THE ROLE OF FEMALE ENTREPRENEURS IN POVERTY ALLEVIATION IN RURAL COMMUNITIES: THE CASE STUDY OF AWKA SOUTH LOCAL GOVEERNMENT AREA IN ANAMBRA STATE, NIGERIA
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THE ROLE OF FEMALE
ENTREPRENEURS IN POVERTY ALLEVIATION IN RURAL COMMUNITIES: THE CASE STUDY OF
AWKA SOUTH LOCAL GOVEERNMENT AREA IN ANAMBRA STATE, NIGERIA
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Poverty is one of the main economic problems facing most
countries in the world. There have been several strategies to tackle poverty in
its various forms and dimensions. Of recent, there has
been a shift from the capital intensive large-scale industrial policy to
Small-scale policy as small scale industries viewed as a sector that creates
substantial employment opportunities as they are relatively labour intensive.
In the light of this, different levels
of government in Nigeria have embraced the challenge of promoting small and
medium enterprises since 1986 through the Small Scale Enterprises Programme
(SSEP) as an engine for economic growth. There are many studies on the
relationship between small businesses development and poverty rates and overall
microeconomic performance on the basis of aggregate time series data. But most
of the studies have neglected the individual traits of businesses and gender
issue, and with less attention on rural areas. This study is gender sensitive
as it investigates the roles of small businesses owned by women in rural areas
in poverty alleviation.
1.2 Statement of the Research Problem
In view of the escalating level of poverty in developing
countries constituting a serious problem to economic growth and welfare state
of the citizenry, various policies were
implemented which could not
significantly impact on the level of poverty. The failure of various reforms
and development programmes to impact on the level of welfare of the citizens in
terms of poverty reduction particularly through employment generation,
triggered the reappraisal of the role and importance of small and medium sized
enterprises as a viable channel to attaining economic growth and development
especially in terms of reducing the poverty level in the economy as was
witnessed in the developmental progress and economic transformation of some
developed countries. In most developing countries, attention has not
been focussed on development of
businesses owned by women due to the perception of their traditional
role at home. In Nigeria, there are few studies on the actual contribution of the women-owned
micro, small or medium enterprises (SMEs) to employment creation, income
generation and wealth creation in rural areas, hence this study.
1.3 Research Questions
The study
addressed the following questions.
(i) What are the
characteristics of Female business owners in rural areas in Anambra .
State, Nigeria.
(ii) Has the
establishment of the female-owned
enterprises alleviated poverty?
1.4 Objectives of
the study
The broad objective of this study is to assess the role of small
and medium businesses owned by women in reducing poverty in Awka south Local Government Area
in Anambra state, Nigeria through job creation and income generation. The
specific objectives are to:
i. Analyse the
characteristics of female business owners
in Anambra
ii. Assess the
extent to which the SMEs have reduced poverty among the female owners
in Anambra.
1.5 limitation of the Study
Some factors may limit the level of accuracy and reliability
of this study. Factors include:
i. difficulty in
obtaining data
ii. Low response rate
from individual parties.
In the absence of the above mentioned limitations, all other
errors and omissions are entirely those of the researcher.
1.6 Statement of the Research Hypothesis
This study would be guided by the following hypothesis
Ho: Participation in SMEs by female does not improve the
standard of living.
Hi: participation in SMEs by female improves the standard of
living
1.7 Definitions of Terms
i. Entrepreneur :Someone who exercises initiative by
organizing a venture to take benefit of an opportunity and, as the decision
maker, decides what, how, and how much of a good or service will be produced.
ii.
Entrepreneurship: this is the process of designing, launching and running a new
business,i.e. a start-up company offering a product, process or service. It has
been defined as a capacity and the willingness to develop, organize and manage
a business venture along with any of its risks in order to make profit.
According to economist Joseph Alois Schumpeter (1883-1950),
entrepreneurs are not necessarily motivated by profit but regard it as a
standard for measuring achievement or success
iii Poverty: United
Nations: Fundamentally, poverty is the inability of getting choices and
opportunities, a violation of human dignity. It means lack of basic capacity to
participate effectively in society. It means not having enough to feed and
clothe a family, not having a school or clinic to go to, not having the land on
which to grow one’s food or a job to earn one’s living, not having access to
credit. It means insecurity, powerlessness and exclusion of individuals,
households and communities. It means susceptibility to violence, and it often
implies living in marginal or fragile environments, without access to clean
water or sanitation.
iv.World Bank: Poverty is pronounced deprivation in
well-being, and comprises many dimensions. It includes low incomes and the
inability to acquire the basic goods and services necessary for survival with
dignity. Poverty also encompasses low levels of health and education, poor
access to clean water and sanitation, inadequate physical security, lack of
voice, and insufficient capacity and opportunity to better one’s life.
v Small and
medium-sized enterprises: these are business whose personnel numbers fall below
certain limits. The abbreviation SMES is used in European Unions and by
international organizations such as the World Bank, the United Nations and the
World Trade Organization. Small enterprises outnumber large companies by a wide
margin and also employe many more people. SMES are said to be responsible for
driving innovation and competition in many economic sectors
Alleviation: Reduction of or freedom from suffering and
pains.
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