Understanding the motivation of women entrepreneurs in Ethiopia

Women entrepreneurs in developing countries such as Ethiopia are often stereotyped as necessity-based entrepreneurs operating in the informal sector of the economy. However, there are women entrepreneurs in Ethiopia who form and develop ventures by their own choice in the formal sector of the economy. Moreover, motivation literature suggests that motivation can develop and change overtime. In this study, self-determination theory (SDT) is used as a guiding framework for improved understanding of motivation to form and develop a venture, with a special interest in how motivation changes in relation to the entrepreneurial ecosystem. Interviews with 18 women entrepreneurs in Ethiopia operating businesses in the formal sector identified autonomously motivated and controlled-motivated women entrepreneurs proposed by SDT. The findings also highlight how the type of motivation changes over time. According to SDT, autonomous motivation and motivational change overtime happen when all basic psychological needs for autonomy, competence and relatedness are satisfied. The link of satisfaction of these psychological needs with entrepreneurial ecosystem providing clues for policy making and women entrepreneurship development interventions are discussed