THE STATE OF WOMENS ENTREPRENEURSHIP IN INDONESIA AND CANADA - - PowerPoint PPT Presentation
THE STATE OF WOMENS ENTREPRENEURSHIP IN INDONESIA AND CANADA Women-owned business enterprises contribute to the economy and to society. why does womens Today, women-owned businesses account for 9.1% of Indonesias GDP. With relatively
Women-owned business enterprises contribute to the economy and to society. Today, women-owned businesses account for 9.1% of Indonesia’s GDP. With relatively high unemployment or underemployment, encouraging women’s self-employment would boost this number. To unleash this potential, we need to address the barriers to women starting and growing a business.
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Examine the state of women’s entrepreneurship in Indonesia and compare it to Canada, a country with more extensive programs to support and promote women entrepreneurs. Canada is ranked #7 on the ”Supporting Entrepreneurial Conditions” component
Identify interventions (policy and regulation) and practices (programs) in Canada that may be applicable for Indonesia Methodology: 1. Desk research (rapid scan of 60 documents) 2. 20 interviews 3. Survey filled out by 15 people
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Indonesia Canada Entrepreneurs Age Average age: 41 years Average age: 48 years Top 2 highest education levels High school diploma Bachelor’s degree
Motivation 85% are opportunity-driven Key motives: independence, generate income, create job for herself/family 82% are opportunity-driven Key motives: have the right skill/passion, independence Attitude 42% see positive opportunities 54% feel confident about their capability 60% are not deterred by fear of failure 58% see positive opportunities 45% feel confident about their capability 61% are not deterred by fear of failure Enterprises % of SMEs Account for ~24% of SMEs Account for 15.7% of SMEs % of GDP 9.1% 9.6% % exporting N/A 11.8% of women-owned enterprises Top sectors Food production, retail trade, garment production Information, waste management, health care and recreation, retail trade, accommodation and food services 4
The majority of women entrepreneurs in the two countries are concentrated in sectors with low growth potential, low export propensity, and low barriers to entry
Issues Specific Issues Indonesia*) Canada*) Limited access to capital Limited availability of growth capital
✓✓ ✓✓✓
High interest rate
✓✓✓
unknown Limited collateral/security for loan
✓✓✓ ✓
Undervalued by investors due to unconscious bias
✓ ✓✓
Limited access to networks (i.e., mentors, advisors) Do not know and/or do not have the right connection
✓✓ ✓✓✓
Limited access to skills development programs Programs are not available in their area (centralized)
✓✓✓
unknown Unaware of such programs
✓ ✓
Programs are too “masculine” or do not suit women’s needs (e.g., time)
✓✓✓ ✓✓
Socio-cultural norms and internal barrier Perception that the role of generating income belongs to men
✓
unknown Household responsibility predominantly falls to women
✓✓✓ ✓✓✓
Expensive childcare services constrain women’s mobility unknown
✓✓
Confidence gap
✓
✓✓✓
Challenges to a) export and/or b) succeed in procurement deal Limited information on international trade and/or procurement unknown
✓✓
Do not have the connections unknown
✓
Do not have the “know-how” (e.g., how to pitch, seal agreement, ..) unknown
✓✓
Concentrated in sector that are not “in-demand” unknown
✓✓
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barriers faced by women entrepreneurs in Indonesia and Canada
As in the case globally, women entrepreneurs in the two countries are constrained by limited access to capital, networks, development programs, and face constraining socio-economic norms
*) vvv= most significant (most stated in studies)
vv= significant (stated in a number of studies) v= present (not widely stated in studies) **) There is no study yet. It does not mean the challenge does not exist
Issues Specific Issues Indonesia*) Canada*) Limited access to capital Limited availability of growth capital
✓✓ ✓✓✓
High interest rate
✓✓✓
unknown Limited collateral/security for loan
✓✓✓ ✓
Undervalued by investors due to unconscious bias
✓ ✓✓
Limited access to networks (i.e., mentors, advisors) Do not know and/or do not have the right connection
✓✓ ✓✓✓
Limited access to skills development programs Programs are not available in their area (centralized)
✓✓✓
unknown Unaware of such programs
✓ ✓
Programs are too “masculine” or do not suit women’s needs (e.g., time)
✓✓✓ ✓✓
Socio-cultural norms and internal barrier Perception that the role of generating income belongs to men
✓
unknown Household responsibility predominantly falls to women
✓✓✓ ✓✓✓
Expensive childcare services constrain women’s mobility unknown
✓✓
Confidence gap
✓
✓✓✓
Challenges to a) export and/or b) succeed in procurement deal Limited information on international trade and/or procurement unknown
✓✓
Do not have the connections unknown
✓
Do not have the “know-how” (e.g., how to pitch, seal agreement, ..) unknown
✓✓
Concentrated in sector that are not “in-demand” unknown
✓✓
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barriers faced by women entrepreneurs in Indonesia and Canada
As in the case globally, women entrepreneurs in the two countries are constrained by limited access to capital, networks, development programs, and face constraining socio-economic norms
*) vvv= most significant (most stated in studies)
vv= significant (stated in a number of studies) v= present (not widely stated in studies) **) There is no study yet. It does not mean the challenge does not exist
Most mentioned in Indonesia Most mentioned In Indonesia
Issues Specific Issues Indonesia*) Canada*) Limited access to capital Limited availability of growth capital
✓✓ ✓✓✓
High interest rate
✓✓✓
unknown Limited collateral/security for loan
✓✓✓ ✓
Undervalued by investors due to unconscious bias
✓ ✓✓
Limited access to networks (i.e., mentors, advisors) Do not know and/or do not have the right connection
✓✓ ✓✓✓
Limited access to skills development programs Programs are not available in their area (centralized)
✓✓✓
unknown Unaware of such programs
✓ ✓
Programs are too “masculine” or do not suit women’s needs (e.g., time)
✓✓✓ ✓✓
Socio-cultural norms and internal barrier Perception that the role of generating income belongs to men
✓
unknown Household responsibility predominantly falls to women
✓✓✓ ✓✓✓
Expensive childcare services constrain women’s mobility unknown
✓✓
Confidence gap
✓
✓✓✓
Challenges to a) export and/or b) succeed in procurement deal Limited information on international trade and/or procurement unknown
✓✓
Do not have the connections unknown
✓
Do not have the “know-how” (e.g., how to pitch, seal agreement, ..) unknown
✓✓
Concentrated in sector that are not “in-demand” unknown
✓✓
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barriers faced by women entrepreneurs in Indonesia and Canada
As in the case globally, women entrepreneurs in the two countries are constrained by limited access to capital, networks, development programs, and face constraining socio-economic norms
*) vvv= most significant (most stated in studies)
vv= significant (stated in a number of studies) v= present (not widely stated in studies) **) There is no study yet. It does not mean the challenge does not exist
Most mentioned in Canada Most mentioned in Canada Most mentioned in Canada
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As in the case globally, women entrepreneurs in the two countries are constrained by access to capital, access to network and knowledge, and socio-economic norms
regulation and policies on women’s entrepreneurship in Canada
In Indonesia, there are no regulations or policies to support and promote women’s entrepreneurship. Canada has financing, international trade, and (drafted) procurement policies
Issues Specific Issues Policy Actions Low access to capital Limited availability of growth capital
through BDC
financing facility through women-focused
Socio-cultural norms and internal barrier Expensive childcare services constrains women’s mobility
services (e.g., government of Quebec, government of Ontario) Challenges to a) export, or Limited information on international trade Do not have the connections Do not have the “know-how” (e.g. how to pitch, seal agreement,..)
Service) established Business Women in Trade (BWIT)
in free trade agreement (e.g., Canada-Chile Free Trade Agreement) Concentrated in sector that are not “in-demand”
facility through BDC Capital for women enterprises in high-tech sector
b) succeed in procurement deal
is planning to adopt “set-aside” (similar to the U.S.) for women-owned enterprises in government procurement policy.
Overview
enterprises through BDC
committed
Success Stories
Key Learning
effectively raise awareness across the country and utilize their resources (e.g., business support service) to better support women entrepreneurs. Real example: BDC with WEOC (Women’s Enterprise Organizations of Canada)
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There is a limited amount of women-focused programs in Indonesia; majority are driven by the private sector
Name Access to Network Business Skills Business Supports Direct Funding Head- quarter Accelerator and Incubator Program Founders Institute Jakarta: Female Founder Fellowship Program*) v v v Jakarta Investing in Women’s Impact Accelerator v v v Jakarta Womenpreneur Community Incubator v v Jakarta Business Association or Network Ikatan Wanita Pengusaha Indonesia (IWAPI) v v Jakarta Womenpreneur Community Network v v Jakarta Capital Providers Angel Investment Network Indonesia (ANGIN) v v v v Jakarta Patamar Capital’s Investing in Women Fund v v v v Jakarta SEAF Women’s Opportunity Fund v v v v Jakarta Others: Workshop, Summit, etc. ASEAN-Japan Women Entrepreneurs' Linkage Program v v N/A Facebook #SheMeansBusiness v v v Jakarta The Entrepreneurship Indonesia Program by Google's Womenwill v v Jakarta Women Investment Series (WISE) v Jakarta
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*) Gender-neutral program but encourage women to participate in the startup ecosystem by incurring no program fee
KEY POINTS:
Programs are available in almost every province
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KEY POINTS:
10% Geographical distribution of the 40 identified programs….
15%
48% 10%
Region unidentified (N/A)
18%
0%
GoC Academe Private Sector
Initiators of the 40 identified programs….
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Overview
an accelerator program for women founders
technology or technology-driven ventures to reach product market fit and secure early revenue Success Stories N/A (still running the first batch) Key Learning
the program time to suit women founders who are mothers by not having it done in the morning
initiating growth funding networking
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There is limited amount of financing targeted for women entrepreneurs
Government Private Sector Notes Indonesia N/A, Gender-neutral financing consist
(revolving fund)
(ANGIN)
Capital and DFAT
by SEAF and DFAT
maturity stage (can synergistically support company from early stage to growth)
supply of entrepreneurs; Two of the programs are donor-driven hence there is a risk of unsustainability Canada
Fund
IAF
(under Western Economic Diversification Canada)
Pros: GoC and private sector are actively involved; Majority of private sector is not dependent on GoC funding Cons: Risk of unsustainability of the GoC’s programs post new election
Overview
Initiative (WEI) in 1995 to stimulate women’s entrepreneurship
loans, including Women Entrepreneurs of Saskatchewan Inc. (WESK)
Success Stories
women’s enterprise centres recorded higher employment growth than government’s loan program with no business suppport Key Learnings
revenue generated from existing loan to provide new loans
is proven to be more successful
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Overview
donates CAD 1,100 to a fund that makes low interest loans for 5 women-led businesses (called “Ventures”) The loan will mature in 5 years and will then be loaned out again to another 5 ventures (‘Perpetual Fund”)
cohort using peer-based decision making with two rules; First, it cannot be given to
Success Stories 23 companies invested in Canada, the U.S. and New Zealand Pilot model in 2013: 10 women, CAD 50,000 fund, 10 invested ventures Key Learning
be dependent to government, or other sponsors and donors
“…The structures we have in place don’t appeal to women. The VC model is, make 10 bets and one will come to fruition. It’s extremely high risk and that’s not how women invest.” Vicki Saunders, SheEO Founder
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As in the case globally, women entrepreneurs in the two countries are constrained by access to capital, access to network and knowledge, and socio-economic norms
Many of the challenges have not been fully addressed
What have been done Issues Specific Issues Government Academe Private Sector Limited access to capital Limited availability of growth capital X x ANGIN, Patamar Capital, SEAF High interest rate Govt to lower down tax rate to 7% x ANGIN’s friendly interest rate (case-to-case basis) Limited collateral/security for loan No collateral for KUR x ANGIN, Patamar Capital, SEAF do not ask collateral Undervalued by investors due to unconscious bias x x ANGIN and Investing in Women, each set up one-off gender lens investing training Limited access to network (i.e. mentors, advisors) Do not know and/or do not have the right connection x x ANGIN, IWAPI, and similar ecosystem players informally provide referral and be “connectors” Limited access to skills development programs Programs are not available in their area (centralized) x x International development agencies and ecosystem players set up one-off roadshow programs Unaware of such programs x x Ecosystem players refer to one another Programs are too “masculine” or do not suit women’s need (e.g. time) x x Investing in Women accelerator programs
What has been done? Issues Specific Issues Government Academe Private Sector Socio-cultural norms and internal barrier Perception that the role of generating income belongs to men x x x Household responsibility predominantly falls to women x x x Expensive childcare services constrains women’s mobility x x x Confidence gap x x Growing discussion at women-focused panels about confidence One-off workshops by women-focused
Challenged to export and/or succeed in procurement deal Limited opportunity in international trade and/or procurement x x x Not aware of existing programs (e.g., trade mission) x x x Do not have the connections x x x Do not have the “know-how” (e.g., how to pitch, seal agreement, ...) x x x Concentrated in sector that are not “in-demand” x x x
capital, access to network and knowledge, and socio-economic norms
Many of the challenges have not been fully addressed
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As in the case globally, women entrepreneurs in the two countries are constrained by access to capital, access to network and knowledge, and socio-economic norms
Several policy actions and practices for Indonesia to consider
Policy Area Barriers for Women Entrepreneurs Policy Actions Practices in Canada Improve access to capital Lower access to finance
women-friendly financial products
a fund for sector-specific ventures in with women founders
unconscious bias
address unconscious bias within the financial institutions N/A Enhance entrepreneurship education and skill development Limited skills to grow a business: Programs are not available in their area Unaware of such programs Programs are too “masculine” or do not suit women’s need (e.g. time wise)
development programs, or
development programs
for Communitech to initiate Fierce Founders accelerator program; through which it also offers matching grants
women entrepreneurs
set up 4 women enterprise centres Stimulate awareness and networking Low access to networks (e.g., mentors, advisors, investors)
and their programs related to networking
Government of BC financially supports Forum of Women Entrepreneurs (FWE)
women entrepreneurs information (e.g. mentors, advisors, financial providers, programs)
information about entrepreneurship
figures in Canada Prerequisite Deepen the study on current women’s entrepreneurship landscape in Indonesia Open up dialogue with existing players for on-the-ground insight and collaboration Conduct gender study to assess what practices can potentially work in Indonesia Special Task Force for Women Entrepreneurship
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