Growth Oriented Women Entrepreneurs in the Mekong

1. EXECUTIVE SUMMARY

According to a recent Global Entrepreneurship Monitor, 48 percent of entrepreneurs across the globe are women. Only a small percentage of entrepreneurs in any given country are growth-oriented, and an even smaller percentage actually grow a business (depending on the study, estimates range from 3-10 percent). What’s more, growthoriented women entrepreneurs face challenges such as lack of access to support services and relevant knowledge, as well as regulatory and legal barriers.

infoDev focuses on enabling the start-up and growth of innovative enterprises. Recognizing the barriers that often prevent women from growing their businesses, infoDev embarked on a small pilot project designed to test a new methodology for increasing the capacity, confidence and networks of growth-oriented women leading small businesses. The objective was to test whether this methodology would indeed lead to business expansion.

Research shows that conventional classroom training is often of limited value for growthoriented entrepreneurs. This is related to the personality attributes that commonly characterize entrepreneurs, which in turn affect learning styles. infoDev’s pilot – the Mekong Women Entrepreneurship Challenge (MWEC) – therefore set out to test a methodology based primarily on structured facilitation of peer-to-peer learning amongst growth-oriented women entrepreneurs.

The pilot project focused on Cambodia, Laos and Vietnam. Quite a few women start businesses in these countries; in Cambodia 55% of all businesses are women-owned, whereas in Laos and Vietnam women-owned businesses represent 40 and 25 percent respectively. According to a study carried out by the International Finance Corporation (IFC), women-owned businesses rarely grow from micro to small and medium sized businesses.

MWEC started with an open call for applications seeking to identify growth-oriented existing enterprises in the region. A screening process was then applied to select about 70 entrepreneurs for participation in the program.

In the target countries, it appears that womenowned businesses grow disproportionately less than those owned by men. Specific challenges identified amongst growth-oriented women entrepreneurs in the three target countries included limited exposure to innovative practices that could help with product differentiation; few opportunities for upgrading business and technical skills and gaining access to business networks outside of family and friends; lack of capital for expansion; and low levels of confidence in taking measured risks.

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The pilot program was comprised of a three-day workshop held in Cambodia, Laos and Vietnam followed by peer-to-peer learning sessions and technical seminars focused on topics selected by the participants; motivational lunches with successful entrepreneurs; and one-to-one coaching taking place over a six-month period for entrepreneurs in Laos. Additionally, small grants were awarded to a sub-set of the entrepreneurs.

While the ultimate goal of MWEC was to contribute to business expansion measured by increased sales, it will take time before the capacity and networks gained throughout the MWEC experience translates into that level of measurable result.

Outcome assessments continue and the final assessment will take place in March 2014 to update intermediate outcomes and lessons learned.

Early evidence of outcomes includes: • 90 percent of the participants have considered launching new products or services or entering new markets; • 82 percent of the participants noted that they had significantly changed their business plans as a consequence of the program; • 97 percent of the participants rated their confidence levels higher or significantly higher following the program; • Networking benefits was the top reason why participants said they would recommend the program to other entrepreneurs; • 10 participants secured new business contracts totaling US$2 million in value, 2000 new customers and investments totaling US$ 400,000.

The positive outcomes of the program to-date were due largely to the generation of trust amongst participants, the dynamic facilitators who spoke the local language, the profile of the implementation team, and the adaptation of concepts and materials to fit cultural contexts and participants needs. Interestingly, the grant funding was not nearly as valued by the participants as the opportunities offered to network and learn from experienced entrepreneurs.

This report discusses the design, outcomes and lessons of MWEC in further detail and provides a few preliminary recommendations for the design of future programs targeting the growth of women-owned enterprises.

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