Female Participation in Microloan Programmes in Western Europe by oae20205

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									Female Participation in Microloan
 Programmes in Western Europe

    Preliminary Results of an EMN
      Survey of 22 Microlenders

             October, 2005
             Survey Background:
              The Lending Gap

• In Western Europe, data available in March 2005
  suggested that 35%-38% of microloan clients are
  women.

• In Canada and the US, 60% of microloan clients are
  women.

• In Eastern and Central Europe and the Newly
  Independent States, 62% of clients are women.

• In developing countries, rates are as high as 69%.


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            Survey Objectives
•   to collect data on lending rates to women and men
    in Western Europe

•   to gather practitioner opinions on barriers faced by
    women entrepreneurs seeking microloans

•   to gather information on microlender policy and
    practice with respect to female entrepreneurs

•   to gather organisational information on the number
    of women working for microlenders in Western
    Europe

                                                           3
Figure 11: Number of Respondents by
      Number of Respondents by
              Country
               Country

           Belgium
                       Germany
        Italy



                              Finland
      UK
                          Norway


        France        Spain
        Switzerland



                                        4
   Number of Microloans to Women
Figure 12: Number of Microloans by Country
                       in 2004
         Switzerland     UK
              Spain
         Norway
                       Belgium
             Italy
   Germany

                                 Finland




France




                                             5
                                           Profile of Microlender Female
                                                   Workforce in 2004
                                           Figure [.]: Profile of Female Workforce
                                80


                                70
Percentage of Women Employees




                                60


                                50


                                40


                                30


                                20


                                10


                                0
                                     Senior Management   Middle Management   Support Staff




                                                                                             6
        Figure 1: Number of Loans to Women
        Number of Microloans to Women
7,000                                           61%

                              58%
6,000
              60%
5,000                                     39%
                        42%
4,000
        40%

3,000

2,000

1,000

   0
          2002            2003              2004
                       women        men
                                                      7
                          Percentage of Microloans to
                   Figure 4: Percentage of Loans Made to Women by
                                 Women by Country
                                       Country

               0        10     20    30     40     50     60        70   80

   Belgium

   Finland

    France

  Germany

       Italy

   Norway

     Spain

Switzerland

        UK



                                                                              8
               Average Value of Microloans to
               Figure [.]: Average Value of Loans
                       Women and Men
        9000

        8000

        7000

        6000

        5000
Euros




                                                    Women
        4000                                        Men

        3000

        2000

        1000

           0
               2002           2003           2004

                                                            9
                    Factors Affecting Female Demand
                   Figure 6: Factors Affecting Female Demand for
                               for Microloans
                                     Microloans

                                                              0   2   4   6   8   10    12


     a. Women are less interested in starting businesses


                             b. Lack of the right education


c. Lack of experience required to start and run a business


           d. Cumbersome business registration process


                                e. Lack of self-confidence


                          f. Lack of entrepreneurial spirit


                                     g. Family constraints


                                           h. Lack of time


                                                     Other



                                                                                       10
                         Barriers to Accessing Loans from
                 Figure 7: Barriers Affecting Access to Microloans
                                       Microlenders
                              0   1        2        3        4       5   6


    a. Lack of education


     b. Lack of business
            training

      c. Lack of business
           experience

     d. Lack of access to
          information

           e. Lack of self-
              confidence


           f. Low income


g. Lack of guarantees or
         collateral



                                                                             11
                  Measures to Increase Women’s Access
             Figure 8: Measures to Increase Women's Access to
                                 to Microloans
                                             Microloans

                                                        0   2   4   6   8   10   12


              a. Special loan products for women.


          b. Special loan guarantee and collateral
                       arrangements.


    c. Pre-loan assistance with business planning.



                      d. Financial literacy training.


e. Having female loan officers technical assistance
        providers and business coaches


                                              Other




                                                                                      12
Microlender Policy and Practice:
• 65% of respondents felt that special measures to increase
  women’s access to loans were needed.
• However, the majority of microlenders are not currently
  undertaking such measures.

• 25% of microlenders have a specific policy to guide their work
  with female entrepreneurs.
• 35%percent of respondents have specific loan products
  designed for female entrepreneurs.
• 45% of micro-lenders undertake special training or technical
  assistance activities aimed at female entrepreneurs.
• 45% of organisations surveyed have staff who specialise in
  working with women entrepreneurs.
• 3% of the female workforce is in senior management, 36% of
  board members are female.


                                                                   13
         Points for Reflection

• There is indeed a lending gap between
  Western Europe and the rest of the world.
  Why?

• Most respondents said there were external
  barriers affecting female demand for
  microloans.

• Are these barriers vastly different from those
  faced by women elsewhere, particularly in
  other industrialised regions?

                                                   14
          Points for Reflection
• There is an awareness amongst 65% of Western
  European lenders that women entrepreneurs face
  particular disadvantages when compared to men.
  However, programme design, policy and staffing
  profiles do not yet reflect this awareness.

• Is this gap between awareness and programme
  design contributing to the lower rate of female
  lending we have observed in Western Europe?

• Do we need special programmes for female micro-
  entrepreneurs in order to increase female lending?


                                                       15

								
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