Issue 36: March-April 2011 - Women entrepreneurs

In this issue

On 8 March 2011, the world celebrated International Women’s Day. In many countries of Asia and the Pacific, the festivities paid respect to women and celebrated them as important agents of change in rural development.

Women play a crucial role in family well-being and contribute to the rural economy and the development programmes in which they participate. Yet, in many societies, women continue to suffer from the burden of poverty and are systematically excluded from access to essential assets. They face discrimination in education, nutrition, economic opportunities and wages. The Asia and the Pacific division has recently launched a publication – Agriculture – Pathways to Prosperity in Asia and the Pacific – that provides a comprehensive analysis of poverty in the region, including the situation of women.

Through its projects and programmes, IFAD works to improve the status of rural women in Asia and the Pacific Region and to empower them so that they can fully participate in economic activities. One area of support is the promotion of rural enterprises and encouragement of business development that provide additional opportunities for rural women who are used to depending on agriculture. This newsletter provides several interesting stories of women entrepreneurs who received support through IFAD-supported projects and programmes.

Rownok Jahan from Bangladesh shares the story of a woman who, after a long struggle of living in poverty, started her own shop in the market she first helped to build. The story of a poor woman from China, written by Weijing Wang, shows that lack of education does not have to be an obstacle to women’s development. IFAD supported rural women by providing them with training and credit to produce straw-braid handicrafts, the first steps to set up and run successful businesses.

Cultivation of cotton has been one of the key production and marketing areas in Sayabouly province of Lao People’s Democratic Republic (PDR). One of the areas of support of IFAD and its partners is to help local women to become part of the value chain for cotton products.
Limited sources of income, illiteracy, land degradation, and lack of skills and employment opportunities have forced many rural women in Pakistan to live in poverty. Abdul Qayyum Abbasi tells a story of a poor young woman who started her own business and inspired many other women in her village.

The story of Bernadette Manuel from the Philippines shows that sometimes it is enough to have ‘business in your blood’ and savings in your ‘piggy bank’ to start your own rural enterprise. However, the story goes beyond this as there are always challenges and needs to become a successful entrepreneur. Dr Nishadi Somaratne studied the role of social relationships and networks in microenterprise development in rural Sri Lanka. The article gives highlights of the study, which has a special focus on the differences between men and women in their social relationships and networks.

The inhabitants of Tonga celebrated International Women’s Day. Soane Patolo shares the highlights of the event, including the contribution of women entrepreneurs – beneficiaries of an IFAD-supported programme – to the exhibition of innovations during the event. Tran Thi Huyen from Viet Nam shares an inspiring story of a young woman who was driven by the vision of a better future in her rural home. With her entrepreneurial spirit and leadership she empowered many women in her village and beyond.

IFAD, in collaboration with its development partners, continues to include women in its development activities and contribute to Millennium Development Goal 3 – promoting gender equality and empowering women – and beyond.

Martina Spisiakova, Newsletter Coordinator, Asia and the Pacific Division

From labourer to entrepreneur – the story of Nazma Begum from Bangladesh

   
 

Nazma in her shop

  

Nazma Begum (age 24) was married in 2001 when she was 14. In 2006, when she gave birth to her second son, her husband abandoned her. Struggling to survive, she joined the labour contracting society (LCS) of the IFAD-supported Market Infrastructure Project in Charland Regions to build rural markets in her area. Eventually, she managed to rent a shop in one of the markets she had helped to build and become a successful entrepreneur in making and selling plastic bags.

Since her husband left, Nazma Begum and her sons have been living with her parents’ family on Hatiya – an island off the southern coast of Bangladesh. Her father farms a small plot of land (about 0.4 hectares) and her brothers work as casual labourers. The family earned too little to support Nazma and her children.

To earn more money, Nazma started making hogla (a type of leaf) mats and sold them at her local market – Sagoria Bazaar. She only earned BDT 40-50 (US$ 0.6-0.7) per week from this, so also had to work as a maidservant in different houses in and around the village, sometimes earning BDT 250 (US$ 3.5) per month, although most of the time she was paid with food. Her mother would look after her children, at that time two and five years old. Although the situation was difficult, Nazama managed to survive with the little money she earned from her activities.

In 2008, Nazma was approached by a female member of the Union Parishad (the local government), who was also one of the members of the Market Management Committee of Sagoria Bazaar. Nazma learned about a scheme to develop this market by contracting the work to groups of women. This initiative was being undertaken by the Market Infrastructure Project in Charland Regions implemented by the Local Government Engineering Department with support from IFAD and the Netherlands. The project has a policy of giving contracts to construct rural markets to a labour contracting society (LCS), which is composed of the poorest women.

   
 

Plastic bags made by Nazma

  

At Sagoria Bazaar many more women applied to join the LCS than there was work available, and Nazma was lucky to be selected through a lottery. She worked 140 days and earned BDT 14,000 (US$ 195) in wages and also received BDT 27,260 (US$ 381) as her share of the profit that the LCS made from building the market. She used the profit money to buy 21 decimals (about .08 hectares) of cultivable land in her own name.  

In 2009 and 2010, Nazma again worked with an LCS at the same market for two months to construct a Women’s Market Area (WMA). This is a unit of four shops which are rented out to women traders. As she had attended school up to 10th standard, she was elected president of the LCS group and had to negotiate to buy materials and organize the work with the assistance of project staff. For this work, she received BDT 6,500 (US$ 91) in wages, but the profit share has not yet been distributed.
 
While Nazman was carrying out these responsibilities, she, along with two other LCS women, became interested in having shops in the WMA allotted to them. They applied and were successful, but it was not so easy to decide what businesses to take up. The team of the Market Infrastructure Project in Charland Regions in Hatiya, particularly Mr Sharif, the Sub-Assistant Engineer, suggested a range of possible enterprises and Nazma decided to make and sell shopping bags.

Nazma is not a trained tailor, but shopping bags are not difficult to make. She makes the bags from recycled woven plastic sacks used for fertilizer and other commodities. From two sacks she makes five shopping bags. The price of one sack is BDT 7-8 (US$ 0.1) and she sells one shopping bag for the same. She buys the sacks from the bakery and fertilizer dealers in the market and sells the completed bags in the same market. She does not need to worry about having a market or a supply of raw materials. The stitching is also a simple job, and she gets a quick return on her investment. 

Nazma bought a second-hand sewing machine from another tailor in the market for BDT 2,300 (US$32), which she paid for in installments. She has also bought a table for BDT 250 (US$ 3.5). She took loan of BDT 4,000 (US$ 56) from her family and has invested BDT 3,000 (US$ 42) in her business, leaving BDT 1,000 (US$ 14) cash in hand. She started her business in September 2010, and in her first month had made total sales of BDT 5,000 (US$ 70), while spending BDT 2,000 (US$ 28) on bags, which gave her a margin of BDT 3,000 (US$ 42). 

With the money she earns from the shop, she meets her daily expenses, and she has saved some money for her children’s education.  

Rownok Jahan, IFAD Gender Consultant

Read more:

Market Infrastructure Project in Charland Regions

Training and a small loan go a long way – the story of Yao Yunfang from China

   
 

Handicrafts produced with the help of the IFAD-supported project

  

Xinglong used to be a poor village of Gansu Province, located in the mountainous area of northwest China. The situation started to change when IFAD launched the South Gansu Poverty Reduction Project in 2006. IFAD found an abundance of local wheat straw and decided to support women by providing them with training and credit to produce straw-braid handicrafts. Yao Yunfang was one of those women. Lack of education did not stop her from learning new skills and setting up a factory.

Traditionally, farming was the main source of livelihoods for people living in Xinglong village, but production was low due to a very fragile environment and poor endowment of natural resources. Once the IFAD-supported project started operating in the area, the situation improved for many villagers, especially women.

   
 

Women working in the handicrafts factory

  

Yao Yunfang, who dropped out of school at an early age to support her family, was fortunate to benefit from the project. Through training offered by the project, she quickly mastered the techniques to produce straw-braid handicrafts and helped IFAD project management officers and the local Women Federation to train other female villagers. More than 680 women participated in the training. With support from the IFAD-funded project, she was able to obtain a loan of RMB 5,000 (US$ 700), which she used to set up a small firm for straw braiding. Many women from the village joined the firm.

After receiving the start-up resources, Yao received another loan of RBM 5,000 (US$ 700). She refined the techniques, explored market opportunities, and gradually increased her scale of operations. She has set up a factory using modern machines for straw braiding. Factory operations perform several standard procedure including bleaching, weaving and packaging.

   
 

Yao Yunfang with her employees

 

The fixed assets of the factory are now worth more than RMB 100,000 (US$ 14,000), while the net profit reached RMB 30,000 (US$ 4,500) last year. The market for these products has extended to other provinces. The factory employs 28 full-time workers, all of whom are from the village, and many part-time female villagers. The workers normally can earn RMB 500-1,000 RMB (US$ 750-1,500) per person per month. Straw braiding has become an important source of income for local people.

Yao believes that the progress she and the other villagers have made is attributed to the technical training and access to credit they received, as well as to broader assistance from IFAD, including improved safe drinking water, village roads and bio-gas. She has no doubts that this broader assistance has contributed to improving their food security, health and other aspects of their well-being.

Weijing Wang, Programme Officer, IFAD China, [email protected]
Supported by Wang Guifang, Project Management Officer, South Gansu Project, who provided the case, [email protected]

Read more:

South Gansu Poverty Reduction Project through photos

From farmers to consumers: women drive the cotton value chain in Lao People’s Democratic Republic

   
 

Laotian women harvesting cotton bolls

  

Cultivation of cotton has been one of the key production and marketing areas in Sayabouly province of Lao People’s Democratic Republic (PDR). With the support from IFAD, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the government, local women have succeeded in connecting tradition and modernity in the value chain for cotton products.

Cotton production in Lao PDR

For years, cotton has been produced in most provinces of the country, mostly on a small scale and for local consumption. It seems to be more common in less developed provinces such as Sayabouly in the northwest and especially on the border with Thailand. Here some producers managed to establish ties with cotton traders and handicraft companies both in Lao PDR and Thailand.

But the traditional cultivation of cotton in Lao PDR was threatened by the import of cheap industrial cotton yarn from Thailand. Due to overproduction on both sides of the border, cotton fabrics became a mass product without quality improvement or new product design. Over the years, the price of cotton declined due to reduced demand, which had dramatic consequences for the 1,500 Laotian women involved in its production. Their living conditions deteriorated and they faced a risk of losing their traditional handicraft and cultural identity.

IFAD and GIZ respond

   
 

A woman processing cotton

 

To help these women and others who depended on the production and marketing of cotton, the Rural Livelihoods Improvement Programme in Attapeu and Sayabouly (2006-2014) –  supported by IFAD and cofinanced by the GIZ Programme for Integrated Rural Development in Mountainous Areas (2004-2014) – started to address the problem.

The programme is assisting the Government of Lao PDR to integrate the mountain dwellers into an income-generating value chain, in order for them to contribute to the economic development of the country and to reduce their poverty. A high priority is given to women. The cotton value chain is one example of how gender aspects can be integrated into approaches that promote economic development.

The cotton value chain originates in the mountains

Generally, mountain villages of ethnic groups are excluded from the country’s economic development due to language barriers, inadequate education and low social integration. Women are especially disadvantaged. In Sayabouly, the ethnic group of Khmu was traditionally involved in cotton growing. Apart from the cultivation of white cotton (Fay noy), cotton growers in Sayabouly specialize in brown cotton (Fay thun), which is in high demand. These two traditionally grown short-fibre cotton varieties are suitable for processing by hand and fetch high prices. There is a high potential for the cultivation of this cotton to allow the Khmu to have access to new lucrative markets.

The cotton trade is performed exclusively by women traders, who fulfil two tasks. They:

As cotton growers and women traders belong to different ethnic groups, there are certain cultural barriers between them which make communication cumbersome and time consuming. However, all are very interested in good cooperation as they appreciate the benefits.

‘Sayabouly Cotton - made in Laos’

   
 

A woman weaving cotton

 

With the support of the programme it was possible to establish a successful cotton enterprise: ‘Sayabouly Cotton - made in Laos’. Three local women – Ms Amphone, Ms Khamyong and Ms Nuansi –  manage the entire enterprise, from cotton production to product marketing. Their shared vision to manage a successful cotton presides over any cultural differences that may make cooperation a challenge.

The product label – ‘Sayabouly Cotton - made in Laos’ – was an important step in promoting the value chain. As there are not many genuine products labelled “made in Laos”, this label is precious and professional. The women traders use it on their business cards and on presentation material for national and international events. A brochure on Sayabouly Cotton was developed, and a product catalogue with purchase order numbers makes ordering for customers easy. Activities and promotional material guarantee a high degree of popularity and also expands networking.

The women participate in capacity-building activities and consultations with other successful businesswomen, such as the Executive Director of the Phaeng Mai Gallery in Vientiane, which pays premium prices for hand-spun yarn and guarantee purchases for 4 tons per year. They learn from these women the needs, opportunities and requirements of the national and international cotton market. The consultations also provide them with guidance and strategies on how to manage business in an environment dominated by men.

As a result, the women have earned respect and acceptance by men because of their know-how, ambition and success. Their husbands are proud of them and even help in the finalization of products and discuss business matters with them. Their prestige and their social status within their families, among friends and especially in public life, have improved ever since they engaged in the cotton business. They are role models for both young women and men in the villages.

The development of the cotton value chain empowered many women. Nuansy Ratanasithi, Founder and Director of the Ngeuen Cotton Group – a local women’s cotton handicraft group in Ngeun district, Sayabouly province – has received an award for women's creativity in rural life 2010 as the most outstanding woman worldwide, defeating eleven women, nominated by the Women’s World Summit Foundation. By establishing the local cotton group, Nuansy helped improve the quality of life of rural communities. She greatly contributes to the planning of rural development in her district through the IFAD/GIZ programme.

“Cotton has changed my life tremendously,” said Nuansy. “The cotton group has given a lot of local women the opportunity to generate secure additional income and has therefore increased their negotiation power within the family. Even young women are now interested in participating in this traditional handicraft business and enrich it with new ideas for design and patterns,” she added.  “Since we have learned business management skills, we are able to establish business networks by ourselves. Men take our decisions and opinions as important as their own. We have experienced a lot of appreciation from both villagers and government authorities, which makes me very proud,” she explained. Neighbouring districts have realized the potential of processing cotton and of producing cotton products, and have requested technical support from the women traders.

From the mountains to national and international markets

   
 

The three traders managing 'Sayabouly Cotton made in Laos'

 

The marketing of the products is secure as there is a big local and national market. The Lao cotton is organic. Given the increasing health and environmental awareness of consumers, the yarn, the woven fabric and the finished merchandise go beyond district, province and even national boundaries.

The first step to promote the products outside the home district was the exposition during the Elephant Festival 2007 in Viengkeo/Hongsa, Sayabouly Province, during which first contacts could be established. The public interest in cotton has encouraged the women and the programme to increase their efforts. Participation at several Lao Handicraft Festivals (2007-2009) in Vientiane and Luang Prabang further increased the degree of popularity. Now, the products are being sold to local consumers and tourists in fair trade shops and in hotels in Luang Prabang and Vientiane.

Through exhibitions and trade fairs, such as the Lao Handicraft Festival 2008 and 2009, and the Organic Cotton World Congress in Interlaken, Switzerland in September 2009, new markets are continuously opening. Through networking, the women traders have established business connection within Lao PDR as well as with Canada, Germany Japan and Thailand. Their presence on national and international stages has further increased their self-esteem and the pride of their achievements.

Sustainability of the value chain

   
 

The 'Sayabouly Cotton - made in Laos' logo

  

The cotton value chain is sustainable both socially and economically. Socially, because of its gender-balanced composition – women and men, both young and old, of different ethnic groups cooperate. Economically, because the proximity to the Thai border is now used for cooperation instead of for cheap labour and market dependency. Women and men in the districts are conscious about their skills and potentials and use the resulting self-esteem to intensify trade relations.

In terms of promoting the private sector, Lao PDR is currently in a transition process from a centrally planned economy to a market economy. Despite the formal commitment of the national government to support the private sector, it is still difficult to establish private enterprises in provinces and districts. This makes the success of this value chain particularly remarkable in terms of promoting women and men in the private sector through the establishment of a private enterprise.

Due to the success of the cotton value chain, province and district authorities are interested in making the products known to a wider audience and to increase their regions’ reputation. District authorities consider cotton an “ODOP” (one district one product) item. The Lao Ministry for Industry and Commerce referred to the IFAD-GIZ programme when the Japan International Cooperation Agency was searching for a model for their approach to support private ODOP enterprises in Laos.

Martina Spisiakova, Newsletter Coordinator, IFAD

Read more:

Captions:


A woman weaving cotton
The three traders managing ‘Sayabouly Cotton made in Laos’
The ‘Sayabouly Cotton - made in Laos’ logo

Tongan women celebrate Women’s Day in an ‘entrepreneurial fashion’

   
 

Tala’ofa Sete, Lanoa Mahe, Hon. Fredrica Tuita and Huahulu Ha’unga at the Outer Island booths

 

Each year, 8 March commemorates Women’s Day, introduced by the United Nations as a day to focus on women all around the world. Tonga joined in the celebration at the Queen Salote Hall in Nuku’alofa. Part of the event was an exhibition of booths showcasing women’s accomplishments in various fields. The IFAD-supported Mainstreaming of Rural Development Innovation (MORDI) Tonga was invited to showcase the results of the trainings it had conducted in the outer islands for women and youth on innovative ideas for traditional handicraft making.

The event was attended by representatives of Australia, Japan, New Zealand, clergies of churches, Ministers of the Crown, Teachers Training College, women’s groups from Tonga and abroad, and women entrepreneurs.

Four people represented MORDI-funded projects: Ms Hu’ahulu Ha’unga, who was hired by MORDI Tonga as a handicraft trainer; Ms Tala’ofa Sete and her husband from Lape; and Ms Launoa Mahe of Hunga. They displayed the results of their training, a rich offering of handicrafts that the three women produce and sell on their respective islands.

   
 

Tala’ofa Sete and Lanoa Mahe at their booths

 

MORDI Tonga has given these women the opportunity to capitalize on their talents and the natural resources surrounding them. Hu’ahulu became the catalyst of this process, enhancing handicraft making through trainings she conducted in the communities. MORDI Tonga provides materials such as plain hair combs to earring hooks, and Huahulu trains these women on what to craft. The outcome is simply ingenious, and many visitors who stopped by the booth couldn’t have agreed more.

Tie-dyed sarongs draped the wall behind the booth, purses woven from natural fibres were hung for all to see. The table was a vision of bracelets, earrings, seis (flowers worn in the hair), table mats, slippers, necklaces, refrigerator magnets and hair combs, all of which had a modern twist and used natural fibres/materials that are unique to the Tongan culture. There was much more being shared than handicrafts. The women exchanged stories, such as how they sell from Motu District with no existing middleman on the main island.

The women were pleased with the sales that took place. Huahulu Ha’unga commented on how this day gave the two women an opportunity to think ‘outside of the box’. It also gave them a new experience to take back home and new ideas for catering to certain markets – for example, marketing to teachers and students using their school colours during the upcoming Inter-College Sports; and marketing to Parliament Marches. In her training, Huahulu emphasizes originality and the fact that consumer interest grows when they see something different, which is often the ‘pull factor’ for purchases made. During the event, she also encouraged the two women to take advantage of being on the main island to go directly to the consumers and create greater visibility.

   
 

Tala'ofa Sete serving her customer, H.E. Mr. Yasuo Takase, Japanese Ambassador

 

Sitting with an ear-to-ear grin was Tala’ofa. She describes the event of the day as giving her “renewed strength” to return home and pick up her game. She plans on making more of the handicrafts that she had sold that day. Tala’ofa talks of the pride she feels in being able to display her handicrafts for all present at the Hall to see, and her enormous happiness at being able to participate in this celebration exclusively for women. She describes herself as having always been passionate about arts and crafts, and acknowledges that MORDI Tonga’s programmes have given her the ability to enhance her skills in techniques such as crocheting ta’ovalas, a pandanus leaf textile traditionally worn on formal occasions. She is also appreciative that MORDI Tonga has opened another door for her by bringing her to the celebration. It has given her the initiative to make alterations not only to her wares but to the market in which she intends to sell.

Launoa shares the same sentiments of Tala’ofa. She views the day as an experience she will never forget, and values what she has learned, which she will use to improve her business. For most of the day, she had the most fun watching her wares disappear one by one, and the awe and admiration in people’s eyes. She will take back to her community many valuable lessons that she has learned about making her business more profitable by innovatively improving on her products to open them up to other markets.

National Women’s Day for Women channelled the attention of guests to the modest existence of MORDI Tonga and the entrepreneurship of outer-island women, who give hope to all women, young and old, living in isolated communities.

Soane Patolo, General Manager, Mainstreaming of Rural Development Innovations (MORDI), Ma'ufanga, Nuku'alofa, Kingdom of Tonga

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An inspiration for poor rural women – the story of Akseeda Shouket from Pakistan

   
 

Akseeda Shouket in her shop

 

Limited sources of income, illiteracy, land degradation, and lack of skills and employment opportunities in Azad Jammu and Kashmir (AJK), Pakistan have forced most women to live in poverty. The IFAD-supported Community Development Programme (CDP) in Pakistan (2004-2011) works to address these issues. Here is the story of Akseeda Shouket, a 30-year-old poor woman.

Akseeda Shouket lives with her husband and two children in Sanger village, situated in the mountains of Bagh district. Before the CDP was implemented, she was unemployed and her husband was working as daily labourer in the village, earning PKR 300 (US$ 3.5) per day. He was unable to find additional work.  Their children were school-age, but low earnings made it impossible to send them to school because of the cost of books and uniforms.

In June 2006, Integrated Land Management (ILM), a land management project funded by the Forest Department and the World Food Programme, established the community organization (CO) in her village and Akseeda became a member. She started saving money through her membership to supplement her family’s limited income.

In August 2008, the CO passed a resolution to provide “matching” funds from the CDP against the savings of the CO. The CDP actually provided funds at a 2:1 ratio. At the time, the CO savings amounted to PKR 44,000 (US$ 512). Therefore, in October 2008, the CO received PKR 88,000 (US$ 1,023) from the CDP.

Upon the recommendation of CO members, Akseeda received a loan of PKR 20,000 (US$ 233). She invested the money in a household goods shop, which she opened in one of the rooms of her house. Her husband purchased the goods at wholesale rates from a market in Bagh district, she was able to sell them at a profit. As there was no other shop in her village, after only several days, her business took off, with daily sales reaching PKR 2,500 (US$ 30). Her profit margin was 20 per cent, or about PKR 500 (US$ 5.9) daily. In 21 months, Akseeda was able to pay back the loan.

To improve her shop, in April 2010 she received a second loan of PKR 15,000 (US$ 175). She increased her selection of goods and as a result, her daily profit increased to PKR 800 (US$ 9.4). Now her husband is helping her with the business, and their children are attending school. Moreover, she is regularly re-paying the loan.
 
The CDP has helped change Akseeda’s life by enabling her earn a respectable income and serve as a role model for rural women in her village, many of whom have been inspired to become members of their local COs.

Abdul Qayyum Abbasi, Publication Officer, AJK Community Development Programme, [email protected]

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Business in her blood and savings in her piggy bank fuel the entrepreneurial spirit – the story of Bernadette Manuel from the Philippines

   
 

Bernadette displaying her products at the IFAD Governing Council in February (the photo is yet to arrive)

 

Bernadette Manuel is a timid but dynamic 26-year-old entrepreneur from Surigao del Norte in the Philippines with business in her blood. Unable to find a job and needing to contribute to the family income, Bernadette started up her own company, Seon Kris Food Products, in 2008. She has now become a successful entrepreneur. IFAD invited Bernadette to its Governing Council (19-20 February 2011) as a guest in the discussion on ‘Weathering the global economic crisis: opportunities and challenges for rural youth in Asia and the Pacific’.

It was Bernadette’s father who influenced her to start a business after she married and became “a plain housewife”. “Both of my parents were business-minded…. And I’m blessed to hold the same passion,” Bernadette said.

With PHP 300 (US$ 7) as capital coming from her piggy bank, she started making peanut rolls in 2008. It was a product that she knew very well. “While studying…. I learned about the ingredients for making peanut rolls. When I got married I did some research and experimented on how to improve the taste and texture,” she explained. Just a few months after she started the business, she was supplying not just Surigao City but also Butuan City and Cagayan de Oro City.

In 2009, she took part in training on product development and upgrading organized by the Department of Trade and Industry and the IFAD-supported Rural Micro Enterprise Promotion Programme (RuMEPP). She immediately put into practice what she had learned, and with a small loan from a microfinance institution working with the Rural Micro Enterprise Promotion Programme, she was able to expand her range of products, almost tripling her sales and doubling her assets in the first year.

Bernadette now promotes her products at local and regional trade fairs and employs four full-time and three part-time workers. The secret of her success, she says, was in using her money wisely, having confidence in her products and believing that her company could thrive and expand. She offers the following advice to other young entrepreneurs: “Make sure that you watch your expenses. Use the money wisely and don’t spend it so easily. Be confident with your product… Believe that it can grow, thrive in the industry and become big one day.”

Not content with what she has already achieved, Bernadette’s vision for the future is a well-equipped modern factory and new product lines. “There are some buyers who want to buy my product in large quantities, but I can’t take their orders because of lack of capital,” she said at the Governing Council. However, she is confident that her dream of expanding and introducing new products will come true with the support of the Programme, the microfinance institution and the Surigao Chamber of Commerce.

Dorothy Bellogini, Programme Assistant and Martina Spisiakova, Newsletter Coordinator

Read more:

Surigaonon RuMEPP beneficiary represents Philippines in IFAD General Council Meeting in Rome

Taking the lead to empower women in her village and beyond – the story of Nguyen Thi Nham from Viet Nam

   
 

Women putting the rice straw into bags, from which mushrooms will grow

 

Nguyen Thi Nham was born and raised up in Dong village of Cam Thanh commune in Viet Nam. In her village, people are caught in a vicious cycle of poverty, working under harsh conditions just to make ends meet. The vision of a better future in her homeland drove Nham to take up the position of Chairperson of Cam Thanh Small Industry and Trade Services Cooperative. She hoped that in her new position she would contribute to the development of her local area. And that is precisely what she did.

Noticing that in between agricultural activities women have little work to do, Nham explored different options and advised these women to engage in secondary employment to earn extra income. In 2007, the Cooperative had access to support from the IFAD-supported programme on Improving Market Participation for the Poor of Ha Tinh Province (IMPP Ha Tinh). The programme provided partial funding for trainees participating in vocational training courses and supported the Cooperative to find a market for their products. Thanks to the intervention, the trade of ‘ball sewing’ (for footballs) was introduced to Cam Thanh commune. The balls produced by the Cooperative have a strong reputation in the market in the province and have reached markets in other provinces.

Nham also works with the programme to conduct technical training courses and with the Thien Loc and Can Loc Centres for Seeds and Seedlings Transfer to provide support for introducing high-quality rice varieties to be grown in the field.

To help other women gain more experience in production, the programme also organized in-country and overseas study tours. When she learned that the demand for straw mushrooms was increasing, Nham approached Nguyen Trong Hai’s Mushrooms Cultivation Cooperative in Village 9, Binh Loc Commune, Loc Ha district to learn from his cooperative’s experiences in and techniques for mushroom cultivation. Consequently, she transferred the techniques to other women so that they could also grow the mushroom more effectively.

   
 

Women making balls at Cam Thanh Cooperative.

  

Thanks to mushroom cultivation, employment has been created for over 300 women. The Cooperative’s products were also promoted at the 2010 Female Entrepreneurs’ Trade Fair co-organized by the IFAD-supported programme and the Provincial Women’s Union. In 2011, the Cooperative received the programme’s support in the form of equipment, such as desks and chairs for the meeting hall, loudspeakers, a computer and a fax machine, with a total value of more than VND 50 million (US$ 2,396). This equipment will help the Cooperative to grow. “I am very grateful to the programme. Thanks to its support, we, the women in the Cooperative, have what we have now”, Nham said.

With her contributions to the development of her homeland, Nham is honoured as an exemplary woman of Cam Thanh commune for her efforts in poverty reduction. Every year, she receives a certificate of merit from the Provincial People's Committee. From 2006-2008, she was also awarded with certificates of merit by the Prime Minister and Labour Medals of the Third Order by the Party and State for her outstanding achievements in the movement to build the Women’s Union.

Nham is always trusted, respected and admired by others for being decisive, intelligent, wise and friendly in work. Although she is very busy with her social responsibilities, she still successfully fulfils her roles of wife and mother. Nham is a truly an example of a woman who is excellent at work and capable at home.

Tran Thi Huyen, Knowledge Management Officer, IMPP Ha Tinh

Read more:

Decentralization takes place in implementing project activities in villages and communes

The role of social relationships and networks in business development – highlights of a gender study in Sri Lanka

   
 

Young men and a woman working in a shoe making factory in Elkaduwa, Matale

  

This study was conducted by Dr Nishadi Somaratne in November 2010 in selected rural areas of the country, with the support of the Institute for Gender and Development Studies in Sri Lanka. The study examined the differences in social capital of a sample of rural men and women in terms of their receiving assistance to develop small-scale enterprises. The results suggest that the women studied were in a disadvantaged position in developing the social relationships and networks that play a significant role in business development.

A total of 62 people who own and operate micro-enterprises were in the study sample: 32 women and 30 men. The basic features of the micro-enterprises were: initial (or total) investment not exceeding US$ 1,000; no paid employees; and location of enterprise being home-based (not paying rent). In addition, the micro-enterprises had to have been operating for at least three years, based on the research need of the enterprises to have had a reasonable time period to undergo potential improvements. To identify their type of social capital, the following questions were asked: “Whom do you trust most to get a loan, advice and moral support to develop the business?”

The study found that while more women (around 76 per cent compared to around 50 per cent of men)  have trust in someone in the village territory, specifically family and neighbourhood networks, to get a loan and seek advice and moral support to develop their existing business, more men (around 48 per cent compared to around 22 per cent of women) have someone beyond that sphere. Although family and neighbours were the closest acquaintances of the studied women, getting a loan from them was difficult because most of them are equally poor and economically vulnerable. A previous study conducted in the rural areas of the Central Province of Sri Lanka (Somaratne, 2008) revealed that a poor person who makes a social connection with another poor person has little or limited capacity to contribute to that person’s well-being. In addition, Thudawe (2000) explained that poor people’s capacity to help others in terms of well-being is mainly limited to help for survival or subsistence, but not for progress.

The study also revealed that women had closer relationships with other women in the village for moral support than with men. They are afraid of closely associating with men beyond the family network due to rumours that could spread and tarnish their ‘good character’. Moreover, women meeting male officers visiting the village (such as agricultural officers, veterinary surgeons, rural banking officers) all by themselves is considered unacceptable ‘female behaviour’. The female respondents explained that they were accompanied by someone such as a husband, brother, father or another female when meeting a male officer.

The relationships that men had beyond the village were found to be developed with someone who was wealthier, more educated and with a higher social status (or position), such as friends in white-collar jobs and other businessmen. These associates clearly have more capacity in terms of finance and knowledge (information) to help them to develop their business. In terms of social capital terminology, the women have more bonding types of social capital and men have bridging types (Wookcock, 1998). Bonding types are horizontally developed relationships with similar types of people, whereas bridging types are developed vertically among different types of people. The latter contain more diversity and hence more potential resources.   

The study also examined the ‘speed’ of development of their businesses (in terms of significant improvements made in the business so far). More micro-enterprises run by men (35 per cent) have undergone different kinds of expansions compared to women-run micro-enterprises (19 per cent). Forty-two per cent of the men mentioned family assistance, especially of the wife, as key support in their progress. In contrast, only 32 per cent of the women mentioned that their husbands were helpful. Among the unmarried female respondents, their mothers and brothers were the most frequently mentioned supporters who helped them to set-up the micro-enterprises; fathers were often described as alcoholics.  Pawning of jewellery was found to be the most common way for mothers to help their daughters start micro-enterprises.

The research suggests that women in the studied sample were in a disadvantaged position in developing the social capital needed for business development. As they are confined to a limited geographical territory and social sphere, with patriarchal norms and values, the opportunities they have to develop diverse networks of social relationships with more resources have been limited. Educating women and men  micro-entrepreneurs on the importance of developing diverse and strong networks of social associations is important. However, sensitizing them towards gender equality cannot be overlooked if women are to enjoy the freedom to connect with diverse and resourceful social environments. 

Nishadi Somaratne (PhD), Consultant in Gender, Social Capital, and Rural Community Development

The State of Food and Agriculture 2010-11 – Women in Agriculture: Closing the gender gap for development

‘The State of Food and Agriculture 2010-11’, a report that has just been launched by theFood and Agriculture Organization (FAO), makes the “business case” for addressing genderissues in agriculture and rural employment. Theagriculture sector is underperforming in manydeveloping countries, in part because womendo not have equal access to the resources andopportunities they need to be more productive.The gender gap imposes real costs on society interms of lost agricultural output, food securityand economic growth. Promoting genderequality is not only good for women, it is alsogood for agricultural development.Women make essential contributions tothe rural economy of all developing countryregions as farmers, labourers and entrepreneurs.Their roles are diverse and changing rapidly, sogeneralizations should be made carefully. Yetone fact is strikingly consistent across countriesand contexts: women have less access than men to agricultural assets, inputs and services and to rural employment opportunities.The report documents the different rolesplayed by women in rural areas of developingcountries and provides solid empirical evidenceon the gender gaps they face in agriculture andrural employment.

The report presents empirical estimates of the potentialgains that could be achieved by closing thegender gap in agriculture and rural employment. It critically evaluates experiences from many countries with gender and development policies. It offers proven measures to promote gender equality and empower women. It shows how agricultural policies and programmes aimed at closing the gender gap can also generate significant gains for the agriculture sector, food security and society as a whole.

Source: FAO

Read the full report here.

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