women entrepreneurship development project...2016/05/11 · women entrepreneurship development...
TRANSCRIPT
WOMEN ENTREPRENEURSHIP
DEVELOPMENT PROJECTRationale - Implementation - Lessons Learned
Radisson Blu Hotel – Addis Ababa,
Ethiopia
May 11, 2016
OUTLINE
1. Setting the stage:Strategic Context in 2012
Gender rationale
Why WEDP?
2. The WEDP modelDesign and Structure
Line of Credit and Technical Assistance
Business Development Skills
Impact Evaluation
3. ConclusionsIndependent evaluation
Key successful features
Lessons learned
Setting the stage
Why WEDP?
STRATEGIC CONTEXT (…IN 2012)
1. MSEs will have to play a major role during the transformation of the
Ethiopian economy.
• the Ethiopian economic growth will not continue unless a structural transformation
takes place where workers move from subsistence agriculture to higher productivity
activities.
2. Unleashing the potential of women in the economic sector would
increase GDP growth substantially.
• reducing gender inequalities in education and the labor market could increase the
annual GDP growth in the country by around 1.9 percentage points (World Bank
2008)
3. The Government has a strong interest in supporting the MSE sector,
particularly for increasing women’s income.
• the development of small scale income generating activities for women is a specific
aim of the new 5-year plan of the Government – the Growth and Transformation Plan
2011-2015 (GTP).
GENDER RATIONALE (…IN 2012)
1. Supporting female entrepreneurs may be one of the most viable approaches for realizing the economic potential of the current generations of women
• The constraints women entrepreneurs are facing are lack of access to finance, land, training, education, and effective business networks (Triodos Facet 2011).
2. Microfinance in Ethiopia has a low coverage for women and do not provide suitable financing for women entrepreneurs.
• Together with the underdevelopment of the financial sector, this suggests a large potential for micro finance services.
3. Moreover, in terms of employment in urban areas, the private sector consists mainly of MSEs.
• According to the 2011 Urban Employment Unemployment Survey, over 50 percent of the employed women in urban areas operate or work for MSEs, which is their main vehicle for income generation.
WHY WEDP?
• Opportunity for the World Bank to design an investment
operation to support women entrepreneurs
• Entry points: gender related intervention + job creation agenda
• 2012-2016: from a social development intervention to a financial and private
sector development intervention
• Most growth-oriented women entrepreneurs fall into a ‘missing
middle’ trap, in which they are served neither by commercial banks
nor by microfinance institutions.
• High minimum loan sizes and excessive collateral requirements restrict women’s
access to loans from commercial banks.
• Microfinance Institutions (MFIs) primarily cater to micro-firms with group lending
schemes that provide very small loans.
5
Background
Design and Structure
PROJECT DESIGN
Project’s Objective : To increase the earnings and
employment of MSEs owned or partly owned by the
participating female entrepreneurs in the targeted cities.
Components World Bank DFATD Canada DFID UKTOTAL
(USD Millions)
Component 1:
Access to Microfinance
42.40 3.50 3.00 48.90
Component 2:
Entrepreneurial Skills
6.10 1.67 / 7.77
Component 3:
Project Management & Impact Evaluation
1.50 4.0 / 3.50
TOTAL 50.00 9.17 3.00 62.17
STRUCTURE – JOINT IMPLEMENTATION
4 regions
6 cities
9 city coordinators
2 PIUs
12 MFIs
45 OSSs
11 TVETs
ORGANIZATIONAL STRUCTURE
9
WIC Members:
- FeMSEDA
- DBE
- TVET Agency
- DAI/DFID
- Transtec
- CIDA
- World Bank
WEDP CLIENTS’ PROFILE
Indicator avg
Age 33.7 years
Business experience 4.2 years
Annual earnings $5600
Education Secondary
Business Type Sole Proprietorship
Years business existed 3.5
Number Employees 4.2 employees
Desired Services Loan + Training
Sector Trade
Sub-Sector Retail Trade
Component 1: Microfinance
MISSING MIDDLE FOR WOMEN-OWNED MSEs
TECHNICAL ASSISTANCE TO MFIs
TA
provider
TECHNICAL ASSISTANCE ACHIEVEMENTS I
MFIs USING ALTERNATE COLLATERAL
CASH FLOW LENDING SPREADING BEYOND WEDP
VOLUNTARY SAVINGS EXPANSION
1
2
3
MFI ACHIEVEMENTS (MARCH 2016)
3,812
CLIENTS
$41 MILLION DISBURSED
PAR30
< 1%
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
ACSI AdCSI Harbu SFPI
Cumulative Disbursed MFIs own Funds for WEDP loans
MFI USE OF OWN FUNDS FOR WEDP LENDING
CHANGING INDIVIDUAL LOAN SIZES
MINIMUM AND MAXIMUM DISBURSEMENTS
-00
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
ACSI ADECSI DECSI Harbu OCSSCO OMO SFPI Wasasa
Min Loan Size Disbursed Max Loan Size Disbursed
LOAN DISBURSEMENTS BY SECTOR
Agriculture2%
Construction
3%
Manufacturing
14%
Service35%
Trade47%
COLLATERAL COVERAGE
200%
125%
ALTERNATIVE COLLATERAL
Home54%
Other46%
Component 2:
Entrepreneurship Training
MENU OF TRAINING PROVIDERS AND TYPES
Training Providers
TVET Colleges (gov’t)
Business Skills Training
TVET Colleges (gov’t)
Personal Initiative Training
Digital Opportunity Trust (NGO)
Action oriented business skills training
Entrepreneurship Development Center (Private)
Entrepreneurship mindset change training
Typical contents
• Self analysis• Business skills and entrepreneurship
development• Gender issues and challenges in business• Behavioral skills in entrepreneurship• Strategic business planning• Business and market opportunities• Preparation of business plan• Sales and marketing• Procuring inputs• Production, workplace and staff mgmt.• Bookkeeping
“The aim of this component is to develop growth-oriented women entrepreneurs’
skills and facilitate their access to more productive technologies that can raise
their incomes”
TRAINING SATISFACTION
85%‘very satisfied’ with training
7,006 Entrepreneurs trained @ April 2016
300 to 500 entrepreneurs trained/month
GROWTH OF ENTERPRISES
35.70%
20.10%
12.20%
0%
10%
20%
30%
40%
Received WEDP Loan Received WEDP Training Control
Percentage Change in Yearly Profits in Year One of WEDP
18.23%
8.28%
0.86%
0%
5%
10%
15%
20%
Received WEDP Loan Received WEDP Training Control
Percentage Change in Number of Employees in Year One
EVALUATION
IMPACT EVALUATION
WEDP Impact
Evaluation
Component
1. Measuring Project
Results
2. Testing Innovations
with Impact
Evaluations
3. Policy Research
Studies
Measuring Project Results
• Baseline survey of 2,400 WEDP clients completed
• End-line panel survey of same respondents in 2017
Testing Innovations
• Psychometric testing to replace asset collateral - pilot with Amhara Credit and Savings Institute
• Comparing impacts of various approaches to entrepreneurship training (psychology-focused, technology-focused, traditional)
Policy Research Studies
• Policy study on women in male-dominated sectors (‘cross-overs’)
• Policy Study on access to finance challenges for women entrepreneurs
IMPACT EVALUATION
LESSONS LEARNED
INDEPENDENT REVIEW - I
• Given the success of WEDP’s activities to date and the
team’s pro-active efforts to resolve problems, the
project seems extremely likely to be completed with
positive results, having helped increase the earnings
and employment of women-owned MSEs in Ethiopia.
• WEDP is also giving PFIs experience in a new business
line: lending to individual women entrepreneurs, with
TA support to update appraisal tools and loan
products.”
(Independent Review of WEDP, July 2015).
INDEPENDENT REVIEW - II
- WEDP’s Access to Microfinance component provides excellent
experience to show financial institutions that women entrepreneurs
can be good borrowers and that with good cash flow analysis and
lending procedures, collateral requirements can be relaxed
- On the training side, the use of the TVETs—existing, government-
funded, training entities—as the main training provider has been a
good step in helping ensure that the WEDP-specific
entrepreneurship and business skills training courses could be
available after the end of the project.
(Independent Review of WEDP, July 2015).
1. It’s local• It’s a Government’s project implemented at the local level by local
institutions
2. It’s about knowledge• It brings international best practices in MSME finance and tailors them to
the local culture and context.
3. It’s innovative• It’s one of the very few women-only lines of credit in Africa and it brings an
innovative approach to SME finance
4. It’s technological• It applies technology in a smart way: e.g. psychometric testing
5. It’s replicable• The model can be easily adapted to other countries and contexts
KEY FEATURES OF THE WEDP MODEL
LESSONS LEARNED
1. Identifying and serving an untapped market segment• Growth-oriented Women entrepreneurs proved to be a profitable and
underserved market segment.
2. Adopting an holistic approach • Addressing growth-oriented women entrepreneurs’ needs from both a
supply and a demand side.
3. Using liquidity provision to channel knowledge• The success key is the provision of technical assistance to MFIs.
4. Real time measurement and hands-on implementation• The successful implementation requires close monitoring, an inclusive
approach to project’s management and access to regular results’
measurement.
THANK YOU !
Francesco Strobbe
Finance & Markets Global Practice - Africa RegionThe World Bank Group1818 H Street, N.W., Washington, DC 20433, USA Email: [email protected]