Date: 26/02/2004
Source: Ministry of Trade and Industry
Title: L Hendricks: Launch of Ntinga OR Tambo Development Agency
SPEECH DELIVERED BY MANANA MOROKA ON BEHALF OF DEPUTY MINISTER OF TRADE AND INDUSTRY, MS LINDIWE HENDRICKS, AT THE OFFICIAL LAUNCH OF NTINGA OR TAMBO DEVELOPMENT AGENCY, 26 February 2004
WOMEN IN BUSINESS
The Mayor of the OR Tambo District Municipality
Dignitaries
Programme Director
Ladies and Gentlemen.
The low level of participation by women in the formal economy, as either small business owners or entrepreneurs, has for a long time been recognised as a problem in South Africa. This problem is however, a global phenomenon that cuts across developing and developed countries and is something that is being looked at by national and international women's organisations. I believe that it is an issue that can only be addressed through efforts that are specifically targeted at women entrepreneurs and cannot form part of a general programme of support to small businesses.
Greater participation by women in the economy is important for the government, as it forms part of our commitment to transform South Africa away from a racially divided society and economy. Our transformation will not be complete until both genders have equal participation and we are able to realise the full potential of all our people. It is also important to recognise the important role that women play and can play in growing the South African economy and in creating jobs.
However, there are many constraints that hamper women's ability to participate in the economy and become entrepreneurs, these include:
Firstly the regulatory environment - this includes government legislation that might have a constraining effect on women's enterprises. South Africa in the past had legislation that limited women's contractual rights and their economic participation. Women are also sometimes excluded from the ownership of property, which amongst other negative factors limits their access to collateral for loan finance. In addition to these constraining factors in the regulatory environment it has been argued that a high or complex administrative burden in starting and running a business has a greater negative impact on women owned businesses and may even push women entrepreneurs into the informal sector.
Secondly, education opportunities and education systems can constrain women enterprises as women often have less access to education opportunities and when these opportunities are directed towards particular non-business related training and careers such as education, nursing and social work. In addition education systems are sometimes guilty of perpetuating stereotypes about the role of girls and women in society and not providing training in business and technology related areas for girls.
Thirdly, there are cultural factors, societal views and societal perceptions that hold women back. In some cultures, entrepreneurship and entering the business world by a woman is perceived as negative. Cultural attitudes that discourages risk taking especially by women can be a problem as it does not allow women entrepreneurs the room to fail and start new enterprises. Cultural factors can also play a role in limiting women's access to information as well as preventing a woman owned business from getting equal access to the procurement opportunities in a large company. Certain negative cultural aspects in patriarchal societies might make women more vulnerable as victims of crime and violence.
Fourthly, the limited access by women to management training and relevant job opportunities has a negative impact on the woman entrepreneur. Often women in the workplace are concentrated in the least skilled or lowest paid jobs, which limits their access to management technical training and denies them the on-the-job management experience that would enable them to successfully run a small business. Such knowledge is difficult to teach, for example in government supported training programmes, as it is often acquired through experience in the workplace.
Fifthly, there are the family responsibilities that get placed on a woman and often result in an additional financial burden, increased responsibility to look after children and responsibility to manage the household. For example, lack of affordable childcare facilities for young children creates an additional burden for the mother who would like to start her own business.
These inhibiting factors result in a number of difficulties for women entrepreneurs, such as getting adequate finance, having inadequate skills to start and manage a business, challenges in breaking into the marketplace for their products or services, risks of crime and violence, lack of access to information, and often poor use and understanding of technology. It is therefore necessary to respond to these different constraints through appropriate support measures. Unfortunately, we have not been able to address all of these constraints with specific measures for women enterprises but are making substantial progress.
Two programmes that the Department of Trade and Industry (dti) has implemented to address the constraints faced by women entrepreneurs are the Technology for Women In Business (TWIB) programme and the establishment of the South African Women Entrepreneurs Network (SAWEN). These programmes are amongst the multiple programmes specifically supporting women entrepreneurs, which have been developed by other government departments.
SAWEN was established specifically to assist aspiring and existing women entrepreneurs in the small business sector help each other find solutions to the wide range of gender related obstacles that I have mentioned tonight. SAWEN is a network or association of businesswomen with a national office and structures in each province. The network will address these constraints in two ways, firstly by being a cohesive voice of businesswomen structures that will advocate appropriate policy changes, build capacity and facilitate access of women to business resources and information. And secondly, by being a support network that shares information about business opportunities amongst women entrepreneurs, and facilitates networking amongst women entrepreneurs.
The aim of TWIB is to encourage women owned businesses to use technology and assists them in accessing different types of technologies. Through partnerships with institutions like the CSIR, TWIB has been able to facilitate technology transfer programmes to women. TWIB also has a sub-programme, which encourages young girls to enter the fields of science and technology. This Techno-girl programme has been running Mathematics and Technology camps for girls of school going age in partnership with provincial departments of education. It has also been running advanced computer training in Tombo.
To conclude, in my presentation this evening I have discussed the reasons why we want to increase the number of women entrepreneurs as well as the many constraints that hamper the effective participation of women in business. It is for these reasons that the dti at a national level has embarked on targeted women empowerment programmes and our plan in the coming years is to have support programmes that specifically address other constraints faced by women entrepreneurs. Such programmes will, however, be more effective if they combine the resources of national, provincial and local government. I hope that in my address tonight I have provided you with a strong argument as to why the newly launched Ntinga Development Agency should start to specifically address women in business as one of its core programmes and I look forward to the involvement of Ntinga with the national departments such as the dti.
I thank you.
Issued by: Ministry of Trade and Industry
26 February 2004
Source: Ministry of Trade and Industry
Title: L Hendricks: Launch of Ntinga OR Tambo Development Agency
SPEECH DELIVERED BY MANANA MOROKA ON BEHALF OF DEPUTY MINISTER OF TRADE AND INDUSTRY, MS LINDIWE HENDRICKS, AT THE OFFICIAL LAUNCH OF NTINGA OR TAMBO DEVELOPMENT AGENCY, 26 February 2004
WOMEN IN BUSINESS
The Mayor of the OR Tambo District Municipality
Dignitaries
Programme Director
Ladies and Gentlemen.
The low level of participation by women in the formal economy, as either small business owners or entrepreneurs, has for a long time been recognised as a problem in South Africa. This problem is however, a global phenomenon that cuts across developing and developed countries and is something that is being looked at by national and international women's organisations. I believe that it is an issue that can only be addressed through efforts that are specifically targeted at women entrepreneurs and cannot form part of a general programme of support to small businesses.
Greater participation by women in the economy is important for the government, as it forms part of our commitment to transform South Africa away from a racially divided society and economy. Our transformation will not be complete until both genders have equal participation and we are able to realise the full potential of all our people. It is also important to recognise the important role that women play and can play in growing the South African economy and in creating jobs.
However, there are many constraints that hamper women's ability to participate in the economy and become entrepreneurs, these include:
Firstly the regulatory environment - this includes government legislation that might have a constraining effect on women's enterprises. South Africa in the past had legislation that limited women's contractual rights and their economic participation. Women are also sometimes excluded from the ownership of property, which amongst other negative factors limits their access to collateral for loan finance. In addition to these constraining factors in the regulatory environment it has been argued that a high or complex administrative burden in starting and running a business has a greater negative impact on women owned businesses and may even push women entrepreneurs into the informal sector.
Secondly, education opportunities and education systems can constrain women enterprises as women often have less access to education opportunities and when these opportunities are directed towards particular non-business related training and careers such as education, nursing and social work. In addition education systems are sometimes guilty of perpetuating stereotypes about the role of girls and women in society and not providing training in business and technology related areas for girls.
Thirdly, there are cultural factors, societal views and societal perceptions that hold women back. In some cultures, entrepreneurship and entering the business world by a woman is perceived as negative. Cultural attitudes that discourages risk taking especially by women can be a problem as it does not allow women entrepreneurs the room to fail and start new enterprises. Cultural factors can also play a role in limiting women's access to information as well as preventing a woman owned business from getting equal access to the procurement opportunities in a large company. Certain negative cultural aspects in patriarchal societies might make women more vulnerable as victims of crime and violence.
Fourthly, the limited access by women to management training and relevant job opportunities has a negative impact on the woman entrepreneur. Often women in the workplace are concentrated in the least skilled or lowest paid jobs, which limits their access to management technical training and denies them the on-the-job management experience that would enable them to successfully run a small business. Such knowledge is difficult to teach, for example in government supported training programmes, as it is often acquired through experience in the workplace.
Fifthly, there are the family responsibilities that get placed on a woman and often result in an additional financial burden, increased responsibility to look after children and responsibility to manage the household. For example, lack of affordable childcare facilities for young children creates an additional burden for the mother who would like to start her own business.
These inhibiting factors result in a number of difficulties for women entrepreneurs, such as getting adequate finance, having inadequate skills to start and manage a business, challenges in breaking into the marketplace for their products or services, risks of crime and violence, lack of access to information, and often poor use and understanding of technology. It is therefore necessary to respond to these different constraints through appropriate support measures. Unfortunately, we have not been able to address all of these constraints with specific measures for women enterprises but are making substantial progress.
Two programmes that the Department of Trade and Industry (dti) has implemented to address the constraints faced by women entrepreneurs are the Technology for Women In Business (TWIB) programme and the establishment of the South African Women Entrepreneurs Network (SAWEN). These programmes are amongst the multiple programmes specifically supporting women entrepreneurs, which have been developed by other government departments.
SAWEN was established specifically to assist aspiring and existing women entrepreneurs in the small business sector help each other find solutions to the wide range of gender related obstacles that I have mentioned tonight. SAWEN is a network or association of businesswomen with a national office and structures in each province. The network will address these constraints in two ways, firstly by being a cohesive voice of businesswomen structures that will advocate appropriate policy changes, build capacity and facilitate access of women to business resources and information. And secondly, by being a support network that shares information about business opportunities amongst women entrepreneurs, and facilitates networking amongst women entrepreneurs.
The aim of TWIB is to encourage women owned businesses to use technology and assists them in accessing different types of technologies. Through partnerships with institutions like the CSIR, TWIB has been able to facilitate technology transfer programmes to women. TWIB also has a sub-programme, which encourages young girls to enter the fields of science and technology. This Techno-girl programme has been running Mathematics and Technology camps for girls of school going age in partnership with provincial departments of education. It has also been running advanced computer training in Tombo.
To conclude, in my presentation this evening I have discussed the reasons why we want to increase the number of women entrepreneurs as well as the many constraints that hamper the effective participation of women in business. It is for these reasons that the dti at a national level has embarked on targeted women empowerment programmes and our plan in the coming years is to have support programmes that specifically address other constraints faced by women entrepreneurs. Such programmes will, however, be more effective if they combine the resources of national, provincial and local government. I hope that in my address tonight I have provided you with a strong argument as to why the newly launched Ntinga Development Agency should start to specifically address women in business as one of its core programmes and I look forward to the involvement of Ntinga with the national departments such as the dti.
I thank you.
Issued by: Ministry of Trade and Industry
26 February 2004
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