WORKING PAPER 6

WOMEN IN WASH ENTERPRISES: LEARNING FROM FEMALE ENTREPRENEURSHIP IN , INDONESIA & LAO PDR

Enterprise in WASH Working Paper 6 – 1 ACRONYMS

‘Enterprise in WASH’ is a joint research project led by the Institute for Sustainable Futures (ISF-UTS) at the University of Technology Sydney, which investigates the role of private and social enterprises in the delivery of water, sanitation and hygiene (WASH) ADB Asian Development Bank MoWA Cambodian Ministry of services for the poor. Partner organisations are shown Women’s Affairs below. For other Enterprise in WASH publications, AFP Access to Finance for the Poor see www.enterpriseinwash.info MSMEs Micro, Small and Medium-sized ASPPUK Association for Women in Enterprises Small Business Assistance MWEC Mekong Women’s BDS Business Development Support Entrepreneurship Challenge BMOs Business Membership NGO Non Government Organisation Organisations NSAW National Strategy for the BoL Bank of Lao PDR Advancement of Women CEDAW Committee on the Elimination ODI Overseas Development of Discrimination Against Institute Women PBES Provincial Business CSO Civil Society Organisation Environment Scorecard CWEA Cambodia Women PNPM National Program for Entrepreneurs Association Community Empowerment DFAT Department for Foreign Affairs PNPM National Program for and Trade Community Empowerment EMWF East Meets West Foundation PSF PNPM Support Facility ESCAP United Nations Economic and SMEs Small and Medium-sized ABOUT THE AUTHORS Social Committee for Asia- Enterprises The Institute for Sustainable Futures (ISF) was established by the Pacific University of Technology, Sydney in 1996 to work with industry, SNV SNV Development government and the community to develop sustainable futures GEM Global Entrepreneurship Organisation through research and consultancy. Our mission is to create Monitor change toward sustainable futures that protect and enhance the SPP Women’s Specific Savings environment, human well-being and social equity. We seek to adopt GIZ Deutsche Gesellschaft für an inter-disciplinary approach to our work and engage our partner and Loans organisations in a collaborative process that emphasises strategic Internationale Zusammenarbeit STEPS Supporting Talent, decision-making. For further information visit: www.isf.uts.edu. IDE International Development Entrepreneurial Potential and ACKNOWLEDGEMENTS Enterprises (iDE) The authors thank Gabrielle Halcrow from SNV Netherlands Success IFC International Finance Development Organisation and Tara Hill from East Meets West TEA Total Early-Stage Foundation for reviewing a draft of this paper. Corporation Entrepreneurial Activity PHOTO CREDITS ILO International Labour UN United Nations Women leading and involved in WASH Enterprises in Viet Nam Organisation Institute for Sustainable Futures UNESCO United Nations Educational, ISF UTS Institute for Sustainable University of Technology, Sydney Scientific and Cultural PO Box 123 Futures at University of Organisation Broadway, NSW, 2007 Technology Sydney www.isf.edu.au USAID United States Agency for ITC International Trade Centre © UTS September 2017 International Development IWAPI Indonesian Business Women CITATION WASH Water, Sanitation and Hygiene Leahy, C., Lunel, J., Grant, M., and Willetts, J., (2017), ‘Women in WASH Association Enterprises: Learning from female entrepreneurship in Cambodia, WDC Women’s Development Centres Indonesia and Lao PDR’, Enterprise in WASH – Working Paper 6, Lao PDR Lao People’s Democratic Institute for Sustainable Futures, University of Technology Sydney Republic YEAL Young Entrepreneurs Association of Laos LBWA Lao Businesswomen’s Association LDPW Law on Development and Protection of Women LWU Lao Women’s Union MHM Menstrual Hygiene Management 2 – Enterprise in WASH Working Paper 6 Enterprise in WASH Working Paper 6 – 3 3. EFFECTIVE SUMMARY EXECUTIVE SUMMARY

The purpose of this working paper is The WASH sector in South-East Asia ENABLERS AND CHALLENGES • Lower levels of education and to document learning about female and elsewhere is increasingly looking EXPERIENCED BY FEMALE literacy are barriers for women entrepreneurship in other sectors beyond to local enterprises to provide WASH ENTREPRENEURS entrepreneurs. In Cambodia, lower water, sanitation and hygiene (WASH) in products and services to boost levels Taking three countries as case studies levels of education and illiteracy are order to better understand recent efforts of access. Private sector participation is – Cambodia, Indonesia and the Lao key barriers to effective business to increase women’s involvement in encouraged in some contexts in order People’s Democratic Republic (Lao management and success. These lower WASH-related enterprises. to fill gaps where government is not PDR) – we explored the available grey levels are brought about by social able or willing to provide services. For and academic literature and synthesised conventions leading to a lack of family Previous research conducted by ISF-UTS example, Vietnam has pro-private sector evidence on the enablers and challenges support for young women’s and ’ Levels of female found that little had been documented policies in place to attract Vietnamese that women were reported to experience access to further education. In Lao entrepreneur- about the ways in which women were and international businesses to the WASH in establishing businesses in these PDR, the 2015 census showed that ship are also involved in WASH enterprises, or about sector, especially in regard small-scale countries. Key findings included: 90% of males were literate compared affected by the potential for women entrepreneurs piped water systems. Enterprises are to 80% of females, and that women to lead successful WASH businesses. the compet- also playing roles in rural sanitation in • Women’s roles in small-scale living in rural areas without roads have Within the WASH sector more broadly, ing demands a number of countries, and their roles enterprises are significant in all three the lowest literacy rates. recognition of the value of women’s on women’s include masons and mason hands, countries. In all three countries there involvement, and of promoting gender • In all three countries women have time beyond small piped water system owners and were high rates of female ownership equality in all aspects of WASH less access to finance than men. In formal work, operators, water filter salespersons, of enterprises. However, they were programming, including enterprises, Cambodia this is reported to be due their ability to sanitation marketing representatives, concentrated in particular sectors has led to a desire to better understand to their lower levels education and soap and hygiene product salespeople, (e.g. retail, textiles, and handicrafts) travel, their lim- women’s roles, opportunities and confidence, their lack of collateral and and water kiosk operators. and women were often associated ited access to challenges in the private sector provision with ‘necessity-driven’ enterprises documented credit histories, unclear technology, and of WASH products and services. Despite high levels of entrepreneurial rather than stable or growth-oriented legal rights and the prejudices of unequal rights activity by women generally in South- financial institutions. In Indonesia the across many enterprises. within legal East Asia, our research to date has found reported reasons include: women’s sectors contribute significantly to their • Socio-cultural and religious norms that women were not well represented lack of collateral; their inability to pay frameworks. communities and economies, despite the affect women’s ability to develop and amongst WASH entrepreneurs in this high interest rates on loans for their fact that in order to do so, they have to succeed in businesses in all three region, and at times they were completely predominantly small-scale businesses; overcome barriers to finance, societal countries. In many contexts, women’s absent. Research undertaken within their lack of confidence in their ability expectations around their roles in the time is typically divided between the ‘Enterprise in WASH’ initiative also When to write business proposals for loans; home, and often have lower education their home based work, reproductive uncovered many barriers and enablers and risk avoidance. In Lao PDR, women levels in comparison to men. Levels considering and community roles, which means that impact on WASH entrepreneurs’ do not usually access formal financial of female entrepreneurship are also how it may that they often have less time to ability to run successful and sustainable services due to: a lack of confidence; affected by the competing demands on be possible engage in business. In Cambodia, businesses (Willetts et al., 2016). What a lack of knowledge; the distance women’s time beyond formal work, their to support women’s subordination to men under is not known, however, is the extent to from banks (in rural areas) and high ability to travel, their limited access to women’s the (traditional “Code of which these barriers and enablers are tax rates. Also in Lao PDR, financial technology, and unequal rights within Women”) limits women’s economic gendered – that is, if and how they are involvement institutions are reported to perceive legal frameworks. There are large independence and opportunities. In impacted by gender norms in particular in WASH women as high-risk borrowers. As a numbers of formal female-owned small Indonesia, 87% of the population is contexts. enterprises, it result, women often take out loans in and medium-sized enterprises (SMEs) in is important Muslim and religious norms mean their husbands’ names or seek credit emerging markets. However, the average This working paper is based on the to understand women’s duties to their husbands and from other sources such as informal growth rates of women’s enterprises are premise that when considering how it households take precedence over their savings schemes, money lenders and female entre- businesses. Women are prevented from significantly lower than the growth rates may be possible to support women’s preneurship or microfinance organisations (such as of those run by men. Both female and involvement in WASH enterprises, taking on jobs that involve contact those established by NGOs). male entrepreneurs are influenced by it is important to understand female overall within with men and there are restrictions on the business environments in which they entrepreneurship overall within a country a country women’s rights to land, ownership of operate, but these influencing factors are context. It is necessary to understand context. property and control over capital. In different for men and women due to the what challenges, opportunities, programs Lao PDR, there is a deeply embedded religious, cultural and economic norms and strategies are already documented societal expectation that women will of the societies in which they operate, in relation to women establishing and be responsible for caregiving and as well as the competing demands that working within micro-enterprises and household work, which limits the time women experience beyond formal work. SMEs. This working paper is the first step they can devote to their businesses in a broader inquiry into women in WASH and their mobility, and therefore their enterprises, and is based on desktop access to markets and opportunities review of documented material in English. for work far from the home.

4 – Enterprise in WASH Working Paper 6 Enterprise in WASH Working Paper 6 – 5 EXECUTIVE SUMMARY EXECUTIVE SUMMARY

• Business development support (BDS) TYPICAL CHALLENGES FOR WASH • Operational challenges (concerning services tend not to be tailored to the ENTERPRISES AND POTENTIAL expenses and access to resources needs of women. In Cambodia support GENDERED DIMENSIONS and poor infrastructure) will affect services mostly offer vocational This working paper also drew on previous women and men differently since there training which reflects traditional ‘Enterprise in WASH’ research which are differences in women’s and men’s gender roles and fails to respond documented typical challenges faced by ability to negotiate with others for their to the particular needs of women. WASH enterprises, and considered the needs to be met, to pay expenses; and Membership fees for business member potential gendered dimensions of these differences in how women and men are organisations are also prohibitive for challenges. For example: affected by poor infrastructure. women, particularly those from rural • Challenges related to engaging In all three areas. In Indonesia, although many • Challenges related to access to markets (which concern demand, with government (related to policies countries we women benefit from BDS training, and legislation, corruption among there is little recognition of women- competition, social and business found programs networks, and the affordability of government officials, unequal access and strategies specific requirements in terms of to subsidies and support) will affect services or the needs of different types WASH services to customers) affect designed to women and men entrepreneurs female and male entrepreneurs in of women entrepreneurs (‘necessity- different ways. For example, there are support and driven’ and ‘growth-oriented’ differently due to: differences in empower fe- women’s and men’s ability to engage likely to be differences in women’s entrepreneurs). Also, women may and men’s abilities and opportunities male entrepre- not know about the business training with the customer base; differences in literacy which affects the ability to communicate with government neurs, although programs available to them despite representatives. Differences in levels of it is not known being willing to pay for such programs. to understand information about market needs; differences in the literacy will affect women’s confidence, how successful • A range of other key enablers and ability or opportunity to form business and their ability to understand policies they have been. barriers were documented. A small partnerships; and differences in access and processes. number of factors were identified in to social and business networks. Indonesia that led to women being supported in their entrepreneurial • Financial challenges (limited financing endeavours (women’s ability to options for business start-up, interest advance based on learning on the job, rates, meeting bank loan requirements, limited access and the need to make output large socio-cultural and women’s skills in networking) and to finance barriers in Lao PDR (favourable legislation enough to achieve economies of scale) for enterprises generally that has affect female and male entrepreneurs differently due to: differences in led to greater numbers of women regulatory entrepreneurs). The barriers identified women’s and men’s abilities to $ access finance or meet bank loan barriers include informal taxes and fees (such network as having to pay officials to stay in requirements; and differences in women’s and men’s abilities to cope and business), poor infrastructure which networking limits access to markets, and socio- with late payments by customers, high cultural norms which limit women’s interest rates and cash-flow issues. opportunities to build networks. • Human resource challenges (limited religion technical and business skills, the need for capacity building, and the limited availability of time) also have gendered dimensions. These include: differences corruption in women’s and men’s access to limited access capacity building opportunities; and to business differences in the amounts of time education and development training barriers women and men have to contribute to services their enterprise roles.

FIGURE 3 SUMMARY OF THE BARRIERS FOUND ACROSS THE THREE COUNTRIES (CAMBODIA, LAO PDR AND INDONESIA).

6 – Enterprise in WASH Working Paper 6 Enterprise in WASH Working Paper 6 – 7 PROGRAMS AND STRATEGIES • Women’s training and business AREAS FOR FURTHER RESEARCH WHO IS THIS WORKING PAPER FOR? SUPPORTING FEMALE development support needs: ENTREPRENEURS This working paper points to several The working paper is relevant to o targeted business development areas where there is more to be learnt. governments, NGOs and donors that This working paper documents a range support for growth-oriented women The available literature covered in this have an interest in driving gender of programs and strategies in place entrepreneurs, including field paper did not examine the relationships equality in the WASH sector, particularly to support female entrepreneurs in trips; peer, individual and group between multiple layers of inequality within private or social enterprises. It Cambodia, Indonesia and Lao PDR, mentoring; business mentoring and within a society, and how these summarises the available information potentially providing useful ideas for coaching and networking relationships impact on women’s ability to on the challenges and enablers that supporting women in WASH enterprises. establish and run successful enterprises. influence women in WASH enterprises The literature available on these o business development services that provide women with access to new Further research is therefore needed to in the three countries, and it highlights a programs and strategies is limited, and examine how socio-economic status, age, number of existing strategies to support therefore this working paper is designed techniques, market-based ideas and equipment ethnicity and disability influence women’s female entrepreneurship. By drawing to be a first step in a broader inquiry abilities to establish or participate in on research conducted through the o targeted skills training to into women in WASH enterprises. It WASH enterprises. Enterprise in WASH initiative, and by disadvantaged groups (including highlights the need for further empirical identifying links to broader research on women) in technical skills and on- Another gap identified through this research to obtain a richer picture of how entrepreneurship, this working paper the-job enterprise training. research was the relationship between women are involved in WASH enterprises, begins to identify the ways in which the barriers and opportunities experienced the challenges they face, and the • Links to existing initiatives that WASH sector can draw on lessons learned by female entrepreneurs generally, and opportunities available to them. support women entrepreneurs: from broader efforts to increase women’s the extent to which these are relevant o leveraging national strategies that economic empowerment through In all three countries we found programs to the WASH sector. This paper makes aim to support women’s economic entrepreneurship. and strategies designed to support and suggestions as to some of the ways in empowerment empower female entrepreneurs, although which these relationships may exist, but it is not known how successful they o working through women’s empirical work is needed to test these have been. Examples of programs and business associations or related inferences. strategies were found in the following organisations that are likely to be areas: already involved in policy advocacy There is also more to be explored in terms and specific services or training for of how organisations such as NGOs, • Women’s finance needs: women entrepreneurs. donors, associations and government o linking women with start-up departments are supporting female support and funding (for example, enterprises in the three country contexts, seed funding based on competitive as only some documented examples application processes) were found, and likely many more exist o supporting village banking and in practice. In addition, the effectiveness microcredit schemes that offer of the programs and strategies adopted low-interest loans to women were not well documented in the available entrepreneurs literature. This working paper therefore establishes the need for further empirical o targeted savings and loans research to define strategies to support schemes, in conjunction with women wishing to work, or already business-related training. working, in WASH enterprises

8 – Enterprise in WASH Working Paper 6 Enterprise in WASH Working Paper 6 – 9 contents

EXECUTIVE SUMMARY 4 TABLES EXAMPLES OF WASH ENTERPRISES 1. INTRODUCTION 12 TABLE 1. 15

2. BARRIERS AND ENABLERS FACING WASH ENTERPRISES 15 TABLE 2. CHALLENGES FACED BY WATER AND SANITATION ENTERPRISES AND POSSIBLE GENDERED DIMENSIONS OF THESE CHALLENGES 17 3. WOMEN ENTREPRENEURS IN CAMBODIA 19 TABLE 3. SUMMARY OF BARRIERS FACING WOMEN ENTREPRENEURS IN CAMBODIA 26 COMMON BARRIERS FACED BY WOMEN ENTREPRENEURS 20 TABLE 4. SUMMARY OF DOCUMENTED PROGRAMS AND STRATEGIES STRATEGIES FOR PROMOTING AND ENABLING FEMALE ENTREPRENEURS 23 AIMING TO SUPPORT WOMEN ENTREPRENEURS IN CAMBODIA 27

SUMMARY 25 TABLE 5. SUMMARY OF ENABLERS OF WOMEN ENTREPRENEURS IN INDONESIA 34

4. WOMEN ENTREPRENEURS INDONESIA 28 TABLE 6. SUMMARY OF BARRIERS FACED BY WOMEN ENTREPRENEURS IN INDONESIA 34 COMMON ENABLERS OF WOMEN ENTREPRENEURS 29 TABLE 7. SUMMARY OF DOCUMENTED PROGRAMS AND STRATEGIES AIMING TO SUPPORT WOMEN ENTREPRENEURS IN INDONESIA 35 COMMON BARRIERS FACED BY WOMEN ENTREPRENEURS 29 TABLE 8. SUMMARY OF ENABLERS OF WOMEN ENTREPRENEURS STRATEGIES FOR PROMOTING AND ENABLING FEMALE ENTREPRENEURS 31 IN LAO PDR 42

SUMMARY 33 TABLE 9 SUMMARY OF BARRIERS FACED BY WOMEN ENTREPRENEURS IN LAO PDR 42 5. WOMEN ENTREPRENEURS IN LAO PDR 36 TABLE 10. SUMMARY OF DOCUMENTED PROGRAMS AND STRATEGIES AIMING TO SUPPORT WOMEN ENTREPRENEURS IN LAO PDR 43 OVERVIEW OF WOMEN ENTREPRENEURS IN THE LAO PDR ECONOMY 36 TABLE 11. IDEAS TO INFORM EMPIRICAL RESEARCH ON CHALLENGES COMMON ENABLERS OF WOMEN ENTREPRENEURS 37 AND GENDERED DIMENSIONS OF WASH ENTERPRISES 48

COMMON BARRIERS FACED BY WOMEN ENTREPRENEURS 37 TABLE 12. DOCUMENTED EXAMPLES OF STRATEGIES AND PROGRAMS TARGETING WOMEN ENTREPRENEURS ACROSS THREE COUNTRIES 51 STRATEGIES FOR PROMOTING AND ENABLING WOMEN ENTREPRENEURS 39 FIGURES SUMMARY 41 FIGURE 1. CONCENTRATION OF WOMEN’S BUSINESSES IN CAMBODIA, BY SECTOR 20 6. SUPPORTING WOMEN IN WASH ENTERPRISES 44 FIGURE 2. CONCENTRATION OF WOMEN’S BUSINESSES 7. REFERENCES 53 IN INDONESIA, BY SECTOR 28

FIGURE 3. SUMMARY OF THE BARRIERS FOUND ACROSS THE THREE COUNTRIES (CAMBODIA, LAO PDR AND INDONESIA) 47

10 – Enterprise in WASH Working Paper 6 Enterprise in WASH Working Paper 6 – 11 1. INTRODUCTION 1. INTRODUCTION

BACKGROUND AND RATIONALE We need a better understanding This working paper is the first step This working paper has been developed to ensure that women are equal SUPPORT FOR GENDER in a broader exploration of gender as part of the ‘Enterprise in WASH’ beneficiaries of the incentives, and EQUALITY THROUGH THE issues pertaining to the ownership and research initiative (2012–2018) which policies offered to encourage people ADDIS ABABA ACTION AGENDA management of small-scale private sector explores effective roles for small-scale to establish and work within WASH ‘We are committed to women’s delivery of WASH products and services. private sector businesses in the provision enterprises. Women are critical players in and girls’ equal rights and It does not consider the broader issue of of water and sanitation services. This the WASH sector, and their contribution opportunities in political and what models of WASH service delivery, initiative is led by the Institute for is vital for the success of WASH services economic decision-making ownership and management best support Sustainable Futures at University of and the promotion of hygiene behaviours. and resource allocation and increased gender equality. For example, civil society organisations Technology Sydney (ISF-UTS) which We need to removing any barriers that Women’s entrepreneurial activities have have often found that women fill vital works in partnership with selected civil prevent women from being full increased over the past decade to about skilled labour needs when trained and a better society organisations and research participants in the economy. We two-thirds the level of men’s world supported, and are successful sanitation understanding organisations, with funding from the resolve to undertake legislation wide (Allen et al., 2007 in Cabrera and marketers (G. Halcrow, pers.comm, 2017). to ensure Department for Foreign Affairs and Trade and administrative reforms to Mauricio, 2017). Regional differences in Women’s involvement in WASH-related that women (DFAT). give women equal rights with gender parity have been identified, and services needs to be better understood are equal men to economic resources, in Indonesia, for example, the female-to- The aim of this component of ‘Enterprise in order to identify the potential benefits, beneficiaries of including access to ownership male Total Early-Stage Entrepreneurial in WASH’ is to better understand including whether or not women can be the incentives, and control over land and Activity (TEA) ratio is 1.24. This is the women’s involvement in small-scale economically empowered through their and policies other forms of property, credit, highest level of female entrepreneurship water, sanitation and hygiene (WASH) involvement in WASH enterprises, and offered to inheritance, natural resources recorded by the Global Entrepreneurship enterprises and this working paper to promote inclusivity and equity in the encourage and appropriate new technology. Monitor (GEM, 2016). Despite the high focuses on what can be learned from sector. other sectors with respect to the barriers people to We further encourage the private number of female entrepreneurs, women that female entrepreneurs face, and the Some international drivers have recently establish sector to contribute to advancing still face particular barriers to accessing key enablers, programs and strategies given more focus to gender equality and work gender equality through striving finance for entrepreneurial endeavours, that support them. in the context of WASH enterprises. In within WASH to ensure women’s full and and this affects their opportunities to 2015 the United Nations (UN) Addis enterprises. productive employment and create micro, small and medium-sized The importance of a focus on women Ababa Action Agenda was endorsed decent work, equal pay for equal enterprises. The Addis Ababa Agenda emerged in the first phase of ‘Enterprise by the General Assembly. The Agenda work or work of equal value, recognised that difficulty in obtaining in WASH’ (2013–2016). During empirical called on the international community and equal opportunities, as finance is a barrier to establishing research in Indonesia, Timor-Leste and to draw on a range of sources including well as protecting them against and growing small and medium-sized Vietnam, we found that women were the domestic private sector, to finance discrimination and abuse in enterprises, particularly those that are not well-represented amongst WASH development sources. It also promoted the workplace. We support the owned by women (UN, 2015). entrepreneurs, and at times they were social inclusion and gender equality, Women’s Empowerment Principles Barriers to finance are indeed one of the completely absent. We also found that especially through enabling women’s full established by UN-Women and the more common obstacles to enterprises women face particular barriers such as and equal participation in the economy, Global Compact and encourage – for both men and women – in the community assumptions that they are and their equal access to decision- increased investments in female- WASH sector. This is due to a lack unfit to establish WASH businesses making and leadership (Box 1). In 2016 owned companies or businesses.’ of accessible financing options, as a (Murta and Willetts, 2014; Gero et al., the United Nations High Level Panel Source: UN Addis Ababa Action result of high interest rates and/or the 2014). It was found that there was little for Water included the promotion of Agenda (2015) need for enterprises to meet formal information on the ways in which women gender equality as part of its action plan legal requirements, including providing were involved in WASH businesses, or on for improving water management and evidence of cash flows (Murta and the potential for women entrepreneurs to services worldwide (Grant et al., 2017). lead successful WASH businesses. It should be noted that while enterprises Willetts, 2014). are important elements of the WASH However, the barriers to accessing sector, they exist within a broader finance are even greater for women, political economy and water governance given a range of socio-cultural factors environment which is overseen by underpinning gender inequality. For governments. In 2010 the UN General example, more than one billion women Assembly declared that all people have globally do not use, or do not have access a right to water and sanitation services, to, the financial system (Demirguc-Kunt and governments are the primary et al., 2014). The International Finance duty bearers for the fulfillment of this Corporation (IFC) of the World Bank right. Efforts to ensure that this right has estimated that worldwide $300 is honoured must involve reducing billion is needed in financing for formal, gender discrimination in access to water, female-owned small businesses to assist sanitation and hygiene services. their viability, and more than 70% of

12 – Enterprise in WASH Working Paper 6 Enterprise in WASH Working Paper 6 – 13 1. INTRODUCTION 2. BARRIERS AND ENABLERS

female-owned SMEs have no access, or This chapter considers the roles WASH ENTERPRISES inadequate access, to financial services DEFINITIONS: TYPES OF played by small-scale enterprises in (Demirguc-Kunt et al., 2014). Research ENTREPRENEURS WASH and the typical barriers and WATER SANITATION HYGIENE also found that only 20 percent of Necessity-driven entrepreneurs: enablers they face. These barriers and • piped water • masons • local retail stores landholders are women and inequality started their business to enablers are likely to affect female and service providers • construction • soap in access to land prevails across supplement household income. male entrepreneurs differently, due to • water pump enterprises manufacturers countries with different social, cultural, differences in women’s and men’s status, They report unchanging or suppliers • hardware stores • menstrual and economic backgrounds (Namubiru- roles, networks, norms and dynamics. declining trends in customer • water truck hygiene product Mwaura, 2014). Discriminatory laws and • sales agents base and income, and they have owners manufacturers customs such as these can also be linked OVERVIEW OF THE ROLE OF (sanitation taken few actions to expand their • hand pump marketing) • menstrual to women’s difficulties in accessing businesses. ENTERPRISES IN WASH finance and engaging in small-scale Across the value chains, products and manufacturers, • faecal sludge hygiene product entrepreneurial activity, given that land Stable entrepreneurs: mostly services that are needed to ensure installers, and emptying distributors titles are often needed for financing. began their businesses out access to water, sanitation and hygiene, maintenance operators • social enterprise services of necessity to supplement there are many opportunities for micro, • plumbing services franchises. ABOUT THIS WORKING PAPER household income, but have small and medium-sized private or • bore drilling shown some signs of a desire to • pre-fabricated Against this backdrop, this working social enterprises to contribute. Along companies grow their businesses. cement paper draws on literature examining with government owned and managed • water purification manufacturers. small-scale entrepreneurs in the South- Growth-oriented entrepreneurs: systems and services, micro, small and technology East Asian context, and it looks at the entered business after identifying medium-sized enterprises (MSMEs) are production and situation of women in enterprises in an opportunity, or to take playing a part in efforts to increase WASH distribution Cambodia, Indonesia and Lao PDR. The advantage of a unique skill coverage, in line with the Sustainable • suppliers of spare scope is not confined to the WASH or background. They show Development Goals which call for all parts. sector, and it draws on experiences in consistent signs of business people to have safe and affordable other sectors (such as retail, textiles, growth. drinking water, and access to adequate handicrafts and services) in order to and equitable sanitation and hygiene by Source: Arsana and Alibhai. 2016 TABLE 1 EXAMPLES OF WASH ENTERPRISES, ADAPTED FROM inform thinking about how to promote 2030 (UN, 2015). GERO ET AL. (2013) AND MASON ET AL. (2015). gender equality within the WASH sector. Small-scale WASH enterprises have a We draw out key programs and strategies range of forms and purposes. Typical that are currently being employed It will help them to ensure that their examples are shown in Table 1 (right). in these countries to support female efforts do not exclude women, and it may entrepreneurs, and to identify further help them to contribute to the economic areas of inquiry. empowerment of women. In this paper, we make a distinction The paper is structured as follows. Firstly, between necessity-driven, stable and we present an overview of typical areas of growth-oriented entrepreneurs (see Box entrepreneurial activity in WASH, and we 2). This distinction is useful, since women outline the common enablers and barriers may sometimes be participating in the for both female and male entrepreneurs. economy out of sheer necessity, rather We then explore each country context than with an orientation or opportunity across a range of sectors, identifying to develop a successful business that will key enablers, barriers, programs help improve their livelihoods. and strategies to support women This paper identifies areas in which entrepreneurs. Finally, we consider further empirical research is needed to what this means for supporting women identify the key barriers and enablers in WASH enterprises, in terms of the for women in WASH enterprises, and to gendered dimensions of typical barriers, identify the strategies that have been and the applicability of strategies being most effective in promoting or enabling employed in other sectors. female entrepreneurs in the WASH sector. This research will be useful to actors working with enterprises (governments, donors, CSOs, communities).

14 – Enterprise in WASH Working Paper 6 Enterprise in WASH Working Paper 6 – 15 2. BARRIERS AND ENABLERS 2. BARRIERS AND ENABLERS

ENABLERS AND CHALLENGES • For sanitation enterprises: political TYPICAL CHALLENGES FACED BY WATER AND POSSIBLE GENDERED DIMENSIONS TO CONSIDER FOR EXPERIENCED BY WASH ENTERPRISES or policy support for private sector CATEGORY SANITATION ENTERPRISES FEMALE AND MALE ENTREPRENEURS While the benefits of utilising and engagement in sanitation, coordinated (Sources: Willetts et al (2016, p.22; Gero et al. 2013) (Source: Authors, 2017) supporting enterprises in some WASH activity linking demand creation and Access • low or irregular (e.g. seasonal) demand • differences in women’s and men’s ability to engage with supply-side support interventions, contexts are recognised and promoted to market • market saturation the customer base by many governments, experience support for accessing finance, and challenges • high business competition • differences in literacy affect understanding of information to date demonstrates that there are the development of ‘one stop shops’ about market needs some challenges that micro, small and to overcome fragmentation of the • lack of information about the market (e.g. customers’ needs and preferences, sources and costs of materials) • differences in ability or opportunities to form business medium (MSM) enterprises face working supply chain. partnerships in the WASH sector. This paper does • unfavourable business location ENABLERS AND CHALLENGES • differences in access to social and business networks not assess the benefits and challenges EXPERIENCED BY HYGIENE • lack of business partnerships for recipients/users of WASH services • differences in ability to travel beyond the immediate ENTERPRISES • lack of social and business networks locality and access markets that are far away or that or their communities; it focuses on • fragmentation of supply chains (particularly for sanitation) the experiences of the enterprises In general, the hygiene product and require overnight travel. • high prices exclude certain market segments, particularly themselves. service sector has fewer different business types than the water and the poor (e.g. cost of water connections, cost of sanitation A range of challenges faced by both sanitation sector. These types range facilities in remote areas) male and female WASH entrepreneurs in from manufacturers of menstrual hygiene Financial • lack of financing options for enterprises • differences in women’s and men’s ability to access finance Vietnam, Timor-Leste and Indonesia were management (MHM) products such challenges • lack of financing options for customers or meet bank loan requirements identified through empirical research as pads, to soap manufacturers, to the • high interest rates • differences in literacy as well as administrative barriers as part of the ‘Enterprise in WASH’ from financial and other institutions. For example, only one marketers and sellers of these products. • late payments by customers initiative (Willetts et al., 2016). These The products can be sold by businesses name is permitted on forms which often excludes women. were classified into five broad categories: such as local stores, or by individual sales • inability to meet bank loan requirements • differences in women and men’s ability to cope with late (i) market; (ii) financial; (iii) human people. In many cases, women play strong • difficulties in achieving economies of scale, particularly in payments, high interest rates or cash-flow issues resources; (iv) operational; and (v) roles in hygiene-related enterprises, remote areas challenges. Taking a gendered lens particularly in relation to MHM products. • low margins associated with some WASH enterprise products and services= to these challenges and to those Hygiene products and services provided documented in the literature (see Gero et by small-scale enterprises include: • licence fees and taxes al., 2013) demonstrates how female and Human • limited technical and business skills • differences in women’s and men’s opportunities to access male entrepreneurs might be affected • Handwashing resource • difficulties in finding staff with the right skills capacity building opportunities differently by these different challenges o soap production challenges • staff turnover - particularly as regards field staff or sales • differences in women’s and men’s ability to attract and (see Table 2). It should be noted that o supplying raw materials for soap remunerate qualified staff these challenges are only exacerbated agents production • differences in women’s and men’s available time for enterprises targeting ‘bottom of the • limited capacity building opportunities o handwashing behaviour change • time constraints of the enterprise leader • influence of stereotypical gender roles and perceptions. pyramid’ (poorest and most marginalised) agents. populations. • Menstrual hygiene A systematic review of the global Operational • high fixed expenses (e.g. electricity, salary, office space • differences in women’s and men’s ability to negotiate literature also noted enablers of water o manufacturers of pads and challenges rental) needs and expenses and sanitation enterprises (Gero et menstrual hygiene products and • high cost of materials and equipment al., 2013). Several of these provide providers of these products to retail • limited access to relevant resources (e.g. water resources appropriate responses or remedies for the stores for water enterprises, building materials such as sand, challenges described above, with each o local retail stores selling menstrual gravel etc. for sanitation enterprises) likely to also have gendered dimensions, hygiene products • poor infrastructure such as unreliable power supply or as described for the challenges in Table 2. o providers of raw materials for poor road conditions Key examples of enablers are: menstrual hygiene products Government • lack of policies or unfavourable policies and regulations • differences in women’s and men’s engagement and • For water enterprises: o education and behaviour change and regulation (e.g. ‘unofficial’ and official taxes) ability or opportunities to communicate with government decentralisation of responsibility agents. challenges • lack of clarity of relevant government legislation representatives for service delivery to the local There is currently limited data regarding • lack government support • differences in literacy affecting confidence, understanding level, the ‘natural legitimacy’ of local the enablers and barriers faced by and engagement with current policies and processes entrepreneurs offering services in • presence of corruption hygiene-related enterprises. One enabler • differences in women’s and men’s capacity to negotiate their own communities, the availability • inconsistent or inappropriate approaches to subsidies or of hygiene business development is factors affecting their enterprises. and accessibility of water sources support integration of the supply chain. Analysis (groundwater and/or surface water), • inconsistent communication of available subsidies or conducted by the ODI (2015) suggests higher population densities support to enterprises or to customers. that overall, the hygiene value chain and strong business skills and is ‘better integrated [than water and TABLE 2 CHALLENGES FACED BY WATER AND SANITATION ENTERPRISES AND financial planning sanitation value chains], with linkages POSSIBLE GENDERED DIMENSIONS OF THESE CHALLENGES

16 – Enterprise in WASH Working Paper 6 Enterprise in WASH Working Paper 6 – 17 2. BARRIERS AND ENABLERS 3. FEMALE ENTREPRENEURS IN CAMBODIA

being established between fast-moving This chapter documents the experiences However, most of the female-owned consumer goods companies and national DEFINITIONS: BARRIERS, of female entrepreneurs in Cambodia. businesses are highly informal – they tend manufacturers developing accessible ENABLERS, PROGRAMS It identifies the key barriers they face to be situated close to the homes of their products on the one hand, and local AND STRATEGIES and strategies that may help them to owners and are small both in terms of the distributors and retail shops selling the Barrier: a circumstance or overcome these barriers. The barriers physical space utilised and the number products, on the other’ (Mason et al., obstacle that makes it difficult include regulatory and financial barriers, of people employed (USAID, 2016). The 2015). This may be due to the smaller- for an enterprise to exist, be and limited access to business support ADB estimated that in 2015, 84.2% of scale nature of hygiene products and the successful (provide quality services. Cultural values, women’s female-run businesses operated with one ability to incorporate them into existing service), and/or be financially access to networking opportunities, or two individuals and 68.9% of male-run retail outlets/services. sustainable. A barrier/ challenge Overall, the education and training also influence the businesses operated at this size (ADB, 84.2% of Another enabler is the large potential may be related to the enterprise hygiene value ways in which women can participate 2015). The 2011 economic census for female-run market for hygiene goods, particularly itself (skills, abilities, education) chain is better in enterprises. A range of programs Cambodia reported that 75.5% of women’s businesses MHM products. For example, in India, or to the enabling environment integrated and strategies are reported to support enterprises earned less than US$2000 operated with sanitary napkin use is very low at 10–11% (government policy, market women’s participation. These include in annual profits and 36% earned less of the total market, while in Europe and conditions, geographical [than water and aspects of the national action plans than US$750 (ADB, 2015). To put this in one or two the US it is 73–92% (Garg et al., 2011). distances etc.). sanitation value for women’s economic empowerment, context, in the garment, textile and food individuals and Similarly, research conducted in 2015 in chains] women’s business associations, business industries the monthly minimum wage 68.9% of male- Enabler: something that Ethiopia, Uganda, South Sudan, Tanzania, development programs at different was $US61 in 2011 (Cambodia Institute of run businesses intrinsically supports enterprises operated at and Zimbabwe found that approximately to exist, be successful (provide scales, and skills training through voucher Development Study, 2011). 17% of girls used disposable sanitary systems. quality service), and/or financially According to the ADB, in 2015 66.4% this size. pads, while the remaining 83% used re- sustainable. Enablers may of women’s businesses were in the usable pads, which in most cases were be related to the enterprises OVERVIEW OF FEMALE wholesale and retail trade and services pieces of old cloth, sponge or cotton ENTREPRENEURS IN THE themselves (skills, abilities, sector (see Figure 1) (ADB, 2015). They (Tamiru, 2015). CAMBODIAN ECONOMY education) or the enabling included non-specialised and food retail According to the International Labour Further research is needed to better environment (government policy, outlets, small food stalls, beverage and Organisation (ILO), comprehensive and understand the opportunities and market conditions, geographical tobacco outlets, and textiles and clothing accurate data on women’s economic There is constraints for small-scale enterprises distances etc.). Women businesses. In 2015, 16.7% of women’s participation in Cambodia is not readily currently to be part of efforts to support women own 65% of businesses were in the accommodation Program: an activity, action and/ available (ILO, 2015). However, there limited data and girls to access safe, convenient and all private and food sector (most were restaurants, or intervention put in place by are a number of key messages that can regarding affordable (and culturally acceptable) enterprises, mobile food services, beverage services, an organisation or individual be taken from data that is available on menstrual hygiene products. There may rather than accommodation providers); the enablers to increase the involvement of both formal women’s involvement in micro, small and also be opportunities for enterprises to 9.8% were in manufacturing (weaving of and barriers women in enterprises and/or and informal, in medium sized enterprises in Cambodia. produce and sell other hygiene products textiles and manufacture of clothing) and faced by improve a business’s viability Cambodia. This section discusses these messages, as elements of coordinated efforts to 4.2% were in other services (ADB, 2015). hygiene-related or success. and identifies knowledge gaps and improve hygiene overall. All other sectors accounted for less than enterprises. opportunities for further research. Strategy: a category or type 1% each (ADB, 2015). of intervention designed to The Asian Development Bank (ADB) improve women’s involvement in recently estimated that women own 65% enterprises and/or the viability of all private enterprises, both formal of their businesses. Some of and informal, in Cambodia (ADB, 2015). the strategies identified in the The Provincial Business Environment literature include (i) financing Scorecard (PBES) data from 2008 (for e.g. microcredit and savings reveals that women