Women Enterprenuership In Rm

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Women Enterprenuership In Rm

  1. 1. Local Government Support to Women Entrepreneurs in Republic of Macedonia Prepared by: Andrijana Bogdanovska Djurovic
  2. 2. The Purpose of the Study <ul><li>Main Objective : To provide insight and recommendations for strengthening and improving the capacities of local governments for support of women entrepreneurship in Republic of Macedonia. </li></ul><ul><li>Methodology: A Country Case Study with: </li></ul><ul><ul><li>Comprehensive Desk Research on secondary data (legislation, statistics, national and local strategies and programs); </li></ul></ul><ul><ul><li>Field Research (interviews) for providing insights in three municipalities (a mixture of rural and urban env. and different ethnicities); Workshop with relevant interested parties. </li></ul></ul><ul><li>Main Beneficiaries: </li></ul><ul><li>Local Governments; Women Entrepreneurs and Women wanna-be </li></ul><ul><li>Entrepreneurs; The wider community on local and national level. </li></ul>
  3. 3. INTRODUCTION - Economic A ctivity of W omen in Republic of Macedonia <ul><li>According to the Labor survey of Statistical Office of RM, for 200 7 , the rate of active population in the country is 55.7 %, the employment rate is 3 6 .2,% whereas the unemployment rate is 3 4 . 9 %. </li></ul><ul><ul><li>In 2007, w omen participate d with 63,7% in the inactive population; 3 9,6 % in the active population and only 39% of the employed. </li></ul></ul><ul><ul><li>M ost of the unemployed women are among the most active age group of 25-34 years (38.2%), followed by the age group of 35 to 44 (33%). </li></ul></ul><ul><ul><li>The census of agriculture performed in 2007 discovered that there are 202.236 women working as family members on the farms. </li></ul></ul><ul><ul><li>in 2006 in Republic of Macedonia there were 6.950 female employers (owners of a business), 11.706 own-account workers (sole proprietors) and 37.166 family workers. No specific data on Women Eneterprenuers. </li></ul></ul>
  4. 4. Basic Facts about Entrepreneurship & its importance for Local D evelopment <ul><ul><li>What is entrepreneurship – a wide definition? </li></ul></ul><ul><ul><li>What are the phases of the entrepreneurial development? </li></ul></ul><ul><ul><ul><ul><li>Nascent Entrepreneurs; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>New Business Owners; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Established Business Owners. </li></ul></ul></ul></ul><ul><ul><li>What are the t wo basic groups of motivators that create entrepreneurs ? </li></ul></ul><ul><ul><ul><ul><li>The pull motivators ; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>The push motivators </li></ul></ul></ul></ul><ul><ul><li>What is the importance of entrepreneurship for the development on local and national level? </li></ul></ul>
  5. 5. Government Policies and Programs for Support of Entrepreneurship/ W o men Entrepreneurship <ul><li>Government actions fall into the following four areas: </li></ul><ul><ul><li>Regulatory Environment; </li></ul></ul><ul><ul><li>Access to Finances; </li></ul></ul><ul><ul><li>Manipulation with Taxes; and </li></ul></ul><ul><ul><li>Support Policies for entrepreneurship/women entrepreneurship. </li></ul></ul><ul><ul><li>These measures range from low regulatory route (USA approach) unto high support measures (EU approach). </li></ul></ul>
  6. 6. Government Policies and Programs The Regulatory Environment <ul><li>Covered with the Indexes of the Doing Business report </li></ul><ul><li>Three areas continue to persist as a major obstacle for the business in the country: </li></ul><ul><ul><ul><li>Dealing with construction permits; </li></ul></ul></ul><ul><ul><ul><li>Employing workers; and </li></ul></ul></ul><ul><ul><ul><li>Closing a business. </li></ul></ul></ul><ul><li>THERE ARE NO DISCRIMINATORY CLAUSES IN THE REGULATION THAT NEGATIVELLY AFFECT WOMEN ENTERPRENUERS. </li></ul>
  7. 7. Government Policies and Programs Access to Finances <ul><li>Milken Capital Access Index and the situation with the availability of commercial credits for enterprenuers; </li></ul><ul><li>National programs for provision of access to capital for eneterprenuers; </li></ul><ul><ul><li>( Agency for Employment offers grant s and microfinance schemes for several strictly t argeted groups of unemployed persons ( women & youth) ). </li></ul></ul><ul><ul><ul><li>The grant offered to nascent entrepreneurs is 3.000 euros. Total of 500 grants are offered annually. Only 25% of the grants were awarded to women in 2007. </li></ul></ul></ul><ul><ul><ul><li>The microfinance-credits are offered up to the same amount and under favorable repayment terms. Last year 2000 credits were allocated, out of which roughly 30% were given to women. </li></ul></ul></ul><ul><li>Government officials state that in 99% of the cases, women who applied received the grant or the credit. </li></ul>
  8. 8. Government Policies and Programs Manipulation with Taxes <ul><li>A common type of policy for supporting entrepreneurship includes manipulation of taxes at various jurisdictional levels . A taxation system f avorable to smaller and entrepreneurial ventures may encourage more people to start a business. </li></ul><ul><li>On local level business es pay additional communal taxes to the local government. These taxes differ from a municipality to municipality and in many cases become the most commonly used tool for attraction of new capital. </li></ul>
  9. 9. Government Policies and Programs Support Policies for Entrepreneurship <ul><li>With the National Program for Support of Eneterprenuership, and through the Ministry of Economy, and the Agency for Entrepreneurship, the following activities are supported : </li></ul><ul><ul><li>Creation of Business Centers on regional level; </li></ul></ul><ul><ul><li>Creation of new Business incubators; </li></ul></ul><ul><ul><li>Training programs on entrepreneurship for the youth ; </li></ul></ul><ul><ul><li>Training for the established entrepreneurs on management,quality of standards, importance of Intellectual property and importance of IT; </li></ul></ul><ul><ul><li>Established and fully operational voucher system for provision of training and mentoring to nascent entrepreneurs and new business owners. </li></ul></ul><ul><li>… very few of these support activities are prepared or implemented in cooperation with the local governments and none is designed for specific targeting, encouraging and support of women entrepreneurs on national nor local level . </li></ul>
  10. 10. Basic Facts - L ocal Government in RM <ul><li>Governed according to three specific laws: </li></ul><ul><ul><li>The Law on Local Self-Government (2002), </li></ul></ul><ul><ul><li>The Law on Financing Units of Local Self-Government (2004); & </li></ul></ul><ul><ul><li>The Law on Local Self-Government Territorial Organization (2004). </li></ul></ul><ul><li>These laws regulate the legal status of local units of government, the public functions falling under local responsibility, the financial system and the territorial units of local government. </li></ul>
  11. 11. L ocal Government in RM and measures of Support to WOEs <ul><li>Local government measures for support of women entrepreneurs fall into the following two categories: </li></ul><ul><ul><li>Th e direct forms of support include all activities designed to ease the start-up of a business in a community (regardless of gender) , to continue to function and be competitive at the market, i.e. financial support, license and/or construction support, training and management support for the entrepreneurs and for their employees. </li></ul></ul><ul><ul><li>2. The indirect forms of support include: provision of good primary and secondary schooling, adequate support for kindergarten children and adequate primary health care , provision of land and facilities. </li></ul></ul>
  12. 12. Case Study Municipality of Krushevo TOTAL population Note: Rate of unemployment (against active population) is 50%. Gender Statistics Rate of unemployed women (against active population) is 60%.
  13. 13. Case Study Municipality of Krushevo <ul><ul><li>A mixture of urban and rural municipality; </li></ul></ul><ul><ul><li>The most important source of income in the municipality is the Tourisam; </li></ul></ul><ul><ul><li>Among the economic sectors of the municipality, the most important area is the tourism in all its forms: winter, summer and alternative tourism. </li></ul></ul><ul><ul><li>There is developed and publicized Strategy for developing Tourism; </li></ul></ul><ul><ul><li>In the municipality there are 180 registered small and medium enterprises. </li></ul></ul><ul><ul><li>An adequate number of facilities for childcare, kindergartens and primary schools. </li></ul></ul><ul><ul><li>There is a functional and operating Commission for Equal Opportunities. </li></ul></ul><ul><ul><li>There is a Unit for Local Economic Development (LED); </li></ul></ul><ul><ul><li>The municipality receives funds for encouraging self-employment from the national government and many funds from international donors. </li></ul></ul><ul><ul><li>Bitola’s Business Center covers the municipality with its regional activities. </li></ul></ul>
  14. 14. TOTAL population Rate of unemployment (against active population) is 67%. Gender Statistics Rate of unemployed women (against active population) is 85%. Case Study Municipality of Осломеј
  15. 15. <ul><ul><li>A small rural municipality with predominant Albanian population; </li></ul></ul><ul><ul><li>The most important source of income is agriculture; </li></ul></ul><ul><ul><li>There is a developed and publicized Strategy for Local Development; </li></ul></ul><ul><ul><li>In the municipality there are 80 registered small and medium enterprises. Among the economic sectors in the municipality, the most important are: crafts, trade and catering. </li></ul></ul><ul><ul><li>An adequate number of facilities for childcare, kindergartens and primary schools. </li></ul></ul><ul><ul><li>There is a functional and operating Commission for Equal Opportunities. </li></ul></ul><ul><ul><li>There is a Unit for Local Economic Development (LED); </li></ul></ul><ul><ul><li>The municipality receives funds for encouraging self-employment from the national government and many funds from international donors. </li></ul></ul><ul><ul><li>Gostivar and Bitola’s Business Center covers the municipality with its regional activities. </li></ul></ul>Case Study Municipality of Осломеј
  16. 16. TOTAL population Rate of unemployment (against active population) is 16%. Gender Statistics Rate of unemployed women (against active w. population) is 15%. Case Study Municipality of Centar
  17. 17. <ul><ul><li>The most developed municipality in Republic of Macedonia dominantly urban – the business center of the capitol; </li></ul></ul><ul><ul><li>The most important source of income comes from trade and services; </li></ul></ul><ul><ul><li>The highest educational background of the population - higher than the national average; </li></ul></ul><ul><ul><li>There is a developed and publicized Action Plan for Local Development in 2006; </li></ul></ul><ul><ul><li>An adequate number of facilities for childcare, kindergartens and primary schools exist. </li></ul></ul><ul><ul><li>There is a functional and operating Commission for Equal Opportunities. </li></ul></ul><ul><ul><li>There is a Unit for Local Economic Development (LED); </li></ul></ul><ul><ul><li>The municipality receives funds for encouraging self-employment from the national government and many funds from international donors. </li></ul></ul>Case Study Municipality of Centar
  18. 18. Summary points Direct Influence on Women Entrepreneurs <ul><li>The municipalities covered with this research have not successfully addressed the economic empowerment of women in their local development strategies and action plans. As a result there is: </li></ul><ul><ul><li>A lack of awareness and capacity for addressing gender economic empowerment in the local community; </li></ul></ul><ul><ul><li>No clearly defined local government support to women entrepreneurs; </li></ul></ul><ul><ul><li>A lack of local government collaboration with: </li></ul></ul><ul><ul><ul><li>the Civil sector for provision of capacity building specifically targeting WOEs; </li></ul></ul></ul><ul><ul><ul><li>the national initiatives and with the civil sector for provisioning of access to information,capital and markets for women who lack collateral and social capital. </li></ul></ul></ul><ul><ul><ul><li>the private sector for building public-private partnerships for supporting SMEs in general, WOEs in particular. </li></ul></ul></ul>
  19. 19. <ul><li>There are established Commissions for Equal Opportunities in 95% of the municipalities in Republic of Macedonia. The Commissions are still young and the effects of their work are still not felt. </li></ul><ul><li>At local level there is a lack of more specific targeting for building local human resources in line with local development strategy focusing on exploiting local resources. </li></ul><ul><li>Local development strategies fail to identify and thus address the weak access to information provided by local governments to the entrepreneurs and the local business community. </li></ul><ul><li>There are neither local, nor many national government activities for raising and adding value to the role of the entrepreneur and especially the female entrepreneur in the local community. </li></ul><ul><li>Local governments provide adequate access to local resources in terms of child and health care. The provision of land, construction or arable, is limited due to the unfinished decentralization and the fact that many of these jurisdictions are still not transferred to the local governments. </li></ul>Summary points Indirect influence on Women Entrepreneurs
  20. 20. Summary points - national Direct Influence on Women Entrepreneurs <ul><li>There is a lack of information regarding the number, potential and challenges faced by women entrepreneurs on national and local level. There is no available statistics and research on this issue. </li></ul><ul><li>The low number of women entrepreneurs who received funds and training through the government support targeting SMEs are an indicator of a potential gender related issue that has not been taken into account when the programs were developed. The lack of official data on women entrepreneurs adds to this problem. </li></ul><ul><li>There is no Local or National Program for Support of Women Entrepreneurs. </li></ul>
  21. 21. Key Challenges <ul><li>These findings point to three key challenges that must be addressed: </li></ul><ul><li>How to effectively identify and reach current, potential and established women entrepreneurs on municipal and thus on national level?; </li></ul><ul><li>How to increase the capacities of local governments to integrate a gender perspective into relevant local government areas, especially the ones that focus on the local development?; </li></ul><ul><li>How to lead and coordinate the efforts of different stakeholders on local level for providing the best tailored support for women entrepreneurship? </li></ul>
  22. 22. Examples of successful support of Women Entrepreneurship <ul><li>Austria – Frau und Arbeit </li></ul><ul><li>Belgium : </li></ul><ul><li>The project Diane </li></ul><ul><li>The project “Affaires de femmes” </li></ul><ul><li>(&quot;Business of women&quot;) </li></ul>
  23. 23. Examples of successful support of Women Entrepreneurship <ul><li>Finland </li></ul><ul><li>The “Women’s Advisory Organization for Development of Rural Areas” </li></ul><ul><li> Women Entrepreneur Loan </li></ul>
  24. 24. Examples of successful support of Women Entrepreneurship <ul><li>Germany </li></ul><ul><li>Women’s Business Incubator Hanover </li></ul><ul><li>Existenzielle – </li></ul><ul><li>Magazine for Self-Employed Women </li></ul><ul><li>Promotion of New Occupational </li></ul><ul><li>Fields for Women in the Craft </li></ul>
  25. 25. Examples of successful support of Women Entrepreneurship <ul><li>GREECE </li></ul><ul><li> Agricultural and Urban Female Associations </li></ul><ul><li>Italy – The Pink card </li></ul><ul><li>Project of the province of Milan </li></ul>
  26. 26. Recommendations <ul><li>KC1: Identification and reach of current and potential women entrepreneurs on municipal level </li></ul><ul><li>For successfully bridging this challenge a benchmarking is needed which should include: </li></ul><ul><ul><li>a d evelop ed system for collecting da ta on women entrepreneurs in the community with established timeline of continuity; </li></ul></ul><ul><ul><li>information and research on women entrepreneurs ; </li></ul></ul><ul><ul><li>Outline of the existing forms of access to information, capacity building and finance by type of institutions and service , and </li></ul></ul><ul><ul><li>additional data on size (in terms of capital and number of employees). </li></ul></ul><ul><li>The benchmarking will allow segmentation of the entrepreneurs and further communication and targeting of the WOEs. </li></ul>
  27. 27. Recommendations <ul><li>KC2: Increasing the capacity of local government for integrating gender perspective into relevant policy areas </li></ul><ul><li>Policies and measures for supporting women entrepreneurs on local level can not be implemented unless there are no capacities in the local government for that purpose. </li></ul><ul><li>The recommendations for improving the capacities of local governments for support of women entrepreneurship include: </li></ul><ul><ul><ul><li>Allocating adequate time, staff and financial resources; </li></ul></ul></ul><ul><ul><ul><li>Strengthening staff awareness, knowledge and skills on gender issues; for </li></ul></ul></ul><ul><li>… creating and enforcing SMEs in general and WOEs in particular friendly municipal policies and practices for creating and implementing the best tailored support for women entrepreneurs. </li></ul><ul><li>The Strengthening of the Commissions for Equal Opportunities will add to the gender sensitivity on local level. </li></ul>
  28. 28. Recommendations <ul><li>KC3: Coordinating the efforts of different stakeholders on local level for providing the best tailored support for women entrepreneurship. </li></ul><ul><li>The synergy of the activities of all concerned stakeholders on local level: </li></ul><ul><ul><li>The local government; </li></ul></ul><ul><ul><li>The local business community; and </li></ul></ul><ul><ul><li>The civil sector. </li></ul></ul><ul><li>… is a required pre-condition for success in identifying, targeting, reaching, providing and advising women entrepreneurs on local level. Synergies with the activities of the national government and its agencies and collaboration with the private nationwide companies can be of crucial importance. </li></ul>
  29. 29. Best Tailored Support for Women Entrepreneurs <ul><ul><li>Provision of adequate access to information; </li></ul></ul><ul><ul><li>Provision of access to adequate resources: capital, land, facilities, childcare and care; </li></ul></ul><ul><ul><li>Provision of training, mentoring and all activities designed for increasing the capacities of the future “to be” entrepreneurs and the established business owners in the local community; </li></ul></ul><ul><ul><li>Promotional activities with an aim of strengthening the role of the entrepreneur in the local community and increasing her network. </li></ul></ul>
  30. 30. Best Tailored Support Provision of adequate access to information <ul><li>Identification of which information must be always accessible to SMEs; </li></ul><ul><li>Provision of adequate access to information. </li></ul><ul><ul><li>Proactive communication of the Unit of LED with the local business community; </li></ul></ul><ul><ul><li>Proactive collaboration with the civil sector; </li></ul></ul><ul><ul><li>Organization of an annual event for providing more info to the women entrepreneurs and for fostering the collaboration between the local government and the women entrepreneurs. Open Doors event; </li></ul></ul><ul><ul><li>Lobbying for and participation in a nationwide initiative for provision of a better access to information especially for rural women on the issues of small enterprises in rural areas. </li></ul></ul>
  31. 31. Best Tailored Support Provision of Access to Local Resources & Capital <ul><li>Assistance in the provision of access to capital; </li></ul><ul><ul><li>Partnership with national local government in the allocation of WOE specific grants; </li></ul></ul><ul><ul><li>Collaborating with the civil sector for fundraising capital for support of the nascent women entrepreneurs on local level. </li></ul></ul><ul><ul><li>Collaborating with the civil sector for raising the awareness among women for changes in traditional practices, regarding asset ownership and financial management. </li></ul></ul><ul><ul><li>Collaborating with the private sector and establishing public-private initiatives for provision of access to capital for WOE. </li></ul></ul><ul><li>Provision of childcare and care </li></ul><ul><li>Provision of land and facilities. </li></ul>
  32. 32. Best Tailored Support Provision of support for building capacities of WOEs <ul><ul><ul><li>Partnership and collaboration with national government for providing more specific trainings in areas that are specific for the resources of that municipality. </li></ul></ul></ul><ul><ul><ul><li>Partnership and collaboration with the civil ad the private sector for provision of mentoring. </li></ul></ul></ul><ul><ul><ul><li>Rural women are particularly at disadvantage due to their distance from adequate resources of information and knowledge, and due to their low use of ICT technology. The Iceland example of mentoring rural women is a good start point on how to overcome this obstacle in rural municipalities, but a nationwide initiative in this regard is required. </li></ul></ul></ul><ul><ul><ul><li>Partnering and actively contributing in all initiatives of forming Business Incubators for WOEs. </li></ul></ul></ul>
  33. 33. Best Tailored Support Promotional Activities and Networking <ul><li>A full communications approach for changing the paradigm surrounding the entrepreneurship in Republic of Macedonia: </li></ul><ul><ul><ul><li>National Campaign on increasing the awareness for the importance of entrepreneurship by profiling successful entrepreneurs from different municipalities; </li></ul></ul></ul><ul><ul><ul><li>National annual awards for the best entrepreneur/ women entrepreneur of the year; </li></ul></ul></ul><ul><ul><ul><li>National annual awards for the veteran in the entrepreneurship’ </li></ul></ul></ul><ul><ul><ul><li>Establishing annual reward for fully supporting the best three business ideas of a woman nascent entrepreneur on local level; (especially important for moving women out of the informal economy); </li></ul></ul></ul><ul><ul><ul><li>Providing role models </li></ul></ul></ul><ul><ul><ul><li>Covering these events with strong media presence, and word-of-month activities; </li></ul></ul></ul><ul><ul><ul><li>Organizing Open Doors events for women entrepreneurs of all target groups; </li></ul></ul></ul><ul><ul><ul><li>Creating a special page with all required information and news for women entrepreneurs on the municipal web page; </li></ul></ul></ul>
  34. 34. Best Tailored Support Promotional Activities and Networking <ul><li>In addition to these measures recommendations for improving the networking opportunities for WOEs go in the following direction: </li></ul><ul><ul><ul><li>Provision of networking opportunities of SMEs/ especially WOEs, by ensuring adequate presence of associations of WOEs or WOEs on all local government events and visits to: </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Fairs and commercial networking events; </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Twin cities; and </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Events involving attraction of capital and investments and opening new markets for the existing local businesses. </li></ul></ul></ul></ul></ul>
  35. 35. Best Tailored Support for Women Entrepreneurs on Local level In this regard it is good to remember that … ONE SIZE DOES NOT FIT ALL!
  36. 36. Thank you for your Attention! Andrijana Bogdanovska Djurovic

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