real, Infanta and General Nakar (Reina), Quezon, illustrates the women of

ReINa who are engaged in microenterprises, and their enterprises. The purpose

of the study is to present the profile, working conditions and problems

encountered of women entrepreneurs and their workers. The study aimed to

identify gender issues and concerns that impact on womens ability to access

resources at the personal, household and community level. The cross sectional

baseline study in Real, Infanta and General Nakar, Quezon was conducted from

September 2008 to February 2009. To facilitate the computation of sample size,

the lists of registered and unregistered entrepreneurs per type of enterprise per

barangay for the year 2008 were collected by barangay representative in the

three municipalities.

The sample size was computed assuming that the proportion of women

entrepreneurs who perceive that they are empowered is 0.50 and targeting a

coefficient of variance (CV) of 6% for the estimate. The statisticians

computations showed that the total population of 2,911 women entrepreneurs

requires at least 437 samples. These samples were allocated proportionately to

the three municipalities covered in the study. Allowance of 5% in the number of

sample size was added to cover for non-responses. Systematic random

sampling was used to identify the sample women entrepreneurs, the unit of

analysis for this study. The required sample size in the study is 437 but the

number of women entrepreneurs interviewed was 458. The survey was

conducted through the enumerators face-to-face individual interview from 17 to

 51

24 January 2009. In addition to the survey, five focus group discussions (FGD)

were organized separately for the women entrepreneurs and workers in REINA.

According to the findings of the study, generally, women entrepreneurs

were engaged in retail like sari-sari store, groceries, selling of clothes, trade

animal feeds and restaurants among others. More women entrepreneurs in

REINA were in their 40s and 45 as mean age. Majority of the respondents are

married. A greater number of women entrepreneurs in REINA, Quezon were high

school educated. Other than finances, women entrepreneurs also indicated that

other items like equipment, management training, source of raw materials and

assistance in marketing, among others. The identified needs for service, retail

business, production and processing include equipment, management training

and source of raw materials. Assistance in marketing was more needed for

manufacturing.

A research conducted by Lazo (2015) on Increasing Economic

Opportunities of Women in the APEC which is focused in increasing womens

economic opportunities in the APEC region and states that womens participation

in the economy is skewed toward micro and small enterprises and they are

mostly self-employed entrepreneurs in the informal economy. It summarizes the

challenges commonly encountered by women entrepreneurs in the APEC

economies and recommends actions to address these at the Philippine economy

level and at the APEC regional level. The study seeks to review the APEC

regional agenda of increasing economic opportunities for women, the potential

benefits and attendant issues, both in the Philippine and APEC context. It will
 52

discuss ways and means to improve economic opportunities for women within

the regional economic integration framework and is aimed to address the goal of

sustainability and resilience. It will provide insights, policy guidelines and

recommendations as well as formulate possible cooperation mechanisms within

APEC framework to improve economic opportunities for women.

The research is consisted of a review of APEC documents, especially

those pertaining to Women and the Economy and those pertaining to SMEs,

consultations with the Philippine delegates to the APEC meetings, such as the

DFA, DTI, PCW and attendance in the DFA-organized consultative workshops on

the Philippine positions and commitments and discussions with the DTI and

PCW. It was concluded that structural reform is a process. Philippine reforms for

inclusive growth, especially in respect of enhancing womens economic

opportunities are at work.

A study conducted by Quinay (2013) Current Status and Attributes of

Filipino Women Entrepreneurs: Basis for an Entrepreneurial Model, aimed to

determine the attributes of inner drive to succeed, competitiveness, high level of

energy, openness to change and appreciation of support network of women

entrepreneurs in the province of Batangas, Philippines and their extent of

contribution to the success in women in business. A model was conceptualized to

enhance the success of women entrepreneurs. Research design was descriptive

with the use of a research constructed questionnaire as tool to gather data. A

focus group discussion was also conducted to gain in-depth information on the

responses of 250 employees of women entrepreneurs from the four districts of

 53

Batangas Province. Findings of the study revealed that women entrepreneurs

were sole proprietors of a small scale business which had been in operation for

at least ten years. They were mostly involved in women-aligned business as

wearable, general merchandise and food products; however, some of them had

ventured into nonconventional women business associated with male

entrepreneurial business. Of the attributes exemplified by women entrepreneurs,

the respondent employees assessed that inner drive to succeed was main

attribute contributory to success of women entrepreneurs while appreciation of

support network was least attribute contributory to womens success in business.

The women entrepreneurs attributes of inner drive to succeed,

competitiveness, high level of energy and openness to change were assessed to

contribute to a high extent to women entrepreneurs success in business while

appreciation of support network had moderate contribution to womens success

in business. A comparison of assessments of the respondents on the extent of

contribution of attributes to success of women entrepreneurs showed by and

large, there were no significant differences in their assessments when grouped

according to type of business, and number of years in operation; however,

significant differences were obtained on the extent of contribution of attributes of

high level of energy, openness to change and appreciation of support network

when grouped according to scale of business. Based on the findings and

analyses, the researcher conceptualized a model to enhance womens success

in business. The model targeted on the development of the attributes of

innovation and appreciation of support network through the appropriate

 54

constructs on education, policy and social network which may be applied to

assist the business endeavors of women entrepreneurs. The constructs on

education covered gendering of education, capability building, and differentiation

of human capital skills. The construct on policy includes policy on curriculum

integration, gender budgeting and creation of women organization. Constructs for

the social network includes role models, financial networking and technological

support.

A study conducted by Malaya (2006) A Gender-based Analysis of

Performance of Small and Medium Printing Firms in Metro Manila aimed to

present a comparative analysis of the performance of men-owned and women-

owned businesses. The study uses a multidimensional framework of

entrepreneurial success, where the indicators refer to the financial, nonfinancial

and personal goals indicated in literature as being important to entrepreneurs.

Economic performance was measured as change in sales and profitability for a

period of one year and over three years. Data were obtained from printing firms

based in Metro Manila, Philippines, a country in Southeast Asia. The data for the

main study were obtained using a validated self-administered questionnaire from

the member companies of the Printing Industries Association of the Philippines.

This membership represented an updated list of firms that were considered

active in the industry and can be presumed to include the more progressive

firms. 219 out of 336 firms participated in the survey, giving a response rate of

about 65%. The descriptive and relational designs were employed in the

analysis. The descriptive design focused on the profile of the entrepreneur and
 55

the firm. Female and male entrepreneurs were also related and compared in

terms of their individual characteristics, firm performance and success indicators

listed by the entrepreneur according to preference. Age and size of the firm were

controlled to ensure that they do not affect the results.

The study concluded that a typical Filipino business owner, whether male

or female, is middle-aged, married, first-born, has prior work experience and

exposed to early entrepreneurial training because of parents or relatives who

themselves are in business. Practically all have completed the tertiary level,

some even possess graduate credits, attesting to the value given by Filipinos to

education. In terms of legal structure, the trend in this sector seems to be

corporation as the most popular form. Like everywhere else, women-led firms in

the Philippines are often younger and smaller in terms of fixed assets,

employment as well as paid-up capital. These female entrepreneurs also start

businesses tapping personal savings or family funds, incurring very little debt

obtained from formal credit sources. That no variations attributed to gender were

found in firm performance on the short-term scale further support the findings

that financial goals are actually considered by Filipino women to be vital to their

success. Over the longer time period of three years, female underperformance

became manifest perhaps because these women possess personal and

nonfinancial priorities and their growth strategies may be different.