We should be gender intelligent in SME policy formulation: Sanasa Development Bank Chairperson

Monday, 26 August 2013 00:00 - - {{hitsCtrl.values.hits}}

“Policymakers and service providers looking at promoting women’s participation in the SME sector should not only be gender sensitive but also gender intelligent,” said Samadanie Kiriwandeniya, Chairperson of Sanasa Development Bank. At a recent workshop hosted by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) to identify issues which affect women-owned SMEs, Kiriwandeniya noted that to be gender intelligent, invisible structures also need to be looked at and not only the visible structures which prevent women from becoming successful entrepreneurs. “These invisible structures come into play with the cultural expectations of a woman to be a homemaker. This can prevent women from becoming successful entrepreneurs if they feel that they would compromise their role in the family, especially their children,” she said. “About 80% of the economy is driven by SMEs, out of which women-led SMEs account for only around 10%. Over the past eight years, after the tsunami and the conflict, Sanasa has trained and given credit facilities to 150,000 women but only around 13% of this number has started business. It is pertinent for us to know why the others haven’t entered the economy.” Research indicates that the low visibility of women in the SME sector can be attributed to several factors, mainly lack of relevant knowledge, communication, legal and cultural constraints. Additionally, there are invisible structural barriers in the form of traditional customs, domestic and social expectations that restrict the mobility of women and prevent them from taking on the role of an entrepreneur. “When we talk about ‘women in the SME sector’, we need to break it down to the core element, which is the individual woman. They are individuals who make individual decisions. Finally, these individuals have to face these constraints individually and not as a group. They have to meet the expectations imposed on them by their families, by their culture and probably also through their education,” Kiriwandeniya noted. According to Kiriwandeniya, one of the main limitations for women to move from the micro enterprise sector to the SME sector is the lack of adequate financial literacy. “I have been working with a large number of women in the microfinance sector who are engaged in income generation activities but they have stagnated. “Lack of correct information to bargain and negotiate with financial institutions is a major setback for a woman entrepreneur who wants to move to the SME level. There is also limited support specifically for women from the financial institutions. Many women don’t have anyone to go to when they run into a financial crisis in their businesses.” E.A. Rathnaseela, Director of National Planning Department, Ministry of Finance and Planning noted in his address that the ‘Mahinda Chinthana’ gives strong emphasis to strengthening and developing women and specifically mentions developing entrepreneurship among women. “The Government has invested in promoting women entrepreneurship through direct investment in entrepreneurship development. In skills development, we have focused on educating women and on the transfer of technology to women entrepreneurs. This has been emphasised in all policy documents of the Government.” Over 50 participants representing both Government and private institutions discussed some of the major constraints in the business environment for women-led SMEs, the existing support schemes available and also discussed proposed measures to improve the business environment for women entrepreneurs and to address some of the existing socio-cultural barriers. International consultant Thomas Finkel shared with participants the measures taken by other countries to address these issues. Rifa Mustapha, Vice Chairperson of the Women’s Chamber of Industry and Commerce, elaborated on the various constraints in the business environment for women entrepreneurs.

Given the relatively low participation of women in Sri Lanka’s economy, the theme of the workshop intended to convey the idea that ‘smart economics’ are needed to encourage greater participation of women in the economy, both through employment and through entrepreneurship. The workshop was held in the context of the SME policy development process, bringing stakeholders together to gather recommendations and suggestions for measures to be included in a future action plan for policy implementation. German Muller, Senior Advisor, GIZ – SME Development and Roshini Fernando, Deputy Senior Advisor, GIZ – SME Development were also present at the workshop. Through the Sri Lankan-German SME Development Programme, implemented in cooperation with the Ministry of Finance and Planning, GIZ aims to support a cohesive policy framework that enable SMEs to grow in an inclusive and eco-friendly manner, enhance competitiveness of SMEs through technology transfer and innovation, improve access to finance for SMEs and enable SMEs to take advantage of green technologies and maintain nature’s capital for sustainable growth.