Brief overview of challenges and developments in the countries of the Eastern Partner region –

advancing the women's entrepreneurship policy and practice

    

Eastern Partnership Platform 2  International Women’s Entrepreneurship Laboratory

November 25-27, 2014 Rome, Italy

Mission Statement

The Georgian Association” Women in Business”(GAWB) is a non-governmental organization that supports development of micro, small and medium businesses(MSMEs), involvement of women in entrepreneurship, provision of economic and legal education via consultations and trainings and assistance in employment and self-employment.

Research Business and professional education Leadership and mentoring Assistance in creating new jobs and business Lobbing and AdvocacyPublic Awareness RisingBusiness contacts and links establishment Small Business PromotionAccess to technologies and business incubatorconsultation and informationLocal fairs and exhibitions Publishing GAWB works for viability Strengthening of women's entrepreneurship in spheres (trade, service, tourism and agriculture) in All regions Georgia

Main Activities

Research of problems and needs of women entrepreneurs

Business and professional Education for Youth and Women;

Work with the government to enrich women economic independence and gender equality ;

Advocacy of the rights women Entrepreneurs ;

Public Awareness about economics reforms.

Collaborating with International organizations

Business Incubation ProgramGAWB has a 10-year experience

in business incubation program has become a sustainable organization delivering an array of programs and services to assist entrepreneurs in establishing businesses, products and services throughout GeorgiaGAWB , with financial and technical support of USAID/SME project operates three business incubators:Tbilisi,Mesia and Gori

In 1998 GAWB established the first Business Incubator in Tbilisi to assist youth and women in acquiring skills and knowledge to create new businesses in Georgia. Tbilisi BI became a dynamic model of sustainable and efficient Business operations

Business Incubation Program

In Mestia up in 2007 -to develop tourism The third business incubator in 2008 in Gori for IDP women's to assist IDP women to cope with the situation, poverty and increase their access to employment opportunities . Also, in 2008 GAWB was created the Vocational Training center for assistance to the Rehabilitation and Re-socialization of Convicted Women prisoners in the Rustavi #5 Common for Women. This was a first business educational and vocational center in the penitentiary system of Georgia, aiming at the re-socialization and rehabilitation of the inmates. In November 2014 was created the social enterprise a small sewing workshops

facility resources methods tools To deliver the business assistance to

client firms and address development needs of each company.

BI focused on gender issues, which serve as main sources of it clients and that is another reason why the majority of it clients are women

What We Do…..We develop training programs in collaboration with national and international professionals;

We conduct courses related to specific entrepreneurship needs;

We create workshops on such as taxation, accounting and others to guide new entrepreneurs in creating their business; We Provide practical training experience in services such: tailoring, Handcraft, retail management ,hairdressing, restaurant and hotel service staff (cook maker, waiter, barmen…) in order that people can create their own businessesWe incubate businesses and provide hands-on assistance with an aim to produce successful small firms that will leave the program financially viable and freestanding

The BI s offer the following business training courses to beneficiaries:

How to Start Own Business Business Legislation; Business Planning Leadership and Gender Management and technology;

Tourism Management Hospitality Management Accounting and Reporting

Professional training courses in: IT computer skills; Felt and weaving

/Embroidery ,Tailoring/ Hairdressers Massage Therapist Cosmetology Therapist restaurant and hotel services

We provide initial place of operations for the following businesses:

Beauty salon Graft studio Tailoring Catering Small Printing shop Computer service Souvenirs

Shop”Svanetian “SVAN Sault” small

enterprise

With financial and technical support of international organizations the Association implemented a number of projects, as a result of which:

Estimated results and outputs

4300 women obtained business and professional education;2000 women were employed and started a private business;160 women were employed in business incubators;2500 women improved their material condition;800 young people advanced their knowledge.

Women’s Economic Empowerment

Women participate less in the labor market than men in Georgia. The labor market in Georgia exhibits both horizontal and vertical segregation based on sexAs research results demonstrate, 67 % of the population is unemployed. The unemployment level is particularly high among women (75 percent).The pay gap between men and women is significant in every sectorWomen, particularly in the rural regions have limited access to Internet, MSE networks, trainings and services. They have limited knowledge how to start or extend own business , how to develop and make profitable.

Micro Business Individual who

independently carries out an economic activity

Annual turnover – not more than 30 000 GEL (17 000 USD)

Small Enterprise average number of annually employed – not more than 20 persons

annual turnover – not more than 500 000 GEL (280 000 USD)

Medium enterprise- average number of annually employed – not more than 100 persons

annual turnover – not more than 1 500 000 GEL (850 000 USD)

Classification of Small and Medium Size Enterprises

Employment In Enterprises

Employment – 550.9550.9 thousands Persons, thousands Persons, Growth Growth – 3% (to previous year)

Large Enterprises Large Enterprises – 315.4 thsd. persons

• ratio to total employment – 57%

Medium Enterprises Medium Enterprises – 97.1 thsd. persons

• ratio to total employment - 18%

Small Enterprises Small Enterprises – 138,3 thsd. persons• ratio to total employment – 25%

SME Enterprises SME Enterprises – 235.4 thsd. persons• ratio to total employment – 42.7%, 3% growth compared to the

previous year

38% of total number of employed and self-employment population in Georgia are women

Business Sector:

2% construction sector;17 % agricultural and food processing sector;41%retail and 12% wholesale in trade;28%in the service sphere;

proportion of women occupying top positions is very small in all sectors.

Government Programs of Supporting Microfinance

SME Development Strategy for Georgia 2015-2020”.State Program titled “Supporting Micro and Small Businesses in Georgia”

launched from October 2014 by the Ministry of Economy and Sustainable Development of Georgia. The program aims of development/promotion of micro and small enterprises in the country, support business entities/entrepreneurs, development regional markets and increase incomes. The program is designed to provide proportional financing of micro and small businesses for the population living in the regions

Characteristics of the ProgramCharacteristics of the ProgramA total budget of the new state program is 20 million Gel;Duration - 26 month;Beneficials - residents of the regions of Georgia (except Tbilisi), population

(3 315 300 people).

Government Programs of Supporting Microfinance

ResultsIncrease the competitiveness of regional businessesLaunch modern business practices in the regionsRegional diversification of productionOther direct and indirect benefits of economic activity, growth and development

Enterprise Development Agency was established From February 2014 in order to promote and support start-up, small and medium sized businesses and the export potential of the country. The Enterprise Development Agency is integrated in the system of Ministry of Economy and Sustainable Development of Georgia as legal entity of public law.

StateState program “Produce in Georgiaprogram “Produce in Georgia” started from June, 2014. The Ministry of ” started from June, 2014. The Ministry of Economy and Sustainable Development and the Ministry of Agriculture of Georgia Economy and Sustainable Development and the Ministry of Agriculture of Georgia are the coordinators of the program.are the coordinators of the program.

Characteristics of the ProgramCharacteristics of the ProgramThe state program is an opportunity for startups to

fulfill their plans, create new factories in the field of agriculture or industry;

A total budget of the new state program is 46 million GEL out of which 30 million GEL is allocated for agricultural production and 16 million GEL industry production;

Duration – The state will provide co-sponsorship of the 10% of interest rate during 24 months.

Also following institutions are involeved in the program:•Entrepreneurship Development Agency,• National Agency for State Property Management, •Technology and Innovation Agency of Georgia,• Agricultural Projects Management Agency

.

Economic Competitiveness and WelfareWhile the population as a whole has been hit hard by the economic recession, women occupy an especially precarious position and face many obstacles in realizing their full potentials. access to business opportunities and financial resources, tend to work in lower-paid sectors as well as the informal economy and are on average paid less than men. Women have not benefited to the same extent as men from economic reform efforts. Future reform projects should therefore consider special measures to improve women‟s economic opportunities and labor contribution. Specifically, measures should be taken to improve the life-work balance for women and incentives adopted to support women entrepreneurs. Economic GovernanceIn connection to tax reform, consider whether there are any explicit or implicit gender biases in the personal taxation system of Georgia that would have different impacts on male and female taxpayers.Promote the use of gender-responsive budgeting exercises to track expenditures of tax revenue. Improve protection of women‟s rights to own real property and register intellectual property. Undertake gender analysis of economic restructuring and reform initiatives with recommendations for gender-equitable policies.

Private Sector CompetitivenessSupport gender sensitive solutions among lending institutions, specifically regarding access to credit, lending barriers and business support. Encourage lending institutions to track lending patterns by sex. Assess the risks and potential negative consequences of targeting sectors that present distinct gender imbalances or in which women and men have unequal control over assets and capital, such as in agriculture. Invest in workplace programs that improve women‟s access to career advancement and encourage women in non-traditional fields.

Challenges

Weak development of women enterprises in the regions;Low demand on domestic market;Lack of access to credit resource;Lack of support measures for start-ups;Lack of business experience and efficiency of SME support institutions for women Lack of business incubators;Lack of budget resources;Low level of competitiveness and quality consciousness of SMEs;Lack of business insurance system;Low investment in SME sector inc.womenUnstable supply of energy resources for enterprises;Large share of false products in market which decreases the efficiency of support measure;Low payment ability among the most population;Regional conflicts

The current political leadership might create favorable environment for SME promotion;

Favorable geographical location that makes business cooperation attractive in the South Caucasus region and with neighboring countries;

Attractive environment for tourism development; Development of SME regional infrastructure; Membership of Georgia to World Trade Organization (WTO) enhances the

opportunities of businessman women to enter the foreign markets. EU association agreement.

Support or the opportunistes

.

The main important task is to develop a coherent government SME policy and create appropriate and sustainable infrastructure.

Access for financing, especially for start-ups has to be developed. Micro financing, credit unions have to be strengthened to create self-employment and promote start-ups women.

Georgia has a relatively well-educated population. However business skills, enterprise management have to be developed.

Cooperation between SMEs especially in the formed well-established neighbouring countries-women entrepreneurs, has to be both strengthened as well as restored.

There is a need to develop business ethic.

Thank You for attention!

Nino Elizbarashvilli, PresidentGeorgian Association of Women in Business - GAWBE-mail: wbus@caucasus.net