Private Sector Development
As we saw in our second blog, . Yet, in many West-African countries, long-standing stigmas against the private sector are still big obstacles for women and young people who aspire to become entrepreneurs.
Family support, in particular, remains critical for women’s career choices, and the private sector doesn’t always enjoy a good reputation among parents. “It’s very hard for them [parents] to understand why we want to do this instead of getting a steady government job,” says Binta Ndiaye, MakeSense Africa CEO. “My mother is an entrepreneur, but she did that on top of her regular job and raising a family in France, so it’s not seen as a career in-and-of-itself.”
“Entrepreneurship is inherently risky, so if you don’t have that support and encouragement, or even your family’s blessing to go for it, I can understand that it could be extremely challenging for some women,” says Mariem Kane, founder and president of Mauritania’s incubator Hadina RIMTIC.
Ndiaye for one, though, is not deterred: “It’s up to us to educate them on this potential and to have the resolve to follow-through. If you can convince skeptical parents, you can convince any investor.”
Considering that these incubators are run by women, do they make special efforts to recruit women entrepreneurs?
Lisa Barutel founder and CEO of La Fabrique, acknowledges that even though La Fabrique received a huge response to a recent call for proposals targeting women, far fewer apply to general calls that do not have a specific focus on women entrepreneurship. “Normally we don’t go out looking for candidates, as we can be inundated with applications, but when we noticed this discrepancy, we did launch a program to identify women with potential,” she says.
As we saw in our first post, our six CEOs are very optimistic about incubators and their potential support to their countries’ economic development. You don’t get far in the private sector without being realistic, though, and they cautioned against seeing entrepreneurship as a catch-all remedy to West Africa’s youth unemployment and skills deficit issues.
Digital technologies—mobile phones, computers, and the Internet—are reshaping our world. But to leverage this transformation, women and men will need to have the right mix of skills. Coding bootcamps, a type of rapid skills training program, have emerged as one approach to filling the gap.
Yet little is known about what works. In response, the World Bank Group developed Decoding Bootcamps, an initiative that evaluates the impact of coding bootcamps, with a focus on youth employment in emerging markets. Impact evaluation results from Lebanon, Colombia, and Kenya are forthcoming, but one important lesson has already become clear: To attract and retain women, bootcamps need a reboot.
With the support of the Umbrella Facility for Gender Equality, teams working on innovation and entrepreneurship, social inclusion, and gender equality have come together to design and test the impact of a different approach: coding bootcamps centered on the needs of women.
As groundwork, we set out to learn from providers who are trying to achieve this goal. Their experiences highlight three ways in which ICT skills training can attract, retain and help women thrive.
Across West Africa, it’s very difficult to find a workplace as innovative and diverse as business incubators. Known for their young, energized, and often gender-balanced staff, these organizations are an encouraging indication of what’s in store in the coming decades, as the region presents a younger, more open, and increasingly female workforce to the world.
In francophone West Africa—where there was not a single incubator at the beginning of 2011—six young women are currently leading major incubators, some of which have World Bank Group support.
With backgrounds in computer science, engineering, finance, logistics, project management, and social entrepreneurship, . Given the World Bank Group’s commitment to promoting gender equality, as laid out in the Gender Strategy, our team talked to them to learn more about their work and leadership experience.
“200 pieces of Selfie are ready, please call them to collect,” Nurjahan, an entrepreneur selling a local brand “Selfie” shoes, tells her husband to call a local shop owner to pick up his order.
We recently visited Bhairab to get a first-hand look at one of the important industrial clusters in Bangladesh, where Nurjahan’s shoe microenterprise is located.
Bhairab is about 85-kilometer from the capital Dhaka, and its shoe cluster is well organized into around 7,000 factories of which 40 percent are micro factories (employing between two to seven workers). They are mostly family-run, producing low-cost shoes, mostly for the local market at prices as low as just Tk100 – or around $1.25 a pair. Virtually none of these factories have access to bank financing, although some access credit from NGOs. In Nurjahan’s shoe factory, about 45 women and 12 men work in five sheds. Over the last 30 years, her micro business has grown into a small enterprise.
Across francophone Africa, incubators are emerging rapidly to support a new generation of young entrepreneurs. Despite their huge potential, however, incubators are just one of many players in a typical entrepreneurial ecosystem. So it is increasingly important that incubators — in addition to allocating the necessary resources, services and funding to worthy start-ups — provide them with a platform to share and transfer knowledge across the ecosystem, not only with each other but also with the investors, research centers and industry experts upon which their businesses will ultimately depend.
As with Impact Hub Bamako, incubators can be part of broader international franchises, while others are anchored by academic, public or private bodies (or some hybrid of the three) and may already be associated with other incubators. Bond’innov, for example, is an incubator that promotes entrepreneurship cooperation between the global North and the South and that is headquartered in Paris and located on-campus with the Institute for Development Research, a large multidisciplinary research organization operating in more than 50 developing countries.
For decades, various governments around the world have used trade-distorting policies (tariff and non-tariff barriers) to support the development of local automotive industries that would not have otherwise been economically viable. However, to what extent are these policies, which once helped attract market-seeking automakers (or Original Equipment Manufacturers: OEMs), still serving the interests of these countries is uncertain.
In fact, for India and Pakistan, two of the biggest South Asian automotive producers, a recent World Bank Group report highlights that such polices might be reducing competitiveness and slowing down the spread of world-class good practices in the value chain. These effects need to considered carefully. A process of reform via gradual reduction of import tariffs and convergence with international environmental and safety standards is recommended to enhance competitiveness of this sector.
In the automotive sector, India is the world’s sixth-largest auto producer by volume, but it owns less than 1 percent of global export markets compared with more than 3 percent for China, 4.5 percent for Korea and 7 percent for Mexico. The average auto firm in India exported only 5 percent of its total sales, compared to 16 percent in China. Productivity levels in India are one-third the levels in China, and this gap persists for OEMs that are sub-scale, with below-average investment in innovation and skills, and with low participation in global value chains (GVCs). All these factors were discussed in a previous Private Sector Development blog post. The situation is worse in Pakistan, with lower levels of exports and productivity, and with similar factors driving it.
Trade policies, through tariff and non-tariff barriers, play an important role in shaping the external environment, which in turn influences a firm’s incentive to become more productive (or not). Firms facing greater competition in their product markets are inclined to raise the minimum productivity threshold to operate profitably and reduce inefficiencies. They do this both through investing in productivity-enhancing activities and through reducing costs, which in turn helps them capture greater market shares. Competition also helps reallocate resources from the less-productive to the more-productive firms, increasing the incentives for all firms to invest in the within-firm productivity levers such as innovation and skills.