migrant women and entrepreneurship

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Migration

Entrepreneurship

&Development

Empowering Migrant Women & Families

May 21, 2014

A presentation

Asian Development Bank

The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or itsBoard of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibilityfor any consequence of their use. The countries listed in this paper do not imply any view on ADB's part as to sovereignty or independent status or necessarilyconform to ADB's terminology.


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www.unladkabayan.org

Philippine economy

Population: 92 million (NSO, 2011)

1 of every 3 workers is a laborer (manual, unskilled DOLE)

26.5% Poverty incidence (NSCB) 23.1 million subsist on less than $2 a day

Category Total % Women Men

Labor force 40.32 M 100 38.8% 61.2%

Participation rate 64.3 49.5% 79.4%

Employed 36.5 M 90.0 14.2 M 22.3 M

Formal sector 20.5 M 50.0

Unemployed 2.91 M 7.3 6.7 M 7.4 M

Underemployed 7.58 M 19.5

Unpaid workers 2.3 M

Base of the pyramid 38.0 M 42


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Economic performance

Growth rate: 6.6%

Sector

%

Labor

Force

% to

GDP

Share to

GDP growth

(2013)

Growth

rate

Industry 10 31.3 2.8 6.5

Agriculture 33 13.9 0.1 2.7

Services 52 54.8 3.5 7.4

mSMEs make up 99% of all business establishments

60% of all exporting firms are mSMEs

employs 55% of total labor force

contributes 30% to total volume of domestic sales

51% of Filipino entrepreneurs are women


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Migration & Remittances

11 million Overseas Filipinos in 156destinations

48% women 1 of every 2 female OFWs is an unskilled worker

26-45 years old, married

50%+ with tertiary education

PhP10-15K average monthly salary for women

PhP15-30K average monthly salary for men

US$22.1 B Remittances in 2013

75-90% of salary remitted home

27% had savings

7% had meaningful investments

Sources: POEA & CFO

OFW Profiles of 10 communities (Unlad Kabayan studies)


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Rank Country # Overseas

Filipinos

Remittance

US$B

% to Total

1 United States 3,166,529 9.11 42.6

2 Kingdom of Saudi Arabia 1,512,539 1.73 8.1

3 Canada 667,674 1.96 9.2

4 United Arab Emirates 636,154 0.96 4.55 Australia 345,592 n.a. n.a.

6 Malaysia 316,273 n.a. n.a.

7 Qatar 305,331 n.a. n.a.

8 Japan 290,358 1.005 4.7

9 United Kingdom 196,740 1.069 5.0

10 Italy 123,379 n.a. n.a.

Top 10 remittance sources: $26 B, 2012


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Top 10 sending provinces-remittance receiving provinces

OFW Sending Provinces Remittance Receiving Provinces

Rank Province # Rank Province PhP B

1 Pampanga 73,718 1 Rizal 13.827

2 Pangasinan 66,491 2 Cavite 13.008

3 Laguna 52,350 3 Laguna 10.9014 Iloilo 52,033 4 Pampanga 10.181

5 Batangas 49,996 5 Iloilo 10.180

6 Cavite 46,186 6 Cebu 9.933

7 Rizal 45,958 7 Batangas 8.372

8 Cebu 42,813 8 Pangasinan 7.872

9 Bulacan 39,050 9 Bulacan 7.780

10 Tarlac 32,049 10 Zambales 5.730


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Issues and challenges

Economic model

Services & consumption drivenRentier based

Jobless growth

Remittance dependent

Low productivity & low quality jobs

Low technologyLow entrepreneurial skills, knowledge

Poor work ethics

Unequal access to resources & opportunities

Most productive assets in private hands

Majority of population are landlessDeclining investments

Low investor confidence

Low saving rate


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Migration & development


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Addressing the gaps in development

Migration is seen as a strategy to diversify, secure andimprove livelihoods. (Stark, Oded and DE Bloom, 1985)

Given their ties to their countries of origin, diaspora

members are willing to risk starting or engaging in

business activitiestheir knowledge of the local,

political, economic and cultural environment, their

personal connections and linguistic abilities may givethem first mover advantage when investing in or

starting businesses in their countries of origin (MPI, 2010)


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Objectives

1. Prepare for a planned anddignified return at the mostopportune time.

2. Build capital, business & localjobs.

3. Enhance financial and socialvalue of remittances.

4. Enhance sense of security.

5. Contribute to development oflocal economy.

6. Provide an option to leave or toremain at home.

Outcomes

1. 35 OFW savings groups, 1,000+individual MSAI practitioners.

2. US$ 800,000 in savings &

investments.3. 2,500 micro-enterprises and

22 small enterprises.

4. More than 6,000 jobs andlivelihoods.

5. New products developed

6. Increase incomes of households,community and local government


Migrant Savings and Alternative Investments (MSAI)


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Women

1. Remit more regularly2. On the average, remittance is

smaller

3. Remittance is bigger share tototal income

4. More women have savings but

in smaller amounts than men5. More women have investments

but in smaller amounts

6. More women invest in retailtrading & farming

Men

1. Less regular in sending remittances2. Remit in bigger amounts

3. Lesser number of migrant menhave savings

4. On average, savings of men OFWs isbigger

5. Men have bigger amounts ofinvestments

6. Men invest in transport/vehicles &real estate


Remittance, savings & investment behavior

Source: OFW in Davao City: Remittance, Savings & Investment Behavior, Unlad Kabayan, 2012.

OFW remittances is the mainstay of majority of households, 79%

Remittance use

1. Food 5. Entertainment, e.g. Holidays, gifts2. Education 6. Support to other relatives, friends

3. Payment of debts 7. HH consumables, jewelry

4. Housing


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OFW investments (Davao City, 2010)


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Operational Strategies


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Savings & investment mobilization

Financial and entrepreneurial literacy Organizing savings and Investment Groups (SIGs)

Training MSAI champions on-site

Asset & hazard mapping


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Business Incubation

Pre-operation

Phase

Feasibility Study &Business

Opportunity

Identification

Asset mapping

& PCVA

Social and communitypreparation Enterprise Management

training

Technical skills/technology

transfer

Trial production/

Test Run

Agricultural-2 Cycles

Manufacturing-1 Year

Business

Performance

Assessment

Business Planning


Enterprise Development Support

COMMERCIAL

OPERATION


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Partnership

OFWEntrepreneurEnterprise

Academe

Private Sector

Migrant

Resources

Financial

intermediaries

Government

NGO-CSO


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Factors facilitating savings

investments

1. Supportive policy environmentin origin & destination countries

2. Access to financial institutions

& services3. Education & training in financial

& entrepreneurial literacy

4. Supportive businessenvironment

5. Physical & psycho-social spaces,

e.g. BACs6. Supportive families left-behind

7. Presence of MSAI champions &models on-site and at home


Factors to consider in MSAI

Factors affecting Savings &

Investments

1. Type of Job

2. Income level

3. Length of stay-work overseas4. Family: size & pressure

5. Placement fees: cost & mode of

payment

6. Debts

7. Spending habits

8. Work status

9. Working conditions on-site

10. Living conditions on-site


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Economic & social benefits

Develops migrant & home-grown entrepreneurs:

increases awareness of economic dynamics

promotes creativity and self-relianceasserts & claims rights, e.g. womens rights, economic rights

Builds local capital and assets

Generates local jobs

Increases household incomes and sense of security:

increases purchasing capacityaccess to better food

improves access to health & medical services

increases access to education

Improves quality and productivity of labor

training and technology transferinstills value of work and discipline

Adds value to local industry

harnessing local materials & assets

creates new products

increase economic transactions


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Issues & challenges


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Entrepreneurship of the social sector

Inadequacies and excesses of the private sector

Unbridled pursuit for profitInefficiencies of the marketPrivatization of the commonsLow regard for the common good and common future

Failures and abuse of the public sector

Weaknesses in planning that lead to wasteful spending and regulationWeaknesses in regulation & lack of accountabilityIntractable bureaucracy & corruptionInadequate social safety nets

Value and Potential of the social sector

Significant contributor to employment & wealth creationHuge market potential of Base of the Pyramid (BoP)Strong desire and potential driver for social change


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1. Policy

a. Incoherent & conflicting policiesb. Shifting priorities & personnel

c. High cost of capital and corporate taxes

d. Low appreciation for entrepreneurial practice

2. Operational support

a. Lack of access to and high cost of technology

b. Poor Infrastructure: e.g. pre & post harvest facilities, roads &

transport, etc.

c. Expensive & unreliable power supply

3. Human resourcelow productivity & competitivenessa. Lack of entrepreneurial skills, experience & knowledge

b. Poor quality of workforce & work

c. Lack of discipline and work ethics


Barriers and Challenges


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Women-specific challenges

1. Multiple burdens of women: productive & reproductive roles

breadwinners,

mothers,

carers,

domestic workers

2. Mobility;

3. Access to credit and capital;4. Access to information and training;

5. Patriarchy

traditional gender roles

Decision-making

Ownership of assets6. Psycho-social beliefs & practices

Gender-determined jobs

Bias towards certain capital source

Small business to women and leave big business to men


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Global crises


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OFW Enterprise performance


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1. Provide an enabling policy environment

a. Coherent development policy & implementing guidelines

b. Rationalize cost of doing business: taxation, investment incentivesc. Financial support package e.g. Social venture capital

d. Legislative support: GAD-Migrant Desks, Social/Migrant Enterprise legislation

e. Regulation on unfair competition

2. Develop Operational support structures

a. Business Development Services (e.g. LGU-MEEDO, NGO/CSO)b. Power-energy cost and reliable supply

b. Efficient business processingOne-Stop Business registration & accreditation

c. Access to technology, markets & rational highways

d. Adequate infrastructure support, e.g. pre & post harvest facilities.

3. Human resource developmenta. Financial and entrepreneurial literacy training

b. Strengthening work value and ethics

c. Continuing upgrade in technical skills & competencies

d. Setting productivity standards and quality of work

e. Encourage and support women champion entrepreneurswww.unladkabayan.org

Recommendations


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Gender-specific Recommendations-Outcomes

1. Study-assessment leading to sharp targeting of women(OFWs) for MSAI identifying needs that location and

enterprise specific;2. Provide physical and political space that release women

into active labor and entrepreneurial pool; e.g. child-minding centers

3. Active role of LGU and activate the allocation and use ofGAD & development fund for entrepreneurship;

4. Provide gender-responsive financial packages (remittance,savings, capital, credit, insurance, etc.);

5. Provide accessible and appropriate technology

6. Access Business Development Services (BDS) to womenentrepreneurs OFW and families

Desired Outcomes:1. Saving and investing becomes an attractive proposition

2. Barriers to entry to women entrepreneurs is reduced

3. Breaking the cycle and culture of dependency & gender-bias


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MSAI Vision Goal


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Mag-impok, mamuhunan,

itatag ang kabuhayansa sariling bayan!

Unlad Kabayan Migrant Services Foundation

3/F UCCP Bldg. 877 EDSA West Triangle, Quezon City, Philippines

Email: [email protected] Website: www.unladkabayan.org
mailto:[email protected]:[email protected]


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Investments in agri-business


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Develops home-grown women entrepreneurs

Builds local capital & assets


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Training-transfer of knowledge & technology

Generates local jobs

Uses local materials


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Creates diverse products

Stimulates local business


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Adds value to

local industry

migrant women and entrepreneurship

Documents