Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Abstract

Gender Differences of Entrepreneurial Challenges in Ethiopia

Author(s): Yimer Ayalew Ahmed,Brajaballav Kar

The study investigates perceived differences in challenges to entrepreneurship between genders. Women entrepreneurs are fewer compared to men, indicating lack of equity in the wealth creation process. Often it is generally believed women lack entrepreneurialism and have less favorable outcome from entrepreneurship; also it is believed that women in general have lesser endowments in terms of efficacy, family, social and wealth. This article investigates these factors in the emerging economy of Ethiopia. Self-reported, validated and reliable questionnaire of Likert Scale type responses are used to collect primary data from 350 young entrepreneurs within the age group of 18 to 29 years, of which 84 are women. Contrary to the belief, the study finds that women entrepreneurs are younger compared to their men counterpart, less educated, come from a non-business family background, have less working experience compared to men before entrepreneurship, and yet, they report equal revenue, employment in their organization, and have equal access to capital. Women do not underperform significantly less compared to men. However, they report significantly higher level of challenges to develop their business contact and develop network, administrative and bureaucratic burden, and also feel that tax subsidies are discretionary, as compared to men. Policy implications are indicated.