Trade for Women SMEs in Pakistanby Yasmin Hyder

Why TradeGoods and services are likely to be imported from abroad for several reasons

¡ Imports may be cheaper, or of better quality.

¡ They may also be more easily available or simply more appealing than locally produced goods.

¡ In many instances, no local alternatives exist, and importing is essential.

For example: In the case of Japan, which has no oil reserves of its own, yet it is the world’s fourth largest consumer of oil, and must import all it requires.

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International Trade

Advantages of International Trade

§ Increased Competition

§Higher Quality Products

§ Employment Opportunities

§ Stronger Economy

§High Purchasing Power

§ Technology Sharing

Why Trade for Women?

¡ Economic inclusion and empowerment of women

¡ Women-owned enterprises employ more women than the average exporting firm

¡ 85% of women-owned SMEs have female chief executives, chief operating or chief financial officers

¡ Women Entrepreneurs display a strong commitment to the local community and tend to be very involved in giving back to other women entrepreneurs

Empowering women develops

societies

Growing Micro, Small and Medium Enterprises

¡ MSME are critical pillars of economic growth – important source of employment and poverty reduction

¡ Strengthen MSME participation in international markets (Sectors: Agro-commodities, textiles and handicrafts)

¡ Formal registered business is very small

¡ Share of SMEs in exports 30-35%

1% women in Pakistan are formally registered

80% Jobs created by SMEs

Barriers to Trade for Women

¡ 90% of the economies have at least one legal impediment to women’s economic participation

¡ 23 economies impose more procedures for women than men to start a business

¡ 16 economies limit women’s ability to own, use and transfer property

Gender bias/cultural norms

¡ Women play multiple roles in the economy

¡ One in five men in 67 countries disagreed that women can hold any job that they are qualified for outside the home

**Women spend twice asmuch time as men oncare and domestic work.

*Up to 40% of registered businesses, only one in five is an exporter

Barriers to Trade for Women

Preference of informal trade ¡ Low risk, no impact on tax liability¡ Paperwork and documentation¡ Downside of informal trade

Cost of Trade ¡ Charges of freight forwarders, cargo

handlers ¡ Mishandling products, manually

scanning products or expecting informal payments to clear goods at port

¡ Reliance on intermediaries to source raw material and to sell the final products may increase costs

Barriers to Trade for Women

Lack of business information Access to markets¡ Lack of awareness¡ Limited networking

Access to ICT/Technology

Access to finance/ financial services¡ Within South Asia, making financial

transactions is cumbersome ¡ Expensive bookkeeping

Lack of productive capacity ¡ Is my business too small to export? * SME share is 6-8% of

banking/private credit in Pakistan

Leadership Ambition Gap

¡ How do women perceive themselves and their abilities?

¡ What role can Pakistan women play as business managers and owners?

Way Forward

¡ E-Commerce¡ Being online levels the

playing field for women owned firms;

¡ Increase knowledge

¡ Use of Technology

¡ Moving women from informal to formal economy

Questions?