Service

Characteristics/definition

General Issues

Gender Issues

Microcredit
(Dawson 1997; Loucks 1999)

· Granting of very small loans

· Generally no collateral requirement

· Provided to individuals or groups

· Started in developing country context

· Group loans tend to be small

· Group-based lending often organized and controlled by group members

· Market interest rates should be charged

· Impacts may only be short-term and marginal if credit is not invested in productivity enhancing goods

· Group-based lending is said to have empowerment implications for women

· Women tend to request smaller loans, but only receive small loans no matter what they request

· There are non-financial impacts on women, such as time pressure for repayments, control over resources, etc.

Loan guarantee
(OECD 1998a; OECD 1996)

· Another means of accessing credit

· Public or private sector organization guarantees percentage of formal sector loan against default by MSE owner

· Reduces perceived risks to formal lenders associated with microlending

· Gives microentrepreneurs access to formal financial sector

· Delivery should be simple and transparent

· Deadweight and displacement effects possible

· Deadweight effects can decrease programme outreach, reducing women's access to credit as they may have fewer alternative financing sources

· May provide women with greater access to formal channels of funding

Training (ILO 1998; Committee of Donor Agencies for Small Enterprise Development 1998; Richardson and Hartshorn 1993; Easwaran 1992; Employment NOW Commuity Initiative 1998; European Commission 1998; Edgcomb, Klein et al 1996; OECD 1998b; The European Observatory for SMEs 1996)

· Provision of general business skills and/or skills more particular to an industry

· Training programmes can include business planning, costing, financial management, marketing, sourcing inputs, etc.

· Training can also cover entrepreneurship development, involving confidence building, etc.

· Programme design should include needs-based assessments involving participants, so it is demand led

· Training is one of the most common business development services provided

· A modular approach to training programme design is good. It offers core courses, then allows clients to select other courses suiting their needs

· Potential for sustainability, depending on the (direct) contribution of training to clients' profitability.

· Women have different training needs in terms of course content, scheduling, length and delivery

· Personal development should be included along with business skills so women begin to perceive themselves as MSE owners and gain confidence in their abilities

· Programme designers must be aware of women's multiple roles; programmes should be scheduled when women are likely to be free

· Participatory techniques and incremental learning using female instructors are good teaching models for reaching female MSE owners

Counselling/consultancy (Committee of Donor Agencies for Small Enterprise Development 1998; Tanburn 1998; OECD 1998b)

· Individually based services where clients receive help on problems specific to their businesses

· One-on-one provision can be effective but expensive; volunteers can be used when possible

· Clients must be comfortable with the consultants, who may be very different from themselves

· If more general issues are raised during sessions, group-based services may help the client more and be more cost efficient

· Attention must be paid to hiring female consultants, avoiding a male environment and providing services sensitive to women's needs; gender training of consultants should be done

· Individual attention can benefit women if consultants are open to the different needs and goals women may have

Mentoring (OECD 1997; Employment NOW Community Initiative 1998)

· Individual or group-based assistance directed at specific problems with the MSE

· Based on a longer term relationship with the mentor compared to consultancies or networks

· Can be tailored to client needs and therefore can have high effectiveness and impact

· Form of knowledge transfer

· Can be costly in terms of mentors' time and fees

· Requires careful matching of mentor and mentee, recruitment of quality mentors and constant monitoring

· Female mentors must be recruited; they should also have gender training

· Mentors can serve as role models

· Female mentors can help with advice on balancing work and family, childcare, etc

· Group-based programmes may provide women with networking and empowerment opportunities

Information/networks (Committee of Donor Agencies for Small Enterprise Development 1998; Barton and Bear 1999)

· Information is a key resource for MSE owners; it can relate to markets, new suppliers, costs and technology

· Networks are relations with others in the business community; they are one way to access information

· Many MSE owners do not recognize the need for information

· Support programmes must raise awareness about the importance of information to success

· Information can be provided through many means including, one-stop shops, trade fairs and the Internet

· Information technology is important for accessing information and expanding networks

· Use of information technology to access information can improve women's access since these forms are available 24 hours a day

· Women must first have access to information technology

Incubators (National Business Incubation Association 1999)

· Provide shared premises to help businesses in the start-up phase

· Provide shared business services during incubation period

· May support a mix of clients or clients from a particular industry

· Provide shared capital, reducing start-up risk and costs

· Can offer management and technical assistance tailored to business's needs

· Incubators can support women's move into new, non-traditional sectors

· Sharing space with others starting businesses can reduce isolation and provide networking opportunities

Marketing assistance (Barton and Bear 1999; Gibson 1999)

· This service helps microentrepreneurs access current and new markets

· The markets can be for inputs or final goods, local or global

· This can also help in identifying new products and new business opportunities

· New technologies and product development are one aspect of this service; they help in accessing newand/or higher value markets

· Information and communications technology also have a role in accessing new markets across the globe

· Support agencies can work to create more effective markets - improving transparency, access and equity; benefits can be leveraged for a large number of clients

· Markets in some cultures are 'male spaces'. Improving market access and transparency may make women more comfortable in the economic sphere

· Standardizing market operations and reducing corruption may decrease the mystery surrounding markets, increasing women's willingness to participate

Support activities

· Some MSE support agencies provide services apart from those directly related to the MSE

· The services include: childcare, transportation, personal development, and advice on how to integrate work and family and gain family support for the economic venture

· Many of the agencies offering these services target women MSE owners

· Providers recognize and respond to the different needs women have as entrepreneurs; women are not free agents able to enter the market without constraints

· Some conclude that offering these services accepts society's ascribed gender roles and doesn't challenge them. However, they meet practical needs and are necessary until roles are changed

Advocacy

· Agencies with this focus work toward improving the opportunities available to MSE owners

· Their key role is influencing policy. The ILO works in this arena to support MSE owners in general and women MSE owners; the tripartite membership structure suits an advocacy role

· Advocacy groups must be aware of the heterogeneity of their client group(s); without this awareness policy changes can be biased toward certain groups

· Many advocacy organizations focus on supporting female entrepreneurs

· They work to raise the visibility of women's economic contribution in the MSE sector and to change policy to support women's role in the sector

· Women cannot be assumed to be homogeneous; class, race, ethnicity, age, etc. all influence how women work within society