Brief overview of challenges and developments in the countries of the Eastern Partner region – advancing the women's entrepreneurship policy and practice
Brief overview of challenges and developments in the countries of the Eastern Partner region – advancing the women's entrepreneurship policy and practice
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Brief overview of challenges and developments in the countries of the Eastern Partner region – advancing the women's entrepreneurship policy and practice
1. Eastern Partnership Platform 2
International Women’s Entrepreneurship Laboratory
Brief overview of challenges and developments
in the countries of the Eastern Partner region –
advancing the women's
entrepreneurship policy and practice
Rome, Italy November 25-27, 2014
2. Mission Statement
The Georgian Association” Women in
Business”(GAWB) is a non-governmental
organization that supports development of micro,
small and medium businesses(MSMEs),
involvement of women in entrepreneurship,
provision of economic and legal education via
consultations and trainings and assistance in
employment and self-employment.
3. Main Activities
Research
Business and professional education
Leadership and mentoring
Assistance in creating new jobs and business
Lobbing and Advocacy
Public Awareness Rising
Business contacts and links establishment
Small Business Promotion
Access to technologies and business incubator
consultation and information
Local fairs and exhibitions
Publishing
GAWB works for viability Strengthening of women's
entrepreneurship in spheres (trade, service, tourism
and agriculture) in All regions Georgia
4. Research of problems and needs of
women entrepreneurs
Business and professional Education for
Youth and Women;
Work with the government to enrich
women economic independence and
gender equality ;
Advocacy of the rights women
Entrepreneurs ;
Public Awareness about economics
reforms.
Collaborating with International
organizations
5. Business Incubation Program
GAWB has a 10-year experience in
business incubation program has
become a sustainable organization
delivering an array of programs
and services to assist
entrepreneurs in establishing
businesses, products and services
throughout Georgia
GAWB , with financial and technical
support of USAID/SME project
operates three business
incubators:Tbilisi,Mesia and Gori
6. In 1998 GAWB established
the first Business Incubator in
Tbilisi to assist youth and
women in acquiring skills and
knowledge to create new
businesses in Georgia. Tbilisi
BI became a dynamic model
of sustainable and efficient
Business operations
7. Business Incubation Program
In Mestia up in 2007 -to develop tourism
The third business incubator in 2008 in
Gori for IDP women's to assist IDP women
to cope with the situation, poverty and
increase their access to employment
opportunities . Also, in 2008 GAWB was
created the Vocational Training center
for assistance to the Rehabilitation and Re-socialization
of Convicted Women
prisoners in the Rustavi #5 Common for
Women. This was a first business
educational and vocational center in the
penitentiary system of Georgia, aiming at
the re-socialization and rehabilitation of
the inmates. In November 2014 was
created the social enterprise a small
sewing workshops
8.
9. facility
resources
methods
tools
To deliver the business assistance to
client firms and address development
needs of each company.
BI focused on gender issues, which
serve as main sources of it clients and
that is another reason why the
majority of it clients are women
10. What We Do…..
We develop training programs in collaboration
with national and international professionals;
We conduct courses related to specific
entrepreneurship needs;
We create workshops on such as taxation,
accounting and others to guide new entrepreneurs
in creating their business;
We Provide practical training experience in
services such: tailoring, Handcraft, retail
management ,hairdressing, restaurant and hotel
service staff (cook maker, waiter, barmen…) in
order that people can create their own businesses
We incubate businesses and provide hands-on
assistance with an aim to produce successful small
firms that will leave the program financially viable
and freestanding
11. The BI s offer the following
business training courses to
beneficiaries:
How to Start Own Business
Business Legislation;
Business Planning
Leadership and Gender
Management and technology;
Tourism Management
Hospitality Management
Accounting and Reporting
Professional training courses in:
IT computer skills;
Felt and weaving /Embroidery
,Tailoring/
Hairdressers
Massage Therapist
Cosmetology Therapist
restaurant and hotel services
12. We provide initial place of
operations for the
following businesses:
Beauty salon
Graft studio
Tailoring
Catering
Small Printing shop
Computer service
Souvenirs Shop”Svanetian
“SVAN Sault” small
enterprise
13. Estimated results and outputs
With financial and technical support of
international organizations the
Association implemented a number of
projects, as a result of which:
4300 women obtained business and
professional education;
2000 women were employed and started a
private business;
160 women were employed in business
incubators;
2500 women improved their material
condition;
800 young people advanced their knowledge.
14. Women’s Economic Empowerment
Women participate less in the labor market
than men in Georgia.
The labor market in Georgia exhibits both
horizontal and vertical segregation based on sex
As research results demonstrate, 67 % of the
population is unemployed. The unemployment
level is particularly high among women (75
percent).
The pay gap between men and women is
significant in every sector
Women, particularly in the rural regions have
limited access to Internet, MSE networks,
trainings and services. They have limited
knowledge how to start or extend own business ,
how to develop and make profitable.
15. Micro Business
Individual who
independently carries
out an economic
activity
Annual turnover – not
more than 30 000 GEL
(17 000 USD)
Small Enterprise average
number of annually employed –
not more than 20 persons
annual turnover – not more
than 500 000 GEL (280 000
USD)
Medium enterprise- average
number of annually employed –
not more than 100 persons
annual turnover – not more
than 1 500 000 GEL (850 000
USD)
16. Employment In Enterprises
Classification of Small and Medium Size
Enterprises
192,242 201,748 209,532 223,178 224,354
273,581
305,340 315,447
84,192
91,784 74,443
78,198 91,943
103,004
73,661
97,090
84,554 67,677 65,276
86,086
76.3
126,651
155,396
138,348
500000
450000
400000
350000
300000
250000
200000
150000
100000
50000
0
2006 2007 2008 2009 2010 2011 2012 2013
Thousand
large medium small
Employment – 550.9 thousands Persons, Growth – 3% (to previous year)
Large Enterprises – 315.4 thsd. persons
• ratio to total employment – 57%
Medium Enterprises – 97.1 thsd. persons
• ratio to total employment - 18%
Small Enterprises – 138,3 thsd. persons
• ratio to total employment – 25%
SME Enterprises – 235.4 thsd. persons
• ratio to total employment – 42.7%, 3% growth compared to the
previous year
17. 38% of total number of employed and
self-employment population in Georgia
are women
Business Sector:
2% construction sector;
17 % agricultural and food
processing sector;
41%retail and 12% wholesale
in trade;
28%in the service sphere;
proportion of women occupying top
positions is very small in all sectors.
18. Government Programs of Supporting Microfinance
SME Development Strategy for Georgia 2015-2020”.
State Program titled “Supporting Micro and Small Businesses in Georgia”
launched from October 2014 by the Ministry of Economy and Sustainable
Development of Georgia. The program aims of development/promotion of
micro and small enterprises in the country, support business
entities/entrepreneurs, development regional markets and increase
incomes. The program is designed to provide proportional financing of
micro and small businesses for the population living in the regions
Characteristics of the Program
A total budget of the new state program is 20 million Gel;
Duration - 26 month;
Beneficials - residents of the regions of Georgia (except Tbilisi), population
(3 315 300 people).
19. Government Programs of Supporting Microfinance
Results
Increase the competitiveness of regional businesses
Launch modern business practices in the regions
Regional diversification of production
Other direct and indirect benefits of economic activity, growth and
development
Enterprise Development Agency was established From February 2014
in order to promote and support start-up, small and medium sized
businesses and the export potential of the country. The Enterprise
Development Agency is integrated in the system of Ministry of Economy
and Sustainable Development of Georgia as legal entity of public law.
State program “Produce in Georgia” started from June, 2014. The Ministry of
Economy and Sustainable Development and the Ministry of Agriculture of Georgia
are the coordinators of the program.
20. Also following institutions are involeved in the program:
• Entrepreneurship Development Agency,
• National Agency for State Property Management,
• Technology and Innovation Agency of Georgia,
• Agricultural Projects Management Agency
Characteristics of the Program
The state program is an opportunity for startups to fulfill their plans,
create new factories in the field of agriculture or industry;
A total budget of the new state program is 46 million GEL out of
which 30 million GEL is allocated for agricultural production and 16
million GEL industry production;
Duration – The state will provide co-sponsorship of the 10% of interest rate during 24
months.
.
21. Economic Competitiveness and Welfare
While the population as a whole has been hit hard by the economic recession, women occupy
an especially precarious position and face many obstacles in realizing their full potentials.
access to business opportunities and financial resources, tend to work in lower-paid sectors as
well as the informal economy and are on average paid less than men. Women have not
benefited to the same extent as men from economic reform efforts. Future reform projects should
therefore consider special measures to improve women‟s economic opportunities and labor
contribution. Specifically, measures should be taken to improve the life-work balance for women
and incentives adopted to support women entrepreneurs.
Economic Governance
In connection to tax reform, consider whether there are any explicit or implicit gender biases in
the personal taxation system of Georgia that would have different impacts on male and female
taxpayers.
Promote the use of gender-responsive budgeting exercises to track expenditures of tax revenue.
Improve protection of women‟s rights to own real property and register intellectual property.
Undertake gender analysis of economic restructuring and reform initiatives with
recommendations for gender-equitable policies.
Private Sector Competitiveness
Support gender sensitive solutions among lending institutions, specifically regarding access to
credit, lending barriers and business support.
Encourage lending institutions to track lending patterns by sex.
Assess the risks and potential negative consequences of targeting sectors that present distinct
gender imbalances or in which women and men have unequal control over assets and capital,
such as in agriculture. Invest in workplace programs that improve women‟s access to career
advancement and encourage women in non-traditional fields.
22. Challenges
Weak development of women enterprises in the regions;
Low demand on domestic market;
Lack of access to credit resource;
Lack of support measures for start-ups;
Lack of business experience and efficiency of SME
support institutions for women
Lack of business incubators;
Lack of budget resources;
Low level of competitiveness and quality consciousness of
SMEs;
Lack of business insurance system;
Low investment in SME sector inc.women
Unstable supply of energy resources for enterprises;
Large share of false products in market which decreases
the efficiency of support measure;
Low payment ability among the most population;
Regional conflicts
23. Support or the opportunistes
The current political leadership might create favorable environment for SME
promotion;
Favorable geographical location that makes business cooperation attractive
in the South Caucasus region and with neighboring countries;
Attractive environment for tourism development;
Development of SME regional infrastructure;
Membership of Georgia to World Trade Organization (WTO) enhances the
opportunities of businessman women to enter the foreign markets.
EU association agreement.
.
24. The main important task is to develop a coherent government
SME policy and create appropriate and sustainable
infrastructure.
Access for financing, especially for start-ups has to be
developed. Micro financing, credit unions have to be
strengthened to create self-employment and promote start-ups
women.
Georgia has a relatively well-educated population. However
business skills, enterprise management have to be developed.
Cooperation between SMEs especially in the formed well-established
neighbouring countries-women entrepreneurs,
has to be both strengthened as well as restored.
There is a need to develop business ethic.
25. Thank You for attention!
Nino Elizbarashvilli, President
Georgian Association of Women in Business - GAWB
E-mail: wbus@caucasus.net