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An Assessment of the Enabling Environment for Women's An Assessment Of The Enabling Environment For Women's Enterprises In Lesotho 1 An Assessment Of The Enabling Environment For Women’s Enterprises In Lesotho An Assessment Of The Enabling Environment For Women’s Enterprises In Lesotho May 2011 Prepared by Cilo Consulting: Maxine Langwenya Barbara Mabuza Doris Tshabalala An Assessment Of The Enabling Environment For Women’s Enterprises In Lesotho 2 Acknowledgements The authors are grateful to all the government ministries, public and private business development institutions, member based organizations and women entrepreneurs that contributed to this report with their time and knowledge. Special gratitude goes to the consultants who worked on various components of the report. This research has been made possible by the International Labour Organization through the ILO’s Women’s Entrepreneurship Development and Gender Equality Project, funded by the Norwegian Agency for Development Cooperation. 3 An Assessment Of The Enabling Environment For Women’s Enterprises In Lesotho Foreword The small business sector plays a crucial role in Lesotho’s development and is identified as a key tool for economic growth, job creation and poverty alleviation. (National Strategic Development Plan, 2012-2017) The current global recession holds significant challenges and opportunities for small entrepreneurs in general and even more so when viewed from a gender perspective. Women generally lack the necessary resources for starting and developing their own businesses due to gen- der based barriers and in particular Basotho women entrepreneurs often still remain in the periphery of the economy. The international Labour Organization (ILO) is working to advance opportunities for women and men to obtain decent and productive work in conditions of freedom, equity, security and human dignity. Its main aims are to promote rights at work, encourage decent employment opportunities, enhance social protection and strengthen dialogues in handling work-related issues. The Small En- terprise Programme of the ILO has had a dedicated programme, Women’s Entrepreneurship Devel- opment and Gender Equality (WEDGE) Project. Through this programme the ILO has developed and established a robust methodology and a wide range of tools for supporting women entrepre- neurs and their service providers. This research is part of a larger WEDGE project funded by the Norwegian Agency for Development Cooperation (Norad). Furthermore, the WEDGE project fol- lows a development and rights-based approach which aims to satisfy the practical needs of women entrepreneurs, to remove socio-cultural, legal and political barriers for women entrepreneurship and to advocate for an enabling environment for business development and gender equality. Vic van Vuuren Director, ILO Pretoria Office International Labour Organization. An Assessment Of The Enabling Environment For Women’s Enterprises In Lesotho 4 Introduction As part of the WEDGE Lesotho project, three (3) Separate pieces of research were commissioned and written by consultants to assist the project team in implementation of the project from 2009- 2011. This report consists of a compilation of these four research reports with the aim of further contributing to the body of knowledge in Lesotho about women entrepreneurs. The reports have a specific focus on growth oriented women entrepreneurs. This research should be utilized by nation- al and district decision makers and business development service providers to better understand the operational and legislative and environment for women entrepreneurs in Lesotho. The responsibility for opinions expressed in these pieces of research rests solely with their authors, and publication does not constitute an endorsement by the International Labour office of the opin- ions expressed in them. 5 An Assessment Of The Enabling Environment For Women’s Enterprises In Lesotho Contents Contents pg List of abbreviations 8 Executive summary 9 1. Introduction 11 1.1 Objectives of research 12 1.2 Methodology 13 1.3 Limitations of research 13 2. The smme sector in lesotho 14 2.1 Smme definition and charectaristics 14 2.2 Women and the smme policy environment 15 3. Assessment of the enabling environment for women’s enterprises in lesotho 17 3.1 Policy leadership and coordination 28 3.1.1 Enabling aspects of policy leadership and coordination for wed in lesotho 22 3.1.2 Hindering aspects of policy leadership and coordination for wed in lesotho 23 3.1.3 Recommendations 24 3.2 Legal and regulatory issues 24 3.2.1 Enabling aspects of legal and regulatory issues for wed in lesotho 26 3.2.2 Hindering aspects of legal and regulatory issues for wed in lesotho 26 3.2.3 Recommendations 27 3.3 Promotion of wed in lesotho 27 3.3.1 Aspects enabling the promoton of wed in lesotho 29 3.3.2 Aspects hindering the promotion of wed in lesotho 29 3.3.3 Recommendations 29 3.4 Access to enterprise education and training 29 3.4.1 Enabling aspects for wed enterprise education and training in lesotho 34 3.4.2 Hindering aspects for wed enterprise education and training in lesotho 35 3.4.2 Recommendations 35 3.5 Access to business development services and information services 36 3.5.1 Enabling aspects of business development services and information services for wed in lesotho 37 3.5.2 Hindering aspects business development services and information services for wed in lesotho 37 3.5.3 Recommendations 38 3.6 Access to women’s enterpreneur associations and networks 38 3.6.1 Enabling aspects for access to women’s entrepreneur associations and networks in lesotho 40 3.6.2 Hindering aspects for access to women’s entrepreneur associations and networks in lesotho 40 3.6.3 Recommendations 40 3.7 Access to business premises 41 3.7.1 Enabling aspects to access to business premises for women’s enterprises in lesotho 42 3.7.2 Hindering aspects to access to business premises for women’s enterprises in lesotho 42 3.7.3 Recommendations 43 An Assessment Of The Enabling Environment For Women’s Enterprises In Lesotho 6 3.8 Access to markets 43 3.8.1 Enabling aspects to access to markets for women’s enterprises in lesotho 45 3.8.2 Hindering aspects to access to markets for women’s enterprises in lesotho 46 3.8.3 Recommendations 46 3.9 The state of research on women smme’s 46 3.9.1 Enablings aspects of research on women smme’s in lesotho 47 3.9.2 Hindering aspects of research on women smme’s in lesotho 48 3.9.3 Recommendations 48 4 Conclusions 48 Annexes 50 7 An Assessment Of The Enabling Environment For Women’s Enterprises In Lesotho Acronyms AfDB African Development Bank AGOA African Growth and Opportunity Act ALE Association of Lesotho Employers and business BEDCO Basotho Enterprise Development Corporation BDS Business Development Services CBL Central Bank of Lesotho CEF Commonwealth Education Fund CEDAW Convention on the Elimination of all forms of Discrimination Against Women DWCP Decent Work Country Programme ESSP Education Sector Strategic Plan FPE Free Primary Education GoL Government of Lesotho GOWE Growth Oriented Women’s Enterprises HIV/AIDS Human Immuno Virus/Acquired Immune Deficiency Syndrome ILO International Labour Organisation IMP Industrialisation Master Plan INDF Interim National Development Framework IPRGS Interim Poverty Reduction and Growth Strategy LCCI Lesotho Chamber of Commerce and Industry LCTU Lesotho Congress of Trade Unions LEAP Lesotho Enterprise Assistance Programme LNDC Lesotho National Development Corporation LTDC Lesotho Tourism Development Corporation LNFOD Lesotho National Federation for Organisation of Disabled MCA-L Millennium Challenge Account – Lesotho MGYSR Ministry of Gender, Youth, Sports and Recreation MOET Ministry of Education and Training MOF Ministry of Finance and Development Planning MSG Matching Grant Scheme MSME Micro, Small and Medium Enterprises MTEC Ministry of Tourism, Environment and Culture MTICM Ministry of Trade and Industry, Cooperative and Marketing NCDC National Curriculum Development Centre NGO Non- Governmental Organisation NORAD Norwegian Agency for Development Cooperation NUL National University of Lesotho SABS South African Bureau of Standards SACU Southern African Customs Union SADC Southern African Development Community SMME Small, Medium and Micro Enterprises TNA Training Needs Analysis TTI Trades Training Institutions TVD Technical and Vocational Training Department TVET Technical and Vocational Educational Training UNDP United Nations Development Programme UNESCO United Nations Educational, Scientific and Cultural Organisation UNICEF United Nations Children’s Fund USAID United States Agency for International Development VAW Violence against Women WE Women’s Enterprises WEDGE Women’s Entrepreneurship Development and Gender Equality WIB Women in Business An Assessment Of The Enabling Environment For Women’s Enterprises In Lesotho 8 The introduction outlines why it is necessary to Executive summary carry out an assessment of conditions for small and medium enterprise development, includ- Small business and entrepreneurship play an ing women entrepreneurs. It also brings to the important role in stimulating economic ac- fore the difficulties that women entrepreneurs tivity, creating jobs, alleviating poverty and encounter in growing and nurturing their enter- uplifting standards of living. This fact is now prises to full potential and in the process, create trite especially as there are studies to buttress it jobs and income for themselves and others. both regionally and internationally1. Lesotho is a developing country with high unemploy-
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