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Empowering women entrepreneursthrough an SME development program
in Lao PDR
Presented by:
Mohd Sani IsmailFinancial Sector Economist
Public Management, Finance & Trade Division (SEPF)
Southeast Asia Department
Asian Development Bank
Gender Equity CoP
Asian Development Bank
Thursday, 24 January 2013
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Background of the program
Primary objective: to promote and contribute to the development of the private sectorand SMEs of Lao PDR
Second Private Sector and Small & Medium-Sized Enterprises Development
Program (PSME2), subprogram 1
OUTPUTS
i) Implementation of SME policy, including improving
SME access to services
ii) Promoting regulatory efficiency
iii) Strengthening trade policies to support SME growth
OUTCOME
improved business
environment for SMEs
IMPACTexpansion of the
formal SME sector
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PMSE2: Empowerment of women
entrepreneurs
Supply side intervention
Output 1: Implementation
of SME Enterprises
Policy, including
Improving Small and
Medium-SizedEnterprises Access to
Services
Output 2: Promoting
Regulatory
Efficiency
SME policy (drafting of the national SME Development Plan for 2011-2015
which includes activities to promote empowerment of female entrepreneurs,reporting on disaggregated data by gender, region and size through the ERO)
Regulatory impact assessment (consultations on RIA measures are with women
stakeholder groups, reduction of high-cost regulation benefits women
as they are concentrated in the micro and small enterprise sector)
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PMSE2: Empowerment of women
entrepreneurs
Stimulating demand
Output 3: Strengthening
trade policies to support
small and medium-sized
enterprises growth
Trade policy (consult women owned enterprises for trade negotiations and
information dissemination through encouraged participation in workshops)
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PMSE2: Empowerment of women
entrepreneurs
Importance of measuring indicators: enterprise registry offices (EROs)
Introduction of new
registration system in 6
pilot provinces simplified registration and
cut business compliance
costs by 35%
National rollout to
remaining 10 provincial
EROs allows SMEs to register and
obtain certification at the
provincial level
Upgrading of hardware &
software and training on
implementing registration
procedures
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PMSE2: Empowerment of women
entrepreneurs
Importance of measuring indicators: enterprise registry offices (EROs)
RESULTS
May 2011:
70, 000
enterprisesregistered
late 2008:35, 000
enterprises
registered
2010:
54.8% of
newly
registered
enterprisesowned by
women
2009:
43.9% of
newly
registered
enterprises
owned bywomen
Increased
transparency
through first
everpublished
book on
enterprise
regulation
(includesdisaggregate
d data by
gender,
region and
size)
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PMSE2: Empowerment of women
entrepreneurs
Incorporating gender equity into ADB program loans
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PMSE2: Empowerment of women
entrepreneursIncorporating gender equity into ADB program loans
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PMSE2: Empowerment of women
entrepreneursIncorporating gender equity into ADB program loans
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Gender Analysis Report
Main problems facing female entrepreneurs in Lao:
1. Access to finance: lack of collateral, lack of business knowledge and skills2. Access to technology: uses less machinery and technology than men
3. Access to training: not eligible for subsidized Business Development Support
Services without tax registration, mobility restrictions
Status: Lao PDR is implementing reforms which will create a level playing field for the poor
who are wanting to go into business, but needs to encourage the growth of female
entrepreneurs
Developments:
i. SME Promotion and Development Office to implement a survey which identifies what
financial products & services are needed by female-owned SMEs and what banks will
accept as collateral
ii. vocational institutes to help women with developing business skills
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PMSE2: Empowerment of women
entrepreneurs
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Thank you!