At the end of December 2015, the International Trade Centre (ITC) launched SheTrade, to connect women entrepreneurs to international markets. By 2020, the aim is to successfully connect one million women to facilitate job creation and foster economic growth in an increasingly digital and interconnected global economy. Women's economic empowerment is essential, as it has a direct impact on poverty reduction and economic growth.
Author : David Flanel
Although women-owned businesses account for between a quarter and a third of the world's total business population, they are virtually absent from both global value chains and corporate and government supply chains. It is therefore important for political decision-makers, institutions, companies and opinion leaders to identify and implement 21st century strategies and policies to change this state of affairs. Changes must take advantage of new technologies, create a business-friendly environment, establish supportive institutional frameworks and increase the competitiveness of women-led businesses.
To overcome these obstacles to economic growth and job creation, thought leaders from around the world gathered in São Paulo, Brazil, in September 2015 for the Pioneers Summit of the Business Development Forum for Women Entrepreneurs. On this occasion, at the initiative of the joint agency of the International Trade Organization and the United Nations (ITC) whose role is to help small and medium-sized enterprises in developing and transition economies become more competitive in global markets, a call to action was launched. Over a five-year period, the aim is to connect one million entrepreneurs to the market, thereby stimulating the global economy through women's participation in trade.
So, in order to make it easier for women-owned businesses to find potential buyers, and thus connect one million women to markets by 2020, a joint initiative by ITC, Google and CI&T was then born: The Technology Challenge. Internet developers were asked to create an online database and application to build a digital support platform to achieve the goal.
It was a woman-led Kenyan company, GreenBell Communications, that won the Challenge in December 2015. It set up SheTrade, a tool enabling women entrepreneurs to take advantage of new technologies, as accessible through cell phones and the Internet, to reach buyers, internationalize and grow their businesses.
"SheTrades facilitates new business opportunities and potential partnerships. It opens up new sourcing opportunities for large companies. Arancha Gonzalez, Executive Director of ITC.
On SheTrades, women entrepreneurs can share information about their businesses, increase their visibility, expand their networks, connect and go global. SheTrades also helps companies integrate more women entrepreneurs into their supply chains.
The Call to Action launched in December 2015 seeks to act on seven areas necessary for women's participation in international trade: access to credit, trade policies, data, women's training and public procurement among others. For each of these areas, governments, businesses and other organizations are challenged to make concrete commitments to better understand and address the barriers that hold back women entrepreneurs, employees and women-owned businesses.
"The result is a set of solid, concrete goals that are certainly ambitious but above all realistic. Let's create a world where women are treated as equals, and where innovation from women is accepted." Arancha Gonzalez, ITC Executive Director.
1 Promote. Quality data
The collection, analysis and dissemination of data relating to women's economic participation remains scarce, particularly when it comes to activities linked to international trade. It is essential to gather data with a view to developing policies that tap into valuable but largely untapped resources in procurement and global value chains, namely women entrepreneurs.
2 Adopt. Fair policies
Research conducted by the United Nations Conference on Trade and Development (UNCTAD) reveals that gender-based inequalities influence trade policy outcomes and trade performance.
3 Secure. Government contracts
Public procurement, according to ITC research, accounts for 10-15% of GDP in developed countries, and up to 30-40% in the economies of least developed countries, but women-owned (and often irregular) businesses receive only a tiny share of these contracts. In their combined role as purchaser and decision-maker, government and relevant public bodies have the opportunity to help shape and increase the participation of women-owned businesses in public procurement. Positive government action can also serve as a powerful example to businesses, increasing the integration of private sector supply chains.
4 Conclude. Commercial transactions
Companies can create procurement programs that continue to lead the way in integrating diversity and inclusion into global value chains. They can also foster collaborative efforts to advance women's business procurement. But having a complete supply chain, economically speaking, is not well understood on a global scale.
"Ensuring equal economic opportunities for women can help unleash that much-needed development potential in the global economy." Roberto Azevedo, WTO Director-General
5 Guarantee. Market access
While most small and medium-sized enterprises (SMEs) find it difficult to access markets, the barriers are disproportionately higher for women-owned SMEs.
6 Unlock. Financial services
Women entrepreneurs are more likely to cite access to finance as a major obstacle to their business activities. Bold steps must be taken to close the gender gap in access to financial services, including bank accounts, savings, housing finance, SME lending, equity, insurance products and digital payments. Mobile technology plays an important role in helping to promote universal access to financial services by 2020.
7 Grant. Property rights
Property rights are essential to women's entrepreneurial capacity. These rights enable women to set up businesses, and provide the collateral needed for financial growth and internationalization.
Now fully operational for a year, this application is a practical example of innovation at work, as encouraged by ITC's Women in Trade program.