Women as engines of economic growth

by Melanne S. Verveer and Michele J. Sison

Greater regional economic integration is essential to enhanced economic growth and prosperity in South and Central Asia. To encourage this integration, the United States is actively supporting efforts by governments, private sector partners and regional institutions to enhance trade and market linkages throughout the region and beyond. US Secretary of State Hillary Clinton’s vision of the New Silk Road prioritises this economic connectivity as essential to regional prosperity.

We know with certainty that no effort to support regional economic integration or to achieve economic growth and prosperity will succeed without the full and equal participation of half the population – namely women.

To support this goal, this week the US will co-host the regional South Asia Women’s Entrepreneurship Symposium in Dhaka, Bangladesh. The symposium will bring together over 100 key policy-makers, women entrepreneurs, civil society organisations, and private sector companies from 11 countries in the region to work on concrete actions to expand women’s economic participation.

Nine Sri Lankan female entrepreneurs will travel to Dhaka to participate in this event. They are Advisor to the Minister of Industry and Commerce Himali Jinadasa, Honorary Secretary and founder member Women’s Chamber of Industry and Commerce, Jaffna Christy Shylajah, CEO Hambantota District Chamber of Commerce Krishanti Weerasinghe, Senior Lecturer, University of Jaffna Thevaranchany Sivaskaran, Chief Operating Officer Strategic Alliance PR Rezani Aziz, Chairperson Women’s Chamber of Industry and Commerce Saroshi Dubash, Creative Director Buddhi Batiks Darshi Keerthisena de Livera, Chairperson, Grant McCann Neela Marikkar and Vice chairperson Women’s Chamber of Industry and Commerce Rifa Musthapha.

Smart thing

Investing in women, and particularly women entrepreneurs, is not only the right thing to do, but the smart thing to do. Data from the World Bank and other institutions show that women-owned small and medium-sized enterprises drive economic growth and create jobs. This is true in the United States and it is true around the world. And women who are successful in business are also empowered to be leaders in their communities and countries.

Take for example, the case of Inoka Dissanayake. In 2011 Dissanayake started a small handbag business out of her home in Angunakolapelassa in Sri Lanka’s deep south. When word about the quality of Inoka’s bags spread, demand multiplied, but Inoka did not have money to purchase additional machines or hire more staff.

Like Inoka, most women in the area trying to establish or operate a business, face similar challenges. Opportunities to improve their businesses and access loans are limited. To address these problems, the Hambantota District Chamber of Commerce (HDCC), through a grant from the Secretary of State’s Office of Global Women’s Issues (S/GWI), is providing 50 aspiring and current businesswomen with loans and training on how to manage a business.

Inoka applied. After receiving training, she was granted a loan to purchase three sewing machines and hire a cloth cutter. As a result, Inoka increased her production almost threefold.

“Since I expanded my business, I was able to hire more people and provide them with an income too. This is a good experience for them. There are many people around here who are interested in working for me. Some people have even asked me whether they could come and work at night after my current staff leave for the day.”

Exception

Unfortunately, Inoka is an exception, rather than the rule. Women’s success in entrepreneurship is often hindered by barriers that undermine their ability to start or to expand their business. Access to markets and credit is still a major challenge for women entrepreneurs today, as is access to training, mentors and technology.

Women confront discriminatory laws and practices, including lack of property rights. And while these barriers are common to both men and women, women often face additional and unique challenges of managing domestic responsibilities along with their business obligations.

Given the overwhelming evidence in support of women in driving economic growth, we cannot afford to ignore these barriers. Instead, we must actively seek to overcome them by developing innovative policies and brokering partnerships across sectors and national borders to harness this underutilised potential for growth.

The United States is playing an active role in this endeavour. At this week’s South Asia Women’s Entrepreneurship Symposium, participants will identify key obstacles to women’s access to resources, markets and networks.

They will then develop an action plan to advance women’s awareness of their rights and build capacity and leadership skills necessary to grow their businesses.

Following the symposium, the action plan developed in Dhaka will be used to identify additional investments aimed at promoting women’s entrepreneurship throughout the region and contribute to regional economic growth, peace, and stability.

This is an exciting time in South Asia with a young and dynamic workforce enjoying ever-expanding opportunities to engage the global economy and improve the quality of life. We truly cannot afford to squander the economic potential that women represent if we want to improve prosperity for all – men and women, girls and boys. We must invest in girls’ education to ensure that they have an equal opportunity to succeed in the workforce. We must continue to confront social, cultural and political barriers to women’s full inclusion in our economies. In doing so, we embrace the fullest potential for our societies and future.

Melanne S. Verveer is the US Ambassador-at-Large for Global Women’s Issues and Michele J. Sison is the US Ambassador to Sri Lanka and the Maldives.