Project – Entrepreneurship and Women Unemployment Dynamics in Bariga Local Council Development Area
CHAPTER ONE
INTRODUCTION
- Background to the Study
The relationship between entrepreneurship and women’s unemployment has been a significant subject of research, particularly in the context of economic empowerment and gender equality. Entrepreneurship provides a potential avenue for women to overcome labor market discrimination and structural barriers that hinder their participation in formal employment. According to Chigunta (2002), women’s entrepreneurship can mitigate unemployment by creating new jobs for themselves and others, offering a pathway out of poverty and underemployment. In many developing countries, women’s entrepreneurship is considered a critical strategy for improving the economic standing of women, especially in regions where formal employment opportunities for women are limited.
Studies show that female entrepreneurs often face unique challenges when compared to their male counterparts, including limited access to finance, cultural biases, and a lack of networks (Ahl, 2006). These barriers can exacerbate women’s unemployment rates, as women may find it more difficult to establish and expand businesses. However, women entrepreneurs often display resilience, and their businesses can provide flexible employment opportunities that accommodate family responsibilities. As noted by Carter and Shaw (2006), women-owned businesses are often smaller in scale, but they play a crucial role in providing localized employment, particularly in microenterprises.
Moreover, the dynamic between entrepreneurship and women’s unemployment is further complicated by the role of societal and institutional support systems. The policies and social norms of a country significantly influence women’s entrepreneurial success and the extent to which entrepreneurship can alleviate unemployment. In some countries, women face significant barriers in accessing credit or land ownership, which limits their capacity to start and grow businesses (Ghosh, 2011). Conversely, initiatives such as microfinance programs have been instrumental in providing women with the capital needed to start small businesses, thus contributing to reduced unemployment rates (Armendáriz & Morduch, 2010).
The impact of entrepreneurship on reducing women’s unemployment is also shaped by the type of business women pursue. Research by Sullivan (2000) suggests that women are more likely to engage in small, service-based businesses, which, while contributing to local economies, may not have the same growth potential as male-dominated sectors like technology or manufacturing. However, these businesses offer crucial employment opportunities for other women, thereby helping to alleviate the overall unemployment problem. The dynamic between gender, type of business, and unemployment is also influenced by regional economic development and the availability of infrastructure.
Furthermore, there is evidence to suggest that women’s entrepreneurship positively influences broader socio-economic outcomes, such as reducing gender inequality and empowering women in both economic and social spheres. According to Brush et al. (2009), female entrepreneurs often reinvest their earnings into family and community development, which contributes to poverty reduction and increases overall societal well-being. Entrepreneurship, therefore, does not merely serve as a mechanism to reduce unemployment but also plays a pivotal role in advancing gender equity by challenging traditional gender roles in the workplace.
Lastly, while the link between women’s entrepreneurship and unemployment reduction is clear, the relationship is not universally positive. As noted by Minniti and Naudé (2010), women’s entrepreneurship can lead to lower levels of formal employment as it often occurs in the informal economy, which is less stable and does not offer the same benefits as formal employment. Nonetheless, the overall impact of women’s entrepreneurship on unemployment dynamics remains significant, with policies aimed at removing barriers and promoting female entrepreneurship contributing to higher economic participation rates among women, thereby decreasing unemployment in the long term.
- Statement of the Problem
The global gender gap in employment and economic participation remains a significant barrier to achieving gender equality, particularly in developing economies. Women face unique challenges in entering the labor market, with many encountering systemic barriers such as unequal access to education, discrimination in hiring practices, and limited opportunities for career advancement. These barriers often result in higher unemployment rates for women compared to men, further exacerbating economic disparities between genders. Entrepreneurship has emerged as a potential solution for addressing these issues, offering women an opportunity to create their own businesses and generate income. However, despite the potential for entrepreneurship to alleviate women’s unemployment, various structural and cultural obstacles continue to hinder women from fully capitalizing on this opportunity.
Women entrepreneurs often face a range of challenges that differ from those experienced by their male counterparts, such as gender biases, limited access to financial resources, and societal expectations regarding gender roles. These factors significantly impede their ability to successfully launch and sustain businesses, which in turn affects the potential of entrepreneurship to reduce unemployment among women. In many cases, women may resort to informal or small-scale enterprises, which, while offering some economic benefits, are often unable to scale or provide long-term, stable employment. As a result, the contribution of women’s entrepreneurship to reducing unemployment remains underexplored, particularly in the context of developing countries where women are disproportionately affected by unemployment.
Furthermore, the lack of effective support systems, such as mentorship, networks, and access to finance, exacerbates the problem. In many regions, women entrepreneurs are not provided with the necessary resources to start or grow their businesses, which limits the overall impact of entrepreneurship on women’s economic empowerment. Policies and programs aimed at supporting women’s entrepreneurship are often underdeveloped or poorly implemented, leading to a mismatch between the available support and the needs of women entrepreneurs. This lack of adequate institutional support highlights a critical gap in addressing the intersection of entrepreneurship and women’s unemployment.
Moreover, societal perceptions of women in business also play a crucial role in shaping their entrepreneurial outcomes. In many societies, women are still seen primarily as caretakers, with entrepreneurship often viewed as a male-dominated domain. This cultural bias can discourage women from pursuing entrepreneurial ventures or lead to stigmatization when they do. Such societal barriers further compound the challenges women face in the labor market and in their entrepreneurial endeavors, contributing to their higher unemployment rates. Therefore, understanding the interplay between gender, cultural norms, and entrepreneurial success is critical to identifying effective solutions for reducing women’s unemployment.
While some progress has been made in encouraging female entrepreneurship, the overall impact on unemployment has been uneven. In many cases, women’s entrepreneurship does not lead to substantial reductions in unemployment due to the informal nature of many businesses and the challenges associated with scaling ventures. Additionally, women’s businesses are often concentrated in lower-profit sectors, such as retail or services, which may not offer high-paying or stable employment opportunities. This calls for a deeper exploration of how women’s entrepreneurship can be better supported to drive both business growth and job creation that can meaningfully reduce unemployment rates among women.
Given these complexities, it is essential to investigate the multifaceted relationship between women’s entrepreneurship and unemployment. There is a need for research that examines the barriers women face in starting and growing businesses, the role of institutional support, and the impact of cultural norms on their entrepreneurial activities. Understanding these factors will provide valuable insights into how entrepreneurship can be harnessed as a tool for reducing women’s unemployment, ultimately contributing to broader economic development and gender equality goals.
- Aim and Objectives of the Study
The aim of the study is to examine Entrepreneurship and Women Unemployment Dynamics in Bariga Local Council Development Area: A Critical Assessment. The specific objectives are:
- To examine the relationship between entrepreneurship and women unemployment dynamics in Local Council Development Area.
- To identify the challenges faced by women entrepreneurs in Local Council Development Area.
- To assess the impact of entrepreneurship on reducing women unemployment rates in Local Council Development Area.
- To explore potential strategies for promoting women entrepreneurship as a means to address unemployment issues.
1.4. Research Questions
The research questions are buttressed below:
- What is the relationship between entrepreneurship and women unemployment dynamics in Local Council Development Area?
- What are the challenges faced by women entrepreneurs in Local Council Development Area?
- How does entrepreneurship impact the reduction of women unemployment rates in the Local Council Development Area?
- What potential strategies can be explored to promote women entrepreneurship as a means to address unemployment issues in Local Council Development Area?
1.5. Research Hypothesis
The hypothetical statement of the study is buttressed below:
Ho: Entrepreneurship and women unemployment dynamics have no significant impact on Local Council Development Area
H1: Entrepreneurship and women unemployment dynamics have significant impact on Local Council Development Area
1.6. Significance of the Study
The significance of this study lies in its potential to provide valuable insights into the role of entrepreneurship in addressing women’s unemployment in Bariga Local Council Development Area (LCDA), a densely populated urban region in Lagos State, Nigeria. By critically assessing the relationship between women’s entrepreneurship and unemployment dynamics in Bariga, this study seeks to contribute to the growing body of knowledge on gender and economic development, particularly in developing countries where unemployment rates among women remain disproportionately high. Understanding the specific barriers and challenges women face in the entrepreneurial landscape of Bariga can inform the design of targeted policies and interventions aimed at promoting gender equality and reducing unemployment.
One of the primary contributions of this study is its potential to highlight the unique challenges that women entrepreneurs face in Bariga LCDA. Despite entrepreneurship being a commonly recommended solution to unemployment, women often encounter systemic barriers such as gender-based discrimination, limited access to financial resources, and inadequate business training. By investigating how these barriers affect women in Bariga, the study will shed light on the specific obstacles that hinder the growth and sustainability of women-led businesses in this area. This focus on localized challenges will allow policymakers and development practitioners to tailor interventions more effectively to the needs of women in Bariga and similar urban areas across Nigeria.
Additionally, this study will contribute to the understanding of the economic impact of women’s entrepreneurship on local unemployment in Bariga. While microenterprises run by women are common in the area, their ability to create long-term, stable jobs has not been fully explored. By critically assessing the capacity of women’s entrepreneurship to address unemployment in Bariga, the study will provide an in-depth understanding of how small-scale businesses can contribute to economic development in local communities. It will also identify the gaps between the potential of these businesses to reduce unemployment and the structural and socio-cultural constraints that limit their impact. Such insights can be crucial for developing strategies that harness women’s entrepreneurial activities to generate sustainable employment.
The findings of this study are also significant for the wider discourse on gender and entrepreneurship in the context of developing economies. By focusing on Bariga LCDA, a typical urban area with a high population density and diverse socio-economic challenges, the study will offer a micro-level analysis that can be applied to other parts of Lagos State and similar regions in Nigeria. This can help policymakers understand the broader implications of women’s entrepreneurship for local development, enabling them to craft policies that not only address gender inequality but also enhance the effectiveness of entrepreneurship as a tool for economic empowerment.
Moreover, the study’s significance extends to the role of education, skills development, and access to finance in supporting women entrepreneurs. In Bariga LCDA, the lack of quality entrepreneurial training and financial resources has been identified as a major constraint for women who seek to enter the business world. By assessing the impact of these factors on women’s entrepreneurial success, the study can inform the design of training programs, financial initiatives, and support networks that can better equip women to overcome the challenges they face in starting and scaling businesses. This can, in turn, contribute to greater economic stability for women and their communities.
Finally, the significance of this study lies in its potential to influence the creation of inclusive policies and support systems for women entrepreneurs. The results of this research could serve as a foundation for advocacy efforts aimed at increasing government and private sector support for female entrepreneurship in Bariga and beyond. By examining the critical factors that hinder women’s entrepreneurship, this study can provide a basis for developing initiatives that promote gender-inclusive economic growth and job creation. In the long term, such initiatives could help break the cycle of unemployment among women in Bariga, thus contributing to more equitable and sustainable development in the region.
1.7. Scope of the Study
The study examines Entrepreneurship and Women Unemployment Dynamics in Bariga Local Council Development Area: A Critical Assessment. The study is limited Bariga Local Council Development Area, Lagos.
1.8. Operational Definition of Terms
- Entrepreneurship: Entrepreneurship refers to the process of identifying, developing, and managing a business venture to make a profit, typically by taking on financial risks and overcoming various challenges. It involves the creation of new businesses, products, or services that meet the demands or solve problems in the market. In the context of women in Bariga Local Council Development Area (LCDA), entrepreneurship can be seen as a pathway through which women can create their own economic opportunities and reduce dependency on formal employment systems. Women entrepreneurs in Bariga often engage in small-scale businesses such as retail, food production, and services, aiming to provide income and improve their economic status.
- Women Unemployment Dynamics: Women unemployment dynamics refer to the patterns, causes, and factors influencing the unemployment rates among women in a particular region. In Bariga LCDA, this concept focuses on the specific challenges women face in accessing formal employment opportunities due to gender-based discrimination, cultural norms, limited access to education, and other socio-economic barriers. Women’s unemployment dynamics also explore how women’s participation in the workforce is shaped by societal expectations, available support systems, and the availability of job opportunities. These dynamics are critical to understanding how unemployment disproportionately affects women and how women’s entrepreneurship can offer a solution to this issue.
- Bariga Local Council Development Area (LCDA): Bariga LCDA is a densely populated urban area located within Lagos State, Nigeria. It is characterized by a mix of residential, commercial, and informal economic activities. Bariga has a large number of low-income households, and its residents often face challenges such as inadequate infrastructure, unemployment, and limited access to quality education and healthcare. The economic conditions in Bariga present a unique set of challenges and opportunities for women, particularly in terms of employment and entrepreneurial ventures. The LCDA is home to a growing number of women who are involved in micro-enterprises as a means to address their unemployment and contribute to local economic growth.
- Critical Assessment: A critical assessment refers to the process of thoroughly evaluating and analyzing a situation or phenomenon to understand its strengths, weaknesses, opportunities, and threats. In the context of this study, a critical assessment examines the role of entrepreneurship in addressing women’s unemployment in Bariga LCDA. It involves analyzing how entrepreneurship can help mitigate unemployment rates among women, exploring the challenges and opportunities associated with women-led businesses, and assessing the effectiveness of current support systems for women entrepreneurs. This assessment aims to provide a comprehensive understanding of how women’s entrepreneurship impacts both individual women and the broader community in Bariga LCDA.