1. Access to Trade and Growth of Women’s SMEs in APEC Developing Economies KATE BOLLINGER WEP WORKSHOP 2014 UBUD, BALI Indonesia ∙ Malaysia ∙ Philippines ∙ Thailand

2. Presentation Outline Research Purpose and Partnership Overview and Methodology Findings Recommendations

3. Purpose and Partnership with APEC It is increasingly recognized that women’s full and equal participation in business has important repercussions for domestic and regional economies. Asia-Pacific Economic Cooperation (APEC) commissioned a research study to increase understanding of the factors that encourage or deter access to trade and growth for women’s SMEs in: ◦MalaysiaMalaysia ◦The PhilippinesThe Philippines ◦ThailandThailand TAF extended the research to Indonesia

4. Research Overview Research examined a range of micro-economic factors that affect women’s ability to start and grow SMEs in the study economies: ◦Economic and Financial Barriers ◦Government and Policy Barriers ◦Social Environment, Support Systems and Opportunities for Women

5. Research Methodology Quantitative research Survey questionnaire Malaysia 92 SMEs 55 exporting SMEs ~50% female, ~50% male Area-based quota sampling Thailand 80 SMEs 56 exporting SMEs ~50% female, ~50% male Stratified random sampling Philippines 100 SMEs 50 exporting SMEs ~50% female, ~50% male Area-based quota sampling & simple random sampling Qualitative research All Study Economies Semi-structured interviews Focus group discussions Case studies of female entrepreneurs Indonesia 108 SMEs 42 exporting SMEs ~50% female, ~50% male Area-based quota sampling & simple random sampling

6. Finance & Loans Complexity of the loan application process is a key problem for women owned SMEs across all countries surveyed. Most Challenging Part of The Loan Process : Malaysia, the Philippines and Thailand

7. Employee Hiring and Training Among women and men business owners employee hiring and training was cited as their primary business challenge. Primary Business Challenge: All SMEs

8. Employee Hiring and Training Women owners hire more women than men owners. Average Firm Size by Frequency of Interactions with Formal Networks

9. Networks Networks are recognized as important to success in business, but women-owned firms lag in formal networking. Frequency of Interaction with Formal Business Associations: All SMEs

10. Technology Women firm owners lag behind men in their knowledge and use of technology Awareness of Technologies that Would Make Business More Profitable

11. Corruption Informal payments are a problem for all business owners, especially in the Philippines. Perceptions of Severity of Informal Payments Problem: By APEC Economy

12. Government Support Women business owners in Malaysia and Thailand perceived low levels of government support. How Supportive is Government of Businesses Like Yours?: All SMEs Malaysia

13. Social Support: Role Models & Mentors 75% of all business owners in the study had a relative who ran their own business. Women owners are much more likely than men to have a female relative in business. Do You Have a Female Relative in Business?

14. Key Recommendations Finance and Loans: Work with the private sector, including SME business associations and networks, to support potential women entrepreneurs on financial literacy and the loan application process. Networks: Support the capacity of business associations to reach women- owned firms and create programs to address their needs. Technology: Develop training programs to help women business owners more effectively use technology appropriate for their particular business.

15. Key Recommendations Government Support: Build opportunities for more constructive interaction between business women and the public sector through activities such as public-private dialogues and trade fairs. Social Support: Mentorship programs can pair women with role models to help that start their own business and navigate social constraints.

16. Both studies are available online

17. Areas of Research Focus ◦Economic and Financial Barriers ◦Access to finance: interest rates, loan applications, collateral requirements ◦Operational: employee hiring and training, turnover, business technologies ◦Networks: business associations, informal networks ◦Government and Policy Barriers ◦Perceptions of government ◦Access to business information from government ◦Government services ◦Corruption/informal payments ◦Crime and safety ◦Social Support Barriers ◦Domestic responsibilities ◦Role models: relatives in business, mentors