Access to Trade and Growth of Women’s SMEs

in APEC Developing Economies

Carol YostThe Asia Foundation

Women’s Empowerment Program

2 September 2013

Indonesia ∙ Malaysia ∙ Philippines ∙ Thailand

Research Methodology Quantitative research

Survey questionnaire

Malaysia• 92 SMEs• 55 exporting SMEs• ~50% female, ~50% male• Area-based quota sampling

Thailand• 80 SMEs• 56 exporting SMEs• ~50% female, ~50% male• Stratified random sampling

Philippines• 100 SMEs• 50 exporting SMEs• ~50% female, ~50%

male• Area-based quota

sampling & simple random sampling

Qualitative researchAll Study Economies

• Semi-structured interviews• Focus group discussions • Case studies of female entrepreneurs

Indonesia• 108 SMEs• 42 exporting SMEs• ~50% female, ~50%

male• Area-based quota

sampling & simple random sampling

Areas of Research Focus

Economic and Financial Barriers

Government and Policy Barriers

Social Support Barriers

Most Challenging Part of the Loan Application Process in Indonesia

0 20 40 60 80 100Percentage

Female Owner

Male Owner

Learning about types and sources of loans High interest rate

Finding a moneylender Completing application paperwork

Developing a business plan Getting collateral

Proving ownership of collateral

Waiting time for loan approval

Agreeing with business partners

Other

Finance & Loans Findings

• Complexity of the loan application process is a key problem for womenowned SMEs across all countries surveyed.

12%

41%

3.5%

13%

8.1%

2.3%

7%

14% 8.1%

38%

3.5%

21%

5.8%

1.2%3.5%

19%

Male Owner Female Owner

Learning about types of loans High interest rates

Finding a lender Completing application paperwork

Developing a business plan Getting Collateral

Waiting time for approval Other

Most Challenging Part of The Loan Process: Malaysia, the Philippines and Thailand

Employee Hiring and TrainingFindings

• Among women and men business owners employee hiring and training was cited as their primary business challenge.

26%

37%

7%

10%

3%

9%

8%

21%

40%

7%

11%

2%

13%

7%

Male Owner Female Owner

Physical space Hiring and training

Business licensing Access to capitalAccess to technology/assets Relationships with clientsOther

Primary Business Challenge: All SMEs

TechnologyFindings

• Women firm owners lag behind men in their knowledge and use of technology

Awareness of Technologies that Would Make Business More Profitable

0.2

.4.6

.81

Me

an o

f Aw

are

nes

s

Philippines Malaysia Thailand Indonesia

Male

Owne

r

Female

Owne

r

Male

Owne

r

Female

Owne

r

Male

Owne

r

Female

Owne

r

Male

Owne

r

Female

Owne

r

Are you aware of Technologies that would make your Business more Profitable?

Employee Hiring and Training Findings

• Women owners hire more women than men owners.

Average Firm Size by Frequency of Interactions with Formal Networks 0

20

40

60

Pe

rcen

tage

of F

em

ale

Em

ploy

ees

Philippines Malaysia Thailand Indonesia

CorruptionFindings

• Informal payments are a problem for all business owners, especially in the Philippines.

0 20 40 60 80 100percent

Thailand

Malaysia

Philippines

Severe Problem Moderate ProblemMinor Problem No Problem

Perceptions of Severity of Informal Payments Problem: By APEC Economy

Government Support Findings

• Women business owners in Malaysia and Thailand perceived low levels of government support.

0 20 40 60 80 100percent

Female Owner

Male Owner

Very Supportive Somewhat SupportiveIndifferent Unsupportive/Hostile

How Supportive is Government of Businesses Like Yours?: All SMEs Malaysia

Recommendations• Government:

– Improve access to business information and government officials

– Support business associations– Reduce corruption by government officials– Simplify licensing processes– Address crime and safety issues

• Private Sector– Public-private dialogues

– Partner with business associations (e.g. training)– Sponsor networking and mentorship programs

Questions?