EBESM Presentation of the results of the Report WE Dr. Heba Nassar Beirut - September 2017
EBESM Project 2
I- INTRODUCTION • The report is based on a survey (person-to-person interviews) of women entrepreneurs to examine in detail the factors affecting their successes, failures and development. • The report also focuses on the role of governmental and non-governmental agencies that provide financial and non- financial support to these women. • Lastly, the study aims to enhance the overall business environment for female entrepreneurs through collecting their views on how to make their businesses better, and ends with a set of policy recommendations. 3
2 . POLICIES TO SUPPORT WOMEN’S ENTREPRENEURSHIP DEVELOPMENT Legislative reform to create a more conducive framework to the private sector and entrepreneurship through simpler ‘Business start - up procedures’ to cut costs for opening a business in Egypt Law for the Development of Small and Micro Enterprises141/ 2004 aims at facilitating procedures for licensing of enterprises by means of adopting the One-Stop-Shop approach. The National Microfinance Strategy in 2006 aims at providing sustainable financial services to entrepreneurs. Central Bank in Egypt (CBE) in 2016 regulations on commercial banks to allocate 20% of their portfolio for entrepreneurs of SMEs with 4 interest rates below 5%.
2 . POLICIES TO SUPPORT WOMEN’S ENTREPRENEURSHIP DEVELOPMENT However ; Men outnumber women by a ratio of more than 5 to1. The international average proportion is closer to 2 to 1 , suggesting that there is potential in Egypt for a higher number of women entrepreneurs. Still small women entrepreneurs need more gender sensitized interventions taking into consideration their particular circumstances, such as insufficient support services, lack of choice, deficiency in social support and networking and role conflicting 5
3-CURRENT INITIATIVES SUPPORTING POLICIES : 3.1. Initiatives that directly and specifically address women entrepreneurs 3.2. Initiatives that include women entrepreneurs as sub- category 3.3. Initiatives that indirectly but significantly affect women entrepreneurs, including some important SME initiatives 6
3.1 3.1. . Initia Initiativ tives t es tha hat ad t addr dress ess women omen entr entrepr epreneur eneurs s dir directl ectly and specificall y and specifically ILO - Women's The Ministry of Entrepreneurship Social Solidarity Development &Gender Equality" (WEDGE) National Council for Women (NCW) Mahrousa Center for Consultancy Foundation for International Business Women Training (CIDA) Assosciations Goldman Microsoft 7 Sachs
3.2. Initiatives that include women entrepreneurs as sub-category: The Social Fund for Development Fund (SFD) The World Bank grant for SMEs The Business Development Support Services Project. The German Technical Cooperation The Small Business Support program of the European Union 8
3.3. Initiatives that indirectly but significantly affect women entrepreneurs, including some important SME initiatives: USAID The Agha Khan Foundation International Finance Microsoft Corporation (IFC)-Business Edge. International Finance Bedaya Centre for Corporation (IFC)- Entrepreneurship and Business Edge . SME Development Central Bank of Egypt 9
The evaluation of all previous initiatives shows the following: Many existing services are gender-neutral while women have their special conditions as breadwinners and mom-entrepreneurs with role conflicting There is a shortage of business development services(BDS) and for the most part, women are not aware of services available to them. Programs with interest rates below market levels may create unsustainable dependencies if funds quickly deplete and women entrepreneurs are sheltered from market forces. Incentives for banks to build women’s portfolios are still weak 10
The evaluation of all previous initiatives shows the following: Lack of coordination among governmental and semi governmental entities on different levels. Lack of sustainability in most initiatives due to being dependent on foreign financing, which can end and terminate the initiative as well Though Egypt has plenty of programs and initiatives supporting women economic empowerment, no clear policy has been drawn with priorities and programs at national and regional level at least to set priorities and goals . 11
4. Interview Results: Personal Women entrepreneurs are in the age 25-55 years, married women with children. characterstics Reasons for Mainly suitable for their family conditions, or they have experience in its field of activity. entrepreneurship: Characteristics of Almost half of interviewed females dealt in garment making and jewellery. the business: All entrepreneurs interviewed have never got a bank credit; they depended mainly on private Access to finance savings, family and retained earnings once the and markets business is operational. NGOs would offer them individual loans instead of the collective loans Recommendations NGOs and local authorities can hold more public exhibitions to help women entrepreneurs with 12 marketing challenges.
5. Success and Failure Stories: 5.1. Success factors Access to financing Opportunities of training Access to markets Networking &Family support 13
5. Success and Failure Stories: 5.2. Failure factors Inadequate Institutional, Legal and Regulatory Environment. Lack of Access to Finance : Difficulty of obtaining the adequate inputs . Lack of Access to Information and Technology . Lack of linkages, subcontracting and franchise syste m with larger and more sophisticated local and international partners Marketing Constrains: Limited Mobility : Balancing Business and family life Women empowerment through business member organizations 14
6. Recommendations 6.1. Macro level 6.2. Meso & Micro Level 15
6.1. Macro level That reflects the sector’s needs, programs; For ormula mulati ting ng a C a Clear lear Polic olicy y effective coordination and communication Frame amewor ork: k: among women entrepreneurs support program stakeholders. Inc Increa ease sed d Rep eprese esenta ntati tion on Include small business owners in selected of of W Wom omen en sma small ll councils or governing bodies to advocate for policies, laws and regulations which take En Entr trep epren eneu eurs: s: into account their business constraints and needs. Expansion of government loan guarantee Mi Micr cro o Fina Financ nce e De Develop elopmen ment: t: programs including leasing, improvement of micro-credit facilities, and improved access to credits in rural areas for women and higher risk small and micro business is important. 16
6.2. Micro &Meso level Ensuring that existing and new policies are Expansion of Women’s sufficiently resourced, better coordinating suppor supportiv tive e sy syste stem women’s entrepreneurship policies, and giving women’s associations a stronger voice Information about markets, preferences, Ensure ac Ensu e acces cess s to to trends, business and marketing tec technolog hnology &inf y &infor orma mation tion opportunities Pr Promotion of omotion of Linka Linkages ges Knowledge transfer on which products are in demand, production technologies, bet. Small bet. Small &Lar &Large ge product standards, raw materials and Entr Entrepr eprene eneur urs machines and how/where to obtain them. -NGO programs can receive bank loans without external guarantee, using their own loan fund Encour Encourage ge par partne tnersh ship ip and loan assets as securities. bet. Banks bet. B anks and NGOs and NGOs -Banks can channel significant amounts of loans through NGO, who may bear transaction and 17 operational costs in return for a fee or a share in generated revenues.
Thank you for your attention Contact: Name: Dr. Heba Nassar Email: hebanas@aucegypt.edu
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