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Access to Trade and Growth of Women ’ s SMEs in APEC Developing Economies. Indonesia ∙ Malaysia ∙ Philippines ∙ Thailand. Kate Bollinger WEP Workshop 2014 Ubud, Bali. Presentation Outline. Research Purpose and Partnership Overview and Methodology F indings Recommendations.
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Access to Trade and Growth of Women’s SMEs in APEC Developing Economies Indonesia ∙ Malaysia ∙ Philippines ∙ Thailand Kate Bollinger WEP Workshop 2014 Ubud, Bali
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 • Philippines • 100 SMEs • 50 exporting SMEs • ~50% female, ~50% male • Area-based quota sampling & simple random sampling • Indonesia • 108 SMEs • 42 exporting SMEs • ~50% female, ~50% male • Area-based quota sampling & simple random sampling • 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 Qualitative research • All Study Economies • Semi-structured interviews • Focus group discussions • Case studies of female entrepreneurs
Finance & Loans Complexity of the loan application process is a key problem for women owned SMEs across all countries surveyed. 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. 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
Networks Networks 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
Technology Women firm owners lag behind men in their knowledge and use of technology Awareness of Technologies that Would Make Business More Profitable
Corruption • Informal payments are a problem for all business owners, especially in the Philippines. Perceptions of Severity of Informal Payments Problem: By APEC Economy
Government Support How Supportive is Government of Businesses Like Yours?: All SMEs Malaysia Women business owners in Malaysia and Thailand perceived low levels of government support.
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. 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.
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