female informal entrepreneurs constraints and opportunities l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
FEMALE INFORMAL ENTREPRENEURS: CONSTRAINTS AND OPPORTUNITIES PowerPoint Presentation
Download Presentation
FEMALE INFORMAL ENTREPRENEURS: CONSTRAINTS AND OPPORTUNITIES

Loading in 2 Seconds...

play fullscreen
1 / 10

FEMALE INFORMAL ENTREPRENEURS: CONSTRAINTS AND OPPORTUNITIES - PowerPoint PPT Presentation


  • 180 Views
  • Uploaded on

FEMALE INFORMAL ENTREPRENEURS: CONSTRAINTS AND OPPORTUNITIES. Marty Chen WIEGO Network Harvard Kennedy School World Bank and University of Michigan Conference Female Entrepreneurship: Constraints and Opportunities June 2-3, 2009. REMARKS. Female Informal Entrepreneurs

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'FEMALE INFORMAL ENTREPRENEURS: CONSTRAINTS AND OPPORTUNITIES' - aricin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
female informal entrepreneurs constraints and opportunities

FEMALE INFORMAL ENTREPRENEURS:CONSTRAINTS AND OPPORTUNITIES

Marty Chen

WIEGO Network

Harvard Kennedy School

World Bank and University of Michigan Conference

Female Entrepreneurship: Constraints and Opportunities

June 2-3, 2009

remarks
REMARKS

Female Informal Entrepreneurs

  • Who are they, what do they do?
  • Why are we concerned?
  • What constraints and risks do they face?
  • What can be done to address these constraints and risks?

But first a few global facts…

global facts
GLOBAL FACTS
  • self-employment represents a far higher share of total employment in developing countries (33-50%) than in developed countries (around 12%)
  • self-employment is growing in all regions
  • a larger share of female workers, than male workers, is self-employed
  • self-employment is heterogeneous, including:
    • by employment status: employers + own account operators + unpaid contributing family workers
    • by class: entrepreneurial non-poor (mainly employers) + working poor (most own account operators and unpaid family workers)
  • women are over-represented among own account operators and unpaid family workers (the working class) and under-represented among employers (the entrepreneurial class)
female informal entrepreneurs who are they what do they do
FEMALE INFORMAL ENTREPRENEURS:WHO ARE THEY? WHAT DO THEY DO?
  • Occupation or Sector:
    • petty trade and commerce: especially sale of fresh and cooked food
    • light manufacturing: notably textiles, garments, and craft manufacturing
    • food and beverage processing: including liquor brewing in some societies
    • personal services: e.g. beauticians
  • Employment Status:
    • relatively few owner-managers who hire others
    • many own-account operators in single-person or family enterprise
    • many industrial outworkers producing under sub-contracts for supply chains
    • many unpaid contributing workers in family businesses

Note: in many societies, women are seen or treated as unpaid contributing family

workers even when they are the de jure or de facto head of the family businesses

  • Size: concentrated in smallest enterprises without hired workers
  • Place of Work: often the home
female informal entrepreneurs why are we concerned
FEMALE INFORMAL ENTREPRENEURS:WHY ARE WE CONCERNED?

# 1 Women less likely than men to be in wage employment

# 2 Female-run enterprises and women’s earnings contribute to…

  • Household Welfare: to family income and welfare
    • daily cash flow of households
    • female-headed households
  • Gender Equity and Women’s Empowerment: women’s status and ability to control their own well-being
  • Economic Growth: although small in size, women’s informal enterprises are numerous, represent large share of all enterprises in many countries, and contribute to growth
informal enterprises common and female constraints
INFORMAL ENTERPRISES:COMMON AND FEMALE CONSTRAINTS
  • Constraints common to all informal enterprises: these tend to be particularly severe for female informal enterprises
    • limited access to resources: productive assets + financial services + skills/education
    • limited access to business development services: especially innovation and competitiveness enhancing services + clusters + networking and inter-firm linkages
    • limited access to infrastructure: basic infrastructure (water, electricity, sanitation) + public infrastructure (roads, communication) + business infrastructure (backward and forward linkages)
    • unfair or hostile wider environment: macro-economic conditions, sector policies, procurement bids, laws, and regulations
  • Additional constraints specific to female entrepreneurs: these constraints are often more severe for female informal entrepreneurs than for female formal entrepreneurs
    • limited property rights: due to which women have fewer productive assets + less collateral to leverage capital
    • gender division of labor: by which women are seen to be the primary care givers + responsible for child rearing and domestic chores + responsible for daily cash flow of the household (which subsidizes the search for higher-return activities by men)
    • norms of female modesty: which restrict women’s physical mobility and interactions with strangers
informal enterprises common and female risks
INFORMAL ENTERPRISES:COMMON AND FEMALE RISKS
  • Risks common to all enterprises: exposure to these risks tends to be higher for informal enterprises than for formal enterprises + female entrepreneurs often have a harder time, than male entrepreneurs, coping with common risks
    • seasonality and natural disasters: associated with the weather
    • volatility in the market and economy: demand, competition, prices, exchange rates, depreciation
    • business risks: lack of contract enforcement + bankruptcy protection + negative return on investment
    • uncertain or unpredictable environment: policy, law, and regulation enforcement + general “law and order” situation
    • uncertain or unpredictable basic infrastructure: water, electricity supply
    • idiosyncratic crises and emergencies: illness andaccidents + fires and robberies + costly life-cycle events (marriages and deaths)
  • Additional risks specific to female entrepreneurs: exposure to these risks is often higher and the ability to cope is often lower for female informal entrepreneurs than for female formal entrepreneurs
    • care responsibilities: when other members of the family fall sick or become disabled
    • verbal harassment: by family, kin, or neighbors for working outside the home
    • sexual harassment: in the marketplace orby business partners
addressing constraints and risks of female informal enterprises a three part policy framework
ADDRESSING CONSTRAINTS AND RISKSOF FEMALE INFORMAL ENTERPRISES:A THREE-PART POLICY FRAMEWORK

Part I:Systemic Challenges

  • Micro-Enterprise “Half-Revolution”: need to do for non-financial services what the “micro-finance revolution” has done for financial services – including the focus on female informal entrepreneurs and “smart subsidies” for R & D
  • Economic Policy Dualism: need to reduce the biases and barriers inherent in many economic policies against informal enterprises in general and female informal enterprises in particular
  • Gender Norms: need to empower female entrepreneurs to be able to negotiate the gender norms that constrain their time, physical mobility, and/or interactions in the marketplace
addressing constraints and risks of female informal enterprises a three part policy framework9
ADDRESSING CONSTRAINTS AND RISKSOF FEMALE INFORMAL ENTERPRISES:A THREE-PART POLICY FRAMEWORK

Part II:Sub-Sector Development

  • Premise: financial + non-financial services to individual entrepreneurs are often not sufficient to address systemic constraints and risks
  • Sub-Sector Development: has significant potential for developing whole sectors of under-served informal enterprises of women and/or men – promising examples involving sub-sector infrastructure and linkages + service delivery + policy advocacy include:
    • craft and textiles in Bangladesh (BRAC)
    • poultry in Bangladesh (BRAC)
    • alpaca in Bolivia (Enterprise Works Worldwide)
    • embroidery in India (Self-Employed Women’s Association)
    • milk in India (Amul Dairy)
    • honey in Kenya (Honey Care Africa)
    • textile waste in Philippines (Partners for Subsector Development)
    • silk in Thailand (Jim Thompson)
addressing constraints and risks of female informal enterprises a three part policy framework10
ADDRESSING CONSTRAINTS AND RISKSOF FEMALE INFORMAL ENTERPRISES:A THREE-PART POLICY FRAMEWORK

Part III:Enabling Conditions

To inform economic policy-makers and negotiate appropriate

policies and interventions, female informal entrepreneurs need:

  • Visibility: through improved labor force and other economic statistics
  • Voice: organization into member-based associationsand representation in economic policy-making and rule-setting institutions
  • Validity: legal identity and official recognition as economic agents who contribute to the economy