Description
Entrepreneurship is the act and art of being an entrepreneur or one who undertakes innovations or introducing new things, finance and business acumen, in an effort to transform innovations into economic goods.
Gateway to Economic Development through Women Empowerment and Entrepreneurship
InfoDev
International Women Working Group
April 2010
Working group Members Heinz Fiedler: Women Working Group facilitator Regional Coordinators: Mbarou Gassama Mbaye: Africa Annuar Mohd Saffar: Asia Rosita Djambazova: Europe & Central Asia Nejiba Khalfallah: Middle East & North Africa Noelia de León: Latin America & Caribbean
Contents Executive summary ....................................................................................................................................4 Context .........................................................................................................................................................7 I - Objective of the project .........................................................................................................................7 II - Research methods ............................................................................................................................... 8 2.1 Methodology ..................................................................................................................................... 8 2.1.2. Difficulties and limitations of the study ..................................................................................... 8 Chapter 1: Analysis of the relevance of women business incubation and entrepreneurship .......10 1.1. 1.2. Why focus on women business incubation? ........................................................................10 Women business incubators in the five InfoDev regions ...................................................12
Chapter 2: Women entrepreneurs and the business environment..................................................15 2.1. 2.2. Access to opportunities ...........................................................................................................15 Business environment and support .......................................................................................15
Chapter 3: Targeted sectors and business support services ........................................................... 21 3.1. 3.2. Targeted clients ........................................................................................................................21 Services offered ........................................................................................................................22
Chapter 4: women entrepreneurs constraints......................................................................................26 4.1. Main obstacles ..............................................................................................................................26 4.2. Main problems to be resolved .................................................................................................... 28 4.3. 4.4. Main challenges ........................................................................................................................29 Needs to meet........................................................................................................................... 31
Chapter 5: Good practices, effective business incubation models and components, and tools for women business incubators ...................................................................................................................32 5.1 Good business incubation practices......................................................................................32 2
5.2 5.3
Effective business incubation models and components.....................................................37 Tools to be shared ...................................................................................................................41
Chapter 6: Success stories .....................................................................................................................43 6.1. Preparation and collection of success stories ..........................................................................43 6.2. Feedback from guided-questions...............................................................................................43 6.3. Articles from various publications ..............................................................................................44 Chapter 7: Conclusions and recommendations by regions ...............................................................46 General conclusion ..................................................................................................................................... 50 Annexes .....................................................................................................................................................52 Annex 1: success stories ....................................................................................................................52
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Executive summary The research Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship” was launched by the International Working Group on Women Business Incubation (IWWG), and supported by the InfoDev program of the World Bank. It was carried out over a period of fifteen months (December 2008 – February 2010) by a team of five regional coordinators, supported by members of the Working group and guided by an international facilitator. The primary goal of the research was to provide information on women business incubation around the world. In their respective regions, the team of five regional coordinators, under the guidance of the facilitator, administered questionnaires, did direct interviews, Internet search, and literature review to collect the relevant information to complete the study. The team explored the following areas: Analysis of the relevance of women business incubators, the business environment for women entrepreneurs, the main sector women investigate and the services offered to women entrepreneurs, the constrains they face as entrepreneurs, the good practices, effectives business models and tools for Women business incubators. In addition, each region coordinator collected success stories. Building knowledge on women business incubator was important because business incubation has proven to be a tool to promote economic development even though there is little knowledge about women business incubation despite the dynamism women entrepreneurs. In addition, women entrepreneurs have specific needs which call for a gender analysis in order to better understand their needs and motivations and fully utilize their potential. The good news is that women business incubator is gaining momentum in many Asian countries e.g. South Korea, which has 14 women business incubators and is expanding slowly in other parts of the world. In the MENA region, new women business incubators have been implemented, with new infrastructures in Morocco and Bahrain. However, these findings should not hide the discrepancies. In Asia, China has one woman business incubator out of more than one thousand. Iran has about 45 business incubators, with less than 1% for women. In Africa, the concept of business incubation is just emerging in the majority of countries and progress is being made in Southern Africa, Mauritius has implemented 6 business incubators and 2 are focused on women. The research has shown that business environment is overall poorly favorable to women despite the governments and international support. The majority of respondents recognized the lack and/or inadequate financing as the main constrain: 86% of responses for Africa, 100% for Asia, 75% for ECA and 50% for MENA. In addition, many countries emphasized the lack of information, the lack of supportive networks, the lack of self confidence, the lack of knowledge as limitation in addition to the cultural barriers.
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Respondents requested legal reforms, more direct financing, the implementation of specific programs for women, more business support organizations, more capacity building, and more government and international support. The International Working group recommended increasing awareness and knowledge about women business incubation, increasing the supply of services to women entrepreneurs at large, reviewing laws and regulations to create a more favorable business environment for women entrepreneurs and strengthening the regional and global networks to better support women business incubation and entrepreneurship.
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Abbreviations AFEM ALEAP BI CAEF CIDEF ECA EU FEF GTZ ICT ILO IWWG LAC MENA NBIA PEJU SADEC SME UFCE UNDP USAID WBI Association des femmes entrepreneurs du Maroc Association of Lady Entrepreneurs of Andhra Pradesh Business Incubation Centre Africain pour l’Entreprenariat Féminin Centre d’Incubation et de Développement des Entreprises de femmes Europe & Central Asia European Union Fonds pour l’Entreprenariat Féminin Deutsche Gesellschaft für Technische Zusammenarbeit Information communication Technologies International labor organization International Working Group on Women Latin America and Caribbean Middle East and Northern Africa National Business incubation Association Programme Emploi jeunes en Milieu Urbain Southern Africa Development Community Small and medium enterprises Union des femmes chefs d’entreprises United Nation Development Program United States Agency for International Development Women Business Incubators
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Context The Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship” was launched by the International Working Group on Women Business Incubation (IWWG), and supported by the InfoDev program of the World Bank. It covers the five InfoDev regions: Africa, Asia, Europe & Central Asia (ECA), Latin America and Caribbean (LAC), Middle East and Northern Africa (MENA). It is also opened for participation from all over the world for building strong and reliable connections and relationships of the Working Group to the other organizations active in promoting Women Incubation and Entrepreneurship, under the general goal to enhance the role of women entrepreneurs through business incubation.
I - Objective of the project The overall goal of the research project was to provide information on women business incubation around the world, with the following specific objectives: ? ? ? ? To enhance the role of women entrepreneurs through business incubation; To generate knowledge outputs that help to build the capacity of existing business incubators targeting women entrepreneurs; To promote the sharing of knowledge about women business incubation; To summarize the challenges for Women Incubation specific to countries or regions and outline activities needed for further improving the support structures for Women Incubation; To establish a foundation for strengthening cooperation and network building between women incubators globally; and To learn about global project organization and network building.
? ?
The knowledge produced by the International Working Group on Women Business Incubation will actively be disseminated all around the business community of the world.
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II - Research methods 2.1 Methodology The working group members used different methods to collect information: Literature review, Internet research, direct interview and administration of questionnaires, using the same questionnaire translated into French, Russian, Spanish and Korean language. The five regional coordinators elaborated and sent more than 100 questionnaires via email to selected addressees and collected 45 questionnaires and 39 success stories posted on the IDisc website (www.iDISC.net). The information was collected from December 2008 to December 2009 in the five regions. A midterm report was presented for each region during the workshop in Kyrgyzstan on April 2009 and the draft of the final report was presented during the Global Forum on Business incubation in Florianopolis Brazil in October 2009. 2.1.1. Sampling The sampling was based on the willingness of participants to answer the questionnaires. In Asia all institutions that filled out the questionnaires were Women Business Incubators (WBI). In the LAC region, no Women Business Incubators could be indentified during the project. Regional Coordinators targeted first women business incubators and questionnaires were primary administered to women business incubators, after institutions that support women entrepreneurs, and finally those that support entrepreneurship at large Table 1: Questionnaires collected by region InfoDev Region Africa Asia ECA LAC MENA Total Number of questionnaires 15 10 10 4 6 45 Business incubators 6 10 8 4 3 27 Women business incubators 3 10 3 0 3 17
2.1.2. Difficulties and limitations of the study Overall, in the five regions, the main difficulty was to fill out correctly the questionnaire to get harmonized data, particularly the scale to measure the national policies and strategies for women entrepreneurship. 8
In the Middle East and North Africa region (MENA), the main difficulty was the harmonization of data: the different cultural and historical background of countries has created very different business environments. Additionally the region partly is influenced by ongoing conflicts causing further difficulties not only for business development at large, but also for research as in the actual project. This situation contributed to the low response rate resulting into only six countries involved: Tunisia, West Bank Palestine, Morocco, Tunisia, Bahrain and Syria (with success stories). In Latin America and Caribbean (LAC), the questionnaire was sent to more than 40 organizations, including the representatives of business incubators, universities, state organizations, NGOs, foundations, and associations that promote and develop entrepreneurship associated with women, only 5 answered the questionnaire. According to the LAC Regional Coordinator, this low rate of answer is due to a lack interest on the specific topic of women business incubator in the region and the common belief that showing of success could cause negative effects on a flourishing business and is perceived as “dangerous”. Successful women in business are reluctant to share their success because too much publicity is expected to cause envy and “attention” of (tax) authorities as well as the “informal sector” (imitation effect and decreasing of profit). In the Africa region, the main constrains were the limited access to the Internet, the lack of information on business incubation and the lack of knowledge on the concept of business incubation. Generally, the small number of countries involved in the project and the sampling method limit the generalization of the conclusions in the different regions. However, the study has provided a lot of information on women business incubation.
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Chapter 1: Analysis of the relevance of women business incubation and entrepreneurship
1.1. Why focus on women business incubation? 1.1.1. Women business incubation as a tool to promote eco development According to Real Estate Weekly, business incubators are widely recognized as proven tools for promoting economic development, commercializing technology, and creating jobs. The study, completed in October 1997, was conducted by the University of Michigan, NBIA, Ohio University and the Southern Technology Council under a grant from the U.S. Department of Commerce Economic Development Administration. It examined the impacts of business incubators, which house very early stage companies and provide on-site management and a full array of business planning, management and financial services. The results of the study on business incubation showed that the business incubators support programs for entrepreneurial firms have impressive and measurable impacts on the companies they serve. In addition, experts are calling business incubators a "best value" in economic development, based on low program costs and high return on investment to communities1 Women business incubation (WBI) is a tool to create sustainable business through mentoring and continuous support to women in addition training, provision of space and all services related to any business incubation. Furthermore, women business incubation is a way to create strong networks among women entrepreneurs. When they are among themselves, woman entrepreneurs feel more comfortable and confident; they become more open and willing to share knowledge and experience. Although the tools needed for successful women business incubation are not much different from those used already in business incubation, the general approach needs to be different for (potential) women entrepreneurs. This need is caused on one side by the environment. Not in all regions positive towards female entrepreneurs and where only relatively small social of legal barriers exist women still have the main responsibility for the family. Additionally more psychological factors keep women from staring on their own. “Incubation by women for women” could be the answer. Weather women business incubation is based organized “stand alone” (for women only) or as a specialized track within existing incubators needs to be decided case by case taking the specific situation and possibilities into account. According to the MENA report, women are becoming key players in the world economy as producers, employers, and business owners. In Saudi Arabia, women own 10 percent of real estate in major cities and have an estimated cash fund of SR 45 billion; 75 percent of that total is sitting idle in bank deposits. This potential is limited by an inappropriate educational background, a lack of role models, the gendering of entrepreneurship, a low social status, competing demands on time associated with family responsibilities and limited access to finance (MENA report, p. 7)
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Source Real Estate Weekly:http://www.allbusiness.com/operations/facilities-commercial-real-estate/6449411.html), October 29, 1997.
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Women population has a great potential to contribute of economic and social development, but this potential is not used as it should be. 1.1.2. Lack of knowledge about WBI and the dynamism of women entrepreneurs The actual and potential contribution of women in all areas of development has already been recognized and women have made a valuable contribution to in the area of enterprise development. Despite the increasing number of business incubators worldwide, the number of women business incubators is still very limited compared the possible involvement of women entrepreneurs in the national and global economies. The possible explanation of this situation is related to the nature of business incubators in developing countries. They are often focused on technology-based companies, which are not the domain of women entrepreneurs. The specific needs of women entrepreneurs often are not understood or ignored by policy makers. In addition, there is little knowledge about women business incubation and women entrepreneurs at large. Therefore the existing incubators – without further information and training - cannot sufficiently cater for women entrepreneurs’ needs. 1.1.3 Women entrepreneurs have specific demands and needs In many societies, women do not enjoy the same opportunities as men. Progress has been made in education and health protection, but political and economic opportunities remain limited for women. Women business incubation is needed because women have different demands they also have different priorities and motivation when starting or conducting their business: Women need specific networks and/or need to be introduced to existing networks; they prefer being mentored by women, in addition their triple work burden (home, family, business) don’t allow them to work on ordinary schedule, consequently, they will need different services. Furthermore, women’s entrepreneurship needs to be studied separately from men for two main reasons: ? ? Women’s entrepreneurship has been recognized during the last decade as an important untapped source of economic growth, The topic of women entrepreneurship has been largely neglected both in society in general and in the social sciences.
Women entrepreneurs create new jobs for themselves and others and they also provide for the society different solutions to management, organization and business problems as well as to the exploitation of new entrepreneurial opportunities. However, they still represent a minority of all entrepreneurs. Thus there exists a market failure discriminating against women’s possibility to become entrepreneurs and their possibility to become successful entrepreneurs. This market failure needs to be addressed by policy makers so that the economic potential of this group can be fully utilized (Coordinator report p. 4).
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1.2. Women business incubators in the five InfoDev regions 1.2.1. Asia Region With more than 2,339 business incubators, Asia region has more incubators than all four regions. Asia has also the largest number of women business incubators but women are yet still poorly represented. Among the 15 countries involved in the project, only five have confirmed the existence of women-focused business incubators in their respective countries. The remaining ten confirmed there is none in their countries (See Table 2).
Table 2: Number of Women Incubator/ business incubators in Asia Countries South Korea India Malaysia China Pakistan Australia TOTAL Number of Women Business Incubator 14 3 1 1 1 1 20 Number of business incubators 270 110 106 1,100 1,586 1% Ratio Women BI/ Total BI 5% 3% 1% Less than 1%
Women entrepreneur’s statistics are not well known and well represented. In Asia, among the 20 women business incubators, South Korea holds the better position, with 14 Women Business Incubators2 out of more 270 business incubators. In China only one out of more than 1,100 business incubators is focused on women. In Japan exist 73 women Universities and more than 300 business incubators, but there is no women business incubator. Malaysia has more than 106 business incubators and only one is focused on women (Asia report)3.
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A. Mohd Saffar, President Asian Association of Business Incubation& Regional Coordinator (AABI)) Women Working Group, Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Asia region report, www.iDISC.net
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A. Mohd Saffar, President Asian Association of Business Incubation & Regional Coordinator (AABI) Women Working Group, Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Asia region report, www.iDISC.net
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1.2.2.
The Eastern Europe and Central Asia region (ECA)
The region has about 111 business incubators but very limited number of women business incubators. Among 10 institutions surveyed focused on women only 3 are women business incubators: the Georgian Association of Women in Business, Gori Business Incubator, Georgia; the Business incubator of the Congress Women of the Kyrgyz Republic and the Women Incubator Kutahya in Turkey. Overall there is not enough official statistics about women entrepreneurship and women business incubation in the region.
1.2.3. Latin American and Caribbean (LAC) The region has more than 1,000 business incubators and half of them are located in Brazil. The regional coordinator could identify only three organizations supporting women entrepreneurs and no women specific business incubator (LAC report)4. Women manage many micro and small enterprises in Latin America and the Caribbean (LAC). Women own about 1/4 to 1/3 of all the micro, small and medium enterprises in the region (SMEs) and their participation continues to increase. In the last two decades the number of women in the business sector has increased from 22 to 48 percent (ILO-UNDP, 2009). However, the issue of business incubation for women is not seen as a priority in the region. Besides the existence of more than 1,000 business incubators, many industrial parks and clusters, operating in the region, many countries do not any business incubator and the few business incubation initiatives do not put any specific attention on women. There are organizations and initiatives to support entrepreneurship and a number of them also target women, but very few offer complete programs for entrepreneurs to develop the maturity stage of business. Almost no country in LAC has defined or effectively implemented a national policy to promote women's development through incubators or other programs. But there are different nongovernmental organizations active in promoting women entrepreneurship. 1.2.4. Africa Contrary to other regions, the concept of business incubation is not well known in Africa. Many countries don’t have business incubators a fortiori those focused on women. Institutions that support entrepreneurship often offer training and micro credit programs for women entrepreneurs. There about 170 business incubators in Africa and 87 concentrated in the SADEC region 70% are concentrated in two countries: South Africa (54) and Nigeria (21). There are 5 women Business incubators out of 170, the ratio women Business Incubators/Business Incubators is
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N. De Leon, 2009 Regional Coordinador, Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Latin America and Caribbean regions report, www.iDISC.net
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about 3% (Africa report)5. This ratio hides the reality that many African countries don’t have national policy geared towards business incubators. 1.2.5. Middle East and North Africa (MENA)
There are about 143 incubators in the region, 30 in Tunisia and about 50 in Iran and less than 1% is dedicated to women. Internet research shows that progress is being made toward supporting women entrepreneurs through incubation. The Village Business Incubator (VBI), which is a service centre for the development of female entrepreneurship in rural areas of the Lattakia Governorate, was created in Syria.i The Bahrain Incubator Center is working on implementing a women business centerii. In 2006, the Association of Moroccan Women Business Leaders (AFEM) launched an incubator called "Casa Pionnières" to counter the fact that women still considerably lag behind men in the business world. The initiative was dedicated to helping women with innovative ideas create their own businesses in the field of services and information technology6. In July 2009, the same association, AFEM, Moroccan Businesswomen's Association, implemented a new "business incubator" to promote entrepreneurship among women in the Rabat region. Overall, the best ratio of less than 3% shows that there are not many women business incubators in the five different parts of the world.
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M. Gassama- Mbaye, 2009 Regional coordinator, Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Africa region report, www.iDISC.net
http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/features/2006/08/28/feature-0
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Chapter 2: Women entrepreneurs and the business environment
2.1. Access to opportunities Participants were asked if the national policies provide the same opportunity for men and women entrepreneurs. In Asia 80% of participants said that women are given special opportunities contrary to ECA where most participants responded that men and women must have the same opportunities in business: 10% said that women have special opportunities. On average, 38% of respondents in the five regions said that opportunities are specially given to women entrepreneurs. Table 3: Access to opportunities Regions Equal opportunities for men and women 8 5 6 2 1 22 Opportunities for women specially 4 8 1 1 2 16 0 0 5 Opportunities for men specially 4 1 Number of responses % Special opportunities for women 29% 80% 10% 25% 50% 38%
Africa Asia ECA LAC Mena Total
14 10 10 4 4 42
2.2.
Business environment and support
To increase understanding of national policies and business environment for women entrepreneurs, participants to the study were asked to choose within the scale of 1 to 4 a figure that measures their perception of the level effectiveness of business environment and support for women. 2.2.1. Africa Region .
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Table 4: Business environment for Africa region Country Angola -Business Incubator Gambia - Chamber of Commerce Industry and Agriculture du Niger Guinea -Assia Guinée - Réseau des Femmes du Fleuve Mano pour la Paix Niger - Chamber of Commerce Industry and Agriculture of Niger Nigeria - Fantsuam Foundation Nigeria – AJA Senegal – CAEF Senegal – CIDEF Senegal – GTZ Senegal - Ministry of Women Entrepreneurship DEF Senegal - Ministry of Women Entrepreneurship FEF Sénégal - Union des femmes Chefs d’entreprises South Africa - Maxum Business Incubator at The Innovation Hub Tanzania - University of Dar Es Salaam Entrepreneurship Centre Total Average National strategies 2 2 2 2 1 2 1 2 2 2 4 4 2 2 3 33 2.29 National programs 2 1 1 2 1 2 2 2 2 2 1 4 2 1 3 28 1.86 International programs 2 1 3 2 2 2 2 2 3 3 2 2 2 2 3 33 2.21
Overall, participants consider that the business environment is poorly favorable to women in Africa. The region scores 2.29 for national strategies and 1.86 for national programs and 2.21 for international programs. The lack of support to women entrepreneurs is mainly due to “gender neutral policies” and the belief that women and men entrepreneurs have the same needs International and bilateral cooperation agencies provide more support than governments through training and micro-loans. Many countries have their national policy papers, but haven’t implemented and funded programs to support women entrepreneurs. According to a representative of the Ministry of women affaires and entrepreneurship in Senegal, the Belgium coop16
eration implemented programs for women entrepreneurs and the national programmes are sporadic (Interview Ministry women affairs, Senegal). The German Technical cooperation program for youth employment in cities has provided a technical and financial support for the Union of Women Business owners” (Interview GTZ, Senegal). 2.2.2. Asia Region Table 5: Business environment for Asia Institutions /Country Ulsan, South Korea Jeju, South Korea Incheon, South Korea Busan, South Korea Chungju, South Korea Gwangju, South Korea India, ALEAP India, Periyar Malaysia, SOHO Australia Total Average National strategies 3 3 3 2 1 3 0 2 2 4 23 2.3 National programs 3 3 4 2 2 3 2 3 2 3 27 2. 7 International programs 1 2 4 2 2 3 0 0 2 16 1. 6
The answer of the 10 women business incubators gave the following scales: 2.3 for the national strategies, 2.7 for national programs and 1.6 for international programs. Governments provide more support than international programs for women entrepreneurs through national strategy and programs. Some countries such are Japan that are not on the sample have progammes more focused on domestic violence against women than women entrepreneurship (Asia midterm report, www.idisc.net).
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2.2.3. LAC Region Table 6: Business environment for LAC region Institution Country Chile INCUBAUNAP Costa Rica – Centro de incubación de Empressa de Instituto Technologico de Costa Rica (ITCR) Argentina – Incubatec Domincan Republic - Red Dominicana de Incubadoras de Negocios y Emprendimiento (DOMINICANA INCUBA Dominican Republic eMprende, Inc. Total Average 2 7 2.33 2 8 2.67 0 5 1.67 National strategies 3 2 National programs 3 3 International programs 3 2 -
According to the LAC regional coordinator report, one major obstacle is the lack of public policies that promote and ensure women's participation in the economy. Women programmes are more focused on women’s human rights, violence against women, equal opportunities issues, etc. rather than entrepreneurship. There have been significant changes in the legal framework and public institutions have developed internal policies on gender equity, but they are yet still not enough (LAC regional report, p. 14). 2.2.4. ECA Region The conclusion might not reflect the reality because many participants did not fill out this part of the questionnaire. Only Bulgaria and Romania pointed that they have national programs that support women entrepreneurs. Armenia, Bulgaria, Georgia, and Kyrgyzstan have international programmes, mainly USAID and European Union (EU), but the support is insufficient “It is too small to have an impact” (participant from Armenia). Bulgaria, Romania and Poland, as European Union members, have national policy and strategy for equal opportunity for men and women however those strategies must be implemented. Experts and managers of the business incubators in the ECA region consider that there is no need to establish women business incubators because the real problem is not a gender issue, but the business environment “The focus must be on change of mentality and business environment outside the incubators in order to have more successful women entrepreneurs” (Bulgaria, Ukraine, Kazakhstan, Uzbekistan). Table 7: Business environment for ECA region Institution/ Country 18 National strategies National programs International programs
Institution/ Country Armenia, Business women support center foundation Bulgaria, Business Incubator-Gotse Delchev, Entrepreneurship Promotion Centre Georgia - Georgian Association of Women in Business Kyrgyzstan - Business Incubator of Congress of Women of the Kyrgyz Republic Uzbekistan Business incubator Mubarek Uzbekistan – Business incubator Asaka Kazastan - Republic Council of Women, Kazakhstan Russia – regional center of management and culture Poland, Mi?dzynarodowe Stowarzyszenie Pracowników Instytucji Rynku Pracy w Polsce Turkey, Women incubator Kutahya Romania - Technology and business incubator Centre, Romania (CITAF) Total Average for 12 countries
National strategies 0 3 0 0 0 2 0 5 0.41
National programs 0 3 0 0 0 2 2 7 0.58
International programs 1 3 2 4 0 1 11 0.91
2.2.5 MENA region Table 8: Business environment for MENA region Country Tunisia - El Gazala Technopark Palestine - Palestinian Businesswomen’s Association; ASALA Bahrain Business Incubator Center Morocco, AFEM Total Average National strategies 4 0 4 2 10 2.5 National programs 4 0 3.5 4 15.5 2.9 International programs 4 1 0 3 8 2
Governments are making efforts to support women entrepreneurs through national strategies and programs. The MENA regional scored 2.5 for national strategy and 2.9 for national pro19
gram. Governments provide more support than international programs. These national programs and strategies score put the region at the highest rank compared to other regions. Table 9: Summary of business environment Regions Africa Asia ECA MENA LAC Average National strategies 2.29 2.3 0.41 2.5 2.33 2.45 National programs 1,86 2.7 0.58 2.9 2.67 2.21 International programs 2.21 1.6 0.91 2 1.67 2.09
Overall, the findings show that the national strategies and programs for women entrepreneurs are more developed in MENA and Asia followed by the LAC region and less developed for the ECA region. International programs for women entrepreneurs are more developed in Africa. The women business environment in ECA region could be explained by the equal opportunity policy, which does not allow any positive discrimination toward any sex. However, there are favorable laws and some national strategies for supporting women entrepreneurs in ECA region to create proper business environment for sustainable women entrepreneurs.
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Chapter 3: Targeted sectors and business support services 3.1. Targeted clients
The participating institutions were asked to identify their main clients or the targeted groups through a defined list of sectors (see table 10). Most incubators targeted women and youth. In Asia all business incubators had a focus on women in different economic sectors. Overall, the study shows that incubators have a strong interest first in agriculture (13%), followed by in high growth sectors (12%) and technology based startups (10%). Life science is the least important (6%). The other sectors include research and development, industries and services (6%). Table 10: Target groups by Region Target Groups / Clients High Growth Startups lifestyle businesses unemployed people Women-owned businesses/women entrepreneurs young people Technology-based start-up Agricultural producers Other (Please specify) Total 1.1.1. 13 10 8 2 4 Africa 8 2 2 Asia 1 5 4 6 ECA 3 LAC 3 0 0 MENA 3 2 2 14 37 24% Total 18 9 Ratio 12% 6% 9%
12 5 8 7 57 Africa region
7 1 3
7 4 5 3
4 3 2
3 2 2
33 15 20 10
21% 10% 13% 6% 100%
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36
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In the region, very few women entrepreneurs choose the technology sector. The responses show a concentration on agriculture and other high growth sectors (14%) against 9% for technology start ups. Institutions surveyed pay a special attention to women (23%) and youth (21%). Women are mainly in sectors which are strongly correlated to the social division of labor. According to the German Technical Cooperation (GTZ) representative in Senegal, there is a lack of innovative ideas and creativity among women entrepreneurs who have a tendency to imitate 21
other women; they often chose activities that reflect their role in the Senegalese society. She said “They are confined in the “four C”: Couture (Sewing), Coiffure (hairdressing), Commerce (Small Trade) and Cuisine” (Interview, Senegal, GTZ PEJU). In Nigeria, women clients of the 21 business incubators are on the following sectors: honey production, bread making, industrial starch, gum, etc, yoghurt making, water, hair creams, zobo drinks for diabetics, etc (Interview ETCA Business incubator Manager, Nigeria). In Fantasum Business incubator, women are in agriculture production. Women are not in other sectors because of lack of information and networks they base their businesses on their personal experience, life style and knowledge. This situation limits the probabilities to discover new opportunities to grow as efficient entrepreneurs (Africa report). 1.1.2. Asia
In Asia, institutions surveyed are all women business incubators. The responses show that women entrepreneurs have more interest in life style business (16%) followed by agriculture (10%). It also shows a little interest in high growth (3%) and start up technology business (3%). 3.1.3. ECA Region
Business incubators have interest in women as a target group (average 46%); however countries differ: e.g. Russian targets 25% of women while Turkey targets 100%. Countries in the ECA region pay attention to youth (average 26%) and provide opportunity for agricultural producers (14%) and technology startups (11%). Incubators in this region work with unemployed people (17%) as well. 3.1.4. LAC region
The activities are more focused on youth than women, 29% and 14% respectively. Business incubators target mainly the high growth and technology based start up sectors. Incubators surveyed are not interested in unemployed (0%) and lifestyle business (0%). Agriculture is less important that the technology and high growth (14%). 3.1.5. MENA
Women are an important group targeted (22%) and youth (17%). Life style, agriculture and technology start up are at the same level of interest (11%) of business incubators surveyed. 3.2. Services offered Participants were asked the kinds of services their institutions offer to entrepreneurs and the percentage dedicated to women. Consultancy and information are the services the most offered, followed by training and premises to business incubation. Very few offer micro finance services.
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Table 12: Services offered Services Premises for business incubation Information Consultancy Training ICT access and hosting Strategy and project development Technology transfer and commercialization Micro-financing Access to funders Other* Total Africa 7 13 14 7 10 6 7 6 8 4 Asia 10 10 9 10 10 7 7 7 8 7 ECA 8 10 10 10 6 1 1 2 4 2 LAC 2 4 4 4 1 3 2 0 2 MENA Total 4 4 4 3 3 2 2 4 0 0 31 41 41 30 30 19 19 22 13 13 269 Ratio 11% 15% 15% 12% 11% 7% 7% 7% 8% 5% 100%
*ECA: other includes trade fairs and exhibitions; market research and database of funding organizations 3.2.1. Africa
The five countries with business incubators, Tanzania, Nigeria, Senegal, Angola, and South Africa, offer the following services: premises to business incubation, ICT access and hosting, information, consultancy, and training. ? Premises to incubation: South Africa, Senegal, and Angola offered services such as offices, meeting rooms, ICT infrastructure, while in Nigeria is focused on services related to the access to the local market and micro-finance. Tanzania offers training and a virtual space. Consultancy: All incubators offer the consultancy services (Nigeria 100%, Tanzania 30% for women). This service is mostly for start up business planning and business development (marketing, management and financing). The same model is used in the four countries. Training: Training is a service offered by all participating institutions to their clients. In Nigeria and Senegal the training is mostly focused on workshops on business and enterprises development, while in South Africa, the training workshops are focused on idea generation for technology businesses. In other agencies, training is focused on enterprises management and vocational training.
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?
Overall, the non incubation programs do not offer access to ICT and put forward training in management and business development for women entrepreneurs. The Germany Technical Cooperation in Senegal has implemented a model to support entrepreneurs (male and female) by creating a body of ” local enterprise advisers” who are trained to assist entrepreneurs 23
through regular training and advising. The program is gender sensitive and encourages women to consider nontraditional sectors such mechanics and car repair shops. A grant was given to the Union des femmes Chef d’Entreprise (UFCE) to better support the women entrepreneurs members of the organization. 3.2.2. Asia
Out of 10 women business incubators, 6 incubators have their own premises for rental to client companies. One incubator in Malaysia however does have its own office, but very limited space to be rented out. This incubator operates on a “virtual” mode for its client companies. However, the incubator is in the process of establishing its own incubator space, a women business incubator within a technology park, in the capital city. All women incubators in South Korea provide almost full range of services: Rental space for business incubation, information on business contacts, markets, financing, legal, etc; consultancy on business plan, management, finance; training, workshops, seminars, etc.; ICT access and hosting; strategy and project development, technology transfer and commercialization, micro financing and access to funders. 3.2.3. ECA
Premises to business incubation: 80% of surveyed institution offer premises to business incubation for women: Turkey 100%, Kyrgyzstan 95%, Bulgaria 50%, Uzbekistan 40%, Romania 26%, Russia 5% and Georgia 5% as an association but the Gori Women Business Incubator provides 100% Training: Training is a service offered by all participating institutions to their clients. The business incubator in Bulgaria is licensed and provides vocational trainings on finance and accounting, management, tourism, fashion design and production, ICT skills; English, start your own business (1,833 people were trained for new professional qualification or improving qualification for unemployed people and human resources in SMEs, 85% of them are women). Tambov Incubator in Russia offers vocational trainings on management, accounting, business, marketing, network system administration and women represent 35% of trainees. Georgia offer training in personnel management, courses for cooks and confectioners, waiters tailoring/sewing, beauty therapy, hairdressers, massage therapist for 40% women. The training is mostly focused on workshops on business enterprises start-up and development, marketing and management. Business plans classes are offered to women in Turkey and Armenia 100%, Kyrgyzstan 95% and Uzbekistan. In Romania, the training workshops are focused on idea generation for technology businesses. Bulgaria provides workshops on partnership development, including public private partnership, project and strategy development; eco-tourism development 65% women, and seminars on re24
newable energy, regional development, good practices, Bulgarian and EU financing and developing programs, innovations in rural areas and EU funding programs – 75% women and Romania – EU funding and technology transfer, ICT, and applied research. ICT access: 60% of the respondents offer the services in ICT access and hosting, 100% in information and consultancy. The consultancy service is mostly in start up business planning and business development (marketing, management and financing). 30% offer micro-financing services: Armenia, Bulgaria and Kyrgyzstan. 3.2.4. LAC
Institutions surveyed offer consultancy services, information and training. University incubator offer mainly training in entrepreneurship innovation. Some offer ICT access and the space, pre and post incubation. 3.2.5. MENA
All institutions surveyed provide services in premises for business incubation information and consultancy.75% offer training services and 50 % micro finances services. Some institutions participating in the survey are not incubators and therefore – logically – do not provide the set of incubator services. This situation shows the need of women in these regions.
25
Chapter 4: women entrepreneurs constraints This chapter identifies the main obstacles, problems to be solved, challenges women entrepreneurs face and consequently the needs to meet. 4.1. Main obstacles Participants of the survey were asked to identify the three most important obstacles and explain the signification of the obstacle in practice. Below are the different categories from which they selected the 3 most important constraints. 1. 2. 3. 4. 5. 6. 7. 8. 9. Common local perception that women should not run their own businesses. Lack of information Lack of knowledge Lack of experience Lack of appropriate premises Lack of confidence Absence of a supportive network Lack of Financing Other
4.1.1 Africa The main constraints for Africa are a lack of financing (86%), followed by the lack of information (64%), and the lack of supportive network (50%). Some participants mentioned the lack of self confidence. In addition, there are not enough women entrepreneurs as role models in the different country. Lack of information: According to the president of the Union de Femmes Chefs d’entreprises of Senegal (Association of women enterprise owners) “Very few women have access to computers to do research on the Internet to look for partners, markets, technical innovation etc. Women entrepreneurs lack supportive networks: “There is no network to support business creation, mentoring etc. (Interview President, Union de Femmes Chefs d’entreprises Senegal). Lack of self confidence: African women lack self confidence to conduct their business due to cultural beliefs that business is men sphere. Cultural and social barriers have a negative impact women’s ability to effectively develop creativity and entrepreneurship skills. «African Women develop an inferiority complex concerning some professions and activities. The lack of self confidence prevents them from entering the field of business; in addition, because of the domination of men in business, women have the feeling that the job [business] will not be easy for them” (Interview participant Guinea). 26
« Women fear to fail, they are not self confident and think that if they fail, they will expose themselves to the public derision, they prefer not entering the business world » (Interview, Ministry in charge of women entrepreneurship Senegal). “There is a general local perception that women should not lead their business” (Interview participant Niger). 4.1.2. Asia In Asia, the lack of finance is the problems of all respondents (100%), followed by the lack of supportive networks (50%). The lack of confidence is not an issue for women business incubators in Asia findings. However, 40% of respondents highlighted the common local perception that women should not run their own businesses, the lack of information and experience as important constraints for women entrepreneurs. 4.1.1. ECA In ECA, financing and the lack of experience appear as the most important constraints to women entrepreneurs: 75% of respondents said that finance was among the most important constraints. 67% mentioned the lack of knowledge followed by the lack of self confidence (50%) 4.1.1. LAC The lack of experience and the lack of confidence are the main obstacle in this region, although participants did not answered questions. It is difficult to draw conclusion from the responses. In Dominican Republic, the resistance from spouse in poor and rural areas was mentioned among the most important constraints. One respondent draws a parallel between the self confidence of women entrepreneurs and their social status. She argues that women from poor background are not confident enough besides their preparation to develop entrepreneurial ventures, while women entrepreneurs from wealthy families could be found in a mostly male-dominated network. Their families often protect them guarantee their place in influential networks. (From Questionnaire Dominican Republic). Participants highlighted the absence of a supportive network: “there are several networks … but they do not have focused programs that reach a critical mass to eventually develop entrepreneurial ventures… in my personal opinion most o these networks are very elitists” (Questionnaire Dominican Republic). 4.1.1. MENA The lack of experience scored 75% of the responses and the limited access to finances 50%. The respondent from Palestine argues that the saturation of local market, the lack of access to regional or international markets and the overall stifling political and economical situation are among the main obstacles. According to the coordinator, the main obstacles are:
27
? ? ? ? ?
The rules, habits, and traditions that keep women “at home” as wife and mothers rather than seeing them as equal partners in social and economic life The discrepancies between the declared policies (equality) and reality in the daily life The lack or lesser access to networks because of the social status of women and Islamic practices and Arab culture. The difficulties in raising equity capital and borrowing from formal institutions. The choice of the sectors: women businesses tend to be more in service sectors, while formal financing is more available for manufacturing and goods. Women entrepreneurs often start on the micro-enterprise level and operate below the micro-finance ceiling. Many women businesses do not grow to become small businesses, much less mid-sized or larger firms. In a number of developing countries, women-owned micro-enterprises are not able to graduate beyond the micro-finance level due to a “missing middle” of financing options
?
4.2. Main problems to be resolved Participants of the survey were asked to check 3 the most important problems and explain, if possible, suggest solution to the problems. Below is the list of categories 1. 2. 3. 4. 5. 6. 7. 8. Legal reforms Development of specific programs for WE support Establishment of business supporting organizations Capacity building and improving of Human resources Direct financial support Women role models Establishment of women’s networks Other
4.2.1. Africa In Africa, participants highlighted the main problems to be resolved: direct financial support, the capacity building and the improvement of human resources (71% of responses), women role models (57%). 36% of participants identified the establishment of women’s network among the main problems. 4.2.2. Asia In Asia, the main problems are the development of specific programs for women entrepreneurs and the direct financial support (70% of respondents). A quote from one of the incubator managers summarizes the importance of specific programs to support women entrepreneurship. 28
“If the entrepreneur is convinced that there is support in marketing her products, then she will have confidence to start a business (Interview India – Periyar, Asia). Although there are women business incubators in Asia, respondents said that the establishment of women network is an important need. 4.2.3. ECA The main problem for the ECA region is the direct financing support (90%) followed by the development of specific programs for women entrepreneurs (80%), and capacity building and improving human resources (50%). The regional coordinator mentioned the important issue of the legal reform for Armenia, Georgia, Kyrgyzstan, and Turkey. The representative from Georgia mentioned the war conflict between Russia and Georgia as a serious problem for women entrepreneurs. 4.2.4. LAC In LAC, the main problem is the establishment of business support organizations; no organization mentioned the legal reforms as an issue for women entrepreneurs. The regional coordinator mentioned the lack of knowledge about the need and access to networks, specifically women's business networks or trade unions. In addition the lack of confidence of investors / donors regarding the support for small businesses directly or through incubators was mentioned. Furthermore, there is a lack of knowledge about the potential of dissemination of success stories that can serve as motivation and promote role models (LAC regional report). 4.2.5. MENA The main problem in MENA is the development of specific programs for women entrepreneurs’ support (100% of respondents). According to the regional coordinator, MENA is a region where successful business depends heavily on networks. Because of traditional and social issues, women have less access to such networks. Women without family connections are unlikely even to meet people with whom they can form business and professional relationships for fund raising or information networking (MENA regional report, p.9).
4.3. Main challenges Participants were asked to choose the main challenges from the list below: ? ? ? ? ? Ensure governmental support for women entrepreneurs (WE) Ensure International support for WE Finding local champions to develop and manage appropriate programs Sharing of knowledge via a network of experts Other 29
4.3.1. Africa The challenges are identical for all institutions involved: ? ? ? ? Sharing of knowledge via a network of experts: 86% of respondents Ensure International support for WE: 79% of respondents Finding local champions to develop and manage appropriate programs: 79% of respondents Ensure governmental support for WE: 57% of respondents
4.3.2. Asia The three main challenges to be faced by proponents of women entrepreneurship in Asian region are: ? ? ? Ensuring Governmental Support for Women Entrepreneurship (50%) Ensure International support for women entrepreneurship (50%). Finding local champions to develop and manage appropriate programs (40%).
4.3.3. ECA Main challenges are identical for all institution involved: ? ? ? ? To share knowledge through a network of experts (60% ) And to ensure international support (50%) To find local champions to develop and manage appropriate programs (50%) To ensure governmental support for women entrepreneurs (40%)
In addition, many women enter business to escape poverty but they do not have skills to develop business. 4.3.4. LAC ? ? ? ? Ensure governmental support for WE: No responses Ensure International support for WE: No responses Finding local champions to develop and manage appropriate program: 50% Sharing of knowledge via a network of experts: 25%
4.3.5. MENA ? ? ? ? Ensure governmental support for WE: 50% of respondents Ensure International support for WE: 100% of respondents Finding local champions to develop and manage appropriate programs: 50% of respondents Sharing of knowledge via a network of experts: 50% of respondents.
Overall, sharing knowledge via a network of expert is the main challenge for Africa and ECA regions while Asia and MENA found that ensuring government and international support are the most challenging issues. 30
4.4. Needs to meet Participants were asked to choose the main needs of their institutions and clients they serve within the categories below: ? ? ? ? ? ? ? Ideas/contacts and experience exchange Expertise in some domain Training in . . . Networking with . . . Knowledge transfer Fundraising for Other
In Africa, training and fundraising needs are expressed by all participants. In addition, women entrepreneurs or support institution requested expertise in incubation sustainability, vocational training (to bring high quality products to the global market) and knowledge transfer for both clients and the organization. In Asia, the main need of the women entrepreneurs is funding mechanism specifically to support women entrepreneurship (60%). This could be in the form of micro-financing, soft loans, or grants. Other responses were not significant. All institutions in ECA expressed the need for Ideas/contacts and experience exchange (100%), followed by fund raising and knowledge transfer. Some instructions are more specific and need to build alliances, expertise in business planning, training in international business and business angel. One expressed the need for incubation knowledge transfer. LAC expressed the need to exchange experience by participating to regional and international events and to promote business contact for their clients. One institution expressed the need for business incubator management training and to network with other incubators. In MENA, participants expressed the need for business contact, networking particularly with other business incubators and fundraising.
31
Chapter 5: Good practices, effective business incubation models and components, and tools for women business incubators The purpose of this chapter is to summarize and discuss the availability of good practices, business incubation models and tools for women business incubators which were gathered and collected during of the Project. These documents shall be shared with interested parties and stakeholders so as to improve the general state of business incubation in respective countries, as well as improve the services provided by individual incubators: ? Good business incubation practices (women specific and general practices) ? Effective Business Incubation Models and Components ? Tools to be shared
5.1 Good business incubation practices In the Project questionnaire, the participants and respondents to the questionnaire were requested to share good practices. The Regional Coordinators were able to gather twenty (20) good practices. Most of the good practices and tools did not have women specific characteristics. As women businesses in general have to operate in the same environment as any business it is not surprising that the same tools for business incubation are needed. However, the project identified a number of women specific needs and respective adaptations. Table13: Summary of Good Business Incubation Practices
No.
Good business incubation practices Promoting Business Incubation as a Family business (India)
Remarks
1.
One of the most important key success factors of to facilitate women entry Womeninto business (in India) is to promote her venture as a “family business”. specific The family is taken through the journey together, and the business venture practice(s) is projected as a “family-activity” 1 . Close Relationship Between CEO of Incubator and Women Entrepreneurs (India)
2.
WomenAnother practice by an incubator in India is to “know” all the women who are specific involved in their programs. This involves the CEO (a woman) having very practice(s) close relationship and knowing the women entrepreneurs on “one-to-one” basis1. In addition, this women incubator uses its connection to a previously “wom32
No.
Good business incubation practices en-only” college, to add comfort to the women entrepreneurs and their immediate families1.
Remarks
3.
Specific Program(s) to Attract New Women Entrepreneurs (India) One incubator thought that it best to specifically target women graduates Womenas potential entrepreneurs. Through experience, they have found out that specific generalized programs (advertisements in newspapers to recruit women) DO practice(s) NOT WORK. Response to an attempt to obtain women participants for Business Development Program in a national daily newspaper was LOW 1. The current, good practice is to specifically promote programs to small group of women graduates, and convince them that the incubator will assist in going up another level in business. This has encouraged many women to enroll for training programs. This approach has worked well. In the recent initiative by the incubator, thirty (30) women were recruited for the Business Skills Development Program, with twenty (20) more undergoing next Entrepreneur Development Program. Seven (7) women have submitted proposals for financing. Project ranges from engineering industry, to herbal products, to development of portable kitchen gadgets. Promoting Incubators as Learning Centre for Women with Low Level of Education (Senegal):
4.
WomenA women business incubator (funded by infoDev) helped women entrepre- specific neurs to learn about principles of business management: they learnt man- practice(s) agement, accounting, and computer literacy, which helped them bridge the digital gap. Through spreadsheet software, they were able to do their accounting, and have a daily log, both of which have facilitated calculations of costs and profits. Incubation Centres as “Learning Centres” have stimulated the desire to learn more and be in contact with the international markets. The women entrepreneurs were keen to learn French and English in order to expand their business overseas. In short, Globalization and international markets have a meaning for them2. Development of Women Entrepreneurship and Self-Employment (Russia)
5.
WomenThis good practice is to form” integrated inter-ethnic relations” at the social, specific cultural and economic levels. This is accomplished through the involvement practice(s) of young women in the revival of folk crafts, forgotten traditions, and the 33
No.
Good business incubation practices creation of modern forms. [In total, 764 women (80% from the total number of participants) from 8 towns and 30 rural settlements of the Tambov region were involved in the project3 ]. Establishment of Women Mentoring Pool (India)
Remarks
6.
A Mentoring Pool can be established in order to help fledging women entre- Womenpreneurs consult more experienced and successful mentors, as demon- specific strated by an incubator in India. The mentors will advise the mentees on practice(s) how to face problems, challenges and difficulties. The mentors too can assist in the establishment of support systems, and sharing of information on management-know how. A “Common” Mentoring Pool, that is accessible to all incubator clients companies, should be more cost effective1. Hosting of Women Entrepreneurs Through MBA Programs (India)
7.
One incubator believes that a good way to excite the innovative mind of Womenwomen entrepreneurs is through providing knowledge to future business specific leaders. Hence, the incubator hosted a Women Entrepreneurs MBA pro- practice(s) gram1. Database for Women Entrepreneurs (Senegal)
8.
One major step towards assisting women entrepreneurs is to have a data- Womenbase about them. The Government of Senegal was involved in creating a specific database for women entrepreneurs. Since 2007, the government allocates practice(s). a budget of about USD 10,000 to finance a database on women entrepreneurs in Senegal2. Use of Internet (Senegal)
9.
Women business incubation in Senegal was successful in increasing Womenawareness on the opportunities the Internet could offer. All tenant company specific owners, whose highest level of education is 10th grade, and who have never practice(s) had contact with computers, were trained to use software to present their products on the internet2. Provision of Women-related Vocational Training (Georgia)
10.
An incubator in Georgia (Gori Business Incubator) designed a program to provide quality demand-driven, women realted vocational training courses to internally displaced women free of charge. These courses include sub- Women34
No.
Good business incubation practices
Remarks
jects on hospitality business such cleaning, tourism, health, food catering, specific practice(s) etc. The incubator, Gori Business Incubator for IDP Women, is expected to become a sustainable institution to incubate and provide hands-on assistance to five (5) micro enterprises involving one (1) food catering company, a laundry and dry cleaning shop, a tailor, a beauty salon, and an IT training consultant. The incubate companies are expected to leave the program financially viable and free-standing, and shall continue their businesses outside the incubator upon completion of the incubation period. The incubator offers subsidized rental space too to the women entrepreneurs to start their own micro businesses. This program is supported by Georgian Association Women in Business, in partnership with USAID'/ SME Support Project3. Dissemination of Elaborated Knowledge and Methods 11. Several interesting projects (for women) implemented in Poland involve col- Womenlaborative programs with partnership countries3. These program include: specific ? Dissemination of elaborated knowledge and methods within target practice(s) groups and areas in partnership countries, ? Activisation of women being disadvantaged on labour market, through vocational training and self-employment. ? Development of entrepreneurship among women from rural and urban areas. ? Creation of new alternative workplaces for agriculture ? Training of qualified personnel for SME sector in the partnership countries. Implementation of Training and Support Services Program (Romania) 12. An incubator in Romania (CITAf) implemented a training and support ser- Womenvices specifically for unemployed women to start-up small businesses. The specific project was fund by local Agency for Employment. Training program, Guid- practice(s) ance and Market Insertion of Women (FEMM-IN). Under the project, 20 women started-up a small business3. Increasing export potential through international exhibition (Armenia) 13. The Business Women Support Center Foundation organizes international General fairs and encourages Armenian women entrepreneurs to participate in 35
No.
Good business incubation practices these international exhibitions in sectors such as textile, education, tourism and handicrafts3. Advocating business incubation to attract involvement of central government and Donor Organizations (Senegal) One incubator in Senegal was able to leverage its partnership with InfoDev, to attract central government involvement. The positive impact of the partnership has led to the government to sign memorandum of understanding (MOU) with the incubator. Under the MOU, The Government (through Ministry of Women Affairs, Ministry of Scientific Research) donated ICT equipment, offered free training in marketing and networking, and attracted other development and donor agencies, such as the Belgium cooperation (Senegal). The project has a positive impact on women entrepreneurs2 Combining limited resources to provide better services (Bulgaria)
Remarks
14.
General
15.
Combining or pooling of limited resources is another potential avenue to provide better services3. An incubator in Bulgaria (Gotse Delchev) offered the following programs and services through collaboration with national and international partnership: ? ? ? ? ? ? ? Premises and micro-financing through National JOBS Project. Trainings on management and marketing from EU. Pre-accession funds and Quality Control training. Study visits by British GOF project and INTERREG. Development of informal cluster in eco and rural tourism and partnership. Business Incubator without wall (for 60 Muslim craftswomen). Supporting scheme involving (33) unemployed women to start their own businesses in partnership with national financial programs.
General
16.
General (not necessarilyIn Nigeria, incubators are some time indirectly used to secure loans. The women roles of the incubator are to provide pre-loan assessment, training in basic specific book keeping, business development, risk assessment and team working. practice). The incubator provides financing, information through commodity price intelligence, loan recovery and post loan assessment. Incubator as a credible organization to obtain loans from financial institutions (Nigeria) 36
No.
Good business incubation practices Appearance on national TV talk show arranged by incubator
Remarks
17.
One incubator assisted a woman-owned incubate company in negotiating partnership with national television network for one hour talk show on Fridays about their business activities1. Such publicity is important to publicize members’ products to the masses. Avoiding political connection
General
18.
A women incubator has made a policy of not being connected to any political party. As such, the incubator is able to operate without difficulty even General though there were several changes in state and local governments1. Use of peace corps and students
19.
Use of volunteers from Peace Corps and students to train women entrepre- General neurs reduce the training and coaching costs2. Training workshops provide opportunities for international partner- General ship and networking (not necessarilyTraining and workshops sessions provide opportunity to strengthen or build women networks and partnership. Through these session cross-border and interna- specific tional partnership were established in Bulgaria, Poland, and Romania3. practice).
20.
1
A. Mohd Saffar, (2009), Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Asia region report, www.iDISC.net
2
M. Gassama- Mbaye, (2009) Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Africa region report, p.9; www.iDISC.net R. Djambazova, (2009), Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Eastern Europe and Central Asia regions report, www.iDISC.net
3
5.2 Effective business incubation models and components Respondents were also requested to share projects and programs which could constitute effective business incubation models and components. In this context, good practices and incubation models are “differentiated” by the investment required to integrate them into an existing or a new incubator. Good practices require less investment, and can easily be adopted by the incubator without requiring extensive involvement of outside parties. Models and components, in this context, require much investment and may need external or foreign parties’ assistance. 37
The Project was able to gather eleven (11) possible effective business incubation models and components or elements of a good business incubator. The possible effective models and components, as suggested by the participants/respondents in the questionnaire can be grouped into 4 main categories: The models which improves the Business Development Services (BDS): provision of information, consultancy, and various non financial services (All regions) The models which provides micro loans to women entrepreneurs, along with non financial support (ECA and Africa) Models which improves the women entrepreneurs environment: kindergarten, virtual incubators to enable women to work from home, industrial parks dedicated for women entrepreneurs Models which involve the central, local governments and international partners (see details table below). Table 14: Summary of Business incubation models and components
-
No.
Business incubation models and components Provision of information, consultancy and various services
1.
Women incubators providing their clients and entrepreneurs with information, consultancy, variety of trainings, and access to market, was found to be an effective model in the ECA countries3. Provision of micro financing
2.
Microfinance, which is supported with training, mentoring and market intelligence, was found to be effective in Armenia, Bulgaria, Kyrgyzstan and Nigeria. In Bulgaria, Business Incubators ran micro-financing fund (leasing scheme for equipment) provided by the BG Government through UNDP3. Rural and eco-tourism development involving women
3.
Bulgaria, Poland, Kyrgyzstan, and Romania, have involved/engaged women entrepreneurs in rural and eco-tourism and agriculture development projects3. Craft and handicraft skills for business opportunity
4.
Several projects in Bulgaria, Poland, Russia, Kyrgyzstan, Turkey, use crafts-skill traditions and culture, to create business opportunity for women. These projects are targeted in particular to distant and rural areas3. 38
No.
Business incubation models and components Partnership with central and local governments
5.
Such partnership with central and local government can be found in Bulgaria, Kyrgyzstan, and Russia3. Improved services through international partnership
6.
Incubators in Bulgaria, Georgia, Poland, and Romania have used external and international expertise to improve services provided to client companies 3. Creation of enterprise advisers (Senegal)
7.
This model involves creation of a corpus of “enterprise advisers” who are trained through the project German GTZ/PEJU Project to assist entrepreneurs through regular training and advising2. Integrating kindergarten in incubator
8.
A Women Incubator in Europe (”Weiberwirtschaft”) has integrated a Kindergarten to give the client women entrepreneurs more time for developing their business. Meanwhile this Kindergarten has become a “business” itself. Demand from neighboring families for this service has outgrown capacity by far. Business incubator for university graduates (Tanzania)
9.
This model involves incubating graduating (women) students for a certain period, giving them trainings, business advice, and then allowing them to put into practice what they learned. After some time, the promoter of the program visits them to see how they are implementing what they have learned2. Virtual incubators enable control over personal and professional life
10.
Virtual incubators can assist professional women entrepreneurs to balance family and professional life by enabling them to work from home. This incubator (called eHomemakers or SOHO Incubator in Malaysia) is actually a “virtual” incubator with more than 17,000 members. Most of its members are women professionals who have good university-level education. A significant portion of their members too are women professionals that have succeeded in the corporate world. However, due to family commitment, they chose to quit the corporate world
39
No.
Business incubation models and components and work in their own small-businesses from home1. This virtual incubator has (only) a small administrative office, with members “teleworking” from their own homes7. This Virtual Incubator was established in 1998. Industrial estate for women entrepreneurs
11.
An association in India has established an industrial estate to assist women entrepreneurs. The Association for Lady Entrepreneurs of Andhra Pradesh (ALEAP) was established as an Industrial Estate for Women ALEAP in 1993. It was the first women Industrial estate formed under a Public-Private Partnership (PPP) model with support from Government of India. (There is a women incubator within this industrial estate). This partnership has enable women from grass root level to set up industries using Government of India schemes, like the Credit Guarantee Fund Schemes. The training was offered to enable members sustain their business activities in the long run. ALEAP can also assist their clients in obtaining credit for through ALEAP Credit Guarantee association. This program is part of an integrated approach to promote of women entrepreneurship. This effort had resulted in economic development of women in the region1.
A. Mohd Saffar, (2009). Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Asia region report, www.iDISC.net
2
M. Gassama- Mbaye, (2009) Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Africa region report, p.9; www.iDISC.net R. Djambazova. (2009) Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Eastern Europe and Central Asia regions report, www.iDISC.net
3
40
5.3 Tools to be shared Tools to be shared refer to the following documents which the Regional Coordinators had received from incubator managers and other respondents. ? ? ? ? ? ? Questionnaires, Checklists, Templates, Training materials, Assessment guides, Books and other publications.
Even though the regional coordinators received numerous tools, only four (4) documents in English) are available for sharing and distribution. There is no tool specific to women business incubation in the five different InfoDev regions Table 15: Tools to be shared No 1. Tools to be shared Self-Assessment (Test) on Women’s Readiness to become Entrepreneurs8. A women incubator (Malaysia) insists that new clients or members who want to join their program must first read some books and manuals published by the incubator (even though their new members tend to be women professionals with university-level qualification). After reading the books, the women are asked to perform a self-assessment using some tests made available in the incubator’s training manual. It is important that the women evaluate themselves, and be exposed to the expected difficulties and challenges first, before they actually embark on their own journey (how to start and run a business). Business Incubation Training Materials (tailored to clients’ needs in Senegal) in French Language9. This material could be used for women entrepreneurs with a low level of education: Training material in computer, marketing, management and business planning in French for women entrepreneurs is available (Senegal). Business Incubation Training Materials (tailored to clients’ needs in Bulgaria and Kazakhstan) in Russian Language10. Titled “Develop your business idea and your own business”, these materials are
2.
3.
8
A. Mohd Saffar, President Asian Association of Business Incubation & Regional Coordinator (AABI)) Women Working Group, Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Asia region report, www.iDISC.net 9 M. Gassama- Mbaye, (2009) Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Africa region report, p.9; www.iDISC.net R. Djambazova, Regional coordinator for ECA WBIs, Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Eastern Europe and Central Asia regions report, www.iDISC.net
10
41
No
4.
Tools to be shared drafted according to ILO methodology, in Bulgaria and Kazakhstan). This material could be used for women entrepreneurs with a low level of education. First step is training for trainers. Monitoring and Evaluation of Baseline Questionnaire to Better Meet Clients’ Future Needs. (Senegal and ECA?) The response to the questionnaire will provide baseline information of current state of the incubator. Future surveys can ascertain whether the products and services have improved over the years.
42
Chapter 6: Success stories The primary aim of collecting success stories on women business incubation is to generate knowledge outputs on different ways to use incubation for the women entrepreneurs, and how the entrepreneur has harnessed the opportunities of business incubation. This task is in-line with one of the objectives of the project: to generate knowledge output about women business incubators and to help build capacity of existing women business incubators. Furthermore, it is hoped that the success stories collected will inspire potential stakeholders to take the first steps towards investing in women business incubation. 6.1. Preparation and collection of success stories In order to expedite preparation and collection of success stories, the regional coordinators employed two (2) methods: Feedback from guided-questions and articles from various publications, (business incubations newsletters, bulletins, newspapers, magazines, and write-ups by incubator managers, etc.) 6.2. Feedback from guided-questions In order to collect success stories that will provide a first-hand information and personal touch from the women entrepreneurs, a questionnaire was prepared containing a list of guided questions. This set of questions was based on the guideline InfoDev uses for success stories, published on the IDisc website. It is drafted in such a way that the responses provided by the women entrepreneurs will easily help the reader understand how incubation has helped the entrepreneur in harnessing the opportunities provided for by business incubation. The women entrepreneurs were also encouraged to respond in the questionnaire using the “first-person” language (I/me/my), as a form of personal story-telling to the reader. Table 16: Questionnaire for preparation and collection of success stories
No. 1. 2. 3. 4. 5. 6. 7. 8. 9.
Questions Is this the first company that you have started, and what drove you towards it? How did you finance your start-up operations and how long did it/will it take for the company to become self-sustainable? What are your major products and services and how are they unique in your business sector? What is your competition? How did you first launch your product/services? Who are your clients and how many do you have? How are you focusing on expanding your user community? How do you measure the success of the company? What was the biggest challenge in starting an innovative business in your country and how did you overcome that? How have you benefited from business incubation? (E.g. infrastructure, knowledge development, networking with other businesses/traders, other) With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company, and which you would 43
No. 10. 11.
Questions like to share with fellow entrepreneurs? Do you feel that you had the necessary advisory and support network when you started your company? What is your message to supporters (financial or otherwise) and what is your message to the users of your product?
During the project eleven (11) stories were collected using the questionnaire. The companies (or women entrepreneurs) that responded to the questionnaire are shown in Table 17 below. Table 17: Companies and entrepreneurs providing responses to questionnaire Company/Entrepreneur PV Inova Cetratec Alfa, Shengmiluo Tianjin Khatoun Eatcetra Nig AmyDiop Al-Warghan Zuhal Ucaroglu Creative Media Brazil Costa Rica China Syria Nigeria Senegal Syria Turkey Poland Country
6.3. Articles from various publications Publications on business incubation were a good source of success stories on women entrepreneurship. However, since the articles were normally written by a second-person (other than the entrepreneur), there is a lack of “personal-touch” to article, vis-à-vis the reader. The regional coordinators were able to gather 21 articles on success stories. However, only ten (10) are presented in Table 16 below. Table 18: Articles and publications on success stories on women business incubation Company/Entrepreneur Huda Jahani IncubaUnap Change Initiatives Mrs. R. Burulsun Mrs. N Seiitalievna Freshbots 44 Country Bahrain Chile India Kyrgyz Kyrgyz Malaysia
Enhanced Technologies Vietnam Medical Software Mdm Kavitha Anuja Electronics
Morocco Vietnam India India
The five regional coordinators were able to gather a significant number of success stories on the topic of women business incubation. Apart from the responses from willing entrepreneurs, the availability of articles from newsletters, bulletins, newspapers, magazines, case studies, and websites, etc., helped much collecting some stories. however, in the LAC region, sharing success stories was an issue because of culture as mentioned in the beginning of the report. However, regardless of the number of success stories collected, what is important is the effect and impact that these stories will have on the women entrepreneurs. It is hoped that these stories will inspire more women to take the first step towards becoming entrepreneurs. It is also hoped that the success stories collected will inspire potential stakeholders to take the first step towards investing in women business incubation.
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Chapter 7: Conclusions and recommendations by regions 7.1. In Africa Women entrepreneurs in Africa encounter many barriers to grow their business. In addition to the difficult environment in Africa, the lack of training, lack of financing, they face many cultural barriers and unfair laws and regulations, which appear to be “gender neutral”. In Africa region, business incubation concept is not well introduced in enterprise development policies. Nigeria and South Africa are the countries were incubation is integrated into national policies to promote the private sectors. These two countries could be used as a model to promote business incubation throughout Africa. It is recommended: ? ? ? Conducting thorough studies and analyzing laws and regulations with a gender analysis lenses; Including gender issues in all modules of the InfoDev business incubation management training; Promoting advocacy programs for business incubation in general and women business incubation in particular because incubation is not a familiar concept in French speaking countries in West Africa; Strengthen involvement of government in incubation activities to better inform decision makers about the needed policy change; Involving women organizations, banks and micro credit institutions to support business incubation initiatives could help better promote the concept of women business incubation.
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7.2. Asia In many countries, women become entrepreneurs out of necessity due to several reasons: unemployed husbands, poverty, and the desire to be economically independent. As compared to their male counterpart, the “odds against” women in this business world are much higher, as the women have to balance their work life with home life. This Study has certainly attracted participation beyond the immediate stakeholders (namely, InfoDev and the Regional Coordinators), to include various government ministries, government departments, international aid organizations, consultants, national incubator associations, incubator managers, local councilors, etc. Through this study also numerous documents and data were compiled from across Asia. 46
It is recommended introducing specific programs for women entrepreneurs, share information among InfoDev region and compiling success stories, which will be re-written in format and style that would be inspirational to readers, especially new women entrepreneurs.
7.3. ECA – Eastern Europe and Central Asia In ECA region women entrepreneurs face many barriers to establish and develop their business. Formally national legislations provide equal opportunity for male and female entrepreneurs; however the business world is still men dominated in particular in innovation, applied science and technology. Prejudice and cultural obstacles are strong. The business incubation model is quite effective in ECA countries and the variety of types and main objectives of the business incubators provides a good opportunity for ideas and experience exchange and learning. However, business incubation in ECA region is supported mainly by International donor organizations such as InfoDev but not well supported by the Governments which jeopardize the sustainable development. The preferences of the business incubator managers and experts in ECA are to develop and improve women-focused programs, trainings, mentoring, micro-financing in general business incubators rather than establish women business incubators (incubators only for women). One of the main reasons is that the networks of incubators and organizations should work to change the perception of women entrepreneurship step by step in the business environment outside the incubators to make it more favorable for women entrepreneurs. It is a long-term process and could succeed by widely promoting women entrepreneurs’ results and success and enlarging the pool of supporters and alleys appropriate networks and organizations and respected people. IDisc, regional InfoDev networks and the women working group can contribute a lot to that process. It is recommended enlarging and strengthening the network of women focus business incubators and organizations and key person through updating database, exchanging information and ideas and exchanging models, tools and good practices. The regional coordinator recommended motivating women business incubators managers and teams to develop concepts for encouraging high-educated women and women in academia and research to consider an entrepreneurial perspective In addition, it was suggested exploring opportunities for knowledge and technology transfer among women entrepreneurs and developing a global and/or regional mentoring system among women entrepreneurs and organizations. She recommended developing a communication plan for cooperation with media (on national, regional and international level) to promote findings, challenges good practice and positive results of women focus network. She recommended conducting deeper studies and analyzing: Laws and regulations with a gender analysis lenses and including gender issues in the training modules, Effective Governmental and International women entrepreneurship supporting programs and measures 47
as a basis for providing information and support for implementing policies that improved participation of women in economic processes and Effective business supporting models and good practices.
7.4. Latin America and Caribbean -LAC The main obstacle is the lack of public policies that promote female entrepreneurship and ensure support for small business development and the participation of women in the economy. Main problems for female entrepreneurs are: lack of confidence and self esteem, lack of support for family caregivers and the double and triple shifts that women have to perform caring about family, home, and business and limited involvement with / participation in education and training as well as access to financing. In addition to the obstacles faced by entrepreneurs in the SME sector in Latin America, women by their status as women face more difficulties in general (startup) Only few organizations promote women's entrepreneurship and there is insufficient support for the creation of such kind of organizations. It is recommended increasing activities for raising awareness about the potential of women entrepreneurship for economic development and ensuring greater participation of women in support programs, especially business incubation. Community should encourage this participation accompanied by programs of empowerment. The regional coordinator suggested improving the supply of services and facilities offered to women entrepreneurs and provide information and training to existing incubators enabling them to better serve the needs of women entrepreneurs and analyze the current models of community support and extend the range of support for childcare. The support of government-university-private sector linkages, initiatives and cooperation could generate more understanding and confidence and improve services at lowers costs for all parties. The link between incubation projects with local governments, which often have communal or development budget for programs for women can change the vision towards the training of entrepreneurs.
7.5. In Middle East and Northern Africa- MENA By law, in the majority of MENA countries, women have the right to do business. However, the society keeps women in their traditional roles in family as mothers and wives. Women rely on the support of men. Obstacles to women entrepreneurship in many MENA countries include inappropriate educational background, lack of role models, low social status, competing demands on time (family responsibilities) and limited access to finance. 48
It is recommended creating gender-based business incubators to facilitate the start-up of women owned businesses. Women business incubators could be particularly useful in dealing with challenges that women face with regard to mobility, networking and marketing in some MENA countries; Creating women’s business centers can serve as “one-stop shops” near house (or virtual) women business incubators for the young women, graduated from the university. This can serve as family barriers removal and is recommended for women who want to start or grow businesses. Implementing business development services: e.g. Women entrepreneurial trade fairs and trade missions and conducting a careful review and evaluation of the social impact of infrastructure could create a work/family environment that is conducive to men and women. An expansion in services that cater to women’s needs, such as a well-functioning childcare market, and increasingly elderly-care, would allow women, as well as men, to combine work and family responsibilities. These sectors are also growth sectors in many Western countries and can be potentially important sectors for job creation—certainly for women. Labor and investment laws and regulations need to be overhauled and realigned with the region’s new development model so that they create better incentives for job creation in the private sector.
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General conclusion
The study has shown that there is not enough support for women entrepreneurs in the five regions because of cultural barriers and lack of knowledge of gender specific needs. Despite the differences among the regions, the general result of the Work Group activities clearly shows that women have more difficulties than men when starting or developing businesses. The women working group recommends ? ? ? Exploring the opportunity of creating gender-based business incubators to facilitate the start-up of women owned businesses in MENA and Africa. Better involving government in incubation activities to better inform decision makers for a policy change. Enlarging and strengthening the network of women focus business incubators and organizations through updating the database, exchanging information and ideas and exchanging effective business models, tools and good practices. Including gender issues in all modules of the InfoDev business incubation management training and introduce specific training programs for women entrepreneurs Developing a global and/or regional mentoring system among women entrepreneurs and organizations and train female mentors, advisors, trainers for a wider reach of such initiatives Intensifying the cooperation among the 5 InfoDev regional networks effective exchanges approaches, models and encouraging common initiatives (mentoring programs, women business incubator training) Develop a communication plan to disseminate the findings (challenges good practices, etc) Encouraging highly educated women and women in academia and research to be more entrepreneurial oriented. Explore opportunity for knowledge and technology transfer among women entrepreneurs and help establishing platforms for such an exchange Intensifying involvement of women organizations, banks and micro credit institutions to support incubation policy could help better promote the concept of women business incubation. Conducting deeper studies and analyzing: laws and regulations with a gender analysis lenses and including gender issues in the training modules in particular
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? ? ? ?
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Supporting the development of government-university-private sector linkages and cooperation to generate more understanding and confidence and improve services at lowers costs for all parties. Linking incubation projects with local governments, which often have communal or development budget for programs for women but change the vision towards the training of entrepreneurs.
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The effort by all parties and individuals involved in generating new knowledge, experiences, and practices under this project should be continued as a platform for continuously improving cooperation and exchange. The findings of the project should also be published in respectable journals (and books) on entrepreneurship and business incubation to ensure the knowledge is disseminated and shared by promoters and stakeholders, around the globe
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Annexes Annex 1: success stories The presentation of following success stories has been based on the “interview format” guide infoDev is using for preparing presentations on iDISC. However, following examples are not yet complete and need further work. The project team often experienced difficulties with getting the needed information for various reasons, such as ? Lack of understanding of the need to publish such stories for making the effects of incubation (and entrepreneurship at large) understood ? Limited readiness of entrepreneurs to invest the time needed for generating a success story ? Reluctance of entrepreneurs to disclose business data (for all kinds of reasons from cultural barriers to taxation issues). ? Success stories as published now do not directly support the enterprises with regard to their customers. Suggestions: ? To complete edit all stories and put them on iDISC ? To add tools / ways for additional local / national (language) dissemination of the success stories to better reach the environment of the respective enterprises ? Consider publication of a special booklet with women success stories ? Update / upgrade the Women Incubation site on iDISC!
1. Success stories in Africa 1.1. Senegal: Amy Diop, Mina production Description/Question Description of the Company Name of the Company: Mina production Main activity: Sewing and dyeing Employees: 4 employees and 5 apprentices Years in Business: 19 years Description of the Entrepreneurs Names of the owners: Aminata Diop and Astou Coulibaly Positions: Director and General Secretary Ages: 40 and 34 years old Education: high school 12th grade and 9th grade. Is this the first company that you have started, and what drove you towards it? Yes. I realized that we had the potential. We were trained in sewing and dyeing and wanted to be famous in the field of couture and dyeing. We wanted to create more jobs for the community. Dyeing is a traditional activity in the Saint Louis community and we wanted to value the local culture and tradition while creating new African design. "We realized that before the incubation, we operated in the dark, we were making money on a daily basis, but we have never operated as an organized business. Incubation helped us be visible through Internet, for the first time we have a free space on Internet where we are displaying our products." 52
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How did you finance your start-up operations and how long did it take for the company to become self-sustainable? With support from family and friends, we bought a sewing machine and started our activities without a business plan. We started training dropout school girls in sewing and got some money that was reinvested. We used to sell their product to neighbors. Customers liked our products; in addition we were selling the local fabric pants to tourists as well as dyeing and selling table clothes and other home decoration items. What are your plans for self sustainability With support from family and friends, we bought a sewing machine and started our activities without a business plan. We started training dropout school girls in sewing and got some money that was reinvested. We used to sell their product to neighbors. Customers liked our products; in addition we were selling the local fabric pants to tourists as well as dyeing and selling table clothes and other home decoration items. What are your major products and services and how are they unique? What is your competition? The uniqueness of our products comes from design inspired by local culture and use of local fabrics. Our major products include clothes, home decoration, African masks, jewelers, and cultural artifacts, such as dolls, key holders, and so on. Our main competitors are the boutiques located downtown and others sellers in the “Village Artisanal”, and tailors that make-to-measure. China is also a competitor on the international level, as they produce local designs using mass production selling at low prices. How did you first launch the product? We launched our first product by making a direct marketing campaign towards hotels and tourists guides. We got support from family members and friends, for example our sisters and aunts assisted in the production. How do you measure the success of the company? Yearly income has gone from 200 USD in 1989 to 11,212 USD 2007. Furthermore, we have participated in 2 international trade fairs and 10 local trade fairs. Who are your clients and how many do you have? How are you focusing on expanding your user community? Our clients are tourists from western countries who visit Saint Louis, such as France, USA, Spain, Japan, etc. as well as local customers, such as hotels and individuals. We serve about ten hotels, 100 tourists annually, and about 700 local customers annually. We started documenting this when we entered the incubator. Are you planning to patent your product and do you see any obstacles in doing so? In the field of sewing, patenting is not an issue. Competitors tend to copy others' creations and the legal environment is not severe for copying. The main difficulty might be the cost of the patent. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? Access to finance and equipment was and still is still our big issue. The problem is not yet overcome. That is why we are participating to the incubation program. How have you benefited from business incubation? First of all we have benefited through training in management, accounting, marketing, computer software, and the Internet. We realized that before the incubation, we operated in the dark, we were making money on a daily basis, but we have never operated as an organized business. Incubation helped us be visible through Internet, for the first time we have a free space on Internet where we are displaying our products. 53
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Coaching has also been important. The incubator organized weekly coaching sessions, to discuss the issues and difficulties that we faced in managing our business. Finally, access to office space and modern office equipment was also something crucial that the business incubator offers. Now in addition to the workshop, which is the shop, we have an office where we do our administrative and accounting work. Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? The incubator is an eye opener for us. It has helped us understand the principals of business management. We learnt that we cannot operate a business without documentation. Management and accounting courses in addition to the computer training have helped us bridge the gap. None of us learned management and accounting before integrating the incubator, with Microsoft excel, we are able to do our accounting, we have a daily log and the software helps facilitate calculations. Incubation has stimulated the desire to learn more and be in contact with the international market: Astou is learning French to increase her communication skills, and Aminata is learning English online. Incubation has also widened our horizons. Globalization and international markets have a meaning for us. We learn that we can have access to those markets if they know our product and if we learn how to reach those markets. Incubation can really make a difference for the informal sector. We cannot do good business, and have access to funds and equipment if we are not able to document transactions and present a sound business plan. Formal registration will allow doing business with international firms. Do you plan to internationalize your product and if so, how? Yes. So far, we have a free Internet space, where we display our product. NCNW is helping to target the international market. The managing Director participated to the market readiness training Program and presented our products. We got positive feedback that we included in our production process. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? Setting and writing down a business plan should a first step. It helps clarify objectives, strategies and the segment of the market you want to reach. You should also have computer skills. It is an essential tool, if we want to compete in the global and local markets. Having proper management techniques and tools is also very important. Every transaction needs to be documented. Do you feel that you had the necessary advisory and support network when you started your company? Yes. So far, we have a free Internet space, where we display our product. NCNW is helping to target the international market. The managing Director participated to the market readiness training Program and presented our products. We got positive feedback that we included in our production process. What is your message to funders/supporters and what is your message to the users of your product? Our message to funders is that incubation is a powerful tool to help entrepreneurs that don’t have the required skills and they need to create more incubators, especially in developing countries, where access to education is low. To our supporters and users of the products we would like to say that buying from us is valuing the local culture and helping us to develop community pride. 54
1.2 Nigeria: Eatcetera NO DESCRIPTION/QUESTION Description of the Company Name of Company: EATCETERA NIG LTD, Director: Mrs. Yemisi Obe. Registration: For Agro Allied Processing. Founding Year: 2000 in Lagos Nigeria. Number of Employees: 20 Is this the first company that you have started, and what drove you towards it? Yes. My husband, graduates, experts in various fields. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? Personal savings and it took me 2years to become self sustaining. What are your plans for self sustainability? No corresponding response. What are your major products and services and how are they unique? What is your competition? I am into agro allied products, like biscuits, short bread, flour cookies etc competitors are big companies like Cadbury. 5-How did you first launch the product? Direct selling and house to house advert. How do you measure the success of the company? Today, we have distributors in 22 states. Who are your clients and how many do you have? How are you focusing on expanding your user community? My customers are everywhere, children, schools communities’ offices etc. We focused by using agents, distributors in all communities. Are you planning to patent your product and do you see any obstacles in doing so? I have stated the process, just bureaucratic delays. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? Challenge is acceptance of the product, and as a woman I need extra effort. How have you benefited from business incubation? Very immensely, they gave me space, soft loan, trade fairs, exhibitions, marketing awareness and Government protection. Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? Oh yes, firstly I lack information, you know information is power. Also linkages, networking are very important I missed all this before. 55
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Do you plan to internationalize your product and if so, how? First through networking with the African incubation network I can get my product to the market. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? A lot like training and continuous training will give me confidence and exposure. Do you feel that you had the necessary advisory and support network when you started your company? No, but now it is better. What is your message to funders/supporters and what is your message to the users of your product? They will continue to get improve innovative product, and my supporters, we will not disappoint them, we must continue to be innovative.
2. Success stories in Asia 2.1. NO China/tianjin shengmiluo DESCRIPTION/QUESTION Description of the Company Name of the Company: Tianjin Shengmiluo Trade Company Main activity: Crafts and Gifts Employees: 8 employees Years in Business: 5 years Is this the first company that you have started, and what drove you towards it? This is the second company I have started. My first company dealt with indoor decorative clocks and glass jewelry. Because of lack of experience and shortage of funds, I had to give up. In 2006, I went to the Tianjin Women's Business Incubator (TWBI) and the staff there gave me some specific guidance. When I was operating my craft business, I found that traditional Chinese arts and crafts are more and more preferred by people. I planned to work on a business of Chinese clay sculpture souvenirs. I talked about my idea with the head of the Center and the Enterprise Development Department. They gave me strong support. They believed that the clay sculpture handicrafts with national culture would be the favorites of Chinese and foreign tourists, especially during the time of 2008 Beijing Olympic Games. The potential of the market was great. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? When I first started my business, I was self-financed. I received a small enterprise loan (30,000RMB) from Tianjin Women's Federation. I also borrowed some money from my friends. After the training courses in the center, I began to use e-commerce. At present, I have bought the best advertisement position on the Alibaba website and an advertisement in the Sixth China Beijing International Gifts Exhibitors. I expect after 1-1.5 years, my company will be self-sustainable. What are your plans for self sustainability? No corresponding response. What are your major products and services and how are they unique? What is your competition? My business is focused on the chain operation of craft design, production, and sales. I 56
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also sell the local craft products with top brands such as Tianjin clay figurines of Zhang crafts, Yangliujing cultural paintings, Yangliuqing cutouts, and hand-painted pure arts. I also introduce new products according to the demand of market and customers’ needs. I have years of experience in operating crafts, and we also have our own factories and professional partners. Before I started our business, the TWBI led me to visit the Academy of Fine Arts and communicated with the experts to enhance our innovation and creativity on clay design and production. I believe that the quality of the product is the soul of an enterprise. I try my best to be sincere to our customers. I also believe that a professional team of staff is the wealth of enterprises. Good team work lead to success in the competitive market. 5-How did you first launch the product? No corresponding response. How do you measure the success of the company? No corresponding response. Who are your clients and how many do you have? How are you focusing on expanding your user community? My current customers are overseas Chinese, foreign customers, merchants who love Chinese culture and arts, and national crafts enthusiasts. We will also provide gift customization services for different businesses and government agents and departments which have ceremonies, conferences, or festivals. Are you planning to patent your product and do you see any obstacles in doing so? I have no plan to patent our product yet. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? For a small enterprise, financing is the bottleneck for future development. My company received the help of a 30,000 RMB small business loan. How have you benefited from business incubation? The courses offered by TWBI helped me understand the Internet’s function in terms of doing business. Through the Internet, I do my procurement, marketing, and sales. It expands the enterprise's reputation, and saves cost. I have used Alibaba B2B platform’s functions of intellectual members, products bids, and gold showroom advertising. I also reach out for other internet websites such as Taobao, China product platform, Huicong Network, and the Chinese Arts & Crafts network to make my products have the most market share. TWBI also supports me with free e-commerce store on its business web site, Tianjin E-Shopping Mall. No matter what problem I have about financing, operating or management, the TWBI is always there and has helped me to overcome challenges. When the government has new beneficiary policies and regulations, TWBI arranges for its clients to learn and discuss the new content so as to enhance our awareness of various concepts. I really feel at home with TWBI. Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? I was originally a technical worker who had no idea about running business. After my experience over the past several years, I would suggest people who want to s et up their own business make plan first, be good at learning and absorbing the successful experiences of others. I want to tell them do not say give up easily. It will be successful at the end. 57
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Do you plan to internationalize your product and if so, how? Yes, I do. I have thought about doing this by first of all establishing my own brand, and registering the trademark to protect my intellectual property right. Then I want to place emphasis on the cultural significance of my products. I will advertise my products through my existing networks and actively participate in all relevant exhibitions to promote my products to new networks. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? No corresponding response. Do you feel that you had the necessary advisory and support network when you started your company? No corresponding response. What is your message to funders/supporters and what is your message to the users of your product? No corresponding response. 3. Success stories ECA
3.1 Poland: Creativemedia NO DESCRIPTION/QUESTION Description of the Company Name of Company:CreativeMedia . Address of company: Ul. Rubie? 46/C4/8161-612 Pozna? Website: www.creativemedia.com.pl Industry sector: Education and training Year the enterprise was founded: 2005 Number of employees - when enterprise was founded: 1 - and at date of the interview: 6 CreativeMedia aims to collect stories with a personal touch that help the reader understand how incubation has been useful for the entrepreneur, and how the entrepreneur has harnessed the opportunities of incubation. This is a great way to share good practices and tell your story to the world! Incubator: Pozna? Science and Technology Park Adam Mickiewicz University Foundation Director of Pozna? Science and Technology Park Prof Bogdan Marciniec Is this the first company that you have started, and what drove you towards it? This is my first company. I always wanted to be on my own and I wanted to teach people, to guide them. I’m an independent woman. The direct impulse to start running my own business was a competition “Idea for business 2005” proclaimed by Poznan’s Park of Technology. I gained second place and 3 000zl price and an office to rent. That’s how it started. First it was only me, than I begun to employ 1 person. Now it’s two employees and 58
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three trainees. I’m the only owner of the company. There are no shareholders. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? I gained money from the prize. I become independent from the very beginning. Now, the revenue is about 500 000zl per year. What are your plans for self sustainability? No corresponding response. What are your major products and services and how are they unique? What is your competition? We are a (business) training company. Our trainings are based on unique materials and plans. My company also organizes business’ breakfasts, which help other young entrepreneurs develop their business contacts/ contact network. 5-How did you first launch the product? No corresponding response. How do you measure the success of the company? Simple – by the number of happy clients – and there are more and more of them. Who are your clients and how many do you have? How are you focusing on expanding your user community? My clients are mostly big companies but also individual businessman. I have three big clients and a couple of smaller ones. Are you planning to patent your product and do you see any obstacles in doing so? I’m at point of patenting one of my products but it takes too much time – even five years. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? To convince others that it will work out How have you benefited from business incubation? Incubation is very helpful for young entrepreneurs. PPNT offers help/consultations of solicitor, accountant. It also has preferential rent. Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? No corresponding response. Do you plan to internationalize your product and if so, how? For now I don’t plan to enlarge or internationalize my company. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? No corresponding response. Do you feel that you had the necessary advisory and support network when you started your company? I had to learn many things on my own but the PPNT was also very helpful. What is your message to funders/supporters and what is your message to the users of your product? If you want a lot, you can gain even more. 59
3.2 Turkey: Zukal Ucaroglu No DESCRIPTION/QUESTION Description of the Company Entrepreneur Name: Zuhal Uçaro?lu. Start-up turnover: 0 TL (October 2008) Current turnover: 10610 TL (June 2009). Number of employees : 0 (Zuhal Uçaro?lu is working as an owner-manager) Address: K??GEM Tav?anl? Yol? 3. Km Teda? ambar? yan? KÜTAHYA Tel: 90 274 231 17 74 e-mail: [email protected] Is this the first company that you have started, and what drove you towards it? Yes, I am an entrepreneur with the women's business development center which is located at the Kütahya Province, and I am engaged in tile (Çini) art. I have been engaged in this art for nineteen years so far. I first met with this art by my husband, Abdülkadir Uçaro?lu. When we got married, my husband was occupied with a government institution as a finance chief, as well as engaged in çini art at a private firm named ?znik Çini, which was founded by him and his three other friends. My husband occasionally brought his art works to home. I was aware of my inclination towards handicraft and began simple çini paintings secretly at home. After a while this art grow on me as a passion. However, I always been an amateur and have self effaced. Then, ?znik Çini went out of business because shareholders established their own workshops. Then my husband decided to establish a new tile (çini) firm with another friend of his. Because legally my husband could not be a partner in a new firm due to his governmental occupation, he asked from me to be a partner and manager. As a high school graduate I only recognized hospitals and post offices as governmental organizations until that time. Suddenly I met with ministry of finance, the chamber we are connected to, accountant, et cetera. At first I was panicked. My husband told me to not panic because I was only a partner and manager on legal documentation and all I had to do was to sign some official documents. However it did not developed as simple as he suggested. Because he had to work on day time I had to deal with all official work and with running the business. I was suddenly in the middle of the business and began learning it in the art and part. But I did not have a strong background. I owned the business; however I was yet an apprentice in fact. After this point, since me and my spouse got things in their way, my husband decided that we would be better off concentrating on our art and resigned from his job at the government office. However things got worse, after the famous January 24 economic measures taken by the government, many small businesses like us, which owed to creditors in foreign currency, went bankrupt. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? We established our company during the global crisis which began in the USA and Europe, we were operating with a rather slow pace and our firm did not owned much capital. I can say that we were crawling. Recently we rented an additional workshop. We are planning to purchase our own oven. Immediately after this, we are planning to de60
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velop our infrastructure workshop and develop our research and development department. When we were in ?znik Training & Education Foundation, we produced miniature art works for Istanbul Subway, THY (Turkish Air Lines) Sabiha Gökçen Airport, Ashgabat and Tokio Mosques, Ritz Carlton, St. Benoit list, Expo 98 Map of Piri Reis, Expo 2000 Hannover, Pizza Hut, Coca Cola, the Competition Board, World Bank, Industrial Development Bank, The Paris miniature ordered by Mr. President Süleyman Demirel as a gift to France President Mr. J. Chirack. What are your plans for self sustainability? While we were working on above listed projects, we also learned a notion of architecture. Because we had the opportunity to work with architect Hassan M. Hilmi ?enalp, calligrapher Hüseyin Kutlu, frescoer architect Semih ?rte?, interior architects and miniature master nusret Çolpan deceased, and ceramics artist Defne Koz. When my husband retired, we left the Foundation and we opened a new place. Even after leaving the Foundation and we did not have any equipment, we made projects for Ankara Aksa Mosque, The Berlin Fallen Mosque, Canon Jeans Firm’s office design, and some several designs for restaurants at Istanbul and ?znik together with the above mentioned our reference professionals. Once we established our company, we made projects for our municipality’s building for Gülten Day?o?lu Public Library, a courthouse building which is planned to be a museum in the future, a wedding hall, and for the Kent Park, which is built for embellishing our city. We made a proposal to the Hilton Hotel which had been built in our City. Meanwhile, we made proposals to other city municipalities also. Konya and Kayseri municipalities were interested in our proposals. For example, the Kayseri Municipality ordered projects for underpass buildings. We are also working on projects for Mr. Ba?aran Ulusoy’s otel building at Istanbul and a cafe named “Karakol”. What are your major products and services and how are they unique? What is your competition? My first product was a 16th century ?znik style tile plate. Our Firm’s first product was an art work reflecting Seljuk style and involved some several Turkish handicrafts like miniature works and calligraphy. How did you first launch the product? We began with producing CDs and books especially for civic education: Road safety, environment, health. After that we won national and international tenders for developing large programs with World bank etc. that showed our know how in certain fields like specific needs. We established also many partnerships with either Europeans or Canadian companies, so we benefit from a large know how transfer and we began producing many developments for their markets. How do you measure the success of the company? I think success is a relative concept. If success is measured by the job done; I made vases and plates that I cannot remember the quantity of and I dealt with square meters by the architectural work. Else if it is the quality, I am qualified enough. I think the success is creating a style and being preferred in the industry you operate in. I mentioned above that even after leaving the Foundation and we did not have required equipment, we made projects for Ankara Aksa Mosque, Berlin ?ehitleri Mosque, Canon Jeans Firm’s office design, and some several designs for restaurants at Istanbul and ?znik together with the above mentioned our reference professionals. In fact, writing those words is also a success for me. Because, I promised to myself when I joined to the project and listened to a successful business woman in Eski?ehir that I will be like her 61
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and tell my success story in the future. However the way before me is difficult and exhausting. That is why I believe that I have many things to learn already. I set new goals for myself and now it is time to achieve those new goals. Who are your clients and how many do you have? How are you focusing on expanding your user community? My customers are public institutions and artist architects that concentrate on arts on buildings. We participate in art expositions to expand our customer portfolio. Are you planning to patent your product and do you see any obstacles in doing so? Because we do not engage in mass production it is difficult to acquire patent. However, we can acquire brand mark patent or maybe industrial design registration certificate. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? My biggest obstacle was my lack of funding and knowledge. To overcome these obstacles I believed in myself and in my job. I tried to express myself rightly to my supporters and customers. Therefore, I showed maximum effort to complete required training and education. How have you benefited from business incubation? I benefited by rightly expressing my demands and following things the administration have done. Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? We, women would never be on the paper, fake owners of businesses that our fathers and brothers would not be official owners for any possible reason. Because, if this is the case, customers do not take you seriously. That is to say, we either should manage businesses we are alleged to own and train ourselves well. Do you plan to internationalize your product and if so, how? Art is a universal concept. Our industry is closely related to arts. What makes our products international is our efforts for providing different projects regarding design and practice and accounting for every architectural aspects (location, classical and modern lines of the internal architecture) of buildings, accounting for customers’ preferences and expectations, and adding our own style. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? After establishing our firm, I understood the importance of trainings offered about brand marking, computer literacy, foreign trade, and accounting. Now I would run my business in my own terms. Because without above mentioned knowledge, it is impossible to be preferred neither in the domestic market nor in the foreign market. Do you feel that you had the necessary advisory and support network when you started your company? After I applied to Ki?gem (Kütahya Women's Business Development Center), I felt that I can acquire support and consultancy from a network. Because, we had a right communication with a transparent administration. What is your message to funders/supporters and what is your message to the users of your product? We communicate to our customers that we will provide our design considering their special preferences and expectations, and architectural criteria. I communicate to our supporters that the customer satisfaction will yield positive feedback to them also 62
4. Success stories in LAC 4.1 Costa Rica: CETRATEC ALFA No DESCRIPTION/QUESTION Description of the Company Name of the Company: Cetratec Alfa Main activity: development of pharmaceutical formulations chemical analysis and biological, Quality assurance and good practice. Employees: person team of ten people Years in Business: two years Description of the Entrepreneurs(s) Names of the owners
octors Juliana Redondo Positions: Director and Founder Doctors Juanita Blanco and Gabriela Zavaleta owners and founder partners Education: pharmaceutical physicians Is this the first company that you have started, and what drove you towards it? We decided to start the business precisely at the time it wanted to close a corporation that had, Dr. Blanco proposed launching an analytical center since determined that there was a need in the pharmaceutical sector companies engaged in the studies that we did. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? Dr. Redondo round saw an ad in the paper on the national entrepreneurs, decided to participate two days for failing to present the business idea. We sent the draft and won the contest in November 2005 but started operations at the facilities of up to CIE_TEC since October 2006 and had to first seek funding to develop the complete business plan. What are your plans for self sustainability? In the beginning was not easy we need 6 to 7 months in search of funding for equipment, they could not buy used equipment in the field because of medicines or food requires a high degree of certainty in the determinations. What are your major products and services and how are they unique? What is your competition? The main services are stability studies for more than 36 medicines, the development of more than 25 new pharmaceutical formulations. The company characterized as successful differentiation is supported under three criteria: - reliability - delivery time - personalized service How did you first launch the product? It was difficult at first because I started to get more customers and they had to do the studies, some clients were relegated to cope with work. How do you measure the success of the company? Success is the distinction, winning the contest for entrepreneurs and getting major contracts that let them pay for the equipment we have now said the stone round. Alfa Cetratec is positioned in the Costa Rican market as one of the most successful compa63
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nies. Another success factor has been the team with which he now has experience in different fields of pharmaceutical. Who are your clients and how many do you have? How are you focusing on expanding your user community? Our clients are the pharmaceutical industry, veterinary and cosmetics and institutions. The company is flexible in delivery times, many details to take care of reliable data from the training of personnel to the proper maintenance of equipment Are you planning to patent your product and do you see any obstacles in doing so? No response. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? Lending Make a business plan Beginning to address the technical side and not able to give attention to all customers How have you benefited from business incubation? 1-Win the National Entrepreneurship organized by the incubator. 2-The physical space. 3-Technical-administrative tools support Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? Start of something that is known, study the market. Do you plan to internationalize your product and if so, how? Cetratec Alpha is a company with great potential at both the national and Central American and Caribbean, as it has knowledge, experience and love what we do; besides they are in a market growing each year. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? My advice would be to start something that you know, being a fighter, his motivation is not money to get it because while there comes a long way to go and many rocks in the crossing. Do you feel that you had the necessary advisory and support network when you started your company? No response. What is your message to funders/supporters and what is your message to the users of your product? The information was taken from a short interview and I received the information to build the database as close as possible to the guide suggested, information taken for the answers were chosen within the framework of the language and also because I believe business.
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4.2. Brazil: PV INOVA No DESCRIPTION/QUESTIONS/RESPONSES Overview and Description of the Company PV Inova has defined as its mission to improve the quality of people’s lives through the innovative use of technology within public transportation settings. PV Inova’s main objective is to make the time passengers spend on public transportation productive and enjoyable by developing and commercializing new products and services that are specially adapted for these means of transportation. Its first product, TÉLO, was patented as the very first public telephone developed especially for use in public transportation vehicles. The company is now developing its second product, the TVPV, the first vehicular public digital television. Is this the first company that you have started, and what drove you towards it? Yes, this is my first company. Probably what drove me so passionately into this business was the fact that it was completely in tandem with my career in Development and what I had assimilated at business school. Starting a BoP (base of the pyramid) company in my native country was the most challenging and impacting thing I could do after spending years in development banks and earning a business degree. We are three executive partners. Paulo Lerner, the Director of Technology, is an Engineer and has a background in innovation, having started other companies before. Leonardo Sampaio, the Director of Marketing, joined us after his MSc in Media and Communications at the London School of Economics. He also holds an MBA and had worked at big media and telecommunication firms in Brazil and abroad. I am responsible for Planning and Finance and my background is in Economics (BA and MSc) and Business (MBA). ADDITIONAL QUESTIONS: Why did you decide to pursue a business model that is based on the Base of the Pyramid strategy? Over the years, I realized that one of the best channels to promote economic development and prosperity is through entrepreneurship and innovation. A BoP business was a natural path for me because I was always attracted by the “do-good-and-do-well” concept. The opportunity to start a business with a strong potential for digital inclusion, positive social-economic impact and profit was all I needed to launch myself into this BoP endeavor. You have patented your product line, is this a niche market you are entering or do you feel that you are faced with much (direct or indirect) competition? This is definitely a niche market that we have created – exploring idle time on public transportation in a systematic manner. However, we are aware that competition will come sooner or later and we have two strategies to deal with that: being quick and efficient in occupying the best spots in the market and protecting our intellectual property. When did PV Inova begin operations and how did you develop the idea with your colleagues? PV Inova was founded in August 2004, during the second year of my MBA. The idea for TÉLO, our first product, emerged during conversations with my partner, Paulo Lerner, who at the time was attending grad school in engineering, in Rio de Janeiro, Brazil. He came up with the idea of a public phone especially adapted for public transportation ve65
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hicles and we began to develop this idea into an actual business. What is the background of your colleagues in the company? We are three executive partners. Paulo Lerner, the Director of Technology, is an Engineer and has a background in innovation, having started other companies before. Leonardo Sampaio, the Director of Marketing, joined us after his MSc in Media and Communications at the London School of Economics. He also holds an MBA and had worked at big media and telecommunication firms in Brazil and abroad. I am responsible for Planning and Finance and my background is in Economics (BA and MSc) and Business (MBA). Who are the other shareholders in your company, in addition to your executive partners? We have as minority shareholders one angel investor, seven members of an investment club, and a small investment firm. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? Our first round of financing was by an angel-investor, who provided capital and knowhow to the business. We later structured two more equity and two debt rounds and recently earned a grant from the Brazilian government. Because full commercialization will only start in January 2008, we are still on our way to becoming self-sustainable. ADDITIONAL QUESTIONS: Does the Brazilian government financially support your work given its broader social mission? We have earned a grant from FINEP, a government agency that supports R&D and entrepreneurship, and got financing from FINAME, one of the lending arms of BNDES, the Brazilian Development Bank. In Chile, we earned a grant from CORFO, another government agency, to start exploring the Chilean market along with local entrepreneurs. What are your plans for self sustainability? The future of the product is not limited to making telephone calls alone – what else can you spin off from this technology? TÉLO is much more than simply a telephone. First, as an added feature, it has a GPS module (Global Positioning System) which can be used to track the vehicles. Such a monitoring and tracking system benefits (I) bus companies, by providing more control over their fleets; (ii) passengers, who will have information on where their desired vehicle can be found, minimizing waiting times at bus stops; and (iii) public authorities, by gaining more control over public transportation quality in their cities. Other additional services such as electronic ticketing and internal security cameras may also benefit from the TÉLO system for data and image transmission to their respective information management centers. Finally, the incorporation of new technologies, such as 3G, VoIP and Bluetooth are also in the pipeline for TÉLO. What are your major products and services and how are they unique? What is your competition? How much cheaper is it to use your phone versus a cell phone? TÉLO is cheaper than pre-paid (pay-as-you-go) cell phones, which are dominant in developing countries (in some countries up to 94% of total phones), and its rates are equivalent to those of street public phones. How did you first launch the product? TÉLO was soft-launched in February 2007 in the city of Porto Alegre, Brazil; in association with Brazil Telecom and bus company Carries. It was later launched in Rio de Janeiro, in association with Metrô Rio, during the Pan-American Games (Rio 2007). 66
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How do you measure the success of the company? No corresponding response. Who are your clients and how many do you have? How are you focusing on expanding your user community? No corresponding response. Are you planning to patent your product and do you see any obstacles in doing so? No corresponding response. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? Overall, our biggest challenge was dealing with the lack of entrepreneurial culture that is still present in Brazil, as in many other developing countries. Being approached by two young entrepreneurs with an innovative business idea was such a novelty for most companies and investors that in most cases the reaction was something like, “Great idea! But come back to me in a couple of years, once the concept has been proven; I’m not willing to take that kind of risk.” This risk-averseness was particularly acute a couple of years ago, when the combination of high interest rates and a booming stock market naturally increased the opportunity cost of venture capital.
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5. Success stories MENA 5.1. No Syria: AL-WARDGHAN DESCRIPTION/QUESTION Description of the Company Name of Business: Al Wardghan Private Address: Basta village, Ain Al-Tineh, Lattakia, Syria Business Sector: Services - making coverlets, pillows, table covers, dolls and clothes of dolls Business format: Partnership, the partners are five rural women: Sana Hasan, Afaf Dayoub, Laila Humdan, Amneh Muhamad, Norma Baloul. Sana, Amneh, Norma, Laila and Afaf, and Norma are four talented rural women, from neighbored Villages, who are committed to revive the elegance of «al Wardghan» in their collection of artistic bed linen, cushions, dolls and table runners. Their linen collection is inspired by Ugarit alphabet. Everyday Sana and Afaf disclose their creativity in their workshop in the company of Sana's little girls who observe their mother's work in fascination while listening to the fairytale of «Wardghan». URL:www.vbi-attakia.org\english\supported_entrepreneurs\handicraft\wardghan.html Is this the first company that you have started, and what drove you towards it? Yes, this is our first business. Sana learned tailoring 6 years ago, but she kept the skill to sewing clothes for her own and her children’s use. Sometimes she made some pieces for the people of her village on her old sewing machine. She wanted to improve her skills and so did laila, and the rest of the group. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? In the beginning we were working on an old sewing machine that belonged to Sanaa, and we used our personal savings to buy the fabric and accessories needed, but after we got deeply into work and we started to receive orders we decided to get a loan and buy new machines that are more suitable for the textile work. With the help of the Village Business Incubator we prepared a business plan and submit the loan application to FIRDOS that works under the umbrella of the "Syria Trust for Development". What are your plans for self sustainability? No corresponding response. What are your major products and services and how are they unique? What is your competition? Our major products are a collection of artistic bed linen, cushions, dolls and table runners We focused on quality products as we have been taught by the VBI and the uniqueness of our design and the high quality fabric made our products worthy of sold in Damascus market, aiming at a particular client group which is foreigners visiting or living in Syria. No other business is using the Ugarit Alphabet in its designs. How did you first launch the product? Actually, the VBI is behind our working as a group, three of us received loans from FIRDOS/The Syria Trust for Development and bought new machines and the other two contributed with personal savings. The VBI provided us with technical training related to design and creative, conducted by Ms. Martine Cieutat, an international artist famous 68
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for her stunning interpretation of the colors and atmospheres of Syria in her textile works. Ms. Iman Abrash, Martine's trusted assistant has provided us with continuous support and we are now developing new, amazing designs on our own inspired by the old civilizations of Syria. How do you measure the success of the company? We consider our business a success, and we measure our success by our sales and the orders we receive from different potential clients. Who are your clients and how many do you have? How are you focusing on expanding your user community? Our clients are mainly the foreigners visiting or staying in Syria. We also contacted the Four Seasons Hotel and received a number of orders from them as they are using our products in their rooms. In addition we participate in exhibitions organized by the Village Business Incubator and other organizations. The VBI have also found new marketing channels for us; for example, Mr. Samer Kozah, owner of Kozah Gallery in Old Damascus and a famous jewelry designer in Damascus, who is now displaying our products in his gallery. Mr. Kozah’s clients are tourists who appreciate Syrian fine handicrafts and have the purchasing power to afford a high quality product. We also display our products in the VBI outlets in Salah El-Din Castle, and the Theatre in Palyerma city. Are you planning to patent your product and do you see any obstacles in doing so? No corresponding response. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? It was not a familiar concept for the rural women to work in groups or in partnerships, because they don’t own the team work skills. Also, since the target clients are foreign people, it was difficult for us to communicate with them, but with the continuous training provided by the VBI team, and their direct support we managed to overcome these problems. Furthermore, the designs were a little bit strange for the local taste; therefore, we had to target markets in Damascus and the nearby Salah Al-Din castle to overcome this problem. How have you benefited from business incubation? The Village Business Incubator supported us to receive financial assistance through FIRDOS loans. It also provided us with a market study, a business plan, managerial and technical training, promotional materials and marketing channels. Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? No corresponding response. Do you plan to internationalize your product and if so, how? No corresponding response. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? Business make women independent and working in groups make them more organized even at the household level. We highly appreciate teamwork. Do you feel that you had the necessary advisory and support network when you started your company? Actually if it were not for the advisory and support network that we received from the 69
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VBI we wouldn’t have been able to have our business, because our products are something that wouldn’t have initiated without external support, particularly, technical and marketing. What is your message to funders/supporters and what is your message to the users of your product? We wish for our experience to be passed to others because rural women have a genuine potential for productivity and teamwork. 5.2. Syria: KHATOUN DESCRIPTION/QUESTION Description of the Company Name of Business: Khatoun Private Address: “Al Hajar” Village, Lattakia, Syria Name of Owner: Madina Younes Rajab Business sector: micro scale –food processing (producing medical herbs and natural cosmetics) Business format: Sole Trader Natural treatments are part of the cultural endowment of the people living in the Coastal area of Syria; a knowledge that passed on from generation to generation and still represents the preferred remedy for many diseases. Also, medical herbs represent the secret of beauty for many women living in the area. My URL: www.vbilattakia.org\english\supported_entrepreneurs\handicraft\khatoun.html Is this the first company that you have started, and what drove you towards it? Yes it is my first business; I live in a very beautiful village of the coastal area of Syria, very close to one of the famous castles in Syria, Salah al Din Castle. Old manuscripts by Salah al Din's father evidenced how relevant herbal treatments were at that time, and how much people were knowledgeable about the use of natural remedies. This explains why the wild areas surrounding the famous castle are so rich in medical herbs and plants: some of them were used to poison the enemies and others were used to treat the soldiers' wounds. This is why I have decided to establish "Khatoun": a medical herbs business producing natural beauty products, herbal extracts and dried herbs. The inspiration for this business idea came from the wife of Salah al Din, "Khatoun" and her legendary beauty. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? Al Hajar village is rich with plants that are considered as the treasure of Syria. The raw materials are almost available in the nature; therefore I used my personal saving in addition to the help of my husband who offered me the money needed to buy the equipment. Moreover, with the loan I received from the Syrian Fund for Agriculture facilitated by the Village Business Incubator, I prepared the hygienic workplace. What are your plans for self sustainability? No corresponding response. What are your major products and services and how are they unique? What is your competition? 70
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My products are Medical herbs, natural perfume, medical and cosmetic creams, oil, Tea herbs (Zohourat). The uniqueness of my products derived from the fact the production process I follow depends mainly on the nature around, starting from picking the plants until they are ready to use, no chemicals is introduced whatsoever. All plants are organic, and the compositions of the products are 100% natural, that's why I have good position between local and foreign competitors who are adding preservative materials to their products. Our major products are a collection of artistic bed linen, cushions, dolls and table runners We focused on quality products as we have been taught by the VBI and the uniqueness of our design and the high quality fabric made our products worthy of sold in Damascus market, aiming at a particular client group which is foreigners visiting or living in Syria. No other business is using the Ugarit Alphabet in its designs. How did you first launch the product? The market in Lattakia is rediscovering the importance of the natural products and it use in terms of medical treatments, that is why potential clients were glad to find products that meet their demand. In the beginning I started within the village, selling to relatives and friends, and then I decided to broaden my scale outside the village through participating in a small market in Lattakia named "Village Market", organized by "The Environment Friends Association". The village market customers were the people who are looking for organic food. How do you measure the success of the company? I believe that achieved what I have always wanted. Through products diversity, demand has increased and consequently income. No I have my own customers who trust me. Who are your clients and how many do you have? How are you focusing on expanding your user community? My clients are the women who are looking for the natural cosmetics in my village and the village surrounding, people attended the village market and people who value therapeutic proprieties of the natural herbs. The most important thing I’m currently working on is to register my business in the handicraft union which will help me market my products in pharmacies and big shops in the city. Are you planning to patent your product and do you see any obstacles in doing so? No corresponding response. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? Since my products are related to the health, the only challenge I faced in the beginning was to gain people's trust. But by the promotion and the professional training I had from the VBI, and the respectable reputation I obtained from being affiliated to it, I easily managed to overcome such challenge. How have you benefited from business incubation? Upon completion of the basic managerial training at the Village Business Incubator (VBI), they provided me with an intensive technical training conducted by one of the most reputed experts in herbal treatments in Lattakia city. This training was like a bless for me, it provided me with exciting ideas about new types of products such as beauty creams, natural extracts, perfumes and distillates. Gradually, I got a very deep insight 71
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into herbal treatment; I learnt how to recognize wild plants and how to collect them in a way not to damage the environment, neither endangers rare species. I learnt how to process them as well as the drying and packaging techniques. Indeed, this training strengthened my already existing knowledge gained during my childhood. The Village Business Incubator market studies as well as the specific feasibility study conducted for my enterprise supported tremendously, and the web site and the exhibitions were a great promotion for my products Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? No corresponding response. Do you plan to internationalize your product and if so, how? No corresponding response. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? Now I realized the importance of the communication skills, and the art of dealing with people which are essential for the work. Furthermore, I believe in the importance of work for every woman in Syria, especially the rural women, who missed their opportunities in the labour market for a long time. Do you feel that you had the necessary advisory and support network when you started your company? I had and am still having more than I needed of support network and advice from the Village Business Incubator (VBI). The training, business counseling, marketing opportunities and promotion provided by the VBI have exceeded my expectation. What is your message to funders/supporters and what is your message to the users of your product? I would like to invite the donors and others to support the rural women with the potential energy. I would also like to invite my customers to contact me for a visit in my wonderful village, and I would welcome their feedback.
i
Source:http://www.vbi-lattakia.org/). Source:http://www.idisc.net/en/Incubator.160.html
ii
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Annex 2: Participating countries and institutions Table 1: Participating countries and institutions in Africa Country Angola Gambia Guinea Guinea Niger Nigeria Nigeria Senegal Senegal Senegal Senegal Senegal Senegal South Africa Tanzania Name of the Institution Business Incubator Chamber of Commerce Industry and Agriculture du Niger Assia – Guinea Réseau des Femmes du Fleuve Mano pour la Paix Chamber of Commerce Industry and Agriculture of Niger AJA Fantsuam Foundation CAEF CIDEF GTZ Ministry of Women Entrepreneurship Ministry of Women Entrepreneurship Union des femmes Chefs d’entreprises Maxum Business Incubator at The Innovation Hub University of Dar Es Salaam Entrepreneurship Centre Nature Government/ private Government Private NGO Government NGO, Business incubator Microfinance Business Incubator Women Entrepreneurs training Center Women Business incubation Bilateral Cooperation Government Government Union of Women Business Owners Business Incubator on Science Park Business incubator Participants Male Female Female Female Female Female Male Female Female Female Female Female Female Female Female
Table 2: Participating countries and institutions in Asia Country China Chinese Taipei/Taiwan Japan S Korea Name of the Institution Shanghai Technology Innovation Center Chinese Business Incubation Association Japan Business Incubation Association Korea Business Incubation Association 73 Nature Technology park Business incubation association Business incubation association Business incubation association Participants Male Male Male Male
India Malaysia Philippines Australia New Zealand Hong Kong Thailand Vietnam
Indian STEP and Business Incubator Association (ISBA) National Incubator Network Association (NINA) UP-Ayala Techno Park (Ayala Foundation, Inc) Business Innovation & Incubation Australia New Zealand Trade & Enterprise Hong Kong Science and Technology Parks Corporation National Science and Technology Development Agency Vietnam Incubator Club,
Business incubation association Business incubation association Techno Park Business incubator Government Organization Techno park State agency Business incubation association
Male
The Regional coordinator contacted directly business association coordinators who directed him to women business incubation for face to face interviews. Contrary to other regions, Asia has a more structure organization of business incubators Table 3: Participating institutions in Asia Country South Korea South Korea South Korea South Korea South Korea South Korea Malaysia India Name of the Institution Ulsan Juju Incheon Busan Chungju Gwangju eHomemakers SOHO Business incubator Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP) Periyar Technology Business Incubator 9 Nature Women Business incubator Women Business incubator Women Business incubator Women Business incubator Women Business incubator Women Business incubator Women Business incubator Regional Development Agency Private not for profit 74 Participants Woman Woman Woman Woman
Woman Woman
India Total
Woman
Table 3: Participating countries and institutions in Europe and Central Asia (ECA) Country Armenia Organization Business Women Support Center Foundation Regional development agency Contacts Respond Gevorgyan Lilia question11 Khandjan str., 0010 Yerevan, Ar- naire menia, Tel. 37493 814735; fax: 587871 e-mail: [email protected] Regional Rositsa Djambazova coordinator [email protected] tel +359 751 60404 questionfax:+359 751 60403 naire questionNino Elizbarashivili naire [email protected] Cholpon Aitakhunova www.busincub.com T: (+996) 515 77 00 05 (+996) 555 68 1990 Zamira Akbagysheva, [email protected]http://wcongresskr.freenet.kg T: (+996)312 66 42 13; (+996)312 66 13 52; (+996)515 77 00 05; El?bieta Kwiatkowska Gda?sk, ul. Dyrekcyjna 7 058 305 22 44 Domnica Cotet [email protected] Yes questionnaire Proponent organization
Bulgaria
Georgia
Kyrgyzstan
Kyrgyzstan
Poland
Romania
Russia
Business Incubator Gotse Delchev, Entrepreneurship Promotion Center Georgian Association of Women in Business Incubator Non-profit Business Incubator of Congress of Women of the Kyrgyz Republic Non-profit The Union of Business-incubators and Innovation Centers of Kyrgyz Republic Non-profit Mi?dzynarodowe Stowarzyszenie Pracowników Instytucji Rynku Pracy w Polsce Technology and Business Incubator Centre (Centrul Incubator Tehnologic si de Afaceri-CITAf) Regional center of management and culture Managing Company of Tambov innovative business incubator
questionnaire Steering Group member questionnaire questionnaire
Lapteva Olga Russia, Tambov Derzhavinskaya street, 16 a,office 305 [email protected]
75
Turkey
Women Incubator – Kütahya
Uzbekistan
Business incubator – Asaka
Uzbekistan
Business incubator – Mubarek
Tel/ Fax: +90 274 231 17 74 Address: Tav?anl? Yolu 3.Km.KUTAHYA-TURKEY [email protected] [email protected] web: www.kutahyakisgem.org.tr provided by Necla Haliloglu [email protected] Kurbanova Matluba Uzbekistan, Andijan region, Asaka city, Shodlik street 1. Tel: + 998 74 233 05 13 + 998 74 232 11 16 + 998 93 630 07 42 [email protected] Sarieva Guzal Uzbekistan, Kashkadarya region, Mubarek city, 2-microdistrict. Tel/fax: + 998 75 672 16 51 + 998 75 313 59 94
Questionnaire
Questionnaire
Questionnaire
Among the 10 organizations from 9 ECA countries who answered the questionnaire, 8 are business incubators and along with 3 women business incubators. The others target women.
Table 4: Participating countries and institutions in Latin America and Caribbean region (LAC) Country Chile Costa Rica Name of the Institution INCUBAUNAP Business Incubator of the University Arturo Prat Centro de Incubacion de Empresas del Instituto Technologico de Costa Rica (ITCR) Incubatec Red Dominicana de Incubadoras de Negocios y Emprendimiento (Dominicana Incuba) eMprende, Inc. Nature Business incubator Business Incubator Participants Female Female
Argentina Domincan Republic
Dominican Republic
Business Incubator Network of Business Incubators, Universities, Government and Non Government Agencies that promote Entrepreneurship Technology Business Incubator
Male Male
Male
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Table 5: Participating countries and institutions in Middle East and North Africa (MENA) Country Tunisia Palestine West Bank Name of the InstituNature tion El Gazala Technopark Business incubator, technopark, BIC, Palestinian Business Micro Finance providing Women Association BDS services (ASALA Enhances Technologies Association des femmes Chefs d’Entreprises AFEM Bahrain business incubator center Khatoun Al Wardghan ICT enterprise Union to promote women in business Business incubator food enterprise textile enterprise Participants Female Female
Morocco Morocco Bahrain Syria
Female Female Male Female Female
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Bibliography
Delmar F. and Holmquist C. (2004),”Women entrepreneurship: issues and policies” “Promoting Entrepreneurship and innovative SMEs in a global economy: towards a more responsible and inclusive globalization” Retrieved July15, 2009from www.oecd.org\dataoecd\6\13. Sweetser S.W. (2009). “Exiting The Business: Women Entrepreneurs Learn How to Do It Right” Retrieved July 10, 2009 from www.womensbiz.us/issues/may08/exit.asp Radovi M. M. (2007). “The perspective of women’s entrepreneurship in the age of globalization” Information age publishing INC., Retrieved July 14, 2009 from www.infoagepub.com European Commission (2002). Good Practices in the Promotion of Female Entrepreneurship and the European Forum on "Female Entrepreneurship” Retrieved July 15, 2009 www.ec.europa.eu/.../entrepreneurship/.../study-female-entrepreneurship-en.pd Management-in-the-Last-40-Years . Retrieved July 11, 2009 from www.scribd.com/doc/13157617/Womens-Influence-on-BusinessDelmar, F. “Working Party on Small and Medium-Sized Enterprises and Entrepreneurship” The 2nd Conference of ministers responsible for SME’s on promoting entrepreneurship and innovative SME’s in a global economy" Retrieved July 17, 2009 from www.world-entrepreneurshipforum.com/documents/.../11.pdf Akram, A., Akram, F., Latif, M. and Jabeen,M., ”Problems faced by women entrepreneurs in rural areas”, Department of management science, “The Islamia University of Bahawalpur”, Pakistan Retrieved July 17, 2009 from www.scribd.com/doc/11124365/Women-Entrepreneurs “Promote Gender Equality and Empower Women” Retrieved July 17, 2009 from www.unido.org/index.php?id=7856 Vishwanathan, R. (2001). “Opportunities and challenges for women in business”, Retrieved July15, 2009 from www.indiatogether.org/women/business/renuka.htm Griffin N., Review of “Through the Labyrinth” Retrieved July 15, 2009 from www.womenbiz.uz\issues\nickygriff may 08\book. as\ Littlejohn, V.( 2004) “Women’s Entrepeneurship: An important issue for the global policy agenda”, The OECD Accelerating Women’s Entrepreneurship forum in Istanbul, Retrieved July 20, 78
2009 from www.books.google.kg/books?id=lFC6q0DDgjcC&pg=PA108&lpg=PA108&dq=Increase+the+abilit y+of+women+to+participate+in+the+labor+force+by+ensuring+the+availability+of+affordable+c hild+care+and+equal+treatment+in+the+work+place.&source=bl&ots=lfi5AOMOh5&sig=9Y8Drw UdeuZlMsqiwwgfwjXw8kg&hl=ru&ei=y4ZmSoKfLZuYnQP4ocz4Dw&sa=X&oi=book_result&ct=res ult&resnum=1 “Tianjin women’s business incubator”, Retrieved July 17, 2009 from www.tjwbi.com/system/2007/03/13/000168845.shtml infoDev Incubator Support Center www.idisc.net Retrieved July 19, 2009
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doc_923110337.pdf
Entrepreneurship is the act and art of being an entrepreneur or one who undertakes innovations or introducing new things, finance and business acumen, in an effort to transform innovations into economic goods.
Gateway to Economic Development through Women Empowerment and Entrepreneurship
InfoDev
International Women Working Group
April 2010
Working group Members Heinz Fiedler: Women Working Group facilitator Regional Coordinators: Mbarou Gassama Mbaye: Africa Annuar Mohd Saffar: Asia Rosita Djambazova: Europe & Central Asia Nejiba Khalfallah: Middle East & North Africa Noelia de León: Latin America & Caribbean
Contents Executive summary ....................................................................................................................................4 Context .........................................................................................................................................................7 I - Objective of the project .........................................................................................................................7 II - Research methods ............................................................................................................................... 8 2.1 Methodology ..................................................................................................................................... 8 2.1.2. Difficulties and limitations of the study ..................................................................................... 8 Chapter 1: Analysis of the relevance of women business incubation and entrepreneurship .......10 1.1. 1.2. Why focus on women business incubation? ........................................................................10 Women business incubators in the five InfoDev regions ...................................................12
Chapter 2: Women entrepreneurs and the business environment..................................................15 2.1. 2.2. Access to opportunities ...........................................................................................................15 Business environment and support .......................................................................................15
Chapter 3: Targeted sectors and business support services ........................................................... 21 3.1. 3.2. Targeted clients ........................................................................................................................21 Services offered ........................................................................................................................22
Chapter 4: women entrepreneurs constraints......................................................................................26 4.1. Main obstacles ..............................................................................................................................26 4.2. Main problems to be resolved .................................................................................................... 28 4.3. 4.4. Main challenges ........................................................................................................................29 Needs to meet........................................................................................................................... 31
Chapter 5: Good practices, effective business incubation models and components, and tools for women business incubators ...................................................................................................................32 5.1 Good business incubation practices......................................................................................32 2
5.2 5.3
Effective business incubation models and components.....................................................37 Tools to be shared ...................................................................................................................41
Chapter 6: Success stories .....................................................................................................................43 6.1. Preparation and collection of success stories ..........................................................................43 6.2. Feedback from guided-questions...............................................................................................43 6.3. Articles from various publications ..............................................................................................44 Chapter 7: Conclusions and recommendations by regions ...............................................................46 General conclusion ..................................................................................................................................... 50 Annexes .....................................................................................................................................................52 Annex 1: success stories ....................................................................................................................52
3
Executive summary The research Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship” was launched by the International Working Group on Women Business Incubation (IWWG), and supported by the InfoDev program of the World Bank. It was carried out over a period of fifteen months (December 2008 – February 2010) by a team of five regional coordinators, supported by members of the Working group and guided by an international facilitator. The primary goal of the research was to provide information on women business incubation around the world. In their respective regions, the team of five regional coordinators, under the guidance of the facilitator, administered questionnaires, did direct interviews, Internet search, and literature review to collect the relevant information to complete the study. The team explored the following areas: Analysis of the relevance of women business incubators, the business environment for women entrepreneurs, the main sector women investigate and the services offered to women entrepreneurs, the constrains they face as entrepreneurs, the good practices, effectives business models and tools for Women business incubators. In addition, each region coordinator collected success stories. Building knowledge on women business incubator was important because business incubation has proven to be a tool to promote economic development even though there is little knowledge about women business incubation despite the dynamism women entrepreneurs. In addition, women entrepreneurs have specific needs which call for a gender analysis in order to better understand their needs and motivations and fully utilize their potential. The good news is that women business incubator is gaining momentum in many Asian countries e.g. South Korea, which has 14 women business incubators and is expanding slowly in other parts of the world. In the MENA region, new women business incubators have been implemented, with new infrastructures in Morocco and Bahrain. However, these findings should not hide the discrepancies. In Asia, China has one woman business incubator out of more than one thousand. Iran has about 45 business incubators, with less than 1% for women. In Africa, the concept of business incubation is just emerging in the majority of countries and progress is being made in Southern Africa, Mauritius has implemented 6 business incubators and 2 are focused on women. The research has shown that business environment is overall poorly favorable to women despite the governments and international support. The majority of respondents recognized the lack and/or inadequate financing as the main constrain: 86% of responses for Africa, 100% for Asia, 75% for ECA and 50% for MENA. In addition, many countries emphasized the lack of information, the lack of supportive networks, the lack of self confidence, the lack of knowledge as limitation in addition to the cultural barriers.
4
Respondents requested legal reforms, more direct financing, the implementation of specific programs for women, more business support organizations, more capacity building, and more government and international support. The International Working group recommended increasing awareness and knowledge about women business incubation, increasing the supply of services to women entrepreneurs at large, reviewing laws and regulations to create a more favorable business environment for women entrepreneurs and strengthening the regional and global networks to better support women business incubation and entrepreneurship.
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Abbreviations AFEM ALEAP BI CAEF CIDEF ECA EU FEF GTZ ICT ILO IWWG LAC MENA NBIA PEJU SADEC SME UFCE UNDP USAID WBI Association des femmes entrepreneurs du Maroc Association of Lady Entrepreneurs of Andhra Pradesh Business Incubation Centre Africain pour l’Entreprenariat Féminin Centre d’Incubation et de Développement des Entreprises de femmes Europe & Central Asia European Union Fonds pour l’Entreprenariat Féminin Deutsche Gesellschaft für Technische Zusammenarbeit Information communication Technologies International labor organization International Working Group on Women Latin America and Caribbean Middle East and Northern Africa National Business incubation Association Programme Emploi jeunes en Milieu Urbain Southern Africa Development Community Small and medium enterprises Union des femmes chefs d’entreprises United Nation Development Program United States Agency for International Development Women Business Incubators
6
Context The Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship” was launched by the International Working Group on Women Business Incubation (IWWG), and supported by the InfoDev program of the World Bank. It covers the five InfoDev regions: Africa, Asia, Europe & Central Asia (ECA), Latin America and Caribbean (LAC), Middle East and Northern Africa (MENA). It is also opened for participation from all over the world for building strong and reliable connections and relationships of the Working Group to the other organizations active in promoting Women Incubation and Entrepreneurship, under the general goal to enhance the role of women entrepreneurs through business incubation.
I - Objective of the project The overall goal of the research project was to provide information on women business incubation around the world, with the following specific objectives: ? ? ? ? To enhance the role of women entrepreneurs through business incubation; To generate knowledge outputs that help to build the capacity of existing business incubators targeting women entrepreneurs; To promote the sharing of knowledge about women business incubation; To summarize the challenges for Women Incubation specific to countries or regions and outline activities needed for further improving the support structures for Women Incubation; To establish a foundation for strengthening cooperation and network building between women incubators globally; and To learn about global project organization and network building.
? ?
The knowledge produced by the International Working Group on Women Business Incubation will actively be disseminated all around the business community of the world.
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II - Research methods 2.1 Methodology The working group members used different methods to collect information: Literature review, Internet research, direct interview and administration of questionnaires, using the same questionnaire translated into French, Russian, Spanish and Korean language. The five regional coordinators elaborated and sent more than 100 questionnaires via email to selected addressees and collected 45 questionnaires and 39 success stories posted on the IDisc website (www.iDISC.net). The information was collected from December 2008 to December 2009 in the five regions. A midterm report was presented for each region during the workshop in Kyrgyzstan on April 2009 and the draft of the final report was presented during the Global Forum on Business incubation in Florianopolis Brazil in October 2009. 2.1.1. Sampling The sampling was based on the willingness of participants to answer the questionnaires. In Asia all institutions that filled out the questionnaires were Women Business Incubators (WBI). In the LAC region, no Women Business Incubators could be indentified during the project. Regional Coordinators targeted first women business incubators and questionnaires were primary administered to women business incubators, after institutions that support women entrepreneurs, and finally those that support entrepreneurship at large Table 1: Questionnaires collected by region InfoDev Region Africa Asia ECA LAC MENA Total Number of questionnaires 15 10 10 4 6 45 Business incubators 6 10 8 4 3 27 Women business incubators 3 10 3 0 3 17
2.1.2. Difficulties and limitations of the study Overall, in the five regions, the main difficulty was to fill out correctly the questionnaire to get harmonized data, particularly the scale to measure the national policies and strategies for women entrepreneurship. 8
In the Middle East and North Africa region (MENA), the main difficulty was the harmonization of data: the different cultural and historical background of countries has created very different business environments. Additionally the region partly is influenced by ongoing conflicts causing further difficulties not only for business development at large, but also for research as in the actual project. This situation contributed to the low response rate resulting into only six countries involved: Tunisia, West Bank Palestine, Morocco, Tunisia, Bahrain and Syria (with success stories). In Latin America and Caribbean (LAC), the questionnaire was sent to more than 40 organizations, including the representatives of business incubators, universities, state organizations, NGOs, foundations, and associations that promote and develop entrepreneurship associated with women, only 5 answered the questionnaire. According to the LAC Regional Coordinator, this low rate of answer is due to a lack interest on the specific topic of women business incubator in the region and the common belief that showing of success could cause negative effects on a flourishing business and is perceived as “dangerous”. Successful women in business are reluctant to share their success because too much publicity is expected to cause envy and “attention” of (tax) authorities as well as the “informal sector” (imitation effect and decreasing of profit). In the Africa region, the main constrains were the limited access to the Internet, the lack of information on business incubation and the lack of knowledge on the concept of business incubation. Generally, the small number of countries involved in the project and the sampling method limit the generalization of the conclusions in the different regions. However, the study has provided a lot of information on women business incubation.
9
Chapter 1: Analysis of the relevance of women business incubation and entrepreneurship
1.1. Why focus on women business incubation? 1.1.1. Women business incubation as a tool to promote eco development According to Real Estate Weekly, business incubators are widely recognized as proven tools for promoting economic development, commercializing technology, and creating jobs. The study, completed in October 1997, was conducted by the University of Michigan, NBIA, Ohio University and the Southern Technology Council under a grant from the U.S. Department of Commerce Economic Development Administration. It examined the impacts of business incubators, which house very early stage companies and provide on-site management and a full array of business planning, management and financial services. The results of the study on business incubation showed that the business incubators support programs for entrepreneurial firms have impressive and measurable impacts on the companies they serve. In addition, experts are calling business incubators a "best value" in economic development, based on low program costs and high return on investment to communities1 Women business incubation (WBI) is a tool to create sustainable business through mentoring and continuous support to women in addition training, provision of space and all services related to any business incubation. Furthermore, women business incubation is a way to create strong networks among women entrepreneurs. When they are among themselves, woman entrepreneurs feel more comfortable and confident; they become more open and willing to share knowledge and experience. Although the tools needed for successful women business incubation are not much different from those used already in business incubation, the general approach needs to be different for (potential) women entrepreneurs. This need is caused on one side by the environment. Not in all regions positive towards female entrepreneurs and where only relatively small social of legal barriers exist women still have the main responsibility for the family. Additionally more psychological factors keep women from staring on their own. “Incubation by women for women” could be the answer. Weather women business incubation is based organized “stand alone” (for women only) or as a specialized track within existing incubators needs to be decided case by case taking the specific situation and possibilities into account. According to the MENA report, women are becoming key players in the world economy as producers, employers, and business owners. In Saudi Arabia, women own 10 percent of real estate in major cities and have an estimated cash fund of SR 45 billion; 75 percent of that total is sitting idle in bank deposits. This potential is limited by an inappropriate educational background, a lack of role models, the gendering of entrepreneurship, a low social status, competing demands on time associated with family responsibilities and limited access to finance (MENA report, p. 7)
1
Source Real Estate Weekly:http://www.allbusiness.com/operations/facilities-commercial-real-estate/6449411.html), October 29, 1997.
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Women population has a great potential to contribute of economic and social development, but this potential is not used as it should be. 1.1.2. Lack of knowledge about WBI and the dynamism of women entrepreneurs The actual and potential contribution of women in all areas of development has already been recognized and women have made a valuable contribution to in the area of enterprise development. Despite the increasing number of business incubators worldwide, the number of women business incubators is still very limited compared the possible involvement of women entrepreneurs in the national and global economies. The possible explanation of this situation is related to the nature of business incubators in developing countries. They are often focused on technology-based companies, which are not the domain of women entrepreneurs. The specific needs of women entrepreneurs often are not understood or ignored by policy makers. In addition, there is little knowledge about women business incubation and women entrepreneurs at large. Therefore the existing incubators – without further information and training - cannot sufficiently cater for women entrepreneurs’ needs. 1.1.3 Women entrepreneurs have specific demands and needs In many societies, women do not enjoy the same opportunities as men. Progress has been made in education and health protection, but political and economic opportunities remain limited for women. Women business incubation is needed because women have different demands they also have different priorities and motivation when starting or conducting their business: Women need specific networks and/or need to be introduced to existing networks; they prefer being mentored by women, in addition their triple work burden (home, family, business) don’t allow them to work on ordinary schedule, consequently, they will need different services. Furthermore, women’s entrepreneurship needs to be studied separately from men for two main reasons: ? ? Women’s entrepreneurship has been recognized during the last decade as an important untapped source of economic growth, The topic of women entrepreneurship has been largely neglected both in society in general and in the social sciences.
Women entrepreneurs create new jobs for themselves and others and they also provide for the society different solutions to management, organization and business problems as well as to the exploitation of new entrepreneurial opportunities. However, they still represent a minority of all entrepreneurs. Thus there exists a market failure discriminating against women’s possibility to become entrepreneurs and their possibility to become successful entrepreneurs. This market failure needs to be addressed by policy makers so that the economic potential of this group can be fully utilized (Coordinator report p. 4).
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1.2. Women business incubators in the five InfoDev regions 1.2.1. Asia Region With more than 2,339 business incubators, Asia region has more incubators than all four regions. Asia has also the largest number of women business incubators but women are yet still poorly represented. Among the 15 countries involved in the project, only five have confirmed the existence of women-focused business incubators in their respective countries. The remaining ten confirmed there is none in their countries (See Table 2).
Table 2: Number of Women Incubator/ business incubators in Asia Countries South Korea India Malaysia China Pakistan Australia TOTAL Number of Women Business Incubator 14 3 1 1 1 1 20 Number of business incubators 270 110 106 1,100 1,586 1% Ratio Women BI/ Total BI 5% 3% 1% Less than 1%
Women entrepreneur’s statistics are not well known and well represented. In Asia, among the 20 women business incubators, South Korea holds the better position, with 14 Women Business Incubators2 out of more 270 business incubators. In China only one out of more than 1,100 business incubators is focused on women. In Japan exist 73 women Universities and more than 300 business incubators, but there is no women business incubator. Malaysia has more than 106 business incubators and only one is focused on women (Asia report)3.
2
A. Mohd Saffar, President Asian Association of Business Incubation& Regional Coordinator (AABI)) Women Working Group, Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Asia region report, www.iDISC.net
3
A. Mohd Saffar, President Asian Association of Business Incubation & Regional Coordinator (AABI) Women Working Group, Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Asia region report, www.iDISC.net
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1.2.2.
The Eastern Europe and Central Asia region (ECA)
The region has about 111 business incubators but very limited number of women business incubators. Among 10 institutions surveyed focused on women only 3 are women business incubators: the Georgian Association of Women in Business, Gori Business Incubator, Georgia; the Business incubator of the Congress Women of the Kyrgyz Republic and the Women Incubator Kutahya in Turkey. Overall there is not enough official statistics about women entrepreneurship and women business incubation in the region.
1.2.3. Latin American and Caribbean (LAC) The region has more than 1,000 business incubators and half of them are located in Brazil. The regional coordinator could identify only three organizations supporting women entrepreneurs and no women specific business incubator (LAC report)4. Women manage many micro and small enterprises in Latin America and the Caribbean (LAC). Women own about 1/4 to 1/3 of all the micro, small and medium enterprises in the region (SMEs) and their participation continues to increase. In the last two decades the number of women in the business sector has increased from 22 to 48 percent (ILO-UNDP, 2009). However, the issue of business incubation for women is not seen as a priority in the region. Besides the existence of more than 1,000 business incubators, many industrial parks and clusters, operating in the region, many countries do not any business incubator and the few business incubation initiatives do not put any specific attention on women. There are organizations and initiatives to support entrepreneurship and a number of them also target women, but very few offer complete programs for entrepreneurs to develop the maturity stage of business. Almost no country in LAC has defined or effectively implemented a national policy to promote women's development through incubators or other programs. But there are different nongovernmental organizations active in promoting women entrepreneurship. 1.2.4. Africa Contrary to other regions, the concept of business incubation is not well known in Africa. Many countries don’t have business incubators a fortiori those focused on women. Institutions that support entrepreneurship often offer training and micro credit programs for women entrepreneurs. There about 170 business incubators in Africa and 87 concentrated in the SADEC region 70% are concentrated in two countries: South Africa (54) and Nigeria (21). There are 5 women Business incubators out of 170, the ratio women Business Incubators/Business Incubators is
4
N. De Leon, 2009 Regional Coordinador, Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Latin America and Caribbean regions report, www.iDISC.net
13
about 3% (Africa report)5. This ratio hides the reality that many African countries don’t have national policy geared towards business incubators. 1.2.5. Middle East and North Africa (MENA)
There are about 143 incubators in the region, 30 in Tunisia and about 50 in Iran and less than 1% is dedicated to women. Internet research shows that progress is being made toward supporting women entrepreneurs through incubation. The Village Business Incubator (VBI), which is a service centre for the development of female entrepreneurship in rural areas of the Lattakia Governorate, was created in Syria.i The Bahrain Incubator Center is working on implementing a women business centerii. In 2006, the Association of Moroccan Women Business Leaders (AFEM) launched an incubator called "Casa Pionnières" to counter the fact that women still considerably lag behind men in the business world. The initiative was dedicated to helping women with innovative ideas create their own businesses in the field of services and information technology6. In July 2009, the same association, AFEM, Moroccan Businesswomen's Association, implemented a new "business incubator" to promote entrepreneurship among women in the Rabat region. Overall, the best ratio of less than 3% shows that there are not many women business incubators in the five different parts of the world.
5
6
M. Gassama- Mbaye, 2009 Regional coordinator, Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Africa region report, www.iDISC.net
http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/features/2006/08/28/feature-0
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Chapter 2: Women entrepreneurs and the business environment
2.1. Access to opportunities Participants were asked if the national policies provide the same opportunity for men and women entrepreneurs. In Asia 80% of participants said that women are given special opportunities contrary to ECA where most participants responded that men and women must have the same opportunities in business: 10% said that women have special opportunities. On average, 38% of respondents in the five regions said that opportunities are specially given to women entrepreneurs. Table 3: Access to opportunities Regions Equal opportunities for men and women 8 5 6 2 1 22 Opportunities for women specially 4 8 1 1 2 16 0 0 5 Opportunities for men specially 4 1 Number of responses % Special opportunities for women 29% 80% 10% 25% 50% 38%
Africa Asia ECA LAC Mena Total
14 10 10 4 4 42
2.2.
Business environment and support
To increase understanding of national policies and business environment for women entrepreneurs, participants to the study were asked to choose within the scale of 1 to 4 a figure that measures their perception of the level effectiveness of business environment and support for women. 2.2.1. Africa Region .
15
Table 4: Business environment for Africa region Country Angola -Business Incubator Gambia - Chamber of Commerce Industry and Agriculture du Niger Guinea -Assia Guinée - Réseau des Femmes du Fleuve Mano pour la Paix Niger - Chamber of Commerce Industry and Agriculture of Niger Nigeria - Fantsuam Foundation Nigeria – AJA Senegal – CAEF Senegal – CIDEF Senegal – GTZ Senegal - Ministry of Women Entrepreneurship DEF Senegal - Ministry of Women Entrepreneurship FEF Sénégal - Union des femmes Chefs d’entreprises South Africa - Maxum Business Incubator at The Innovation Hub Tanzania - University of Dar Es Salaam Entrepreneurship Centre Total Average National strategies 2 2 2 2 1 2 1 2 2 2 4 4 2 2 3 33 2.29 National programs 2 1 1 2 1 2 2 2 2 2 1 4 2 1 3 28 1.86 International programs 2 1 3 2 2 2 2 2 3 3 2 2 2 2 3 33 2.21
Overall, participants consider that the business environment is poorly favorable to women in Africa. The region scores 2.29 for national strategies and 1.86 for national programs and 2.21 for international programs. The lack of support to women entrepreneurs is mainly due to “gender neutral policies” and the belief that women and men entrepreneurs have the same needs International and bilateral cooperation agencies provide more support than governments through training and micro-loans. Many countries have their national policy papers, but haven’t implemented and funded programs to support women entrepreneurs. According to a representative of the Ministry of women affaires and entrepreneurship in Senegal, the Belgium coop16
eration implemented programs for women entrepreneurs and the national programmes are sporadic (Interview Ministry women affairs, Senegal). The German Technical cooperation program for youth employment in cities has provided a technical and financial support for the Union of Women Business owners” (Interview GTZ, Senegal). 2.2.2. Asia Region Table 5: Business environment for Asia Institutions /Country Ulsan, South Korea Jeju, South Korea Incheon, South Korea Busan, South Korea Chungju, South Korea Gwangju, South Korea India, ALEAP India, Periyar Malaysia, SOHO Australia Total Average National strategies 3 3 3 2 1 3 0 2 2 4 23 2.3 National programs 3 3 4 2 2 3 2 3 2 3 27 2. 7 International programs 1 2 4 2 2 3 0 0 2 16 1. 6
The answer of the 10 women business incubators gave the following scales: 2.3 for the national strategies, 2.7 for national programs and 1.6 for international programs. Governments provide more support than international programs for women entrepreneurs through national strategy and programs. Some countries such are Japan that are not on the sample have progammes more focused on domestic violence against women than women entrepreneurship (Asia midterm report, www.idisc.net).
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2.2.3. LAC Region Table 6: Business environment for LAC region Institution Country Chile INCUBAUNAP Costa Rica – Centro de incubación de Empressa de Instituto Technologico de Costa Rica (ITCR) Argentina – Incubatec Domincan Republic - Red Dominicana de Incubadoras de Negocios y Emprendimiento (DOMINICANA INCUBA Dominican Republic eMprende, Inc. Total Average 2 7 2.33 2 8 2.67 0 5 1.67 National strategies 3 2 National programs 3 3 International programs 3 2 -
According to the LAC regional coordinator report, one major obstacle is the lack of public policies that promote and ensure women's participation in the economy. Women programmes are more focused on women’s human rights, violence against women, equal opportunities issues, etc. rather than entrepreneurship. There have been significant changes in the legal framework and public institutions have developed internal policies on gender equity, but they are yet still not enough (LAC regional report, p. 14). 2.2.4. ECA Region The conclusion might not reflect the reality because many participants did not fill out this part of the questionnaire. Only Bulgaria and Romania pointed that they have national programs that support women entrepreneurs. Armenia, Bulgaria, Georgia, and Kyrgyzstan have international programmes, mainly USAID and European Union (EU), but the support is insufficient “It is too small to have an impact” (participant from Armenia). Bulgaria, Romania and Poland, as European Union members, have national policy and strategy for equal opportunity for men and women however those strategies must be implemented. Experts and managers of the business incubators in the ECA region consider that there is no need to establish women business incubators because the real problem is not a gender issue, but the business environment “The focus must be on change of mentality and business environment outside the incubators in order to have more successful women entrepreneurs” (Bulgaria, Ukraine, Kazakhstan, Uzbekistan). Table 7: Business environment for ECA region Institution/ Country 18 National strategies National programs International programs
Institution/ Country Armenia, Business women support center foundation Bulgaria, Business Incubator-Gotse Delchev, Entrepreneurship Promotion Centre Georgia - Georgian Association of Women in Business Kyrgyzstan - Business Incubator of Congress of Women of the Kyrgyz Republic Uzbekistan Business incubator Mubarek Uzbekistan – Business incubator Asaka Kazastan - Republic Council of Women, Kazakhstan Russia – regional center of management and culture Poland, Mi?dzynarodowe Stowarzyszenie Pracowników Instytucji Rynku Pracy w Polsce Turkey, Women incubator Kutahya Romania - Technology and business incubator Centre, Romania (CITAF) Total Average for 12 countries
National strategies 0 3 0 0 0 2 0 5 0.41
National programs 0 3 0 0 0 2 2 7 0.58
International programs 1 3 2 4 0 1 11 0.91
2.2.5 MENA region Table 8: Business environment for MENA region Country Tunisia - El Gazala Technopark Palestine - Palestinian Businesswomen’s Association; ASALA Bahrain Business Incubator Center Morocco, AFEM Total Average National strategies 4 0 4 2 10 2.5 National programs 4 0 3.5 4 15.5 2.9 International programs 4 1 0 3 8 2
Governments are making efforts to support women entrepreneurs through national strategies and programs. The MENA regional scored 2.5 for national strategy and 2.9 for national pro19
gram. Governments provide more support than international programs. These national programs and strategies score put the region at the highest rank compared to other regions. Table 9: Summary of business environment Regions Africa Asia ECA MENA LAC Average National strategies 2.29 2.3 0.41 2.5 2.33 2.45 National programs 1,86 2.7 0.58 2.9 2.67 2.21 International programs 2.21 1.6 0.91 2 1.67 2.09
Overall, the findings show that the national strategies and programs for women entrepreneurs are more developed in MENA and Asia followed by the LAC region and less developed for the ECA region. International programs for women entrepreneurs are more developed in Africa. The women business environment in ECA region could be explained by the equal opportunity policy, which does not allow any positive discrimination toward any sex. However, there are favorable laws and some national strategies for supporting women entrepreneurs in ECA region to create proper business environment for sustainable women entrepreneurs.
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Chapter 3: Targeted sectors and business support services 3.1. Targeted clients
The participating institutions were asked to identify their main clients or the targeted groups through a defined list of sectors (see table 10). Most incubators targeted women and youth. In Asia all business incubators had a focus on women in different economic sectors. Overall, the study shows that incubators have a strong interest first in agriculture (13%), followed by in high growth sectors (12%) and technology based startups (10%). Life science is the least important (6%). The other sectors include research and development, industries and services (6%). Table 10: Target groups by Region Target Groups / Clients High Growth Startups lifestyle businesses unemployed people Women-owned businesses/women entrepreneurs young people Technology-based start-up Agricultural producers Other (Please specify) Total 1.1.1. 13 10 8 2 4 Africa 8 2 2 Asia 1 5 4 6 ECA 3 LAC 3 0 0 MENA 3 2 2 14 37 24% Total 18 9 Ratio 12% 6% 9%
12 5 8 7 57 Africa region
7 1 3
7 4 5 3
4 3 2
3 2 2
33 15 20 10
21% 10% 13% 6% 100%
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36
14
18
In the region, very few women entrepreneurs choose the technology sector. The responses show a concentration on agriculture and other high growth sectors (14%) against 9% for technology start ups. Institutions surveyed pay a special attention to women (23%) and youth (21%). Women are mainly in sectors which are strongly correlated to the social division of labor. According to the German Technical Cooperation (GTZ) representative in Senegal, there is a lack of innovative ideas and creativity among women entrepreneurs who have a tendency to imitate 21
other women; they often chose activities that reflect their role in the Senegalese society. She said “They are confined in the “four C”: Couture (Sewing), Coiffure (hairdressing), Commerce (Small Trade) and Cuisine” (Interview, Senegal, GTZ PEJU). In Nigeria, women clients of the 21 business incubators are on the following sectors: honey production, bread making, industrial starch, gum, etc, yoghurt making, water, hair creams, zobo drinks for diabetics, etc (Interview ETCA Business incubator Manager, Nigeria). In Fantasum Business incubator, women are in agriculture production. Women are not in other sectors because of lack of information and networks they base their businesses on their personal experience, life style and knowledge. This situation limits the probabilities to discover new opportunities to grow as efficient entrepreneurs (Africa report). 1.1.2. Asia
In Asia, institutions surveyed are all women business incubators. The responses show that women entrepreneurs have more interest in life style business (16%) followed by agriculture (10%). It also shows a little interest in high growth (3%) and start up technology business (3%). 3.1.3. ECA Region
Business incubators have interest in women as a target group (average 46%); however countries differ: e.g. Russian targets 25% of women while Turkey targets 100%. Countries in the ECA region pay attention to youth (average 26%) and provide opportunity for agricultural producers (14%) and technology startups (11%). Incubators in this region work with unemployed people (17%) as well. 3.1.4. LAC region
The activities are more focused on youth than women, 29% and 14% respectively. Business incubators target mainly the high growth and technology based start up sectors. Incubators surveyed are not interested in unemployed (0%) and lifestyle business (0%). Agriculture is less important that the technology and high growth (14%). 3.1.5. MENA
Women are an important group targeted (22%) and youth (17%). Life style, agriculture and technology start up are at the same level of interest (11%) of business incubators surveyed. 3.2. Services offered Participants were asked the kinds of services their institutions offer to entrepreneurs and the percentage dedicated to women. Consultancy and information are the services the most offered, followed by training and premises to business incubation. Very few offer micro finance services.
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Table 12: Services offered Services Premises for business incubation Information Consultancy Training ICT access and hosting Strategy and project development Technology transfer and commercialization Micro-financing Access to funders Other* Total Africa 7 13 14 7 10 6 7 6 8 4 Asia 10 10 9 10 10 7 7 7 8 7 ECA 8 10 10 10 6 1 1 2 4 2 LAC 2 4 4 4 1 3 2 0 2 MENA Total 4 4 4 3 3 2 2 4 0 0 31 41 41 30 30 19 19 22 13 13 269 Ratio 11% 15% 15% 12% 11% 7% 7% 7% 8% 5% 100%
*ECA: other includes trade fairs and exhibitions; market research and database of funding organizations 3.2.1. Africa
The five countries with business incubators, Tanzania, Nigeria, Senegal, Angola, and South Africa, offer the following services: premises to business incubation, ICT access and hosting, information, consultancy, and training. ? Premises to incubation: South Africa, Senegal, and Angola offered services such as offices, meeting rooms, ICT infrastructure, while in Nigeria is focused on services related to the access to the local market and micro-finance. Tanzania offers training and a virtual space. Consultancy: All incubators offer the consultancy services (Nigeria 100%, Tanzania 30% for women). This service is mostly for start up business planning and business development (marketing, management and financing). The same model is used in the four countries. Training: Training is a service offered by all participating institutions to their clients. In Nigeria and Senegal the training is mostly focused on workshops on business and enterprises development, while in South Africa, the training workshops are focused on idea generation for technology businesses. In other agencies, training is focused on enterprises management and vocational training.
?
?
Overall, the non incubation programs do not offer access to ICT and put forward training in management and business development for women entrepreneurs. The Germany Technical Cooperation in Senegal has implemented a model to support entrepreneurs (male and female) by creating a body of ” local enterprise advisers” who are trained to assist entrepreneurs 23
through regular training and advising. The program is gender sensitive and encourages women to consider nontraditional sectors such mechanics and car repair shops. A grant was given to the Union des femmes Chef d’Entreprise (UFCE) to better support the women entrepreneurs members of the organization. 3.2.2. Asia
Out of 10 women business incubators, 6 incubators have their own premises for rental to client companies. One incubator in Malaysia however does have its own office, but very limited space to be rented out. This incubator operates on a “virtual” mode for its client companies. However, the incubator is in the process of establishing its own incubator space, a women business incubator within a technology park, in the capital city. All women incubators in South Korea provide almost full range of services: Rental space for business incubation, information on business contacts, markets, financing, legal, etc; consultancy on business plan, management, finance; training, workshops, seminars, etc.; ICT access and hosting; strategy and project development, technology transfer and commercialization, micro financing and access to funders. 3.2.3. ECA
Premises to business incubation: 80% of surveyed institution offer premises to business incubation for women: Turkey 100%, Kyrgyzstan 95%, Bulgaria 50%, Uzbekistan 40%, Romania 26%, Russia 5% and Georgia 5% as an association but the Gori Women Business Incubator provides 100% Training: Training is a service offered by all participating institutions to their clients. The business incubator in Bulgaria is licensed and provides vocational trainings on finance and accounting, management, tourism, fashion design and production, ICT skills; English, start your own business (1,833 people were trained for new professional qualification or improving qualification for unemployed people and human resources in SMEs, 85% of them are women). Tambov Incubator in Russia offers vocational trainings on management, accounting, business, marketing, network system administration and women represent 35% of trainees. Georgia offer training in personnel management, courses for cooks and confectioners, waiters tailoring/sewing, beauty therapy, hairdressers, massage therapist for 40% women. The training is mostly focused on workshops on business enterprises start-up and development, marketing and management. Business plans classes are offered to women in Turkey and Armenia 100%, Kyrgyzstan 95% and Uzbekistan. In Romania, the training workshops are focused on idea generation for technology businesses. Bulgaria provides workshops on partnership development, including public private partnership, project and strategy development; eco-tourism development 65% women, and seminars on re24
newable energy, regional development, good practices, Bulgarian and EU financing and developing programs, innovations in rural areas and EU funding programs – 75% women and Romania – EU funding and technology transfer, ICT, and applied research. ICT access: 60% of the respondents offer the services in ICT access and hosting, 100% in information and consultancy. The consultancy service is mostly in start up business planning and business development (marketing, management and financing). 30% offer micro-financing services: Armenia, Bulgaria and Kyrgyzstan. 3.2.4. LAC
Institutions surveyed offer consultancy services, information and training. University incubator offer mainly training in entrepreneurship innovation. Some offer ICT access and the space, pre and post incubation. 3.2.5. MENA
All institutions surveyed provide services in premises for business incubation information and consultancy.75% offer training services and 50 % micro finances services. Some institutions participating in the survey are not incubators and therefore – logically – do not provide the set of incubator services. This situation shows the need of women in these regions.
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Chapter 4: women entrepreneurs constraints This chapter identifies the main obstacles, problems to be solved, challenges women entrepreneurs face and consequently the needs to meet. 4.1. Main obstacles Participants of the survey were asked to identify the three most important obstacles and explain the signification of the obstacle in practice. Below are the different categories from which they selected the 3 most important constraints. 1. 2. 3. 4. 5. 6. 7. 8. 9. Common local perception that women should not run their own businesses. Lack of information Lack of knowledge Lack of experience Lack of appropriate premises Lack of confidence Absence of a supportive network Lack of Financing Other
4.1.1 Africa The main constraints for Africa are a lack of financing (86%), followed by the lack of information (64%), and the lack of supportive network (50%). Some participants mentioned the lack of self confidence. In addition, there are not enough women entrepreneurs as role models in the different country. Lack of information: According to the president of the Union de Femmes Chefs d’entreprises of Senegal (Association of women enterprise owners) “Very few women have access to computers to do research on the Internet to look for partners, markets, technical innovation etc. Women entrepreneurs lack supportive networks: “There is no network to support business creation, mentoring etc. (Interview President, Union de Femmes Chefs d’entreprises Senegal). Lack of self confidence: African women lack self confidence to conduct their business due to cultural beliefs that business is men sphere. Cultural and social barriers have a negative impact women’s ability to effectively develop creativity and entrepreneurship skills. «African Women develop an inferiority complex concerning some professions and activities. The lack of self confidence prevents them from entering the field of business; in addition, because of the domination of men in business, women have the feeling that the job [business] will not be easy for them” (Interview participant Guinea). 26
« Women fear to fail, they are not self confident and think that if they fail, they will expose themselves to the public derision, they prefer not entering the business world » (Interview, Ministry in charge of women entrepreneurship Senegal). “There is a general local perception that women should not lead their business” (Interview participant Niger). 4.1.2. Asia In Asia, the lack of finance is the problems of all respondents (100%), followed by the lack of supportive networks (50%). The lack of confidence is not an issue for women business incubators in Asia findings. However, 40% of respondents highlighted the common local perception that women should not run their own businesses, the lack of information and experience as important constraints for women entrepreneurs. 4.1.1. ECA In ECA, financing and the lack of experience appear as the most important constraints to women entrepreneurs: 75% of respondents said that finance was among the most important constraints. 67% mentioned the lack of knowledge followed by the lack of self confidence (50%) 4.1.1. LAC The lack of experience and the lack of confidence are the main obstacle in this region, although participants did not answered questions. It is difficult to draw conclusion from the responses. In Dominican Republic, the resistance from spouse in poor and rural areas was mentioned among the most important constraints. One respondent draws a parallel between the self confidence of women entrepreneurs and their social status. She argues that women from poor background are not confident enough besides their preparation to develop entrepreneurial ventures, while women entrepreneurs from wealthy families could be found in a mostly male-dominated network. Their families often protect them guarantee their place in influential networks. (From Questionnaire Dominican Republic). Participants highlighted the absence of a supportive network: “there are several networks … but they do not have focused programs that reach a critical mass to eventually develop entrepreneurial ventures… in my personal opinion most o these networks are very elitists” (Questionnaire Dominican Republic). 4.1.1. MENA The lack of experience scored 75% of the responses and the limited access to finances 50%. The respondent from Palestine argues that the saturation of local market, the lack of access to regional or international markets and the overall stifling political and economical situation are among the main obstacles. According to the coordinator, the main obstacles are:
27
? ? ? ? ?
The rules, habits, and traditions that keep women “at home” as wife and mothers rather than seeing them as equal partners in social and economic life The discrepancies between the declared policies (equality) and reality in the daily life The lack or lesser access to networks because of the social status of women and Islamic practices and Arab culture. The difficulties in raising equity capital and borrowing from formal institutions. The choice of the sectors: women businesses tend to be more in service sectors, while formal financing is more available for manufacturing and goods. Women entrepreneurs often start on the micro-enterprise level and operate below the micro-finance ceiling. Many women businesses do not grow to become small businesses, much less mid-sized or larger firms. In a number of developing countries, women-owned micro-enterprises are not able to graduate beyond the micro-finance level due to a “missing middle” of financing options
?
4.2. Main problems to be resolved Participants of the survey were asked to check 3 the most important problems and explain, if possible, suggest solution to the problems. Below is the list of categories 1. 2. 3. 4. 5. 6. 7. 8. Legal reforms Development of specific programs for WE support Establishment of business supporting organizations Capacity building and improving of Human resources Direct financial support Women role models Establishment of women’s networks Other
4.2.1. Africa In Africa, participants highlighted the main problems to be resolved: direct financial support, the capacity building and the improvement of human resources (71% of responses), women role models (57%). 36% of participants identified the establishment of women’s network among the main problems. 4.2.2. Asia In Asia, the main problems are the development of specific programs for women entrepreneurs and the direct financial support (70% of respondents). A quote from one of the incubator managers summarizes the importance of specific programs to support women entrepreneurship. 28
“If the entrepreneur is convinced that there is support in marketing her products, then she will have confidence to start a business (Interview India – Periyar, Asia). Although there are women business incubators in Asia, respondents said that the establishment of women network is an important need. 4.2.3. ECA The main problem for the ECA region is the direct financing support (90%) followed by the development of specific programs for women entrepreneurs (80%), and capacity building and improving human resources (50%). The regional coordinator mentioned the important issue of the legal reform for Armenia, Georgia, Kyrgyzstan, and Turkey. The representative from Georgia mentioned the war conflict between Russia and Georgia as a serious problem for women entrepreneurs. 4.2.4. LAC In LAC, the main problem is the establishment of business support organizations; no organization mentioned the legal reforms as an issue for women entrepreneurs. The regional coordinator mentioned the lack of knowledge about the need and access to networks, specifically women's business networks or trade unions. In addition the lack of confidence of investors / donors regarding the support for small businesses directly or through incubators was mentioned. Furthermore, there is a lack of knowledge about the potential of dissemination of success stories that can serve as motivation and promote role models (LAC regional report). 4.2.5. MENA The main problem in MENA is the development of specific programs for women entrepreneurs’ support (100% of respondents). According to the regional coordinator, MENA is a region where successful business depends heavily on networks. Because of traditional and social issues, women have less access to such networks. Women without family connections are unlikely even to meet people with whom they can form business and professional relationships for fund raising or information networking (MENA regional report, p.9).
4.3. Main challenges Participants were asked to choose the main challenges from the list below: ? ? ? ? ? Ensure governmental support for women entrepreneurs (WE) Ensure International support for WE Finding local champions to develop and manage appropriate programs Sharing of knowledge via a network of experts Other 29
4.3.1. Africa The challenges are identical for all institutions involved: ? ? ? ? Sharing of knowledge via a network of experts: 86% of respondents Ensure International support for WE: 79% of respondents Finding local champions to develop and manage appropriate programs: 79% of respondents Ensure governmental support for WE: 57% of respondents
4.3.2. Asia The three main challenges to be faced by proponents of women entrepreneurship in Asian region are: ? ? ? Ensuring Governmental Support for Women Entrepreneurship (50%) Ensure International support for women entrepreneurship (50%). Finding local champions to develop and manage appropriate programs (40%).
4.3.3. ECA Main challenges are identical for all institution involved: ? ? ? ? To share knowledge through a network of experts (60% ) And to ensure international support (50%) To find local champions to develop and manage appropriate programs (50%) To ensure governmental support for women entrepreneurs (40%)
In addition, many women enter business to escape poverty but they do not have skills to develop business. 4.3.4. LAC ? ? ? ? Ensure governmental support for WE: No responses Ensure International support for WE: No responses Finding local champions to develop and manage appropriate program: 50% Sharing of knowledge via a network of experts: 25%
4.3.5. MENA ? ? ? ? Ensure governmental support for WE: 50% of respondents Ensure International support for WE: 100% of respondents Finding local champions to develop and manage appropriate programs: 50% of respondents Sharing of knowledge via a network of experts: 50% of respondents.
Overall, sharing knowledge via a network of expert is the main challenge for Africa and ECA regions while Asia and MENA found that ensuring government and international support are the most challenging issues. 30
4.4. Needs to meet Participants were asked to choose the main needs of their institutions and clients they serve within the categories below: ? ? ? ? ? ? ? Ideas/contacts and experience exchange Expertise in some domain Training in . . . Networking with . . . Knowledge transfer Fundraising for Other
In Africa, training and fundraising needs are expressed by all participants. In addition, women entrepreneurs or support institution requested expertise in incubation sustainability, vocational training (to bring high quality products to the global market) and knowledge transfer for both clients and the organization. In Asia, the main need of the women entrepreneurs is funding mechanism specifically to support women entrepreneurship (60%). This could be in the form of micro-financing, soft loans, or grants. Other responses were not significant. All institutions in ECA expressed the need for Ideas/contacts and experience exchange (100%), followed by fund raising and knowledge transfer. Some instructions are more specific and need to build alliances, expertise in business planning, training in international business and business angel. One expressed the need for incubation knowledge transfer. LAC expressed the need to exchange experience by participating to regional and international events and to promote business contact for their clients. One institution expressed the need for business incubator management training and to network with other incubators. In MENA, participants expressed the need for business contact, networking particularly with other business incubators and fundraising.
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Chapter 5: Good practices, effective business incubation models and components, and tools for women business incubators The purpose of this chapter is to summarize and discuss the availability of good practices, business incubation models and tools for women business incubators which were gathered and collected during of the Project. These documents shall be shared with interested parties and stakeholders so as to improve the general state of business incubation in respective countries, as well as improve the services provided by individual incubators: ? Good business incubation practices (women specific and general practices) ? Effective Business Incubation Models and Components ? Tools to be shared
5.1 Good business incubation practices In the Project questionnaire, the participants and respondents to the questionnaire were requested to share good practices. The Regional Coordinators were able to gather twenty (20) good practices. Most of the good practices and tools did not have women specific characteristics. As women businesses in general have to operate in the same environment as any business it is not surprising that the same tools for business incubation are needed. However, the project identified a number of women specific needs and respective adaptations. Table13: Summary of Good Business Incubation Practices
No.
Good business incubation practices Promoting Business Incubation as a Family business (India)
Remarks
1.
One of the most important key success factors of to facilitate women entry Womeninto business (in India) is to promote her venture as a “family business”. specific The family is taken through the journey together, and the business venture practice(s) is projected as a “family-activity” 1 . Close Relationship Between CEO of Incubator and Women Entrepreneurs (India)
2.
WomenAnother practice by an incubator in India is to “know” all the women who are specific involved in their programs. This involves the CEO (a woman) having very practice(s) close relationship and knowing the women entrepreneurs on “one-to-one” basis1. In addition, this women incubator uses its connection to a previously “wom32
No.
Good business incubation practices en-only” college, to add comfort to the women entrepreneurs and their immediate families1.
Remarks
3.
Specific Program(s) to Attract New Women Entrepreneurs (India) One incubator thought that it best to specifically target women graduates Womenas potential entrepreneurs. Through experience, they have found out that specific generalized programs (advertisements in newspapers to recruit women) DO practice(s) NOT WORK. Response to an attempt to obtain women participants for Business Development Program in a national daily newspaper was LOW 1. The current, good practice is to specifically promote programs to small group of women graduates, and convince them that the incubator will assist in going up another level in business. This has encouraged many women to enroll for training programs. This approach has worked well. In the recent initiative by the incubator, thirty (30) women were recruited for the Business Skills Development Program, with twenty (20) more undergoing next Entrepreneur Development Program. Seven (7) women have submitted proposals for financing. Project ranges from engineering industry, to herbal products, to development of portable kitchen gadgets. Promoting Incubators as Learning Centre for Women with Low Level of Education (Senegal):
4.
WomenA women business incubator (funded by infoDev) helped women entrepre- specific neurs to learn about principles of business management: they learnt man- practice(s) agement, accounting, and computer literacy, which helped them bridge the digital gap. Through spreadsheet software, they were able to do their accounting, and have a daily log, both of which have facilitated calculations of costs and profits. Incubation Centres as “Learning Centres” have stimulated the desire to learn more and be in contact with the international markets. The women entrepreneurs were keen to learn French and English in order to expand their business overseas. In short, Globalization and international markets have a meaning for them2. Development of Women Entrepreneurship and Self-Employment (Russia)
5.
WomenThis good practice is to form” integrated inter-ethnic relations” at the social, specific cultural and economic levels. This is accomplished through the involvement practice(s) of young women in the revival of folk crafts, forgotten traditions, and the 33
No.
Good business incubation practices creation of modern forms. [In total, 764 women (80% from the total number of participants) from 8 towns and 30 rural settlements of the Tambov region were involved in the project3 ]. Establishment of Women Mentoring Pool (India)
Remarks
6.
A Mentoring Pool can be established in order to help fledging women entre- Womenpreneurs consult more experienced and successful mentors, as demon- specific strated by an incubator in India. The mentors will advise the mentees on practice(s) how to face problems, challenges and difficulties. The mentors too can assist in the establishment of support systems, and sharing of information on management-know how. A “Common” Mentoring Pool, that is accessible to all incubator clients companies, should be more cost effective1. Hosting of Women Entrepreneurs Through MBA Programs (India)
7.
One incubator believes that a good way to excite the innovative mind of Womenwomen entrepreneurs is through providing knowledge to future business specific leaders. Hence, the incubator hosted a Women Entrepreneurs MBA pro- practice(s) gram1. Database for Women Entrepreneurs (Senegal)
8.
One major step towards assisting women entrepreneurs is to have a data- Womenbase about them. The Government of Senegal was involved in creating a specific database for women entrepreneurs. Since 2007, the government allocates practice(s). a budget of about USD 10,000 to finance a database on women entrepreneurs in Senegal2. Use of Internet (Senegal)
9.
Women business incubation in Senegal was successful in increasing Womenawareness on the opportunities the Internet could offer. All tenant company specific owners, whose highest level of education is 10th grade, and who have never practice(s) had contact with computers, were trained to use software to present their products on the internet2. Provision of Women-related Vocational Training (Georgia)
10.
An incubator in Georgia (Gori Business Incubator) designed a program to provide quality demand-driven, women realted vocational training courses to internally displaced women free of charge. These courses include sub- Women34
No.
Good business incubation practices
Remarks
jects on hospitality business such cleaning, tourism, health, food catering, specific practice(s) etc. The incubator, Gori Business Incubator for IDP Women, is expected to become a sustainable institution to incubate and provide hands-on assistance to five (5) micro enterprises involving one (1) food catering company, a laundry and dry cleaning shop, a tailor, a beauty salon, and an IT training consultant. The incubate companies are expected to leave the program financially viable and free-standing, and shall continue their businesses outside the incubator upon completion of the incubation period. The incubator offers subsidized rental space too to the women entrepreneurs to start their own micro businesses. This program is supported by Georgian Association Women in Business, in partnership with USAID'/ SME Support Project3. Dissemination of Elaborated Knowledge and Methods 11. Several interesting projects (for women) implemented in Poland involve col- Womenlaborative programs with partnership countries3. These program include: specific ? Dissemination of elaborated knowledge and methods within target practice(s) groups and areas in partnership countries, ? Activisation of women being disadvantaged on labour market, through vocational training and self-employment. ? Development of entrepreneurship among women from rural and urban areas. ? Creation of new alternative workplaces for agriculture ? Training of qualified personnel for SME sector in the partnership countries. Implementation of Training and Support Services Program (Romania) 12. An incubator in Romania (CITAf) implemented a training and support ser- Womenvices specifically for unemployed women to start-up small businesses. The specific project was fund by local Agency for Employment. Training program, Guid- practice(s) ance and Market Insertion of Women (FEMM-IN). Under the project, 20 women started-up a small business3. Increasing export potential through international exhibition (Armenia) 13. The Business Women Support Center Foundation organizes international General fairs and encourages Armenian women entrepreneurs to participate in 35
No.
Good business incubation practices these international exhibitions in sectors such as textile, education, tourism and handicrafts3. Advocating business incubation to attract involvement of central government and Donor Organizations (Senegal) One incubator in Senegal was able to leverage its partnership with InfoDev, to attract central government involvement. The positive impact of the partnership has led to the government to sign memorandum of understanding (MOU) with the incubator. Under the MOU, The Government (through Ministry of Women Affairs, Ministry of Scientific Research) donated ICT equipment, offered free training in marketing and networking, and attracted other development and donor agencies, such as the Belgium cooperation (Senegal). The project has a positive impact on women entrepreneurs2 Combining limited resources to provide better services (Bulgaria)
Remarks
14.
General
15.
Combining or pooling of limited resources is another potential avenue to provide better services3. An incubator in Bulgaria (Gotse Delchev) offered the following programs and services through collaboration with national and international partnership: ? ? ? ? ? ? ? Premises and micro-financing through National JOBS Project. Trainings on management and marketing from EU. Pre-accession funds and Quality Control training. Study visits by British GOF project and INTERREG. Development of informal cluster in eco and rural tourism and partnership. Business Incubator without wall (for 60 Muslim craftswomen). Supporting scheme involving (33) unemployed women to start their own businesses in partnership with national financial programs.
General
16.
General (not necessarilyIn Nigeria, incubators are some time indirectly used to secure loans. The women roles of the incubator are to provide pre-loan assessment, training in basic specific book keeping, business development, risk assessment and team working. practice). The incubator provides financing, information through commodity price intelligence, loan recovery and post loan assessment. Incubator as a credible organization to obtain loans from financial institutions (Nigeria) 36
No.
Good business incubation practices Appearance on national TV talk show arranged by incubator
Remarks
17.
One incubator assisted a woman-owned incubate company in negotiating partnership with national television network for one hour talk show on Fridays about their business activities1. Such publicity is important to publicize members’ products to the masses. Avoiding political connection
General
18.
A women incubator has made a policy of not being connected to any political party. As such, the incubator is able to operate without difficulty even General though there were several changes in state and local governments1. Use of peace corps and students
19.
Use of volunteers from Peace Corps and students to train women entrepre- General neurs reduce the training and coaching costs2. Training workshops provide opportunities for international partner- General ship and networking (not necessarilyTraining and workshops sessions provide opportunity to strengthen or build women networks and partnership. Through these session cross-border and interna- specific tional partnership were established in Bulgaria, Poland, and Romania3. practice).
20.
1
A. Mohd Saffar, (2009), Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Asia region report, www.iDISC.net
2
M. Gassama- Mbaye, (2009) Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Africa region report, p.9; www.iDISC.net R. Djambazova, (2009), Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Eastern Europe and Central Asia regions report, www.iDISC.net
3
5.2 Effective business incubation models and components Respondents were also requested to share projects and programs which could constitute effective business incubation models and components. In this context, good practices and incubation models are “differentiated” by the investment required to integrate them into an existing or a new incubator. Good practices require less investment, and can easily be adopted by the incubator without requiring extensive involvement of outside parties. Models and components, in this context, require much investment and may need external or foreign parties’ assistance. 37
The Project was able to gather eleven (11) possible effective business incubation models and components or elements of a good business incubator. The possible effective models and components, as suggested by the participants/respondents in the questionnaire can be grouped into 4 main categories: The models which improves the Business Development Services (BDS): provision of information, consultancy, and various non financial services (All regions) The models which provides micro loans to women entrepreneurs, along with non financial support (ECA and Africa) Models which improves the women entrepreneurs environment: kindergarten, virtual incubators to enable women to work from home, industrial parks dedicated for women entrepreneurs Models which involve the central, local governments and international partners (see details table below). Table 14: Summary of Business incubation models and components
-
No.
Business incubation models and components Provision of information, consultancy and various services
1.
Women incubators providing their clients and entrepreneurs with information, consultancy, variety of trainings, and access to market, was found to be an effective model in the ECA countries3. Provision of micro financing
2.
Microfinance, which is supported with training, mentoring and market intelligence, was found to be effective in Armenia, Bulgaria, Kyrgyzstan and Nigeria. In Bulgaria, Business Incubators ran micro-financing fund (leasing scheme for equipment) provided by the BG Government through UNDP3. Rural and eco-tourism development involving women
3.
Bulgaria, Poland, Kyrgyzstan, and Romania, have involved/engaged women entrepreneurs in rural and eco-tourism and agriculture development projects3. Craft and handicraft skills for business opportunity
4.
Several projects in Bulgaria, Poland, Russia, Kyrgyzstan, Turkey, use crafts-skill traditions and culture, to create business opportunity for women. These projects are targeted in particular to distant and rural areas3. 38
No.
Business incubation models and components Partnership with central and local governments
5.
Such partnership with central and local government can be found in Bulgaria, Kyrgyzstan, and Russia3. Improved services through international partnership
6.
Incubators in Bulgaria, Georgia, Poland, and Romania have used external and international expertise to improve services provided to client companies 3. Creation of enterprise advisers (Senegal)
7.
This model involves creation of a corpus of “enterprise advisers” who are trained through the project German GTZ/PEJU Project to assist entrepreneurs through regular training and advising2. Integrating kindergarten in incubator
8.
A Women Incubator in Europe (”Weiberwirtschaft”) has integrated a Kindergarten to give the client women entrepreneurs more time for developing their business. Meanwhile this Kindergarten has become a “business” itself. Demand from neighboring families for this service has outgrown capacity by far. Business incubator for university graduates (Tanzania)
9.
This model involves incubating graduating (women) students for a certain period, giving them trainings, business advice, and then allowing them to put into practice what they learned. After some time, the promoter of the program visits them to see how they are implementing what they have learned2. Virtual incubators enable control over personal and professional life
10.
Virtual incubators can assist professional women entrepreneurs to balance family and professional life by enabling them to work from home. This incubator (called eHomemakers or SOHO Incubator in Malaysia) is actually a “virtual” incubator with more than 17,000 members. Most of its members are women professionals who have good university-level education. A significant portion of their members too are women professionals that have succeeded in the corporate world. However, due to family commitment, they chose to quit the corporate world
39
No.
Business incubation models and components and work in their own small-businesses from home1. This virtual incubator has (only) a small administrative office, with members “teleworking” from their own homes7. This Virtual Incubator was established in 1998. Industrial estate for women entrepreneurs
11.
An association in India has established an industrial estate to assist women entrepreneurs. The Association for Lady Entrepreneurs of Andhra Pradesh (ALEAP) was established as an Industrial Estate for Women ALEAP in 1993. It was the first women Industrial estate formed under a Public-Private Partnership (PPP) model with support from Government of India. (There is a women incubator within this industrial estate). This partnership has enable women from grass root level to set up industries using Government of India schemes, like the Credit Guarantee Fund Schemes. The training was offered to enable members sustain their business activities in the long run. ALEAP can also assist their clients in obtaining credit for through ALEAP Credit Guarantee association. This program is part of an integrated approach to promote of women entrepreneurship. This effort had resulted in economic development of women in the region1.
A. Mohd Saffar, (2009). Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Asia region report, www.iDISC.net
2
M. Gassama- Mbaye, (2009) Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Africa region report, p.9; www.iDISC.net R. Djambazova. (2009) Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Eastern Europe and Central Asia regions report, www.iDISC.net
3
40
5.3 Tools to be shared Tools to be shared refer to the following documents which the Regional Coordinators had received from incubator managers and other respondents. ? ? ? ? ? ? Questionnaires, Checklists, Templates, Training materials, Assessment guides, Books and other publications.
Even though the regional coordinators received numerous tools, only four (4) documents in English) are available for sharing and distribution. There is no tool specific to women business incubation in the five different InfoDev regions Table 15: Tools to be shared No 1. Tools to be shared Self-Assessment (Test) on Women’s Readiness to become Entrepreneurs8. A women incubator (Malaysia) insists that new clients or members who want to join their program must first read some books and manuals published by the incubator (even though their new members tend to be women professionals with university-level qualification). After reading the books, the women are asked to perform a self-assessment using some tests made available in the incubator’s training manual. It is important that the women evaluate themselves, and be exposed to the expected difficulties and challenges first, before they actually embark on their own journey (how to start and run a business). Business Incubation Training Materials (tailored to clients’ needs in Senegal) in French Language9. This material could be used for women entrepreneurs with a low level of education: Training material in computer, marketing, management and business planning in French for women entrepreneurs is available (Senegal). Business Incubation Training Materials (tailored to clients’ needs in Bulgaria and Kazakhstan) in Russian Language10. Titled “Develop your business idea and your own business”, these materials are
2.
3.
8
A. Mohd Saffar, President Asian Association of Business Incubation & Regional Coordinator (AABI)) Women Working Group, Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Asia region report, www.iDISC.net 9 M. Gassama- Mbaye, (2009) Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Africa region report, p.9; www.iDISC.net R. Djambazova, Regional coordinator for ECA WBIs, Project “Gateway to Economic Development through Women Empowerment and Entrepreneurship”, Eastern Europe and Central Asia regions report, www.iDISC.net
10
41
No
4.
Tools to be shared drafted according to ILO methodology, in Bulgaria and Kazakhstan). This material could be used for women entrepreneurs with a low level of education. First step is training for trainers. Monitoring and Evaluation of Baseline Questionnaire to Better Meet Clients’ Future Needs. (Senegal and ECA?) The response to the questionnaire will provide baseline information of current state of the incubator. Future surveys can ascertain whether the products and services have improved over the years.
42
Chapter 6: Success stories The primary aim of collecting success stories on women business incubation is to generate knowledge outputs on different ways to use incubation for the women entrepreneurs, and how the entrepreneur has harnessed the opportunities of business incubation. This task is in-line with one of the objectives of the project: to generate knowledge output about women business incubators and to help build capacity of existing women business incubators. Furthermore, it is hoped that the success stories collected will inspire potential stakeholders to take the first steps towards investing in women business incubation. 6.1. Preparation and collection of success stories In order to expedite preparation and collection of success stories, the regional coordinators employed two (2) methods: Feedback from guided-questions and articles from various publications, (business incubations newsletters, bulletins, newspapers, magazines, and write-ups by incubator managers, etc.) 6.2. Feedback from guided-questions In order to collect success stories that will provide a first-hand information and personal touch from the women entrepreneurs, a questionnaire was prepared containing a list of guided questions. This set of questions was based on the guideline InfoDev uses for success stories, published on the IDisc website. It is drafted in such a way that the responses provided by the women entrepreneurs will easily help the reader understand how incubation has helped the entrepreneur in harnessing the opportunities provided for by business incubation. The women entrepreneurs were also encouraged to respond in the questionnaire using the “first-person” language (I/me/my), as a form of personal story-telling to the reader. Table 16: Questionnaire for preparation and collection of success stories
No. 1. 2. 3. 4. 5. 6. 7. 8. 9.
Questions Is this the first company that you have started, and what drove you towards it? How did you finance your start-up operations and how long did it/will it take for the company to become self-sustainable? What are your major products and services and how are they unique in your business sector? What is your competition? How did you first launch your product/services? Who are your clients and how many do you have? How are you focusing on expanding your user community? How do you measure the success of the company? What was the biggest challenge in starting an innovative business in your country and how did you overcome that? How have you benefited from business incubation? (E.g. infrastructure, knowledge development, networking with other businesses/traders, other) With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company, and which you would 43
No. 10. 11.
Questions like to share with fellow entrepreneurs? Do you feel that you had the necessary advisory and support network when you started your company? What is your message to supporters (financial or otherwise) and what is your message to the users of your product?
During the project eleven (11) stories were collected using the questionnaire. The companies (or women entrepreneurs) that responded to the questionnaire are shown in Table 17 below. Table 17: Companies and entrepreneurs providing responses to questionnaire Company/Entrepreneur PV Inova Cetratec Alfa, Shengmiluo Tianjin Khatoun Eatcetra Nig AmyDiop Al-Warghan Zuhal Ucaroglu Creative Media Brazil Costa Rica China Syria Nigeria Senegal Syria Turkey Poland Country
6.3. Articles from various publications Publications on business incubation were a good source of success stories on women entrepreneurship. However, since the articles were normally written by a second-person (other than the entrepreneur), there is a lack of “personal-touch” to article, vis-à-vis the reader. The regional coordinators were able to gather 21 articles on success stories. However, only ten (10) are presented in Table 16 below. Table 18: Articles and publications on success stories on women business incubation Company/Entrepreneur Huda Jahani IncubaUnap Change Initiatives Mrs. R. Burulsun Mrs. N Seiitalievna Freshbots 44 Country Bahrain Chile India Kyrgyz Kyrgyz Malaysia
Enhanced Technologies Vietnam Medical Software Mdm Kavitha Anuja Electronics
Morocco Vietnam India India
The five regional coordinators were able to gather a significant number of success stories on the topic of women business incubation. Apart from the responses from willing entrepreneurs, the availability of articles from newsletters, bulletins, newspapers, magazines, case studies, and websites, etc., helped much collecting some stories. however, in the LAC region, sharing success stories was an issue because of culture as mentioned in the beginning of the report. However, regardless of the number of success stories collected, what is important is the effect and impact that these stories will have on the women entrepreneurs. It is hoped that these stories will inspire more women to take the first step towards becoming entrepreneurs. It is also hoped that the success stories collected will inspire potential stakeholders to take the first step towards investing in women business incubation.
45
Chapter 7: Conclusions and recommendations by regions 7.1. In Africa Women entrepreneurs in Africa encounter many barriers to grow their business. In addition to the difficult environment in Africa, the lack of training, lack of financing, they face many cultural barriers and unfair laws and regulations, which appear to be “gender neutral”. In Africa region, business incubation concept is not well introduced in enterprise development policies. Nigeria and South Africa are the countries were incubation is integrated into national policies to promote the private sectors. These two countries could be used as a model to promote business incubation throughout Africa. It is recommended: ? ? ? Conducting thorough studies and analyzing laws and regulations with a gender analysis lenses; Including gender issues in all modules of the InfoDev business incubation management training; Promoting advocacy programs for business incubation in general and women business incubation in particular because incubation is not a familiar concept in French speaking countries in West Africa; Strengthen involvement of government in incubation activities to better inform decision makers about the needed policy change; Involving women organizations, banks and micro credit institutions to support business incubation initiatives could help better promote the concept of women business incubation.
? ?
7.2. Asia In many countries, women become entrepreneurs out of necessity due to several reasons: unemployed husbands, poverty, and the desire to be economically independent. As compared to their male counterpart, the “odds against” women in this business world are much higher, as the women have to balance their work life with home life. This Study has certainly attracted participation beyond the immediate stakeholders (namely, InfoDev and the Regional Coordinators), to include various government ministries, government departments, international aid organizations, consultants, national incubator associations, incubator managers, local councilors, etc. Through this study also numerous documents and data were compiled from across Asia. 46
It is recommended introducing specific programs for women entrepreneurs, share information among InfoDev region and compiling success stories, which will be re-written in format and style that would be inspirational to readers, especially new women entrepreneurs.
7.3. ECA – Eastern Europe and Central Asia In ECA region women entrepreneurs face many barriers to establish and develop their business. Formally national legislations provide equal opportunity for male and female entrepreneurs; however the business world is still men dominated in particular in innovation, applied science and technology. Prejudice and cultural obstacles are strong. The business incubation model is quite effective in ECA countries and the variety of types and main objectives of the business incubators provides a good opportunity for ideas and experience exchange and learning. However, business incubation in ECA region is supported mainly by International donor organizations such as InfoDev but not well supported by the Governments which jeopardize the sustainable development. The preferences of the business incubator managers and experts in ECA are to develop and improve women-focused programs, trainings, mentoring, micro-financing in general business incubators rather than establish women business incubators (incubators only for women). One of the main reasons is that the networks of incubators and organizations should work to change the perception of women entrepreneurship step by step in the business environment outside the incubators to make it more favorable for women entrepreneurs. It is a long-term process and could succeed by widely promoting women entrepreneurs’ results and success and enlarging the pool of supporters and alleys appropriate networks and organizations and respected people. IDisc, regional InfoDev networks and the women working group can contribute a lot to that process. It is recommended enlarging and strengthening the network of women focus business incubators and organizations and key person through updating database, exchanging information and ideas and exchanging models, tools and good practices. The regional coordinator recommended motivating women business incubators managers and teams to develop concepts for encouraging high-educated women and women in academia and research to consider an entrepreneurial perspective In addition, it was suggested exploring opportunities for knowledge and technology transfer among women entrepreneurs and developing a global and/or regional mentoring system among women entrepreneurs and organizations. She recommended developing a communication plan for cooperation with media (on national, regional and international level) to promote findings, challenges good practice and positive results of women focus network. She recommended conducting deeper studies and analyzing: Laws and regulations with a gender analysis lenses and including gender issues in the training modules, Effective Governmental and International women entrepreneurship supporting programs and measures 47
as a basis for providing information and support for implementing policies that improved participation of women in economic processes and Effective business supporting models and good practices.
7.4. Latin America and Caribbean -LAC The main obstacle is the lack of public policies that promote female entrepreneurship and ensure support for small business development and the participation of women in the economy. Main problems for female entrepreneurs are: lack of confidence and self esteem, lack of support for family caregivers and the double and triple shifts that women have to perform caring about family, home, and business and limited involvement with / participation in education and training as well as access to financing. In addition to the obstacles faced by entrepreneurs in the SME sector in Latin America, women by their status as women face more difficulties in general (startup) Only few organizations promote women's entrepreneurship and there is insufficient support for the creation of such kind of organizations. It is recommended increasing activities for raising awareness about the potential of women entrepreneurship for economic development and ensuring greater participation of women in support programs, especially business incubation. Community should encourage this participation accompanied by programs of empowerment. The regional coordinator suggested improving the supply of services and facilities offered to women entrepreneurs and provide information and training to existing incubators enabling them to better serve the needs of women entrepreneurs and analyze the current models of community support and extend the range of support for childcare. The support of government-university-private sector linkages, initiatives and cooperation could generate more understanding and confidence and improve services at lowers costs for all parties. The link between incubation projects with local governments, which often have communal or development budget for programs for women can change the vision towards the training of entrepreneurs.
7.5. In Middle East and Northern Africa- MENA By law, in the majority of MENA countries, women have the right to do business. However, the society keeps women in their traditional roles in family as mothers and wives. Women rely on the support of men. Obstacles to women entrepreneurship in many MENA countries include inappropriate educational background, lack of role models, low social status, competing demands on time (family responsibilities) and limited access to finance. 48
It is recommended creating gender-based business incubators to facilitate the start-up of women owned businesses. Women business incubators could be particularly useful in dealing with challenges that women face with regard to mobility, networking and marketing in some MENA countries; Creating women’s business centers can serve as “one-stop shops” near house (or virtual) women business incubators for the young women, graduated from the university. This can serve as family barriers removal and is recommended for women who want to start or grow businesses. Implementing business development services: e.g. Women entrepreneurial trade fairs and trade missions and conducting a careful review and evaluation of the social impact of infrastructure could create a work/family environment that is conducive to men and women. An expansion in services that cater to women’s needs, such as a well-functioning childcare market, and increasingly elderly-care, would allow women, as well as men, to combine work and family responsibilities. These sectors are also growth sectors in many Western countries and can be potentially important sectors for job creation—certainly for women. Labor and investment laws and regulations need to be overhauled and realigned with the region’s new development model so that they create better incentives for job creation in the private sector.
49
General conclusion
The study has shown that there is not enough support for women entrepreneurs in the five regions because of cultural barriers and lack of knowledge of gender specific needs. Despite the differences among the regions, the general result of the Work Group activities clearly shows that women have more difficulties than men when starting or developing businesses. The women working group recommends ? ? ? Exploring the opportunity of creating gender-based business incubators to facilitate the start-up of women owned businesses in MENA and Africa. Better involving government in incubation activities to better inform decision makers for a policy change. Enlarging and strengthening the network of women focus business incubators and organizations through updating the database, exchanging information and ideas and exchanging effective business models, tools and good practices. Including gender issues in all modules of the InfoDev business incubation management training and introduce specific training programs for women entrepreneurs Developing a global and/or regional mentoring system among women entrepreneurs and organizations and train female mentors, advisors, trainers for a wider reach of such initiatives Intensifying the cooperation among the 5 InfoDev regional networks effective exchanges approaches, models and encouraging common initiatives (mentoring programs, women business incubator training) Develop a communication plan to disseminate the findings (challenges good practices, etc) Encouraging highly educated women and women in academia and research to be more entrepreneurial oriented. Explore opportunity for knowledge and technology transfer among women entrepreneurs and help establishing platforms for such an exchange Intensifying involvement of women organizations, banks and micro credit institutions to support incubation policy could help better promote the concept of women business incubation. Conducting deeper studies and analyzing: laws and regulations with a gender analysis lenses and including gender issues in the training modules in particular
? ?
?
? ? ? ?
?
50
?
Supporting the development of government-university-private sector linkages and cooperation to generate more understanding and confidence and improve services at lowers costs for all parties. Linking incubation projects with local governments, which often have communal or development budget for programs for women but change the vision towards the training of entrepreneurs.
?
The effort by all parties and individuals involved in generating new knowledge, experiences, and practices under this project should be continued as a platform for continuously improving cooperation and exchange. The findings of the project should also be published in respectable journals (and books) on entrepreneurship and business incubation to ensure the knowledge is disseminated and shared by promoters and stakeholders, around the globe
51
Annexes Annex 1: success stories The presentation of following success stories has been based on the “interview format” guide infoDev is using for preparing presentations on iDISC. However, following examples are not yet complete and need further work. The project team often experienced difficulties with getting the needed information for various reasons, such as ? Lack of understanding of the need to publish such stories for making the effects of incubation (and entrepreneurship at large) understood ? Limited readiness of entrepreneurs to invest the time needed for generating a success story ? Reluctance of entrepreneurs to disclose business data (for all kinds of reasons from cultural barriers to taxation issues). ? Success stories as published now do not directly support the enterprises with regard to their customers. Suggestions: ? To complete edit all stories and put them on iDISC ? To add tools / ways for additional local / national (language) dissemination of the success stories to better reach the environment of the respective enterprises ? Consider publication of a special booklet with women success stories ? Update / upgrade the Women Incubation site on iDISC!
1. Success stories in Africa 1.1. Senegal: Amy Diop, Mina production Description/Question Description of the Company Name of the Company: Mina production Main activity: Sewing and dyeing Employees: 4 employees and 5 apprentices Years in Business: 19 years Description of the Entrepreneurs Names of the owners: Aminata Diop and Astou Coulibaly Positions: Director and General Secretary Ages: 40 and 34 years old Education: high school 12th grade and 9th grade. Is this the first company that you have started, and what drove you towards it? Yes. I realized that we had the potential. We were trained in sewing and dyeing and wanted to be famous in the field of couture and dyeing. We wanted to create more jobs for the community. Dyeing is a traditional activity in the Saint Louis community and we wanted to value the local culture and tradition while creating new African design. "We realized that before the incubation, we operated in the dark, we were making money on a daily basis, but we have never operated as an organized business. Incubation helped us be visible through Internet, for the first time we have a free space on Internet where we are displaying our products." 52
1
2.
3
4.
5.
6. 7.
8.
9.
10.
How did you finance your start-up operations and how long did it take for the company to become self-sustainable? With support from family and friends, we bought a sewing machine and started our activities without a business plan. We started training dropout school girls in sewing and got some money that was reinvested. We used to sell their product to neighbors. Customers liked our products; in addition we were selling the local fabric pants to tourists as well as dyeing and selling table clothes and other home decoration items. What are your plans for self sustainability With support from family and friends, we bought a sewing machine and started our activities without a business plan. We started training dropout school girls in sewing and got some money that was reinvested. We used to sell their product to neighbors. Customers liked our products; in addition we were selling the local fabric pants to tourists as well as dyeing and selling table clothes and other home decoration items. What are your major products and services and how are they unique? What is your competition? The uniqueness of our products comes from design inspired by local culture and use of local fabrics. Our major products include clothes, home decoration, African masks, jewelers, and cultural artifacts, such as dolls, key holders, and so on. Our main competitors are the boutiques located downtown and others sellers in the “Village Artisanal”, and tailors that make-to-measure. China is also a competitor on the international level, as they produce local designs using mass production selling at low prices. How did you first launch the product? We launched our first product by making a direct marketing campaign towards hotels and tourists guides. We got support from family members and friends, for example our sisters and aunts assisted in the production. How do you measure the success of the company? Yearly income has gone from 200 USD in 1989 to 11,212 USD 2007. Furthermore, we have participated in 2 international trade fairs and 10 local trade fairs. Who are your clients and how many do you have? How are you focusing on expanding your user community? Our clients are tourists from western countries who visit Saint Louis, such as France, USA, Spain, Japan, etc. as well as local customers, such as hotels and individuals. We serve about ten hotels, 100 tourists annually, and about 700 local customers annually. We started documenting this when we entered the incubator. Are you planning to patent your product and do you see any obstacles in doing so? In the field of sewing, patenting is not an issue. Competitors tend to copy others' creations and the legal environment is not severe for copying. The main difficulty might be the cost of the patent. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? Access to finance and equipment was and still is still our big issue. The problem is not yet overcome. That is why we are participating to the incubation program. How have you benefited from business incubation? First of all we have benefited through training in management, accounting, marketing, computer software, and the Internet. We realized that before the incubation, we operated in the dark, we were making money on a daily basis, but we have never operated as an organized business. Incubation helped us be visible through Internet, for the first time we have a free space on Internet where we are displaying our products. 53
11.
12.
13.
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Coaching has also been important. The incubator organized weekly coaching sessions, to discuss the issues and difficulties that we faced in managing our business. Finally, access to office space and modern office equipment was also something crucial that the business incubator offers. Now in addition to the workshop, which is the shop, we have an office where we do our administrative and accounting work. Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? The incubator is an eye opener for us. It has helped us understand the principals of business management. We learnt that we cannot operate a business without documentation. Management and accounting courses in addition to the computer training have helped us bridge the gap. None of us learned management and accounting before integrating the incubator, with Microsoft excel, we are able to do our accounting, we have a daily log and the software helps facilitate calculations. Incubation has stimulated the desire to learn more and be in contact with the international market: Astou is learning French to increase her communication skills, and Aminata is learning English online. Incubation has also widened our horizons. Globalization and international markets have a meaning for us. We learn that we can have access to those markets if they know our product and if we learn how to reach those markets. Incubation can really make a difference for the informal sector. We cannot do good business, and have access to funds and equipment if we are not able to document transactions and present a sound business plan. Formal registration will allow doing business with international firms. Do you plan to internationalize your product and if so, how? Yes. So far, we have a free Internet space, where we display our product. NCNW is helping to target the international market. The managing Director participated to the market readiness training Program and presented our products. We got positive feedback that we included in our production process. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? Setting and writing down a business plan should a first step. It helps clarify objectives, strategies and the segment of the market you want to reach. You should also have computer skills. It is an essential tool, if we want to compete in the global and local markets. Having proper management techniques and tools is also very important. Every transaction needs to be documented. Do you feel that you had the necessary advisory and support network when you started your company? Yes. So far, we have a free Internet space, where we display our product. NCNW is helping to target the international market. The managing Director participated to the market readiness training Program and presented our products. We got positive feedback that we included in our production process. What is your message to funders/supporters and what is your message to the users of your product? Our message to funders is that incubation is a powerful tool to help entrepreneurs that don’t have the required skills and they need to create more incubators, especially in developing countries, where access to education is low. To our supporters and users of the products we would like to say that buying from us is valuing the local culture and helping us to develop community pride. 54
1.2 Nigeria: Eatcetera NO DESCRIPTION/QUESTION Description of the Company Name of Company: EATCETERA NIG LTD, Director: Mrs. Yemisi Obe. Registration: For Agro Allied Processing. Founding Year: 2000 in Lagos Nigeria. Number of Employees: 20 Is this the first company that you have started, and what drove you towards it? Yes. My husband, graduates, experts in various fields. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? Personal savings and it took me 2years to become self sustaining. What are your plans for self sustainability? No corresponding response. What are your major products and services and how are they unique? What is your competition? I am into agro allied products, like biscuits, short bread, flour cookies etc competitors are big companies like Cadbury. 5-How did you first launch the product? Direct selling and house to house advert. How do you measure the success of the company? Today, we have distributors in 22 states. Who are your clients and how many do you have? How are you focusing on expanding your user community? My customers are everywhere, children, schools communities’ offices etc. We focused by using agents, distributors in all communities. Are you planning to patent your product and do you see any obstacles in doing so? I have stated the process, just bureaucratic delays. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? Challenge is acceptance of the product, and as a woman I need extra effort. How have you benefited from business incubation? Very immensely, they gave me space, soft loan, trade fairs, exhibitions, marketing awareness and Government protection. Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? Oh yes, firstly I lack information, you know information is power. Also linkages, networking are very important I missed all this before. 55
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Do you plan to internationalize your product and if so, how? First through networking with the African incubation network I can get my product to the market. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? A lot like training and continuous training will give me confidence and exposure. Do you feel that you had the necessary advisory and support network when you started your company? No, but now it is better. What is your message to funders/supporters and what is your message to the users of your product? They will continue to get improve innovative product, and my supporters, we will not disappoint them, we must continue to be innovative.
2. Success stories in Asia 2.1. NO China/tianjin shengmiluo DESCRIPTION/QUESTION Description of the Company Name of the Company: Tianjin Shengmiluo Trade Company Main activity: Crafts and Gifts Employees: 8 employees Years in Business: 5 years Is this the first company that you have started, and what drove you towards it? This is the second company I have started. My first company dealt with indoor decorative clocks and glass jewelry. Because of lack of experience and shortage of funds, I had to give up. In 2006, I went to the Tianjin Women's Business Incubator (TWBI) and the staff there gave me some specific guidance. When I was operating my craft business, I found that traditional Chinese arts and crafts are more and more preferred by people. I planned to work on a business of Chinese clay sculpture souvenirs. I talked about my idea with the head of the Center and the Enterprise Development Department. They gave me strong support. They believed that the clay sculpture handicrafts with national culture would be the favorites of Chinese and foreign tourists, especially during the time of 2008 Beijing Olympic Games. The potential of the market was great. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? When I first started my business, I was self-financed. I received a small enterprise loan (30,000RMB) from Tianjin Women's Federation. I also borrowed some money from my friends. After the training courses in the center, I began to use e-commerce. At present, I have bought the best advertisement position on the Alibaba website and an advertisement in the Sixth China Beijing International Gifts Exhibitors. I expect after 1-1.5 years, my company will be self-sustainable. What are your plans for self sustainability? No corresponding response. What are your major products and services and how are they unique? What is your competition? My business is focused on the chain operation of craft design, production, and sales. I 56
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also sell the local craft products with top brands such as Tianjin clay figurines of Zhang crafts, Yangliujing cultural paintings, Yangliuqing cutouts, and hand-painted pure arts. I also introduce new products according to the demand of market and customers’ needs. I have years of experience in operating crafts, and we also have our own factories and professional partners. Before I started our business, the TWBI led me to visit the Academy of Fine Arts and communicated with the experts to enhance our innovation and creativity on clay design and production. I believe that the quality of the product is the soul of an enterprise. I try my best to be sincere to our customers. I also believe that a professional team of staff is the wealth of enterprises. Good team work lead to success in the competitive market. 5-How did you first launch the product? No corresponding response. How do you measure the success of the company? No corresponding response. Who are your clients and how many do you have? How are you focusing on expanding your user community? My current customers are overseas Chinese, foreign customers, merchants who love Chinese culture and arts, and national crafts enthusiasts. We will also provide gift customization services for different businesses and government agents and departments which have ceremonies, conferences, or festivals. Are you planning to patent your product and do you see any obstacles in doing so? I have no plan to patent our product yet. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? For a small enterprise, financing is the bottleneck for future development. My company received the help of a 30,000 RMB small business loan. How have you benefited from business incubation? The courses offered by TWBI helped me understand the Internet’s function in terms of doing business. Through the Internet, I do my procurement, marketing, and sales. It expands the enterprise's reputation, and saves cost. I have used Alibaba B2B platform’s functions of intellectual members, products bids, and gold showroom advertising. I also reach out for other internet websites such as Taobao, China product platform, Huicong Network, and the Chinese Arts & Crafts network to make my products have the most market share. TWBI also supports me with free e-commerce store on its business web site, Tianjin E-Shopping Mall. No matter what problem I have about financing, operating or management, the TWBI is always there and has helped me to overcome challenges. When the government has new beneficiary policies and regulations, TWBI arranges for its clients to learn and discuss the new content so as to enhance our awareness of various concepts. I really feel at home with TWBI. Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? I was originally a technical worker who had no idea about running business. After my experience over the past several years, I would suggest people who want to s et up their own business make plan first, be good at learning and absorbing the successful experiences of others. I want to tell them do not say give up easily. It will be successful at the end. 57
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Do you plan to internationalize your product and if so, how? Yes, I do. I have thought about doing this by first of all establishing my own brand, and registering the trademark to protect my intellectual property right. Then I want to place emphasis on the cultural significance of my products. I will advertise my products through my existing networks and actively participate in all relevant exhibitions to promote my products to new networks. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? No corresponding response. Do you feel that you had the necessary advisory and support network when you started your company? No corresponding response. What is your message to funders/supporters and what is your message to the users of your product? No corresponding response. 3. Success stories ECA
3.1 Poland: Creativemedia NO DESCRIPTION/QUESTION Description of the Company Name of Company:CreativeMedia . Address of company: Ul. Rubie? 46/C4/8161-612 Pozna? Website: www.creativemedia.com.pl Industry sector: Education and training Year the enterprise was founded: 2005 Number of employees - when enterprise was founded: 1 - and at date of the interview: 6 CreativeMedia aims to collect stories with a personal touch that help the reader understand how incubation has been useful for the entrepreneur, and how the entrepreneur has harnessed the opportunities of incubation. This is a great way to share good practices and tell your story to the world! Incubator: Pozna? Science and Technology Park Adam Mickiewicz University Foundation Director of Pozna? Science and Technology Park Prof Bogdan Marciniec Is this the first company that you have started, and what drove you towards it? This is my first company. I always wanted to be on my own and I wanted to teach people, to guide them. I’m an independent woman. The direct impulse to start running my own business was a competition “Idea for business 2005” proclaimed by Poznan’s Park of Technology. I gained second place and 3 000zl price and an office to rent. That’s how it started. First it was only me, than I begun to employ 1 person. Now it’s two employees and 58
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three trainees. I’m the only owner of the company. There are no shareholders. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? I gained money from the prize. I become independent from the very beginning. Now, the revenue is about 500 000zl per year. What are your plans for self sustainability? No corresponding response. What are your major products and services and how are they unique? What is your competition? We are a (business) training company. Our trainings are based on unique materials and plans. My company also organizes business’ breakfasts, which help other young entrepreneurs develop their business contacts/ contact network. 5-How did you first launch the product? No corresponding response. How do you measure the success of the company? Simple – by the number of happy clients – and there are more and more of them. Who are your clients and how many do you have? How are you focusing on expanding your user community? My clients are mostly big companies but also individual businessman. I have three big clients and a couple of smaller ones. Are you planning to patent your product and do you see any obstacles in doing so? I’m at point of patenting one of my products but it takes too much time – even five years. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? To convince others that it will work out How have you benefited from business incubation? Incubation is very helpful for young entrepreneurs. PPNT offers help/consultations of solicitor, accountant. It also has preferential rent. Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? No corresponding response. Do you plan to internationalize your product and if so, how? For now I don’t plan to enlarge or internationalize my company. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? No corresponding response. Do you feel that you had the necessary advisory and support network when you started your company? I had to learn many things on my own but the PPNT was also very helpful. What is your message to funders/supporters and what is your message to the users of your product? If you want a lot, you can gain even more. 59
3.2 Turkey: Zukal Ucaroglu No DESCRIPTION/QUESTION Description of the Company Entrepreneur Name: Zuhal Uçaro?lu. Start-up turnover: 0 TL (October 2008) Current turnover: 10610 TL (June 2009). Number of employees : 0 (Zuhal Uçaro?lu is working as an owner-manager) Address: K??GEM Tav?anl? Yol? 3. Km Teda? ambar? yan? KÜTAHYA Tel: 90 274 231 17 74 e-mail: [email protected] Is this the first company that you have started, and what drove you towards it? Yes, I am an entrepreneur with the women's business development center which is located at the Kütahya Province, and I am engaged in tile (Çini) art. I have been engaged in this art for nineteen years so far. I first met with this art by my husband, Abdülkadir Uçaro?lu. When we got married, my husband was occupied with a government institution as a finance chief, as well as engaged in çini art at a private firm named ?znik Çini, which was founded by him and his three other friends. My husband occasionally brought his art works to home. I was aware of my inclination towards handicraft and began simple çini paintings secretly at home. After a while this art grow on me as a passion. However, I always been an amateur and have self effaced. Then, ?znik Çini went out of business because shareholders established their own workshops. Then my husband decided to establish a new tile (çini) firm with another friend of his. Because legally my husband could not be a partner in a new firm due to his governmental occupation, he asked from me to be a partner and manager. As a high school graduate I only recognized hospitals and post offices as governmental organizations until that time. Suddenly I met with ministry of finance, the chamber we are connected to, accountant, et cetera. At first I was panicked. My husband told me to not panic because I was only a partner and manager on legal documentation and all I had to do was to sign some official documents. However it did not developed as simple as he suggested. Because he had to work on day time I had to deal with all official work and with running the business. I was suddenly in the middle of the business and began learning it in the art and part. But I did not have a strong background. I owned the business; however I was yet an apprentice in fact. After this point, since me and my spouse got things in their way, my husband decided that we would be better off concentrating on our art and resigned from his job at the government office. However things got worse, after the famous January 24 economic measures taken by the government, many small businesses like us, which owed to creditors in foreign currency, went bankrupt. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? We established our company during the global crisis which began in the USA and Europe, we were operating with a rather slow pace and our firm did not owned much capital. I can say that we were crawling. Recently we rented an additional workshop. We are planning to purchase our own oven. Immediately after this, we are planning to de60
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velop our infrastructure workshop and develop our research and development department. When we were in ?znik Training & Education Foundation, we produced miniature art works for Istanbul Subway, THY (Turkish Air Lines) Sabiha Gökçen Airport, Ashgabat and Tokio Mosques, Ritz Carlton, St. Benoit list, Expo 98 Map of Piri Reis, Expo 2000 Hannover, Pizza Hut, Coca Cola, the Competition Board, World Bank, Industrial Development Bank, The Paris miniature ordered by Mr. President Süleyman Demirel as a gift to France President Mr. J. Chirack. What are your plans for self sustainability? While we were working on above listed projects, we also learned a notion of architecture. Because we had the opportunity to work with architect Hassan M. Hilmi ?enalp, calligrapher Hüseyin Kutlu, frescoer architect Semih ?rte?, interior architects and miniature master nusret Çolpan deceased, and ceramics artist Defne Koz. When my husband retired, we left the Foundation and we opened a new place. Even after leaving the Foundation and we did not have any equipment, we made projects for Ankara Aksa Mosque, The Berlin Fallen Mosque, Canon Jeans Firm’s office design, and some several designs for restaurants at Istanbul and ?znik together with the above mentioned our reference professionals. Once we established our company, we made projects for our municipality’s building for Gülten Day?o?lu Public Library, a courthouse building which is planned to be a museum in the future, a wedding hall, and for the Kent Park, which is built for embellishing our city. We made a proposal to the Hilton Hotel which had been built in our City. Meanwhile, we made proposals to other city municipalities also. Konya and Kayseri municipalities were interested in our proposals. For example, the Kayseri Municipality ordered projects for underpass buildings. We are also working on projects for Mr. Ba?aran Ulusoy’s otel building at Istanbul and a cafe named “Karakol”. What are your major products and services and how are they unique? What is your competition? My first product was a 16th century ?znik style tile plate. Our Firm’s first product was an art work reflecting Seljuk style and involved some several Turkish handicrafts like miniature works and calligraphy. How did you first launch the product? We began with producing CDs and books especially for civic education: Road safety, environment, health. After that we won national and international tenders for developing large programs with World bank etc. that showed our know how in certain fields like specific needs. We established also many partnerships with either Europeans or Canadian companies, so we benefit from a large know how transfer and we began producing many developments for their markets. How do you measure the success of the company? I think success is a relative concept. If success is measured by the job done; I made vases and plates that I cannot remember the quantity of and I dealt with square meters by the architectural work. Else if it is the quality, I am qualified enough. I think the success is creating a style and being preferred in the industry you operate in. I mentioned above that even after leaving the Foundation and we did not have required equipment, we made projects for Ankara Aksa Mosque, Berlin ?ehitleri Mosque, Canon Jeans Firm’s office design, and some several designs for restaurants at Istanbul and ?znik together with the above mentioned our reference professionals. In fact, writing those words is also a success for me. Because, I promised to myself when I joined to the project and listened to a successful business woman in Eski?ehir that I will be like her 61
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and tell my success story in the future. However the way before me is difficult and exhausting. That is why I believe that I have many things to learn already. I set new goals for myself and now it is time to achieve those new goals. Who are your clients and how many do you have? How are you focusing on expanding your user community? My customers are public institutions and artist architects that concentrate on arts on buildings. We participate in art expositions to expand our customer portfolio. Are you planning to patent your product and do you see any obstacles in doing so? Because we do not engage in mass production it is difficult to acquire patent. However, we can acquire brand mark patent or maybe industrial design registration certificate. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? My biggest obstacle was my lack of funding and knowledge. To overcome these obstacles I believed in myself and in my job. I tried to express myself rightly to my supporters and customers. Therefore, I showed maximum effort to complete required training and education. How have you benefited from business incubation? I benefited by rightly expressing my demands and following things the administration have done. Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? We, women would never be on the paper, fake owners of businesses that our fathers and brothers would not be official owners for any possible reason. Because, if this is the case, customers do not take you seriously. That is to say, we either should manage businesses we are alleged to own and train ourselves well. Do you plan to internationalize your product and if so, how? Art is a universal concept. Our industry is closely related to arts. What makes our products international is our efforts for providing different projects regarding design and practice and accounting for every architectural aspects (location, classical and modern lines of the internal architecture) of buildings, accounting for customers’ preferences and expectations, and adding our own style. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? After establishing our firm, I understood the importance of trainings offered about brand marking, computer literacy, foreign trade, and accounting. Now I would run my business in my own terms. Because without above mentioned knowledge, it is impossible to be preferred neither in the domestic market nor in the foreign market. Do you feel that you had the necessary advisory and support network when you started your company? After I applied to Ki?gem (Kütahya Women's Business Development Center), I felt that I can acquire support and consultancy from a network. Because, we had a right communication with a transparent administration. What is your message to funders/supporters and what is your message to the users of your product? We communicate to our customers that we will provide our design considering their special preferences and expectations, and architectural criteria. I communicate to our supporters that the customer satisfaction will yield positive feedback to them also 62
4. Success stories in LAC 4.1 Costa Rica: CETRATEC ALFA No DESCRIPTION/QUESTION Description of the Company Name of the Company: Cetratec Alfa Main activity: development of pharmaceutical formulations chemical analysis and biological, Quality assurance and good practice. Employees: person team of ten people Years in Business: two years Description of the Entrepreneurs(s) Names of the owners
octors Juliana Redondo Positions: Director and Founder Doctors Juanita Blanco and Gabriela Zavaleta owners and founder partners Education: pharmaceutical physicians Is this the first company that you have started, and what drove you towards it? We decided to start the business precisely at the time it wanted to close a corporation that had, Dr. Blanco proposed launching an analytical center since determined that there was a need in the pharmaceutical sector companies engaged in the studies that we did. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? Dr. Redondo round saw an ad in the paper on the national entrepreneurs, decided to participate two days for failing to present the business idea. We sent the draft and won the contest in November 2005 but started operations at the facilities of up to CIE_TEC since October 2006 and had to first seek funding to develop the complete business plan. What are your plans for self sustainability? In the beginning was not easy we need 6 to 7 months in search of funding for equipment, they could not buy used equipment in the field because of medicines or food requires a high degree of certainty in the determinations. What are your major products and services and how are they unique? What is your competition? The main services are stability studies for more than 36 medicines, the development of more than 25 new pharmaceutical formulations. The company characterized as successful differentiation is supported under three criteria: - reliability - delivery time - personalized service How did you first launch the product? It was difficult at first because I started to get more customers and they had to do the studies, some clients were relegated to cope with work. How do you measure the success of the company? Success is the distinction, winning the contest for entrepreneurs and getting major contracts that let them pay for the equipment we have now said the stone round. Alfa Cetratec is positioned in the Costa Rican market as one of the most successful compa631.
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nies. Another success factor has been the team with which he now has experience in different fields of pharmaceutical. Who are your clients and how many do you have? How are you focusing on expanding your user community? Our clients are the pharmaceutical industry, veterinary and cosmetics and institutions. The company is flexible in delivery times, many details to take care of reliable data from the training of personnel to the proper maintenance of equipment Are you planning to patent your product and do you see any obstacles in doing so? No response. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? Lending Make a business plan Beginning to address the technical side and not able to give attention to all customers How have you benefited from business incubation? 1-Win the National Entrepreneurship organized by the incubator. 2-The physical space. 3-Technical-administrative tools support Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? Start of something that is known, study the market. Do you plan to internationalize your product and if so, how? Cetratec Alpha is a company with great potential at both the national and Central American and Caribbean, as it has knowledge, experience and love what we do; besides they are in a market growing each year. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? My advice would be to start something that you know, being a fighter, his motivation is not money to get it because while there comes a long way to go and many rocks in the crossing. Do you feel that you had the necessary advisory and support network when you started your company? No response. What is your message to funders/supporters and what is your message to the users of your product? The information was taken from a short interview and I received the information to build the database as close as possible to the guide suggested, information taken for the answers were chosen within the framework of the language and also because I believe business.
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4.2. Brazil: PV INOVA No DESCRIPTION/QUESTIONS/RESPONSES Overview and Description of the Company PV Inova has defined as its mission to improve the quality of people’s lives through the innovative use of technology within public transportation settings. PV Inova’s main objective is to make the time passengers spend on public transportation productive and enjoyable by developing and commercializing new products and services that are specially adapted for these means of transportation. Its first product, TÉLO, was patented as the very first public telephone developed especially for use in public transportation vehicles. The company is now developing its second product, the TVPV, the first vehicular public digital television. Is this the first company that you have started, and what drove you towards it? Yes, this is my first company. Probably what drove me so passionately into this business was the fact that it was completely in tandem with my career in Development and what I had assimilated at business school. Starting a BoP (base of the pyramid) company in my native country was the most challenging and impacting thing I could do after spending years in development banks and earning a business degree. We are three executive partners. Paulo Lerner, the Director of Technology, is an Engineer and has a background in innovation, having started other companies before. Leonardo Sampaio, the Director of Marketing, joined us after his MSc in Media and Communications at the London School of Economics. He also holds an MBA and had worked at big media and telecommunication firms in Brazil and abroad. I am responsible for Planning and Finance and my background is in Economics (BA and MSc) and Business (MBA). ADDITIONAL QUESTIONS: Why did you decide to pursue a business model that is based on the Base of the Pyramid strategy? Over the years, I realized that one of the best channels to promote economic development and prosperity is through entrepreneurship and innovation. A BoP business was a natural path for me because I was always attracted by the “do-good-and-do-well” concept. The opportunity to start a business with a strong potential for digital inclusion, positive social-economic impact and profit was all I needed to launch myself into this BoP endeavor. You have patented your product line, is this a niche market you are entering or do you feel that you are faced with much (direct or indirect) competition? This is definitely a niche market that we have created – exploring idle time on public transportation in a systematic manner. However, we are aware that competition will come sooner or later and we have two strategies to deal with that: being quick and efficient in occupying the best spots in the market and protecting our intellectual property. When did PV Inova begin operations and how did you develop the idea with your colleagues? PV Inova was founded in August 2004, during the second year of my MBA. The idea for TÉLO, our first product, emerged during conversations with my partner, Paulo Lerner, who at the time was attending grad school in engineering, in Rio de Janeiro, Brazil. He came up with the idea of a public phone especially adapted for public transportation ve65
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hicles and we began to develop this idea into an actual business. What is the background of your colleagues in the company? We are three executive partners. Paulo Lerner, the Director of Technology, is an Engineer and has a background in innovation, having started other companies before. Leonardo Sampaio, the Director of Marketing, joined us after his MSc in Media and Communications at the London School of Economics. He also holds an MBA and had worked at big media and telecommunication firms in Brazil and abroad. I am responsible for Planning and Finance and my background is in Economics (BA and MSc) and Business (MBA). Who are the other shareholders in your company, in addition to your executive partners? We have as minority shareholders one angel investor, seven members of an investment club, and a small investment firm. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? Our first round of financing was by an angel-investor, who provided capital and knowhow to the business. We later structured two more equity and two debt rounds and recently earned a grant from the Brazilian government. Because full commercialization will only start in January 2008, we are still on our way to becoming self-sustainable. ADDITIONAL QUESTIONS: Does the Brazilian government financially support your work given its broader social mission? We have earned a grant from FINEP, a government agency that supports R&D and entrepreneurship, and got financing from FINAME, one of the lending arms of BNDES, the Brazilian Development Bank. In Chile, we earned a grant from CORFO, another government agency, to start exploring the Chilean market along with local entrepreneurs. What are your plans for self sustainability? The future of the product is not limited to making telephone calls alone – what else can you spin off from this technology? TÉLO is much more than simply a telephone. First, as an added feature, it has a GPS module (Global Positioning System) which can be used to track the vehicles. Such a monitoring and tracking system benefits (I) bus companies, by providing more control over their fleets; (ii) passengers, who will have information on where their desired vehicle can be found, minimizing waiting times at bus stops; and (iii) public authorities, by gaining more control over public transportation quality in their cities. Other additional services such as electronic ticketing and internal security cameras may also benefit from the TÉLO system for data and image transmission to their respective information management centers. Finally, the incorporation of new technologies, such as 3G, VoIP and Bluetooth are also in the pipeline for TÉLO. What are your major products and services and how are they unique? What is your competition? How much cheaper is it to use your phone versus a cell phone? TÉLO is cheaper than pre-paid (pay-as-you-go) cell phones, which are dominant in developing countries (in some countries up to 94% of total phones), and its rates are equivalent to those of street public phones. How did you first launch the product? TÉLO was soft-launched in February 2007 in the city of Porto Alegre, Brazil; in association with Brazil Telecom and bus company Carries. It was later launched in Rio de Janeiro, in association with Metrô Rio, during the Pan-American Games (Rio 2007). 66
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How do you measure the success of the company? No corresponding response. Who are your clients and how many do you have? How are you focusing on expanding your user community? No corresponding response. Are you planning to patent your product and do you see any obstacles in doing so? No corresponding response. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? Overall, our biggest challenge was dealing with the lack of entrepreneurial culture that is still present in Brazil, as in many other developing countries. Being approached by two young entrepreneurs with an innovative business idea was such a novelty for most companies and investors that in most cases the reaction was something like, “Great idea! But come back to me in a couple of years, once the concept has been proven; I’m not willing to take that kind of risk.” This risk-averseness was particularly acute a couple of years ago, when the combination of high interest rates and a booming stock market naturally increased the opportunity cost of venture capital.
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5. Success stories MENA 5.1. No Syria: AL-WARDGHAN DESCRIPTION/QUESTION Description of the Company Name of Business: Al Wardghan Private Address: Basta village, Ain Al-Tineh, Lattakia, Syria Business Sector: Services - making coverlets, pillows, table covers, dolls and clothes of dolls Business format: Partnership, the partners are five rural women: Sana Hasan, Afaf Dayoub, Laila Humdan, Amneh Muhamad, Norma Baloul. Sana, Amneh, Norma, Laila and Afaf, and Norma are four talented rural women, from neighbored Villages, who are committed to revive the elegance of «al Wardghan» in their collection of artistic bed linen, cushions, dolls and table runners. Their linen collection is inspired by Ugarit alphabet. Everyday Sana and Afaf disclose their creativity in their workshop in the company of Sana's little girls who observe their mother's work in fascination while listening to the fairytale of «Wardghan». URL:www.vbi-attakia.org\english\supported_entrepreneurs\handicraft\wardghan.html Is this the first company that you have started, and what drove you towards it? Yes, this is our first business. Sana learned tailoring 6 years ago, but she kept the skill to sewing clothes for her own and her children’s use. Sometimes she made some pieces for the people of her village on her old sewing machine. She wanted to improve her skills and so did laila, and the rest of the group. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? In the beginning we were working on an old sewing machine that belonged to Sanaa, and we used our personal savings to buy the fabric and accessories needed, but after we got deeply into work and we started to receive orders we decided to get a loan and buy new machines that are more suitable for the textile work. With the help of the Village Business Incubator we prepared a business plan and submit the loan application to FIRDOS that works under the umbrella of the "Syria Trust for Development". What are your plans for self sustainability? No corresponding response. What are your major products and services and how are they unique? What is your competition? Our major products are a collection of artistic bed linen, cushions, dolls and table runners We focused on quality products as we have been taught by the VBI and the uniqueness of our design and the high quality fabric made our products worthy of sold in Damascus market, aiming at a particular client group which is foreigners visiting or living in Syria. No other business is using the Ugarit Alphabet in its designs. How did you first launch the product? Actually, the VBI is behind our working as a group, three of us received loans from FIRDOS/The Syria Trust for Development and bought new machines and the other two contributed with personal savings. The VBI provided us with technical training related to design and creative, conducted by Ms. Martine Cieutat, an international artist famous 68
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for her stunning interpretation of the colors and atmospheres of Syria in her textile works. Ms. Iman Abrash, Martine's trusted assistant has provided us with continuous support and we are now developing new, amazing designs on our own inspired by the old civilizations of Syria. How do you measure the success of the company? We consider our business a success, and we measure our success by our sales and the orders we receive from different potential clients. Who are your clients and how many do you have? How are you focusing on expanding your user community? Our clients are mainly the foreigners visiting or staying in Syria. We also contacted the Four Seasons Hotel and received a number of orders from them as they are using our products in their rooms. In addition we participate in exhibitions organized by the Village Business Incubator and other organizations. The VBI have also found new marketing channels for us; for example, Mr. Samer Kozah, owner of Kozah Gallery in Old Damascus and a famous jewelry designer in Damascus, who is now displaying our products in his gallery. Mr. Kozah’s clients are tourists who appreciate Syrian fine handicrafts and have the purchasing power to afford a high quality product. We also display our products in the VBI outlets in Salah El-Din Castle, and the Theatre in Palyerma city. Are you planning to patent your product and do you see any obstacles in doing so? No corresponding response. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? It was not a familiar concept for the rural women to work in groups or in partnerships, because they don’t own the team work skills. Also, since the target clients are foreign people, it was difficult for us to communicate with them, but with the continuous training provided by the VBI team, and their direct support we managed to overcome these problems. Furthermore, the designs were a little bit strange for the local taste; therefore, we had to target markets in Damascus and the nearby Salah Al-Din castle to overcome this problem. How have you benefited from business incubation? The Village Business Incubator supported us to receive financial assistance through FIRDOS loans. It also provided us with a market study, a business plan, managerial and technical training, promotional materials and marketing channels. Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? No corresponding response. Do you plan to internationalize your product and if so, how? No corresponding response. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? Business make women independent and working in groups make them more organized even at the household level. We highly appreciate teamwork. Do you feel that you had the necessary advisory and support network when you started your company? Actually if it were not for the advisory and support network that we received from the 69
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VBI we wouldn’t have been able to have our business, because our products are something that wouldn’t have initiated without external support, particularly, technical and marketing. What is your message to funders/supporters and what is your message to the users of your product? We wish for our experience to be passed to others because rural women have a genuine potential for productivity and teamwork. 5.2. Syria: KHATOUN DESCRIPTION/QUESTION Description of the Company Name of Business: Khatoun Private Address: “Al Hajar” Village, Lattakia, Syria Name of Owner: Madina Younes Rajab Business sector: micro scale –food processing (producing medical herbs and natural cosmetics) Business format: Sole Trader Natural treatments are part of the cultural endowment of the people living in the Coastal area of Syria; a knowledge that passed on from generation to generation and still represents the preferred remedy for many diseases. Also, medical herbs represent the secret of beauty for many women living in the area. My URL: www.vbilattakia.org\english\supported_entrepreneurs\handicraft\khatoun.html Is this the first company that you have started, and what drove you towards it? Yes it is my first business; I live in a very beautiful village of the coastal area of Syria, very close to one of the famous castles in Syria, Salah al Din Castle. Old manuscripts by Salah al Din's father evidenced how relevant herbal treatments were at that time, and how much people were knowledgeable about the use of natural remedies. This explains why the wild areas surrounding the famous castle are so rich in medical herbs and plants: some of them were used to poison the enemies and others were used to treat the soldiers' wounds. This is why I have decided to establish "Khatoun": a medical herbs business producing natural beauty products, herbal extracts and dried herbs. The inspiration for this business idea came from the wife of Salah al Din, "Khatoun" and her legendary beauty. How did you finance your start-up operations and how long did it take for the company to become self-sustainable? Al Hajar village is rich with plants that are considered as the treasure of Syria. The raw materials are almost available in the nature; therefore I used my personal saving in addition to the help of my husband who offered me the money needed to buy the equipment. Moreover, with the loan I received from the Syrian Fund for Agriculture facilitated by the Village Business Incubator, I prepared the hygienic workplace. What are your plans for self sustainability? No corresponding response. What are your major products and services and how are they unique? What is your competition? 70
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My products are Medical herbs, natural perfume, medical and cosmetic creams, oil, Tea herbs (Zohourat). The uniqueness of my products derived from the fact the production process I follow depends mainly on the nature around, starting from picking the plants until they are ready to use, no chemicals is introduced whatsoever. All plants are organic, and the compositions of the products are 100% natural, that's why I have good position between local and foreign competitors who are adding preservative materials to their products. Our major products are a collection of artistic bed linen, cushions, dolls and table runners We focused on quality products as we have been taught by the VBI and the uniqueness of our design and the high quality fabric made our products worthy of sold in Damascus market, aiming at a particular client group which is foreigners visiting or living in Syria. No other business is using the Ugarit Alphabet in its designs. How did you first launch the product? The market in Lattakia is rediscovering the importance of the natural products and it use in terms of medical treatments, that is why potential clients were glad to find products that meet their demand. In the beginning I started within the village, selling to relatives and friends, and then I decided to broaden my scale outside the village through participating in a small market in Lattakia named "Village Market", organized by "The Environment Friends Association". The village market customers were the people who are looking for organic food. How do you measure the success of the company? I believe that achieved what I have always wanted. Through products diversity, demand has increased and consequently income. No I have my own customers who trust me. Who are your clients and how many do you have? How are you focusing on expanding your user community? My clients are the women who are looking for the natural cosmetics in my village and the village surrounding, people attended the village market and people who value therapeutic proprieties of the natural herbs. The most important thing I’m currently working on is to register my business in the handicraft union which will help me market my products in pharmacies and big shops in the city. Are you planning to patent your product and do you see any obstacles in doing so? No corresponding response. What was the biggest challenge in starting an innovative business in your country and how did you overcome that? Since my products are related to the health, the only challenge I faced in the beginning was to gain people's trust. But by the promotion and the professional training I had from the VBI, and the respectable reputation I obtained from being affiliated to it, I easily managed to overcome such challenge. How have you benefited from business incubation? Upon completion of the basic managerial training at the Village Business Incubator (VBI), they provided me with an intensive technical training conducted by one of the most reputed experts in herbal treatments in Lattakia city. This training was like a bless for me, it provided me with exciting ideas about new types of products such as beauty creams, natural extracts, perfumes and distillates. Gradually, I got a very deep insight 71
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into herbal treatment; I learnt how to recognize wild plants and how to collect them in a way not to damage the environment, neither endangers rare species. I learnt how to process them as well as the drying and packaging techniques. Indeed, this training strengthened my already existing knowledge gained during my childhood. The Village Business Incubator market studies as well as the specific feasibility study conducted for my enterprise supported tremendously, and the web site and the exhibitions were a great promotion for my products Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs? No corresponding response. Do you plan to internationalize your product and if so, how? No corresponding response. With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company? Now I realized the importance of the communication skills, and the art of dealing with people which are essential for the work. Furthermore, I believe in the importance of work for every woman in Syria, especially the rural women, who missed their opportunities in the labour market for a long time. Do you feel that you had the necessary advisory and support network when you started your company? I had and am still having more than I needed of support network and advice from the Village Business Incubator (VBI). The training, business counseling, marketing opportunities and promotion provided by the VBI have exceeded my expectation. What is your message to funders/supporters and what is your message to the users of your product? I would like to invite the donors and others to support the rural women with the potential energy. I would also like to invite my customers to contact me for a visit in my wonderful village, and I would welcome their feedback.
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Source:http://www.vbi-lattakia.org/). Source:http://www.idisc.net/en/Incubator.160.html
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Annex 2: Participating countries and institutions Table 1: Participating countries and institutions in Africa Country Angola Gambia Guinea Guinea Niger Nigeria Nigeria Senegal Senegal Senegal Senegal Senegal Senegal South Africa Tanzania Name of the Institution Business Incubator Chamber of Commerce Industry and Agriculture du Niger Assia – Guinea Réseau des Femmes du Fleuve Mano pour la Paix Chamber of Commerce Industry and Agriculture of Niger AJA Fantsuam Foundation CAEF CIDEF GTZ Ministry of Women Entrepreneurship Ministry of Women Entrepreneurship Union des femmes Chefs d’entreprises Maxum Business Incubator at The Innovation Hub University of Dar Es Salaam Entrepreneurship Centre Nature Government/ private Government Private NGO Government NGO, Business incubator Microfinance Business Incubator Women Entrepreneurs training Center Women Business incubation Bilateral Cooperation Government Government Union of Women Business Owners Business Incubator on Science Park Business incubator Participants Male Female Female Female Female Female Male Female Female Female Female Female Female Female Female
Table 2: Participating countries and institutions in Asia Country China Chinese Taipei/Taiwan Japan S Korea Name of the Institution Shanghai Technology Innovation Center Chinese Business Incubation Association Japan Business Incubation Association Korea Business Incubation Association 73 Nature Technology park Business incubation association Business incubation association Business incubation association Participants Male Male Male Male
India Malaysia Philippines Australia New Zealand Hong Kong Thailand Vietnam
Indian STEP and Business Incubator Association (ISBA) National Incubator Network Association (NINA) UP-Ayala Techno Park (Ayala Foundation, Inc) Business Innovation & Incubation Australia New Zealand Trade & Enterprise Hong Kong Science and Technology Parks Corporation National Science and Technology Development Agency Vietnam Incubator Club,
Business incubation association Business incubation association Techno Park Business incubator Government Organization Techno park State agency Business incubation association
Male
The Regional coordinator contacted directly business association coordinators who directed him to women business incubation for face to face interviews. Contrary to other regions, Asia has a more structure organization of business incubators Table 3: Participating institutions in Asia Country South Korea South Korea South Korea South Korea South Korea South Korea Malaysia India Name of the Institution Ulsan Juju Incheon Busan Chungju Gwangju eHomemakers SOHO Business incubator Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP) Periyar Technology Business Incubator 9 Nature Women Business incubator Women Business incubator Women Business incubator Women Business incubator Women Business incubator Women Business incubator Women Business incubator Regional Development Agency Private not for profit 74 Participants Woman Woman Woman Woman
Woman Woman
India Total
Woman
Table 3: Participating countries and institutions in Europe and Central Asia (ECA) Country Armenia Organization Business Women Support Center Foundation Regional development agency Contacts Respond Gevorgyan Lilia question11 Khandjan str., 0010 Yerevan, Ar- naire menia, Tel. 37493 814735; fax: 587871 e-mail: [email protected] Regional Rositsa Djambazova coordinator [email protected] tel +359 751 60404 questionfax:+359 751 60403 naire questionNino Elizbarashivili naire [email protected] Cholpon Aitakhunova www.busincub.com T: (+996) 515 77 00 05 (+996) 555 68 1990 Zamira Akbagysheva, [email protected]http://wcongresskr.freenet.kg T: (+996)312 66 42 13; (+996)312 66 13 52; (+996)515 77 00 05; El?bieta Kwiatkowska Gda?sk, ul. Dyrekcyjna 7 058 305 22 44 Domnica Cotet [email protected] Yes questionnaire Proponent organization
Bulgaria
Georgia
Kyrgyzstan
Kyrgyzstan
Poland
Romania
Russia
Business Incubator Gotse Delchev, Entrepreneurship Promotion Center Georgian Association of Women in Business Incubator Non-profit Business Incubator of Congress of Women of the Kyrgyz Republic Non-profit The Union of Business-incubators and Innovation Centers of Kyrgyz Republic Non-profit Mi?dzynarodowe Stowarzyszenie Pracowników Instytucji Rynku Pracy w Polsce Technology and Business Incubator Centre (Centrul Incubator Tehnologic si de Afaceri-CITAf) Regional center of management and culture Managing Company of Tambov innovative business incubator
questionnaire Steering Group member questionnaire questionnaire
Lapteva Olga Russia, Tambov Derzhavinskaya street, 16 a,office 305 [email protected]
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Turkey
Women Incubator – Kütahya
Uzbekistan
Business incubator – Asaka
Uzbekistan
Business incubator – Mubarek
Tel/ Fax: +90 274 231 17 74 Address: Tav?anl? Yolu 3.Km.KUTAHYA-TURKEY [email protected] [email protected] web: www.kutahyakisgem.org.tr provided by Necla Haliloglu [email protected] Kurbanova Matluba Uzbekistan, Andijan region, Asaka city, Shodlik street 1. Tel: + 998 74 233 05 13 + 998 74 232 11 16 + 998 93 630 07 42 [email protected] Sarieva Guzal Uzbekistan, Kashkadarya region, Mubarek city, 2-microdistrict. Tel/fax: + 998 75 672 16 51 + 998 75 313 59 94
Questionnaire
Questionnaire
Questionnaire
Among the 10 organizations from 9 ECA countries who answered the questionnaire, 8 are business incubators and along with 3 women business incubators. The others target women.
Table 4: Participating countries and institutions in Latin America and Caribbean region (LAC) Country Chile Costa Rica Name of the Institution INCUBAUNAP Business Incubator of the University Arturo Prat Centro de Incubacion de Empresas del Instituto Technologico de Costa Rica (ITCR) Incubatec Red Dominicana de Incubadoras de Negocios y Emprendimiento (Dominicana Incuba) eMprende, Inc. Nature Business incubator Business Incubator Participants Female Female
Argentina Domincan Republic
Dominican Republic
Business Incubator Network of Business Incubators, Universities, Government and Non Government Agencies that promote Entrepreneurship Technology Business Incubator
Male Male
Male
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Table 5: Participating countries and institutions in Middle East and North Africa (MENA) Country Tunisia Palestine West Bank Name of the InstituNature tion El Gazala Technopark Business incubator, technopark, BIC, Palestinian Business Micro Finance providing Women Association BDS services (ASALA Enhances Technologies Association des femmes Chefs d’Entreprises AFEM Bahrain business incubator center Khatoun Al Wardghan ICT enterprise Union to promote women in business Business incubator food enterprise textile enterprise Participants Female Female
Morocco Morocco Bahrain Syria
Female Female Male Female Female
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