EBESM Presentation of the results of the Report WE Dr. Heba Nassar - - PowerPoint PPT Presentation

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.

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• 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

• f 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 interest rates below 5%.

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• 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

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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

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3.1 3.1. . Initia Initiativ tives t es tha hat ad t addr dress ess women

• men

entr entrepr epreneur eneurs s dir directl ectly and specificall y and specifically

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The Ministry of Social Solidarity ILO - Women's Entrepreneurship Development &Gender Equality" (WEDGE) National Council for Women (NCW) Microsoft Foundation for International Training (CIDA) Goldman Sachs Mahrousa Center for Consultancy Business Women Assosciations

3.2. Initiatives that include women entrepreneurs as sub-category:

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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

• f the European Union

3.3. Initiatives that indirectly but significantly affect women entrepreneurs, including some important SME initiatives:

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USAID The AghaKhan Foundation International Finance Corporation (IFC)- Business Edge. Bedaya Centre for Entrepreneurship and SME Development Microsoft

International Finance Corporation (IFC)-Business Edge.

Central Bank of Egypt

 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

The evaluation of all previous initiatives shows the following:

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 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 .

The evaluation of all previous initiatives shows the following:

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• 4. Interview Results:

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Women entrepreneurs are in the age 25-55 years, married women with children.

Personal characterstics

Mainly suitable for their family conditions, or they have experience in its field of activity.

Reasons for entrepreneurship:

Almost half of interviewed females dealt in garment making and jewellery.

Characteristics of the business:

All entrepreneurs interviewed have never got a bank credit; they depended mainly on private savings, family and retained earnings once the business is operational.

Access to finance and markets

NGOs would offer them individual loans instead

• f the collective loans

NGOs and local authorities can hold more public exhibitions to help women entrepreneurs with marketing challenges.

Recommendations

• 5. Success and Failure Stories:

5.1. Success factors

Access to financing Networking &Family support Opportunities of training Access to markets

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• 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 system with larger and more sophisticated local and international partners  Marketing Constrains:  Limited Mobility :  Balancing Business and family life  Women empowerment through business member organizations

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• 6. Recommendations

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6.1. Macro level 6.2. Meso & Micro Level

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6.1. Macro level

For

• rmula

mulati ting ng a C a Clear lear Polic

• licy

y Frame amewor

• rk:

k:

That reflects the sector’s needs, programs; effective coordination and communication among women entrepreneurs support program stakeholders.

Inc Increa ease sed d Rep eprese esenta ntati tion

• n
• f
• f W

Wom

• men

en sma small ll En Entr trep epren eneu eurs: s:

Include small business owners in selected councils or governing bodies to advocate for policies, laws and regulations which take into account their business constraints and needs.

Mi Micr cro

• Fina

Financ nce e De Develop elopmen ment: t:

Expansion of government loan guarantee 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.

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6.2. Micro &Meso level

Ensuring that existing and new policies are sufficiently resourced, better coordinating women’s entrepreneurship policies, and giving women’s associations a stronger voice

Expansion of Women’s suppor supportiv tive e sy syste stem

Information about markets, preferences, trends, business and marketing

• pportunities

Ensu Ensure ac e acces cess s to to tec technolog hnology &inf y &infor

• rma

mation tion

Knowledge transfer on which products are in demand, production technologies, product standards, raw materials and machines and how/where to obtain them.

Pr Promotion of

• motion of Linka

Linkages ges

• bet. Small
• bet. Small &Lar

&Large ge Entr Entrepr eprene eneur urs

• NGO programs can receive bank loans without

external guarantee, using their own loan fund and loan assets as securities.

• Banks can channel significant amounts of loans

through NGO, who may bear transaction and

• perational costs in return for a fee or a share in

generated revenues.

Encour Encourage ge par partne tnersh ship ip

• bet. B
• bet. Banks

anks and NGOs and NGOs

Thank you for your attention

Contact: Name: Dr. Heba Nassar Email: hebanas@aucegypt.edu