ebrd – supporting women entrepreneurs for forum for south east european women entrepreneurs...
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EBRD – Supporting Women Entrepreneurs
for
Forum for South East European Women EntrepreneursIstanbul September 2010
Michaela S BergmanMichaela S Bergman
Senior Social and Gender Policy AdviserSenior Social and Gender Policy Adviser
What is the EBRD?
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'00 '01 '02 '03 '04 '05 '06 '07 '08 '09
• International financial institution, promotes transition to market economies in 30 countries from central Europe to central Asia
• Owned by 61 countries and two inter-governmental institutions
• Capital base of €20 billionCumulative €44.4 billion
Unaudited as at 30 June 2009
What are the EBRD’s objectives?
• To promote transition to market economies by To promote transition to market economies by investing mainly in the private sectorinvesting mainly in the private sector
• To mobilise significant foreign direct investmentTo mobilise significant foreign direct investment
• To support privatisation, restructuring and better To support privatisation, restructuring and better municipal services to improve people’s livesmunicipal services to improve people’s lives
• To encourage environmentally sound and sustainable To encourage environmentally sound and sustainable developmentdevelopment
A network of 36 offices in 30 countries
More than half our bankers based in the region
Net cumulative volume by sector
Financial Institutions 32%
General Industry 12%
Agribusiness 9%
Natural Resources 7%Property & Tourism 4%
Telecoms 6%
MEI 7%
Power & Energy 9%
Transport 14%
Unaudited as at 30 June 2009
Change in labour force participation rates, 1989-2005
-30
-25
-20
-15
-10
-5
0
5
10
Me
n
Wo
me
n
Me
n
Wo
me
n
Me
n
Wo
me
n
Impact of transition:Impact of transition:labour market “separation”labour market “separation”
• Women’s labour participation declined at the start of the transition, but has since recovered
• Women now have lower unemployment rates than men, except in CIS+M
• Women are more in favour of state involvement, particularly in the social arena
• Women tend to be less satisfied with their lives
CEB SEE CIS+M
Source: World Development Indicators 2006
Impact of transition:Labour market “separation”
-30
-25
-20
-15
-10
-5
0
5
10
Cze
ch R
ep.
Est
on
ia
Hu
ng
ary
Lat
via
Lit
hu
ania
Po
lan
d
Slo
vak
Rep
.
Slo
ven
ia
Alb
ania
Bo
snia
an
dH
erz.
Bu
lgar
ia
Cro
atia
FY
RM
aced
on
iaR
om
ania
Ser
bia
an
dM
on
t.
Arm
enia
Aze
rbai
jan
Bel
aru
s
Geo
rgia
Kaz
akh
stan
Kyr
gyz
Rep
.
Mo
ldo
va
Mo
ng
oli
a
Ru
ssia
Taj
ikis
tan
Tu
rkm
enis
tan
Ukr
ain
e
Uzb
ekis
tan
Men Women
Change in percentage points
Source: World Development Indicators 2006
Impact of transition on womenWage equality has diminished
• More wage inequality in less advanced transition countries
• Wage differentials between men and women have increased
• Differences cannot be easily explained by job type or productivity
• Gender discrimination is evident from quantitative and qualitative studies
Sweden
UKFrance
USA
Italy
Slovenia
Kyrgyz Rep
Moldova
Mongolia
Hungary
Uzbekistan
FYRM
Romania
Slovak R.
Albania
Kazakhstan
BulgariaCzech Republic LatviaPoland
Croatia
RussiaEstonia
Georgia
Ukraine
Lithuania
0.45
0.55
0.65
0.75
0.85
0.95
0.45 0.55 0.65 0.75 0.85 0.95
Wage Equality
Labour Force Participation
Impact of transition on womenAccess to finance
• More female managers have difficulty securing a bank loan
• Female managed firms charged higher interest rates in some countries
• Financial development may lead to lower levels of gender bias in bank lending
• More needs to be done to understand constraints and opportunities for female entrepreneurship
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Alba
nia
Arme
nia
Azerb
aijan
Belar
us BiH
Bulga
ria
Croa
tia
Czec
h Rep
ublic Eston
ia
FYRM
Geor
gia
Hung
ary
Kaza
khsta
n
Kyrg
iz
Latvi
a
Lithu
ania
Mold
ova
Polan
d
Roma
nia
Russi
a
Serb
ia an
d Mon
teneg
ro
Slov
ak
Slov
enia
Tajik
istan
Ukrai
ne
Uzbe
kistan
female male
Share of businesses without a bank loan
Source: BEEPS, 2005
Gender and EBRD
• Gender equality - important component of the development and transition process
• Part of Millennium Development Goals
• EBRD’s commitment to expanding opportunities for women and promoting gender equality
• Impact of transition on women has varied by country and by issue
=>Developemnt of Gender Action Plan
PR 9: Financial Intermediaries • To assist FIs in
implementing the Bank’s requirement to promote sustainable development
• To enable the FIs to manage environmental and social risks
• To promote good environmental and human resource management within FIs
EBRD’s Lending to WomenEBRD’s Lending to Women
• 30% Lending to Financial Insitutions for loans to SMEs goes to women entrepreneurs
• Lending to Micro-finance institutions >> Women (no need for collateral)
E.g. MI-BOSPO
PR 9 – Financial Intermediaries Generic PR 9 – Financial Intermediaries Generic Gender IssuesGender Issues
• FI as employer:FI as employer:Women’s employment in this sector is strong and there are good career opportunities.
• FI services: FI services: – Where local laws restrict women’s ability to own land or fixed
assets, requiring land/fixed assets as collateral may make it difficult or impossible for women to borrow.
– Women, particularly poorer women, may lack the skills and/or confidence to be commercially active, including using the services of an FI. This may also make them more vulnerable to exploitation from doorstep loan sharks.
– Women are less likely to have received training of how to develop business plans, demonstrate credit-worthiness, and complete loan applications.
In addition to money In addition to money
• Money is not the sole need – Institutions need to Money is not the sole need – Institutions need to be able to upgrade IT and auditing systems. be able to upgrade IT and auditing systems.
• Upgrading of HR policies to ensure no Upgrading of HR policies to ensure no discrimination and good practicesdiscrimination and good practices
• Integrating gender issues in client’s policies : Integrating gender issues in client’s policies : increasing access to training for women increasing access to training for women entrepreneurs and borrowers, avoidance of –ve entrepreneurs and borrowers, avoidance of –ve stereotyping in marketing stereotyping in marketing
Actions to ensure ComplianceActions to ensure Compliance
FI as employer :FI as employer :– Collect gender disaggregated data at both Collect gender disaggregated data at both
staff and management level. The gender staff and management level. The gender balance on the Board of Directors and balance on the Board of Directors and Management Committees will be important Management Committees will be important to look at. to look at.
– All Performance requirements relating to All Performance requirements relating to labour and working conditionslabour and working conditions
Actions that Promote Best Practice (1)Actions that Promote Best Practice (1)
• FI as employer:FI as employer:– Significant gender imbalances in workforce/management, Significant gender imbalances in workforce/management,
and possible proactive measures to improve gender balance, and possible proactive measures to improve gender balance, should be discussed with FI.should be discussed with FI.
• FI services:FI services:– Mechanisms to ensure that a gender equality focus is applied Mechanisms to ensure that a gender equality focus is applied
in the granting of loans to both female and male-headed in the granting of loans to both female and male-headed enterprises as well as to male-headed enterprises will be enterprises as well as to male-headed enterprises will be important.important.
– The participation of female staff where female staff may not The participation of female staff where female staff may not occupy senior management positions, such as in loan occupy senior management positions, such as in loan decisions, will be important.decisions, will be important.
– FIs keeping statistics of percentage (number and value) of FIs keeping statistics of percentage (number and value) of loans broken down by genderloans broken down by gender
Actions that Promote Best Practice (2)Actions that Promote Best Practice (2)
– Consider gender appropriate modes of loan arrangements – Consider gender appropriate modes of loan arrangements – for example women favour small loans, might find it difficult for example women favour small loans, might find it difficult and expensive to acquire the documentation required by and expensive to acquire the documentation required by banks to verify their businesses, or are unable to provide land banks to verify their businesses, or are unable to provide land as collateral.as collateral.
– FIs should consider identifying opportunities for developing FIs should consider identifying opportunities for developing financial products that target women entrepreneurs and/or financial products that target women entrepreneurs and/or the poorer/rural communities (among which women may the poorer/rural communities (among which women may dominate).dominate).
– FIs should consider providing training in the community on FIs should consider providing training in the community on business development, so as to assist women in developing business development, so as to assist women in developing the appropriate skills and know-how to carry out successful the appropriate skills and know-how to carry out successful business activities.business activities.
New Development
November 2009, 50m November 2009, 50m Euros lent to Garanti Bank Euros lent to Garanti Bank with NDFC and Taiwan with NDFC and Taiwan ICDFICDF
Part of loan agreement Part of loan agreement was to identify and was to identify and promote extension of loans promote extension of loans to women entrepreneurs, to women entrepreneurs, beyond what currently beyond what currently being donebeing done
TAM and BASTAM and BAS
To support economic transition through promotion of the sustainability To support economic transition through promotion of the sustainability of the micro, small and medium enterprise sector.of the micro, small and medium enterprise sector.
Women in Business Programme of TAM and BAS – promotes and Women in Business Programme of TAM and BAS – promotes and supports women entrepreneurs in the MSME sector. supports women entrepreneurs in the MSME sector.
• Provides capacity building and business training targeted at womenProvides capacity building and business training targeted at women
• Targets niche industries with female tradition/female dominated Targets niche industries with female tradition/female dominated sectorssectors
• Provides links with EBRD funded FIs Provides links with EBRD funded FIs
• Assists in creating a support structure to enable work-life balanceAssists in creating a support structure to enable work-life balance
What Else?What Else?
EBRD identified issues and some constraints..
• But what do you think FI’s need to do
• What else can help women entrepreneurs in the region
• What can EBRD do to support?
• Let me know …. [email protected]