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Women Entrepreneurs


Women entrepreneurs are increasingly becoming the driving forces of many economies particularly in Africa. Studies show that they account for 50 % of all businesses though these are in the lower end of the economic scale. In sub-Saharan Africa, it is estimated that they produce between 60 –80 % of food and constitute most of the businesses in the informal economy.


The IOE recognizes the importance of promoting women entrepreneurship in both developed and developing countries. Building strategic partnership and alliances with women owned businesses will not only enhance the representativity of IOE members but also strengthen their institutional capacity to negotiate and participate in national policy formulation processes. There are however a number of constraints to women owned businesses that need to be addressed. Some of the constraints include:

  • societal and cultural attitudes which play an important part in determining who within a society becomes an entrepreneur;
  • a lack of skills and education which constrain the growth potential of SMEs;
  • a lack of experience in starting and managing a business;
  • a lack of access to credit as women tend to request smaller loans which are not profitable for financial institutions, they also lack collateral, and operate in sectors which are seen to be less profitable by bankers;
  • a lack of information about markets, suppliers, export opportunities;
  • a lack of an enabling business environment which is a major constraint to all businesses including women owned businesses. The regulatory and legal framework governing competition, investment, transactions, contractual laws, labour laws, taxes, property rights and procurement procedures affects all enterprises.

In overcoming these obstacles, there are actions to be taken by government, financial institutions and employers’ organizations by working closely with women business associations. It is important for women entrepreneurs to join hands with mainstream employers’ organisations so that these obstacles, challenges and problems can be turned into legitimate policies. Using public forums, media and direct pressure upon legislators, it is possible to advocate to change those laws that are discriminatory toward women entrepreneurship.


Employers’ organizations can also develop specially targeted services to women entrepreneurs. This can be effectively done by supporting technical assistance centres, providing business and technical assistance to women, long-term training, counselling, networking and mentoring to potential and existing entrepreneurs. This way, they can help foster an entrepreneurial culture for women through education, management training and changes in societal values.

 

PUBLICATION
International Finance Corporation: Women in Business Newsletter
July 2006


Innovative Strategy for Developing Women Entrepreneurship and Gender Equality in Nepal
ECOSOC, 5 July 2006