Women better entrepreneurs than men: ADB
JAKARTA (JP): Small and medium enterprises (SMEs) led by women are more successful than those led by men, a survey conducted by the Asian Development Bank (ADB) technical assistance team for Indonesia revealed on Tuesday.
Results of the survey indicated that some 50 percent of female-led businesses have experienced growth in the last two years, while only 45 percent of male-led businesses grew.
Furthermore, some 25 percent of male-led enterprises had deteriorated in the last two years compared to only 13 percent of female-led businesses, the report stated.
The survey examined the activities of 482 SMEs in Semarang, Central Java, and Medan, North Sumatra, of which 85 companies are owned by women.
The ratio of businesses owned by women compared to men included in the survey was purposely disproportionate to reflect market realities, the report said.
The survey encompassed 121 businesses in the manufacturing and processing sector; 120 businesses in the services sector; 120 businesses in the wholesale, retail, restaurant and accommodation sector; and 121 businesses in the transport, storage, and communications sector.
"Female entrepreneurs are apparently more realistic and cautious," the report said, explaining that this may be the reason why they are more hesitant to apply for bank loans, as demonstrated by the 49 percent of businesswomen who said that they had no need for bank loans, compared to 35 percent of the businessmen.
It may also be the reason why more female-led businesses have licenses (81 percent) and pay taxes (60 percent), compared to male-led businesses (72 percent and 49 percent respectively), the report suggested.
Female entrepreneurs also report fewer problems with business licenses, tax officials or illegal levies than their male counterparts, which suggests they have better social and communication skills, the report said.
"The real problem is becoming a businesswoman, not being one," the report said, adding that female-led SMEs are successful but rare.
The ADB report said that the women entrepreneurs surveyed generally had a higher education level than the men, but admitted that the survey results may only reflect the situation and achievements of the "top performers" among women entrepreneurs instead of the majority.
It said the main constraints preventing female-led enterprises from developing was the dilemma resulting from traditional perceptions of social responsibility, which often dictates that a woman is also expected to take care of the household.
"A strong constraint on the development of female-led enterprises is the cultural bias toward career women," the ADB said, explaining that women's businesses were mostly established to "contribute to the husband's earnings", a view that imposes a negative effect on women's ambitions from the very beginning.
The ADB technical assistance team recommended that the government provide regular updates of SME and gender development trends to encourage gender awareness among the public.
It should also increase the involvement of women in business and integrate gender mainstreaming into SME policy making, it said.
"Given the country's economic situation, the current under- utilization and waste of obvious female entrepreneurial talent and management skills is hardly justifiable," the report said.
It explained that female entrepreneurs display a more cooperative attitude toward the government, demonstrated by higher compliance with registration and tax requirements.
"Women in business are likely to promote a more partnership- based relationship between the government and SMEs, which is a prerequisite for the acceptance and effectiveness of any economic policy," the report said.(tnt)