A Rapid Assessment to Inform the Development of Gender-Responsive Procurement (GRP) Policies and Programming Final Report
Submitted to the United Nations Entity for Gender Equality and the Empowerment of Women
By Sal Forest Co., Ltd.
February 28, 2023
Table of Contents Executive Summary .............................................................................................................................. 5 Chapter 1 Research Background......................................................................................................... 8 1.1
Rationale ................................................................................................................................ 8
1.2
Objectives............................................................................................................................. 10
Chapter 2 Research Methodology, Work Plan, and Tools for Qualitative and Quantitative Data Collection ............................................................................................................................................. 11 2.1
Research design ................................................................................................................... 11
2.2
The Population of the study ............................................................................................... 11
2.3
Qualitative survey ............................................................................................................... 12
2.4
Quantitative survey ............................................................................................................. 13
2.5
Work Plan of Study ............................................................................................................ 14
2.6
Research Tools for Qualitative and Quantitative Data Collection ................................. 15
2.6.1 Qualitative data collection ................................................................................................... 15 2.6.2 Quantitative data collection ................................................................................................. 15 Chapter 3 Key Findings of Qualitative in Government Agencies, Large Enterprises, and MSMEs ................................................................................................................................................ 17 3.1 Summary on interviewing with government agencies ........................................................... 17 3.2 Summary on interviewing with large enterprises .................................................................. 24 3.3 Summary on interviewing with micro, small and medium-sized enterprises (MSMEs) ....... 31 3.4 Observations on Responses Using Gender Analysis and Intersectionality............................. 40 Chapter 4 Survey Findings of MSMEs ............................................................................................. 42 Section 1: General Information ..................................................................................................... 42 Section 2: MSME Views on Gender Equality and Diversity....................................................... 48 Section 3: Problems and Obstacles Faced by MSMEs ................................................................ 52 Section 4: Obstacles in Accessing Government and Large Enterprise Procurement ............... 54 Section 5: Support Received by MSMEs ...................................................................................... 68 Section 6: MSME Opinions on Gender-Responsive Procurement (GRP) ................................. 71 Chapter 5 Limitations of the Study ................................................................................................... 74 5.1 Sampling frame and sampling method ................................................................................... 74 5.2 Quantitative questionnaire design ........................................................................................... 74 5.3 Telephone survey ...................................................................................................................... 74 5.4 Quantitative data analysis ........................................................................................................ 75 5.5 Gender representation and visibility ....................................................................................... 75 Chapter 6 Recommendations ............................................................................................................. 76 6.1 Working with Government Agencies ...................................................................................... 76 6.2 Working with Large Enterprises ............................................................................................. 78
6.3 Working with MSMES ............................................................................................................. 79 References ............................................................................................................................................ 83
Table of Figure Figure 4 - 1 Number and portion of respondents by position ......................................................... 42 Figure 4 - 2 Number of respondents by age group........................................................................... 43 Figure 4 - 3 Number and portion of respondents by gender ........................................................... 43 Figure 4 - 4 Number and portion of MSMEs according to OSMEP’s definition .......................... 44 Figure 4 - 5 Number and portion of MSMEs by industry sector.................................................... 44 Figure 4 - 6 Number of enterprises by number and types of employees ........................................ 45 Figure 4 - 7 Number and portion of MSMEs by legal entity .......................................................... 46 Figure 4 - 8 Number of enterprises and respondent experience by years in business .................. 46 Figure 4 - 9 Number and portion of MSMEs that is WOBs by sector ........................................... 47 Figure 4 - 10 Number of MSMEs that is WOBs by sector and definition ..................................... 48 Figure 4 - 11 Number and portion of enterprises by having policy or practices in gender equality and diversity ......................................................................................................................... 49 Figure 4 - 12 Views on Thailand’s gender equality and diversity situation................................... 50 Figure 4 - 13 Number and portion of respondents giving scores on Thailand’s gender equality and diversity situation ........................................................................................................................ 51 Figure 4 - 14 Number and portion of MSMEs having problems and obstacles ............................ 52 Figure 4 - 15 Number and portion of MSMEs that currently has following actions .................... 53 Figure 4 - 16 Number and portion of MSMEs that currently has following actions by industry sector .................................................................................................................................................... 54 Figure 4 - 17 Portion of MSMEs by Thai SME-GP registration status ......................................... 55 Figure 4 - 18 Portion of MSMEs by joining government procurement experience ...................... 55 Figure 4 - 19 Number and portion of MSMEs by joining government procurement experience and industry sector ............................................................................................................................. 57 Figure 4 - 20 Number and portion of MSMEs by joining government procurement experience and business size.................................................................................................................................. 57 Figure 4 - 21 Winning bid MSMEs’ problems with government procurement ............................ 58 Figure 4 - 22 MSMEs' adjustment to government procurement process ...................................... 58 Figure 4 - 23 MSMEs' adjustment to government procurement process by industry sector ..... 59 Figure 4 - 24 Reasons why MSMEs lost bids in Government Procurement .................................. 59 Figure 4 - 25 Interest of MSMEs in participating in government procurement: portion of MSMEs that have never attended procurement .............................................................................. 60 Figure 4 - 26 Interest of MSMEs in participating in government procurement: portion of MSMEs that have never attended procurement by industry sector .............................................. 61 Figure 4 - 27 Portion of MSMEs by joining large enterprise procurement experience ............... 62 Figure 4 - 28 Number and portion of MSMEs by joining large enterprise experience and industry sector ..................................................................................................................................... 62 Figure 4 - 29 Number and portion of MSMEs by joining large enterprise procurement experience and business size............................................................................................................... 63 Figure 4 - 30 Winning bid MSMEs’ problems with large enterprise procurement ...................... 63 Figure 4 - 31 MSMEs' adjustment to large enterprise procurement process................................ 64
Figure 4 - 32 MSMEs' adjustment to large enterprise procurement process by industry sector .............................................................................................................................................................. 65 Figure 4 - 33 Reasons why MSMEs lost bids in large enterprise procurement ............................ 65 Figure 4 - 34 Interest of MSMEs in participating in large enterprise procurement: portion of MSMEs that have never attended procurement .............................................................................. 66 Figure 4 - 35 Interest of MSMEs in participating in large enterprise procurement: portion of MSMEs that have never attended procurement by industry sector .............................................. 67 Figure 4 - 36 MSMEs that received support from government agencies, large enterprises, or civil society organizations ................................................................................................................... 68 Figure 4 - 37 Expectations of MSMEs for receiving knowledge support ....................................... 69 Figure 4 - 38 MSME’s expectations of access to the procurement of government agencies and large enterprises .................................................................................................................................. 70 Figure 4 - 39 MSMEs' views on promoting WOBs and GREs for better access to GRP ............. 71 Figure 4 - 40 MSMEs’ willingness to develop gender-responsive policies to enter GRP ............. 72
Executive Summary This report is part of the three-year Mekong-Australia Partnership (MAP) project developed by UN Women, called WE RISE Together (WRT). The aim is to develop Gender-Responsive Procurement (GRP) policies and programming in Thailand. The report presents the findings of a stakeholder mapping and rapid assessment, which were divided into two tasks. The first task, 'Gender Responsive Procurement (GRP) Stakeholder Mapping in Thailand & Desk Research on Thailand's GRP Landscape and Profile,' was conducted to identify and gather key players and provide an outlook of the landscape of Women-Owned Businesses (WOBs), Gender-Responsive Enterprises (GREs), and GRP. Through desk research, the research team profiled 30 government agencies, 169 large enterprises, and 526 Micro, Small, and Medium Enterprises (MSMEs), categorized into three industries: consumer goods, tourism, and the "other" sector and conduct a quick assessment on their readiness for GRP. The details of the findings can be found in Appendix 3. The profiling results were later integrated into setting up samples for both qualitative and quantitative data collections. To gain insights from key stakeholders in GRP, the buyers (governmental agencies and large enterprises) and the sellers (MSMEs), semi-structured interviews were used. In total, 5 representatives from governmental agencies, 5 from large enterprises, and 17 from MSMEs, all of whom were also WOBs, were asked about their perception towards gender equality, WOBs, GREs, and GRP, and their readiness for GRP. These samples were chosen based on purposive sampling. After analyzing the interview results, the information from MSMEs was constructed into a questionnaire to collect similar types of data from 319 respondents via telephone using a nonprobabilistic sampling method like convenient sampling. The questionnaire's responses amplified the results of the interviews and allowed the findings to be roughly generalized. The interviews showed that all three groups valued gender equality and saw it as a beneficial aspect for society and the economy. They also agreed that supporting WOBs, GREs, and GRP are crucial mechanisms for driving gender equality in the private sector. While gender equality has improved in the business sector in Thailand, some sectors remain male-dominated, such as construction, fintech, and IT services. However, stakeholders' commitment and sense of urgency varied, with a shared suggestion that a clear problem statement is needed to communicate the threats and obstacles that WOBs face, so it can validate that women entrepreneurs should be supported before other vulnerable groups. As policymakers and buyers, governmental agencies have played an important role in supporting gender equality in business and GRP. For example, Securities and Exchange Commission (SEC) has supported large businesses to put gender equality into their ESG frameworks and pioneer using gender-responsive budgeting. The Office of Small and Medium Enterprises Promotion (OSMEP) has been working on defining the country's definitions of WOBs and GREs, as well as starting gender-segregated data on MSME ownership. Bangkok Metropolitan Administration (BMA) has considered adding a gender-responsive condition in their Terms of Reference. Moreover, in rolling out GRP and promoting its benefits for WOBs, governmental agencies suggest avoiding unintended consequences, such as discrimination or reducing opportunities for other vulnerable groups. Solid justification is necessary to support the promotion of women entrepreneurs, and the readiness of MSMEs to accommodate the procurement system should also be considered. In addition, convincing buyers to adopt GRP
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on a voluntary basis is better than forcing them by policy. Pushing GRP as a special track in legislation could be considered a barrier in Thailand's international trade relations. Large enterprises are aware of WOBs, GREs, and GRP, especially multinational companies like L'Oréal Thailand, which implemented its supplier diversity through GRP more than a decade ago. Thai companies have also known these concepts as part of their ESG framework, which many businesses are prioritizing. At present, Thai companies hold many programs and infrastructure to support their SMEs or local suppliers, but none of them have initiated GRP yet. Some are in the process of sharing GRP ideas with suppliers and conducting internal research for further consideration. Although GRP will provide more convenient access for WOBs, large enterprises emphasized that they chose SME suppliers based on their business competency and ability to meet required standards, rather than gender or other qualities. To move forward with GRP, large enterprises looked for deeper understanding of WOBs' situation in Thailand and exact groups in need to provide the right solutions. Seventeen WOBs out of 319 MSMEs were interviewed first to gain rich information from their experience as WOBs and their thoughts on GRP. None of the informants had a written policy on gender equality and had various practices with their staff, customers, or vulnerable group of suppliers. At present, they expressed a range of challenges they have faced, from keeping their businesses afloat in the wake of the COVID-19 crisis to expanding their operations and securing more sources of funding. They also faced a lack of vital business skills like marketing, finance, and human resources management. Some problems stemmed from being a women entrepreneur, such as not being willing to network after work or at night like their male counterparts, feeling sexism or ageism in the board rooms, time management struggles when becoming a mother, and being perceived in a certain gender stereotype. However, most did not feel gender inequality in being a female entrepreneur and expressed concern that giving them special access to procurement systems could make them look inferior. The results from the quantitative survey complement the findings from the qualitative study. The questionnaire was answered by respondents from all age groups. According to OSMEP’s definition of MSMEs, 70 percent of the respondents were micro-enterprises, while 26 percent were small businesses and 3 percent were medium-sized companies. In terms of sectors, 56 percent were from the consumer goods industry, almost 34 percent from other industries and 10 percent from the tourism industry. The survey revealed that 85 percent of the respondents were women-owned businesses, while only 5 percent were gender-responsive enterprises. Although almost 60 percent of the respondents felt that WOBs do not have fewer business opportunities than their male counterparts, around 25 percent agreed that they do. This indicates that some of the respondents perceive gender inequality in the procurement process and access to business opportunities. Despite mentioning several business problems during the interview, the survey respondents did not cite many issues. The survey revealed that almost 90 percent of the respondents sell products on online platforms and almost half of them attended capacitybuilding programs offered by the government. However, only around 14 percent of them registered with the Thai SME-GP platform by OSMEP, which provides more opportunities to procure with government agencies. It has been observed that many optimistic views on WOB's business and gender gap challenges possibly did not consider the factors women entrepreneurs face when analyzed through a gender analysis framework. For instance, power components that describe access to assets, practices, participation, beliefs, perceptions, institutions, laws, and policies and their impact on
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other women were not much taken into account. Additionally, some respondents may have missed the intersectionality of considering other women entrepreneurs' identities, relationships, and social factors that differ from their own. It is important to include gender analysis and intersectional perspectives to understand gender gaps and challenges faced by WOBs run by women from different backgrounds, sectors, resource access ability, economic status, location, and other factors that reflect power and readiness in running a business. Furthermore, almost 72 percent of the surveyed MSMEs never participated in the government procurement system, and almost 78 percent never joined the large enterprise procurement system either. Interestingly, around 38 percent and 43 percent of MSMEs with no experience in the procurement process showed no interest in joining government and large enterprise systems, respectively. They explained that they were too small, lacked essential resources, or had a well-performing business in other markets already. In contrast, around 10 percent of the respondents who showed an interest in procurement systems were keener to join the large enterprise procurement system than the government’s. Around 50 percent of the respondents previously received support, mainly from the government, for finance, improving production capability, and developing innovation. Currently, their top three capacity-building requirements are marketing, accessing funding sources, and product development. The survey found that almost 25 percent of the enterprises agreed and strongly agreed that pushing forward with GRP could create unfair competition in the market for women business owners against entrepreneurs from other genders, or are from vulnerable groups. Conversely, around 55 percent of the respondents strongly disagreed or disagreed with this thought. Almost 15 percent of companies worry that GRP will cause more complex documentation, but almost 60 percent of them disagreed with this. When asked about their agreement on developing a written gender equality policy that is explicit in order to gain benefits from GRP, approximately 93 percent agreed or strongly agreed to do so, indicating their strong willingness to join GRP. Based on the rapid assessment results, the research team believes that WRT could establish a comprehensive information to identify the core issues faced by WOBs. This would enable better communication of WOBs' challenges to all three groups and reduce potential skepticism about GRP. WRT could provide capacity-building customized for know-how and techniques to access governmental agency and large company procurement systems. They could also educate stakeholders by sharing successful cases, showing the business case for adopting GRP, promoting business matching, and more. Finally, WOBs should be segmented to prioritize support, considering factors like size, sector, and competitiveness. However, it's important to note that the groups of WOBs that have less opportunity and would gain higher benefits in selling through the procurement system, such as micro-enterprises, may not be the same groups that can compete to win a bid and gain financially. Therefore, WRT must be clear about their targets and goals in using GRP to solve the gender gap in business. The researcher team hope this study can provide WE RISE Together with valuable information to focus on and prioritize the allocation of resources to WOBs and GREs. It can also serve as a basis for WE RISE Together to create a gender-responsive procurement (GRP) plan that would make the procurement ecosystem in Thailand more inclusive for women-owned businesses.
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Chapter 1 Research Background 1.1 Rationale Over the past decade, the strong growth in Southeast Asia has been largely supported by micro, small, and medium-sized enterprises (MSMEs). These enterprises play a crucial role in promoting inclusive growth in developing countries. In the ASEAN region from 2010 to 2019, MSMEs represented more than 97 percent of all enterprises, employing 69 percent of the workforce. On average, MSMEs contributed 41 percent to each country's Gross Domestic Product (GDP) and 20.4 of total export values. (Asian Development Bank, 2020). However, the swift economic growth in ASEAN has led to improved socio-economic conditions, including increased employment opportunities, rising wages, and better living standards. However, the benefits of this strong and diverse growth have not yet been distributed equally between men and women. (OECD, 2021) In Asia and the Pacific, nearly 60 percent of MSMEs, majorly informal businesses, are owned by women. ( Asian Development Bank and UN Women, 2022) , whilst in the Association of Southeast Asian Nations (ASEAN) countries, there are 61.3 million women and 9.8 percent of the population who own and operate businesses. (Xavier et al, 2016) Entrepreneurship is seen as a mean to empower women economically and has a positive impact on decent employment, poverty reduction, and overall socioeconomic development among female. A case study conducted in Malaysia, the Philippines, and Thailand found that female entrepreneurs hired more female employees (more than 17 percent ) than male entrepreneurs. ( The Asia Foundation and APEC, 2013) In general, women were found to be more effective in income spending. They could manage to allocate greater portion of their earnings to their families and children compared to their male counterparts. (World Bank, 2011) Despite playing a vital role in economic development and empowerment in ASEAN, womenowned enterprises are struggling with numerous barriers. Female-owned businesses tend to be of lower quality and less profitable compared to male-owned businesses. Women also face more business challenges including difficulties in obtaining initial capital, credit investment access, than men when starting or expanding their business, and difficulties in conducting their business. (OECD, 2017) Furthermore, a lack of access to business skills, training, markets, technology, and social capital, combined with limited networking opportunities with business mentors and advisors, are significant challenges facing women entrepreneurs to grow and succeed in their businesses. (UN ESCAP, 2017) In Thailand, MSMEs also play a crucial role in driving national economic growth. In 2022, MSMEs contributed 34.6 to Thailand's Gross Domestic Product (GDP), with a value of 5.6 trillion baht. This sector is also a dominant force in the country's economy, accounting for 99.5 of all enterprises, with the majority being micro-sized enterprises at 85 percent. They employed 12.6 million employees or accounted for 72 percent of the country’s total employment and owned around 12 percent of the total export value in 2021. (The Office of SMEs Promotion, 2022) The Thai business sector still has gender gaps. Women of working age have a lower labor participation rate (67 percent) compared to men (76 percent). Additionally, the country's gender pay gap stands at almost 11 percent. ( UN Women, 2020) Presently, the percentage of listed
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companies meeting the Security and Exchange Commission's target of having at least 30 percent female representation on the board is about 27 percent (UN Woman, 2022) However, 86 percent of businesses in Thailand have at least one woman in senior management. (Grant Thornton, 2020) Majority of micro entrepreneurs and workers in the informal sector in Thailand are women. Women-owned SMEs contribute approximately 38 percent to Thailand's GDP and have a higher annual growth rate (2.25 percent) than male-owned SMEs (0.31 percent). ( MasterCard Worldwide, 2010) Despite a generally supportive environment for WOBs, MSMEs, and businesswomen, women-owned businesses (WOBs) in Thailand, like their ASEAN counterparts, still face challenges in accessing the necessary finances and markets to grow. (UN Women, 2022) Additionally, it is estimated that the finance gap for women-owned MSMEs in Thailand is approximately US$45 billion, as reported by the International Finance Corporation (International Finance Corporation, 2017) In 2021, a research study conducted by Kenan Foundation, in partnership with UN Women examined the barriers faced by women entrepreneurs in accessing finances and markets in the tourism, jewelry, and FinTech sectors in Thailand. These sectors were selected because they have a high proportion of women in their supply chains and low representation of women in leadership roles. The study identified three main challenges: a lack of collateral as the top obstacle to securing finance, the lower participation by women in sectors where networking is essential for market access, and a need for confidence to be successful in business negotiations. The findings showed that women-owned MSMEs face gender-specific challenges in obtaining financing, including higher collateral requirements and higher loan rejection rates. (Kenan Foundation Asia, 2021) Currently, several organizations in Thailand are offering support to women entrepreneurs, such as providing business capacity building, easing access to finance, and opening up more market opportunities. However, gender-responsive procurement (GRP) could be another solution to empower women-owned businesses (WOBs). GRP can play a crucial role in creating opportunities for WOBs by identifying and eliminating any biases in procurement processes and promoting inclusivity. By reviewing procurement mechanisms through a gender lens in both the government and private sector, administrators and procurement officers can ensure fair treatment and increase the capacity of small business owners, especially WOBs, to comply with procurement rules and requirements. (UN Women, 2022) However, the country currently lacks a national policy mandating the collection, analysis, or use of sex-disaggregated data in procurement. This deficiency in data may impede the understanding of micro and small business needs and the efficacy of SME promotion policies. Policymakers and potential buyers, including large corporations and governmental agencies with initiatives to support women-owned businesses, encounter the challenge of identifying WOBs among all MSMEs due to the absence of clear definitions and qualifications for WOBs and genderresponsive enterprises (GREs). This report is part of WE RISE Together (WRT), a three-year Mekong-Australia Partnership (MAP) project developed by UN Women. The report aims to inform the development of genderresponsive procurement (GRP) policies and programming by undertaking a stakeholder mapping and a rapid assessment. The project seeks to prioritize women's economic empowerment by expanding market access for women-owned businesses (WOBs) and gender-responsive enterprises (GREs) through procurement opportunities. Despite the importance of GRP as a tool for enriching supply chains and advancing women's economic empowerment, its concept and
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awareness are still developing, with a limited amount of gender-sensitive data available to promote GRP practices and policies in Thailand. The report comprises two main tasks. The first task, 'Gender Responsive Procurement (GRP) Stakeholder Mapping in Thailand & Desk Research on Thailand's GRP Landscape and Profile,' was conducted to identify and gather key players and provide an outlook of the landscape of WOBs, GREs, and GRP in the Appendix. The second task was to conduct a rapid assessment of the capacity of the demand side and supply side of GRP, which is the main content of this report. The findings from this study can provide WE RISE Together with valuable information and prioritized resource allocation to WOBs and GREs. It can also serve as a basis for WE RISE Together to create a GRP plan that would make the procurement ecosystem in Thailand more inclusive for women-owned businesses. 1.2 Objectives • To conduct mapping of stakeholders in the relevant gender responsive procurement in Thailand. • To assess capacity of the demand side, the supply side, the connecting points or the supporting organizations to understand their needs.
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Chapter 2 Research Methodology, Work Plan, and Tools for Qualitative and Quantitative Data Collection 2.1 Research design UN Women conducted this rapid assessment to inform the development of gender-responsive procurement (GRP) policies and programming. This study aimed to learn the key stakeholders' awareness of the concept, current challenges, and opinions towards moving forward the GRP concept. To achieve the purpose of the study, a survey research method was conducted to gather data. As part of a survey research, a sample group of respondents will be selected to answer a list of questions for gathering data and inferences for the larger population group (Mills, 2021) and analyzing if it follows statistical sampling procedure. The survey research can be classified into two parts as follows: Part 1 Qualitative research: With a sample size of 30, the research focused on gathering indepth information by conducting interviews with stakeholders, including Micro, Small, and Medium Enterprises (MSMEs), sellers, large enterprises, and government organizations regarded as the buyers in the GRP. Data collected from this quality research survey was also used for developing a list of questionnaire for Part 2. Part 2 Quantitative research: With a sample size of at least 300, this research focused on gathering information from only women-owned businesses (WOBs) among the group of MSMEs, using a list of questions with pre-determined response options. The questionnaire contained a total of 120 items. The main difference between qualitative and quantitative research is the sample size. Quantitative research collects data on a much larger scale, using a questionnaire format, sampling to reach a larger sample size, and allowing for the generalization of data from samples into the larger population group. In contrast, qualitative research provides richer, more in-depth information, perceptions, experiences, and recommendations from respondents. A smaller group of samples is predetermined based on their preferred quality. Therefore, it should not be generalized based on a small non-statistical sample. Overall, the research design aimed to understand stakeholders' perspectives on GRP and readiness to open or access procurement according to their roles. The study used a combination of qualitative and quantitative methods to provide a comprehensive understanding on the issues and inform evidence-based decision-making. 2.2 The Population of the study A rapid assessment on a population group for the study consisted of three main stakeholder groups: • Micro, Small, and Medium Enterprises (MSMEs) that are either Women-Owned Businesses (WOBs) and/or Gender-Responsive Enterprises (GREs), and mainly function as sellers • Large enterprises (major buyers) • Government agencies (either buyers or policymakers)
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The information about these organizations and their respective groups was sourced from the data collected in the previous phase of the rapid assessment project, including the GRP Stakeholder Mapping in Thailand & Desk Research on Thailand's GRP Landscape and Profile report. In addition, some community enterprises that were awarded ( Community Enterprise Promotion Division, 2023) and considered as WOBs were screened and also added to the list of MSMEs that function as sellers. A sampling frame, regarded as a list of the population and selected for quantitative survey, was created based on a total number of 905 names of MSMEs. The criteria used for classifying MSMEs, governmental agencies and large enterprises can be found in Appendix 2 the Stakeholder Mapping in Thailand & Desk Research on Thailand's GRP Landscape and Profile report. 2.3 Qualitative survey Population Sample: The population sample was drawn from a list of organizations using purposive sampling, nonprobabilistic sampling method focusing on selecting study participants who represent the extreme of variables or key qualities being studied ( Galloway, 2005) . This sampling method would ensure that the findings are robust and cover organizations and/or large enterprises having comprehensive and diverse insights, MSMEs, and governmental agencies. The samples also have to meet specific criteria for each group of stakeholders. For MSMEs, companies were selected based on being either WOBs or GREs and mixed between micro, small, and medium sizes, according to the definition of SMEs by the Office of SME Promotion (OSMEP, 2019). A total of 20 MSMEs comprising 10 companies in the field of customer products, seven companies in the field of tourism, and three companies in other types of businesses based on different sizes, products and services, activities based on gender equality and Women's Empowerment Principles. For large enterprises, diversity in country of origin of each company could influence either gender equality and procurement policies of subsidiaries or affiliated companies in Thailand. Having a listed-company status, companies are forced to comply with sustainability standards and reporting more than non-listed firms. Consequently, both multinational and local large corporations, as well as listed and limited companies, were invited to participate in the survey. Six large enterprises were selected, comprising two Thai companies, two multinational companies, and two listed companies, based on their level of activity in women’s empowerment, support for women and diverse suppliers, and availability. For government agencies, five organizations were selected based on the different levels of their policy-making, implementation of their own regulations for procurement, and their potential in promoting GRP. The selected samples ensured that the list included governmental agencies at the local and state policy-making levels, as well as related promoting agencies for GRP. Data collection procedure: The data collection procedure for this study involved the use of in-depth interview as the primary tool. Two trained researchers conducted semi-structured interviews to ensure consistency in the data collection process. The interviews were conducted either online using applications such as Zoom and MS Team, or face-to-face. The interviews were recorded,
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transcribed and summarized. An in-depth interview on each respondent took approximately 45-90 minutes. Data analysis: The interview summaries are analyzed using thematic analysis, which is a method for identifying, analyzing, and reporting patterns or themes for qualitative data. The data is broken down into smaller units, coded into categories. Patterns are identified, leading to the summary of findings. (Delve, 2020). The content summaries from each group of samples are analyzed based on different roles in gender-responsive procurement. 2.4 Quantitative survey Sample of the population: In quantitative research, the focus is solely on the ‘sellers’, MSMEs that fall under the category of WOBs or GREs. The sample population for the study was selected using convenience sampling, which is a non-probabilistic sampling method where participants are chosen based on their availability and accessibility (Nikolopoulou, 2022). The sample includes 300 MSMEs across various industries, such as consumer goods, tourism, and other sectors. However, a specific proportion of each industry included in the sample was not specified due to availability and willingness of the owners of these enterprises to participate in the survey. Data collection procedure: The main data collection procedure for this study is a telephone survey. The interviews are conducted by using telephone interview on company. A structured interview was conducted to minimize differences between interviewers. Answers to questions are recorded and coded in the same format. In general, the telephone interview to answer 120 questions on the questionnaire for this study took approximately 35-60 minutes for each interviewee. Data analysis: Each question and answer were analyzed by using several different methods. The method includes mean, mode, max/min value, contingency table (two-way table), and grouping for short answer questions. • Mean is used for representing the value of a typical or average data point in a set. • Mode is used for representing the most common value in the data. • Max/min value is used for providing a summary of value range in the data. Max/min value is often used for identifying outliers, or extremely high or low values that may not be representative of the majority of the data. • Contingency table is used for summarizing and analyzing the relationship between two variables. • Grouping similar meaning of content is used for identifying, analyzing, and reporting patterns in the data. Interesting result of the data analysis or relationship is selected to present in charts and tables.
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2.5 Work Plan of Study Activities
Duration
Task 1: Conduct mapping of stakeholders in Thailand Mapping of policymaking, demand side, supply side, and supporting organizations
1 August - 30 September 2022
Task 2: Desk and brief literature review of Thailand GRP landscape and profile consisting of: Review of existence and implementation laws, polices, infrastructure, and existing good practices Presence and profile of MSMES, private company, public sector, and supporting organizations Recommendation on industry sector Task 1&2 Report
1 September - 30 September 2022 30 September - 31 November 2022 31 November – 10 December 2022 31 December 2022
Task 3: Assessment of capacity of the demand side, supply side and connecting points or supporting organizations to understand their needs Draft in-depth interview questions
8 November - 19 November 2022
In-depth interview
19 November 2022 - 19 January 2023
Draft quantitative questionnaire
15 December 2022 - 12 January 2023
Quantitative data collection
12 January - 6 February 2023
Qualitative and quantitative data summary
6 February - 20 February 2023
Final report
28 February 2023
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2.6 Research Tools for Qualitative and Quantitative Data Collection 2.6.1 Qualitative data collection Structure of interview questions The selected samples were interviewed using a set of pre-designed questions in the semistructured interview, a research method where the interviewer has a general plan for the topics to be covered, but also allows flexibility to follow-up on unexpected answers or additional questions that arise during the interview (George, 2022). Within semi-structured interviews, all questions are designed as open-ended questions. There are three sets of questions for three different groups of stakeholders (MSMEs, large enterprises, and government agencies). However, the main topic and overall structure of the questions are quite similar. By looking into details, the structure of the question consists of four parts for MSMEs, and four parts for large enterprises, and government agencies including: • Part 1: Interviewee details • Part 2 (For MSMEs only): Company background • Part 3: Policies to promote Gender Equality and Woman's Empowerment o Policies to promote Gender Equality in the organization o Gender Equality and Woman's Empowerment situation in Thailand o Problems, obstacles, limitations of MSMEs/WOBs, and its solution o Problems, obstacles, limitations of procurement, and its solution ▪ Large enterprise/government agencies (MSMEs) ▪ MSMEs (large enterprises, and government agencies) o Capacity-building experience and required knowledge (MSMEs) o Guidelines to support MSMEs/WOBs in the procurement process (large enterprises, and government agencies) o Comments and suggestions on Gender-Responsive Procurement (GRP) policy • Part 4: Other suggestions Validation of interview questions The interview questions were designed based on a rapid assessment objectives and data gathered from the literature review to ensure that the interview guide would effectively gather the necessary information to meet the objectives and generate new insights to construct the later quantitative questionnaire. The validity of the interview guide was tested by conducting a pilot test with a sample of participants to identify any issues or areas for improvement. After that, the interview guide was revised and refined before being finalized and administered to the full sample to ensure accurate and reliable results. 2.6.2 Quantitative data collection Structure of questionnaire The selected samples were interviewed using a pre-designed questionnaire in a structured interview, a pre-determined, standardized method of conducting an interview. It involves asking a set of standardized questions in a specific order to each interviewee, with limited room for deviation or elaboration (George & Merkus, 2022).
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Since the questionnaire was used for structured interview, almost every question was designed as a close-ended question including: • Dichotomous question (a question that only offers two possible answers) o E.g., Yes/No, Agree/Disagree • Multiple choice question o Single select multiple choice question o 5-Point Likert Scale A list of open-ended questions would be used in case of only the interviewee wants to explain more details that do not match their circumstances. There is only one set of questionnaires since the quantitative survey is only for MSMEs. Unlike qualitative questionnaires, the structure of a questionnaire consists of six parts which go deeply into the detail for each question including: • • • • • •
Part 1: Interviewee details Part 2: Opinion on Gender Equality and Woman’s Empowerment situation Part 3: Problems, obstacles, limitations of MSMEs, and its solution Part 4: Problems, obstacles, limitations of procurement with large enterprise/ government agencies, and its solution Part 5: Capacity building experience and required knowledge Part 6: Comment and suggestion on Gender-Responsive Procurement (GRP) policy
Validation of questionnaire The questionnaire was designed based on the rapid assessment objectives and data gathered from in-depth interviews conducted previously. By using choices refined from the in-depth interview answers, the close-ended questionnaire was designed to better reflect the participants' views and experiences, with additional choices added based on related literature. The validity of the questionnaire was tested by conducting a pilot test with a small sample of MSMEs to assess content understanding and time required per interview. After the pilot test, the questionnaire was revised and refined before being finalized and administered to the full sample to ensure accurate and reliable results that can measure what it is intended to measure. The group of interviewers received training to ensure they have a consistent understanding on the questionnaire and efficiently conduct the interview.
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Chapter 3 Key Findings of Qualitative in Government Agencies, Large Enterprises, and MSMEs 3.1 Summary on interviewing with government agencies Our research team conducted a series of in-depth interviews with five organizations including national policy makers, central and district-level entities, and advocates for MSMEs and social enterprises. The aim is to gain opinions and insights from high-level representatives from government agencies working on gender equality, women’s empowerment and gender responsive procurement (GRP). Informants were from Bangkok Metropolitan Administration (BMA), Provincial Administrative Organization (PAO) of Prachuap Khiri Khan, The Securities and Exchange Commission, Thailand (SEC), The Office of SMEs Promotion (OSMEP), and Office of Social Enterprise Promotion (OSEP). A summary of their perspectives are as follow: 1) Policies and practices: gender equality and/or women’s empowerment within the organizations All interviewed representatives from governmental agencies agree that gender equality is an important issue to push forward. Despite demonstrating policy and practical commitments, not all of these organizations have a related written policy in place. The Bangkok Metropolitan Administration (BMA) aims to promote a " city for all people" policy with equal rights and welfare for everyone. The Social Development Department is mainly responsible for gender-responsive welfare and policies, for example, free sex hormones for transgender individuals and sanitary pads for women. In 2022, a policy on gender equality and a ban on sexual harassment policy were announced. BMA staff and employees at all levels are required to put into practice. (BMA’s circular letter, 2022), They can wear civil servant uniforms in skirt or pants following their preference. In Prachuap Khiri Khan, the Provincial Administration Organization (PAO) hired more female staff than male staff. In fact, both BMA and PAO believe in diversity as the key organizational culture. Unlike BMA, PAO does not currently have a policy on gender equality or diversity put in place. At the national level, the Securities and Exchange Commission (SEC) highlighted its commitment to sustainability, the Environment, Social and Governance (ESG) framework, and gender equality. In 2020, SEC was one of 24 governmental, private, and academic organizations issuing a declaration of intention to promote equality and eliminate gender discrimination (SEC, 2020). As a result, a policy on promoting gender equality and eradicating sexual discrimination has been formalized. As an example, SEC’s recruitment practices prioritize education and work experience over gender, and the selection of committees or individuals for key positions based on equality. SEC also signed a memorandum of understanding with the Department of Women’s Affairs and Family Development to implement Gender Responsive Budgeting (GRB), taking gender into account when planning their annual budget. (SEC, 2021)
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The Office of Small and Medium Enterprises Promotion (OSMEP) promotes female entrepreneurs to better connect with national and international supply chains. There are also many women in management positions at OSMEP. Similar to SEC, the Office of Social Enterprise Promotion (OSEP) has women in top management positions. However, there has been no written policy on gender equality policy so far. 2) Perspectives on Gender Equality in Thailand’s Business Sector All informants saw the positive changes in gender equality in the private sector in Thailand unlike the male-dominated organizational culture in the past. However, they did not have similar views on importance and urgency of women’s empowerment. The thing is some viewed that gender equality status in Thailand is better than other ASEAN counterparts or Muslim countries. As Thailand has less challenges in gender inequality or discrimination, it is evident that people’s awareness of these issues is less, and so is the effort to fix them compared to other countries. Informants viewed that the business sector plays a crucial role in promoting diversity and gender equality through their policies, practices, and reports. They mentioned various improvements e.g. transferring leadership roles in family businesses to daughters and sisters, higher proportion of women in management roles, women leadership programs. Other benefits include gender reassignment leave and maternity leave, women-only parking area, and children’s day-care benefits at work. Most of them had direct experience working with talented and independent businesswomen and female entrepreneurs. There is a SEC found the 56-1 One report regarded as a tool for raising awareness and conducting self-assessment among listed companies on the issue of gender, ESG, and sustainability. SEC found many large enterprises like TTB, Haad Thip, Makro, Homepro, Sansiri, and Siam Cement Group already promoted gender equality and diversity by integrating the principles into supply chains, corporate social responsibility programs and international standards. SEC has observed that companies are increasingly focusing on integrating gender issues into their ESG practices to meet sustainability and trends. Companies consider the impact of climate change on women and other vulnerable groups. However, their response vary across different industries. Despite these positive changes, informants noted that gender gap still exists in industrial sector, particularly oil and gas. Female leaders are relatively too few. Career path is still much dominated by male engineers. On the other hand, the financial sector has a higher proportion of women in management positions. SEC reported 27 percent of female board directors in Q3, 2022. Such proportion is considered higher than many other countries. SEC also aimed to increase a number of female board directors by 30 percent. Working with social enterprises, OSEP observed that opportunities were scarce for capacity development among female entrepreneurs in rural compared to those in urban areas. Some informants noted opportunity was slim for women in heavy-duty and construction businesses as physical strength was highly required. There was an informant reporting a previous case of sexual harassment in workplace.
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Although all the organizations interviewed would like to see improvement in gender equality in the business sector, they held different opinions. One informant believed it was essential for society to understand the root cause of gender inequality before fixing the problems. That way it would be more convincing and bring all parties together. Some informants argued that support should extend beyond women to other vulnerable groups such as the elderly, people with disabilities, LGBTQIA+, and minority who may face more urgent challenges. 3) Policies and practices: gender equality and/or women’s empowerment in the business sector As policymakers: The different government agencies have distinct roles in promoting gender equality and women's empowerment with their stakeholders. Based on the interviews, SEC and OSMEP are the two primary organizations responsible for promoting these policies among large enterprises and MSMEs respectively. As a policy maker and regulator for the capital markets, SEC promotes sustainable business practices by integrating national and international policies and standards, such as the 20-year National Strategic Development Plan and UN Guiding Principles (UNGPs). This includes promoting companies to conduct Human Rights Due Diligence (HRDD) and follow the Corporate Governance Code (CG Code) to advance gender equality. In 2020, SEC amended regulations to increase disclosure about sustainability (SEC, 2020), including gender-related information, and aims to increase a number of board directors to 30 percent of all listed companies. To achieve this goal, SEC has partnered with the Thai Institute of Directors to provide training for female management to prepare for director positions. Additionally, SEC encourages institutional investors to join the UN’s Principles for Responsible Investment (PRI) to consider gender as an important element of responsible investment. Although SEC is not yet equipped with a specific policy on promoting gender responsive procurement (GRP), they have observed several listed companies using this principle independently, such as buying from suppliers with disabilities or vulnerabilities. SEC continues to educate listed companies on upcoming international compliances, such as the European Union law, that may affect their business practices. For example, purchasing from diverse suppliers may be a future requirement under these laws. To promote SMEs in Thailand, OSMEP benchmarks the country's SME promotion with other ASEAN member countries through ASEANSME Policy Index, which includes procurement practices that promote women's empowerment and gender equality. While Thailand has fewer policies in this area compared to its counterparts, its performance is still favorable. As an ASEAN member, OSMEP is committed to promoting women's empowerment among SMEs in Thailand and is working on collecting more precise data and statistics on female entrepreneurs. To better target SMEs owned by women or those that are gender-responsive, OSMEP is drafting a definition for women-owned businesses (WOBs) and conducting a series of public hearings with various stakeholders. This definition will be submitted to state lawmakers for passing the ministerial regulation which is on the process and expected to become effective by the end of 2023.
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According to an OSMEP representative, having a standard definition is a good starting point for categorizing women-led businesses and helping government and large enterprises identify and support them. However, OSMEP recognizes that buyers' decisions to purchase from SMEs owned or led by women depend on multiple criteria beyond WOB status, such as quality of goods and services, meeting required standards, and access to markets. As buyers: Most informants stated that their organizations are required to follow procurement rules set by the Comptroller General's Department which gender equality and women’s empowerment is not a part of the selection criteria. However, a few organizations do purchase from SMEs, GREs, or diverse suppliers. For instance, as a signatory of gender-responsive budgeting, SEC considers gender in their spending. Although the PAO of Prachuap Khiri Khan does not have a specific gender-related procurement policy, they mentioned that their suppliers do not have differences in ownership between women and men. So far, OSMEP created an opportunity for WOBs to be listed in their procurement system and they purchase from social enterprises that employ women in communities to improve their earnings. On the other hand, BMA expressed a strong interest in buying from SMEs, but their budget spending is still regulated based on the budgeting from two years ago. Their procurement rules are outdated, rigid, and contain too many requirements that SMEs might not be able to achieve or qualify for. BMA has very limited bidding announcement and that they may not even be aware of the bidding news. Consequently, it is difficult for new suppliers to win business with BMA. BMA currently hosts events for community enterprises to have more market access. However, they have not yet integrated women and vulnerable groups into their enterprise selection criteria. Nevertheless, BMA recently collaborated with Lazada on a campaign to educate community enterprises on e-commerce and introduce the so-called "Bangkok Brand" to the e-commerce platform. To support WOBs and diverse suppliers, BMA considered plans to revise Terms of Reference (TOR) regarding SME qualifications and require them to either employ or subcontract women or vulnerable groups of people. In summary, options which governmental agencies can support WOBs and GREs depend on their specific interests, authorities, and independence in managing budgeting, policies, and procurement regulations. Each agency must tailor their strategies to their unique circumstances in order to effectively implement GRP. 4) Perspectives on supporting WOBs, GREs and GRP All of the interviewees expressed their views that gender equality, diversity, and inclusivity are crucial for promoting economic growth while ensuring that no one is left behind. and fostering innovation through a variety of perspectives. Although each organization has a distinct role and level of engagement in supporting GREs, their views on backing WOBs, GREs, GRP, and facilitating access to procurement for female entrepreneurs are varied. Awareness of gender inequality and women entrepreneur’s challenges Despite acknowledging the challenges that women entrepreneurs face, some informants felt that women in general did not necessarily have unique difficulties in leading or owning businesses. They cited their positive experiences working with talented female leaders and meeting successful and competitive female entrepreneurs. For these informants, women are not
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inherently less capable than men. Nonetheless, some informants suggested that progress had been made in terms of reducing gender inequality in Thailand, and that other vulnerable groups might require more urgent support. In addition, some government agencies prioritized other sustainability issues like environmental degradation and climate change. So gender equality may not be their current top priority. Most governmental agencies do not prioritize supporting women-owned businesses (WOBs), gender-responsive enterprises (GREs) and gender-responsive procurement (GRP) because they do not have a clear understanding of the disadvantages that women business owners face. Instead, their initiatives are mostly focused on complying with local or international targets, policies, and movements such as the UN's Sustainable Development Goals (SDGs), ASEAN policies, or other ESG standards, without taking proactive steps to advance the agenda themselves. Unclear definition of WOBs and GRP Most of the informants are familiar with the concepts of WOBs and GRP, although the terms are still novelty. However, the scope of each term is unclear. For instance, it is uncertain if GRP includes other underprivileged groups besides women. OSMEP drafted definitions of WOBs and conducted public hearings. However, it is still uncertain if their Thai definitions align exactly with international ones. Several issues require further discussions among stakeholders, such as determining the appropriate proportion of women in ownership, executive positions, and total employees within an enterprise, clarifying overlapping definitions, and addressing practices for informal sector enterprises. The informants also observed that women's ownership on paper may not represent their genuine ownership or their role as key decision-makers in a business. In contrast, some male-led enterprises may be operated and led by women. Therefore, definitions crafted by the government should be put in place to avoid discrimination. Furthermore, OSMEP representative reported that the business sector might come up with their own definitions. Such incident happened with the definition of SMEs defined by commercial banks and OSMEP. The thing is it depends on their respective goals in promoting different aspects of SMEs. Despite the challenges, OSMEP strongly believes that having official and common definitions for WOBs is necessary to manage gender-disaggregated data and to implement the GRP concept. Questioning on WOBs’ readiness, benefits and creating another inequality According to a few informants, creating opportunities for SMEs and WOBs to access new markets and gain priority in government and large enterprises' procurement could provide significant benefits to small enterprises. However, caution is advised when promoting these benefits. Firstly, doing business with government and large enterprises requires meeting certain standards for product and service quality, as well as possessing other key business capacities. SMEs and WOBs may not be able to win contracts if they do not have these necessary qualifications, even if they are given access to procurement opportunities in the future. Therefore, SMEs and WOBs need to ensure that their capacity is up to par and that they are prepared to participate in the procurement system.
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Secondly, an informant raised concerns that providing a permanent priority track for SMEs and WOBs in the procurement system could result in complacency and hinder their development. It may be more appropriate to consider offering them priority for a specific period of time, rather than making it a permanent feature. Thirdly, some informants expressed that it is challenging to define what exactly constitutes 'equality' for women entrepreneurs. One informant preferred the concept of equity over equality. With the understanding that promoting gender equality is crucial but not at the expense of other vulnerable groups, most informants expressed concern that prioritizing women entrepreneurs could potentially discriminate against male, LGBTQIA+, and other business owners from vulnerable groups. Therefore, there needs to be a solid justification to support the promotion of women entrepreneurs. On the other hand, one informant received feedback from several female entrepreneurs who did not feel inferior or that they had fewer opportunities than their male counterparts. In fact, providing them with special treatment in running their businesses made them feel incompetent instead. Hence, promoting gender equality is necessary. However, it should not lead to unintentional consequences such as discrimination or reducing opportunities for other groups. Their roles in promoting or regulating GRP To push for GRP as legislation for government procurement, informants suggest that the focal point should be at the Comptroller General's Department. They also shared their thoughts on potential challenges in regulating GRP. Firstly, rule enforcement without obvious incentives is difficult to achieve. Although the SEC can issue regulations for capital markets, convincing large enterprises that adopting GRP is beneficial for their business growth with strong business cases will lead to more adoption than forcing them. Consequently, SEC considered their role a promoter for GRP than a regulator. Secondly, an informant shared their experience in pushing for a new condition to government procurement legislation. Opening a priority track or a fixed portion to a certain type of enterprise would not only affect domestic trade but also international trade. Thailand has many free trade agreements (FTA) and several powerful trade partner countries look for minimal favoritism towards a certain type of business, which could be considered as discrimination against companies from their countries. Unfortunately, Thailand is not a leader in world trading and its negotiation power in opening a special track for SMEs or WOBs could be very limited. However, presenting gender equality and women’s empowerment practices are demanded by partner countries if Thai enterprises would like to export. As a result, the informant foresaw the Comptroller General's Department may face difficulties in changing the government’s procurement laws based solely on the effort to support local WOBs. In summary, interviewees agreed on gender equality's importance for economic growth, innovation, and inclusivity. Views on supporting WOBs, gender- GREs, and GRP varied. While some recognized challenges faced by women entrepreneurs, others felt women do not necessarily face unique difficulties but most of them are running policies, practices, or campaigns to support those initiatives. For example, SEC aimed to support large business to put sustainability issues and gender equality into company frameworks. OSMEP played a crucial role in supporting WOBs and GREs in issuing the country’s definitions of them as well
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as starting gender-segregated data in SMEs ownership. BMA also wanted to support WOBs, but there are some technical issues preventing the organization to easily support them. However, the issues could be fixed in a few years. Whilst OSEP is purchasing from social enterprises where promoting women’s empowerment in the community level. Moreover, interviewees highlighted a cautious need for promoting WOBs benefits to avoid unintentional consequences such as discrimination or reducing opportunities for other groups. Solid justification is necessary for supporting the promotion of women entrepreneurs with readiness of the enterprises themselves. In addition, informants suggested convincing large enterprises with strong business cases will lead to more adoption of GRP than forcing them.
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3.2 Summary on interviewing with large enterprises Our research team conducted interviews with five large companies, including one multinational corporation (MNC) - L'Oréal (Thailand) Company Limited (L'Oréal Thailand) - and three Thai listed companies: Charoen Pokphand Foods Pcl (CPF), Minor International Pcl (MINT), and Siam Makro Pcl (Makro), as well as one Thai private company, Doi Kham Food Products Co., Ltd (Doi Kham). However, an informant from MINT is giving an interview on behalf of a local hotel rather than the whole corporation. The representatives from large enterprises are in management positions, including procurement, sustainability management, general management, and communications departments. The aim of these interviews was to understand the perspectives of large enterprises as potential buyers for women-led businesses (WOBs) and gender-responsive enterprises (GREs), and their role as key adopters for gender-responsive procurement (GRP) and supplier diversity through gender-responsive procurement (SD GRP). We sought to gain insights on their perceptions of gender equality and women's empowerment in Thailand's business sector, as well as their views on the adoption and promotion of GRP. In this section of the report, the term "SMEs" will be used to describe small and medium-sized enterprises, as all the informants used this term to explain their companies' procurement practices with regards to their small and medium-sized suppliers. This term accurately reflects the nature and definition of the small and medium-sized companies that these large enterprises do business with. 1) Policies and practices: gender equality and/or women’s empowerment within the organizations Most Thai company representatives agree that promoting gender equality and diversity, not only for women but also for other genders, is crucial for their employees. However, each company has different policies and practices in place for their workforce. Some view gender policy as a tool to reduce risks for women in case of harm, discrimination, and harassment, and as a way to communicate the company's commitment to gender issues. Informants provided many examples of policies and practices that promote gender equality and women’s empowerment. For example, companies like Doi Kham, Minor, and Makro do not consider gender as a factor in the recruitment process for any job position. Informants have observed changes in their companies, with more women being promoted to management positions than before. MINT has set a target to increase a number of female leaders in their hotels, while Makro monitors gender parity statistics and promotes equivalent opportunities for male and female employees. They also include data on gender-related topics in their annual reports, and tracks the number of staff promoted to higher positions or benefits. They found that both male and female employees receive equivalent opportunities for career advancement. As a result, they do not have an extra target to promote gender equality in their workforce. CPF also has an increasing number of women in leadership positions and promotes gender diversity. LGBTQIA+ staff can express themselves through outfit preference. The company’s staff club also give them a voice. As a multinational corporation, L’Oréal Thailand has a key purpose of promoting diversity and inclusion, not only for women but across genders. The company's policy cascades down to
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Thailand, and they use a Key Performance Indicator (KPI) system to motivate employees to support and promote gender equality in the company. Large enterprises participating in the interview either have a written policy, specific activities, target setting, data collection, or reports available, and they merge these with individual staff KPIs to reflect their mission in promoting gender equality. These practices have significantly developed from the informants’ perspectives, compared to many years ago. 2) Perspectives on Gender Equality in Thailand’s Business Sector Most informants agreed that gender equality in Thailand's business sector has improved significantly over the past decade. The situation is even better than in neighboring countries. Sustainability aspects such as climate change, the COVID-19 pandemic, economic crisis, circular economy, and waste management have been acknowledged and adopted into practice in the business sector, making gender equality a key element in the ESG (Environmental, Social, and Governance) framework and aligned with international human rights principles. All informants reported that their organizations are committed to promoting gender equality. Company representatives interviewed did not focus only on promoting gender equality for women but also highlighted the importance of promoting equality for other gender and vulnerable groups who are key stakeholders in achieving sustainability goals. While some representatives noted that gender inequality still exists in professional sectors such as engineering, science, and construction. The society still believes these professions are better suited for men. Meanwhile, there are more female staff than male colleagues in their fields of work, such as hotel services, retail businesses, and procurement. They also noticed gender imbalance among their suppliers in creative and digital services which are more LGBTQIA+ dominated but viewed it as ‘better, characteristically fit’ to these jobs. Some female informants shared their career advancement experiences. There is an informant previously thought that working at a MNC would be more gender-responsive in promoting staff as management but did not find any significant difference compared to a Thai firm. Another informant, who was the only female among executives in her level a decade ago, noticed that more women are taking part in the same positions now than before. An informant expressed a positive perspective that there seem to be more female entrepreneurs than male in Thailand, with women having more opportunities to work from home and take care of their kids at the same time. These opinions can be implied that gender balance situation is improving in the business sector in Thailand, and none of the informants mentioned experiencing discrimination. They see gender equality and diversity as essential advantages for doing business, bringing in different perspectives and deploying unique strengths from diverse stakeholders. 3) Policies and practices: gender equality and/or women’s empowerment with their external stakeholders Most companies have clear policies and practices to promote gender equality and women's empowerment for their external stakeholders, including suppliers, customers, and the public. However, some companies have not yet included gender-responsive directions in their broader sustainability initiatives with suppliers.
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In the interviews, the only multinational company (MNC), L'Oréal Thailand, had more extensive and longer-standing practices to promote gender equality than Thai companies, but still needed to adapt to the local context. For example, L'Oréal's 'Solidarity Sourcing' program, launched in 2010, focused on purchasing from diverse suppliers, including women-owned businesses and gender-responsive enterprises, and includes sourcing from Thailand. In contrast, Thai companies are aware of women-owned businesses, gender-responsive enterprises, and supplier diversity through Gender-Responsive Procurement (GRP). However, none of them have a specific policy to support such entities yet, unlike having policies to promote SMEs, smallholders, and fragile groups of suppliers. Some companies expressed interest in GRP but may need stronger signals from government policies or international sustainability standards to take action. The interviews identified two main methods for promoting gender equality and diversity: corporate social responsibility (CSR) programs and procurement. Corporate Social Responsibility (CSR) L'Oréal Thailand is an example of a company that includes women's empowerment in their CSR projects, with initiatives focused on both corporate and brand levels. Their activities include awarding and funding women scientists to provide more opportunities and working with non-governmental organizations to advocate no-harassment or abuse in couples. Makro also has a CSR program that provides necessary occupational skills training for female prisoners to prepare them for employment after their sentence is served. The program was launched based on their research to identify the needs of vulnerable groups. Procurement Out of the five large enterprises interviewed, only L’Oréal Thailand had a policy, goal, and linked their staff KPIs to SD GRP. L’Oréal Thailand has established a Solidarity Sourcing program, customized from the global program, to help elderly, poor, disabled individuals, as well as female and LGBTQIA+ entrepreneurs join the company’s supply chain through the procurement department. In 2030, L’Oréal aims to have 200 and 100,000 diverse suppliers from Thailand and around the world, respectively. Reaching the Solidarity Sourcing project target is also related to employees’ KPIs and their bonus packages. Most suppliers are currently companies hiring elderly and disabled individuals, but L’Oréal Thailand plans to add more WOBs soon. However, L’Oréal Thailand’s suppliers in their SD GRP do not receive privileges for waiving high-quality deliverables or meeting other supplier standards, but they are awarded to recognize their support for vulnerable individuals. Although the interviewed Thai companies have not yet had a written GRP policy, some companies, such as Doi Kham, CPF, and Makro, mentioned that building gender-segregated data should not take a long time if they implement GRP in the future. In general, Thai large enterprises have many policies and practices that support their SMEs suppliers or locally sourced suppliers. Several programs occurred during COVID-19 or built the capacity of suppliers to drive their operations’ efficiency or sustainability know-how. While the informants from Thai companies have not yet indicated any policies supporting WOBs or launching GRP, understanding their relationship with SME suppliers provides insight into how they may support WOBs suppliers in the future if GRP is adopted.
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SMEs were significantly affected by the COVID-19 pandemic in terms of income, operations, and health management. CPF supported its suppliers with health information and crisis management guidelines to ensure the least interruption in their operations. Before the government issued a shorter credit term policy for SMEs, CPF implemented a shorter credit term to support their small and medium suppliers. In case suppliers needed funding, CPF linked them with a bank and used their business contracts and invoices as collateral to receive the cheaper rate of interest, such as the Minimum Loan Rate (MLR). Doi Kham also has a similar program to help suppliers access banks conveniently. Several capacity-building programs for SME suppliers have been implemented by companies like CPF and Makro. These programs offer training on sustainable-related topics such as human rights, net-zero missions, water management, ESG, and anti-corruption codes of conduct. SMEs also receive training on production process efficiency and current business trends, which are important skills needed to work with large enterprises that require certain standards and audits. Despite having policies to provide some prior advantages for SMEs, large companies still select SME suppliers based on the quality of their products and services, ensuring that they meet necessary qualifications and certifications. Moreover, MINT and Doi Kham have local sourcing policies that support the local economy by buying from local suppliers, most of whom are SMEs and farmers. In summary, the interviewed Thai companies have established necessary processes and systems when treating SME suppliers, which could be applied to GRP. These include a detailed supplier database, capacity building programs, and requirements to meet certain standards that could integrate gender equality policies to encourage SMEs to become GREs. However, implementing GRP relies on other factors beyond having a robust infrastructure, which could be extended to WOBs or GREs. 4) Perspectives on supporting WOBs, GREs and GRP All informants agreed that WOBs, GREs, and GRP are three important mechanisms for driving gender equality in the private sector. However, most of them did not express a sense of urgency or have a clear understanding of the current challenges and inequalities faced by WOBs, except for L’Oréal Thailand which has been involved in SD GRP as one of their key procurement projects for over a decade. Few informants generally acknowledged that further research and awareness-raising efforts are needed to fully understand and address the barriers to gender equality in the private sector, particularly for WOBs. Consequently, almost all of Thai companies joining the interview have not yet expressed their interest in setting up a policy or GRP process. One respondent mentioned that conducting research to understand the actual issues that women entrepreneurs in Thailand face in various contexts could be convincing for them, as Thailand’s gender equality landscape may differ from other countries. CPF has already started to survey their supplier companies owned by women but encountered obstacles such as privacy protection for suppliers’ data. Questions were also raised by female entrepreneurs on why they are counted as a fragile group. CPF is currently testing the waters
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with constructing a WOBs database and laying out the process, but plans to launch a GRP once it aligns with the global sustainable roadmap. Additionally, the informants shared the following points that could impact the implementation of gender-responsive procurement (GRP) in large enterprises: Reasons to support WOBs and GREs Some informants expressed a need for more data on the pain points and unfair treatments faced by WOBs and GREs in order to find effective solutions to their problems. They emphasized the importance of identifying specific groups of WOBs that are facing inequality, such as micro enterprises, less-educated entrepreneurs, or those with financial instability, rather than viewing WOBs as a broad target. To better understand these issues, some companies are conducting internal research with their suppliers. Another informant emphasized the need to understand how supporting WOBs could mitigate business risks similar to other sustainability issues. However, they also acknowledged the difficulty in convincing WOBs to join initiatives, as some may not see themselves as inferior or in need of special support. Some supplier companies owned by women even questioned why they were categorized as a group with special needs. In general, SMEs have to see that there are benefits besides income and promoting gender equality could take time, labor and the management’s commitment to see the non-financial results like other sustainability drives. A few informants expressed concerns that supporting WOBs could create discrimination against other groups of suppliers or perpetuate the notion that women are not fully capable. They suggested that clear communication of the problems faced by WOBs to related stakeholders and the public is crucial to avoid misunderstandings. However, one informant suggested that UN Women could play a crucial role in advocating WOBs to the government and private sector due to the organization’s reliability and reputation. Definition of WOBs and GREs A large Thai company conducting a rapid survey with its suppliers on implementing GRP. That survey found unavailability of any official definition of WOBs and GREs has caused confusion among suppliers in defining themselves. While OSMEP provides a definition for SMEs based on Ministerial Regulations on the Designation of the Characteristics of Small and Medium Enterprises Promotion Act B.E. 2562, there is no government or commonly accepted definition of WOBs and GREs in Thailand. Therefore, inviting SME suppliers to join the GRP is on a voluntary basis, and suppliers have to declare themselves first. The company is concerned that scrutinizing supplier data on ownership or female management seats to categorize them as WOBs or not may violate Thailand's Personal Data Protection Act BE 2562 (PDPA). Additionally, without a convincing reason for WOBs suppliers to share their data, they are hesitant and unsure of benefits. These challenges are making it difficult for the company to conduct a pilot survey for their GRP plan. Making GRP as public policy or legislation If GRP becomes a criterion required for international sustainability standards or an urgent risk in the global business trend, large companies will need to comply with it to compete, just like with other issues such as net-zero missions, human rights, and ethical sourcing. However,
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informants had diverse opinions when asked about the idea of GRP becoming a public policy or legislation. Some company representatives suggested that there should be a procedure to ensure that SMEs are able to handle large purchase volumes from large companies. This could begin with a program to promote the competitiveness of WOBs or a study supporting the argument that WOBs have capacity and capability to conduct business with large companies and government agencies. Importantly, any legislation should aim to persuade large companies to implement GRP rather than coerce them into supporting WOBs. The state can provide incentives for large companies, such as rewards or standards, to ensure that such policies are implemented, so these companies can serve as an example for others to follow. Limitations of SMEs Large enterprises' representatives shared their experiences and opinions on the obstacles they've faced while working with SMEs. These insights can be useful in preparing and equipping WOBs and GREs for GRP once it is adopted by big corporations. During the early stage of procurement, large enterprises require several sets of documents, multiple registration steps, and compliance policies such as data privacy protection, nondisclosure agreements (NDAs), and mutual ethical letters. Many SMEs are not familiar with these requirements and may find it difficult to meet them. However, some informants noted that SMEs tend to improve once they gain experience with the system. SMEs' workforce can also be a challenge for large enterprises. Informants reported high turnover rates among their suppliers, resulting in business transaction discontinuity. Moreover, many SMEs struggle to source quality products and conduct precise quality control to meet large enterprises' requirements. When failure occurs, SMEs often lack contingency plans or the ability to find replacements. Large-scale production to meet the demands of large companies is not always feasible for them, and they may lack expertise in inventory management and punctuality in delivering goods. Meeting several trade and sustainability standards required by large enterprises can also be challenging for SMEs. For example, complying with ESG frameworks, human rights due diligence, and Thailand's Private Sector Collective Action Coalition Against Corruption (CAC) requires adjustments to their business and operational processes, which can lead to additional expenses. SMEs often lack sufficient knowledge about these standards and may not understand how they can mitigate their own business risks with them. As a result, some large companies offer capacity building programs to equip their suppliers with necessary tools and possibly budget and mentor them through the transition. Moreover, high operation costs pose a threat to SMEs, making them less price-competitive. Additionally, capital and cash flow constraints prevent SMEs from bearing long credit terms, leading several representatives to favor SMEs with shorter credit terms or cash payments for farmers and local suppliers. Two of them also connected their suppliers with banks to obtain low-interest funding. Despite these general disadvantages faced by SMEs, it is difficult for them to scale up or grow at the same rate as large enterprises. Nonetheless, despite numerous challenges experienced by
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informants with SMEs suppliers, many still have long-term programs tailored to build capacity during economic crises like the COVID-19 pandemic. Preparing the necessary skills for SMEs is required for GRP implementation as ultimately large companies prioritize high-quality products and services, competitive prices, the ability to meet required standards, and growth potential when choosing suppliers, even though they may have a special track for sourcing from WOBs, and GREs in the future. Different types and tiers of large enterprises’ suppliers Representatives from different large companies mentioned various categorization systems for their suppliers, such as tier systems based on proximity to the final product or preferred supplier types, such as smallholder or local suppliers. SMEs must understand how they can fit into the supply chain of large enterprises. For instance, although L'Oréal Thailand has implemented SD GRP globally for many years, in Thailand, they do not manufacture any products. This limits procurement opportunities for SMEs to only providing packaging and digital and creative services for communications, while logistics and other necessary areas of operations rely on larger suppliers. Similarly, a Thai company whose business depends primarily on agricultural products but requires highcompetency skills from other large companies for marketing and brand design. WOBs and GREs need to understand large enterprises' business operations and how they can fit their products and services into those supply chains, with various tracks, entry points, and benefits provided. In conclusion, the interviewed informants representing large companies all believe that supporting women-owned businesses (WOBs), gender-responsive enterprises (GRE), and Supplier Diversity through Gender-Responsive Procurement (SD GRP) will increase gender equality in the business sector. They recognize the benefits of diversity, as people with different backgrounds bring different ideas to improve a company's capacity. However, they emphasize that the selection of high-quality products and services from competent SME suppliers should be based on their business competency, rather than gender or other qualities. Although they support the idea of promoting gender equality and diversity as part of the ESG movement, as well as the terms WOBs, GREs, and SD GRP, most of them have not yet perceived significant problems facing female entrepreneurs. Therefore, communication is necessary to demonstrate the importance of supporting WOBs, along with a formal or commonly agreed definition of WOBs and GREs in Thailand to categorize their current SME suppliers. To move forward with GRP, large enterprises already have a well-built infrastructure for their SME suppliers and various types of support. However, to be awarded a contract, WOBs and GREs must meet the business and sustainability standards and related requirements of large companies, which take priority in selecting a supplier over favoring being SMEs, WOBs, or GREs.
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3.3 Summary on interviewing with micro, small and medium-sized enterprises (MSMEs) Our research team conducted interviews with 17 MSMEs who are considered as sellers of gender-responsive procurement (GRP). According to the definition provided by the Office of SMEs Promotion (OSMEP), two enterprises are medium-sized, 16 are small, and one is a micro-enterprise. The number of employees in these 17 MSMEs ranges from 0 to 117, and their years in business range from 1 to 25+ years, with the entrepreneurs' business experience ranging from 1 to 30 years. The majority of the informants (17 persons) are women, while four are men, and almost all of them are founders, co-founders, chief operating officers (CEOs), or managing directors (MDs). Only a few are in managerial positions. An enterprise may have more than one informant depending on how they delegated the interview invitation. The names of enterprises and informants can be found at Appendix 2 of this report. All companies interviewed are considered women-owned businesses (WOBs) based on their qualifications of women ownership, or portion of women in high-level management positions and board of directors (if the board exists) and are key sellers of the GRP. However, none of them are classified as gender-responsive enterprises (GREs) since they lack a written policy on promoting gender equality or women’s empowerment, although some have practices and business activities that support these issues. The interviews aimed to gain insights into the perspectives of WOBs on gender equality and women's empowerment within their enterprises and towards Thailand's business sector. The challenges in running a business as a MSME and a WOB were also discussed, along with their experiences in accessing government and large enterprise procurement. Furthermore, we sought to understand their current needs for capacity building and their perception of GRP, as well as their willingness to participate in the future. The data from these interviews will be used to construct a questionnaire to survey a wider group of MSMEs, with the results presented in the next chapter of this report. 1) Policies and practices: gender equality and/or women’s empowerment within the organizations The MSMEs that participated in the interviews did not have a written policy on gender equality or women's empowerment, for various reasons. Some of them believed that their business practices and conduct already promoted gender equality without discrimination or harassment towards employees, part-time staff, volunteers, and suppliers (if any). Others felt that their enterprises were too small to have a written policy, particularly those without any full-time employees. However, one informant highlighted the importance of gender equality as part of the environmental, social, and corporate governance (ESG) framework that many businesses are prioritizing. While many entrepreneurs recruited staff based on their abilities and skills, they may have a gender balance in mind or assign certain responsibilities based on gender. For instance, women were thought to be better suited for accounting or auditing due to their attention to details, while LGBTQ+ employees were seen as being particularly creative in fashion design. Male staff were typically assigned work that required working at heights, such as scaffolding in hotels, which is prohibited for women by labor laws. (Ministry of Labour, N.A.) However, while these practices were not mandated, most MSMEs' representatives acknowledged their importance
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and made efforts to promote gender equality, diversity, and women's empowerment in their businesses. Here are some examples: Gender equality and women’s empowerment among employees: Gender equality and women's empowerment are important issues that were discussed by the MSMEs in terms of their employees. Open Dream, an IT social enterprise (SE), offers flexible working hours and a work-from-home program for staff who are mothers, as well as those who need to take care for their family members or elderly parents. However, these practices are considered on a case-by-case basis and were developed organically as staff members' ages and responsibilities changed. On the other hand, concerns were raised among other groups of staff who are single and do not have special working conditions about their fair share of working hours, highlighting different understandings of the concept of "equality". Dairy Home, a registered social enterprise in the dairy industry, has over 100 staff, with all seven high-level managers being women, despite the male CEO. The company offers equal opportunities for women, men, and people of other genders to receive promotions based on their performance. Gender equality and women’s empowerment through MSMEs’ products and services: Many MSMEs are making efforts to promote gender equality and women’s empowerment through their products and services. For example, Ira, an organic and degradable sanitary pad brand, was founded by a woman who struggled to find the right hygienic products for herself. She recognized women’s needs during menstruation are often ignored or misunderstood in the male-dominated business world. She eventually created a product that advocates for better women's health, gender equality, and environmental sustainability. Yosita, a clothing company, designs unisex clothing to make a statement on gender diversity in fashion. Mappa, an online media platform, promotes gender equality for youth through their content. Meanwhile, 'Friends of Nature,' a tour agency, has more than 80 percent female customers because they customize their programs based on women's particular needs. Additionally, Refill Station, an eco-friendly product company with two out of three founders being women, offers products mostly for women such as a menstrual cup. Whether they are intentionally advocating for gender equality and women's empowerment or not, some MSMEs are taking women's needs into careful consideration when creating and providing products and services. Gender equality and women’s empowerment through MSMEs’ supply chain: Some WOBs prioritize key stakeholders in their supply chain as beneficiaries, especially for social enterprises. Buddy Home Care, a home care provider for the elderly, is a registered social enterprise developed from a charity organization. The company aims to reduce inequality among two key stakeholders, their caregivers, who are youth from hilltribes from low-income families, and community elders who are in poverty. The majority of caregivers are women who often experience discrimination within their tribes where local cultures are highly male dominated. With a stable job and better income, Buddy Home Care's female caregivers can improve their family's quality of life and become more widely accepted in their community. Yours Thailand, a clothing company, works with suppliers who are minorities and female prisoners in northern Thailand to help them increase their income and access to the market.
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Similarly, Folkcharm, an ethical and organic fashion company, has most of its weavers in the northeastern area, most of whom are elderly and living in poverty. Moreover, several consumer goods WOBs, such as Seeds2Sustain, work closely with female farmer groups to empower them to access wider markets and earn more. The company also provides flexible work schedules for members who need to care for their children or parents. These examples demonstrate that WOBs can promote women's empowerment and gender equality through various business activities, whether through their workforce, products and services, or supply chain stakeholders. However, some may not feel the need for a written policy on this or believe they are too small to have a formal policy. 2) Perspectives on Gender Equality in Thailand’s Business Sector When asked about their opinions on gender equality in the Thai business sector, representatives of WOBs expressed diverse views. Some believe that gender equality in the private sector has improved. They noted that more women are now working in fields that were previously maledominated, such as engineering and IT programming, although men still dominate these fields. They also mentioned that large corporations are placing more emphasis on gender equality, whether for genuine diversity or for public image, and that more women are now in leadership positions in such companies. Additionally, there has been a rise in female entrepreneurs, particularly among Generation Y, and many sectors, such as education, public health, and tourism, are women-dominated. These WOBs do not see gender inequality as a significant issue, especially when comparing Thailand to other ASEAN countries, Japan, and China. They believe that some of the improvements are a result of long-term advocacy by gender activists. The second group of WOBs' representatives shares similar views on the first group regarding the improvements in gender equality in Thai businesses, but they still see gender discrimination in certain areas of the business ecosystem. Firstly, there are still industries, such as start-ups, construction, fin-tech, data science, and coding, where the number of women is significantly smaller compared to men. Secondly, different large enterprises by country of origin treat their staff differently. For instance, an informant's relative working in a Japanese company feels that her management career path is limited solely because she is a woman. Thirdly, several informants who work closely with their suppliers in the provinces found that in many communities, women still take on more responsibilities in the house with less decision-making power, such as in hilltribe and farming communities. Lack of access to education discourages women from taking better opportunities in work and business, as many of the informant's female suppliers in a community are still illiterate. The last group is composed of a female entrepreneur whose enterprise has a mission to advocate for the elimination of gender discrimination. She believes that the business sector does not genuinely understand gender issues. A wide gender pay gap, low maternity leave days, having women as heads in family businesses with no authority, or discrimination in specific products or services customized for women, are all still prevalent. Moreover, conducting pitching to potential buyers or investors, where main decision-makers are still male executives, despite being a female-friendly product, is another challenge faced by women entrepreneurs. Additionally, women often discriminate against other women in business dealings.
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Consequently, the informant feels that only cosmetic changes have occurred in Thailand's business ecosystem. Despite expressing diverse opinions on the gender-responsive situation among Thai business players, almost all WOBs' representatives agree that gender equality and diversity are essential for businesses. It brings in new, creative, and different ideas from different genders to make businesses grow in balance. Leaving no one behind economically and mentally ensures that their work will give them pride and a better quality of life, as well as better income for women in less-privileged communities. 3) Challenges facing by MSMEs The interviewees talked about the challenges faced by MSMEs. The severity of problems varies among different types of businesses, depending on the support-seeking behavior and business skills of the entrepreneurs. Some businesses in the tourism, food, and crafts industries mentioned downsizing their companies to cope with COVID-19. They employed survival strategies such as laying off staff or closing outlets. Many of the informants found managing human resources to be challenging for MSMEs. With smaller compensation and benefits packages, it is difficult to compete for talent with larger companies, especially in high-demand jobs like programming and IT services, where salaries continue to rise significantly. However, some WOBs hire part-time staff to be flexible with their costs, and some also have volunteers working on product development and innovation. Of the 17 WOBs interviewed, 11 of them were social enterprises, whether listed or unlisted by the Social Enterprise Promotion Office (OSEP) under the Social Enterprise Promotion Act B.E. 2562. As enterprises with a social mission, several of them struggle to balance making profits and delivering social impact. Frequently, their target customers do not understand the concept of their business, products, or services. For example, many consumers misunderstand social enterprises as community enterprises, and do not understand the benefits of organic products, ethical sourcing, or other green products. These business owners feel they need to find the right target groups and communicate their differentiation more effectively. Marketing is also a substantial obstacle for MSMEs, including identifying the right target groups, online selling, pricing, distribution, and communication. Additionally, accounting and finance for day-to-day operations are also too complex for several of them. Seeking new sources of funding, such as through loans or equity, is not easy for entrepreneurs, especially since some of them funded their business primarily through grants from governmental agencies and civil society organizations (CSOs) domestically and internationally. Some entrepreneurs face difficulties in scaling their business up, either due to limitations in production capacity, capital, or both. Other areas mentioned less frequently by MSMEs included legal issues, operational efficiency, tax management, keeping up with rapid trend changes, and adopting necessary technologies to streamline operations. 4) Challenges facing by WOBs During the interviews, we asked the enterprises whether there were any challenges faced by women-owned businesses (WOBs). Most of them did not experience discrimination as enterprises owned and/or led by women, or being in female-dominated industries, so they could
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not provide much comment. However, several WOBs reported experiencing both positive and negative discrimination as women entrepreneurs. Despite being confident in their talents, female entrepreneurs often find it challenging to network, as traditional networking methods, such as playing golf or participating in nightlife entertainment, may not be comfortable for them. Additionally, some women entrepreneurs have to reprioritize things in their lives when they become mothers, which can impact their business targets. For instance, one informant mentioned that she had to shift her focus to scaling up her business and relocating to a better area that would be more beneficial for her child. A few informants shared their experiences of feeling intimidated when dealing with older business executives or high-ranked government officers, who tended to be misogynistic. These informants would have their male partners or staff represent them in such situations, rather than pretending to be submissive or using their charms to please these individuals and win business. Women entrepreneurs face stigmatization and lack of support due to gender biases. Some were discouraged by their parents, as owning a business was considered a more masculine career in the previous generation. One informant felt the pressure to be fierce and aggressive as a female entrepreneur, while another, who is 40+, felt uncomfortable with the excessive support she received from colleagues in the tech industry. Others struggled to gain trust and legitimacy, such as an art installation business owner who was initially doubted by colleagues in her ability to manage a construction site. Young women entrepreneurs and executives also face skepticism about their abilities, with stakeholders often preferring to deal with male partners or older colleagues. Personal questions that violate their privacy, such as age, relationship status, or plans to have children, are also frequently asked. Despite these challenges, some WOBs find that being a woman can offer certain advantages in leadership, such as being detail-oriented, caring, and patient. In some industries, such as tourism, WOBs have an advantage in serving women customers, and there are informal support networks among WOBs who run social enterprises and can better understand each other's challenges. 5) MSMEs’ experience and expectation in accessing to procurement systems Out of the 17 WOBs interviewed, over half of them had experience accessing either government or large enterprise procurement, with a higher proportion in large company procurement. Almost all of them were awarded contracts. Their comments on procurement were divided into two sections: government procurement and large enterprise procurement. Government Procurement In terms of government procurement, WOBs mentioned several obstacles, either from their own experience or perception, in working with the government, which is one of the key purchasers in the GRP. Some questioned the transparency of the process, as knowing someone inside may provide a better opportunity to win a government contract. Others felt that the criteria used to score competition bids were unclear. Some MSMEs felt they had to bear the cost for a long time until they were paid, especially when job inspection and acceptance processes could take a month or longer, resulting in postponed payment dates. Many MSMEs also found it difficult to receive deposits when working with governmental agencies.
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The complex and extensive documentation requirements by the government were particularly troublesome for MSMEs. Some governmental agencies required previous work certificates or team personnel with more than 10 years of work experience in the field, which were problematic for businesses that had not been operational for a long time or run by young entrepreneurs. Requiring entrepreneurs to find other competitors to do a price comparison was also challenging because MSMEs may not know or have access to other enterprises selling the exact same products and services. In general, entrepreneurs found different governmental agencies using different systems and procedures in their procurement, requiring them to adapt and learn on a case-by-case basis. Some consumer products require compliance with government standards, such as FDA approval for food or certification as Made in Thailand. However, certain MSMEs are incapable of meeting specific production or service requirements mandated by the government. For example, government tour groups are often too large for MSME tourism agencies. Due to the complex procurement process, many MSMEs lack sufficient resources such as human capital, know-how, time, and budget to participate. If MSMEs are already thriving with other customer groups, they may not express interest in attending government procurement because of the high cost of overcoming these challenges. On the other hand, some MSMEs view working with the government as an opportunity for scaling up, such as in healthcare services. Additionally, some MSMEs are accustomed to the process and do not find it inconvenient. A few registered social enterprises with OSEP mentioned convenience in accessing government procurement by receiving benefits that prioritize them in bidding due to their social enterprise status. They were on a special track that does not require price comparison and has a high chance of being awarded if their product specifications meet the agency's requirements. They admire this benefit that the government exclusively provides for social enterprises. In summary, MSMEs recognize that the government could be a potential buyer with good credit reliability, but the complex procurement process and specific needs of the government discourage them from participating. However, many MSMEs have experience with the process and do not find it too challenging, while others may choose not to participate due to tangible and intrinsic costs. With a special track for registered social enterprises, some MSMEs prefer working with the government than before. Interestingly, none of the WOBs mentioned using the Thai SME GP system by OSMEP, which could make it easier for SMEs to access or be approached by the government for bidding. Large Enterprise Procurement The group of MSMEs that prefer large enterprise procurement over government procurement finds the process smoother, more systematic, less time-consuming, and has better communication channels. However, they also face various challenges unique to dealing with large corporations, in addition to the common problems encountered in government procurement. One common challenge is the long credit term, which makes it difficult for MSMEs to manage their cash flow and results in bearing costs. This often requires them to obtain loans from banks, personal sources, or informal channels to survive. Large corporations also have their own procurement systems and tools, requiring different types of documents for consideration, just like government agencies.
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Furthermore, large bulk orders can cause overcapacity problems for MSMEs, similar to those faced when selling to government agencies. Large companies may also spend a long time checking and accepting deliverables, which can be a significant challenge for MSMEs in prolonging their payment. Moreover, if large enterprises buy from MSMEs to resell to their customers, the consignment fee can be too high for MSMEs and can create pricing gaps among their distribution channels. An informant fixed this problem by producing a limited-edition product exclusively for big retailers to command a higher price. Selling through large retail companies also requires MSMEs to manage shelf space, check expiration dates, and remove defective products, which can be time-consuming and costly. Additionally, one informant stated that there is a risk of ideas being stolen when pitching to large enterprises. For small enterprises , sending a representative to manage shelves, revise business documents, submit invoices, and pick up checks can be a burden, and complying with the required standards and codes of conduct of large corporations can be costly. For example, food MSMEs must pass numerous checklists if delivering food to hospitals or supermarkets. Despite understanding that these standards are in place to minimize risks, adjusting their enterprises to meet certain standards and going through audits can be expensive. Overall, many MSMEs view selling to large enterprises as more positive than selling to the government, but there are still similar and different challenges that they need to overcome. MSMEs who have sufficient experience in accessing procurement, whether from the government or the private sector, are more likely to be successful, as they have learned how to manage their documentation and prepare themselves better, gaining benefits from the system itself. However, those who lack the resources to access procurement or have found success in other markets may not consider entering into procurement. 6) Support that MSMEs received and currently require Most MSME representatives reported receiving support from governmental agencies, large corporations, or CSOs. Many of these MSMEs were proactive entrepreneurs who participated in different stages of competition, incubation, capacity building programs, and grants, both in Thailand and internationally. These platforms provided funding and networks to mentors and potential customers. Supports that MSMEs previously received During the interviews, representatives mentioned several government agencies, including the Stock Exchange of Thailand, National Innovation Agency, Thai Health Promotion Foundation, Tourism Authority of Thailand, Office of Social Enterprise Promotion, and different departments of the Ministry of Commerce and universities. MSMEs received various types of support from these organizations, such as funding, research and development, business training, business matching, and participation in trade shows. Some MSMEs also received funding from CSOs like UNICEF and participated in business mentoring and fellowship programs abroad. While several entrepreneurs supported were driven by private sectors, such as Banpu's Champion for Change program, which was a starting point and the first fund received for many social enterprises. In addition, Social Enterprise Thailand,
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acting as an association of social enterprises, provided many members connected to a loan with low interest from Government Saving Banks during the COVID-19 crisis. In addition, Shopee provided an online selling platform and sales training that an informant received. While many MSMEs received support from various sources, only one enterprise owner mentioned receiving support based on being a WOB from a CSO outside Thailand. This suggests that although MSMEs can access abundant support resources, the local support system for WOBs is still lacking. Supports that MSMEs are expecting When asked about the types of knowledge and capacity building they require at present, MSME informants consistently mentioned areas that correspond to the challenges they are currently facing. The most common need is for marketing support, including branding, communications, identifying target groups, pricing strategies, and utilizing online and live selling channels. Other areas mentioned include exporting, logistics management, accounting, finance, scaling up the business, improving operational efficiency, utilizing technology with operations, and accessing various types of funding. These requirements vary depending on the enterprise's type, size, years in business, and the entrepreneurs' experience and know-how. 7) Perspectives on receiving support through GRP The research team presented information on the gender equality gap in the Thai and global business sectors, as well as the concepts of WOBs, GREs, and GRP. The team then asked the participants if they would be willing to establish a gender equality policy to access SD GRP if such a policy were to be implemented in the future. Almost all WOBs expressed a willingness to do so, although some needed further information and were too small to benefit from the program. (Find the facts and figures at Appendix 1-B). However, the participants had varying opinions on the GRP, consistent with their views on gender equality and women's empowerment in the Thai business sector. Most agreed that a more responsive procurement system would provide greater opportunities for WOBs to reach government and corporate buyers, but some raised concerns and suggestions that should be considered in preparing the GRP in the future. Reasons to support WOBs and GREs Women entrepreneurs and leaders of WOBs have suggested that a clear problem statement is needed to address and communicate the threats and obstacles that WOBs face. This will help stakeholders and the public understand the real needs for the policy. Informants mentioned that even among women entrepreneurs, there is a lack of understanding of gender inequality and some judge unsuccessful women business owners based on their perceived lack of effort. One entrepreneur gave an example of the Persons with Disabilities Empowerment Act, which requires companies to hire a person with disabilities per 100 employees. (National Office for Empowerment of Persons with Disabilities, 2007) They suggested that this would be a clear example of having a special track for employing vulnerable people. When it comes to women entrepreneurs, people do not see them as having the same vulnerability. Therefore, a solid argument must be made to highlight the problems faced by WOBs.
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GRP might not be an only way to support WOBs Some representatives from WOBs have suggested that there are other actions that could be taken to promote gender equality in the supply chain beyond creating a special track for WOBs to access government and corporation buyers. In fact, some argue that a clear problem statement is needed to communicate the threats and obstacles that WOBs face. Only with a solid and convincing argument can stakeholders and the public understand the real needs for the policy. Unfortunately, many people, including women entrepreneurs themselves, fail to recognize the existing inequalities and judge unsuccessful women business owners based on perceived lack of effort. As such, itis important to make a clear argument that WOBs face systemic obstacles that require policy interventions. Some representatives from WOBs suggest that business matching programs could be an effective tool to give them a shortcut to build relationships with potential buyers and pitch their products. Equipping WOBs with the knowledge and skills they lack could also make them more competitive, and providing social benefits like a day care could help them better manage their enterprises. Ensuring that the procurement process is fair and transparent is also critical to promoting equality. Ultimately, it is important to create a dialogue among stakeholders to better understand WOBs' needs and how they can be met. This requires careful consideration to ensure that interventions are effective and tailored to each subgroup of WOBs' problems and needs. While GRP may be useful for some WOBs in need, it is important to recognize that segmentation is required to magnify each subgroup of WOBs' problems and needs. For instance, agricultural WOBs, rural WOBs, and WOBs in tech and start-ups may need more access to the market or more representation in male-dominated circles. As such, policymakers should consider a range of interventions beyond GRP to support WOBs and GREs and promote gender equality in the business sector. Ensuring women’s empowerment through GRP During the interviews, some women entrepreneurs expressed concerns about the GenderResponsive Procurement (GRP) policy. They questioned whether promoting WOBs through GRP would create an unfair competitive advantage over other groups in need of support, such as other vulnerable populations. Some even felt that it could be viewed as discrimination against male-owned businesses. Some interviewees also noted that having a special pathway for women entrepreneurs could make them feel inferior and doubt whether they truly deserve support. They worried that this mentality perpetuates the idea that women are less capable than men in business. Additionally, being a WOB is not the only factor that determines success or failure in business. Other factors come into play, beyond gender. However, most of the women entrepreneurs expressed their willingness to participate in the GRP, seeing the strong benefits in promoting gender equality, particularly for women in industries or areas where they face more obstacles. They emphasized that the GRP needs a clear problem statement and targeting to ensure that the right groups of WOBs are indeed empowered. To gain a better understanding of MSMEs' perspectives on the GRP, a survey was also conducted using the results of these interviews. The survey focused on MSMEs' readiness and
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willingness to participate in the GRP and their overall current circumstances. The results amplifying from this qualitative find outs is in the next section. 3.4 Observations on Responses Using Gender Analysis and Intersectionality The research team considered using the Gender Analysis Framework (GAF) from Jhpiego (Jhpiego, 2016) and intersectionality to analyze feedback from three groups of respondents regarding gender equality in both government and private sectors in Thailand. The GAF describes power components in four domains: access to assets, practices and participation, beliefs and perceptions, and institutions, laws, and policies, and how they affect women. Intersectionality urges us to recognize that people's lives are shaped by their identities, relationships, and social factors. These factors result in oppression and privileges based on an individual's context and existing power structures. Thus, components in a person's life, such as age, race, poverty status, education, gender, disability, geographical area, etc., should be considered to understand obstacles and ensure that an inclusiveness incorporated in finding solutions (UN Women, 2021). However, it is important to note that the views expressed by some respondents may not cover every domain of the Gender Analysis Framework (GAF) or robust intersectional perspectives when reflecting on the gender gap in Thailand. For example, policymakers who were part of the respondent group perceived the gender gap in Thailand to be less challenging than its neighboring countries and improving from the past. However, the parliament, where vital laws are issued, accounts for only 15.7 percent of women representation, which is lower than the average of East Asia and Pacific countries with uppermiddle income (The World Bank, 2023) despite having improvement since the 2019 election. In addition, only 35 percent of senior government officers and legislators are women (National Statistical Office of Thailand, 2019). This lower proportion of women in the parliament and high levels of government offices may not represent a fair share of gender perspectives in laws and policies. Despite respondents feeling that the gender gap is narrowing, the lower participation and practices of Thai women compared to their male counterparts may impact their power when using the GAF lens. Furthermore, the beliefs and perceptions expressed by government agency respondents did not acknowledge the existence of glass ceiling effects1, as shown by the fact that half of government employees in Thailand are female, but only about one-third of them reach senior positions (National Statistical Office of Thailand, 2019). The situation is even worse at the provincial level, where only three female governors have been appointed out of 76 provinces (Ministry of Interior, 2023). Women in public administration also typically face wage penalties compared to their male counterparts (Manachotphong, 2019). These examples serve as evidence of the gender gap within the public sector that has possibly gone unnoticed. In contrary, one respondent pointed out that female entrepreneurs in rural areas have fewer opportunities due to their inability to access necessary resources and markets, which is often a result of their location and economic status. This demonstrates that an intersectional perspective is being considered. In its private sector, Thailand has a higher percentage of women in senior leadership positions in businesses than both the Asia-Pacific region and the global average (Grant Thornton 1
gender disadvantages are stronger at the top of the hierarchy than at lower levels and that these disadvantages become worse later in a person's career. (Cotter et al, 2001)
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Services Ltd, 2020). According to the views expressed by some respondents from large companies, their optimism towards improving gender equality in the business sector, particularly among larger enterprises, could be influenced by their own companies and direct experience. In fact, two of the companies interviewed had more female than male employees, with one disclosing no gender pay disparity. Although one respondent was the first female leader in her field, she did not mention experiencing any gender gap. Instead, she emphasized the significance of highlighting an individual's capability to achieve higher positions, rather than attributing the lack of women in executive roles solely to systemic issues. However, it is important to consider that the respondents' direct experiences may not represent the intersectionality of women in their own or other businesses that differ in size, location, types, or levels of access to resources. With the last group of stakeholder interviews, some representatives from MSMEs, who were women-owned businesses, mentioned their struggles in male-dominated boardrooms or networking. However, not all of them categorized these incidents as a gender gap, even though some had to assign male colleagues to pitch or negotiate for the enterprise instead. Meanwhile, a few informants who work with female minority suppliers from hill tribes noticed challenges through the GAF. They indicated that these suppliers' power increases in their families and communities once they have access to better education and income, and they voice their opinions more often. With a gender analysis perspective, women entrepreneurs can understand their gender-based obstacles and their impact on diverse suppliers in more diverse dimensions. While the majority of entrepreneurs surveyed did not experience gender gaps in conducting their own businesses, this may be attributed to their high level of education and relatively easy access to essential assets needed to start and operate a business. Most of them have been bootstrapping their enterprises and have not relied much on external resources to grow their businesses. However, it is worth noting that only 18.6 percent of women in Thailand have obtained an undergraduate degree or higher, despite around one-third or more of MSME entrepreneurs having graduated at that level (National Statistical Office of Thailand, 2019); (OSMEP, 2019). This implies that the perspectives of the MSME representative informants may not fully encompass business owners who have limited access to education and knowledge. Nonetheless, it is clear that different types of businesses can influence gender gap perspectives, such as those in fashion and crafts that are often seen as female-dominated, potentially leading to a shift in power towards female entrepreneurs. Some respondents have also commented on this topic. In conclusion, it is crucial to introduce and consider diverse perspectives and data reflecting gender gap issues in Thailand to policymakers, large enterprises and MSMEs, using gender and intersectionality analysis, to facilitate the development of gender-responsive policies, such as gender-responsive procurement. By relying on just a few sides of statistics or direct experiences, stakeholders may not be fully aware of the existence, dimension, and depth of gender gaps in businesses in Thailand. This could cause them to miss an opportunity to be a part of promoting more opportunities for WOBs and GREs through gender-responsive policies (GRP). It's important to consider a range of data and perspectives to develop a more complete understanding of gender gaps in businesses in Thailand.
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Chapter 4 Survey Findings of MSMEs This section of the report presents the findings of the quantitative study conducted as part of a rapid assessment. A questionnaire was used to collect data from the micro, small, and medium enterprises (MSMEs) and the sellers in gender responsive procurement (GRP) ecosystem. A total of 905 samples were obtained. Of the total, 319 samples of MSMEs across different industries, such as consumer goods, tourism, and others, participated in the survey. The survey results were then analyzed and categorized into the following six sections: ● ● ● ● ● ●
Section 1: General Information Section 2: MSME Views on Gender Equality and Diversity Section 3: Problems and Obstacles Faced by MSMEs Section 4: Obstacles in Accessing Government and Large Enterprise Procurement Section 5: Support Received by MSMEs Section 6: MSME Opinions on Gender-Responsive Procurement (GRP)
Section 1: General Information This section provides an overview of the survey respondents and the enterprises they represent. It covers the background and business information of the sample of enterprises included in the study, including the demographic information of the respondents such as age, gender, and business experience. The section also includes a profiling of the MSMEs participating in the survey. Its purpose is to give a summary of the enterprises and respondents included in the study. Figure 4 - 1 Number and portion of respondents by position Authorized signatory, 7, (2.19%)
Others, 13, (4.08%) CEO, 65, (20.38%)
Officer, 69, (21.63%)
Manager, 9, (2.82%)
Founder or CoFounder, 48, (15.05%)
Director, 3, (0.94%) Lead of the community enterprise, 57, (17.87%)
Managing Director, 48, (15.05%)
Out of the 319 respondents to the survey, representatives of the MSMEs could be divided into three groups. The majority of them were owners or held top management positions such as chief executive officer (CEO), managing director (MD), founder, co-founder, or lead of the community enterprise, accounting for almost 69 percent of the respondents (218 people). The second-largest group consisted of high-level management who may not hold ownership of the enterprise or have the highest authority, such as managers, directors, and officers. This group accounted for almost 28 percent or 88 people. The last and the smallest group identified themselves as “others” and accounted for 4 percent (or 13 person). The data suggests that the
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majority of respondents are in positions to directly reflect their enterprise's circumstances and direction. Figure 4 - 2 Number of respondents by age group 80
73 69
Number of respondents
70
69
60
54
50 40 28
30
22
20
10
2
2
0 <25
25-34
35-44
45-54
55-64
65-74
75+
N/A
Age group
By separating the respondents based on different age groups, the analysis shows that the major age group of the respondents are scattered between 25 to 54 years old, with around 69 to 73 people per group. The highest respondents are among the following age groups: 25-34 years (73 pax), 35-44 years (69 pax), and 45-54 years old (69 pax) respectively. The number of respondents over 65 years old decreases dramatically, with only two people in the age group over 75, compared to 28 people in the age group of 65-74 years. However, 22 respondents did not want to specify their age. Figure 4 - 3 Number and portion of respondents by gender LGBTQ+, 5, (1.57%)
Male, 68, (21.32%)
Female, 246, (77.12%)
Since this survey focused on WOBs and GREs, the data analysis reveals that the majority of the respondents are female, accounting for 77.12 percent or 246 respondents. The male enterprise representatives accounted for only 21.32 percent of the sample, with 68 respondents. Only 1.57 percent or 5 respondents identified themselves as LGBTQ+. A large portion of women responded to the survey.
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Figure 4 - 4 Number and portion of MSMEs according to OSMEP’s definition N/A, 4, (1.25%)
Medium/Trade and service, 4, (1.25%) Small/Trade and service, 42, (13.17%)
Micro/Trade and service, 71, (22.26%)
Medium/Manufacturing, 6, (1.88%)
Micro/Manufacturing, 152, (47.65%)
Small/Manufacturing, 40, (12.54%)
Based on the definition of SMEs provided by the Office of Small and Medium Enterprise Promotion (OSMEP, 2019), this research categorizes businesses based on operational sectors of manufacturing, trade, and service. The size of businesses in each sector is further categorized based on their revenue and number of employees. Results from the survey show that 62.07 percent or 198 companies are in the manufacturing sector. Of the total, 152 are categorized as micro, 40 small, and 6 medium-sized enterprises. The trade and service sector accounts for only 36.68 percent or 117 companies. Of the total, 71 are categorized as micro, 42 small, and 4 medium-sized enterprises. Grouping the responding enterprises into three categories, micro enterprises make up the largest group at almost 70 percent (223), followed by small enterprises at 25.71 percent (82), and medium-sized enterprises accounting for 3.13 percent (10). It is important to note that the previous task of this project involved combining the presence and profile of micro, small, and medium enterprises (MSMEs) (see Appendix 2), which was used for creating a list of enterprises list invited to participate in the survey. According to the profile of 526 MSMEs, 39.3 percent are micro businesses, 33.4 percent are small businesses, and 13.5 percent are medium-sized enterprises. Results showed that micro and small enterprises actively participated in the survey, unlike those who are medium-sized enterprises. Figure 4 - 5 Number and portion of MSMEs by industry sector Others, 108, (33.86%)
Consumer goods, 179, (56.11%)
Tourism, 32, (10.03%)
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In this study, WE RISE Together (WRT) project would like to focus on understanding enterprises from consumer goods and tourism industries as well as MSMEs from the ‘other’ industry. When dividing 319 MSMEs participated in the survey, the data indicates that enterprises from consumer goods sector is the majority group in this study, consisting of 56.11 percent (179). Following by 33.86 percent or 108 companies from other industry sector companies, and 10.03 percent (32) are from the tourism sector. Compared to the proportion of MSMEs from the presence and profile data, companies from the consumer goods sector accounted for 37.64 percent, which is almost equal to the proportion of enterprises from other industries at 36.5 percent. In contrast, MSMEs from tourism industry represented the smallest group at 25.86 percent. Results from the survey suggested that MSMEs from the tourism industry did not respond well to the invitation, compared to the other two sectors and might not be large enough to generalize the results.
Number of enterprises
Figure 4 - 6 Number of enterprises by number and types of employees 200 180 160 140 120 100 80 60 40 20 0
173
104
100
61
22
11 0
34
33 2
1-5
6-10
8
53
86
03
34
00
11-15 16-20 21-25 26-30 31-35 36-40 41-45 46-50
20
1317
8
51+
N/A
00
Number of employees Permanent
Temporary
The survey results showed that the majority of MSMEs (around two-thirds) have up to 10 permanent employees. The remaining enterprises had 11-20 permanent employees. On the other hand, more than half of the businesses surveyed (57 percent) did not have any temporary employees. The rest had 1-10 temporary employees. Only a small percentage of businesses surveyed (around 5 percent) have more than 50 permanent or temporary employees. Notably, 11 businesses surveyed did not have any permanent employees and are solely operated by their owners. These findings aligned with OSMEP's definition of MSMEs in the previous section, where almost 70 percent of the surveyed enterprises are classified as "micro" with a small number of "medium-sized" enterprises.
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Figure 4 - 7 Number and portion of MSMEs by legal entity Community enterprise, 82, (25.71%) Ordinary partnership, 4, (1.25%)
Ordinary person, 39, (12.23%)
Limited partnership, 1, (0.31%) Foundation, 2, (0.63%)
Others, 20, (6.27%)
Group of persons, 3, (0.94%)
Others, 10, (3.13%)
Company limited, 178, (55.80%)
The legal entity of MSMEs is important to understand their registration with the government, as different status types can affect their reliability and accessibility to procurement systems. The Thai government's e-Government Procurement System (e-GP) and Thai SME-GP do not limit the entity of bidders to only juristic persons (The Comptroller General's Department, 2022), (OSMEP, 2022). The legal status of MSMEs can provide insight into their ability to participate in procurement systems. According to the survey data, the majority of the 319 enterprises, accounting for 55.8 percent (178), are registered as company limited. Community enterprises constitute 25.71 percent (82), while ordinary person registration accounts for 12.23 percent (39). The remaining enterprises are categorized as ordinary partnership (4), limited partnership (1), foundation (2), group of persons (3), and others (10). Figure 4 - 8 Number of enterprises and respondent experience by years in business
Number of enterprises
120
112 96
100
87 80
80
70
60 40
35
32
27
25 15 12
20 0 2
8 7
10 9
16-18
19-21
9 2 0
0 0
1-3
4-6
7-9
10-12
13-15
22+
N/A
Year Years in business
Respondent years of experience
Results on years in business experiences of the enterprises and the respondents in this study are important to understand the different needs of entrepreneurs for their capacity building and
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their possible experience in accessing procurement systems. In addition, older or more experienced individuals may have faced different barriers and societal attitudes in the past, which could have affected their ability to establish or grow their businesses. The survey results show that most companies or business owners have less than 10 years of experience, with the highest frequency for business age and years of experience being 7-9 and 4-6 years, respectively, which is consistent with the average years of experience (7.04 years). However, for years in business for the enterprise, the average is around 9.87 years, as it is possible that some businesses existed before the respondents joined the company. It is worth noting that the trend of business age aligns with years of experience, suggesting that most respondents whether the owners or employees may not have had prior experience in managing a company. Figure 4 - 9 Number and portion of MSMEs that is WOBs by sector WOBs - Others, 83, (26.02%) WOBs - Tourism, 27, (8.46%)
Other, 47, (14.73%)
At least 20% ownership + top leadership position, 27, (8.46%)
At least 30% of BoD , 13, (4.08%) None, 7, (2.19%) WOBs - Consumer goods, 162, (50.78%)
In this study, the definition of woman-owned business (WOB) is based on the International Finance Corporation's (IFC) criteria (IFC, N.A.), which refers to two qualifications of the MSMEs. To be considered as a WOB, an MSME must have 1) at least 51 percent ownership by women (definition I) or 2) has at least 20 percent female ownership with at least one woman in a top leadership position, and at least 30 percent of the board of directors composed of women, where a board exists (definition II). Out of the total sample of 319 companies, 272 companies or 85.26 percent were recognized as WOBs. Among these WOBs, the consumer goods industry had the highest representation with 162 companies, followed by other industry sectors with 83 companies, and the tourism industry with 27 companies. Of the 47 non-WOBs, only 7 failed to meet any of the criteria. The remaining 40 companies met at least one of the criteria, suggesting that they could become WOBs if they increase the number of women in ownership, high-level management positions, or board membership.
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Figure 4 - 10 Number of MSMEs that is WOBs by sector and definition 0
20
Others
60
80
100
120
140
160
138
Consumer goods
Tourism
40
24 19 8 33 50
WOBs - Def I
WOBs - Def II
Based on the definition I, a woman-owned business, 190 companies or 59.56 percent were qualified as WOBs. Most of these companies belonged to the consumer goods industry (138), followed by other industries with 33 companies, and the tourism industry with 19 companies. If considering enterprises based on the definition II, 82 companies or 25.71 percent were considered WOBs, with most of them from other industry sectors (50), followed by consumer goods (24) and tourism industry (8). Summary Overall, findings from Section 1: General Information indicate that the majority of the surveyed companies are WOBs, there is a significant imbalance in the distribution of demographics among them. This disparity is evident in various demographic factors, including respondent gender, registration entity, years of experience in business, business size, and industry sector. Specifically, the data showed that majority businesses surveyed are micro and small enterprises, accounting for approximately 70 percent and 25 percent, respectively. More than half of the samples are in consumer industry, while only about 10 percent are companies in tourism industry. It is crucial to acknowledge that such an uneven distribution of demographics in the sample may potentially lead to misinterpretation and generalization of the survey results. For instance, it may be challenging to generalize the overall average score to a medium-sized business since medium-sized businesses accounting for only 5 percent from the total enterprises. Moreover, the small sample size makes it challenging to draw accurate conclusions for any specific group.
Section 2: MSME Views on Gender Equality and Diversity The purpose of is to understand the level of interest in gender equality and women’s empowerment among respondents, particularly in their role as employers and business owners, as well as their perceptions of the situation in Thailand. This section summarizes the policies and practices implemented by MSMEs to promote gender equality and women’s empowerment, and presents the opinions of respondents on these topics. The aim is to provide insight into the level of awareness and commitment of companies towards promoting gender equality and women’s empowerment, as well as the policies and practices they currently have in place for their employees. In addition, the way they perceive gender equality and diversity could potentially indicate their interest in participating in gender-responsive procurement (GRP).
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Figure 4 - 11 Number and portion of enterprises by having policy or practices in gender equality and diversity 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Promoting gender equality and diversity in the 4 workplace Non gender discrimination in hiring and in the 5 workplace
313
2
312
2
Anti-sexual harassment 4
298
17
Paying equal numeration for work of equal value 6
312
1
Providing professional development based on female 5 and other genders
310
4
Having other related policies and practices 2 27 Policy
Practices
290 None
Figure 4 - 11 provides an overview of policies or practices (without written policies) used by MSMEs to promote gender equality and diversity in the workplace, including nondiscrimination in hiring and at workplace, anti-sexual harassment measures, equal pay for equal work, and professional development that meets the needs of women and other genders. The figure reveals that a vast majority of companies surveyed (around 90-95 percent) reported having practices aimed at promoting gender equality and diversity, but only a few have written policies in place, which indicates a lower level of commitment. However, anti-sexual harassment is the least commonly mentioned policy or practice. Notably, 17 companies reported having no policies or practices in place to address sexual harassment, which is a higher number than for any other topic (1-5 companies). Moreover, only 29 companies (around 10 percent) reported having another policy or guideline, but most of them did not clearly specify their actions. As a result, even though approximately 85 percent of the surveyed companies are WOBs, only around 6 percent of them qualified as gender responsive enterprises (GREs) that incorporate gender equality into their policies and practices, in compliance with the Women's Empowerment Principles of UN Women, the standards of the International Labour Organization, and other international benchmarks (UN Women, n.d.). This demonstrates that MSMEs owned or led by women may not necessarily have a policy to promote gender equality and diversity. The result of the survey is consistent with previous profiles of 526 MSMEs through a desk research, which have shown that approximately 9.5 percent of MSMEs are GREs.
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Figure 4 - 12 Views on Thailand’s gender equality and diversity situation 1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
WOBs can compete on an equal footing with MOBs.
4.57
Promoting G&D has positive impacts on both the economy and society.
4.54 4.06
The Thai business sector is placing great emphasis on G&D.
3.87
WOBs are subject to the same procurement success as MOBs.
2.52
WOBs face fewer business opportunities than MOBs.
1 = Strongly disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly agree
In Figure 4 - 12, the average scores were calculated using the 5-point Likert scale from strongly disagree (1) to strongly agree (5). For the acronyms, 'MOBs' stands for men-led or men-owned enterprises, and 'G&D' stands for gender equality and diversity. The average scores were calculated using a 5-point Likert scale, from strongly disagree opinion (1) to strongly agree opinion (5). The findings suggest that the respondents have a positive perception of the gender equality situation in Thailand, as indicated by their high levels of agreement that women-owned businesses have the same ability to conduct business as MSMEs owned or led by men (score 4.57) and that promoting gender equality contributes to economic and social development (score 4.54). This positive perception is also reflected in the high average agreement score for the statement that the business sector in Thailand places great emphasis on gender equality and diversity (score 4.06). However, the survey results also indicated that there were challenges facing women-owned businesses in the procurement process. There were fewer respondents agreed on WOBs awarded as many contracts from governments or large corporations' procurement as their male counterparts (score 3.87). On the other hand, respondents disagreed less that WOBs had fewer business opportunities than men-owned or led businesses, as reflected in the approximate middle score for this statement (score 2.52), which suggested a less balanced gender equality situation.
50
Figure 4 - 13 Number and portion of respondents giving scores on Thailand’s gender equality and diversity situation 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% WOBs can compete on an equal footing with MOBs.
27
82
210
Promoting G&D has positive impacts on both the economy and society.
26
95
198
The Thai business sector is placing great emphasis on G&D. 13
WOBs are subject to the same procurement success as MOBs.
79
18 33
Disagree
54
93
WOBs face fewer business opportunities than MOBs.
Strongly disagree
129
Neutral
78 92
Agree
107
Strongly Agree
132 51
41
4 42
N/A
Based on number and portion of respondents to the given statements, it can be observed that more than 90 percent of them agreed or strongly agreed that WOBs could compete equally with MSMEs owned and led by men, and gender equality and diversity contributed to society and economy. When asking about business sector’s emphasis on promoting gender equality and diversity, less percentage of respondents agreed or strongly agreed with the statement at around 75 percent. On the other hand, over 15 percent of respondents strongly disagreed or disagreed that womenowned businesses succeed equally in procurement compared to men-led or men-owned enterprises. Although nearly 60 percent of respondents felt that WOBs did not have fewer business opportunities compared to their male counterparts, around 25 percent of them agreed or strongly agreed with the statement. These findings suggested that some respondents perceived gender inequality in the procurement process and access to business opportunities. Furthermore, similar to the results of in-depth interviews with MSME representatives, most of entrepreneurs' views on gender equality are generally positive, but they may not comprehensively incorporate gender analysis and intersectionality. For example, when discussing the statement that women-owned businesses (WOBs) are subject to the same procurement as men-owned businesses (MOBs), data from Figures 4-18 and 4-27 indicate that approximately 70 percent of respondents have never accessed the procurement system, whether with the government or large enterprises. This suggests that entrepreneurs' views may lack of consideration of practical experience and participation and other domains of the gender analysis framework (GAF) of Jhpiego (Jhpiego, 2016).
Summary Overall, the survey results from this section show a generally positive attitude towards gender equality and diversity among the respondents. Nonetheless, it is recognized that more efforts are needed to raise awareness and promote alternative intersectional gender gap perspectives to support equal opportunities for women-owned businesses, particularly in terms of procurement and business opportunities. Gaining a comprehensive understanding of gender gap issues in businesses, including the various challenges faced by WOBs across
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different sectors, their ability to access key resources, their economic status, their geographical location, and other intersectional backgrounds, can help stimulate WOBs to recognize the value of participating in the GRP program in the future. Many companies reported having guidelines for gender-related issues such as equality and diversity in the workplace, non-discrimination, anti-sexual harassment, and equal pay for equal work. Having these practices is a good start, but it is not enough to ensure that they are understood, followed, and enforced. By implementing policies, companies can demonstrate their commitment to gender equality and diversity and hold themselves accountable for their actions. Therefore, it is crucial to encourage MSMEs to move beyond guidelines and commit to issuing policies that will facilitate more effective implementation and enforcement of gender equality and diversity practices.
Section 3: Problems and Obstacles Faced by MSMEs The aim is to identify the challenges and obstacles that micro, small, and medium enterprises (MSMEs) encounter, as well as strategies employed by business owners to overcome these issues. By exploring and understanding these challenges, the results can provide potential solutions to assist MSMEs in Thailand to overcome obstacles. Figure 4 - 14 Number and portion of MSMEs having problems and obstacles 0%
5%
10%
Access to funding
20
4
Market penetration
21
2
Lack of skilled labor
16
Lack of necessary technology
2
10
Lack of business knowledge and skills
7
Lack of legal knowledge
4
Lack of reputation and credibility
3
1 1
Access to business network
3
2
Cashflow
4
1 1
5 5 10
4
3
3
Others
18 Consumer goods
Tourism
2
3
Others
When asked about the MSMEs’ current problems or challenges, the majority of companies did not report facing significant issues. Less than 10 percent of them mentioned that they encountered the listed problems or challenges. The most commonly cited challenges were difficulties in accessing funding, targeting and penetrating markets, and a lack of skilled labor. Each accounted for approximately 9 percent. Other challenges such as a lack of business knowledge and skills, reputation and credibility, access to business networks, or cash flow management were found to be less common. These results were noteworthy because several of these challenges were typically encountered by many MSMEs (OSMEP, 2018). However, only a small proportion of the surveyed companies faced them.
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Remarkably, the responses from the survey diverged from those obtained through in-depth interviews with business owners, who provided detailed insights on their current business problems. This disparity may be attributed to the different approaches used in data collection. In-depth interviews often involve ice-breaking conversations to put interviewees at ease and allow for probing questions to gain deeper insights. In contrast, the survey mainly relied on structured closed-ended questions to group answers and analyze them for generalization of respondents. Additionally, interviewees observed that respondents did not report significant challenges in their businesses during the period of economic recovery from the COVID-19 pandemic, despite some having been hit hard by the crisis. This finding may have contributed to respondents' generally positive outlooks and a lack of urgency in dealing with key challenges after having previously operated their enterprises in survival mode.
Figure 4 - 15 Number and portion of MSMEs that currently has following actions 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Selling on online platform(s)
159
Attending government’s capacity building program
96
28 10 40
Developing its own selling platform
79
21
Attending large company’s capacity building program
74
8 32
Joining government’s business competition or incubation
87
7 16
Joining large company’s business competition or incubation
51
Fund raising
19 210
Consumer goods
91
42
414
Tourism
Others
When focusing on current initiatives of each MSME, the results showed that nearly 90 percent of the companies expanded their sales through online platforms like Shopee, Lazada, or Facebook. Additionally, 30-40 percent of the surveyed enterprises developed their own selling platform like their own websites, attended government or large company’s seminars to enhance their business knowledge, and participated in their competitions or incubator programs. However, only 10 percent of MSMEs made an effort to secure funding through investors or crowdfunding platforms. Some MSMEs stated that in order to tackle the problem and overcome the obstacles, they tried to reduce costs, hired more skilled workers in specialized areas and trained new employees for specific tasks. They also planned to increase advertising and publicity budget to reach wider audiences and build credibility while improving market access. However, some MSMEs still believed that their challenges could not be solved.
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Figure 4 - 16 Number and portion of MSMEs that currently has following actions by industry sector 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Selling on online platform(s) Attending government’s capacity building program Developing its own selling platform Attending large company’s capacity building program Joining government’s business competition or incubation Joining large company’s business competition or incubation Fund raising
Consumer goods
Tourism
Others
When looking at the detail by industry sector, the study found that the methods of improvement applied by businesses varied by industry sector. The consumer goods and other sectors tended to focus on selling their products and services through existing online platforms. Tourism sector tended to sell on both of their own-developed and online existing selling platforms. Additionally, MSMEs in the consumer goods industry are more competitive and active in seeking out new knowledge, compared to other sectors, by joining in more several competitions, incubation programs or other capacity building programs. Summary To summarize, Section 3 presents intriguing findings. Despite many companies not reporting any major challenges, potentially due to having simply survived the economic downturn caused by the COVID-19 pandemic, they are still taking proactive steps to improve their businesses, increase funding, enhance competitiveness, and explore new opportunities. These actions are driven by the desire to stay competitive in the market and achieve growth and expansion, even in the absence of any significant business problems or challenges. However, it is important to note that if companies lack clear understanding or ability to identify specific challenges and obstacles, their efforts to improve their businesses may not be effectively targeted. This may be a reason why there are so many enterprises in the survey that do not specify any challenges but have many methods to improve their enterprise. In some cases, businesses may be trying various approaches without a clear understanding of the underlying issues that need to be addressed. This can result in a lack of progress or ineffective problem-solving.
Section 4: Obstacles in Accessing Government and Large Enterprise Procurement The purpose is to understand the interest, experience, challenges, and obstacles of MSMEs in the procurement process with government and large companies. Additionally, the study aims to determine the strategies employed by business owners to overcome these issues. The survey results will offer a more comprehensive understanding of the challenges faced by MSMEs in Thailand in accessing the procurement process, as well as their readiness to participate in
54
gender-responsive procurement (GRP). The findings will also suggest potential solutions to help these enterprises overcome these challenges. Accessing to government procurement Figure 4 - 17 Portion of MSMEs by Thai SME-GP registration status N/A, 13, (4.08%)
Consumer goods, 25, (7.84%) Registered, 46, (14.42%)
Not registered, 260, (81.50%)
Others, 17, (5.33%) Tourism, 4, (1.25%)
MSMEs in Thailand can easily access government procurement by registering with the Thai SME-GP platform, created by the Office of Small and Medium Enterprises Promotion (OSMEP). The 2020 Ministerial Regulations2 require government agencies to procure at least 30 percent of goods or services of their annual budget from registered SMEs, who also receive a price advantage of up to 10 percent (Thai SME-GP, 2022). Therefore, unregistered SMEs miss out on the opportunity to benefit from this promotion scheme. However, survey results showed that accessing the government procurement process remained a challenge for MSMEs. Out of 319 MSMEs surveyed, only 46 companies, or 14.42 percent, were registered with the Thai SME-GP system. The registered companies were primarily from the consumer goods industry, with 25 registered companies. Meanwhile, the remaining 21 were from tourism and other sectors. Over 80 percent of the MSMEs surveyed did not participate in the Thai SME-GP system and could miss out on business opportunities from government procurement. Figure 4 - 18 Portion of MSMEs by joining government procurement experience N/A, 14, (4.39%)
Winning procurement bids , 62, (19.44%)
Losing procurement bids , 14, (4.39%)
Never participated , 229, (71.79%)
2
Issued by the Comptroller General's Department
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While listing on Thai SME-GP can be helpful, it is not the only way for MSMEs to participate in government procurement. The study indicated that 76 companies or 23.82 percent of respondents participated in government procurement. The number is higher than the number of companies registered with Thai SME-GP (46 companies). Some of them could access the government procurement before the promotion scheme launched in 2020. Moreover, among the 76 companies that participated in government procurement, 62 companies (81.58 percent) were successful in winning procurement bids. Only 14 companies (4.39 percent) were unsuccessful. However, out of 319 MSMEs surveyed, 229 (accounted for 72 percent) never participated in the government procurement before or after the SMEs promotion scheme.
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Figure 4 - 19 Number and portion of MSMEs by joining government procurement experience and industry sector 0% Consumer goods
10%
20%
31
10
Tourism
30%
20
50%
60%
70%
80%
90% 100%
138
11
Others
40%
1
20
3
85
Winning procurement bids
Losing procurement bids
Never participated
Upon close examination of the data, it can be observed that there is not a significant difference in the percentage of companies participating in government procurement between the consumer goods industry and other industry sectors. The proportion of participating companies in these sectors ranges from 21-23 percent. However, the tourism industry has a higher proportion, with an average level of 37.50 percent. It is important to note that the tourism industry may have different characteristics and that the sample size for this sector in the survey is relatively small. Figure 4 - 20 Number and portion of MSMEs by joining government procurement experience and business size 0%
Micro
10%
20%
32
11
Small
25
Medium
3
30%
Winning procurement bids
40%
50%
60%
70%
80%
90%
100%
180
2
55
1
6
Losing procurement bids
Never participated
Additionally, it is apparent that the size of the business may play a significant role in participating in government procurement, with the highest percentage of participation coming from medium-sized enterprises, followed by small and micro-sized enterprises, accounting for approximately 40, 33, and 20 percent, respectively. It is worth noting that micro-sized businesses have the largest number of participants. Their sample size is much larger (223 enterprises). Moreover, drawing strong conclusions about the proportion of participation in medium-sized enterprises is difficult since their total sample is small (10 enterprises). The following study will be divided into three parts, focusing on MSMEs that participate in government procurement and been awarded the contract, those that have lost the bids, and those that have never participated in the process. The aim is to identify the challenges faced by
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MSMEs in the procurement process with the government, as well as the strategies employed by business owners to overcome these issues. ● Winning bid MSMEs Figure 4 - 21 Winning bid MSMEs’ problems with government procurement 0%
5%
10%
15%
20%
25%
13
Document Complexity
8
Delivery Complications and Work Acceptance Checks
Long Credit Terms
5
Production Capacity Insufficiency or Service Complications
5 3
Others
Of the total 62 MSMEs winning government procurement bids before, the majority (80-95 percent) did not encounter any issues with the process. Among the challenges faced by MSMEs, the most significant problem (20.97 percent, 13 companies) is the complexity of document preparation, followed by complications in work delivery and acceptance checking (12.90 percent, 8 companies). Long payment periods and insufficient production capacity or service complications account for only 8.06 percent or 5 companies. In summary, this group of MSMEs who had previously participated in government procurement were comfortable with the process, with only a few encountering difficulties in the system especially in documentation. Figure 4 - 22 MSMEs' adjustment to government procurement process 0%
10%
20%
30%
Adjusting document preparation
40%
50%
60%
36
Expanding production capacity
32
Getting other sources of funds adding to cash flow
29
When examining the improvement process of companies, out of the 62 MSMEs that won government procurement bids before, the survey results indicate that approximately 45-60 percent of companies have made progress in various areas. The most commonly employed improvement process is the preparation of documents according to the government's requirements (36 companies, 58.06 percent), followed by expanding production capacity (32 companies, 51.61 percent) and sourcing funds during the long waiting payment period (29 companies, 46.77 percent).
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These findings align with the results obtained in section 3, which indicate that most respondents believe their companies do not face significant obstacles but are continuously striving to improve their processes and businesses to enhance their competitiveness. Figure 4 - 23 MSMEs' adjustment to government procurement process by industry sector 0%
10%
20%
30%
40%
50%
60%
70% 64.52%
Adjusting document preparation
45.45% 55.00% 54.84% 54.55%
Expanding production capacity
45.00% 51.61% 54.55%
Getting other sources of funds adding to cash flow
35.00%
Consumer goods
Tourism
Others
Upon analyzing the survey results, it can be observed that the methods of improvement applied by businesses is varied. there are different numbers of MSMEs in each industry that previously won bidding on government procurement. A total of 31 enterprises are the consumer goods industry, 11 enterprises are in the tourism industry, and 20 enterprises are in other sectors. The consumer goods industry employed the most improvement in almost every aspect, with document preparation being the most frequently adopted method (64.52 percent). In contrast, the tourism industry was more focused on sourcing funds during the long waiting payment period and expanding service capacity. Both methods had a response rate of 54.55 percent. It is important to note that the other industry sector had the least responses regarding sourcing funds, with only 35 percent of companies employing such method for improvement. ● Losing bid MSMEs Figure 4 - 24 Reasons why MSMEs lost bids in Government Procurement 0%
5%
10%
15%
20%
Failure to meet standard requirements
5
Inability to compete on price
5
Lack of business connections
3
Inexperience in business
1
Lack of credibility as a WOB
1
Insufficient business size Others
2
59
25%
30%
35%
40%
The study obtained opinions from 14 companies that participated in the government procurement process but were not awarded contracts, regarding possible reasons for their rejection. However, due to the small sample size, it may be difficult to draw significant conclusions from these findings. Of these companies, the majority (5 companies, 35.71 percent) cited their inability to meet high product quality standards or compete in terms of price as the main reasons for not being selected. Additionally, three companies reported a lack of business connections, while only one respondent mentioned a lack of business experience or credibility as a woman-owned business. These findings suggested that most business owners did not perceive inequality in the procurement process as the main reason for rejection. Instead, they attributed their lack of success to issues such as product quality or price competitiveness. In terms of the improvement process for the companies that did not win the bids, the survey results showed a lower level of improvement compared to the winning companies. Out of 14 companies, only three attempted to improve the quality of their product or service to meet the standard requirements. Additionally, only one company for each category participated in seminars or competitions to enhance their business knowledge and reputation. ● Interest of MSMEs in government procurement Figure 4 - 25 Interest of MSMEs in participating in government procurement: portion of MSMEs that have never attended procurement
N/A, 38, (15.64%)
Interested, 112, (46.09%) Not interested, 93, (38.27%)
The study found that out of 243 companies that had never participated in the government procurement process, 112 companies (46.09 percent) expressed their interest in participating in the system. On the other hand, 93 companies did not show interest in participating, while 38 companies did not provide any answer. These findings suggest that there is a significant interest among companies to participate in government procurement.
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Figure 4 - 26 Interest of MSMEs in participating in government procurement: portion of MSMEs that have never attended procurement by industry sector 0%
10%
20%
30%
40%
Consumer goods
50%
60%
62, (44.93%)
Tourism
7, (35.00%)
Others
43, (50.59%)
The data on industry sectors showed that the interest of MSMEs in participating in government procurement varied across sectors. The "other" sector had the highest interest, with 50.59 percent of the sample expressing interest, followed closely by the consumer goods industry with 44.93 percent. However, the tourism industry had the lowest level of interest, with only 35 percent. The majority of respondents who expressed interest in joining government procurement cited the expansion of market opportunities as their primary reason. They believed that participating in government procurement could provide a wider customer base and enhance their reputation. Increasing revenue, as well as creating job opportunities for community members, were the key factors for these businesses to sustain their operations. In contrast, companies that are not interested in participating in government procurement have cited a variety of reasons for their reluctance. One major factor is the lack of production capacity and personnel, including skilled workers and individuals who understand the procurement system documentation and computer technology. Respondents also mentioned that they find the procurement system and documentation preparation complex and difficult to understand, with complicated writing language and too much paperwork. Some companies also feel that they already have good sales and revenue channels and do not see the need to participate in government procurement. Lastly, some companies have support from various organizations, making them feel that they do not need to join the procurement system soon.
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Accessing to large enterprise procurement Figure 4 - 27 Portion of MSMEs by joining large enterprise procurement experience N/A, 15, (4.70%)
Winning procurement bids , 51, (15.99%) Losing procurement bids , 5, (1.57%)
Never participated , 248, (77.74%)
Out of the total respondents, 56 MSMEs (17.55 percent) took part in the procurement process of large companies. This is a significantly lower number compared to the 76 companies that participated in government procurement. It is also important to note that among the 56 companies that took part in large enterprise procurement, 51 companies (91.07 percent) were successful in winning procurement bids while only 5 companies were unsuccessful. The successful rate for MSMEs winning bids in the large enterprise procurement process is 9.49 percent, which is higher than in the government procurement process. Figure 4 - 28 Number and portion of MSMEs by joining large enterprise experience and industry sector 0%
Consumer goods
10%
25
Tourism
Others
20%
30%
40%
5
50%
60%
80%
90%
100%
149
10
22
16
Winning procurement bids
70%
92
Losing procurement bids
Never participated
In-depth data examination reflected that there was not any significant difference in the percentage of companies participating in large enterprise procurement between the consumer goods industry and other industry sectors. The proportion of participating companies in these sectors ranged between 14 and 17 percent. However, the tourism industry has a higher proportion, with an average level of 31.25 percent. It is important to note that the tourism industry may have different characteristics and that the sample size for this sector in the survey is relatively small. Additionally, the consumer goods industry was the only sector in this survey that had five companies unsuccessfully participating in the bidding process.
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Figure 4 - 29 Number and portion of MSMEs by joining large enterprise procurement experience and business size 0%
Micro
Small
10%
21
20%
30%
40%
50%
4
60%
70%
80%
90%
100%
198
22
1
Medium
59
6
Winning procurement bids
4
Losing procurement bids
Never participated
Additionally, it is apparent that the size of the business could play a significant role in participating in large enterprise procurement. The highest percentage of participation coming from medium-sized enterprises, followed by small and micro-sized enterprises, accounting for approximately 60 percent, 28 percent, and 11 percent, respectively. It is worth noting that micro-sized businesses have the largest number of participants as their sample size is much larger (223 enterprises). Moreover, drawing strong conclusions about the proportion of participation in medium-sized enterprises is difficult since their total sample is small (10 enterprises). The following study will be divided into three parts, focusing on micro, small, and medium enterprises (MSMEs) participating in large procurement and winning the bids; those losing the bids, and those having never participated in the procurement process. The aim is to identify the challenges faced by MSMEs in the procurement process with large companies and the strategies employed by business owners to overcome these issues. ● Winning bid MSMEs Figure 4 - 30 Winning bid MSMEs’ problems with large enterprise procurement 0%
2%
4%
8%
10%
12%
5
Long Credit Terms
Document Complexity
4
SMEs' buyer-imposed compliance standards
4 2
Production Capacity Insufficiency or Service Complications
Others
6%
1
The bidding process poses challenges for all companies in general, but from the survey, out of the 51 MSMEs that won large enterprise procurement bids before, around 90-95 percent encounter no issues with large corporation procurement processes. Out of the total winning
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bidders, 5 companies (9.80 percent) reported challenges, with the most significant being long payment waiting periods. Other challenges included complex document preparation and compliance with various standards such as labor rights, sustainability, and waste management. Inefficient production or service capacity was the least reported problem, with only two companies reporting this issue. It's worth noting that most issues, except for additional requirements, occur in both government and large enterprise procurement, but the proportion is lower in large enterprise procurement. For instance, the difference in complexity of document preparation between the two is approximately 13 percent. Figure 4 - 31 MSMEs' adjustment to large enterprise procurement process 0%
10%
20%
30%
40%
50%
60%
28
Adjusting document preparation
25
Being compiled with standards and setting up policies as required
23
Joining seminar
Getting other sources of funds adding to cash flow
19
Expanding production capacity
19
A significant proportion of companies (35-55 percent) made a progress in various areas of improvement. Among the companies that won procurement bids, the most commonly used improvement method was document preparation according to large enterprise requirements, reported by 54.90 percent. This highlights the importance of understanding and meeting procurement requirements. Complying with required standards or policies for doing business with large companies is another commonly used methodology, reported by 25 companies, while joining seminars on operating with large companies is a popular method, reported by 23 companies. However, only 19 companies (37.25 percent) reported expanding production capacity or sourcing funds to improve cash flow during long waiting periods as an approach. These findings align with the results of Section 3 and government procurement in Section 4, which indicate that most MSMEs mentioned that they did not face significant obstacles but still strived to continuously improve their processes and competitiveness.
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Figure 4 - 32 MSMEs' adjustment to large enterprise procurement process by industry sector 0%
10%
20%
30%
40%
50%
60%
50.00% 50.00%
Adjusting document preparation
70%
60.00%
44.00% 60.00% 50.00%
Being compiled with standards and setting up policies as required
44.00% 40.00% 50.00%
Joining seminar
40.00% 40.00% 31.25%
Getting other sources of funds adding to cash flow
32.00% 30.00%
Expanding production capacity
Consumer goods
Tourism
50.00%
Others
Upon analyzing the survey results, it can be observed that the methods of improvement applied by businesses vary by industry sector. In each industry, there are different numbers of MSMEs that have won large enterprise procurement bids before. Specifically, there are 25 enterprises in the consumer goods industry, 10 enterprises in the tourism industry, and 16 enterprises in the other sectors industry. In the consumer goods industry, similar to government procurement, the focus is on improving document preparation with a proportion of 60 percent. However, expanding production capacity is less commonly employed, with a difference of around 23 percent compared to government procurement. In the tourism industry, entering standards or issuing necessary policies is the most common method, with a proportion of 60 percent. However, expanding service capacity is less frequently employed, with a difference of around 25 percent compared to government procurement. Other industries equally employ various methods at around 50 percent, except for sourcing more funds during the long waiting payment period, which is the least adopted, with a proportion of 31.25 percent, similar to government procurement. ● Losing bid MSMEs Figure 4 - 33 Reasons why MSMEs lost bids in large enterprise procurement 0%
10%
20%
30% 3
Failure to meet standard requirements Production Capacity Insufficiency or Service Complications
2
Inability to compete on price
2
Inexperience in business
1
Lack of business growth potential
1
Lack of credibility as a WOB
3
Others
65
40%
50%
60%
70%
It may be difficult to draw significant conclusions from the findings among the five companies that participated in the procurement process of large enterprises but were not awarded a contract due to a very small sample size. Of this group, three companies reported that their products or services did not meet the standard requirements, while one to two companies cited a lack of production capacity, price competitiveness, business experience, growth potential with the buyer, and limited business size as the main reasons for their failure. These results suggest that business owners do not generally view gender inequality in the procurement process as a major factor in their rejection. Instead, they attribute it to issues such as non-compliance with requirements or inadequate price competitiveness. Based on the survey results, the study found that out of the five companies that were not selected, three companies attempted to adjust their production or service standards to align with the requirements of large companies. Moreover, only one to two companies tried to improve their business by engaging in activities such as creating business-to-business networks to enhance their bargaining power, participating in seminars or competitions to enhance their business knowledge and reputation, and entering standards or issuing policies essential for doing business with large companies. ● Interest of MSMEs in large enterprise procurement Figure 4 - 34 Interest of MSMEs in participating in large enterprise procurement: portion of MSMEs that have never attended procurement
Not interested, 96, (43.44%)
Interested, 125, (56.56%)
Among the 221 companies that never previously participated in the procurement process of large companies, 125 companies (56.56 percent) expressed interest in participating. The rest 96 companies were not interested. These findings indicated a significant level of interest in participating in the procurement process of large companies, which is about 10 percent higher than the interest shown in government procurement. This presented an opportunity for large companies to engage with more MSMEs through GRP.
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Figure 4 - 35 Interest of MSMEs in participating in large enterprise procurement: portion of MSMEs that have never attended procurement by industry sector 0%
10%
20%
30%
Consumer goods
40%
50%
60%
69, (46.31%)
Tourism
9, (40.91%)
Others
47, (51.09%)
Interest in participating in large enterprise procurement varied slightly among MSMEs that never participated before, ranging from 41 percent to 51 percent by industry sector. The "other" industry sector was regarded as the highest level of interest, with 51.09 percent of the sample expressing interest, followed closely by the consumer goods industry at 46.31 percent. The tourism industry had the lowest level of interest, with only 40.91 percent. These results were aligned with the previous levels of interest in participating in government procurement in each industry. The majority of respondents who expressed interest in participating in large enterprise procurement cited the expansion of market opportunities as their primary motivator. Specifically, they saw participating in large enterprise procurement as a way to provide a wider channel for customers and the public to become more aware of their products and services. These businesses were particularly interested in increasing their revenue and generating more sustainable income. The respondents who were hesitant to participate in large enterprise procurement provided several reasons. A significant factor was the limited production capacity due to the small size of their businesses and the lack of personnel, including skilled workers and individuals who have expertise in preparing procurement documentation. Respondents also found the procurement system and documentation preparation process complex and difficult to understand. Furthermore, some companies were satisfied with their current sales and revenue and did not see the need to participate in large enterprise procurement. These findings align with those of respondents who expressed interest in government procurement, suggesting that the factors that influence participation are similar for both types of procurement. Summary Overall, Section 4 examined the challenges faced by MSMEs in participating in government and large enterprise procurement in Thailand. The primary challenges identified for MSMEs in government procurement were the complexity of the documentation preparation process and the product checking and delivering process for the winning bidder. The government can address these challenges by improving the procurement process and increasing communication with the business sector. MSMEs who never participated in government procurement cited a lack of production capacity and personnel as reasons for their disinterest in joining the bidding process. To
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encourage participation, the government could provide procurement requirements that take into account the limitations and contexts of micro businesses, along with capacity-building programs to help these businesses grow and develop. However, the study also found that only 14.42 percent of surveyed MSMEs take advantage of support programs like Thai SMEGP, which highlights a lack of communication between the government and target enterprises. The study also examined large enterprise procurement and found similar obstacles for winning bidders, such as long payment periods and complexity of document preparation. However, the reported problems in large enterprise procurement were comparatively smaller. While the reasons for non-participation in large enterprise procurement were similar to those encountered in government procurement, the proportion of respondents interested in participating in the large enterprise procurement process was 10 percent higher. This suggests that MSMEs owners are more willing to participate in larger enterprises procurement and view them more positively than government procurement. In conclusion, the success of GRP depends on MSMEs' ability to access both government and large enterprise procurement. Addressing the challenges faced by MSMEs in procurement requires collaboration among buyers, government or large enterprises, and seller companies to understand the procurement process and identify practical solutions together. The government can provide more tailored support to MSMEs and increase communication with them to encourage participation.
Section 5: Support Received by MSMEs This section presents the survey results of MSMEs receiving assistance or support from government agencies, large enterprises, or civil society organizations (CSOs) to improve their business operations. It also investigates their expectations for future support and examines whether there are differences between MSMEs with different identities, who may have varying opportunities or credibility in accessing government or large enterprise procurement. Figure 4 - 36 MSMEs that received support from government agencies, large enterprises, or civil society organizations 0%
10%
Financial support
39
Improving production capabilities
30%
40%
60
1
64
99
Developing innovations
80
SME network access for better procurement
Granting procurement advantages to social enterprises or gender-diverse businesses
20%
30
7 71
50%
32
38
5 13
18 3 13
Market expansion 5 4 6 Accessing women's entrepreneur networks 35 4 Others 4311 Government
Large enterprise
Civil society organizations
68
Government & Others
60%
According to the survey results, out of 319 total enterprises surveyed, demonstrate that most MSMEs had received financial support at 51.41 percent such as grants, awards, credit extension, or low-interest loans, followed by support for improving their production capabilities at 43.26 percent, and on product and service innovation development at 39.50 percent. When looking at the source of support, most MSMEs had received support mainly from government agencies. Most MSMEs received assistance from solely government agencies in improving production capabilities at 31.03 percent, followed by support for product and service innovation development at 25.08 percent, and financial support at 12.23 percent. MSMEs also received support from SME networks to access better procurement systems. They had received support to access to procurement of government agencies and large enterprises due to being social enterprises, support to expand their market, and support to access women entrepreneurs' networks at 9.40 percent, 5.64 percent, 1.57 percent, and 0.94 percent, respectively. In addition, MSMEs had also received support from government agencies in other areas, such as knowledge of labor law for business operations and of online marketing skills. MSMEs received mainly financial support from large enterprises, with a percentage of 18.81. Other types of support, such as equipment and tools for business, were provided at much lower percentages, around 1-2 percent. Civil society organizations also supported the surveyed MSMEs equally in financial support and innovations in product and service development, but by less than half a percent. Moreover, many MSMEs received support from multiple sources, with government agencies and other organizations providing financial support being the most common combination at 20.06 percent. This also included support for innovation development at 11.91 percent and support for production capabilities at 10.03 percent. MSMEs also received privileges for accessing government agency and large enterprise procurement as social enterprises and through SME networks, both at equal percentages of 4.08 percent. Figure 4 - 37 Expectations of MSMEs for receiving knowledge support 0%
10%
20%
Marketing
30%
40%
119
Accessing to funding sources
108
Product/service development
114
50%
21
77
18
76
16
70
Finance/Accounting
101
15
Domestic logistics
103
10
57
Exporting
102
10
52
Technology
94
12
57
Legal
88
15
58
Access to large enterprises’ procurement
88
8
63
Access to government procurement
84
Others
8
13 1 7
Consumer goods
Tourism
69
74
63
Others
60%
70%
When asking the MSMEs on types of knowledge support for their business operations, most MSMEs require marketing knowledge e.g. marketing strategies, and access to customers at 68.03 percent, followed by knowledge to access funding sources, such as reaching grants and low-interest loans at 63.32 percent. Moreover, MSMEs also require knowledge of product and service innovation at 62.70 percent and financial and accounting knowledge at 59.56 percent. In addition, for other support areas, around half of the survey MSMEs also require these knowledge in domestic logistics, exporting products, related technology, legal knowledge about their business operations, and access to procurement systems of large enterprises and government agencies. Moreover, MSMEs also require others support such as knowledge of communication and promotion of products and services, online marketing, and business expansion. As a result, MSMEs including consumer goods, tourism, and others, require similar knowledge support, especially in marketing, accessing funding sources, and product/service development. However, when observing require the support in access to procurement systems of large enterprises and government agencies, tourism has a lower need for this support compared to other support that they required. Figure 4 - 38 MSME’s expectations of access to the procurement of government agencies and large enterprises 0%
10%
20%
30%
40%
50%
Micro
49.33% 51.12%
Small
48.78% 48.78%
60%
30.00% 30.00%
Medium
Government procurement
Large enterprise procurement
The research team compared the support required in accessing procurement systems of large enterprises and government agencies among the sizes of MSMEs. The research team found that most of micro-sized enterprises required support in access to procurement systems most, especially to large enterprises’ procurement at 51.12 percent. Small-sized enterprises required support in accessing procurement systems of government agencies and large enterprises are similar to micro-sized enterprises at 48.78 percent. Meanwhile, medium-sized enterprises require least support in access to procurement systems of large enterprises and government agencies at 30 percent. Overall, micro and small sized enterprises required support in access to procurement systems of large enterprises and government agencies more than medium-sized enterprises.
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Summary Overall, Section 5 presents the supporting of government agencies, large enterprises, or civil society organizations that MSMEs received to improve their business operations. Most MSMEs previously received financial support, production capabilities, and innovation development for product and service. However, MSMEs have limited access to procurement systems of government agencies and large companies, which may be lacking support in SME networks, women’ entrepreneur networks, and advantage to social enterprises. Most MSMEs expect to receive the knowledge support including marketing, accessing funding sources, and product/service development. However, MSMEs that tourism sector has less support need than other sectors. This reflects that tourism may be concerned the complexity of the procurement system of government agencies and large companies.
Section 6: MSME Opinions on Gender-Responsive Procurement (GRP) Section 6 aims to present the opinions of MSMEs on promoting of women-owned businesses (WOBs) and gender-responsive enterprises (GREs) to enable better access the procurement of government agencies and large enterprises through gender-responsive procurement (GRP). Moreover, this section aims to present their willingness to develop gender-responsive policies of MSMEs. Before asking questions under this topic, the interviewer presented information about the current situation of women-owned businesses in Thailand first, for example, current WOBs situation, their challenges, and other gender circumstances in business sector to ensure they are aware of it (UN Women, 2022). Please see Appendix 1-B for an introduction to the facts and figures. Figure 4 - 39 MSMEs' views on promoting WOBs and GREs for better access to GRP 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Causing social and economic development with gender equality
19
81
219
Leading to more gender equality in government and large enterprise procurement
18
83
218
Enhancing female employees and labor potential
25
82
211
Communication to public is required on importance of GRP 23 25
93
1
196
Could cause unfair competition
109
70
Could lead to document complication
109
79
87
Strongly Agree
N/A
Strongly disagree
Disagree
Neutral
Agree
56
41
43
35 9
The survey results show the opinions of MSMEs on outcome from promoting women-owned businesses (WOBs) and gender-responsive enterprises (GREs) to enable better access the procurement of government agencies and large enterprises through the concept of gender-
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responsive procurement (GRP). A very large amount of respondents agreed and strongly agreed (with much higher portion on strongly agreed) that promoting WOBs and GREs to better access to procurement system would lead to gender-responsive social and economic development, more gender equality in both government and large corporation procurement, and enhancing potential of MSMEs’ female employees and labors. Agreement on mentioned topics from MSMEs are approximate 95 percent for these three categories. However, even though MSMEs found the concept of GRP could lead to gender equality and improvements, 90 percent of them strongly agreed and agreed that more communications to the public is essentially required to understand gender issues as well as solid benefits are the GRP. Since having a special benefit for WOBs and GREs for accessing to procurement systems, a clear understanding on their limitations have to be addressed and informed among stakeholders. In addition, there are around 25 percent of the enterprises agreed and strongly agreed that pushing forward to GRP could create unfair competition in the market from women businesswomen against male, LGBTQ+ entrepreneurs and business owners who work with people from vulnerable groups, whilst around 55 percent of them strongly disagreed or disagreed with the thought. Almost 15 percent of companies also worry that GRP will cause more complex documentation but almost 60 percent of them feeling disagreed on that. In conclusion, it is interesting that almost all respondents agreed with several positive results from the GRP. Some of them worried the initiative could cause more gender inequality and document complication. Figure 4 - 40 MSMEs’ willingness to develop gender-responsive policies to enter GRP Neutral, 21, (6.58%)
Agree, 82, (25.71%)
Strongly Agree, 216, (67.71%)
When asking MSMEs about their agreement on developing a written gender equality policy that is explicit in order to gain benefits from accessing procurement systems of government agencies and large companies that adopt GRP, approximately 93 percent (216 companies) of them strongly agreed or agreed to launch their written policy, with the majority of them felt strongly agreed, at 67.71 percent (216 companies). Only 6.58 percent (21 companies) of them felt neutral about the idea. This reflects the overall desire of most entrepreneurs to access procurement of government agencies and large enterprises through gender-responsive procurement (GRP).
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Summary Overall, Section 6 examined the Opinions of MSME on Gender-Responsive Procurement. MSMEs representing a very large amount of respondents agreed and strongly agreed that promoting WOBs and GREs to better access to procurement system would lead to genderresponsive social and economic development, more gender equality, and enhancing potential of MSMEs’ female employees. However, some of them were worried that promoting lead to unfair competition, more gender inequality, and document complication. MSMEs expected more communications to the public to understand gender issues as well as solid benefits of GRP.
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Chapter 5 Limitations of the Study There are several limitations in the study including: 5.1 Sampling frame and sampling method In this study, the sampling frame is created using several sources of data combined such as an internal source of UN Women, a list of UNGC signatories in Thailand, and member of or listed as a social enterprise with supporting organizations. This is to make the list of companies cover and reflect the target population in Thailand as much as possible. However, it is impossible to find all the information for every target company in Thailand. In this case, some companies that should be in the sampling frame might disappear. The method used for drawing samples in this study is convenient sampling, which has its main disadvantage in that it may not accurately represent the population being studied, leading to potential bias in results since the sample is not chosen randomly. Due to the limited time for the rapid assessment, respondents may have been selected based on their availability and activeness in participating in the research, as well as their convenience of being accessed through different technologies such as Zoom video calls for in-depth interviews or phone calls for the questionnaire survey. Some respondents may have been snowballed from the same business network. Therefore, it is important to note that the rapid assessment may not be able to provide a comprehensive representation of the views and experiences of all MSMEs entrepreneurs regarding WOBs' access to key resources, participation in practices, benefit gains, and perceptions and rights based on gender analysis framework (Jhpiego, 2016), as well as the application of intensive intersectionality views. The use of convenient sampling in the method of selecting participants may not represent the entire population being studied, which can lead to potential bias in the results. Moreover, the number of samples in large enterprises and government agencies or supporting organizations is low (around 5 companies per group of stakeholders). These may be underlying factors that affect the population, but are not present in the sample, causing a lack of generalizability of results to the wider population. 5.2 Quantitative questionnaire design A quantitative questionnaire is designed as a close-ended question using the pre-determined response options from an in-depth interview. The main disadvantages and limitations of this method are that it reduces flexibility by limiting the range of possible answers, potentially leading to missed information, and making it difficult to gather more detailed or nuanced information. This stands in contrast to the in-depth interview method, which allows for greater flexibility and more detailed explorations of a topic. Moreover, the questionnaire also may not adequately represent the views or experiences of the participants that lie outside of the options. 5.3 Telephone survey There are several challenges and limitations during the telephone survey conducting. The first problem is that some of the information in the current data frame is outdated or incorrect and needs to be updated. For example, some digits of telephone numbers are missing, or respondents may have already changed their phone numbers. Additionally, even if the numbers
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are correct, some respondents did not answer the phone call, did not pick up the phone, were inconvenient to interview, or were not available at the scheduled time. In some cases, respondents answered the questions in section 1 (General information) by providing information about other people, such as a founder of the company, rather than their own personal information. This can lead to inaccuracies in the data and make it difficult to draw valid conclusions from the survey results. Lastly, due to the current prevalence of telephone fraud in Thailand, many respondents are concerned that they may be contacted by scammers posing as researchers. As a result, some respondents have requested that the research team send information about the interview process before contacting them for their decision. Some respondents agreed to participate in the survey but did not want to provide their full names or ages. 5.4 Quantitative data analysis One of the primary limitations in data analysis is due to an uneven distribution of demographics among the surveyed samples, including factors such as respondent gender, registration entity, years of experience in business, business size, and industry sector. The survey data shows that the majority of businesses surveyed were micro and small enterprises, comprising approximately 70 percent and 25 percent of the sample, respectively. Additionally, over half of the sample came from the consumer industry, while only about 10 percent represented the tourism industry. It is important to recognize that this uneven demographic distribution may lead to misinterpretation and generalization of the survey results. Moreover, due to the small sample size, drawing accurate conclusions for any specific group is challenging. Another significant limitation is the challenge in explaining the findings, particularly in cases where most companies reported not facing any major challenges yet took steps to enhance their businesses, increase funding, improve competitiveness, or explore new opportunities. These findings were consistent across almost every section of the questionnaire. One possible explanation for this problem is that the questionnaire design did not undergo a large enough pilot test sample to detect this issue and make necessary adjustments to address it. In this case, the research team could consider conducting a larger pilot test of the survey to ensure that the questions are clear without any unambiguous, and to identify any possible misunderstandings or discrepancies in the result data. 5.5 Gender representation and visibility The study was primarily focused on understanding the challenges and perspectives of womenowned businesses' representatives, as there were not many studies in Thailand on this particular sample group before. Therefore, the study may not fully represent the diversity of gender among MSME owners. The perspectives of male-owned businesses' entrepreneurs may not have been heavily included or represented, and may not reflect their worldviews on genderbased constraints, implications, and opportunities in promoting gender-responsive procurement (GRP). It is important to acknowledge this limitation and consider the perspectives of all genders in future studies on GRP.
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Chapter 6 Recommendations Results of rapid assessment on capacity of the demand and supply sides of gender-responsive procurement (GRP) provide deep insights of key stakeholders in several factors influencing them to join the GRP. For example, their awareness of and attitudes towards the concepts, readiness to take GRP forward and obstacles that may get in a way. All of the information obtained are crucial for the WE RISE Together (WRT) project to prioritize stakeholder segments to work with, lay down strategies to promote GRP and mitigate risks that could happen with GRP implementation. Qualitative data was collected through interviewing with representatives from five governmental agencies, five large enterprises, and 17 MSMEs. All of them were also WOBs. To gain a wider and more generalized qualifications of MSMEs, a questionnaire survey was conducted among 319 MSMEs. Of the total, 85 percent of them are WOBs. Based on the analysis of the results of both qualitative and quantitative research from previous chapters, the research team has developed recommendations for each group of stakeholders as follows: 6.1 Working with Government Agencies As policymakers, related government agencies play a key role as central regulators. Currently, the government's agenda for GRP is mainly driven by the ASEAN's declaration to support women entrepreneurs and improve GRP (ASEAN, 2022), as well as the speedy trends of ESG that the government must apply to regulate the capital market. However, the government's agenda seems to be passive in addressing gender equality as an urgent or severe problem on its own. Compiling Comprehensive Data for WOBs To address potential skepticism from some governmental agencies who may lack direct experience with discriminated women entrepreneurs, WRT could establish a set of comprehensive data to identify the core issues faced by WOBs. This data can help to alleviate concerns about why WOBs should receive support over other vulnerable groups and demonstrate that such support would not cause inequality for other groups. This point was raised by all groups of stakeholders during the research. Segmenting WOBs into subgroups based on their specific needs and pain points could provide tangible examples for governmental agencies and WRT to prioritize their efforts and make a stronger impact in promoting GRP to those in need. Collaborating with OSMEP for Defining WOBs and GREs in Thailand As OSMEP crafts the definitions of WOBs and GREs, WRT can provide input and address concerns such as verifying real women ownership in family businesses and determining the level of detail required in gender equality policies. However, challenges arose when profiling MSMEs in the previous phase of this report. The definition of MSMEs following OSMEP definition includes enterprises, whether subsidiaries or affiliated companies of large enterprises. Large companies downsized to medium due to COVID-19, should also be counted as MSMEs, WOBs. It is important to ensure that vulnerable groups of WOBs are included in these efforts.
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Sharing International Experience on Overcoming Hurdles in Setting Up Definitions for WOBs and GREs Currently, the interviewed agencies do not have a plan to regulate GRP. OSMEP shared insights on promoting MSMEs in government procurement, such as requiring government agencies to procure at least 30 percent of goods or services from registered SMEs on Thai SME-GP. Although this legislation provides advantages for MSMEs, it may also have international trade consequences. The thing is many trade partner countries look for minimal favoritism towards a certain type of business. Thus, UN Women can provide international experience to OSMEP on how to minimize such consequences from favoring WOBs in the future. Promoting Voluntary Adoption of GRP among Listed Companies Similarly, the Securities and Exchange Commission (SEC) does not regulate GRP but encourages it on a voluntary basis. Admiring, showcasing, and awarding companies that advance in GRP could incentivize listed companies to take the initiative. The UN Women’s WEPs Awards, for example, can include a category for companies with good GRP practices. Another GRP commitment track for WEPs signatories could be added. Overall, the government procurement rules and legislation are mainly from the Comptroller General's Department. By enrolling the 2020 Ministerial Regulations, which require government agencies to procure a certain percentage from SMEs, they can explore ideas and learnings with UN Women on opening a special track for SMEs and see how WOBs could be integrated into the current platform. The Office of Social Enterprise Promotion also offers benefits for social enterprises in accessing government procurement without competing, and exploring ways to build up WOBs’ access to their current benefit could be an option. Incorporating GRP in Government Agencies' Budget Spending As buyers, government agencies follow the Comptroller General's Department’s legislation. UN Women can advocate authorities on how GRP could fit in gender-responsive budgeting (GRB), which has already been piloted in agencies such as SEC, to make a broader impact on budget spending. During the interviews, Bangkok Metropolitan Administration considered revising the qualifications of SMEs in their TORs to employ or subcontract women or vulnerable groups. WRT can explore whether this idea could be tailored to other government organizations. Enhancing Readiness of WOBs for GRP Lastly, government agencies also expressed concerns that not all MSMEs are capable of participating in procurement. WRT could minimize the time for buyers to reach WOBs by providing a list of WOBs' names and contacts that have been verified for readiness, competency, and willingness to join government GRP. Another important aspect of enhancing WOBs' readiness for GRP is to work with supporting organizations to address their capacity gaps. By collaborating with these supporting finance, knowledge, and network organizations, WRT can help equip WOBs with the necessary skills and resources to participate in government procurement.
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6.2 Working with Large Enterprises Leveraging companies with strong GRP practices as examples Large multinational companies are key players in gender-responsive procurement (GRP). According to the results of interviews conducted with their representatives, these findings are consistent with desk research and rapid assessments on the readiness for GRP, which suggest that many multinational companies have advanced policies and practices in gender equality and SD GRP, compared to Thai companies. For example, L’Oréal Thailand has been engaged in SD GRP for over ten years and in Thailand, it has tied its SD GRP targets to its employees' key performance indicators, resulting in bonus packages for staff. This indicates the company's strong commitment to achieving its targets. WRT could consider using multinational companies (MNCs) with interesting GRP stories as examples to demonstrate a strong business case for GRP and generate essential tangible and intrinsic values for the company, as well as sharing their learnings as pioneers. Showcasing and awards for corporations running GRP The interviewees also suggested that showcasing or awarding corporations running GRP on a voluntary basis would be an effective way to persuade more companies to join. Policy makers should also consider giving recognition or benefits to large enterprises implementing GRP, rather than coercing them into supporting WOBs. UN Women already has an awarding platform, such as the WEPs awards. Providing data sets to help large enterprises understand difficulties of WOBs Large enterprises follow sustainability trends, standards, and practices closely, and are aware of the importance of supporting women-owned businesses (WOBs) to reach their procurement. However, none of the Thai companies interviewed committed to launching gender-responsive procurement (GRP). They are still unclear about why they should open a special track for WOBs before other groups that could seek more support. Additionally, informing their current SME suppliers to join surveys or share private information becomes difficult when large enterprises are not yet convinced of the importance of GRP. Similar to government agencies, large enterprises also require a data set that helps them understand the difficulties of WOBs, including how to segregate WOBs into groups based on their level of problems or inequality and how to access them. This data can help them pick the right target to work with. Highlighting the Need for Education and Collaboration In contrast to governmental offices, large enterprises interviewed have made progress in understanding WOBs’ needs. Some companies conducted a series of focus group discussions with their female-owned SMEs and internal research to gain insight. These companies suggested that UN Women could voice more on these understandings because of its reputation and reliability. To help promote collaboration, UN Women could provide more education on the topic of gender equality and encourage more discussion between large enterprises and their current SMEs suppliers. Identifying Key Decision Making Factors Large enterprises have already got a robust system in managing relationships and accommodating SMEs' suppliers. If they are on board with GRP, segregating data of suppliers by gender-ownership is not too difficult. Training programs are also available, so the key decision-making factor for using GRP may not be the additional cost. Instead, it is more about
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what they will receive out of it or how they can mitigate any business risks. WRT could emphasize the benefits of GRP to convince large corporations. Encouraging Learning and Experience Sharing Networking among MNCs that have already implemented GRP with Thai large enterprises to share learning and experience in setting up and using GRP internationally and also in Thailand can help Thai companies to be more confident and be well-prepared. WRT can take the lead in organizing such networks or collaborate with other organizations to set up these kinds of platforms. Additionally, since some interviewed companies already have CSR programs promoting women’s empowerment, inviting them to do a CSR activity where they can meet WOBs can be an indirect matchmaking opportunity, such as through a short capacity-building program or a dialogue. It can provide an opportunity for both stakeholders to explore how they can work together. WRT could provide support to companies to develop such CSR programs. Preparing WOBs and GREs for GRP Implementation Preparing the necessary skills for SMEs is also required for GRP implementation. Ultimately, large companies prioritize high-quality products and services, competitive prices, the ability to meet required standards, and growth potential when choosing suppliers. WRT can prepare WOBs and GREs to be qualified for procurement through a network of current supporting organizations. This will help WOBs and GREs understand how to meet the requirements of large enterprises and prepare themselves in advance. Promoting Business Matching Finally, WOBs and GREs may need to understand large enterprises' business operations and how they can fit their products and services into those supply chains. In this case, business matching could be a good idea to have large enterprises share insights into their demands and MSME required areas. Not all products and services supplied for them can be from MSMEs. Various tracks, entry points, and benefits for suppliers can be shared so WOBs and GREs can screen potential buyers and prepare themselves in advance. WRT can take a lead in promoting business matching and encouraging large enterprises to participate. 6.3 Working with MSMES The research team conducted interviews with 17 MSMEs/WOBs in Thailand to gain insights into their perspectives on gender equality and their experiences as MSMEs. We also discussed their challenges in accessing government and large enterprise procurement, their current capacity building needs, and their views on GRP. To generalize the data for wider population, we constructed a questionnaire based on the interview results and received 319 responses. By comparing and integrating qualitative and quantitative data, we can explain MSMEs' qualifications and perspectives both by numbers and through their insights and rationales provided during the interviews. Based on the analysis of previous research, the research team recommends the following for the MSMEs group: Providing data sets to help MSMEs understand hindrances of WOBs According to our survey, almost all MSMEs recognize the positive impact of gender equality on both the economy and society (Figure 4 – 13). Additionally, around 93 percent of respondents are willing to implement a written policy on gender equality if it will lead to greater
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access to government and large corporation procurement (Figure 4 – 40). However, some business owners commented that they never witnessed the significant challenges that women entrepreneurs faced. Some women business owners also believed that other disadvantaged groups in society should receive support before them. Furthermore, one out of four MSME representatives believed that GRP could result in unfair competition (Figure 4 – 39). These diverse viewpoints reflect different perspectives on achieving equality, particularly gender equality. However, many MSMEs do not fully understand the challenges that hinder WOBs in the market and procurement systems. Therefore, it is essential for government and large enterprise groups, as well as women's rights organizations, to provide MSMEs with relevant data sets and contextualized information on gender equality. This will help MSMEs understand the rationale behind gender equality promotion, instead of solely joining the movement to gain favorable access to procurement opportunities. However, similar recommendations were also made for governmental agency and large enterprise groups based on the same GRP challenge. Creating Segmentation for MSMEs to Access GRP To prioritize the promotion of MSMEs accessing procurement systems of governments or private companies, several criteria need to be considered, such as business type, industry, size, years in business, prior fast-track opportunities, interest in procurement, and difficulty in accessing business opportunities. The selection of subgroups of WOBs and GREs should depend on WRT's strategies for prioritization. Highlighting specific subgroups of WOBs and GREs can dispel doubts about whether GRP will affect entrepreneurs in need of support. Different groups of entrepreneurs face unique hurdles at varying levels of difficulty. WOBs vs. GREs: Although both are mentioned in the GRP, the numbers of businesses in each group differ significantly. Survey results show that only 5 percent of MSMEs have a written policy on gender equality and/or women's empowerment, indicating that they belong to the GRE group (Figure 4 – 11). On the other hand, approximately 85 percent of them are WOBs (Figure 4 – 9). Consequently, WOBs are abundant and can transform into GREs if they adopt a gender equality policy and demonstrate their commitment to gender equality and empowerment. In contrast, GREs cannot easily transform into WOBs unless having at least 51 percent female ownership or at least 20 percent female ownership with at least one woman in a top leadership position. At least 30 percent of the board of directors must comprises of women, where a board exists. WRT could focus on which sellers to include in the GRP promotion. Micro, Small or Medium-Sized Enterprises (MSMEs): According to OSMEP's definition, business sizes vary between the manufacturing sector and the trade and service sector. From the survey, micro enterprises account for almost 70 percent, followed by small businesses at around 26 percent, and medium-sized companies accounting for only 3 percent (Figure 4 – 4). When it comes to government procurement system experiences, the highest percentage can be found among medium-sized enterprises at 40 percent, small enterprises at 33 percent, and only 20 percent for micro-enterprises (Figure 4 – 20). The data also shows that the larger the enterprise, the higher the experience and chances of winning a bid in procurement.
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Regarding the proportion of MSMEs winning a bid from government procurement in 2020, medium-sized enterprises, small enterprises, and micro-enterprises achieved a success ratio of 18.1 percent, 11.8 percent, and 5.9 percent, respectively (OSMEP, 2020). Based on this data, WRT can consider whether support for accessing GRP should prioritize micro-enterprises, the group with fewer resources, expertise, and fewer chances of being awarded contracts, or small and medium enterprises that could create more successful cases in accessing procurement systems. MSMEs in Consumer Goods and Tourism: When analyzing the 319 MSMEs that participated in the survey, the data indicates that 56 percent of enterprises are from the consumer goods sector, followed by 34 percent categorized as 'other', while 10.03 percent are from the tourism sector (Figure 4 - 5). The majority of WOBs are also found in the consumer goods sector, accounting for around 90 percent, while WOBs in tourism and other industries account for 84 and 77 percent, respectively. However, tourism enterprises have the highest percentage (almost 40 percent) of experience in both government and large enterprise procurement with the top success rate (almost 92 percent) in winning bidding (Figure 4 - 19). The data (based on a small sample size of tourism enterprises) indicates that enterprises in the tourism industry have more expertise in bidding compared to companies in the consumer goods and 'other' sectors, where expertise levels are similar to each other. Considering other qualifications of MSMEs: The survey results also provide insights into the different qualifications of MSMEs, as follows: •
Some of the WOBs interviewed were registered as social enterprises with OSEP, which gives them benefits such as direct access to government procurement without competing with other suppliers. However, this group of WOBs is limited to government procurement and still needs to compete to access large enterprises' procurement.
•
Among MSMEs that have never participated in government or large corporation procurement systems, around 26 percent have no interest in selling to the government (Figure 4 - 25) and 43 percent have no interest in selling to large enterprises (Figure 4 - 34). This means not all MSMEs are willing to enter the procurement system, even if they agree to issue a gender equality written policy to join GRP program (Figure 4 40). Various reasons were cited in the interviews, such as their enterprises being too small, lacking personnel, know-how, or technical skills, or having established good selling channels already.
These qualifications highlight the need to define the "readiness" of MSMEs, which is different from a quick assessment conducted in the previous phase of the project. Considering that having a policy, advocating for certain issues, publishing research, and maintaining a diverse supply database may not be fully compatible with the nature of MSMEs or reflect their competitiveness. Factors such as the MSMEs' own capacity and ability to deal with the procurement system need to be considered. Therefore, a well-defined readiness of WOBs and GREs is needed for WRT to categorize them into various groups based on readiness and match them with potential buyers. However, it should be noted that groups of WOBs that have less opportunity and would gain higher benefits in selling through the procurement system, such as micro-enterprises, may not be the exact same groups that can compete to win a bid and have financial gain.
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Unfortunately, this survey does not identify sectors of businesses where the gender gap among entrepreneurs is high, nor did it provide information on the tension of gender inequality in specific groups of WOBs, which are both pieces of information requested by different GRP stakeholders but may have to wait until official WOBs and GREs’ definitions are launched to be able to segregate company ownership data of a MSME, based on gender. Providing capacity building for WOBs and GREs During interviews, MSMEs expressed a range of challenges they faced, from keeping their businesses afloat in the wake of the COVID-19 crisis to expanding their operations and securing more sources of funding. Many entrepreneurs identified a lack of skills in areas such as marketing, finance, accounting, human resources management, logistics, and procurement as barriers to growth. According to survey results, the top three practices that MSMEs used for improving their businesses were online selling (nearly 90 percent), attending government capacity-building programs, and developing their own selling platform (each around 45 percent, Figure 4-15). However, winning bids in government and large enterprise procurement requires more specialized skills than those required for basic business operations, as noted in interviews with large enterprise and government organizations. For example, businesses must have the ability to scale up to handle large orders, manage complex documents, tolerate long-term credit, meet required standards, and more. When analyzing the results of capacity building needs among MSMEs, numerous subjects were identified in supporting organizations such as marketing, finance, accounting, and exporting, which entrepreneurs can access on their own (Figure 4 37). Half of the survey respondents also expressed interest in learning how to access government and large enterprise procurement, which could be crucial to success in the GRP. To address this need, WRT could provide capacity building focused on equipping MSMEs with the necessary skills to enter procurement. This could be achieved through collaboration with government agencies and large enterprises as potential purchasers. For other technical support vital to accessing the procurement system, such as reserving cash for long credit terms or expanding production capacity, WRT could partner with supporting organizations that specialize in those areas.
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