Empowering women entrepreneurs By AKRAM KHATOON


ARTICLE (May 16 2007): It is a global experience that the entrepreneurial activities of women in the organised sector have a stronger impact on the size of GDP of a country than what is contributed by the overall female work force deployed in the civil services and income generation pursuits covered under the informal sector.

Therefore, any initiative taken to empower women to succeed as an entrepreneur has positive implications, not only as an appropriate economic policy of the government, but also for the improvement of the country's overall socio-economic environment.

It is because women have greater tendency to reinvest their savings, not only for expansion of their businesses, but also for education, nutritional needs and health care of their families that a strategy is needed for low income, developing countries to achieve all the Millennium Developmental Goals (MDGs).

Presently, apart from factors like a lack of infrastructure and the absence of an overall congenial business and administrative environment, hurdles like inadequate financial resources, lack of access to technology, education, business-related training, lack of social services and net working etc bar women entrepreneurs from entering the realms of the organised sector. A strategic approach is needed to address these issues, both at the individual and national level, and also at the international level, to sustain large scale businesses of women.

Presently, a major chunk of women businesses come under the purview of micro businesses, financed through personal savings or borrowings from sources other than financial institutions. The presence of five or six Micro Finance Banks and few creditable NGO based MFIs (Micro Finance Institutions), caters to hardly 5% of women businesses, hence 3/4th of self-employed women are operating in the informal sector.

For the transition of women-owned businesses from the informal to the organised sector, an environment of financial resource progression is the foremost need. For expanding/promoting business, women should have access to institutional credit, other than micro finance banks, which, due to their loan size limitations, fail to motivate women to expand their businesses, particularly in areas where they do not have, either access to conventional commercial banks, or where they are not accommodated by these banks for want of adequate collaterals to cover the loan.

To resolve the issue, conventional banks and specialised financial institutions, meant for financing the SME sector must come forward to finance women owned businesses, with growth potential that it evident from their cash/fund flow and assets building position, instead of demanding tangible collaterals. This is how a micro enterprise in the informal sector would be able to grow into a formal creditworthy company.

Lack of access to market is another impeding factor, which need to be addressed. No doubt during the last two decades a lot of improvement has been noticed regarding urban business women's access to the local market, through initiatives from various NGOs and Trade Development Authorities previously known as the Export Promotion Bureau (EPB), promoting entrepreneurship among women through identifying market outlets and establishing product display centers in main shopping areas. APWA, Behbud and Alfalah have played an important role in allowing access to both rural and urban business women, to perennial markets for their products, both at the national and international level.

A recent venture of women run markets set up in Northern areas, under the aegis of Aga Khan Rural Support Programme (AKRSP), is another initiative to promote entrepreneurship and networking facilitating the marketing of products of these women, where it would otherwise be difficult to get access to the market.

Despite these affirmative steps a women access to markets outside their immediate local markets is limited. They generally lack the skill and information required to take full advantage of market opportunities. Those who have participated in trade fairs organised by the EPB itself have immensely benefited and are getting orders from all over the country and abroad.

For expanding business, it is essential that women take it as mission to explore the needs and tastes of their customers, and the overall market trend both at the national and international level.

This further necessitates continuous improvement and innovation of their products, modern strategies for publicity of their products, achieving participation in trade fairs and taking an active role in networking with associations involved in similar lines of business.

Further initiatives to facilitate the passage of the products of women entrepreneurs to the international market are also needed at the international level. The WTO regime advocates for reducing inequalities amongst nations and empowering the less privileged population on the globe. Women in the true sense are the most disadvantaged segment of the population, both economically and socially.

It is a known fact that low income developing countries, particularly of South Asia are being denied access to industrially rich country markets and all rounds in context of the Doha talks held so far, have failed to reach a consensus on the issue. Non-adherence of WTO rules in general is adversely affecting the women-run businesses, also in the low income developing countries, including Pakistan, who by dint of their dynamism and hard work are producing exportable value added products.

As such, to arrest increasing inequalities among nations, developing countries, particularly agrarian countries, should be allowed greater access to industrially rich markets and also a degree of flexibility in implementing WTO rules till they achieve a level playing field.

Further, for sustainable growth of women owned businesses, it is essential that a platform is created for mutual co-operation and understanding between women entrepreneurs and for this, networking both at the national and international level is vitally needed.

No doubt, through the regional Chambers of Commerce & Industry, that have created women wings, and through NGOs like the Pakistan Association of Women Entrepreneurs (PAWE) and the Pakistan Federation of Business & Professional Women, women can have dialogues on the exchange of know-how and expertise and identifying markets etc.

But women with the potential for expanding their businesses and producing exportable goods need to have linkage with women entrepreneurs at the international level. For that, Women World Banking (WWB), based in New York and its affiliates all over the globe, can be accessed to acquire linkage for facilitating marketing and also for obtaining funding from institutional sources.

In the case of business women who are unable inability to offer the desired collaterals, the WWB provides the guarantee to the financing bank of country concerned by establishing a Stand by Letter of Credit in favour of that bank. WWB and its affiliates also impart training in business know-how through workshops and seminars organised from time to time. Further, from national platforms like PAWE and women wings of all Chambers of Commerce & industry and Pakistan Trade Development Authority (formerly EPB), support should be extended to women in business creation and development with particular emphasis on developing feasibility reports and business plans etc.

Project incubation can also be introduced by these establishments. This implies initiating and developing a project, which after going into production is sold to an entrepreneur to avoid the entrepreneur facing teething problems. For entrepreneurs are usually reluctant to start a project involving sizeable investment at the initial stages.

Initiatives taken by the government at the political level to increase women representation in the Assemblies, Senate and local government has no doubt paved the way for women empowerment at all counts, but a strategic approach is needed to bring a sustainable congenial business atmosphere, through effective control on the law and order situation and also the protection of women rights as envisaged in the country's constitution.

The Women Protection Bill, recently passed in the Parliament, excludes the greater part of recommendations made by the Women Status Commission, particularly the recommendation regarding the legal enforcement of inheritance of movable and immovable property by women according to teachings of Islam. This need to be adopted by the Parliament on a priority basis. This will go a long way towards facilitating women empowerment.

Women business organisations like PAWE and the Women Wing of Regional Chambers of Commerce & Industries, apart from undertaking the task of coordination and networking among business women, must act as a pressure group to make the government inclined to providing needed services for business women.

It is also needed that these particular business women platforms, and also the Ministry of Women Development, undertake field research in the conditions and characteristics of the activities and projects run and owned by women so as to facilitate the assessment of women entrepreneur's contribution to country's GDP.

Female economic participation in Pakistan

Women empowerment cannot be achieved until and unless they are financially independent
By Naureen Bakhsh Chaudhry

The world has certainly become a global village, causing goods to move freely and consequently priced at globally comparable rates. Inflation is a phenomenon stranger to none. From the domestic servant in your home to the executive working in a multi national, bearing the expenses has become an uphill task. Gone are the days when a single bread earner used to be able to provide for the whole family. At this point in time, it is not possible for a singe member of the family to fulfil the expenses and that too for large families. As the saying goes it is much better to “teach someone how to fish” than “give them a fish.” This means that if you “teach someone how to fish” they are then able to catch their own fish, become independent, and much more valuable. Women need to break off their stereotypical image of staying at home and doing the usual household chores, instead to reduce their financial problems, we need to teach them how to earn their bread.

The financial contribution of the women will secure their future and that of their children. Financial instability is one of root causes that cause domestic problems and violence in the home. Women’s own income apart from the actual amount and its final use, positively influences the self-perception of the women, enhances their independence, status and decision making, and increases their mobility outside their families. It is evident that the female participation rate in the labour force in Pakistan is one of the lowest worldwide. A global report released by the International Labour Organization (ILO, 2003) on equality at work shows that women are still being discriminated against in the workplace worldwide, with Pakistan having one of the lowest rates in the world for female participation in the workforce.

A woman’s involvement in household decision making in poor Pakistani households can be explained partially by her income earning status, which in turn is dependent on a multitude of factors. These factors include individual characteristics (such as her age, duration of marriage, literacy and number of living children), socioeconomic status, and attitude of family members about women working outside the home, and availability and accessibility to financial support systems. According to a study conducted by Khan and Qureshi (2002) that as compared with housewives, a significantly larger proportion of working women reported have greater autonomy as measured either by involvement in or independent domestic decision making as well as in freedom of movement. Employment of women thus seems to be an enabling process helps to break down the patriarchal system and promote egalitarian relationships within households. Paid work for women is likely to bring internal change within the family by transforming power relationships between men and women (Mhloyi 1994). In the 1970-90 era, the Asian Pacific countries recorded a 1.96% increase in GDP for every 1% of women’s participation in the non-governmental employment. Female economic participation in newly industrialized countries’ (NlCs) economic growth over three decades contributed 35-40% of their annual GDP growth. Pakistan definitely needs the women participation to come out of its economic slumber.

Women empowerment cannot be achieved until and unless they are financially independent. If we look around at some countries such as India, Bangladesh, China, Japan and Israel, their women are contributing largely to the economy and their contribution is growing. The women of these countries contribute largely to their economies besides being housewives. The economic contribution of women has a highly positive impact on the growth rate of the economy. Pakistan needs to initiate programs which promote women employment and entrepreneurship.

Education for girls

Pakistan is supposedly enjoying the facilities of the 21st century, whereas our womenfolk are not educated. So do we still enjoy the 21st century amenities? The most vital aspect is to start at the youngest level and promote education for girls. Primary education must be compulsory for all girls, future employment and even running a business definitely requires the woman have at least the basic education. For those who cannot send their girls to school due to financial instability, their families can be encouraged to send the girls to school by providing the girls with opportunities to earn while at school with “compulsory” on the campus jobs. Similarly the girls’ skills can be groomed at school. This could include painting, sewing, embroidery, knitting making baskets, baking, weaving etc. Once they have specialized in any of these skills, they can then be given the opportunity to make things and even sell them.

Higher level education is also very important for the women. Attitudes toward female employment are quite different in the wealthier and in the more upper middle classes. Particularly, highly educated women like teachers and doctors are needed for keeping up gender segregation, and this demand has had a positive influence on the employment of highly educated women in these fields. Due to the compatibility of these professions with gender segregation and the high educational background which they require, they are associated with a high social status, and highly qualified women are still mainly concentrated in these two professions: one quarter of all doctors and one third of all teachers in Pakistan are women (Government of Pakistan 1989b).

Skill development and promotion of the cottage industry

When it comes to creativity and talent, Pakistani women are far ahead of many others. Every individual possesses some talent or the other, the real issue is to identify that talent. Teams from government organizations and Non-governmental organizations (NGOs) need to go to the rural areas and engage those women who are financially constrained but do not have source of income to help them. These teams must take professionals such as designers, tailors, weaving experts, home-economics teachers etc. These professionals may then form groups of women to work with, giving them the guidelines needed. The group once groomed may then be given targets by their mentor upon whose fulfilment they would be compensated in terms of salary and benefits. This will help the professionals to get the work done in a better way and assist the women in terms of finance. The less skillful women or the educated ones can set up day care facility or even school facility for the children of the other women working in the group. These women can be paid by the association that has set up the group. This is something that a few of the designers are doing now. Just recently Amir Adnan, a notable designer brought women from Dadu for his Fnk Asia collection, showed them the latest trends and their designs. These women were then sent back to Dadu, where they then designed clothes and brought them back to Amir Adnan. According to him the designs that they came up with were highly unique and ethnic. He now plans to employ women from the Kailash area to design for them. Similarly some time ago, Jemima Khan also employed women to design and embroider clothes, which were then sold in the UK. Thus we have evidence that the women of Pakistan are capable of a lot more than our perception. In this way the women can excel in the business of weaving, embroidery, pottery, packaging, flower growing, forestation, nursery seedlings, bee-keeping, rug and carpet making etc. Each village must specialize in one or two of these trades. Just as groups of women in China, Israel and Bangladesh are engaged in the basket making business. With all of us living in a global village, we have the potential to promote the talent of our women across borders, resulting in economic reprieve for the country and the women.

Women and microfinance
Once these women are established and decided on what they ‘can’ and ‘want’ to do then the group of women can move towards establishing their business in group form. At this point the role of microfinance will be like that of a catalyst for the women’s success. The micro-finance banks should focus on group loans which are better for the banks too in terms of their relatively lower risk as compare to the individual loans. The risk faced by these banks is highly dreaded by them as they are providing non-collateralized loans. With the group loan, to minimize the risk the method adopted by the pioneer of micro-finance in the world the Grameen Bank is that of the ‘joint-collateral’. In this approach if one member of the group fails to repay the loan, none of the group members would be eligible for a loan in the future. With this type of collateral there is effective risk management for the microfinance loans and the women will also work hard and encourage their group members to do so too so that they can all repay the loan and benefit for loans next time.

Employment in the factories

For the more risk averse women, who would want to have a job and fixed monthly income, the factories need to employ women in their assembly line and packaging. As in China, there are women putting the screws in the bulbs that are coming through the assembly line. Women usually want to work towards ‘perfection’; hence they would definitely work towards high performance in such jobs as well. This option could be employment in the factory or payment according to task performed.

Tourism and women
Tourists are being attracted to Pakistan with this year being the “Destination Pakistan 2007’. During the peak tourist seasons, the women of the respective areas can form a group and with the assistance of the local government can arrange an exhibition on the pattern of an “expo”. In this way the tourists can purchase things and it can serve as promotion of the potential that the women have. Brochures and catalogues with the details of the women’s work can be given to the tourists. People from different countries could then get products made by these women in Pakistan.

Campaign to create awareness
Women are not aware of what they are capable of and of the opportunities that exist for them. For this the government and NGOs need to create awareness in the rural areas including the farthest of them all, so as to give the women a ray of hope in terms if finance and independence. This includes media campaign through radio and television, workshops inviting the women and then giving them ideas on how to recognize their potential and cash in on it. Door to door campaign is also needed in the interior areas of the provinces where the women are not encouraged to move out of their homes. The women need mentors who may encourage them and promote their talent. Since the women need the assistance in terms of finance and knowledge. Specialists from different industries need to come forward and guide the women. This could be women to women contact so that the target women and their families feel comfortable with their exposure. Similarly microfinance banks also need to enhance their out reach to the people. Very few people know what microfinance is and how they would be eligible for it. Microfinance is the catalyst for the success of the women. We have the example of the Grameen Bank which has changed the lives of many of the Bangladeshi women, thus the microfinance banks in Pakistan can prove very beneficial for the women and improve their out reach too.

__________________
Time is like a river.
You cannot touch the same water twice,
because the flow that has passed will never pass again.
Enjoy every moment of life.

I have learnt silence from the talkative, toleration from the intolerant, and kindness from the unkind; yet strange, I am ungrateful to these teachers.

What women want? By Maria Patel

Whether a woman lives in urban society or comes from a rural background, she is beleaguered while she is out of her house. The security of women is a big issue, including of course sexual harassment, while she is travelling in a bus or any other public transport. Shopping or working, she can be harassed by a scrutinising glare, touch or a pinch.

While discussing feminine social issues with one of the penguin militants of Jamia Hafsa, a woman aggressively added: “It is most probably because of the frustration prevailing in our society.” But the question is, frustration for and out of what? “Women’s presentation in the media as sex objects and commodities and the treatment of women in our daily lives as a subservient source of gratification is what our society is actually practising. Those who are charmed by the woman on a roadside hoarding, wearing a pair of jeans, fail to actually grant respect to other women and take them as a commodity,” the woman argued.

The fact that women are used as a commodity cannot be overlooked. The media, which is owned by our conventional and conformist patriarchal society, promotes the use of non-stereotypical images of women by bringing them forth to actually sell their businesses. Yet, the hoardings projecting women are not an excuse for men’s sexual frustration which may lead to rape. There is no way of justifying rapes of immature girls by a group of 5-11 people (take the recent case of a nine-year old girl gang-raped by a group of 11 men in Lahore). These are definitely ways of trying to de-criminalise behaviour which is absolutely intolerable.

But then there comes the question why a woman decorates herself so much? Why does she dress up in a seditious manner? The New World Order supported the abuse of women by entrepreneurial mechanisms. The will, confidence and courage of women were dabbed. As a result, women developed social insecurity among them. Consequently, women started acting as commodity by decorating themselves with trinkets and cosmetics, just to fit in society. Hardly any woman dresses up to look good for herself. She wants to do it for a society she lives in. All this makes the urban social setup somehow gender-friendly and works to discard stereotypical images of men and women through media and advertisements and the frequent use of derogatory language by the urban women.

Being an Islamic Republic and having a society which is dominated by the bourgeoisie class, the female derogatory social exposure was widely felt but no one except Jamia Hafsa reacted to it in the meekest of manners. They voiced all these concerns with aggression and by the use of their violent penguin militant. From Children’s Library to the brothel house they “take care” of every place and person in a very “humanistic” way.

And it is not long since our tourism minister Nilofar Bakhtiyar suffered from the Islamic feministic hoot. Lal Masjid issued a decree of “punish and sack” for Nilofar Bakhtiyar being snapped in an “obscene manner” with the paragliders of Paris. Look how caring they are as they take each of the women as their sisters and mothers and condemn if they are seen socially with non-bearded men. All the women “in power” instantly reacted to it as they took it as a threat against women liberation. All of them said that Lal Masjid is no authority to issue such decree. Whether take the case of Zille Huma or Nilofar Bakhtiyar, these sorts of reactions from “the ecclesiastics” are indeed reprehensible. Indeed, it is formidable to lose the seat if not the life.

I was wondering what will be the scenario if the sharia is enforced in future. Who and what would be the most affected? Instead of HSY, JJ would become the brand to buy (after all he is a bearded brand). “Black Niqab Affairs” will take over the charge of “Black Tie Affairs”, and the latest penguin clothes will be designed in a way that there would be an open lit around mouth for the munching of chips or licking of ice cream so that the advertising business does not end up in boxes. And the latest scuttlebutt to the news is that all the shoppers of Zamzama Boulevard, MM Alam Road and Jinnah Market are thinking of re-doing their wardrobes with “Black Cloaks” before the penguin seminary students take action nationwide.

However, aggression brings demarcation and that is what is happening these days. It is true that one cannot ignore the issue of women’s security and their move towards materialism and commercialisation is rampant. Similar is the women’s exposure in our growing advertisement market. On a more serious note, the dirty game of politics (similar to the dirty game of cricket) is being played in the name of religion. It is heart-breaking to see the exploitation and interference of someone in matters as personal as religion.

The writer is a Karachi-based freelance feature writer

__________________
Time is like a river.
You cannot touch the same water twice,
because the flow that has passed will never pass again.
Enjoy every moment of life.

I have learnt silence from the talkative, toleration from the intolerant, and kindness from the unkind; yet strange, I am ungrateful to these teachers.