 |
Al-Ahram Weekly 4 - 10 May 2000 Issue No. 480 
|
||
Published in Cairo by AL-AHRAM established in 1875 |
| ||
|
Al-Ahram Weekly 4 - 10 May 2000 Issue No. 480
|
||
| Published in Cairo by AL-AHRAM established in 1875 |
| ||
Egypt Region International Economy Opinion Culture Special Features Travel Living Sports Profile People Time Out Chronicles Cartoons Letters Women set to propel development
By Shaimaa Labib
A businesswomen's conference held in Cairo last week turned into a forum for debating women's issues, in addition to broader economic concerns.
The conference, entitled "Women and small enterprises in the new millennium" -- organised by the Social Fund for Development (SFD) under the auspices of Mrs Suzanne Mubarak -- was held at the Conrad Hotel from 26 to 27 April.
Themes discussed related specifically to women in business, such as the impact of small enterprises on women's economic status, how educational organisations can develop businesswomen's entrepreneurial skills and the opportunities available for funding women's projects.
"Gross National Product (GNP) is no longer the only technique for measuring a country's development. Achievement in the fields of education, health care, environmental protection and preservation of women's rights are becoming determining factors," according to Mustafa Abdel-Qader, minister of state for local development.
Any community which does not capitalise on women's contribution is wasting half of its human capital and is "straight away at a 50 per cent competitive disadvantage relative to others," he added.
Abdel-Qader stressed the necessity of small and medium-sized enterprises' (SMEs) compliance with Western quality standards in order to better compete in the global market. "SMEs are a key to promoting economic growth, since they need minimal operation investments, minimal space and are labour intensive, thus contributing to the alleviation of the unemployment problem. In addition, they act as training centres for unskilled labour, utilising local resources and creating job opportunities in rural areas." However, Abdel-Qader said that Egypt's SMEs face tremendous challenges. "With the current emphasis on globalisation, SMEs' products face severe competition in both local and foreign markets. In order to better compete in the global economy, they must reduce their costs while constantly improving their quality."
One obstacle facing Egyptian women starting their own businesses is the lack of collateral required by banks to guarantee the loans.
Naglaa Bahr, an SMEs consultant, suggested the construction of specialised banks that provide loans to SMEs, or the establishment of specialised units in existing banks to manage these projects' funds. "In this respect, we only have semi-specialised banks, such as the National Development Bank and the Agricultural Credit Bank, which are insufficient to provide SMEs with needed credit," Bahr said.
For its part, the SFD has recently constructed an insurance association to cover credit risks linked to SFD loans. This association is expected to compensate up to 70 per cent of the loan's value.
Women are further hindered by their lack of knowledge on how to reach the banks where their loan applications and requests are to be submitted. Some either live in rural areas where bank branches do not exist, or are illiterate.
"Banks and non-governmental organisations (NGOs) in rural areas should actively cooperate to reach these women and supply them with information on how best to start their projects," Bahr said.
In a session dealing with educational institutions' role in developing women's entrepreneurial skills, participants agreed that through knowledge acquisition, businesswomen would be better equipped to compete globally.
Nagla Mortagy, a professor of human resource management and development at Helwan University, said, "It is important to teach university graduates how to set up and manage small businesses, since there are no job opportunities available for them."
Mortagy is one of the founders of the Youth Entrepreneur Society (YES), an NGO that provides graduates wanting to set up their own businesses with feasibility studies, business advice and financial support.
"Educational centres for SMEs should be established in every university to help prepare undergraduates set up their own businesses by assisting them in preparing feasibility studies and providing them with basic information about finance, marketing and business administration. In this respect, I suggest that university deputy presidents be assigned to supervise these centres," Mortagy said.
