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The Assessment of the Environment for Women Entrepreneurship In ASSESSMENT OF THE ENVIRONMENT FOR WOMEN ENTREPRENEURSHIP IN MONTENEGRO Assessment of the environment for women entrepreneurship in Montenegro Podgorica, September 2013. Title: Assessment of the environment for women entrepreneurship in Montenegro Author: Montenegrin Employers Federation (MEF) Co‐author: IPSOS Strategic Marketing (ISM) Published by: Montenegrin Employers Federation (MEF) IX crnogorske brigade 11 81 000 Podgorica, Montenegro T: +382 20 209 250 F: +382 20 209 251 E: upcg@t‐com.me www.poslodavci.org Editor: Zvezdana Oluić Design and print: M.A.S. Code, Podgorica Copies: 200 copies Place and date of publishing: Podgorica, September 2013. Expressions used in this publication make no distinction between female and male gender but imply both genders. Work on this project was made possible with support of the Government of the Kingdom of Sweden. This publication has been published with the support of the (Bureau for Employers` Activities of the) International Labour Organization. The responsibility for the opinions expressed in this report rests solely with the author/co‐author. The International Labour Organisation (ILO) takes no responsibility for the correctness, accuracy or reliability of any of the materials, information or opinions expressed in this report. CONTENT Preface ........................................................................................................................................... 5 Acknowledgement .......................................................................................................................... 6 List of Abbreviations ....................................................................................................................... 7 1. Executive Summary ................................................................................................................. 9 2. Introduction .......................................................................................................................... 18 2.1 Research objectives ........................................................................................................................ 20 2.2 Methodology .................................................................................................................................. 20 2.3 Limitations of the research ........................................................................................................... 22 3. Framework for understanding conditions for women entrepreneurship in MNE .................... 23 3.1 Legal Framework ............................................................................................................................ 23 3.2 Political Participation ..................................................................................................................... 24 3.3 Economic Environment .................................................................................................................. 25 3.4 Labor Market .................................................................................................................................. 28 3.5 Business environment in Montenegro ........................................................................................... 30 3.6 Small and Medium‐Sized Enterprises ............................................................................................. 33 3.7 Companies owned by women ........................................................................................................ 35 4. Assessment of environment for the development of women entrepreneurship in MNE ......... 38 4.1 Assessment of the management and coordination policy ............................................................. 38 4.1.1 Institutional mechanisms .................................................................................................... 38 4.1.2 So far progress assessment ................................................................................................. 42 4.2 Assessment of regulatory and legal issues ..................................................................................... 43 4.2.1 Strategic documents ............................................................................................................ 43 4.2.2 Business barriers ................................................................................................................. 47 4.3 Assessment of Promotion of Women as Entrepreneurs................................................................ 50 4.4 Assessment of Education and Training Access ............................................................................... 53 4.4.1 Analysis of current situation ................................................................................................ 53 4.4.2 Missing skills and knowledge .............................................................................................. 56 4.4.3 Entrepreneurial learning in the system of informal education .......................................... 57 4.5 Assessment of the Access to Credits and Financial Services.......................................................... 59 4.5.1 Demands for credits ............................................................................................................ 59 4.5.2 Available credits .................................................................................................................. 62 4.5.3 Women entrepreneurs as credit users ................................................................................ 65 4.6 Assessment of the Access to Services for Business Development and to Information ................. 66 4.7 Assessment of Associations and Networks of Women Entrepreneurs .......................................... 67 4.8 Assessment of the Access to Business Facilities ............................................................................ 69 4.9 Assessment of the Market Access .................................................................................................. 70 4.10 Assessment of Researches on Women Entrepreneurship ........................................................... 71 Resources ..................................................................................................................................... 74 MEF ‐ Assessment of the environment for women entrepreneurship in Montenegro Preface As owners of small and medium sized companies, women are generally perceived as unequal player in the economic arena. Compared to men entrepreneurs, women often have unequal status and credibility, it is more difficult for them to establish a company and they need more time in order to get accepted in business community. Along with the problems faced by all participants in business and especially by those belonging to the small companies, it is often said that women when establishing and developing business do not have equal starting point as compared to the social, educational and technological challenges as well as access to economic and financial resources. In addition to the lack of gender sensitive policies and their underdevelopment as well as economic sectors dominated by men and family commitments borne by women in most of the countries, it is clear that women entrepreneurship is followed by numerous factors that significantly limit or slow down its development. In order to mitigate and overcome those problems, developing countries such as Montenegro, can follow a successful path of governments of developed countries where women entrepreneurs are identified as special target group, and which have adopted specific program measures, policies and strategies. Such an approach is a base of this strategic document which has been created by Montenegrin Employers Federation (MEF) and International Labor Organization (ILO) in order to provide support to policy and decision makers and thus to help future dialogue between public, private and civil sectors in preparation of program measures, policies and strategies which may provide expected results and contribute to further development of women entrepreneurship in Montenegro. In that case, we can expect that the role and position of women in the world of work, is to be accepted as the standard. Although the global economic crisis quite negatively reflects on the Montenegrin economy, at the same time it provides some challenges and possibilities for small businesses, especially if considered from gender perspective. Having in mind the role of small and medium business as key factor for economic growth, employment, poverty reduction and country development, it is clear that our society must not miss such opportunity. As a contribution to such activities, ILO and MEF prepared a strategic document which has been realized within the project “Assessment of the environment for women’s entrepreneurship in Montenegro“, using the AfDB/ILO Integrated Framework Tools and Methodologies for Assessment. Being a long‐standing and trusted partners, ILO and MEF had the aim to present with this content the practical needs of women entrepreneurs and to contribute to the removal of cultural, social, legal and political obstacles which they face in the work, advocating the intensification of the processes which lead to creation of favorable environment for the development of women business and gender equality in Montenegro. Dragan Radić Predrag Mitrović Specialist for Employers Activities President ILO Office for Central and Eastern Europe Montenegrin Employers
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