Assessment of motivational patterns of women entrepreneurs in ngo sector and their impact on economic development case Study

Source: Field Survey, 2007
3.7 Sources of Data

Both primary and secondary sources were used for the data collection. The primary data was obtained mainly with the instruments of questionnaire and interview methods. Questionnaires were administered to 570 focused entrepreneurs of the study. Concerning information on the contributions of SMEs and women entrepreneurs to Nigerian GDP, GNI, employment generation, wealth creation and so on, secondary data information were obtained from the published documents of CBN, Federal Office of Statistics, Nigerian Chamber of Commerce, Industry, Mines and Agriculture, National Association of Small and Medium Enterprises (NASME), National Association of Small Scale Industries (NASSI), Journals and other materials from financial institutions and NGOs. Additional data were sourced from University Libraries (such as Covenant University, University of Lagos, University of Ibadan, Obafemi Awolowo University, etc). Internet and other sources were also used for sourcing the relevant materials.

3.8 Data Collection Techniques

The data collection technique used in selecting the respondents for the study is the simple random sampling method. Using this method, the names of all the women entrepreneurs from the established sources were first written out and numbers were assigned to them. The respondents were then drawn systematically using a table of random numbers. A total of five hundred and seventy (570) respondents were randomly selected. However, due to: (i) lack of verification of some of these enterprises (ii) wrong registered and unidentified addresses (iii) change of business or product purposes and (iv) improper completion of some of the questionnaires, four hundred and twenty-two (422) or 75.35% of them were adopted and eventually used. Below is a table showing the distribution of the respondents according to states and sectors. The coverage of state based on local governments revealed that 138 or 33% of the respondents are from Lagos State, 134 or 32% from Oyo State and 150 or 35% from Ogun State.

Table 33: Distribution of Respondents by Sectors

Sector	Agriculture	Manufacturing	Trade	Service	Total__State'>Total
State
Lagos	47	15	45	31	138
Oyo	40	10	22	62	134
Ogun	40	30	55	25	150
Total	127	55	122	118	422

Source: Field Survey, 2007
3.9 Research Instruments

Two types of research instruments were used in carrying out this study. There are questionnaire and interview. The nature of these instruments is explained below:

(i) Questionnaire

In the survey, questionnaire was designed to collect information on the characteristics of women entrepreneurs, factors that motivate them to start up entrepreneurial ventures in the four sectors of Nigerian economy and their entrepreneurial performace. Questionnaire as an instrument for data collection was chosen because it will help the respondents to be objective and more precise in responding to the research questions. The design of the questionnaire was simple and respondent-friendly. The questions were formulated so as to elicit information on women profiles such as age, number of dependent relatives, family size, educational background, type of business, level of income, number of employees at the beginning of the business, number of employee currently serving, reasons for starting up business, location of business, sources of capital, performance measured in term of gross sales / turnovers, obstacles to business and so on. These questions were made up of structured and unstructured questions. The questions were into three parts. Part one has three sections; entrepreneur’s personal bio data, nature of business and entrepreneur’s background characteristics. Part two has seven sections; entrepreneurs’ perception, entrepreneur and environmental factors, motivation and business performance, challenges to women entrepreneurial development, motivation, entrepreneur’s type of business ownership and entrepreneur’s opinion on business. Part three covers information on entrepreneur’s financial performance.

A five-point Likert-scale (Likert, 1961) which ranges from “strongly agree” to “strongly disagree” (5 = ‘Strongly Agree’, 4 = ‘Agree’, 3 = ‘Undecided’, 2 = ‘Disagree’ and 1 = ‘Strongly Disagree’) was used to reflect the agreement of the respondents. Likert scales are widely used in most research in business and other related courses in social science literature (Garland, et al 1984). To elicit the cooperation of the respondents, the nature and purpose of the research were made known to the respondents and anonymity was assured. The respondents were promised access to the thesis if they so desired.

A pilot study was also conducted on twenty four women entrepreneurs selected from the four sectors of the three states involved. The pilot study was considered necessary (i) in order to determine the willingness of the respondents (ii) to have pre-knowledge of the reactions of the respondents and (iii) to know the responses of the respondents. The questions were tested on twenty four women entrepreneurs from the three states who are involved in agriculture, manufacturing, trade and service. According to Czaja (1998) researchers optimized their research results by specifying clearly and precisely pre-testing objectives. After the pilot study, questions were constructed and clarified for the final survey instrument. One hundred and thirty one items in the questionnaire were derived from the result of the pilot test and through literature review of women entrepreneurial motivation (Sarri and Trihopoulou, 2005; Minnit et al, 2006).

The services of research assistants were employed in administering, and collating of the questionnaires. Six of such research assistants (with the distribution of two research assistants for each state) were engaged. These research assistants were mainly from the states of the case study. They were purposively selected so as to gain access to the respondents and for effective interpretation when necessary. The questions were prepared from previous researches (Brockhaus, 1986; Hisrich and Brush, 1986; Dubini, 1988; Otokiti, 1987; Soetan, 1991; Amit, Glosten and Muller, 1993; Orhan and Scolt, 2001; Olutunla, 2001; Ryan and Deci, 2002; Ogundele and Opeifa, 2003; Brunstein and Maier 2005; Gelin, 2005; GEM, 2005; Ojo, 2006; Minnit et al 2006). The survey was carried out between May 2007 and January 2008. This took about eight (8) months. In the process of collecting the data for this study, the researcher encountered a lot of challenges such as lack of cooperation, distrust and suspicion from the respondents.

(ii) Interview
Apart from the questionnaire, personal structured interviews were held with thirty six (36) women entrepreneurs who were purposively selected. The women entrepreneurs selected for the interview are women that are well known in the area of their businesses. The selection was made based on the recommendations the researcher received from the states’ NAWE. The names of their businesses are listed in appendix C. An interview schedule was used to provide a framework for the sessions with the respondents. The interview was based on categorical and open –ended questions (not “yes” or “no” answers) and no pre-set range of responses. This methodology allowed the respondents to convey their views and to elaborate on their answers in their own terms, permitting the emergence of new themes (Strauss and Corbin, 1989). This helped the researcher to have on-the- spot assessment and a better understanding of the motivations, characteristics, performances, challenges and reasons for the choice of business ownership of the respondents. This is necessary so as to confirm the responses given by the women entrepreneurs in the questionnaire and to capture some other information which the questionnaire may be unable to capture.
Interview according to Osuagwu (2002) is also necessary in order to purify and improve the quality of the research questionnaire. The researcher conducted one-on-one interview using a structured interview guide. Though the guide provided a format, the researcher in several occasions expanded the questions so as to get more detailed information from the respondents. The interviews were conducted in English language and the interview time ranged from approximately 30 minutes to 1 hour. Interview questions were also prepared from previous researches (Olutunla, 2001; Ogundele and Opeifa, 2003; Brunstein and Maier, 2005; Gelin, 2005; GEM, 2005; Minnit et al 2006) and these centered on issues of the factors that motivated women for entering into entrepreneurial ventures, their performances, challenges and other related questions.

3.10 Measurement of Variables

Questions were written mainly to assess the factors that motivate women entrepreneurs to start business and the effects of these factors on their performances, challenges, type of business ownership and environmental factors. The items were derived from a careful review of the entrepreneurship literature on women’s entrepreneurial motivation. Some items found to be relevant to motivational factors of women studies include Hisrich and Brush (1986); Denison and Alexandar (1987); Dubini (1988); Scheinberg and MacMillian (1988); Rosin and Korabik (1990); Shane, Kolvereid and Westhead (1991); Ogundele and Opeifa (2003). Among the factors they identified in their studies are social, financial, psychological and environmental factors. These items were compiled and unrelated items were deleted. The items frequently cited as reasons for starting a business were added in the questionnaire. Others include issues like combining family responsibilities with business, glass ceiling, and coping with inadequate resources etc. which were observed to be very peculiar to women entrepreneurs. Other items used as independent variables include family influence, internal locus of control, desire for achievement, risk taking propensity and personal dissatisfaction. The writers behind these studies include Dunkelberg and Cooper (1982); Brockhaus (1986) and Timmons (1978).

Financial factors on the other hand were measured with index of capital adequacy or adequate funds for commencement and expansion of such business and lack of tax reduction and relief (Bannock, 1981; Otokiti, 1987). Another variable used for measuring women entrepreneurship is performance. Measures of performance were both qualitative and quantitative. Qualitative measures covered respondent’s perceptual evaluation of the degree of effectiveness of the entrepreneurs’ business strategies using performance measures such as revenue from entrepreneurial activities, market share, employees’ and customers’ satisfaction in capturing this variable as were identified by Brockhaus and Horwatz (1986); Mokry (1988). On the other hand, quantitative performance measures were provided by the respondents’ income, profitability (profit after tax), number of employees and turnover/sales. These variables are the usual measures of business quantitative performance identified by Hisrich and Brush (1986) Miskin and Rose (1990). Environmental factors took into consideration variables such as government policy, community support, availability of infrastructure and accessibility to suppliers and consumers and we depended extensively on the works of Ronstadt (1984); Keeble and Walker (1994); Otokiti, (1987); Ogundele and Opeifa, (2003).

The tables below which shows how variables used in the study of the motivational patterns of women entrepreneurs in SMEs were constructed and measured was developed from the questionnaire items. See Appendix A.

Table 34: Measurement of Variables - Part 1- Section A

Respondents’ Personal Bio data
Variables	Description
Sex	Single item: Women Entrepreneurs
Marital Status	Four items: single, married, divorced, window
Age	Five items: 15-20, 21-26, 31-35, 40-45, 46 and above
Educational Background	Five items: WASC, OND, HND/BSc, MSc and others
Religion	Two items: Christianity, others
Nature of Business	Four items: Agric, Manufacturing, Service and Trade
Structure of Business	Three items: Sole trade, Partnership, Company
Starting the Business	Four items: From the Scratch, Purchased, Inherited, Joined someone

Source: Field Survey, 2007

Table 35: Measurement of Variables - Section B

Entrepreneurs’ Background Characteristics: Respondents were asked questions on their entrepreneurial characteristics. These questions include; their position in their nuclear family, educational background, if they have worked before, if their former boss is a man, if they are the breadwinner of their business, if they started business because they needed extra income, if the business is a family business, if they have done the type of business they are doing before, if their parents are in business and they started business because they were sacked in their former place of work. The rating scale ranges from 1-yes and 2- No

Entrepreneurs’ Perception Respondents were presented with questions on entrepreneurs’ perception. These questions include their opinion on; risk taking, pursuit of moderate goals, tolerance of ambiguity, energy and strength for running a business, creative and innovation, self-confidence, self-esteem, need for independence, self-achievement, gender discrimination, social recognition, desire for extra income, desire for freedom and independence. The rating scale ranges from 5-strongly agrees, 4- agrees, 3-undediced, 2-disagree to 1-strongly disagree.

Table 36: Measurement of Variables - Part 2

Entrepreneurs and Motivational Factors- Respondents were asked to examine the relationship between entrepreneurial motivations and environmental factors; business performance; challenges they face in business and type of business ownership. The rating scale ranges from 5-strongly agrees, 4- agrees, 3-undediced, 2-disagree to 1-strongly disagree
Environmental Factors	Among the environmental indicators that usually contribute towards the decision for business venturing may include factors such as accessibility to finance, accessibility to labour, accessibility to market, accessibility of customers, accessibility to suppliers, accessibility to transport, availability of supporting service, new technology development, accessibility to electricity, and living condition (scales 5 to 1)
Challenges face in Business	Variables used in measuring challenges women entrepreneurs face in business include; combining family responsibilities, lack of access to finance, lack of support from spouse, customers’ complaints, sexual harassment, coping with competition, lack of power supply, high tenement rates, gender discrimination, lack of training and information (scales 5 to 1).
Type of Business Ownership	Variables used in measuring choice of business ownership include; achievement of self-independence, involvement in family decision making, government support, low capital requirement, convenience, low risk involvement, improvement in quality of life (scales 5 to 1).
Psychological Factors	Variables used in measuring psychological factors include; risk-taking propensity, internal locus of control, need for achievement, tolerance of ambiguity, self-esteem, proactive-ness (scales 5 to 1).
Financial Factors	Variables used in measuring financial factors include; lack of adequate finance for the initial start-up and subsequent expansion, incentive and disincentives of tax system, effects of financial institution regulations an restrictions, government policy on financing SMEs (scales 5 to 1).
Family Influence Factors	Variables used in measuring family influence include; marital status, number of children, number of dependant, year of marriage, family business, business of the spouse, breadwinner of the family, position in the family, participate in the family business ( scales Yes and No ).

Source: Field Survey, 2007

Table 37: Measurement of Variables - Part 3

Business Performance

Variables used in measuring business performance include; sales volume, business profitability, share earnings, market, products quality, efficiency, competitiveness, personal income, business revenue, business assets, investment in equipment, no. of employees at start and currently derving (scales 5 to 1).

Source: Field Survey, 2007

Women Entrepreneurial Motivation Rating Scale (WEMRS)

Women Entrepreneurial Motivation Rating Scale (WEMRS) developed by the researcher from the works of Scott (1986); Sarri and Trihopoulou, (2005); Minnit et al, (2006) which was used to measure the motivational patterns of women entrepreneurs in the South-West Nigeria. The scale includes the following sub-scales: (i) Nature of Business; (ii) Entrepreneur’s characteristics; (iii) Entrepreneur’s Perception; (iv) Entrepreneur’s Business Environment; (v) Motivation and Business Performance; (vi) Challenges to Women Entrepreneurs; (vii) Motivation and Entrepreneur’s Choice of Business Ownership; (viii) Entrepreneur Opinion on Business and (ix) Business Performance

The nature of business has six items that emphasized the business location, structure of business, characteristic of the business, number of the employees and number of branches established by the entrepreneur. Entrepreneur’s characteristics have eighteen items and some of these items include family influence, education, personal dissatisfaction, role model etc. Entrepreneur’s perception has thirty items and these include risk taking propensity, goal setting, creativity and innovation, desire for achievement, proactiveness, competitiveness, access to required capital, self esteem, need for independence, desire for self fulfillment, desire for extra income, desire for change of career etc. Entrepreneur and environmental factors have twenty items which include accessibility to labour, supplier, market, customers, electricity, transportation, network, government policy, migration to the city etc. Business performance has twelve items and this include return on market share, cost consciousness, putting of more time, business profitability, business revenues, estimated value of capital, turnover, investment, total fixed assets, total expenditure etc.
Challenges of women entrepreneurs has eighteen items which specifically include combining family responsibility with business, financial problem, lack of family support, customers complaints, gender discrimination, unfavourable economic conditions, lack of power supply, inadequate level of information and technology etc.
In a similar vein, the choice of business ownership has fourteen items which include; business that requires small amount of capital, small risk, convenient business, business being supported by the government, business that is peculiar to family, business that requires easy registration process etc.
Entrepreneur’s opinion on business has four items that are mainly open ended questions such as business challenges face by women and factors that can motivate women into entrepreneurship.

3.11 Validity of the Research Instrument

Validity test was carried out so as to ensure that the research instrument measured what it was supposed to measure. The four methods of measuring external validity are: face validity (Selltiz et al, 1976; Phillips, 1976 and Bailey, 1987); content validity (Goode and Hatt, 1952; Kerlinger, 1964; Bailey, 1987; Singleton et al, 1993); criterion validity (Phillips 1976; Selltiz et al 1976; and Bailey 1987) and construct validity (Stevens 1951, Kerlinger 1964 and Bailey 1987, Singleton et al, 1993). Face and content validity were carried out on this work. Content validity measures the appropriateness of the wording of the instrument and the objectives of the study while the face validity enables the researcher to make an assertion to claim to have measured what he or she intended to measure (Stevens, 1951). The validity measurement of this study was justified using the works of Levine (1981), Kerlinger (1983), Bailey 1987, Ekpo-Ufot (1992), Singleton et al, (1993). To ensure face and content validity of the instrument (content-related evidence), senior academics on entrepreneurship and enterprise development studies, specialists and experts on the topic of research measured by the instrument were asked to make their inputs and judge the appropriateness of the items on the instrument. This is to find out if the instrument covered the breath of the content area (and to ascertain if the instrument contains a representative sample of the content being assessed). The researcher also confirmed if the format used in designing the instrument is appropriate for obtaining the information required from the respondents.