Access to Trade and Growth of Women’s SMEs in APEC Developing Economies
KATE BOLLINGERWEP WORKSHOP 2014UBUD, BALI
Indonesia ∙ Malaysia ∙ Philippines ∙ Thailand
Presentation Outline Research Purpose and Partnership Overview and Methodology Findings Recommendations
Purpose and Partnership with APEC
It is increasingly recognized that women’s full and equal participation in business has important repercussions for domestic and regional economies.
Asia-Pacific Economic Cooperation (APEC) commissioned a research study to increase understanding of the factors that encourage or deter access to trade and growth for women’s SMEs in:
◦ Malaysia◦ The Philippines ◦ Thailand
TAF extended the research to Indonesia
Research Overview Research examined a range of micro-economic factors that affect women’s ability to start and grow SMEs in the study economies:
◦ Economic and Financial Barriers
◦ Government and Policy Barriers
◦ Social Environment, Support Systems and Opportunities for Women
Research Methodology Quantitative research
Survey questionnaire
Malaysia• 92 SMEs• 55 exporting SMEs• ~50% female, ~50% male• Area-based quota sampling
Thailand• 80 SMEs• 56 exporting SMEs• ~50% female, ~50% male• Stratified random sampling
Philippines• 100 SMEs• 50 exporting SMEs• ~50% female, ~50%
male• Area-based quota
sampling & simple random sampling
Qualitative researchAll Study Economies
• Semi-structured interviews• Focus group discussions • Case studies of female entrepreneurs
Indonesia• 108 SMEs• 42 exporting SMEs• ~50% female, ~50%
male• Area-based quota
sampling & simple random sampling
Finance & Loans Complexity of the loan application process is a key problem for womenowned SMEs across all countries surveyed.
12%
41%
3.5%
13%
8.1%
2.3%
7%
14% 8.1%
38%
3.5%
21%
5.8%
1.2%3.5%
19%
Male Owner Female Owner
Learning about types of loans High interest rates
Finding a lender Completing application paperwork
Developing a business plan Getting Collateral
Waiting time for approval Other
Most Challenging Part of The Loan Process: Malaysia, the Philippines and Thailand
Employee Hiring and Training Among women and men business owners employee hiring and training was cited as their primary business challenge.
26%
37%
7%
10%
3%
9%
8%21%
40%
7%
11%
2%
13%
7%
Male Owner Female Owner
Physical space Hiring and trainingBusiness licensing Access to capitalAccess to technology/assets Relationships with clientsOther
Primary Business Challenge: All SMEs
Employee Hiring and Training Women owners hire more women than men owners.
Average Firm Size by Frequency of Interactions with Formal Networks
020
4060
Per
cent
age
of F
emal
e E
mpl
oyee
s
Philippines Malaysia Thailand Indonesia
NetworksNetworks are recognized as important to success in business, but women-owned firms lag in formal networking.
Frequency of Interaction with Formal Business Associations: All SMEs
TechnologyWomen firm owners lag behind men in their knowledge and use of technology
Awareness of Technologies that Would Make Business More Profitable
0.2
.4.6
.81
Mea
n of
Aw
aren
ess
Philippines Malaysia Thailand Indonesia
Male O
wner
Female
Owne
r
Male O
wner
Female
Owne
r
Male O
wner
Female
Owne
r
Male O
wner
Female
Owne
r
Are you aware of Technologies that would make your Business more Profitable?
Corruption Informal payments are a problem for all business owners, especially in the Philippines.
0 20 40 60 80 100percent
Thailand
Malaysia
Philippines
Severe Problem Moderate ProblemMinor Problem No Problem
Perceptions of Severity of Informal Payments Problem: By APEC Economy
Government Support Women business owners in Malaysia and Thailand perceived low levels of government support.
0 20 40 60 80 100percent
Female Owner
Male Owner
Very Supportive Somewhat SupportiveIndifferent Unsupportive/Hostile
How Supportive is Government of Businesses Like Yours?: All SMEs Malaysia
Social Support: Role Models & Mentors
75% of all business owners in the study had a relative who ran their own business. Women owners are much more likely than men to have a female relative in business.
64%
36%
78%
22%
Male Owner Female Owner
Yes No
Do You Have a Female Relative in Business?
Key Recommendations Finance and Loans: Work with the private sector, including SME business associations and networks, to support potential women entrepreneurs on financial literacy and the loan application process.
Networks: Support the capacity of business associations to reach women-owned firms and create programs to address their needs.
Technology: Develop training programs to help women business owners more effectively use technology appropriate for their particular business.
Key Recommendations Government Support: Build opportunities for more constructive interaction between business women and the public sector through activities such as public-private dialogues and trade fairs.
Social Support: Mentorship programs can pair women with role models to help that start their own business and navigate social constraints.
Both studies are available online
Areas of Research Focus◦ Economic and Financial Barriers
◦ Access to finance: interest rates, loan applications, collateral requirements◦ Operational: employee hiring and training, turnover, business technologies◦ Networks: business associations, informal networks
◦ Government and Policy Barriers ◦ Perceptions of government◦ Access to business information from government◦ Government services◦ Corruption/informal payments◦ Crime and safety
◦ Social Support Barriers ◦ Domestic responsibilities◦ Role models: relatives in business, mentors
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