Gender, entrepreneurial characteristics, and success: Evidence from Ethiopia

• Author: Tigineh Mersha,Ven Sriram
• Published date: 01 March 2019
• DOI: http://doi.org/10.1002/tie.21984
• Date: 01 March 2019

AREA PERSPECTIVES: AFRICA

Gender, entrepreneurial characteristics, and success: Evidence

from Ethiopia

Tigineh Mersha | Ven Sriram

Merrick School of Business, University of

Baltimore, Baltimore, Maryland

Correspondence

Tigineh Mersha, Merrick School of Business,

University of Baltimore, 1420 N. Charles St.,

Baltimore, MD 21201.

Email: tmersha@ubalt.edu

Africa-based research on gender and entrepreneurship is very limited. This study compares the

characteristics and relative successes of men and women entrepreneurs in Ethiopia with a view

of isolating the unique hurdles encountered by female entrepreneurs. While both genders in this

sample were pulled, rather than pushed, toward entrepreneurship, women were more influ-

enced by family factors. With regard to personality traits, men entrepreneurs in this study were

generally more confident in their ability to succeed, whereas women exhibited higher fear of

failure and external locus of control. Women entrepreneurs also reported lower business and

entrepreneurial skills and relied more on government funding. Furthermore, male entrepreneurs

outperformed females in terms of sales, employment growth, and profitability. The study iden-

tifies areas in which the skills and competencies of Ethiopian women entrepreneurs can be

developed through targeted training programs to enable them to more clearly recognize entre-

preneurial opportunities and achieve business growth. The findings of this study and the con-

crete suggestions it offers to strengthen the success of Ethiopian women entrepreneurs may be

relevant to other African countries as well.

KEYWORDS

entrepreneurial skills, personality and success, entrepreneurship in Africa, female

entrepreneurship, female entrepreneurship in Ethiopia, gender and entrepreneurship

1|INTRODUCTION

Africa is becoming an increasingly important player in the global econ-

omy, attracting investments in diverse sectors such as oil, minerals,

construction, and manufacturing, with foreign direct investment

exceeding US$73.5 billion in 2015 alone (Africa Development Bank,

2015). While the continent still lags behind other regions in overall

economic development, the World Bank and International Monetary

Fund (IMF) report that Africa's economic performance during the last

two decades has been impressive. For example, during the decade

ending in 2015, the 11 largest African countries registered an average

gross domestic product (GDP) growth rate of 51% compared to the

average world growth rate of 23% (Winkler, 2015). Bloomberg data

also indicate that this robust economic growth was achieved while

keeping inflation in check (Winkler, 2015).

More recently, Africa has seen a spike in international invest-

ments due to the continent's promising economic outlook and grow-

ing market (Nwankwo, 2012). Explosive population growth, currently

estimated to be 1.2 billion people, of which about 85% are below

45 years of age (Geohive, 2013), have fueled the demand for con-

sumer products such as electronics (e.g., cell phones). For the decade

that ended in 2015, returns on international investments in Africa

were among the highest in the world and outperformed most other

emerging markets in several sectors (Winkler, 2015).

It is projected that nearly 370 million youth will enter the job mar-

ket during the next 15 years (Africa Development Bank, 2015). Avail-

able jobs in the public and private sectors will hardly be adequate to

absorb this surge in youth population. Recognizing the benefits of

entrepreneurship in driving economic growth and poverty reduction

(Goel & Rishi, 2012; Kimhi, 2010), the Commission for Africa urged

African nations to foster entrepreneurship as a viable strategy for job

creation and economic development in the continent (Commission for

Africa, 2005).

Based on a review of the extant literature, Terjesen, Hessels, and

Li (2016) reported a paucity of research based on data from develop-

ing economies and recommended increased entrepreneurship

research from underexplored regions such as Africa. Other scholars

have also called for increased management research on and for Africa

DOI: 10.1002/tie.21984

Thunderbird Int. Bus. Rev. 2019;61:157–167. wileyonlinelibrary.com/journal/tie © 2018 Wiley Periodicals, Inc. 157