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Economic Empowerment for Women by wanghonghx


									    Economic Empowerment for Women   October, 2009

      A Decade of Women’s
     Economic Empowerment
      Economic Empowerment for Women   October, 2009

    Economic Empowerment for Women:
              Our Mission
    To provide low income women in Israel the
    tools to create small businesses as a
    means for gaining self-sufficiency and
    alleviating the cycle of poverty in which
    they live.

      Economic Empowerment for Women              October, 2009

        Micro Enterprise as a Poverty
             Alleviation Strategy

     Originated in Bangladesh in the early 1970s by Nobel
      Prize winner Professor Muhammad Yunus and the
      Grameen Bank
     Considered the most successful strategy for poverty

      Economic Empowerment for Women             October, 2009

           Micro Enterprise –
    The Way to Economic Independence

     Enables self-employment and self-sufficiency
     Trains low to moderate income people
     Enables Income Patching
     Creates Jobs in the Community

      Economic Empowerment for Women                                     October, 2009

                      Poverty in Israel
Israeli families under the poverty line (2007-8):
     20% of general population
     34% of general children
     15 % Jewish
     50 % Arab
     30% Single Parent Families
     19% New Immigrants
     22% Elder people
     51% Ultra-Orthodox
     Poverty Line- 5,500 NIS ($1,450) net income for a family
         with 4 people
                            National Insurance Institute, January 2009

      Economic Empowerment for Women             October, 2009

                         Why Women?
Women are ….
   65% of Israel‟s low-income workers
   65% of welfare recipients
   66% of those employed in part-time jobs
   75% of all those working part-time “against their
   97% of single parent families

        Economic Empowerment for Women           October, 2009

            EEW’s Target Population:
        Israeli Women at Risk of Poverty
     Heads of single-parent families (30% of EEW‟s
      participant population)
     Arab women (only 17% are in the labor market)
     Orthodox women (sole income source)
     Women over the age of 45 (no employment)
     Women who live in peripheral regions
     New immigrants (no connections)

          Economic Empowerment for Women              October, 2009

                    EEW Achievements –
                    A Decade of Activities
     EEW was awarded the Speaker of the Knesset Prize
        for the Quality of Life – 2008
       Offered a variety of programs and services to over 3,000
       Helped to establish 1,350 new micro enterprises
       Ran 92 Business of One‟s Own training programs in 70
        communities throughout Israel
       Processed, approved and managed
        700 loans totaling $2.5M
       Affected policy change
        Economic Empowerment for Women     October, 2009

          EEW’s Four-Pronged Strategy

     Business Training and Empowerment
     Long-term Business Development Support
     Access to Credit and Micro Loans
     Asset Development and Financial Literacy

            Economic Empowerment for Women                        October, 2009

      Types of EEW’s Graduates Businesses


                                                    Professional services (design,
            15%                         20%         editing, photography)
                                                    Commercial stores and
                                                    Crafts; jewelry
10%                                           15%
                                                    Alternative health
      10%                               11%
                      11%                           Fashion and clothing

                                                    Others (child care, tourism and

             Economic Empowerment for Women                    October, 2009

                  A „Business of One‟s Own‟
      Year long program includes 150 hours of:
         6 months Business Training Course (Personal Empowerment and
          Business )
         6 months of Technical Support towards business establishment

      200-250 women annually, in group settings, throughout Israel

      Courses in Hebrew and Arabic

      Program based on partnerships (local municipalities, welfare service
        agencies and NGO‟s)

        “Iwas tired of living in debt. Today, I don’t
        have to think twice about taking my son to the
        zoo”. Yelena Seglin, a new-immigrant from
11      Russia, owner of „Yelena‟s Beauty Clinic‟.
         Economic Empowerment for Women   October, 2009

        Business Development Services
     Provides 400 women per year with…
       Business Incubation
       Advanced Business Training
       Business Consultations and
       Legal Guidance and Mediation
       Access to Markets (Networking,
        Business Opportunities, Fairs)
          Economic Empowerment for Women               October, 2009

                   Access to Micro-Loans

      Managed and processed 623 bank loans in the amount
       of NIS 9.2M ($2.3M) in cooperation with KIEDF
      Average loan is $4,500. Payment three years.
      EEW “Non-bank” micro loans fund for the unbankable
       (only open to EEW graduates). Distributed 73 loans
       (Average loan is $1,500)
      One-on-one business consultation for loan recipients
      4% rate of default

         Economic Empowerment for Women                  October, 2009

          Saving for the Future Program

      First program of its kind in Israel that provides:
      Incentive-based (matched) savings (modeled on
       US Individual Development Accounts, IDA‟s)
      Financial literacy and personal mentoring
      Matched savings at 50% and cap value $1500

      “Thisprogram changed the way I relate to money and
      manage my finances. This is the first time I opened a
      savings account”. Rachel, Reflexologist

        Economic Empowerment for Women            October, 2009

       EEW – Impact & Evaluation (2008)

…. 1 year follow-up of Business of One‟s Own program .…

    32% of EEW graduates have an active business
    80% of businesses profitable
    60% increase in profits of existing businesses
    74% of businesses legally registered
    Avg. monthly personal income from business – $1,348
       Poverty line - Family of 4 =$1,361
       Minimum monthly wage = $ 963

        Economic Empowerment for Women                     October, 2009

       EEW – Impact & Evaluation(2008)

 Household income
      27% increase after 1 year and 53% increase after 3 years
       (among same women interviewed over time)
      33% of families living in poverty rose to above poverty line
 Empowerment
      22% enrolled in vocational/academic study program and
       41% enrolled after 3 years
      24% of unemployed women joined the salaried workforce
      14% increase in salary wages and 31% three years later
 Business Stability              (3 Three-year studies)
      73% of businesses still in business after three years
     Economic Empowerment for Women          October, 2009

         The Sweetness of Freedom …

     “The most important thing I got from
     EEW was self-confidence and courage
     to open my own business.”
17   Amoona, Owner of Crème Caramel Bakery
         Economic Empowerment for Women           October, 2009

              From Welfare to Fairing Well

“In the Saving for the Future program, I learned to
   stop wasting money on needless things and to
   start planning my finances better”. Ilanit, Owner of

       Economic Empowerment for Women                October, 2009

     Mirvat Maroon, Owner of Mari-An, received a small
     business loan to renovate and open her own florist shop

                       New Strategy:

    Asset Development                    Financial Security

Financial security through savings and assets:
•   Generate capital for business investment
•   Provide liquidity to survive a crisis (job loss, illness, war)
•   Can be passed on to children and family
•   Enables access to education, training and residential
                 New Pilot Program:
Asset Development and Economic Literacy

 •       Modeled on USA Individual Development Accounts (IDA’s)
            •  Incentive-based (matched) savings
                 • Target Savings Amount
               • Savings Held through Time
                • Restricted Use of Savings
                   • Financial education
     •      Case management and peer group support

                  FIRST TIME IN ISRAEL!
     Key Research Findings on Asset Development

• Low income persons can save and build assets
• Demographics – education, employment, welfare
  recipient and even income – matter little in predicting
  savings and asset accumulation
• Program or institutional characteristics matter a lot in
  predicting savings and asset accumulation
• Holding assets leads to positive social, behavioral,
  psychological and civic outcomes for children and adults

             (Ray Boshara, New America Foundation, March 2008)
          Program Features Encourage Savings

•   Access – a savings plan offered
•   Information – financial education
•   Incentives – tax break or match
•   Facilitation – someone does it for you
•   Expectations – match caps or saving goals
•   Restrictions – contribution limits, limit on uses
•   Security – money is safe

    (Sherraden et al, “Determinants of Asset Holdings”, asset Building
      and Low Income Families, 2008)
        IDA Model Asset Development Programs

•   Over 500 IDA programs throughout USA;
•   Over 73,000 IDA accounts
•   Government funds include 200 million $$
•   Worldwide IDA programs ….
      United Kingdom
      Taiwan
      Australia
      Uganda
      China
      …. Now in Israel …
       Micro Enterprise as Asset Builders
             What funders can do:

• Support IDA matched savings programs

• Support a flexible approach to requirements for matching
  funds, allowable savings goal and income eligibility limits

• Invest in capacity building that helps micro enterprise
  programs incorporate IDA programming and other asset-
  development services into their package of services (i.e.
  financial literacy, credit building, case management for
  savings strategies and implementation)

• Support policy initiatives that create benefits for self-
  employed micro entrepreneurs
                     (FIELD Funder Guide, Issue 12, June 2008)
         Economic Empowerment for Women                         October, 2009

            Our Partners and Supporters
                    (partial list)
      Israeli Sources – Government & Business:
            National Insurance Institute, Galilee Development Society,
             Local Municipalities
            Crazy Line, AIG Israel, Marvell Israel, Microsoft Israel
      Jewish Women’s Foundations:
            Boston, Baltimore, Seattle, Chicago, Miami, NYC, NCJW
      USA Foundations
            Harry and Jeanette Weinberg Foundation, Rosalinde and
              Arthur Gilbert Foundation, New Israel Fund, UJA Federation
              of New York, Stichting Levi Lassen (The Netherlands),
              Hadassah Foundation, Ted Arison Family Foundation, Naomi
              and Nehemiah Cohen Foundation, Rosenzweig Coopersmith
              Foundation, Jacob and Hilda Blaustein Foundation

          Economic Empowerment for Women                  October, 2009

          Dealing with the Financial Crisis

      EEW expects a drop of 40% in donations in 2010

     Actions to cope with financial crisis:
      100% rate of Board of Director donation
      Increase fundraising in Israel. Board created “fundraising
       committee” to raise funds in Israeli philanthropic and business
      Reserve Fund (15%)
      Increased in-kind support from Israeli business community
       (i.e. donation of professional lectures)
      Income generation – outsourcing of Financial Literacy courses
     Economic Empowerment for Women             October, 2009

                Thank you for your interest!!


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