91511 STRIVING FOR BUSINESS SUCCESS: VOICES OF LIBERIAN WOMEN ENTREPRENEURS STRIVING FOR BUSINESS SUCCESS: VOICES OF LIBERIAN WOMEN ENTREPRENEURS Table of Contents Acronyms................................................................................................................................... IV Foreword ................................................................................................................................... V Acknowledgements......................................................................................................... VI Executive Summary ....................................................................................................... VII I. INTRODUCTION............................................................................................... 1 VOICES OF LIBERIAN WOMEN ENTREPRENEURS...................................... 3 II.  Who are Liberian Women Entrepreneurs? ............................................................................................................3 A Better Investment Climate to Foster Women’s Entrepreneurship in Liberia......................................................4 Common Obstacles Faced by Women Entrepreneurs..........................................................................................6 Girls and Young Women Entrepreneurs ..............................................................................................................14 Supportive Factors for Women’s Entrepreneurship.............................................................................................15 CONCLUSIONS: WHAT IS DIFFERENT ABOUT WOMEN III.  DOING BUSINESS IN FRAGILE AND CONFLICT-AFFECTED SITUATIONS........................................................... 17 RECOMMENDATIONS FOR THE ECONOMIC EMPOWERMENT OF IV.  WOMEN ENTREPRENEURS IN LIBERIA..................................................... 19 Business and Skills Programs ............................................................................................................................19 Access to Assets and Finance ...........................................................................................................................19 Networking and Business Information Sharing: Women Business Entrepreneurs’ Associations and Networks.....................................................................................................................................................20 Institutional and Policy Reform for Women’s Economic Empowerment...........................................................21 Appendix I.  Policy Recommendations to Support Women Entrepreneurs........................ 23 Appendix II.  Case Studies of Liberian Women Entrepreneurs.........................................25 References................................................................................................................................ 35 III Acronyms AFMLR World Bank Office Monrovia AFRSC Africa Strategic Communications AFTPM Poverty Reduction and Economic Management Front Office BNPP Bank-Netherlands Partnership Program CASA Conflict Affected States in Africa CEO Chief Executive Officer EPAG Liberia Young Women and Adolescent Girls Economic Empowerment Project FCS Fragile and Conflict-Affected Situations GBV Gender-based violence GDP Gross domestic product GoL Government of Liberia IFC International Finance Corporation IITA International Institute of Tropical Agriculture LBWA Liberian Business Women Association LIBA Liberian Business Association LISGIS Liberia Institute of Statistics & Geo Information Services Statistics LIWEN Liberia Women Entrepreneurs Network LWI Liberian Women Initiative MoA Ministry of Agriculture MoCI Ministry of Commerce and Industry MoF Ministry of Finance MLME Ministry of Lands, Mines, and Energy Mol Ministry of Labor MPEA Planning and Economic Affairs MPW Ministry of Public Works NIC National Investment Commission PRSP Poverty Reduction Strategy Paper SIDA Swedish International Development Coordination Agency SMEs Small and Medium Enterprises UN United Nations WB World Bank WBI World Bank Institute IV STRIVING FOR BUSINESS SUCCESS: Foreword Women are an important and powerful economic force. They make critical contributions as political leaders, entrepreneurs and employees. Their contributions are even more valuable in the case of countries emerging from conflict, where as a result of war, women make up the larger part of the population and where in order to earn a living and sustain and provide for their families and communities they build businesses. However, women in post-conflict economies face a number of challenges. Often their businesses stay at embryonic stages only, due to three key limitations relating to: knowledge of business vision and management; access to finance and markets; and access to role models and networks. Added to the complexity is the risk of having to start all over again due to their countries’ political instability and the limited infrastructure to make their businesses prosper and become more efficient over time. After several years of civil war, Liberia has made good progress in building an environment suitable for women entrepreneurs and political leaders. The election of H.E. Ellen Johnson Sirleaf as the first female president in Africa opened up economic opportunities for Liberian women. Additionally, a number of reforms have been initiated to enable women to further partake in Liberia’s private sector development and economic growth. The World Bank Group, including the World Bank Institute (WBI) and the International Finance Corporation (IFC) Conflict Affected States for Africa (CASA), supported by their donor partners, Sweden, Denmark, and the Bank-Netherlands Partnership Program (BNPP), has been working through different projects to further enhance economic opportunities for women. These include helping the Liberian government revise relevant policies, creating the Liberia Business Registry and working with the Ministry of Commerce and Industry, the Ministry of Gender and Development and Liberian women entrepreneurs to enhance women’s voice and visibility and increase peer-to-peer learning. The “Striving for Business Success: Voices of Liberian Women Entrepreneurs” report provides further insight on the opportunities for women entrepreneurs to fully participate in the economic growth of Liberia. The women interviewed for this report highlighted how obstacles, such as limited financial infrastructure, restricted access to markets, and most importantly, insufficient networks to support women entrepreneurs, stifle efforts to create sustainable solutions for women entrepreneurs. The report offers operational lessons and recommendations on how to address these challenges and support women’s economic participation and empowerment. We applaud the efforts of the Liberian women entrepreneurs featured in this report as well as the many others who, although not highlighted here, are bringing their fair share to the growth of the Liberian economy. We thank the Ministry of Commerce and Industry and the Ministry of Gender and Development for their continued focus on women’s empowerment as a means for overall growth in Liberia. We hope that this report will provide opportunity for stronger initiatives from government, private sector and women-business owners to change the face of women entrepreneurship in Liberia. Cheikh Oumar Seydi Robert L. Floyd Regional Director for Africa Director of Operations International Finance Corporation World Bank Institute VOICES OF LIBERIAN WOMEN ENTREPRENEURS V Acknowledgements This report was prepared under the World Bank project entitled “Lessons on Gender Inclusion in Fragile and Conflict-Affected States—Women’s Access to Rights, Resources and Voice.” It is the outcome of collaboration between the Government of Liberia (Ministry of Commerce and Industry—MoCI), the International Finance Cor- poration (IFC) and the World Bank Institute (WBI). It was prepared by Maria Elena Ruiz Aril (Consultant) under the supervision of A. Waafas Ofosu-Amaah (Task Team Leader). The task team consisted of Marième Esther Dassanou (IFC), Lwanzo Amani, Sanam Naraghi Anderlini, Dexter Merchant, and Haddas Wolde Giorgis (Consultants). The team conveys special thanks to the Minister of Commerce and his staff and the Ministry of Gender and Development, especially the Adolescent Girls’ Unit for their guidance, as well as to the UN Women Office in Liberia, especially Emily Stanger, who was instrumental in the identification of case study subjects. Most importantly, the team acknowledges the individual women entrepreneurs—especially the founding members of the Liberia Women Entrepreneurs Network (LIWEN)—for their willingness to share their stories. The team also gratefully acknowledges the following World Bank Group staff for their technical guidance and collaboration: Coleen Littlejohn (AFMLR); Frank Ajibola Ajillore (CAFW7); Kobina Egyir Daniel (CAFCA); Michael Nyumah Sahr (AFRSC); Shubha Chakrabaty (AFTPM); and Evariste Nduwayo (IFC SME Ventures Program). We thank the staff of the World Bank and IFC Country Offices in Liberia who provided valuable administrative, logistical, and production support, and we especially acknowledge the assistance of Esther Bryant, Collista Jean Harris, Yayea Kheahley, and Felton Yeayen. The report was made possible by the generous support of the Government of the Netherlands, under the World Bank–Netherlands Partnership Program (BNPP) Trust Fund, and of the Swedish International Develop- ment Coordination Agency (SIDA). VI STRIVING FOR BUSINESS SUCCESS: Executive Summary This report presents findings on the situation of women entrepreneurs in Liberia. It discusses the challenges that female entrepreneurs face as well as enabling factors that they encounter when operating their businesses in Liberia’s post-conflict environment. Through the voices and experiences of women—as in the IFC series Voices of Women Entrepreneurs that inspires it—this report sheds some light on the specificities of women doing business in fragile and conflict-affected situations (FCS), such as those in Liberia. It identifies operational lessons and proposes recommendations on how to support women entrepreneurs and contribute to their eco- nomic empowerment in the transition from post-conflict to reconstruction and development. WHO ARE LIBERIAN WOMEN ENTREPRENEURS? Liberian women are dynamic entrepreneurs. They predominate among informal businesses in small-scale retail and trade. Women in Liberia are much more likely than men to be self-employed (69 percent of women compared to 56 percent of men).1 Almost a decade after the end of the conflict, 34 percent of Liberian women manage a fairly significant share of registered small and medium enterprises (SMEs).2 However, the majority of female entrepreneurs in Liberia continue to work informally and in low-productivity sectors, mainly in small retail and trade (World Bank 2012a). Indeed, 75 percent of women, compared to 61 percent of men, worked informally in Liberia in 2010.3 Among entrepreneurs, women are more likely than men to own completely informal enterprises (60 percent of women, compared to 45 percent of men).4 Wholesale and retail trade, the second-most important sector for overall employment in Liberia after agriculture, employs as much as 35 percent of the female workforce (compared to just 15 percent of employed men).5 In 2006, the majority of women in greater Monrovia worked as vendors and in petty trade (68 percent of the urban female labor force).6 Seven years later, although more women have registered their businesses, a majority remains in the informal sector and in low-productivity sectors. LIBERIAN WOMEN ENTREPRENEURS AND THE INVESTMENT CLIMATE Despite substantial improvements in recent years, both men and women entrepreneurs encounter several obstacles to doing business in Liberia. The investment climate is gradually improving in Liberia, which is now ranked 149th (out of 185) by the Doing Business Report. This ranking is five positions higher than in the previous year. However, women-owned businesses continue to be particularly vulnerable to investment climate constraints, as they are overrepresented among small and informal businesses. Most of the women interviewed mentioned corruption, taxes, and limited access to credit and skills as major obstacles to developing their business activities. An example of how investment climate constraints hit women harder in Liberia is that of cor- ruption, particularly in the form of gender-based violence. Sexual assault from government authorities in return for official permits/transactions is a pervasive problem in certain sectors, such as cross-border trade (in Liberia but also elsewhere in Africa). Gender-based violence imposes an additional tax on women-owned businesses, increasing the cost of doing business. 1 Liberia Labor Force Survey 2010. 2 Liberia Business Registry, March 2013. 3 Liberia Labor Force Survey 2010. 4 IFC 2007. 5 Liberia Labor Force Survey 2010. 6 Liberia Comprehensive Food Security and Nutrition Survey 2006. VOICES OF LIBERIAN WOMEN ENTREPRENEURS VII COMMON OBSTACLES FACED BY WOMEN of commerce or other business associations DOING BUSINESS such as the Liberian Business Association (LIBA). Created in October 2012, the Liberian Women • Education — As a result of conflict, a high Entrepreneurs Network (LIWEN) is the first forum proportion of women lack the basic skills devoted exclusively to women entrepreneurs in to conduct business successfully and often the country. find themselves in low-productivity jobs. The prolonged years of conflict led to high rates of GIRLS AND YOUNG WOMEN ENTREPRENEURS illiteracy, particularly among women. The current generation of women entrepreneurs lacks many While many of the problems that women entre- of the basic skills needed to successfully operate preneurs face in doing business apply to young a business. Also, lack of technical skills due to women and girls as well, some of these problems the breakdown of the education system during are more specific to young women. Liberia has a the conflict has constrained women’s oppor- young population, 18 percent of which is between tunities to develop their businesses in higher- the ages of 15 and 24 (Liberia Population Census productivity areas. Gender gaps in vocational 2008). Like older women entrepreneurs, young and professional training are particularly wide, women find that a lack of start-up capital and limited and gender segregation remains high, leading business and technical skills are important barriers women into low-productivity jobs. to starting and developing a business (World Bank 2008). However, a 2008 World Bank study found that • Access to credit — Despite recent improve- young women entrepreneurs also seem to attach ments, women continue to find it problematic higher importance to other factors, such as lack of to access credit in Liberia. Supply and demand contacts. The study also showed that young women factors compound women’s difficulty in accessing found it difficult to access skill-enhancing oppor- credit in the post-conflict economic environment. tunities. According to these young women, family Lack of a credit culture and overall repayment responsibilities such as taking care of siblings and rates make it difficult for financial institutions handling household chores were clear impediments to lend to SMEs, let alone to women, who they to their ability to combine income earning with consider as higher risk. In addition, limited vision formal education, training, or even apprenticeships. and skills among entrepreneurs and issues with This is because many girls became the sole providers inadequate (or sometimes non-existent) financial for their extended families as a result of the conflict skills and lack of collateral (partly as a result of (World Bank 2008). land disputes) are some of the factors limiting women’s access to credit. The most recent data ENABLING FACTORS FOR WOMEN’S estimates that women entrepreneurs access ENTREPRENEURSHIP 6 percent of commercial bank credit out of 18 percent for all SMEs in Liberia.7 Factors identified by women themselves as sup- portive in their journey into entrepreneurship over • Women’s Networks — Liberian business the last 15 years include: asset ownership for women have limited opportunities to share capital formation (in the form of inherited land and information, contacts, and knowledge property, or personal savings); support from men- because of their low participation in busi- tors; education and training; women-to-women ness organizations. While there are dynamic support through associations; and, last but not women’s associations in Liberia, only a few focus least, women’s strength, resilience, and persever- specifically on entrepreneurship and business ance. The latter cannot be underestimated in light management. In addition, women business own- of the hurdles and setbacks that women generally ers are not always well represented in general experience when doing business in conflict-affected business networks, such as the local chambers environments. 7 Enterprise Survey. VIII STRIVING FOR BUSINESS SUCCESS: Voices of Liberian Women Entrepreneurs “My father’s determination to keep a Liberian-owned factory and to be competitive inspired me and I followed in his footsteps and took over the wood factory, a business seen as limited only to men.” Fatu Addy, Liberia Woodwork Construction Company “I know that I got a head start in business because I not only got knowledge of business from my parents but inherited much of their property. One major challenge that many business people face is access to finance. Interest rates are too high and the time accorded for repayment is too short. This is preventing many Liberian businesses from growing.” Josephine M. George-Francis, Liberia Resources Incorporated “Customs and police officers at the border are out of control and there is no law to govern them. In the era of HIV/AIDS, raping innocent women who are trying to make ends meet is a death sentence.” Kuma Dolo, Liberian Entrepreneur “My advice for women that want to go into business is that they should be resilient and never tell themselves that they cannot achieve something. It is also important not to seek short cuts but take the time to come up with a well thought-out business strategy that analyses your cost, your anticipated earnings, and competition. Lastly, I advise women to carefully read the terms of the loans before they sign on, because there is nothing worse than starting your business off with a huge amount of debt.” Ade Jones-Captan, Groovies Entertainment Center & Restaurant “Women in business need to learn how to save when their business is successful to address future investment needs. Unfortunately, the few people who are able to take loans from banks use the money to buy fancy cars, gold, or other lavish goods, instead of using the money for their business, as was their initial intention.” Maureen Shaw, Liberian Entrepreneur & Co-founder of the Liberian Business Association “Before, women were not respected. Now, since we are informed, we are having meetings with Immigration, Security Forces, Police, and Customs Officers. It makes us know our rights.” Rebecca Sumo, Liberian Entrepreneur WHAT IS DIFFERENT FOR WOMEN DOING • Weaker property rights as a result of land BUSINESS IN FRAGILE AND CONFLICT- titling complexities in the process of reclaiming AFFECTED SITUATIONS (FCS)? land rights following displacement. Obstacles specific to women conducting business • Larger domestic burdens as a result of an identified in the report—many of them enhanced by increase in the number of female-headed house- the post-conflict environment—include: holds and the larger size of households. • Widened gender gaps in education and skills • Increased vulnerability to gender-based vio- as a result of the breakdown of the education lence, particularly in the form of sexual assault, system during the conflict and the subsequent a common feature of conflict. A weak rule of brain drain. law and lack of services in the immediate post- conflict settings make violence against women still highly prevalent in FCS. VOICES OF LIBERIAN WOMEN ENTREPRENEURS IX • A less conducive investment climate, char- order to address the complex and interlinked acterized by uncertainty and risk, which makes issues relating to business and technical skills: financing unavailable and conditions more • Promote flexible business and skills train- punitive, with serious infrastructure constraints ing programs tailored to the varied skill limiting access to markets and weak regulatory levels of women entrepreneurs. frameworks that do not facilitate investment. • Scale up successful models of market- oriented skills training for women • Less access to business information. Disrupted facilitating the transition from school to social networks and depleted physical infrastruc- self-employment, such as the Liberia Young ture make it harder for business men and women Women and Adolescent Girls Economic in FCS to access essential business information Empowerment (EPAG) Project. and intelligence. 2. Access to Assets and Finance. Implement • Beyond these obstacles, another striking feature measures to increase women’s access to finance of women doing business in FCS pertains to and facilitate women entrepreneurs’ transition their “business path” and the frequent need from informal sources of credit (e.g., credit clubs to start from scratch after losses suffered in the and susus) to the formal commercial credit. conflict. Specifically: • Integrate financial literacy components in all The report also shows that, despite all the hurdles, training programs for women entrepreneurs FCS can also be a source of new opportunities for in order to build the technical skills necessary women entrepreneurs. These include: (i) potential for managing credit and, gradually, build a changes in gender roles as a result of women’s assum- credit culture among female entrepreneurs. ing new economic activities that, in the pre-conflict • Promote public sector initiatives and incen- period, were reserved exclusively for men; and (ii) the tives to encourage private sector lending to reform drive of countries emerging from conflict or women entrepreneurs and equity funds in during the reconstruction phase. These situations order to address the constraints women face create entry points for consolidating gender equality when starting up new businesses.8 gains and women’s rights in specific laws and reforms • Expand the financial infrastructure by and open up unique opportunities in favor of women establishing credit bureaus and collateral in general and women entrepreneurs in particular. registries that can increase access and reduce the cost of borrowing. These instru- RECOMMENDATIONS ments present better options for SMEs, but especially for women entrepreneurs in the The question therefore remains: what can policies absence of land and/or a mortgage as col- and programs do to ensure that women’s economic lateral options.9 roles in post-conflict economies translate into long- • Encourage financial institutions to target term gains and consolidate economic empowerment women entrepreneurs as a viable market and entrepreneurship growth during the transition and enhance their financial products offer- from reconstruction to development? The report’s ing through hands-on financial literacy and recommendations target the five main sets of obsta- business management training for women- cles that women entrepreneurs often encounter. owned SMEs. • Promote within business networks exchanges 1. Comprehensive and conflict-sensitive skills of experiences showcasing successful busi- enhancement programs for women entrepre- ness women, to encourage women to aim neurs. Programs to support women entrepre- higher, take calculated business risks, and neurs should adopt an integrated approach in expand their businesses. 8 Recommendation by the SME Finance Task Group of the Global Partnership for Financial Inclusion emerged from the G20 Summit in Seoul (November 2010), as per the report Strengthening Access to Finance for Women-owned SMEs in Developing Countries, GPFI, October 2011. 9 Ibid. 10 Ibid. X STRIVING FOR BUSINESS SUCCESS: • Accelerate land reform as a means of whereby commercial banks can design expanding women’s access to secure assets.10 specific approaches and products to encour- age the development and growth of women 3. Business Networks and Associations. Invest entrepreneurs in Liberia; and access to in building the institutional capacity of women’s markets, whereby the Liberian government business and entrepreneurs’ associations and could encourage the sourcing of goods and networks by: (i) promoting and supporting services from women-owned enterprises. women’s participation in existing business and Efforts should also be made to ensure maxi- professional associations and chambers of mum exposure for women entrepreneurs commerce (using, for example, leading female either through business or trade missions. members as spokespersons to promote the • Promote necessary reforms and ensure importance and benefits of peer-to-peer net- their implementation to continue strength- working among women business leaders and ening governance and the rule of law entrepreneurs); (ii) promoting and supporting targeting the problem of gender-based the creation of women-specific business groups violence. and associations based on trade, geographical • Address women entrepreneurs’ skills defi- area, etc., as mechanisms to pool resources cit through gender-informed education and facilitate access to assets, finance, services, reforms, particularly in the area of vocational and information; (iii) and supporting business- and professional training targeting women’s women networks nationwide. needs. • Women’s business networks’ program • Establishing institutional mechanisms to of action. Women’s business networks can support women entrepreneurs, including a play a crucial role in facilitating the growth National Program for Women Entrepre- of women entrepreneurs in Liberia in sev- neurs and a National Leader/Champion eral areas. These include peer learning and for Women SMEs.11 knowledge sharing, partnership opportuni- ties, mentoring and role modeling, as well as 5. Policy reform for women entrepreneurs’ advocacy to support women entrepreneurs. interests would require work at different levels, including: (i) Data generation — identi- 4. Institutional and policy reform for women’s fying key data gaps in Liberia to assess women entrepreneurial growth and economic entrepreneurs’ economic empowerment and empowerment. Policy makers should seize integrate the corresponding data needs in sec- the opportunity presented by the post-conflict tor and national data collection instruments; period’s “reform drive” to address the obstacles (ii) Advocacy—supporting the development that women face in the business arena through and implementation of the women’s business legislation and policy reform. This would entail: network advocacy plan(s); and (iii) Policy dia- • Continue promoting gender-aware invest- logue—promoting the participation of business ment climate reforms in the areas of assets women (through networks and associations, and access to credit and accelerate related where they exist) in government reforms pro- reforms, such as property rights. cesses and establishing ad hoc forums, such as • Establish incentives and targets in a num- a National Women’s Business Forum, for policy ber of areas, including: access to finance, dialogue. 11 Ibid. VOICES OF LIBERIAN WOMEN ENTREPRENEURS XI XII STRIVING FOR BUSINESS SUCCESS: I. INTRODUCTION This report combines quantitative and qualitative Women doing business. Despite such a crucial information to present the situation of women role, it is only in the last few years that significant entrepreneurs in Liberia and to document the chal- attention is being given to the specific needs of lenges and enabling factors that they face as women women entrepreneurs in fragile and conflict-affected entrepreneurs.12 The report strives to shed light on situations (FCS) like that of Liberia by development the specificities of women starting and operating a researchers and practitioners. This report aims to business in Liberia. An important part of the report contribute to the growing body of knowledge on this is concerned with formulating operational lessons topic. An important goal of the report, as inspired and recommendations on how the World Bank, IFC, by IFC’s Voices of Women Entrepreneurs series, is to and their partners and clients can support women present the analysis and findings from women’s own entrepreneurs and contribute to their economic experiences and perspectives. To that end, the work empowerment in countries such as Liberia that are involved a desk review of key policy documents, such emerging from conflict. as Liberia’s Poverty Reduction Strategy Paper (PRSP), the most recent World Bank poverty and labor market Why a focus on women entrepreneurs in conflict- studies, IFC’s Doing Business survey, and the analysis affected situations? Women play a critical role in of a survey conducted among 1,000 entrepreneurs.13 reconstruction efforts following the end of hostili- In addition, the report builds on seven in-depth case ties. Their economic activity is essential, as they are studies of Liberian women business leaders, comple- often the main sources of family support when male mented with the voices of other women entrepre- relatives are killed or injured in the war. Depending neurs echoed in various studies about Liberia.14 on the specific circumstances of each case, women are also frequently among the most trusted mem- This report is meant to serve as a learning and bers of a community, given their lack of participa- advocacy tool for those working in different tion in violent wartime acts (Lemmon 2012). At such capacities to promote and support women’s times, many women become self-employed entre- entrepreneurship in FCS. These include govern- preneurs out of necessity. The post-conflict phase ment partners, such as the Ministry of Gender and of the fragility-conflict-post-conflict reconstruction Development, the Ministry of Commerce and Indus- continuum presents an important opportunity to try, or business associations operating in Liberia (the capitalize on that economic participation and to Liberia Business Association, the Chamber of Com- support women entrepreneurs. Such support can merce, etc.). Development partners operating in facilitate—and more importantly, accelerate—their Liberia or in other conflict countries that support the contribution to economic recovery while transform- work of women as economic agents will also find this ing their activities into tangible economic empow- report useful for policy purposes. World Bank group erment outcomes for themselves, their families, teams working in Liberia and other FCS can also and society. refer to this learning tool and the lessons presented 12 This report is one of the outputs of the program “Fragility and Conflict, Lessons on Gender Inclusion: Improving Women’s Access to Rights, Resources and Voice” implemented by the World Bank Institute (WBI) between 2011 and 2013, and financed by the Bank-Netherlands Partnership Program (BNPP). The objective of the program has been to improve understanding of the role of gender issues in the context of conflict and fragility in order to develop gender-sensitive policy and operational approaches to peace-building and post-conflict recon- struction through the development of targeted knowledge products and learning tools. The grant has supported work in Zimbabwe, Liberia, South Sudan, and Papua New Guinea. 13 Survey conducted by IFC in 2007 with 1,032 businesses to analyze barriers to enterprise formalization. 14 Primarily the World Bank Poverty Assessment (2012) and the World Bank Girls’ Vulnerability Assessment (2008). VOICES OF LIBERIAN WOMEN ENTREPRENEURS 1 here to inform the design of future operations or the in Liberia, describes the challenges they face, and design of additional analytical work. Finally, women outlines the enabling factors they encounter when entrepreneurs’ groups, associations and networks operating their businesses. It integrates women’s can use this report as an advocacy tool in different voices and experiences into the analysis. Section III policy processes at national and regional levels to analyzes the specificities of women doing business advocate for gender-aware policy reforms in support in FCS. Section IV proposes policy recommenda- of women entrepreneurs in Liberia and beyond. tions, which are summarized in a matrix in Appendix I. Appendix II presents the complete set of seven Report’s Outline. Following this introduction, Sec- case studies of women entrepreneurs operating in tion II presents a profile of women entrepreneurs Liberia. 2 STRIVING FOR BUSINESS SUCCESS: VOICES OF LIBERIAN WOMEN II.  ENTREPRENEURS Liberia is promoting a policy environment to Figure 1. Labour force participation by sex in main encourage growth and poverty reduction. The sectors of activity country’s post-conflict reconstruction kicked off with, and is taking place under, a policy environment with a strong commitment to long-term development 50 47.0 47.6 focusing on economic management and building 40 35.0 institutional capacity to enable sustainable change. Despite the international economic crisis, GDP 30 growth rates have generated noticeable improve- 20 15.3 ment in the country’s general economic conditions 9.1 10 (except in 2008) and have helped reduce poverty 3.9 (GoL 2011). Liberia’s first full Poverty Reduction 0 Strategy (PRS) established government priorities Agriculture, Wholesale, Manufacturing for the period 2008–2011 in four main areas: peace Forestry & Fishing retail trade and security; economic revitalization; basic services % of employed % of employed and infrastructure; and governance and the rule of men over 15 women over 15 law. Gender equality was defined as a cross-cutting theme under the PRS, and women’s economic empowerment has featured prominently in the Source: Liberia Labor Force Survey 2010 strategy, particularly in the Economic Recovery Pillar, setting the pace for the country’s focus on gender issues that have continued in the current PRS. WHO ARE LIBERIAN WOMEN ENTREPRENEURS? low-productivity sectors (World Bank 2012a). Indeed, 75 percent of women, compared to 61 percent of Liberian women are dynamic entrepreneurs. men, worked informally in 2010 in Liberia.17 Among Women in Liberia are much more likely than men to entrepreneurs, women are much more likely than be self-employed (69 percent of women compared men to own completely informal enterprises (60 per- to 56 percent of men).15 They tend to operate mainly cent of women compared to 45 percent of men).18 in the agriculture sector and predominate in the area of retail trade (Figure 1). Almost a decade after the Women-owned businesses are smaller and less end of the conflict, women manage a significant mature than male-owned ones. Business women share of registered SMEs (34 percent).16 Compared are less educated and younger than their male to men, female entrepreneurs tend to own counterparts. According to an IFC survey of over informal businesses. The majority of female entre- 1,000 businesses in Liberia conducted in 2007, preneurs in Liberia continue to work informally, in business women in Liberia are younger than male 15 Liberia Labor Force Survey, 2010. 16 Liberia Business Registration Bureau, May 2013. 17 Liberia Labor Force Survey 2010. 18 IFC, 2007. VOICES OF LIBERIAN WOMEN ENTREPRENEURS 3 entrepreneurs (Figure 2a). They also have a lower into more profitable areas of service. Focus groups education level (Figure 2b) and own smaller (Figure conducted with 200 women entrepreneurs—includ- 2d) and less mature businesses (Figure 2c) than those ing LIWEN members and graduates of the 10,000 owned by male entrepreneurs. women training program—also show that, in 2013, the sectors with the highest female participation are By sector, women predominate in services, mainly catering, general merchandise, and retail (mostly in small retail and trade. Wholesale and retail trade, clothing) (Figure 3). Box 1 presents a sketch of the the second-most important sector for employment types of female entrepreneurs emerging in Liberia. in Liberia after agriculture, employs as much as 35 percent of the female workforce (compared to just 15 A BETTER INVESTMENT CLIMATE TO FOSTER percent of employed men).19 In 2006, the vast major- WOMEN’S ENTREPRENEURSHIP IN LIBERIA ity of women in greater Monrovia worked as market vendors and in petty trade (68 percent of the urban Despite recent improvements, both men and female labor force).20 The most recent data also con- women entrepreneurs face genuine obstacles to firm this trend. While women are involved in low profit engaging in business in Liberia. Liberia is currently income-generating activities in services (e.g., cater- ranked number 149 out of 185 countries in the 2013 ing, handicrafts and retail, and general merchandise), IFC Doing Business Report, a five-position increase given their low literacy levels few women venture over last year. Government reforms have led to Figure 2. Who are Liberian Women Entrepreneurs? a. Age of Business Owner by Sex b. Education of Business Owner by Sex 60 50 53 41 43 50 40 39 41 40 34 30 30 23 23 21 20 19 20 16 20 13 12 10 10 0 0 Under 35 35 to 44 45 or older Less than Primary Secondary Vocational/ primary School School University c. Age of Business by Sex of the Owner d. Size of Business by Sex of the Owner 50 60 56 43 43 40 50 45 43 44 33 29 28 40 30 23 30 20 20 11 10 10 1 0 0 Up to 2 years Between More than 5 years Up to 3 4 to 10 More than 2 and 5 years emplyees employees 10 employees % of women % of men Source: Based on a survey of 1,032 businesses titled “Survey on Barriers to Enterprise Formalization in Liberia”; IFC, 2007. 19 Liberia Labor Force Survey 2010. 20 Liberia Comprehensive Food Security and Nutrition Survey, 2006. 4 STRIVING FOR BUSINESS SUCCESS: Figure 3. Liberian Women Entrepreneurs: Sectoral currently ranks 98th out of 183, compared to 139th last Representation year. However, despite such notable improvements, entrepreneurs continue to encounter important busi- 60 ness challenges linked to poor infrastructure, the lim- 50 ited availability and inadequacy of financial products geared toward SMEs, and the short supply of skilled 40 workers. Informality remains the principal challenge 30 of the Liberian economy, with the majority of busi- 20 nesses being created within the informal economy 10 and as much as 78 percent of the labor force working 0 informally in 2010 (World Bank 2012a). Catering/Restaurants General Merchandise Retail Health Education Agribusiness Woodworking IT Tourism/Hotel Handicrafts Logistics/ Transport Waste Management Beauty Oil & Gas/Construction Women-owned businesses are more vulnerable to investment climate constraints in Liberia. While the challenging business environment of FCS affects both men and women entrepreneurs, investment constraints in Liberia affect women-owned busi- nesses more. Women are overrepresented among small and informal businesses, and therefore are usually hit harder by investment climate constraints Source: IFC Women Entrepreneurs Survey 2012. (Simavi et. al. 2010). Further, while most laws in Liberia are gender-neutral and do not discriminate against women, as reported in the Women Busi- important improvements, particularly in reducing ness and the Law report, 2010, there is a need to the length of procedures required to start a busi- harmonize statutory and customary law in order to ness or to access finance. Indeed, Liberia is currently remove discriminatory practices under the latter, ranked 35th for starting and registering a business, especially with regard to access to and control over and reforms undertaken have reduced the number land.21 These biased practices have a direct impact of days to register a business from 20 in 2011 to just on women entrepreneurs and their ability to access two in 2013. In the area of access to finance, Liberia finance to grow their businesses (Box 2). Box 1. Portraits of Liberian Women Entrepreneurs While the phrase “Liberian women entrepreneurs” might at first call to mind Monrovian “market women,” this stereotype is quickly becoming outdated as more and more women launch competitive businesses on par with those of their male counterparts. Most of these businesses started “small small,” as their founders like to say, during or after the war, and overcame many hurdles to grow into strong enterprises with many employees. Some of the women entrepreneurs featured in this report ventured into woodworking and large-area farming—sectors predominantly occupied by men. Others began trading “small small” during the war and are now traveling to China and importing containers packed with merchandise worth thousands of dollars several times a year. This is how they do it. Liberian women travel to China in groups of 10 or 12. Before embarking on the trip, they do a thorough market assessment of what customers in Liberia and the surrounding countries like. A typical itinerary might take them through Ghana, Nairobi or Ethiopia, and Bangkok; then it’s on to Guangzhou. To save on costs while abroad, they share accommodation. Once in China, they go to the market and present Chinese suppliers with their own designs, samples, and specimens, which will be used to produce the merchandise. For example, T-shirts with catchy phrases such as “chop my money,” “marry me,” or “my money is my money” are very popular back home. Usually, the merchandise is produced in a matter of days, and after that it is time to go back home, back to business. Source: Author’s elaboration based on information in the case studies. 21 http://wbl.worldbank.org/. VOICES OF LIBERIAN WOMEN ENTREPRENEURS 5 in Liberia. Several women interviewed referred to “The infrastructure in Liberia has been devastated “doing business the Liberian way” as a well-known by the recurrent wars and conflicts. We have had term for various corrupt practices, ranging from to rely on generators since the wars but most of bribes to clientelism. While some of these practices the equipment and machinery are heavy-duty and affect both men and women entrepreneurs, studies require a strong power source. Most of the money show that women are often hit harder by corruption we make goes into paying for power and fuel.” when operating a business, as they are more often Fatu Addy, considered soft targets of corruption and are asked Liberia Woodwork & Construction Company to provide “speed payments” (Simavi et. al. 2010). In a 2007 IFC survey of Liberia, more women than men (81 percent compared to 76 percent) reported corruption as a major barrier to formalization. Most Furthermore, a number of structural constraints important however, as discussed in Box 4, gender- originating from long- standing gender inequali- based violence is probably the worst form of ties were aggravated by the protracted conflict. corruption to which female entrepreneurs in Liberia These constraints stem from women’s disadvantage are subjected. It “taxes” women’s ability to do busi- in accessing education, skills, information, contacts, ness and significantly increases the cost of doing or property, and they therefore lead to non-neutral business. gender outcomes in the investment climate. Rec- ognizing these constraints, the government has COMMON OBSTACLES FACED BY WOMEN initiated some gender-aware investment climate ENTREPRENEURS reforms, the main points of which are summarized in Box 3. Beyond investment climate constraints, a number of gender-specific factors make it more difficult Corruption is an example of how investment for women to start and operate their businesses climate constraints hit business women harder in Liberia than it is for their male counterparts. Box 2. Josephine M. George-Francis Owner, Liberia Resources Incorporated “[I got into politics] because women’s voices are not being heard and I figured with my experience abroad and as a farmer and businesswoman I can make a difference.” Hon. Francis is the owner and Chief Executive Officer (CEO) of Liberia Resources Incorporated, a conglomeration of Aquarius Beverages, a water-bottling company, Liberia Brick and Tile factory, and Arjay Farms, located in Montserrado County. She is also the Chairperson for the Women Legislative Caucus. Hon. Francis recognizes that Liberia is not an easy terrain for women to navigate on many levels, including in the realm of entrepreneurship, and for this reason she opted to get involved in politics, in addition to running her business. According to Hon. Francis, Liberian women need a stronger voice in politics to be able to create a better enabling environment for themselves and have a greater influence on decisions that impact the private sector. “Liberian women need to be proactive in their advocacy to ensure equal participation in government and in the private sector.” If there were more female lawmakers, women would play a greater role in pushing for constitutional reforms, especially on issues related to land, labor/skills, access to finance, as well as increased opportunities for women entrepreneurs and their ability to access contracts. This is even more relevant for women farmers, who often work on the land but do not own it. See Appendix II for more on Hon. Francis and other women entrepreneurs. 6 STRIVING FOR BUSINESS SUCCESS: Box 3. Examples of Gender-Aware Investment Climate Reforms in Liberia Making it easier for women to trade across the border. Women are prominent actors in informal cross-border trade across Africa. The case studies in this report trace the journey of two Liberian women who started out trading in neighboring countries but are today bringing over thousands of dollars worth of goods from China to Liberia. Over the past few years, the Liberian government has adopted a series of reforms to improve cross-border trade. In 2009, the government reduced the fees required for customs clearance and port and terminal handling of goods. In 2010, the government created a one-stop shop that brought together various ministries and agencies, thus streamlining export and import processes. In 2012, the government adopted an online submission system for customs forms and has enhanced risk-based inspections. Women interviewed acknowledge that “the time it takes to clear a shipment from customs has also improved ever since the government introduced a one-stop shop at the port.” Promoting collateral flexibility for loans. In Liberia, as in many countries, women are less likely to own property or assets that could qualify for collateral. This automatically limits the ability of women-owned SMEs to access finance through commercial banks. In 2012, a new commercial code broadened the selection of assets that can be used for collateral. This is expected to have a positive impact on female borrowers. Creating and promoting the use of a credit bureau. Research has shown that women are better payers and depositors than men. By developing a credit bureau and encouraging institutions to use it, not only will it positively impact the credit culture but it can also benefit women as their higher repayment behavior will favorably add to the bankers’ decisions on approving their requests for loans. Women’s Desk at the Registration Bureau. The Liberia Business Registration Bureau opened a Women’s Desk in 2013. Staffed by one female official, the desk provides information and assistance to women entrepreneurs in the process of formalizing their businesses. Among them are lower literacy and skills levels, greater difficulty accessing finance as a result of lack “The other major thing about securing a catering of collateral (originating in weak property rights), or contract—or any tenders, for that matter—is that, limited participation in business associations and when negotiating with the people responsible for networks. awarding the contract, many expect a kickback. If you are ready to do things the ‘Liberian way,’ they Education and skills expect you to pay them upfront, in addition to pre- financing the order. Also, many officials prefer to The prolonged years of conflict have led to high award contracts to family members or friends that rates of illiteracy, particularly among women. have no qualification or experience executing such Liberia’s successive conflicts regularly interrupted the contracts.” normal course of education; those who could, fled Maureen Shaw, the country to study abroad, resulting in a serious Textile trader and catering manager brain-drain. These disruptions additionally left 52 percent of adult women (15 years and older) and 28 percent of men unable to read and write by 2010.22 The current generation of women is therefore The situation is improving, however, data show that lacking many basic skills that will enable them to younger men and women are spending more time operate businesses successfully. Illiteracy affects in school, and the literacy rate for the 15-to-24 age the ability of business women to structure their busi- group has reached almost 80 percent (73 percent of nesses properly, bid for contracts, deal with banks, literate females, compared to 86 for males in this age effectively access the legal and justice system, and group).23 understand laws and regulations that impact their 22 Liberia Labor Force Survey, 2010. 23 Ibid. VOICES OF LIBERIAN WOMEN ENTREPRENEURS 7 Box 4. Gender-based violence (GBV), an extra tax for women-owned businesses in Liberia GBV imposes a high toll on Liberian women entrepreneurs, directly impacting their ability to do business. The use of sexual violence from government authorities in return for official permits/transactions is a serious form of corruption and abuse reported by women. This is a pervasive problem in certain sectors, such as cross-border trade in Liberia, but also in other places in Africa, as reported by UN agencies (UN Women 2011). In Liberia, as in many other FCS, impunity for gender-based violence offenses as a result of a weakened rule of law has a clear impact on women’s business in the form of an extra tax—and an expensive one for that matter, as the testimonies below show: “Crossing the borders, we always look at the small money we get, but it is at the cost of our self-esteem and life. Sometimes they detain you at the border, saying the border is closed, you have to stay overnight so they force themselves on you.” –Rebecca Sumo, cross-border trader “Customs and police officers at the border are out of control and there is no law to govern them. In the era of HIV/AIDS, raping innocent women who are trying to make ends meet is a death sentence.” –Kuma Dolo, cross-border trader Source: Author’s elaboration based on information in the case studies. businesses. In addition, lack of business skills or Also, the lack of technical skills constrains women’s weak record-keeping practices are some of the opportunities to develop their businesses in higher- problems found by institutions working with female productivity areas. Gender gaps in vocational and entrepreneurs in Liberia. Up to 90 percent of finan- professional training are particularly wide in Liberia, cial applications to the Liberia Enterprise Develop- and gender segregation remains high. The 2010 ment Finance Corporation—a lending institution Labor Force Survey shows that men are twice more in Liberia with a significant female portfolio—were likely than women to have attended vocational train- incomplete, officials said. A study of Liberian entre- ing; 20 percent of men compared to just 10 percent preneurs found that “due to a general lack of formal of women had attended such training in 2010. While business skills among Liberian entrepreneurs, most noticeable counter examples exist (see Box 5), most applicants are unable to create sufficiently strong programs in Liberia continue to promote women’s business plans for banks to lend on” (Lemmon skills in traditional areas, the majority of which are 2012). not necessarily responsive to labor market demands. Data on the type of training undertaken by men and women show that men will be more likely than women Although Rebecca Sumo, an import trader with to profit from opportunities arising from reconstruc- three shops in Liberia, was not able to continue tion efforts. The majority of men have built their skills her education beyond the 10th grade, she can in construction-related trades, such as plumbing, read and write. However, the type of business masonry, carpentry, and electricity (40 percent), fol- she runs requires a lot of paperwork. “Fortunately lowed by computing (14 percent), auto-mechanics (12 I am married to a supportive husband who percent), and teaching (8 percent). As early as 2007, went to Cuttington University and works in the the World Bank Gender Needs Assessment indicated rubber trade. He helps me with e-mails, written women’s absence from the sectors that would be the correspondence for the business, as well as with drivers of growth, such as construction and rehabilita- financial record keeping.” tion, commercial agriculture, or mining (World Bank Rebecca Sumo, 2007). Almost six years later, half of all women (46 Import-export trader percent) continue to take courses and focus their activities in low-productivity sectors such as tailoring, 8 STRIVING FOR BUSINESS SUCCESS: Box 5. Eyvonne Bright-Harding, Sharks Inc. “Knowledge and skills are major roadblocks for Liberian women entrepreneurs. Their lack of business and financial management knowledge hampers their ability to run strong and profitable companies and compete with male-owned enterprises.” Eyvonne Bright-Harding, owner and CEO of Sharks Entertainment Inc., started her business during the heat of the Liberian civil unrest selling bags of water and food. “I had to find a clever way to survive, and food was the solution. Every part of the city was overtaken by the rebels and I knew they needed to eat, so if I could get them food and something to drink, I would be ok,” she says, remembering the very trying times Liberia has seen. Eyvonne’s real dream was to open an ice cream manufacturing plant. In 2000, with a small loan from LBDI, she had the opportunity to go to the US, where she purchased two homemade ice cream machines from Walmart, each costing $19.99 and taking her 45 minutes to make half a gallon of ice cream. Today, with a total of 25 employees, Sharks has three commercial machines that enable Eyvonne to make two and a half gallons in 30 minutes per machine. Also, as access to electricity is difficult in Liberia, Eyvonne saw an opportunity to offer an additional service to her clientele by selling prepaid electricity. As of June 2013, Sharks had over 13,000 clients from the prepaid electricity alone. “Knowledge has been the greatest asset for me,” says Eyvonne. “I went to school to become an accountant, but I will say this is not enough to claim to be an entrepreneur. As an ice cream manufacturer, I had to learn about everything, the different ingredients, flavors, etc. But I also had to learn about branding and marketing and how to position myself in the Liberian market, which is filled with imported ice cream brands. Of course, this is in addition to learning how to write my business plan and keep my finances in order.” Knowledge and skills are a major road block for Liberian women entrepreneurs. Their lack of business and financial management knowledge hampers their ability to run strong and profitable companies and compete with male-owned enterprises. When business training is made available, very few women attend, as they fear being absent from their activities for too long with no one to manage operations for them. It is therefore important to structure the training sessions around the women’s busy schedules, and make learning practical so that they can apply it right away in their businesses. See Appendix II for more on Eyvonne and other women entrepreneurs. pastry making, and tie and dye, with less than 7 per- the microcredit portfolio (56 percent of the portfolio cent enrolled in construction-related courses and just of the two biggest microcredit institutions in 2013);25 over 10 percent following computing courses.24 they only represent 6 percent of commercial credit in 2013, and are virtually absent from formal financing Access to credit channels.26 The IFC Survey found that, among Libe- rian business owners, more women than men resort Despite recent improvements, women continue to to savings clubs and susus (IFC 2007). “Women, experience difficulty in accessing credit in Liberia. especially the owners of completely informal firms, Lack of credit is a serious problem for Liberian entrepre- are highly likely to rely on savings clubs or susus for neurs, despite improvements in recent years (Liberia financing rather than on institutional sources of financ- ranked 98th out of 183 in the Doing Business getting ing,” the report concluded. credit category in 2012, up from 139th in 2011). The World Bank Inclusive Growth Diagnostic refers to “an • Lack of credit culture and “banking” literacy. almost complete lack of credit for SMEs and individual The Central Bank of Liberia reports over 23 per- entrepreneurs, which severely limits the possibility of cent of non-performing loans in Liberia in 2012. many low-income Liberians undertaking potentially This figure without a doubt explains the low-risk profitable economic activities” (World Bank 2012b). appetite from financial institutions to venture Overall, and while women hold a significant share of into the SME market, and even less into the 24 Ibid. 25 IFC client diagnostic data (Internal Report). 26 Ibid. VOICES OF LIBERIAN WOMEN ENTREPRENEURS 9 Box 6. Fatu Jalloh Addy, Liberia Woodwork Construction & Trading Corp. “My Father’s determination to keep a Liberian-owned factory and to be competitive inspired me and I followed in his footsteps and took over the wood factory, a business seen as limited only to men.” Fatu Jalloh Addy, Owner and Manager of Liberia Woodwork Construction & Trading Corporation, one of the few Liberian women in this male-dominated sector, learned the carpentry business from her father, who founded the company in 1988. Since she took over at the age of 22, Fatu has been able to turn the company—now with 15 employees—into a fully functioning carpentry factory, despite the successive wars and the number of times her facilities were looted and ransacked. The Liberia Woodwork Construction & Trading Corporation specializes in the manufacturing of customized home, office, and school furniture, wooden doors, plywood doors, door frames, and wooden strips, as well as aluminum windows, doors, and partitions. The corporation also provides processing services to secondary carpenters and builders. Fatu’s opportunity to study abroad, during which she obtained a degree in Business Management, as well as her work experience in Ethiopia, Burundi, and Guinea, have influenced her vision for the company, her sense of ethics, and the way she runs her business. In November 2010, she received a regional young African entrepreneurs’ award from The Network Journal USA. “Among the many challenges we face as entrepreneurs, one of the major ones is access to finance. In an unstable environment, nobody wants to invest, let alone invest in the long term. Ours is a long-term business. Financing is critical to rebuilding the Liberian economy and developing the local private sector.” It is even more critical for Liberian women entrepreneurs who, although courageous and bold, may not have the knowledge or the collateral to approach banks to ask for a loan. And when they do, the requirements imposed by financial institutions—which have been burnt by a large number of people who have not repaid their loans—are so demanding and the interest rates are so high that it does not make sense to take the loan. See Appendix II for more on Fatu and other women entrepreneurs. women’s market, which is considered “smaller” capital for household consumption, rather than and perceived as riskier by banks. Furthermore, business investment (World Bank 2008). Research the women interviewed in this report as well as on post-conflict investment climate points to the those participating in focus groups conducted importance of financial education and building among young women entrepreneurs in Liberia a strong credit culture for SMEs, and in this case in 2008 specifically referred to women’s limited women-owned SMEs, to facilitate the transition understanding of banks and how to manage from informal (credit clubs or susus) to formal credit; some admitted to using the borrowed commercial credit (Lemmon 2012). • Collateral is also difficult to mobilize. This is “Women in business need to learn how to save partly the result of gender gaps in land owner- when their business is successful in order to invest ship. For example, only 16 percent of women in its growth. Unfortunately, some of the few own land, compared to 33 percent of men.27 It people who are able to take loans from a bank is also due to entangled land disputes, which use the money to buy fancy cars, gold or other can make it difficult for women entrepreneurs if lavish goods, instead of using the money for their the preferred type of collateral for commercial business, as was their intention.” banks is land or property. Introducing the use Maureen Shaw, of moveable assets (e.g., vehicles, gold jewelry, Textile trader and catering manager furniture, inventory, etc.) would have a positive impact on women’s ability to access funding. 27 www.afdb.org 10 STRIVING FOR BUSINESS SUCCESS: Box 7. Secured Transactions and Collateral Registries: A Solution to Access to Finance for Women Entrepreneurs* Lack of access to finance is consistently cited by business owners as one of their most limiting constraints, and it disproportionately affects women. Most studies find that women are not more likely than men to be rejected for loans or be subject to higher interest rates. But women are less likely to apply for loans than men. Microfinance has made a major contribution to enhancing women’s access to credit. It is estimated that eight out of every 10 microfinance clients are women. But the rigidities of microfinance can be limiting for women. By definition, amounts lent are small, interest rates tend to be higher than commercial bank rates, and lending periods are short. Lack of access to land title can be a major impediment for both men and women seeking finance in formal systems that are frequently highly collateralized. But the problem is likely to be significantly worse for women. Reforms to a country’s secured lending system to enhance the use of movable securities can have a significant impact on access to credit across the board. For example, in 1999, Romania undertook a package of measures, including legal reform, to make it easier for a wider range of movable assets to be used as collateral. Since then, more than 200,000 notices of security interests have been registered, the number of borrowers has increased threefold, and the volume of credit has grown by 50 percent. Following similar reform in the Slovak Republic in 2002, more than 70 percent of new loans to businesses are now backed by movable assets. Additionally, in Sri Lanka women commonly hold wealth by way of gold jewelry. This is accepted by formal banks as security for loans. Finally, in Tanzania, Sero Lease and Finance, a woman’s leasing and finance company, provides loans to women to purchase equipment for their businesses, using the equipment as security through leasing agreements. Women’s problems in accessing finance are compounded by a number of factors, including lack of a credit culture, lack of confidence, and lack of valid collateral. Source: Secured Transaction Systems and Collateral Registries, IFC, World Bank, MIGA 2010. • Lack of confidence in their abilities as entre- long-term financing or inappropriate financial preneurs. Women are more likely to resort to products to meet their business needs, essential informal channels to finance their businesses for investments to scale up and expand businesses. (susu clubs) than men. The nature of their busi- All the women interviewed for this report claimed nesses (informal and small) makes them less “absence of long-term finance” as the single-most attractive to commercial banks but also shapes important obstacle to growing their businesses. women’s limited ability to “think big, long Kuma Dolo and Fatu Addy, two of the business term, and take risks,” leading them towards women interviewed for the case studies, are clear sources of finance they perceive to be easier examples of how lack of finance is a limiting factor for and safer. A higher percentage of women than men answered “because I knew I couldn’t get a loan” as the main reason for not applying for “Banks only give very short-term loans and when you loans in the 2007 and 2012 surveys. Lack of cannot repay them on time they quickly repossess confidence in their abilities as entrepreneurs is your collateral. Banks need to come up with good a common problem among small-scale female packages that can help invigorate our businesses. We entrepreneurs around the world, and a prevalent also need to feel that they are part of our growth, not feature in other post-conflict economies as well. just as bankers but as partners as well. For example, The Voices of Women Entrepreneurs Report in if a person has a good repayment history and strong Bosnia and Herzegovina (IFC 2008) found that collateral, the bank should take this into account and as many as 34 percent of women already in provide loan extensions, if needed, or work with the business were unsure as to whether they had the client to come up with appropriate payment options right skills and knowledge to start a business. that fit their type of business.” Ade Jones-Captan, For larger size, women-owned businesses, one Show business entrepreneur of the problems often referred to is the lack of VOICES OF LIBERIAN WOMEN ENTREPRENEURS 11 Box 8. Maureen Shaw Restaurant, catering service, textile shop owner Maureen is a dressmaker by profession and has a degree in French dressmaking and designer fashion. Today, she operates a guesthouse and restaurant, providing catering services to conferences and employs 20 people. She also has a registered tailoring business through which, in partnership with another female entrepreneur, she bid successfully on a US$125,000 contract to produce curtains for four government buildings. Maureen’s next business venture is to open a Convention Center on 23 acres of land in Marghibi County. For Maureen, business associations are critical to advocating for business interests. She is a founding member of the Liberia Business Association (LIBA) meeting for the past eight years, held every last Thursday of the month at 5 pm with fellow business men and women. LIBA has been instrumental in voicing the interests of businesses as part of the ongoing reform process in Liberia. The association has also been very active in providing input about the investment code to the National Investment Commission, as well as working with entrepreneurs to enhance their ability to get financing. In the past, LIBA has acted as collateral for their members to access loans. “Business Plans were a new concept then,” says Maureen. Therefore, they established a loan committee that reviewed business plans and ensured the funding received was used for its intended purposes. The loans were repaid at 100 percent and the association was able to double the amount to be on-lent to SMEs. An association such as LIBA but devoted specifically to women would help in advancing the growth of women’s businesses in Liberia. “We are stronger together, and the LIBA model offers an example of how business associations can potentially help entrepreneurs in accessing key services, such as finance.” See Appendix II for more on Maureen and other women entrepreneurs. business growth and point to their inability to absorb particularly important in FCS as the “reform mood” the cost of pre-financing bids as the main reason for of the country offers plenty of opportunities to voice losing out on opportunities for larger government entrepreneurs’ concerns and address them as new contracts. policies and legislation are being drafted. Liberia boasts both a Chamber of Commerce and a Business Women Entrepreneurs’ Networks Association (Liberian Business Association — LIBA). However, the IFC survey in 2012 found that very Women business owners in Liberia are less likely few women entrepreneurs belonged to either the to belong to business associations than men. Chamber of Commerce or LIBA, and those who were Business networks and associations are important members seldom attended meetings.28 instruments for business development as mecha- nisms to access capital, contacts, mentoring, advice, Liberian women value the opportunity to have a or market information, and the women interviewed women’s-only forum for entrepreneurs. Attempts to for this report acknowledge this benefit (see Box 8). create a businesswomen’s association in Liberia in 2005 Around the world, for many businesses, it is through failed. While women managed to register the group these networks that business information is shared as the Liberian Business Women Association (LBWA), and contracts are secured. They also serve as impor- the group is not operational. “There is no formal set- tant advocacy mechanisms to lobby for the interests ting designed specifically for women in business to of entrepreneurs as part of government reforms, meet, so women meet informally to discuss problems as recognized by Rebecca Sumo, who recounts and share experiences and advice. Sometimes we the benefits of membership in the National Cross- do it in groups. It is helpful and a chance to let off Border Traders Association (Box 9). This dimension is steam on issues like how difficult it is to compete in a 28 IFC focus group discussion with Liberian women entrepreneurs. 12 STRIVING FOR BUSINESS SUCCESS: Box 9. Rebecca Sumo Cross-border Trader “Before, women were not respected. Now, since we are informed, we are having meetings with Immigration, Security Forces, Police, and Customs Officers. It makes us know our rights.” Rebecca was raised by an aunt who was a successful business woman. From her, Rebecca learned her first business skills. At the age of 16 and in 10th grade, she quit school and began selling goods in the market full time. By 2000, she had saved enough to open her first small shop. By 2006, her business was steadily growing. But in 2006, her shop was completely destroyed in a fire. She was able to restart. Rebecca concentrated on saving so that she could trade in China, where she now travels with other women several times a year to buy merchandise. Today she operates three shops, two in Bong County, and one in Monrovia, trading goods imported from neighboring countries (Guinea and Côte d’Ivoire) or as far as China. “The information and protection against gender-based violence through the National Cross-Border Traders Association has improved and increased access for women traders.” The Association originally started as a group of rural women, and with support from the Ministry of Gender and UN Women was formalized as a nationwide association that operates in all counties. One of the benefits of the association for their members is that women have learned about their rights. They know how to report violations and make complaints when custom officers misbehave. They have also learned that crossing the borders in a group and sometimes with men also provides protection. They work closely with and can report to the Ministry of Gender. But as one member says, there is still a lot of work to be done: “I know the laws in Liberia, but not the laws in Guinea. We need more information on the laws on the other side of the border.” See Appendix II for more on Rebecca and other women entrepreneurs. man’s world, access to finance, foreign competition, Bank Institute, is one step aimed at addressing this balancing the multiple roles that a woman has to play, gap (Box 10). All the women interviewed perceive as etc.” (Fatu Addy) A recent initiative to support the crucial the existence of such a forum, where women establishment of the Liberia Women Entrepreneurs can motivate and support each other in doing busi- Network LIWEN, facilitated by IFC and the World ness more effectively. “Together we look to change Box 10. Liberia Women Entrepreneurs Network (LIWEN) LIWEN was created in October 2012 by a group of 25 Liberian business women who felt there was a need for a better environment for women entrepreneurs to maximize their potential and achieve profitable and sustainable growth. LIWEN’s mission is to develop a platform to empower women entrepreneurs to undertake business initiatives, create a conducive environment in which they can be active and productive participants of the Liberian private sector while giving them access to equal opportunities. The network provides leadership and mentorship among its members and encourages non-members to follow suit. LIWEN also provides training, networking, and exposure to local, regional, and international opportunities. “Since we’ve launched LIWEN our members have learned tremendously from one another and partnered on projects. Together they have prepared for national events, which have given them great visibility and won contracts based on information shared within the group. We are starting small but our hope is to count all the serious women entrepreneurs of Liberia as members one day.” Adelaine Lavala – President, LIWEN. Source: Adapted from LIWEN brochure. VOICES OF LIBERIAN WOMEN ENTREPRENEURS 13 the face of women’s entrepreneurship in Liberia by Box 11. “Making It” from the Perspective of a enhancing our knowledge of running a business and Young Matadi Market-Woman looking for investment opportunities in non-traditional sectors. It is time for Liberian women entrepreneurs “I was a senior high (10th grade) student when I to take the stage nationally, regionally, and globally. dropped out of school in 2001 because of pregnancy. We can only achieve this if we come together,” says My parents were in Ghana at that time and I had to Eyvonne Bright Harding, Owner and CEO of Sharks take care of myself and my daughter. I explained my (an ice cream company) and Chair of LIWEN. problem to a friend who gave me US$100 with which I started a charcoal business. I used to go out of town and buy the coal. I would sell during the day and go GIRLS AND YOUNG WOMEN ENTREPRENEURS to school at night. After high school I didn’t go to university because of money business. I then swapped While many of the problems that women entre- from the coal market to selling of finger foods (fried preneurs face apply to young women and girls as plantain, acheke [ground cassava couscous], etc.). well, some of them are specific to their age. Liberia has a young population, with 18 percent of Liberians As my business was good, I took a loan from a community yearly savings club through a recommendation by being 15 to 24 years old (Liberia Population Census a friend. The club gave me L$3000 or US$40, which 2008). Many Liberian women entrepreneurs belong I added to my business money. I was not keeping any to this age group, and many of them had to start money. I used it to add the profit to the market to make fending for themselves through micro and very small it big. And my market money was used to buy food in business activities at very early ages (Box 11). A World our house, too. This made it impossible for me to save. Bank study about barriers to entrepreneurship among In 2008, when I was 23, I took the University of Liberia entrance exam and was successful. A friend gave me young women conducted in Monrovia in 2008 found US$170, which I used to continue my business. I started that, like older female entrepreneurs, young women’s selling farina (gari). I used to go out of town and bring main impediments to starting and remaining in busi- the gari and sell by the bucket. I also used to bring other ness were lack of capital and lack of business skills. goods too. I wish to be prosperous in my small business However, unlike older women, the younger women and progress in school so that people can see me and say ‘this girl came from scratch and here is she today.’” attached a high importance to factors such as mentor- ship and confidence, and these factors have been inte- grated into the Liberia Young Women and Adolescent Source: Adapted from Liberia Poverty Note, World Bank 2012. Girls Economic Empowerment Project (EPAG) (Box 12). Box 12. Good Practices in Skills Training for Women: The Liberia Young Women and Adolescent Girls Economic Empowerment Project The Liberia Young Women and Adolescent Girls Economic Empowerment Project (EPAG) was launched in 2009 to provide 2,500 young Liberian women with livelihood and life skills training and facilitate their transition to productive work. Implemented by the Government of Liberia with financial support from the Nike Foundation and the Government of Denmark, and administered by the World Bank, the program consists of a six-month phase of classroom-based training, followed by a six-month mentoring and support phase in which the trainees are supported in their transition to self or wage employment. A mid-term impact evaluation of the project shows strong positive impacts on employment (which was boosted by 52 percent) and earnings (an increase of 115 percent for program participants) as well as various measures of self-confidence. Felemah, one of the program graduates, is now a security guard, after completing the EPAG security guard training. Her plan is to finance her way through university by working as a security guard, study criminal justice, and become the Chief of Police. Luisa, another EPAG graduate, has completed the painting course and is now a professional painter and small business woman with 14 other classmates. Her teams of painters use their mobile phones to organize business and go around to the many construction sites in Monrovia, marketing their services. Source: World Bank Group. 14 STRIVING FOR BUSINESS SUCCESS: Box 13. From Women to Women: Business Women Supporting Young Women Entrepreneurs Internships for girls and the trade-off between education and earning. Fatu Addy’s furniture company has tried to bring in young women as apprentices. However, according to her, it has been tough for both the company and the interns. From the interns’ side, the pressure from male co-workers on the factory floor and the perception by both men and women that carpentry is a male domain has discouraged some young women from applying for the job or staying the course. However, the owner explains that the main issue has been money. When the interns have families to support, they need higher-paying jobs. While the company provides a stipend, it does not commensurate to a full-time employment salary. These young girls have too many responsibilities at their age and are looking for quicker ways of making ends meet rather than going through an apprenticeship. Passing the baton from woman to woman through mentoring. Older women entrepreneurs are passing the baton and investing their time in providing advice and support by mentoring younger women entrepreneurs. In her spare time, Maureen Shaw, one of the business women interviewed, calls the girls that work for her in her various businesses so that they can come to her place and share a meal or watch a movie. “I try to encourage and advise these young girls because I want them to have a good future.” Equally, LIWEN members mentor young women looking to venture into business. The network provides tips on properly starting a business, as well as internships for the young girls willing to learn. Source: Authors’ elaboration based on information in case studies. The study also concluded that young women found worked, or serving as a companion in the first it difficult to access skill-enhancing opportunities due trips to China, or as a source of moral support to family responsibilities, because many of them had during hard times. “I did not get any training. It’s become the sole provider of extended families as a only through my aunt that I know when to buy.” result of the conflict. This made it impossible for them (Young Matadi Market woman). Mentoring and to combine income earning with formal education, mutual support was a recurrent theme for many training, or even apprenticeships (World Bank 2008). of the case study interviewees (Box 13). SUPPORTIVE FACTORS FOR WOMEN’S 3. Education. Several women interviewed for the ENTREPRENEURSHIP case studies were able to receive an education abroad during the conflict. For those who ben- Among the factors that women themselves have efited in this way, education in general, and busi- identified as supportive in their efforts to become ness management training in particular, were successful entrepreneurs and leaders are: essential tools that allowed them to respond to the hurdles ahead and successfully navigate 1. Asset ownership for capital formation. Land the business world. Those who did not have and property have been important points for the education see it as an important handicap the majority of the business ventures the women at one point or another in their business path. interviewed engaged in. “I know that I got a head “I regret that I stopped my education at grade start in business because I not only got knowledge 12 as much as I plan to continue for higher learn- of business from my parents, but inherited much ing.” —Kuma Dolo of their property.” —Maureen Shaw 2. Mentoring. Learning the trade and the ins and “During my first trip to China I was robbed of my outs of business management through mentors savings (US$ 15,000) by my own friend… The ordeal (either parents or senior colleagues), has been made me more determined and helped me find my women’s way of acquiring basic business skills. strength. The challenges helped me to be a winner The majority of women learned their business and aim higher.” skills from close relatives. Others mentioned Kuma Dolo, senior colleagues as essential support, for Trader example, in explaining how the export business VOICES OF LIBERIAN WOMEN ENTREPRENEURS 15 4. Association membership. Women getting often experience. The majority of women have together to form informal networks by joining invested in their business and lost everything others in the same trade has been essential several times over. The women have had to for women as a way of pooling resources and start from scratch on several occasions. All the knowledge, from sharing hotel rooms and con- women interviewed have seen their businesses tacts in China to buying seeds, or protecting looted or burnt at least once, and some of them each other from sexual assault when crossing have started over as many as four times. This the border. Formal participation in associations would have been impossible without a large has also translated for some women in concrete dose of motivation and a strong will. Similarly, opportunities for accessing finance (see example going back and crossing the border to do busi- in Box 10). ness after having been sexually assaulted can only be possible with strong determination 5. Women’s strength, resilience, and perse- and persistence. As one of them puts it “many verance. The role of women’s resilience and women in Liberia share the same hardships and perseverance cannot be underestimated in dreams but it is our common determination that light of all the hurdles and setbacks that they keeps us going.” 16 STRIVING FOR BUSINESS SUCCESS: CONCLUSIONS: WHAT IS DIFFERENT III.  ABOUT WOMEN DOING BUSINESS IN FRAGILE AND CONFLICT-AFFECTED SITUATIONS Policies aimed at supporting women entrepre- neurs in conflict and post- conflict settings should “Because of the instability and repeated wars, focus on eliminating obstacles specific to women. nobody wants to invest in the long term. Ours is a Some of the key gender-specific obstacles that are long-term business. So we have not been able to aggravated by the conflict and post-conflict situation expand.” include: Fatu Addy, Owner of a Furniture Factory 1. Widened gender gaps in education and skills due to the breakdown of the education system during the conflict and the subsequent brain Sexual assault in return for business transactions drain. This leads to a situation of high illiteracy by government officials is a painful example of rates, particularly for adult women, limiting this phenomenon. women’s potential to successfully operate busi- nesses and to do so in high-productivity sectors. 5. A less favorable investment climate, beset by uncertainty and risk, makes finance unavailable 2. Weaker property rights because of complexi- and conditions more punitive. Serious infrastruc- ties in the process of reclaiming land rights after ture flaws limit access to markets, and a weak the conflict. These diminished rights undermine rule of law does not facilitate investment. While women’s already insecure property rights, with this state of affairs affects men and women alike, the subsequent detriment to female entrepre- the larger number of female entrepreneurs and neurs’ starting capital and access to finance. their predominance in informal and small busi- nesses leaves them more exposed. 3. Larger domestic burdens due to an increase in the number of female-headed households 6. Less access to business information. Disrupted and the larger size of households comprising social networks and depleted physical infra- war orphans or disabled family members. This, structure make it harder for business men and aggravated by depleted infrastructure, increases women in post-conflict settings to access essen- women’s time poverty, making it even more tial business information and intelligence. Lack difficult to balance domestic and productive of networks and eroded social capital, but also responsibilities. lack of access to technology in the immediate aftermath of the conflict, make it even more dif- 4. Increased vulnerability to gender-based vio- ficult to access essential information to manage lence, particularly in the form of sexual assaults, businesses and innovate. is a common feature of conflict. A weak rule of law and lack of services immediately after the Beyond specific obstacles, another striking fea- conflict makes violence against women still ture of women doing business in FCS relates to highly prevalent in the post-conflict setting. their “business path” and the need to repeatedly VOICES OF LIBERIAN WOMEN ENTREPRENEURS 17 start all over again as businesses are destroyed abroad to get an education and work returned to in the conflict. All this calls for flexible policies and Liberia with new ideas and enriched experience and instruments that are able to adapt and provide just- “saw what other women were doing on the African in-time bridging support. In the medium term, and continent” and elsewhere. Liberia’s post-conflict given the protective and supportive role of women’s reconstruction activities have opened up opportuni- characters, investing in building young women ties for women’s increased participation in business entrepreneurs’ social and life skills would also pay and the labor force in general. Other opportunities off. These are indeed some of the measures imple- include: mented by successful programs working with women entrepreneurs in post-conflict zones. 1. potential changes in gender roles as a result of women’s taking up economic activities that were The report has also shown that, despite the above- reserved exclusively for men prior to the disrup- mentioned hurdles, conflict and post-conflict peri- tion of war; and ods might also be a source of new opportunities 2. the county’s reform drive during reconstruction, for women entrepreneurs. Despite the difficulties which has opened up many entrepreneurship experienced, the conflict exposed many Liberian opportunities and possible investment climate women to other realities. Some of those who went reforms. 18 STRIVING FOR BUSINESS SUCCESS: RECOMMENDATIONS FOR THE IV.  ECONOMIC EMPOWERMENT OF WOMEN ENTREPRENEURS IN LIBERIA The question therefore remains: what can policies BUSINESS AND SKILLS PROGRAMS and programs do to ensure that women’s enhanced economic roles in post-conflict economies translate • Promote flexible business and skills training into long-term gains? Policy makers should be programs tailored to the varied skill levels of concerned with identifying the types of facilitating women entrepreneurs. For new women entre- measures, mechanisms, and policies that need to preneurs, the curriculum should include bank- be formulated and implemented. These policies ing literacy, business plan development, smart are necessary in order to consolidate the economic growth strategies, financial recordkeeping, and empowerment gains from women’s increased eco- identification of market opportunities, as well as nomic activity and sustained contribution to social continuous coaching and business exposure. For and economic development in FCS. more established women-owned SMEs, training should focus on how to handle investment capital COMPREHENSIVE AND CONFLICT-SENSITIVE and prudent paths to expansion and growth, as PROGRAMS FOR WOMEN ENTREPRENEURS identified by studies in Liberia (Lemmon 2012). Programs to support women entrepreneurs should • Scale up successful models of market-oriented adopt an integrated approach in order to address skills training for women aimed at facilitating the complex and interlinked set of obstacles to the transition from school to self-employment. Liberian women’s entrepreneurship outlined in this An example is the Liberia Young Women and report. This would entail, at the outset, implement- Adolescent Girls Economic Empowerment ing comprehensive programs to address women’s (EPAG) Project. Furthermore, encouraging pub- critical business and technical skills, giving them a lic TVET institutions to use innovative means to business orientation, and boosting their confidence encourage women to enroll in training for non- as entrepreneurs. In the short to medium term, traditional trades and/or develop a national continuous support to entrepreneurs through invest- ments in mentorship and network building will be • Integrate a gender and conflict approach to essential to enhancing entrepreneurs’ individual and the design of programs by taking into consider- institutional capacities. Such support is also neces- ation the conflict-specific problems that women sary to help establish self-sustained mechanisms to experience and that act either as barriers to entry provide technical services, such as business advice or obstacles for participation. Issues such as and assistance or access to finance and markets violence and ensuring women’s safety, but also, through peer learning and partnerships. Overall, a women’s large number of dependents and their comprehensive, multidimensional, and women-led needs should be carefully analyzed and features model is essential to ensuring that different initia- designed to address them must be incorporated tives reinforce each other, synergies are realized, and into these programs. the overall result has a transformational effect in con- tributing to women’s economic empowerment. The ACCESS TO ASSETS AND FINANCE main elements of such a comprehensive approach are presented below. Implement measures to promote women’s transi- tion from informal (credit clubs or susus) to formal commercial credit markets. For example: VOICES OF LIBERIAN WOMEN ENTREPRENEURS 19 • Integrate financial literacy components into all associations and networks. Beyond their role as training programs for women entrepreneurs in mechanisms through which to access services and order to build technical skills to manage credit defend common interests, business associations in and, more importantly, gradually build a credit general, and women’s businesses associations and culture among female entrepreneurs. networks in particular, are in themselves important sources of women’s collective empowerment and • Promote public sector initiatives and incentives mutual support. Their role in ensuring the transition to encourage private sector lending to women from economic participation to economic empower- entrepreneurs and equity funds, to address the ment cannot be sufficiently emphasized. constraints that women face when starting new businesses.29 Some measures to strengthen women’s par- ticipation in networks and associations include: • Provide business training combined with (i) promoting and supporting women’s participa- expanded access to finance. For example, IFIs tion in already existing business and professional can expand targeted credit lines for banks that associations and Chambers of Commerce (using, are combined with training for women entrepre- for example, leading female members as spokes- neurs and the management and staff of financial persons to promote the importance and benefits institutions.30 of peer-to-peer exchanges among women business leaders and entrepreneurs); (ii) promoting and sup- • Expand and promote the use of financial infra- porting the creation of women-specific business structure, such as credit bureaus and collateral groups and associations based on geographi- registries, that can increase access and reduce cal area, etc., as a means to pool resources and the cost of borrowing.31 facilitate access to assets, finance, services, and • Motivate financial institutions to target information; and, (iii) supporting business-women women entrepreneurs through training and networks nationwide. awareness-raising campaigns to demonstrate the rationale for tapping into the female busi- Women’s business networks program of action. ness owners’ market. Women’s business networks can play a crucial role in facilitating the empowerment of women entrepre- • Promote, as part of business networks, ex- neurs in Liberia in several areas, for example: changes of experiences showcasing successful business women, to encourage women to aim • Partnerships, knowledge sharing and dissemi- higher, take calculated business risks, and ex- nation. Women’s networks can help in establish- pand their businesses. ing links and partnerships with other business networks in the region. Through networks, they • Accelerate land reform as a means of expand- can leverage and facilitate peer learning and ing women’s access to secure assets and enable experience exchanges. them to use their land as collateral for loans.32 • Mentoring and role modeling. Women’s NETWORKING AND BUSINESS INFORMATION networks and associations can contribute to SHARING: WOMEN BUSINESS ENTREPRENEURS’ building women’s confidence as entrepreneurs, ASSOCIATIONS AND NETWORKS because they can showcase and disseminate examples of successful business women and Invest in building the institutional capacity of offer mentorship opportunities to rising entre- women entrepreneurs and women’s business preneurs. Mentoring programs are essential for 29 Recommendation by the SME Finance Task Group of the Global Partnership for Financial Inclusion having emerged from the G20 Sum- mit in Seoul (November 2010), as per the report Strengthening Access to Finance for Women-owned SMEs in Developing Countries, GPFI, October 2011. 30 Ibid. 31 Ibid. 32 Ibid. 20 STRIVING FOR BUSINESS SUCCESS: young entrepreneurs in particular, for advice on • Address women entrepreneurs’ skills deficit, technical issues, but also as a source of peer particularly when the conflict has been protracted, support on other issues, such as how to deal through gender-informed education reforms, with sexual harassment and GBV in business. particularly in the area of vocational and profes- sional training. This activity will ensure that the • Advocacy. Advocate for women’s business needs current and next generations of girls and women and interests in general, and in particular in the will be able to take advantage of economic oppor- following areas: (i) lobbying the Government of tunities. Lessons from successful models, such as Liberia for a gender-aware investment climate the one piloted by the Liberia Young Women and assessment; (ii) conducting, with the support of Adolescent Girls Economic Empowerment (EPAG) development partners and IFIs, groundbreaking Project, should be carefully examined with a view research on the impact of gender-based violence to scaling up and replication. on the cost of doing business in Liberia; and (iii) lobbying the government for the establish- • Also, establish institutional mechanisms to sup- ment of a National Program for Women SMEs port women entrepreneurs. An example is the and the appointment of a National Leader/ National Program for Women as part of the Champion for women SMEs.33 overall national SME strategy. Preferably, a program such as this would be led by the Min- INSTITUTIONAL AND POLICY REFORM FOR istry of Commerce, in partnership with relevant WOMEN’S ECONOMIC EMPOWERMENT agencies. Such a champion could coordinate with different stakeholders and ensure that the Policy makers should seize the opportunity offered agenda remains a priority. It could also chair the by the post-conflict “reform drive” to address gender review and recommendations of SME obstacles through legislation and policy reform, programs to ensure commitment and account- especially to: ability to the agenda.35 • Continue to promote gender-aware invest- Policy reform for women entrepreneurs’ interests ment climate reforms in access to credit and would require work at different levels, including: accelerate other related reforms, such as prop- erty rights. • Data generation. Identifying key data gaps in Liberia to assess women entrepreneurs’ eco- • Establish incentives and targets in a number nomic empowerment and integrate the corre- of areas to address women’s obstacles to oper- sponding data needs in sector and national data ating their businesses. For example, incentives collection instruments; and specific goals for increased procurement by government of goods and services from women- • Advocacy. Creating policies to reduce the owned enterprises (specifically women-owned harassment of women entrepreneurs, especially SMEs);34 or incentives for financial institutions in cross-border areas, supporting the develop- interested in working with women-owned SMEs, ment and implementation of women’s business either through a specific approach or by creating network advocacy plan(s); products and services geared toward increasing the financial literacy of women entrepreneurs. • Policy dialogue. Promoting the participation of business women’s (networks and associations, • Promote necessary reforms to continue where they exist) in government reforms pro- strengthening governance and the rule of law cesses and establishing ad hoc forums for policy as part of a conflict, gender, and entrepreneurs dialogue, such as a National Women Business approach, targeting the problems of gender- Forum. based violence. 33 Ibid. 34 bid. 35 Ibid. VOICES OF LIBERIAN WOMEN ENTREPRENEURS 21 22 STRIVING FOR BUSINESS SUCCESS: Appendix I.  Policy Recommendations to Support Women Entrepreneurs Area and Goal Action Institution Responsible Skills • Design and implement integrated and conflict- • Women’s business networks, Liberia Address women sensitive programs in support of women Business Association. entrepreneurs’ business entrepreneurs. • Government of Liberia. and technical skills and • Scale up successful models for skills building for • Private companies confidence deficit women (e.g., EPAG). • Establish incentives and public-private partnerships to provide training and apprenticeship opportunities in emerging sectors (e.g., mining, carpentry, construction-related professions, etc.). Assets and credit • Provide comprehensive programs that include • Women’s business networks, LIBA, Increase women’s training combined with expanded access other training services providers. access to finance and to finance and financial literacy for women • GoL and financial institutions. facilitate women- entrepreneurs. • GoL and financial institutions. owned enterprises’ • Establish incentives to encourage private sector • GoL, financial institutions, LIBA, and transition from informal lending to women entrepreneurs and equity funds. women’s networks. to formal credit • Establish credit bureaus and collateral registries. • Business-women networks. • Encourage financial institutions to target women • Women’s business networks. entrepreneurs through training and awareness- raising campaigns. • Promote exchanges of experiences to build women’s confidence as entrepreneurs. • Accelerate implementation of reforms on land and assets for collateral. Networks • Advocacy – promote research in the areas of • Business-women’s networks in Promote women’s gender-aware investment climate reform; impact collaboration with MoGD, MoCI, participation in of GBV in the investment climate; promote supported by IFIs and development business networks, creation of National Women SME Champion. partners. both mixed (men and • Mentorship and role modeling for young women. women) and women- • Partnerships – promote alliances and exchanges of focused networks and experiences with other business women networks. associations • Knowledge management – support peer learning and document and disseminate information on lessons learned by women entrepreneurs. Young women • Role modeling, mentoring programs, and business • Business-women’s networks and entrepreneurs networks for young women entrepreneurs. associations. Address the specific • Skills training programs/apprenticeships adapted • Private companies in partnership needs of young women to young women’s needs, including government with GoL. entrepreneurs incentives to complement apprenticeships. • Training providers, including • Mainstream life skills training into business business women associations and skills training programs for young women networks and LIBA. entrepreneurs. (continued on next page) VOICES OF LIBERIAN WOMEN ENTREPRENEURS 23 Policy Recommendations to Support Women Entrepreneurs (continued) Area and Goal Action Institution Responsible Institutional and Policy Policy • National Investment Commission Reform • Continue gender-aware investment climate (NIC). Ensure that women’s reforms. • Ministry of Finance. economic participation • Accelerate implementation of land reform. • Ministry of Commerce. in post-conflict • Accelerate Vocational Training reform modeled on • Ministry of Agriculture. reconstruction leads successful initiatives (e.g., EPAG project). • LISGIS and line ministries. to women’s economic • Conduct research on the economic impact of GBV • GoL. empowerment on Liberian business, and undertake reforms to • GoL in partnership with Business- outcomes address GBV’s impact on women entrepreneurs in women’s Networks, LIBA, etc. all sectors. • Establish targeted incentives to address women’s obstacles to operating their business in the areas of skills and finance. Institutional • Integrate key data needs on women entrepreneurs in national data collection instruments. • Establish National Program for Women in SMEs. • Establish National Leader for Women SME. • Support women’s business networks in the design and implementation of advocacy program for women entrepreneurs. • Promote the participation of business women’s (networks and associations when existing) in government reforms processes and establish a Women Business Forum for policy dialogue with government. 24 STRIVING FOR BUSINESS SUCCESS: Appendix II.  Case Studies of Liberian Women Entrepreneurs FATU JALLOH ADDY: DOING BUSINESS IN A MALE-DOMINATED INDUSTRY Fatu Jalloh Addy Current business: Liberia Woodwork Construction & Trading Corporation Education: University graduate Origin of starting capital: Inherited family business No. of employees: 15 Experience abroad: Studied in Europe and worked in several countries in Africa during Liberia’s conflict Other relevant facts: Received the regional young African entrepreneurs’ award from The Network Journal USA in 2010 “My Father’s determination to keep a Liberian-owned factory and to be competitive inspired me and I followed in his footsteps and took over the wood factory, a business seen as limited only to men.” Fatu, Owner and Manager of Liberia Woodwork Challenges of Women Doing Business in Liberia Construction & Trading Corporation, one of the few Liberian women in this male-dominated sector, Doing business in a war-torn country: During the learned the carpentry business from her father, who four successive wars in 1990, 1996, 1997, and 2003, founded the company in 1988. Since she took over Fatu’s factory was repeatedly looted and destroyed, the company at the age of 22, Fatu has been able to forcing her and her father to rebuild everything from turn the company—now with 15 employees—into a scratch after each incident. This meant using all her fully functioning carpentry factory despite the wars savings to kick start the business, making it more dif- and the number of times her facilities were looted ficult to expand and tackle bigger orders. “It’s like and ransacked. The Liberia Woodwork Construction never moving above the start-up phase. Today, we & Trading Corporation specializes in the manufactur- could have increased our supply to the local market, ing of customized home, office, and school furni- and catered to regional and perhaps global clients, ture, wooden doors, plywood doors, door frames, but starting from the beginning four times over has and wooden strips, as well as aluminum windows, seriously hampered our ability to compete.” doors, and partitions. The corporation also provides processing services to secondary carpenters and Access to finance: “In an unstable environment, builders. Fatu’s opportunity to study in France and nobody wants to invest, let alone invest in the long Switzerland, where she obtained a degree in Busi- term. Ours is a long-term business.” Financing is ness Management, as well as her work experience in critical to rebuilding the Liberian Economy and devel- Ethiopia, Burundi, and Guinea have influenced her oping the local private sector. It is even more critical vision for the company, her ethics, and the way she for Liberian women entrepreneurs who, though coura- runs her business. In November 2010 she received geous and bold, may not have the knowledge or the a regional young African entrepreneurs’ award in collateral to approach banks for a loan. When they Ghana from The Network Journal USA. Even with do, the requirements imposed by financial institu- these degrees and a good deal of hands-on experi- tions—which have been burnt by a high rate of failure ence, running a business in Liberia comes with its to repay loans—are so onerous and the interest rates own set of challenges. so high that it does not make sense to take the loan. VOICES OF LIBERIAN WOMEN ENTREPRENEURS 25 Attitude and Skilled labor: Some customers and Today, businesses rely on generators to run their potential employees are shocked and uncomfortable equipment. This is highly inefficient and costly for when they find out for the first time that the manager the carpentry business, which operates heavy-duty is a woman, Fatu says. The attitude is that woodwork machinery and requires strong power sources. As and carpentry are not women’s work. “They think Fatu puts it, “most of the money we make goes into I do not know what I am doing, number one because paying for power and fuel.” I am not a carpenter and number two because I am a female.” She tries to win people over by telling them, Women’s business networks: While she and other “give me the opportunity to prove you wrong.” The women friends are all members of the Liberia knowledge that she has acquired from her father and Chamber of Commerce and the Liberia Business her attention to detail—a critical trait in the carpen- Association (LIBA), she points out that there is no try sector—has won her employees over. However, formal setting designed specifically for women in finding qualified labor is a serious problem that has business where they can meet to discuss problems, a heavy impact on the factory’s ability to compete share experiences, and advise each other. “It is and deliver. “During the wars, most of the vocational helpful to have a chance to let off steam on issues training centers were destroyed and the people who like how difficult it is to compete in a man’s world, have the required vocational skills are too old today access to finance, foreign competition, balancing and phasing out. In addition, the younger generation the multiple roles that a woman has to play, etc.” wants to make money right away, as the responsibili- Fatu is LIWEN’s Vice President. In this role, she has ties bestowed upon them are too great; they are not had the opportunity to connect with other women patient enough to learn.” in business. She looks forward to using this platform to expose Liberian women entrepreneurs to women Infrastructure: The infrastructure in Liberia has business owners in other countries, as she believes been devastated by the recurrent wars and conflicts. women the world over share similar problems. JOSEPHINE M. GEORGE-FRANCIS: FARMER, BUSINESS WOMAN AND PARLIAMENTARIAN Josephine M. George-Francis Current business: Liberia Resources Incorporated Education: University Degree in Business Administration Origin of starting capital: Personal savings and 400 acres of inherited land No of employees: 160 Experience abroad: Studied and worked in the United States Other relevant facts: She combines her activity as a business woman with her position as elected representative in Parliament “(I got into politics) because women’s voices are not being heard and I figured with my experience abroad and as a farmer and businesswoman I can make a difference.” Hon. Francis, an entrepreneur, is the owner and after having fled the country when the war broke Chief Executive Officer (CEO) of Liberia Resources out in 1982. With 400 acres of land inherited from Incorporated, a conglomeration of Aquarius Bever- her family, she decided to venture into farming. ages (a water bottling company), Liberia Brick and Since then, she has grown her company to employ Tile factory, and Arjay Farms, located in Kingsville over 160 workers and provides training to her team, Township, Montserrado County. She is also the from management to operational workers. Hon. Chairperson for the Women Legislative Caucus Francis recognizes that Liberia is not an easy terrain of Liberia and has encouraged Liberian Women for women to navigate on many levels, including to be proactive in their advocacy to ensure equal entrepreneurship, and because of this she opted to participation in government. Hon. Francis started get involved in politics, in addition to running her her business in 1999 when she returned to Liberia business. 26 STRIVING FOR BUSINESS SUCCESS: Challenges of Women Doing Business in Liberia Education, skills training, and labor costs: The education system in Liberia needs to be improved Women’s voice in business and in politics: “I got and training opportunities expanded. “Women into politics because women’s voices are not being entrepreneurs are not very savvy when it comes to heard and I figured with my experience abroad and properly structuring a business, marketing it, and as a farmer and businesswoman I can make a differ- providing the appropriate customer service to their ence. Liberian Women need to be proactive in their clients. They also don’t always understand the need advocacy to ensure equal participation in govern- to invest in training to enhance their knowledge ment and in the private sector.” If there were more and further grow their company. Despite the high female lawmakers, women would have a greater role cost, I have invested in training for me and my staff. in improving constitutional reforms, especially on To further our competitive advantage, we have fol- issues of land, labor/skills, access to finance, as well lowed training on rice farming at Songhai in Benin, as increased opportunities for women entrepreneurs training in agriculture at the International Institute of and their ability to access contracts. This is even Tropical Agriculture (IITA) in Nigeria, or on rice cul- more relevant for women farmers who often work on tivation in Egypt. We are implementing everything the land but do not own it. that we’ve acquired in the company today, which makes us leaders in our industries.” Having said Land: Josephine admits that she got a head start in that, it is difficult to find good labor and the cost is her business because she had land. But she acknowl- very high, says Josephine. “Young people do not edges that Liberia has many problems with land want to do farming, so labor is very hard to come by; tenure, which create greater difficulty for women mining is the main attraction for young people, not who will probably not have the necessary docu- working on farms. And even if you find them, they ments to prove ownership and are most likely to face want $10 per day.” bribes. It is also a great impediment to accessing finance. However, things are slowly changing and Infrastructure, communications and technology: local women are starting to own land. “I encourage The poor state of infrastructure hampers business women in buying land. I tell them that they don’t development, she claims. “No roads, no market,” need 25 acres—all you need is a small piece of land. she says. She also points to power cuts and short- I also encourage them to go into farming, as they will ages, limited water supply, and poor roads. She always reap from the soil.” recognizes that cell phones are easing the prob- lems of communication, but Internet connectivity is Access to finance: Financing remains one of the not ideal and only available in strategic areas, not major barriers for women when starting and operating everywhere. a business. “The majority of women are in the infor- mal sector; they do not have enough collateral, and Women’s business networks: In 2005, attempts usually have not kept books that banks can look at to form a businesswomen’s association in Liberia to determine the strength of their business.” The few failed. Women managed to register the group as women who are in the formal sector and can access the Liberian Business Women Association (LBWA), loans complain about the high interest rates and, but the group is inactive. “A strong and broad most importantly, the very short repayment period. coalition of Liberian businesswomen is needed,” Furthermore, “banks will normally not give loans for she says. agriculture, and definitely not for the long term.” VOICES OF LIBERIAN WOMEN ENTREPRENEURS 27 KUMA DOLO: FROM LIBERIA TO CHINA AND BACK Kuma Dolo Current business: Import goods from China, real state Education: Primary school (12th grade) Origin of starting capital: Personal (through susu club) and family savings Experience abroad: As a trader and cross-border trader in Guinea, Ghana, Côte d’Ivoire and Benin during the wars, and in China recently “The ordeal in China made me more determined and pushed me to find my strength. The challenges helped me to be a winner and aim higher.” Kuma learned her business from her mother, who was China made me more determined and pushed me a border trader herself. Since she re-established her to find my strength. The challenges helped me to be business in 2004 after fleeing several times to border- a winner and aim higher.” ing countries because of the war, she has travelled to China twice a year to import containers of clothing Discrimination against women: She feels that busi- worth US$20,000 to US$30,000 per consignment. ness women are usually discriminated against and Kuma and her husband also own property and have undervalued even by institutions. Kuma complained a few buildings in Monrovia. The Dolos are planning of the treatment received by airlines while traveling to take a US$50,000 loan from Ecobank to construct with her consignment from China. She also men- an apartment with a petrol station in a prime area of tioned customs officers’ attitude towards women Monrovia. Looking back, Kuma reflects on the ups when they clear their consignments. According to and downs of her long journey. “I have money and her, the banks also treat women differently than men, property and I am happy. My success is God’s bless- not paying equal attention to the services they pro- ing as I always help others. I regret that I stopped vide them or giving them the appropriate attention my education at grade 12 but I plan to continue for when it comes to loan processing. higher learning.” Kuma is now a business woman with secured investments and property; but there are Gender-based violence: However, her worst com- many challenges for women in the cross-border trad- plaint focuses on the violence and harassment that ing business. In the future, she would like to pursue women undergo while trying to cross the border to her education and get some training in business man- trade. “Most cross-border traders are women and agement, bookkeeping, how to expand her import it is a curse,” Kuma said. According to her, govern- business, and how to use a computer. ments are aware of the harassments and abuse, but little is being done. “Customs and police officers Challenges that Kuma has encountered as a at the border are out of control and there is no businesswoman law to govern them. In the era of HIV/AIDS, rap- ing innocent women who are trying to make ends Finding the right business partner: In 2008 after meet is a death sentence.” The abuse, violence, re-starting her business, which was destroyed by and rape faced at the borders are depressing,” the war in 2003, Kuma used US$6,000 in savings she said. William, her husband agreed with her. to open a new shop. That was when a friend sug- According to him, “The sexual harassment at the gested trading in China. She travelled to China borders faced by women in Africa is just intoler- with US$20,000 that had been borrowed from her able and unacceptable by any means. It has to be family to import goods. There, she was cheated and stopped and governments have a responsibility to robbed of US$15,000 by her friend. While the initial ensure the dignity and wellbeing of their citizens. China trips are bad memories that Kuma does not Women deserve respect as mothers and produc- want to remember, she also says that “The ordeal in tive citizens.” 28 STRIVING FOR BUSINESS SUCCESS: MAUREEN SHAW: DOING BUSINESS IN TIMES OF CONFLICT Maureen Shaw Current business: Restaurant, catering service, textile shop Learned her business: From her mother Origin of starting capital: Inherited property Experience abroad: US and Ghana during the war and China three times on business trips Other relevant facts: Founder of the Liberian Women Peace Movement (Liberian Women Initiative — LWI) “I know that I got a head start in business because I not only got knowledge of business from my parents, but inherited much of their property. One major challenge that many business people face is access to finance. Interest rates are too high and the time accorded for repayment is too short. This is preventing many Liberian businesses from growing.” Maureen is a dressmaker by profession and has making wedding dresses and wedding veils. I made a degree in French dressmaking and designer five different sizes of wedding dresses, which I put in fashion. She received all her training in business huge plastic bags that I made myself.” from her mother and father, both of whom were successfully in business. When she finished school, Her business became profitable again, enabling her Maureen opened a small shop in her parents’ street- to support herself until 1997 when the war escalated front property that exclusively sold her designs, and her shop was completely looted and destroyed mostly for weddings. Maureen recalls, “I had lots of again. Maureen decided to stay in business but contracts! I would do entire wedding parties. When switched to food services. She put out a few tables I became a refugee it was hard to get a job, but I and chairs at her home and started cooking for peo- was able to continue to support my daughter and ple. In 2003, the war escalated again and this time myself through my trade, but on a much smaller she fled to Ghana. She returned and started renting scale.” Today, she operates a guesthouse and res- apartments that she had inherited from her mother taurant, providing catering services to conferences, to the peacekeepers. She used all of her savings to and employs 20 people. She also has a registered furnish and fully equip one of the apartments. She tailoring business, through which, in partnership used the money she made off the first apartment with another female entrepreneur, she bid success- rental to fund the furnishing of a second apartment, fully on a $125,000 contract to produce curtains for and repeated this system until all the apartments four government buildings. Maureen’s next busi- were fully equipped. “Just like other businesses, it ness venture is to open a Convention Centre on feels like we are always at a start-up level. Peace is 23 acres of land in Marghibi County. But it was not critical for businesses to grow and compete. Now always easy. that Liberia is getting back on track, we must think outside of the box to increase our chances as women The challenges of doing business in Liberia business owners. The market has become much more competitive and we have lost so much time. The chal- Peace is critical to business growth: Maureen lenge for Liberian women entrepreneurs is to increase and her daughter fled to the United States during their business knowledge and skills to become more the war; when she returned to Liberia in 1992, she competitive; learn from other women in the region realized that people could no longer afford to buy and elsewhere in order to develop ourselves.” wedding dresses. Maureen decided to reopen her shop but instead of selling dresses she would rent Access to finance and starting capital: “I know that them out. “I went to the waterfront where they sell I got a head start in business because I not only got second-hand fabrics and bought an entire bale of knowledge of business from my parents, but inher- lace and white linens, which I sorted and scrubbed. ited much of their property. This has allowed me I then selected the pieces that could be used for to approach banks for loans.” Unfortunately most VOICES OF LIBERIAN WOMEN ENTREPRENEURS 29 women businesses do not have the same privilege Corruption: “Many people are not patient and and struggle to get the necessary funding to scale want to be successful overnight, making them their businesses. resort to bribes and short cuts; these methods often bite them in the end.”She also mentions the Lack of business skills: “Women in business need to absence of a women’s business association as learn how to save when they are successful in order another handicap. “I am personally committed to to reinvest in their businesses. Unfortunately, some the establishment of a women’s business associa- of the few people who are able to take loans from a tion, which could be established within LIBA or run Bank use the money to buy fancy cars, gold, or other independently.” lavish goods, instead of using the money for their business, as was their intention.” ADE JONES: RESILIENCE AND PERSEVERANCE, THE KEYS TO SUCCESS Ade Jones-Captan Current business: Owner of Groovies Entertainment Center and Farmer Learned her business: From her mother Education: University degree Origin of starting capital: Personal and family savings Experience abroad: Studied and worked in the US Other relevant features: She combines her activity as businesswoman with singing jazz professionally “My advice for women that want to go into business is that they should be resilient and never tell themselves that they cannot achieve something. It is also important not to seek short cuts but take the time to come up with a well thought-out business strategy that analyses your cost, your anticipated earnings, and competition. Lastly, I advise women to carefully read the terms of the loans before they sign, because there is nothing worse than starting your business off with a huge amount of debt.” Ade is a jazz singer and owner of the Monrovia- back in the United States. Today, with 26 employ- based Groovies Entertainment Center. She learned ees, Ade owns Groovies Entertainment Center. The to do business from her mother. Ade’s mother had center, with its restaurant, is one of the most popular always been a business woman. She owned and ran places in Monrovia. Ade is also currently investing in the Black Bird, an eating and drinking establishment growing rubber on a 167-acre farm, which she runs located in Monrovia. “People could come to the with her husband. They expect the rubber to mature Black Bird to sit down for a meal or drinks. I learned and be ready for export in two years. the basics of operating my business from watching her interact with her employees and customers.” The challenges of doing business in Liberia Ade completed her primary and secondary educa- tion in Liberia. Access to finance: “Banks only give very short- term loans and when you cannot repay them on In the 1980s, she moved to the United States, where time they quickly repossess your collateral. Banks she graduated from the Minneapolis Technical Insti- need to come up with good packages that can help tute and later trained as a legal assistant. She secured invigorate our businesses and we need to be able a full-time job as a legal assistant in Washington, DC to partner with the banks. For example, if a person and in her spare time she performed at a Liberian has a good repayment history and strong collateral, restaurant in the Washington area. When she was the bank should take this into account and provide 28 she quit her job and started her own business loan extensions, if needed, or work with the client in catering services and trade, traveling to Africa to come up with appropriate payment options that to contract tailors to sew her designs and sell them fit their type of business.” Because of lack of proper 30 STRIVING FOR BUSINESS SUCCESS: finance, access to large contracts is a problem. Tax Burden: “The tax system in Liberia makes things “Big government contracts are expected to be pre- very hard for businesses. One of my friends owns a financed; a problem because small businesses like chain of restaurants in Monrovia; she had to close mine cannot afford putting out large sums of money down one of her restaurants because of taxes.” up front.” High cost of Internet: The business used to be called Corruption: “The other major thing about securing a Groovies Restaurant and Cyber Café, but she could no catering contract or any tenders for that matter is that, longer afford the costs of providing wireless Internet. when negotiating with the people responsible for awarding the contract, many expect a kickback. If you Business Associations: Ade used to be a member are ready to do things the ‘Liberian way,’ they expect of the Liberia Business Association (LIBA) but she felt you to pay them upfront, in addition to pre-financing that the organization was not making much progress the order. Many officials also prefer to award contracts in achieving its objectives. She would like to have to family members or friends that have no qualifica- a functional women’s business association in Liberia tions or experience executing such contracts.” where women can share experiences and contacts. REBECCA SUMO: WOMEN CROSSING THE BORDER TO DO BUSINESS Rebecca Sumo Current business: Import goods from China (owns three shops) Learned her business: From her aunt and fellow women border traders Education: 10th grade Origin of starting capital: Personal (through susu club) and family savings Experience abroad: In West Africa as a cross-border trader and in China as an importer “Before, women were not respected. Now, since we are informed, we are having meetings with Immigration, Security Forces, Police, and Customs Officers. It makes us know our rights.” Rebecca was raised by an aunt who was a suc- now the president of the National Women Cross- cessful business woman. From this aunt, Rebecca Border Traders of Liberia. learned her first business skills. At the age of 16 and in 10th grade, she quit school and began sell- Challenges for women in cross-border trade ing goods in the market full time. By 2000, she had saved enough to open her first small shop. By Investment climate constraints: High taxes and 2006, Rebecca’s business was steadily growing. But customs fees, a volatile exchange rate, or corruption in 2006, her shop was completely destroyed in a seriously hamper the ability of cross-border women fire. She was able to restart. Rebecca concentrated traders to bring in more goods. Rebecca acknowl- on saving so that she could trade in China, where edges however that some things are changing. “The she travels with other women several times a year one-stop shop has helped us to some extent with to buy merchandise. Nowadays, she operates three clearing our goods from customs. It used to take shops, two in Bong County and one in Monrovia, more than five days and even up to ten days or more, where she trades goods imported from neighbor- and now takes two to three days.” She still uses a ing countries (Guinea and Côte d’Ivoire) or as far broker, usually a man, to perform the customs clear- as China. Initially, the business took her to Guinea, ance for her goods. She says this is because men are Côte d’Ivoire, Ghana, and Nigeria, where she and seen as capable by the customs officers. other traders would import and export goods that sell well on either side of the borders. She observed Gender-based violence: Women traders are some- other women who participated in this trade. She is times subjected to intimidation and harassment VOICES OF LIBERIAN WOMEN ENTREPRENEURS 31 she said. “Crossing the borders, we always look at rights.” But she adds, “I know the laws in Liberia, the small money we get, but it is at the cost of our but not the laws in Guinea. We need more informa- self-esteem and life. Sometimes they detain you at tion about the laws on the other side of the border the border, saying the border is closed, you have to and more collaboration between Liberia and the stay overnight so they force themselves on you.” other countries.” With support from the Ministry of Gender and UN Women, a nationwide association that operates Instability and lack of security in the region: The in all counties was formed to help women deal women traders travel together in groups for safety with these issues. In Bong County, 300 women and security. Most of the trading in neighboring registered. Rebecca says that one of the benefits countries happens by land. When traveling to of membership in this association is that women Guinea, they take the precaution of transporting all have been educated about their rights. They know their goods in a single truck. Sometimes they make how to report violations and make complaints their way to Togo via Burkina Faso. But instability when custom officers misbehave. They have also in the region is making land travel across different learned that crossing the borders in a group and borders difficult. sometimes with men also provides protection. They work closely with, and can report to, the Ministry She acknowledged the difficulties of balancing of Gender. Rebecca says, “Before, women were not work and family, particularly when one has small respected. So now, since we are informed, we are kids. Her sisters help with the children and house- having meetings with Immigration, Security Forces, hold duties while she is away on the long purchasing Police, and Customs Officers. It makes us know our trips to China, which can last up to four weeks. EYVONNE BRIGHT–HARDING: KNOWLEDGE IS OUR GREATEST ASSET Eyvonne Bright-Harding Current business: Sharks Inc. Education: University Degree in Accounting Origin of starting capital: Savings and small loan from local bank No. of employees: 25 Experience abroad: Studied and worked in the United States Other relevant facts: She combines her ice cream manufacturing business with selling electricity “Knowledge and skills are a major roadblock for Liberian women entrepreneurs. Their lack of business and financial management knowledge hampers their ability to run strong and profitable companies and compete with male-owned enterprises.” “As a 100 percent female Liberian-owned enterprise, rebel camps. “I had to find a clever way to survive, we are proud of our contribution to the growth and and food was the solution. The rebels needed to eat development of our economy, our families, our com- so if I could get them food and something to drink, I munity, and above all, our country. Today, we boast knew I would be protected,” she says, remembering of an ice cream parlor, an air lounge/sports bar, the very trying times Liberia has seen. a second sports bar with a mini casino, and a mini playground as part of our facilities… but it was not Slowly, with what she was able to save from her always like this.” sales, she opened a small provision shop with one employee selling ice, cold water, drinks, barbecue, Eyvonne, owner and CEO of Sharks Entertainment beer, and crabs. Eyvonne also sold clothes, church Inc., started her business in the heat of Liberia’s civil hats, cosmetics, and household goods. “Everything unrest selling plastic bags of water and food in the was needed, and if I could sell it, I did.” 32 STRIVING FOR BUSINESS SUCCESS: Business Innovation is critical to our survival: their ability to run strong and profitable companies Eyvonne’s real dream was to open an ice cream and compete with male-owned enterprises. When manufacturing plant. In 2000, with a small loan from business training is made available, very few women LBDI, she had the opportunity to go to the US, where attend, as they fear being absent from their activities she purchased two homemade ice cream machines for too long with no one to manage operations for from Walmart each costing $19.99 and taking her 45 them. It is therefore important to structure the train- minutes to make half a gallon of ice cream. Today, ing sessions around the women’s busy schedules, and with a total of 25 employees, Sharks has three com- make learning practical so that they can apply it right mercial machines that enable Eyvonne to make two away in their businesses. and a half gallons in 30 minutes per machine. Also, as access to electricity is difficult in Liberia, Eyvonne Liberian women entrepreneurs also need exposure saw an opportunity to offer an additional service to and mentorship. I was blessed to have been able her clientele by selling prepaid electricity. As of June to travel abroad and see how other entrepreneurs 2013, Sharks had over 13,000 clients from prepaid run their businesses and innovate on their activities. electricity sales alone. Although there is only so much I can implement due to the limited access to training and technology we Knowledge and training are the key to success: have in Liberia, I am still able to apply some of the “Knowledge has been the greatest asset for me”, says ideas to remain competitive. I was also able to learn Eyvonne. “I went to school to become an accountant, a lot from visiting other ice cream manufacturers in but I will say this is not enough to claim to be an Italy and the US. They gave me tips that I use in mak- entrepreneur. As an ice cream manufacturer, I had to ing my ice cream and in running my business on a learn about everything—the different ingredients, fla- day-to-day basis.” vors, etc. But I also had to learn about branding and marketing and how to position myself in the Liberian The Importance of Networks: “Networks are market, which is filled with imported ice cream important for our growth as entrepreneurs. Liberian brands. Of course, this is in addition to learning how women are strong and history has shown us that to write my business plan and keep my finances in when we come together we can be powerful. Having order. Knowledge and skills are major roadblocks for said that, we also need to get past our differences Liberian women entrepreneurs. Their lack of busi- and see the great need for women entrepreneurship ness and financial management knowledge hampers to thrive in our country. “ VOICES OF LIBERIAN WOMEN ENTREPRENEURS 33 34 STRIVING FOR BUSINESS SUCCESS: REFERENCES Government of Liberia. 2011. “Lift Liberia Poverty Reduction Strategy Assessment Report.” Monrovia. IFC. 2008. Voices of Women Entrepreneurs in Bosnia and Herzegovina. Washington, DC: IFC. ———2007. Removing Barriers to Enterprise Formalization in Liberia. A Gender Analysis. Monrovia: IFC. Lemmon, G. T. 2012. Entrepreneurs in Post-Conflict Zones, Council of Foreign Relations Working Paper. Morrison, A., and Biehl. 1999. Too Close to Home: Domestic Violence in the Americas. Washington, DC: Inter- American Development Bank. Simavi, S., C. Manuel, M. Blackden. 2010. Gender Dimensions of Investment Climate Reform: A Guide for Policy Makers and Practitioners. Washington, DC: IFC. UN Women. 2011. Unleashing the Potential of Women Informal Cross-border Traders to Transform Intra-African Trade. World Bank. 2007. Liberia Gender Needs Assessment: Towards Women’s Economic Empowerment. Washington, DC: World Bank. ———2008. Girls’ Vulnerability Assessment, background paper for the preparation of project to promote the economic empowerment of young women in Liberia. Washington, DC: World Bank. ———2010. Liberia Employment and Pro-poor Growth, Report No. 59124-LR. Washington, DC: World Bank. ———2012a. Poverty Note: Tracking the Dimensions of Poverty, Report No. 69979-LR. Washington, DC: World Bank. ———2012b. Preliminary EPAG Mid-line Report – Economic Empowerment of Adolescent Girls and Young Women (EPAG) in Liberia, internal report. ———2012c. Liberia Inclusive Growth Diagnostics, Report No. 67188-LR. Washington, DC: World Bank. VOICES OF LIBERIAN WOMEN ENTREPRENEURS 35 36 STRIVING FOR BUSINESS SUCCESS: VOICES OF LIBERIAN WOMEN ENTREPRENEURS 37 The World Bank 1818 H Street, NW Washington, DC 20433 USA www.worldbank.org www.worldbank.org/wbi www.ifc.org/gender 38 STRIVING FOR BUSINESS SUCCESS: