CEBU, Philippines - Since women-run small and medium enterprises (SMEs) are prone to facing more challenges, the Asia-Pacific Economic Cooperation (APEC), other regional bodies and government in developing economies are recommended to uphold the status of SMEs owned by women.
A research study on women-owned SMEs in developing economies was conducted by the Asia Foundation. It was designed to capture important trends of SMEs run by women and men-run on an equal basis. The survey evaluated business environments in Malaysia, Thailand, Indonesia and the Philippines.
According to Katherine Loh, program fellow at The Asia Foundation, SMEs run by women are found to face challenges on finance and loans, networks, technology, employee hiring and training, government support, corruption, and social support.
In terms of finance and loans, she said that APEC and other regional bodies could collaborate with the private sector including SME business associations and networks to work with potential women entrepreneurs on financial literacy and the loan application process.
Governments, on the other hand, can also work with the private sector to build programs to help women entrepreneurs better evaluate the risks and benefits of credit, develop business plans, and help members acquire skills to better manage loan repayment.
Loh added that they should also support the capacity of SME business associations and networks to reach women-owned firms and encourage greater participation of women in regional and domestic trade fora to bolster their networks and opportunities towards global expansion.
Issues on technology, she said, could be managed with the collaboration of the public and private sectors in establishing training programs to help women business owners more effectively use technology.
The youth in the developing countries should also be encouraged to pursue science to address the gap on technology knowledge.
Government agencies should coordinate with educational institutions and business associations to create training programs that are designed to meet the needs of employers especially in the field of hiring and training.
“To address employee turnover, they can also advise business owners on how to attract and keep employees, including through benefits and training. Countries should invest more in the education and training of their workforces in the long-run,†Loh said.
Policy recommendations on government support include more constructive interaction between business women and the public sector, more responsive business environment to the business needs and availability of well-trained government officials that could help women entrepreneurs with their issues.
To lessen corruption and provide efficiency, governments should work on streamlining their processes especially those related in business registration and permit applications to reduce the number of transaction points.
Loh said that it is also suggested to promote an attitude of gender equality and the image of women as significant contributors to economies. Social support could be then extended with the creation of working groups of men and women from the public and private sectors who could deal with stereotypes about the role of women in the society. /JOB (FREEMAN)