Monday, December 3, 2012

Empowering the African Woman-The Bottle necks




The concept of promoting women’s economic and political empowerment has gained greater attention over the last three decades. Although there has been recent focus on developing women’s entrepreneurship in Africa, much of the focus has been on growth-oriented women’s businesses. Women’s entrepreneurship in micro and small business that are often considered informal has not been able to reach the growth potential.

 Consequently, addressing gender-specific barriers to entrepreneurship and leveraging the full participation of both men and women in the development of Africa’s private sector together represent a significant opportunity to unleash Africa’s productive potential and to strengthen economic growth.

There are three main reasons why gender matters. First, women are major players in the private sector, particularly in agriculture and in informal businesses. It is estimated that women-owned businesses account for over one-third of all firms, and they are the majority of businesses in the informal sector in African countries. Second, the ability of women to formalize and grow their businesses, to create jobs, and to enhance productivity is hampered where legal and institutional barriers exist that affect men’s and women’s enterprises differently. 

Third, there is evidence—especially at the micro level—to indicate that gender disparities not only disadvantage women but also reduce the growth potential of the region as a whole. The existence of gender related barriers can thwart the economic potential of women as entrepreneurs and workers, and such barriers have an adverse impact on enterprise development, productivity, and competitiveness in Africa. (Bardasi, Blackden, Guzman, 2006) Hence it can be assumed that an appreciation of gender issues is important when considering strategies to improve ways to private-sector development in Africa and to promote its competitiveness in the world.

PROBLEMS ENCOUNTERED BY WOMEN

Entrepreneurship is not an individual process but a collective one, involving many actors in addition to the entrepreneur himself or herself. Competitive enterprises cannot be created just as a result of the decision or willingness of one individual. There is need for an enabling environment and for support services for entrepreneurs from various public and private institutions.

Women entrepreneurs are often prevented from running competitive businesses by their relatively low education and skill levels, which generally limit their access to the various support services. The multiple roles of women in the family put a brake on their risk-taking. In many African countries women spend most of their income on the household, particularly on food and education for their children. Therefore, many of them are afraid to invest their limited funds into a business for fear of failure. Initiative and creativity are as fundamental as risk-taking in enterprise creation. 

However, most women tend to copy each other rather than to produce something new for their market or to look for a new market for their products. In several African countries economic decisions are normally taken by the male head of the household, hence a woman has little or no freedom in making her own decisions. In addition to the socio-cultural impediments discussed above, women face many other problems. The most outstanding ones are as follows:

Limited access to necessary technologies due to lack of information and know-how, and high prices
Difficulty in finding appropriate production sites at competitive prices
Inadequate skills in the fields of production, business management and marketing
Lack of skills for product diversification
Inadequate infrastructure and utilities, of which inadequate transport facilities from rural areas and insufficient power supplies are the most serious
Limited access to finance
Limited access to information.
A lack of organization and networking, both among women themselves, and between women and existing business associations and support institutions.
For better insight into gender-specific constraints faced by women entrepreneurs, a comparative analysis of the salient features influencing enterprise creation in African countries is attempted below.

1. Labor Burden

Studies have shown that women have higher labor burden as opposed to men. (Dejene, 2006) Family and community responsibilities take a lot of women’s time that could be applied for improving their income generating efforts. Their responsibility for child care limits their mobility and obliges them to generate income in less conducive environment for business. Although statistical data are not available on the share of children attending early childhood education, there is greater shortage of affordable child care and preschool programs even in urban areas in many parts of Africa. Women’s responsibilities for child care are often cited as reasons for women’s low participation in skills training and literacy programs, which are crucial for building business management skills of female enterprises.

2. Skills

Lack of adequate skills are other constraints faced by female entrepreneurs. The coverage and quality of agricultural extension services in processing, preserving and packaging food is limited in many African countries. Training for women often focuses on "traditional female skills" in tie and dye, basket making etc. for which the market is saturated. Women’s high illiteracy rate also limits the types of vocational and skills training they can be offered.

3. Access to Financial Resources

Women’s lack of assets, due to the gender discriminatory property and inheritance practices in many of the African countries limit women’s access and control over resources specifically land. For example, female headed households in Uganda claimed that their inability to finance their start up capital prevented them investing in businesses and trade activities (Dolan 2002, cited in USAID 2005). The lack of both start up and working capital limits the size, type and location of income generating activities. In recent decade micro-credit institutions have gained greater prominence in filling in the financial resource gaps to the poor in general and to poor women in particular. While some of the successes of micro-credit institutions has gained recognition over the years, the unmet credit needs of men and women in many parts of Africa remains big.

4. Weak Infrastructure

The low development of roads and lack of transport affects both male and female entrepreneurs. But, a closer examination at the gender differentiated impact of weak infrastructure on women and men and their respective income generating activities tells a different story. Women who live in communities with low infrastructure, (transport, water and sanitation and energy) are worse affected. Studies have shown how women’s time burden is affected by inadequate transport systems. A World Bank study (Calvo, 1996, cited in Crown. C, et al 2005) reported that 87 percent of trips in rural Africa take place on foot. Of this, the time women spent accounts for more than 65 percent of the household’s time and effort put on transport. The study also found that the average daily load of women carried was 20 kilograms for 1.4-5.3 kilometers). Some studies suggest that access to roads can improve women’s income – in Cameron women in a village on a main road earned more than those located 90 minutes away from the road (Lovell, 2000, cited in Grown, C. et al 2005).

Collecting fuel-wood is a predominately female responsibility in most of African countries. A study conducted in three countries reported that women spend up to 300 hours a year in Ghana and Tanzania and 800 hours a year in Zambia collecting fuel wood (Calvo, 1994).

Women and girls spend more time fetching water compared to men and boys. The study cited above reported that women spent more than 700 hours a day fetching water in Ghana, 500 hours in Tanzania and 200 hours in Zambia. Water is a main ingredient in food processing and other major household and market economies in which women are engaged. The limited access to water by communities, not only exacerbates women’s and girls’ time and labor burden, it also affects their livelihoods disproportionately. Hence an improvement in the infrastructure is needed to take into account women’s needs and their participation is essential for the success of initiatives in the sector.

5. Limited Access to Markets

Studies reported women’s micro and small entrepreneurs often complaining about the lack of demand for their products. (DAI, 2005). There are various factors that limit women’s access to markets. As noted earlier, women disproportionately experience limited mobility due to various factors linked to either their family responsibility or cultural practices. 

Those who can travel lack the market information on products and inputs, thus become dependent on the middle traders who buy their products at relatively lower than the market price. Because women often produce small amounts, they are limited to the local village markets, where the market for their products and services are already saturated. Other factors such as improved technology for preserving and storage facilities close to market areas are some of the constraints related to marketing of goods. In addition limited access to input markets, due to shortage of raw materials and high price of imported inputs such as chemicals for batik work and tie and dye can constrain their productivity.

6. Weak Business Organizations

African women have various types of informal and semi-formal economic and social associations where they pull labor and resources together to maximize labor productivity and social networks. However, the capacity of these associations is weak and they more concerned with their social interest instead of looking at what they can do to support their businesses economically.

7. Little Technology Transfer

Technology is the key to economic development. At the moment technology transfer into Africa continues to be in the form of consumer technology which only allows people to learn what technology to consume and how to consume it. Africa does not have the environment for creative innovations and does not support the same. If it continues so, Africa will remain technologically backward in a world where technology dominates commerce, politics and even culture.

8. Destructive Style of Political and Economic Leadership

Africa has suffered from lack of enlightened leadership and a bad style of political and economic guidance. While African leaders could have excused themselves for being unable to protect their people from the exploits of colonial empires in the l9th and 20th centuries, they can hardly escape blame for allowing neo-colonial exploitation which continues to reduce many of their people into paupers in their own countries.
During the past three decades, Africa suffered lack of visionary and altruistic leaders committed to the welfare of their own people. They were persuaded to accept the development model of the West, borrow capital from the West and be guided by experts from the same West.

This was partly possible because the colonial administration deliberately destroyed and discredited the traditional forms of self governance in Africa. While the colonial form of governance was being put in place, the western religion and values were being imposed on those who converted into Christianity.

Just before independence was granted, young Africans were promoted to positions hitherto unoccupied by the local people and they were trained by colonial masters to take over power from the colonial administration. Many of these African recruits were politically naive and uninformed. Their employment into the prestigious administrative positions previously reserved for the colonial masters was a manipulative ploy. It blinded them. So fluttered by the new-found power and prestige in their new state, many Africans became sucked into a mechanism which facilitate the continued exploitation of Africa and the African people. It was easy for the new rulers to be blinded with material wealth and privileges associated with wealth and political power because they were naive and inexperienced.

This development allowed the beginning of a small group of African elites who were in liaison with the rich to continue the exploitation of the African resources while ignoring the fate of the impoverished majority. With that bad beginning, leadership in Africa became characterized by opportunism, personal advancement and enrichment at the expense of the masses. And thus was laid the foundation for the present political, economic and social crisis in Africa.

The few African leaders who have demonstrated visionary leadership have been misunderstood and unsupported at home due to naivety and ignorance about the political forces at play in Africa. They also received no support from the international community. Instead, corrupt and unpopular African dictators received huge support especially in form of military aid which sustains them in power. These dictators built up massive armies, police forces and huge networks of secret service whose main preoccupation was, and still is, to spy on and terrorize their own citizens. Uninformed and even misinformed, the African community remains marginalized politically and economically.

One cannot over-rule the presence of external forces and factors because, a weak, disunited and war-ravaged Africa will even be easier to control and exploit.

9. The Absence of Peace and Security

Peace and security are a prerequisite for development and all human beings aspire and deserve them. All people also aspire for happiness and a quality of life devoid of poverty and indignity. Yet for the last three decades many African states have hardly enjoyed internal peace and security. State oppression by dictatorial rulers, gross violations of human rights, civil wars, diversion of human and material resources towards the wars and internal security of those in power, have destroyed millions of lives in Africa.

10. Limited Enabling Environment

Governments in many part of Africa recognize the role micro and small enterprises can play for employment generation and poverty reduction. However, creating a more enabling environment for promoting micro and small businesses and transforming the informal economy into a dynamic economic sector has been a challenge. The absence of statistical data to determine the size characteristics of the informal sector operators and the capacity of the institutions with which they interact limits the ability of governments to make informed policy measures. Reforms are also needed in business registration to allow for joint registration so that women are equal owners of household enterprises. Because joint registration is often not practiced in many parts of Africa, in time of divorce or death of spouses, women lose the businesses they help grow.

Some African countries have made concerted efforts to promote micro and small enterprises through policy measures, institutional development in micro- credit and training. Some of them have also integrated the promotion of micro and small enterprises into their Poverty Reduction Strategy Papers. 

For example, the Kenya Development Plan (1997/2001) envisioned the development of micro and small enterprises by developing and reviewing legal framework and regulatory environment, formulating programs to improve access to credit and finance, supporting women and youth involvement in the small/medium scale and informal sector through special programs, encourage strong background linkages with the manufacturing sector, and reviewing and harmonizing licensing procedures for informal sector enterprises (Chen, et al 2003). Implementation of the plan was, however, has been slow.

11. Corruption

Corruption is a serious cancer in Africa and it is eating into every aspect of life and into every socio-economic group. It brings a lot of misery to ordinary Africans and gives an opportunity to non Africans to exploit Africa.

Women’s lack of access to productive resources in Africa is a serious economic problem for the continent. Denying working women the opportunity to own and inherit property has serious implications on the productivity and income of households. There is a growing realization that countries are not honoring their international and regional commitments that call for gender equality in property and inheritance rights. Greater attention needs to be paid in galvanizing efforts to ensure women’s ownership of land and other properties through policy formulation reform, revision of the legal systems and changing customary practices.

Promoting the growth of micro and small enterprises is a responsibility of various institutions. Coordination among these institutions is often weak or non-existent. In some countries as many as four or five institutions such as Ministry of Trade and Industry, local government, rural development institutions, women’s affairs ministries and others are each doing the same thing without adequate consultations and harmonization. Sometimes lack of coordination leads to duplication of efforts and wasting of resources. Therefore, recognizing division of labor among institutions and coordination of efforts should be promoted on a regular basis.

Ensuring access to micro-credits and training to women alone is not a panacea to women’s business growth. Projects that support women’s micro and small entrepreneurship need to take into account the various gender related challenges as summarized above, including time burden, lack of intra-household decision making power, low technology, limited access to markets and resources and limited supportive environment. Efforts should be made to empower women through various leadership programs that build women’s ability to progress in the businesses.

Lack of statistical data on the informal economy is a major problem for policy formulation and program development. Gender statistics on the characteristics of women and men entrepreneurs and their business practices, as well as their institutions are necessary for informed decision making. Government statistical offices and their partners are key players in collecting, analyzing and disseminating key information. It is recommended that attention be paid to collect sufficient and detailed gender statistics on the micro and small enterprises.

Weak infrastructure has a limiting effect on both women and men small activities. Women micro and small enterprises are disproportionately affected by the lack of or high cost of energy, water and transport. Interventions in conventional and alternative energy development need to take account of household and micro and small enterprises’ energy needs. Infrastructure projects need to be development with equal participation of women and men. It is important that poverty reduction and income generating project take into account the infrastructure needs of women’s micro and small enterprises in designing their projects.

Improving vocational and technical education and training is an effective way of generating dynamic entrepreneurs. Girls’ and women’s participation in technical vocational education is low in many African countries. There is the need to transform the gender segregated approach to vocational and technical training in which girls and women are trained in traditional occupations such as knitting, cooking and others. Skills training programs need to be developed in conjunction wit the labor market.

Promoting the gender equality and empowerment of women benefits the economy and the society at large. In many countries of Africa gender inequalities and gender based discriminations are perpetuated by customary practices. There is the need to enhance awareness about the disadvantages of these discriminations not only to women and girls but to the community at large.

There are a number of associations of women micro and small enterprises organizations in many of the African countries. With the exception of those formal organizations of formal small and medium size enterprises, the capacity of many of the informal associations is weak. Supporting women micro and small entrepreneurs to organize themselves and strengthen the existing associations can help enhancing their capacity to express their common interests and advocate for improved policy environment and increased investment in the various sub-sectors in which they operate.

Micro and small enterprises provide employment to the poor who have no other means of income. Women are highly represented in self-employment and operating small income generating activity. Although women’s micro and small enterprises are significant in terms of reducing the household vulnerability to poverty, many of them are not reaching their growth potential due to various factors as summarized above. 

Many of the constraints women micro and small enterprises face can not be addressed with one single intervention or one single sector for that matter. The micro and small enterprises, although their importance for poverty reduction is recognized, there is little confidence among policy makers about their ability to contribute to the growth of the economy. Therefore, greater attention needs to be paid to the development of the sector in general to promoting women owned micro and small enterprises in the continent and ensure women’s economic empowerment as a way to reducing poverty and promoting growth.

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