STRENGTHENING WOMEN’S ASEAN IN ENTREPRENEURSHIP WOMEN’S STRENGTHENING ENTREPRENEURSHIP IN ASEAN Towards increasing women’s participation in economic activity Increasing gender equality in access to education, employment and entrepreneurship has been an important component of strategies to stimulate greater and more inclusive Strengthening Women’s economic growth around the world. Southeast Asian countries have shown considerable commitment to gender issues over recent years. However, whereas economic growth and better targeted social policies have contributed to shrinking gender gaps in terms of Entrepreneurship educational attainments in the region, significant disparities remain in women’s labour force participation, job quality, and earnings. in ASEAN Developed in partnership with ASEAN, this report provides a comprehensive analysis of women’s participation in the labour market in the Southeast Asia region today. It Towards increasing women’s assesses the progress achieved towards gender equality in education and highlights the remaining challenges to reduce outstanding gaps in a wide range of labour market participation in economic activity outcomes. It offers an in-depth analysis of the status of women’s entrepreneurship as well as the related policy and programme landscape in all 10 of the ASEAN member states, and proposes measures to advance the role of women as entrepreneurs and business owners in the region. This report forms part of a series of papers being developed by the OECD specifically for policy makers in the Southeast Asia region to support the design and implementation of entrepreneurship and gender equality policies at both the national and the community level in ASEAN. www.oecd.org/southeast-asia/ Funded by the Government of Canada Funded by the Government of Canada ASEAN Women cover [9].indd 2 25/08/2017 10:35 Strengthening Women’s Entrepreneurship in ASEAN “Towards increasing women’s participation in economic activity” September 2017 2 │ This report is published under the responsibility of the Secretary-General of the OECD. It is the result of a joint collaboration between the OECD and the ASEAN Coordinating Committee for Micro, Small and Medium Enterprises. The opinions expressed and the arguments employed herein do not necessarily reflect the official views of neither OECD nor ASEAN member countries. This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Strengthening Women’s Entrepreneurship in ASEAN │ 3 Foreword Ensuring that women have equal access to the “three E’s” that unlock economic opportunity – education, employment and entrepreneurship – is critical to forge stronger, more sustainable and inclusive growth. Women’s full participation in the labour market boosts productivity and drives innovation, and more broadly, women’s economic empowerment plays a fundamental role in building more cohesive societies. Removing barriers to equality between women and men remains a challenge shared by governments around the world, including OECD countries. However, given structural challenges such as the digital transformation, looming population ageing and a shrinking labour force, it will be more important than ever that Southeast Asian governments mobilise all of their available talents, both male and female. While Southeast Asian women have made considerable gains in education, this has not yet translated into full access to employment or entrepreneurship. Data indicates that women’s participation in the ASEAN labour market could be further strengthened, with greater access for women to quality jobs. Moreover, women-owned micro-, small- and medium-sized enterprises (MSMEs1) are often of smaller scale and scope than firms owned by men, with many remaining at the micro level or in the informal sector, despite their potential to expand beyond borders and take advantage of the opportunities offered by improved regional integration. The ASEAN Economic Community (AEC) has put emphasis on gender equality since its inception. To tackle remaining gaps in outcomes between men and women in the region, the AEC has recently begun to increase its focus on supporting women’s entrepreneurship, in particular within the context of the ASEAN Strategic Action Plan for SME Development 2016-2025. Developed in partnership with ASEAN, this report discusses labour market participation of women and women’s entrepreneurship in the ASEAN region today. It takes stock of key challenges women are facing, analyses the policy landscape, identifies gaps, and proposes recommendations to advance the role of women in the labour market, as entrepreneurs and business owners, presenting best practice examples from both the region and the OECD. The first chapter provides an in-depth account of recent trends in labour market gaps between men and women in ASEAN countries. It advances a comprehensive set of policy options and practices to build inclusive and resilient labour markets in the region, reaping the full benefits of women’s participation. In its second and third parts, the report complements and builds on other studies on different aspects of women’s entrepreneurship that have been carried out in the ASEAN region in recent years. It provides data and analysis for all 10 of the ASEAN member states along with a detailed overview of policies and programmes specifically geared to support women’s entrepreneurship and the development of women-owned MSMEs, at both the national and the community level in ASEAN. In doing so, it expands the analysis on women’s 1 While the report looks at all ASEAN countries, each ASEAN Member State may have its own definition of MSMEs. Strengthening Women’s Entrepreneurship in ASEAN 4 │ entrepreneurship in the region, and provides further insights on the policies needed to address the main gender gaps that are holding back women’s entrepreneurship. The methodology to develop this report is based on a systematic review of primary and secondary sources of information. It includes official statistics and draws upon relevant reports developed by other international organisations and local stakeholders. It also includes an extensive review of the programmes, projects and initiatives to support the development of women entrepreneurs and women-owned enterprises in ASEAN member states. Sources of information to collect country-level data were based on an in-depth desk research, including government websites (particularly ministries and agencies dedicated to women’s economic empowerment/gender equality, MSME development, and trade promotion), financial institutions, business support-providing organisations, women entrepreneurs’ associations, civil society organisations, and donor organisations. Additional information was sourced from published reports on the strength of the ecosystem for women’s entrepreneurship in some of the countries, as well as economic profiles. Finally, the inputs were enriched by direct feedback from stakeholders at the national level, in addition to interviews with experts. The report has benefited from extensive consultation with stakeholders from the region. It was initially discussed with the ASEAN Coordinating Committee on Micro, Small and Medium Enterprises (ACCMSME) in Kuala Terengganu, Malaysia on 16 May 2017. Its preliminary findings were subsequently presented at the ASEAN MSME Summit in Manila, the Philippines on 14 July 2017, as well as during the OECD Southeast Asia Regional Forum on 24 August 2017 in Bangkok, Thailand. It was officially launched in September 2017 at the margins of the ASEAN Economic Ministers Meeting (AEM) in Manila, the Philippines. It builds on work conducted on MSME issues in the ASEAN region within the framework of the Canada-OECD Project for ASEAN SMEs (COPAS), as well as gender-related work conducted for OECD member and partner countries. Through an extensive consultation process, the report received feedback from the ASEAN Committee on Women (ACW) as well as the ASEAN Women Entrepreneurs Network (AWEN) and other relevant stakeholders. Strengthening Women’s Entrepreneurship in ASEAN │ 5 Acknowledgments This report was developed by the OECD in partnership with the ASEAN through the ASEAN Co-ordinating Committee for Micro, Small and Medium Enterprises (ACCMSME) and the ASEAN Committee on Women (ACW). It was written under the authority of Mr. Stefano Scarpetta, Director, Directorate of Employment, Labour and Social Affairs, and Mr. Andreas Schaal, Director, Global Relations Secretariat. Mr. Alexander Böhmer, Head of Southeast Asia Division, spearheaded the project. It results from of a joint effort between the Global Relations Secretariat and the Directorate for Employment, Labour and Social Affairs, building on its recognised expertise on gender issues. Ms. Rodora Turalde-Babaran, Director together with Mr Miguel Musngi, Senior Officer, from the Human Development Directorate and Ms. Nora’in Ali, Assistant Director together with Mr Fadhlan Rifki Weno, Officer, from the Enterprise & Stakeholders Engagement Division coordinated the work at the ASEAN Secretariat and ensured its relevance and alignment. The project was managed by Mr. Max Bulakovskiy, Project Manager, and Mr. Arthur Pataud, Policy Analyst, Southeast Asia Division, OECD. Mr. Joshua Yeremiyew, Assistant in the Southeast Asia Division, provided editorial support. Chapter 1 was prepared by Mr. Alessandro Goglio, Head