Examining the Factors that Affect Business Success of Women Owned Small and Medium Enterprises in Lusaka

Abstract

This study was conducted to examine the factors that affect business success of women owned Small and Medium Enterprises (SMEs) in Lusaka. The study made use of a primary data research approach through the use of quantitative and qualitative data that was collected using a structured questionnaire. The study focused on how three key factors identified from literature review impact business success for women in entrepreneurship. These three factors were 1) access/control over financial resources; 2) family responsibilities and their impact on business success; and 3) the impact of lack of management and technical knowledge on business success. This study made use of descriptive frequency analysis, factor analysis and regression analysis to effectively tackle the subject matter. The study also conducted a reliability test for the variable constructs used in the questionnaire to ensure internal consistency. The results of the study through regression analysis show that of the three factors mentioned above, family responsibility is the major factor that impacts business success for women in entrepreneurship. Factor analysis provides further understanding in those women in entrepreneurship that family responsibility dose hinder their success, but family responsibility does highlight that it offers challenges for women in business. The study outlines that this is because women have developed coping mechanisms to navigate and find the work-family balance. Other factors that were found to adversely impact women entrepreneurship included the lack of a conducive business environment for women, high interest rates and limited access to finance. This study therefore recommends the need to continue to advocate and distinguish between gender-sex roles as this has been discovered to be a contributor to the challenges faced. Furthermore, the study also recommends that there should be increased financial inclusion (e.g. via bank loans, etc) for women in the community and that there should be deliberate steps to have women focused initiatives and financial products which promote the use of financial services by women in entrepreneurship.