research about possibilities for women economic empowerment · sustainable business plan. 2.2...
TRANSCRIPT
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“Social Inclusion through Women Economic Empowerment in Montenegro (JAKA)”
„Soziale Inklusion durch wirtschaftliche Ermächtigung von Frauen“
Research about possibilities for women economic
empowerment (CARE Balkans, in house research and guidelines)
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Contents
1. Overview of the target regions .......................................................................................... 3
1.1 Pljevlja area .................................................................................................................. 3 1.2 Nikšić area .................................................................................................................... 3
2. Women/Social entrepreneurship ...................................................................................... 3
2.1 Definition and forms of social entrepreneurship ........................................................ 3 2.2 Social entrepreneurship in Montenegro ..................................................................... 4 2.3 Women entrepreneurship ........................................................................................... 5
3. Capacities of the partner organizations ............................................................................. 5
3.1 Bona Fide Pljevlja ......................................................................................................... 6 3.1.1 General information .................................................................................................. 6 3.1.2 Capacities for economic empowerment ................................................................... 6 3.1.3 Conclusions ................................................................................................................ 8
3.2 Centar za romske inicijative Nikšić .............................................................................. 9 3.2.1 General information .................................................................................................. 9 3.2.2 Capacities for economic empowerment ................................................................... 9 3.2.3 Conclusions .............................................................................................................. 11
4. Market opportunities for individual business start ups ................................................... 12
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1. Overview of the target regions
1.1 Pljevlja area
With a total area of 1,346 km2 (520 sq mi), Pljevlja is the third largest municipality in
Montenegro. In 2011, the municipality of Pljevlja had a population of 30,786. Pljevlja is also
one of the main economic engines of Montenegro. The only thermal power plant in
Montenegro, which provides 45% of the electric power supply for Montenegro, is situated
outside Pljevlja as well as the biggest coal mine with 100% of the coal production in
Montenegro. Zinc and lead can be found in Šuplja stijena mine. The richest municipality with
forest in Montenegro is Pljevlja and its lumber industry. Agriculture is widespread in the
whole municipality. Pljevaljski sir (Pljevlja's cheese) is considered a delicacy. There is big
potential for ecological and winter tourism.
According to MNE Statistical Office, there are around 700 small and medium enterprises
established in Pljevlja and they work in sectors of various productions, construction
engineering, trade, catering and various services. Total number of employees is estimated at
6.500. There are 2.895 officially registered unemployed ones and every fourth citizens of
Pljevlja is unemployed.
According to the municipal register of NGOs for 2015, there are 52 NGOs active in Pljevlja
area.
1.2 Nikšić area
Nikšić is the largest municipality by area (2.065 m2) and second most inhabited in MNE with
population of 75,282 citizens. It is an important industrial, cultural, and educational center of
MNE. The main employers are a steel mill (Nikšićka Željezara), bauxite mine, and Trebjesa
brewery (Nikšićka Pivara).These big industries have struggled to survive the collapse of the
socialist economy, but have since recovered. The process of privatization is either finished or
still in progress for some of these industries.
According to the Statistical Office of MNE, there are around 19.000 employees in the
municipality and 1.600 companies. There are also around 4.100 unemployed ones.
According to the municipal register, there are around 300 NGOs working in Nikšić area.
2. Women/Social entrepreneurship
2.1 Definition and forms of social entrepreneurship
EC defines social enterprise as “an operator in the social economy whose main objective is to
have a social impact rather than make a profit for their owners or shareholders. It operates
by providing goods and services for the market in an entrepreneurial and innovative fashion
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and uses its profits primarily to achieve social objectives. It is managed in an open and
responsible manner and, in particular, involves employees, consumers and stakeholders
affected by its commercial activities”. Social enterprises make up 10% of small and medium
enterprises in EU and employees in these companies make up 6% of the total number of the
employees1.
The term “Social Enterprise” describes the purpose of a business, not its legal form. At the
simplest level, a social enterprise can be a trader who has decided to donate the majority of
the profit it makes to a good cause. Social enterprises may take a variety of legal forms
depending on local context. The process for establishing social entreprise will depend on
which legal form is chosen.
The key for success of social enterprises as well as any other enterprise is to have
sustainable business plan.
2.2 Social entrepreneurship in Montenegro
There are three segments of social entrepreneurship – employing marginalised groups (e.g.
disabled persons, minorities etc), social responsibility of the companies, and environment
protection. None of them is sufficiently developed in MNE2.
The Ministry of Labour and Social Welfare of MNE considers3 social entrepreneurship more
and more as a new instrument that will contribute to stronger social inclusion and
involvement of the most vulnerable population. However, the concept for development of
social entrepreneurship is still not developed in MNE. There is no any policy document or
specific legislation (specifically) dealing with it. There is no full understanding and
implementation of the concept. However, it is clear that when it comes to legislation, that
there are elements for development of social entrepreneurship in MNE.
Activities (related to social entrepreneurship) implemented so far are related to specific
projects and efforts of NGOs that work in line with social entrepreneurship concept. These
NGOs are utilising possibilities or framework that is provided by the Law on NGOs, Law on
Companies and legislation dealing with professional rehabilitation and employment of
disabled persons. These NGOs do have their products and services that are distributed at the
market. One of the NGOs that distribute4 products is Bona Fide from Pljevlja.
According to legal forms available in Montenegro, social enterprises may take the form of 1.
Co-operative; 2. Non for profit LTD (doo); or 3. Association of citizens. Non for profit LTD is
too expensive and administratively too demanding. There is not any case in practice that
cooperative in MNE serves as social enterprise. Therefore, the best current model for
developing social enterprise in MNE is to fit NGO activities within the current legislation.
The Law on NGOs in MNE is adopted in July 2011. NGO can fund its activities from its own
business activities (article 28). Article 29 of the Law defines precise conditions for doing
business activities. According to the Article, NGO can directly be involved in business activity
if it registers in the register of businesses and if income from doing business activity does not
go over 4.000 EUR per year.
1 “The Study on Social Entrepreneurship in MNE“, February 2016
2 Faculty of Economics, Podgorica - http://www.ekonomija.ac.me/sites/ekonomija.bild-
studio.me/files/multimedia/fajlovi/obavjestenja/2013/04/biznis_09_-_socijalno_preduzetnistvo.pdf 3 Press release of the Ministry, http://www.mrs.gov.me/vijesti/155195/SAOPsTENJE-Ministarka-rada-i-socijalnog-staranja-
Zorica-Kovacevic-otvorila-je-Konferenciju-Razvoj-drustvenog-preduzetnistva-u-Cr.html 4 NGOs cannot sell products directly but there are ways to distribute them through various channels.
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According to the Ministry of Labour and Social Welfare, the next steps for developing social
entrepreneurship in MNE are developing clear definition of social entrepreneurship and
social entrepreneurs, considering possibility to introduce tax reliefs for development of
social entrepreneurship, and provide education, information and trainings about social
entrepreneurship for entrepreneurs but wider public as well.
There are two thinking related to development of the social entrepreneurship legislation in
MNE. One is to strategically and in the legislation define clearly what social enterprise
exactly is and enable legal formation of social cooperative. The other thinking is to establish
general legal framework for development of social entrepreneurship and enterprises.
However, NGOs that are the only one currently dealing with social entrepreneurship should
utilise possibility of current legislation so that their business ideas do not wait for adoption
of legislation that will regulate the work in social entrepreneurship5.
2.3 Women entrepreneurship
Women entrepreneur may be defined as a woman or group of women who initiate,
organize, and run a business. It could also be said that women who innovate, imitate or
adopt a business activity are called “women entrepreneurs”. Basically speaking, women
entrepreneurs are those women who think of a business enterprise, initiate it, organize and
combine the factors of production, operate the enterprise and undertake risks and handle
economic uncertainty involved in running a business enterprise.
Women’s participation in entrepreneurship varies around the world. While for example in
Pakistan, only 1% of women are entrepreneurs, there are 40% of women in Zambia that are
engaged in this activity. There are not exact data for MNE, but it could be estimated that
around 5% of women are involved in entrepreneurship in MNE, Estimation is based on
Global Entrepreneurship Data for South East Europe.
In 2012, an estimated 126 million women were starting or running new businesses in 67
economies around the world. In addition, an estimated 98 million were running established
businesses.
3. Capacities of the partner organizations When establishing and running a business, women face challenges such as:
access to finance
access to information
training
access to networks for business purposes
reconciling business and family concerns.
Bona Fides and CRI can play significant role in improving access to information for women,
proving training directly but more in cooperation with other actors (due to lack of their
capacity), enabling women to access the networks and expand their market and helping
women to improve their position in the families and therefore reconcile their business and
family concerns.
5 Roundtable: “Social Entrepreneurship in MNE“, February 2016
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3.1 Bona Fide Pljevlja
Address: Velimira Jakića 37, 84210 Pljevlja
Contact telephone: +382 52 324 113
Director: Sabina Talović ([email protected])
Contact telephone: +382 68 450 140
Project coordinator: Tanja Klačar ([email protected])
Contact telephone: +382 67 259 572
3.1.1 General information
NGO Open Centre Bona Fide was founded in November 1999 in Pljevlja by a group of female
activist mainly dealing with the promotion and protection of women rights and with violence
against women.
The general goal of the organization is to reduce all forms of gender based discrimination
against women and create environment where women and men would have equal
opportunities.
BF established SOS hotline in 2000 and since then helped over 3.500 women and girls
providing them with different kind of support – legal, psychological, medical aid, emotional
support and lobbying with institutions. In 2012, BF established the safe house for women
and children victims of domestic violence. The organisation actively participates in adoption
of gender sensitive policies in MNE, particularly in the fields of employment, education, and
health. In 2008, BF started a programme for encouraging women entrepreneurship and
solidarity. Main objective was to support economic independence of women, development
of business plan, education and advices on business development, creation of the networks
of female entrepreneurs...
3.1.2 Capacities for economic empowerment
General capacities
General capacities of Bona Fide are very good, and the main findings are as follows:
Bona Fide is well structured organization that works since 1999 and it is the first
association of citizen established in the North MNE. The Assembly has 40 members,
and 15 of them are very active. President of the Association is legal representative.
Organization has clear organizational and management structures. Besides clear
organizational structure, BF applies horizontal management and it means that all the
members do (are trained and ready to do) all the jobs.
Organization works in fully equipped (rented) offices that are adapted and equipped
with the assistance of Turkish Development Agency (TIKA).
BF owns office equipment (laptops, scanners, printers, projection device),
Strategic directions of work are clear and divided in two programs,
Project management capacities are very good except project preparation capacities
that are low,
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Organization has very good relationship with public institutions and other NGOs, but
cooperation with private companies could have been improved,
One of the most important resources is their dedication to their mission.
Available human resources are well trained for the jobs that they doing. Employment
depends only from available projects. Full time collaborators are psychologist, lawyer
and social welfare worker. Currently, there are 4 employees (short term labour
contracts). There are also 7 apprentices and there is possibility to employ more
apprentices.
Experience and knowledge for economic empowerment
Comparing to the rest of MNE as well as the region (neighbouring areas in BiH and Serbia),
BF has very good knowledge and experience for economic empowerment. They have
experience and knowledge that they are not even aware of. But the most positive thing is
their strong willingness to start “real” business (social entrepreneurship) activities. Bona Fide
is already social enterprise but without strong business component. And social enterprise is
as any other enterprise. It needs sustainable business plan and pure business approach in
doing business. The most important elements of their experience and knowledge are:
BF has very good quality products that organization can offer on the market
Their own production includes wool products (caps, scarves, socks, sweaters, slippers...),
weaved products (souvenirs, rugs, carpet weavings of all sizes...), sewing and tailoring,
products made by order (e.g. laptop cases).
Products are done from natural materials (wool, cotton...),
80% of the wool comes from the Pljevlja wider region (mostly from women and that is the
way to further help them). This fact is very good base for branding the products and
ensuring their quality.
BF owns 9 weaving devices and 2 professional sewing machines,
BF is not donor or project driven organization.
Besides project activities, organization provides regular services to their clients. BF manages
the shelter for women and children that are violence victims. Beneficiaries also enjoy
working therapy.
BF revitalised an old craft – weaving
Weaving has almost died in Pljevlje area and thank to BF it has bright future. Beside training
women to do weaving, BF has good market approach in developing weaving products and
organization adapt motives on weaved products depending on cultural heritage and need of
final and potential buyers.
Staff of the organization has idea about market
The current channels used for selling the products are fairs (however there is opinion that
going to fairs outside Pljevlja is not profitable, directly in their premises, in the souvenir shop
at Djurdjevica Tara (touristic place).
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Other possibilities that BF staff is thinking of are through the hotel chains that exist in MNE,
Diaspora, and the Internet.
Strategic plan of BF for the next period is clear and includes establishment of services
(social enterprise) that will enable women to find a job easier
3.1.3 Conclusions
BF has very good base to work in the field of social entrepreneurship. Their biggest
advantage is highly dedicated staff and the existing production. There is no doubt that BF
business (social enterprise) should fully rely on their existing production. In order to make BF
successful social enterprise, the following should be done.
Bona Fide need sustainable business plan
Business plan will help the organization to figure out basic calculations and profitability of
their current production. It will also show all the shortcomings and the needs. Business plan
will be an excellent tool for BF to become more business oriented (currently, BF is too
socially oriented).
Improve their (key staff) understanding of social entrepreneurship
Social entrepreneurship is as any other entrepreneurship (business) and the only difference
is that social enterprise returns all its profit for fulfilling the mission of the organization
(meeting social objective). The staff was not thinking that way before (to run real business),
but know they seems to be ready. They see this project as great opportunity to start “real”
business (social enterprise). The organization can immediately start by introducing simple
calculation system about earnings from their current production and sale. Interestingly that
such calculation despite of series production and capacities does not exist.
Legal statues should remain as it is (association of citizens)
There is currently enough space that BF sells the products without changing legal statues (or
forming new legal body). The Business Plan should show which legal statues /form/ should
be used.
Improve management capacities and way of thinking that start from market needs
(not products)
Currently, the Association produce really good quality products but has not precise/clear
idea about the market. So, the Association should adopt their production to market needs.
For example, if Abu Dhabi market is interested, the precise needs of that market should be
explored. Based on the needs, production should be organized (including motives and
quality).
The key persons (15 active members of the Association) should be introduced to good (social
entrepreneurship / similar business) practise cases. General training about business planning
is needed with the strong emphasis on market research.
Lack of professional manager (although there are capacities in the organization to develop
one) is the biggest disadvantage and risk for the future work of social enterprise. Therefore,
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the manager should be selected ASAP and be fully involved in all the trainings and business
planning activities.
Mentoring during implementation of business plan
Due to lack of BF experience in running a business, as long as possible mentoring support for
implementation of business plan should be provided to them.
3.2 Centar za romske inicijative Nikšić
Address: Jola Piletića bb, 83000 Nikšić Contact telephone: +382 40 246 369 Executive coordinator: Fana Delija ([email protected]) Contact telephone: +382 67 828 405 Project coordinator: Ivana Dašić ([email protected]) Contact telephone: +382 68 421 123
3.2.1 General information
Centre for Roma Initiatives (CRI) is the first women’s Roma/Egyptian/Ashkali NGO in MNE
founded in 2004. The main objective of work is active inclusion of Roman women and
achievement of their rights. It is estimated that there are 1.000 members of these
communities in Niksic. Organization is a spinoff of local SOS hotline and support service for
women and children victims of violence. Organization has experience in implementation of
over 50 projects.
CRI is very well embedded in the society and they are respected both by Roma population
and local administration. Members of the organization work directly with Roma population.
On the national level, CRI is involved in design processes of strategic documents related to
position of Roma women and it is also involved in public policy monitoring and advocacy.
The beneficiaries of the Association are women who are highly unemployed. According to
CRI data only 5% of Roma and Egyptian women are employed in MNE. Situation in Nikšić is
even worse and there is no any employed Roma or Egyptian women in any public institution
or company and there is no any business managed by these women. There are only two
women employed in Nikšić and they both work in association of citizens. Most of these
women work on the black market at open market places but these jobs are extremely
unsecure. They are not able to find any seasonal job due to their obligations in the families
(they have 3-5 children that they have to take care of).
Currently, there is a possibility in MNE that women who has 3 and more children and were
registered and the employment office for 15 and more years get pension. Most of the Roma
and Egyptian women has never been registered at the employment offices and therefore
cannot use this opportunity either.
3.2.2 Capacities for economic empowerment
General capacities
General capacities of CRI are very good, and the main findings are as follows:
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CRI is well structured organization that works since 2004. The process of establishing
was “natural” and mostly “bottom driven”. It all started with SOS telephone initiative
in 2000 and the most dedicated participants in work of the SOS initiative established
the Association.
Strategic plan was done in 2014 and it will be updated this year,
The Assembly has 3 members (minimum required by legislation), and there are 7 very
active members and plus local coordinators in Ulcinj, Berane and Podgorica. Advisory
board has 5 members that come from the Association, beneficiaries, local police,
Centre for Social Welfare and women network.
Organization has clear organizational and management structures.
Organization works in fully equipped (rented) offices and it owns office equipment
(laptops, scanners, printers, projection device),
Project management capacities are very good except project preparation capacities
that are low,
Organization has very good relationship with public institutions and other NGOs, but
cooperation with private companies could have been improved,
There are 8 short term employees (fixed term contracts). They are all highly educated
(pedagogue, pre-school children expert, journalist, criminalist, psychologist, English
language and literature teacher). Available human resources are well trained for the
jobs that they doing. Employment depends only from available projects. There are
also apprentices and there is possibility to employ more apprentices.
Experience and knowledge for economic empowerment
In 2009, CRI has participated in establishment and work of cooperative „Rukatnice“. There
were 5 tailors and 5 hair dressers involved in the establishment. The cooperative was used
to start and run hair dresser salon and tailoring shop. There was a lot of effort invested by
all, but the initiative failed. However, the most positive thing is that CRI staff has great
experience in managing the business. The hair dresser could not survive due to prejudice of
majority (Roma women worked in the salon). The cooperative was even producing linens
with “Fana” brand. The other reason for closing the cooperative was lack of capacity to
manage it. The two key persons that manage the Association used to manage the
cooperative as well. At one point of time, they had to decide whether to continue with the
work of Association or cooperative and they decided to close cooperative. Machines (10)
that were used for the work of Cooperative were returned to SOS organization. The
Cooperative worked for 3 years and during that period exported small quantities of products
to Italian market as well.
Opening hair dresser salon and tailoring shop was imposed by the donor and was not based
on market research. The key lessons learned from this experience are that 1) proper market
research has to be done and 2) key for success of the social enterprise is adequate
management.
The other important elements of CRI experience and knowledge are:
There is lack of any knowledge of CRI staff about successful social enterprises from
the MNE and the region but also lack of understanding that social enterprise is a
business.
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This fact can further negatively influence dedication of CRI staff to establish and manage
social enterprise.
The understanding of CRI staff is that social enterprise should work on women
empowerment through educations, small grants that will help them to implement their ideas
on the market and make additional income. CRI staff does not have idea about their own
social enterprise and wait for additional trainings and educations within the project in order
to define their ideas more precisely.
There is no any person currently dedicated to business oriented activities.
CRI staff work on economic empowerment but their activities are related to researches and
general support to experts and organizations that work with their beneficiaries.
Current activities related to economic empowerment / social entrepreneurship are
general but the project could fill the gap and assist CRI to improve their capacities
and attitude.
3.2.3 Conclusions
CRI has very good experience but very bad base for starting and managing social enterprise.
CRI key staff was directly managing the cooperative for almost 3 years (2009-2011) and
gained valuable experience. However, they moral for starting it is very low and they have no
any idea about what kind of social enterprise to start.
Current management of the CRI do not believe that social enterprise in Niksic can
work
Due to their bad experience, CRI management is very suspicion about establishing and
managing social enterprise. Currently, CRI has no any idea about what could be done and
how to run the enterprise.
Demonstration of good practice cases should be done to CRI.
If it is not possible to take CRI staff to successful social enterprise, a video conference could
be done. Due to their bad experience, it would be counterproductive to force upon any idea
related to social entrepreneurship to CRI staff.
Business management capacities has to be developed
Despite the experience in managing the business, CRI staff still feels very insecure to do
financial and business management on their own. Social enterprise should be established
only if there is clear capacity to manage it.
The potential clients (beneficiaries) of the social enterprises are mostly illiterate
women
These women do not have any resources to join or support social enterprise. Many of the
CRI beneficiaries do not even speak MNE well. They come from rather “close” communities.
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The strong points of CRI (related to possibility to develop social enterprise) are their
experience, organizational stability and high need in local area due to extremely high
level of unemployment of their beneficiary group.
There are only 2 Roma and Egyption women in Nikšić that are officially employed. According
to CRI data, 50% of the women are interested to “do something”. Most of them are willing
to work in animal husbandry sector, and some are interested in tailoring. Most of the
women are not skilled to do what they would like to do and need intensive training.
Weak points of CRI (related to possibility to develop social enterprise) are
vulnerability of population that they work for, lack of confidence in project
methodology, lack of time that is needed to properly develop social enterprise in this
particular case, and illiteracy of the beneficiates (only 5% has finished primary
school).
One possibility for CRI is to develop Business Service Centre for Women
Entrepreneurship in Nikšić. The Centre could provide services on the market (e.g.
advices related to getting credit in cooperation with banks, preparation of
documentation for business willing to work with ministries etc.). Precise idea should
be developed in a business plan.
The other possibility for CRI is to create joint venture with some of the existing
entrepreneurs in Niksic that will thanks to cooperation with CRI expand its business
and final beneficiaries will be CRI and Roma women.
One possibility is to get involved in medical and aromatic herb sector. Landless
population (and most of CRI beneficiaries are landless) can easily get involved in the
sector. There is no direct contact with buyers, so prejudice can be avoided. And one
of the important private companies in the sector is located in Niksic (Herbal MNE
doo).
4. Market opportunities for individual business start ups
A key question that entrepreneurs face with is finding the business opportunity that is right
for them. Should the new start-up focus on introducing a new product or service? Should the
woman entrepreneurs select an existing product or service from one market and offer it in
another where it may not be available? The question is also what resources women in MNE
can rely on because it is known that culture of female entrepreneurship is very
underdeveloped in the area. These questions are answered by women themselves and the
main findings are:
Women have no savings or possibility to get favourable finances to start a business.
The only funding opportunities they have are micro finances that are very
unfavourable to start or manage proper business. They have no possibility to borrow
money either.
Targeted women do not posses any property (it is mostly their husbands who do).
The level of education of the targeted women is very low. They also do not posses
special skills that would be considered as added value at the market.
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There are no government (national of local) programs that target this category of
women and encourage them to start the business.
Most of these women are located in the rural areas of rather small urban areas
where opportunities to start and manage a business are low anyway.
Based on theses main findings the main market opportunities for the targeted women are:
Agriculture
Agriculture could include basic agriculture, production in the protected space, and in limited
cases production of special type of culture if there is a skill (e.g. during the field research
there was one woman registered who has skills and basic production of strawberries that
could be expanded).
Basic livestock
Basic livestock could include 1-2 cows, goats and sheep. Targeted women live in such areas
where this type of production is possible. Their resources to start livestock business are
limited but still exist. It is largely expected that in these cases women will mostly produce for
their families and small extra product will be sold in the neighboured. There is small
possibility (due to lack of experience and skills) that some of them will start production of
added value products (such as cheese). In order to start such productions, these women will
need more assistance.
Small businesses that some women already run unofficially
There is a range of small businesses indentified as opportunity because women unofficially
already manage it. They manage it on a very small scale but they posses’ skills and if there is
a will there might be a business opportunity.
The recognised businesses and skills are tailoring, car washing and hair dressing.
Trade
Women in Niksic area are especially active at the open market places in trading. They buy
and sell various things (clothes, small devices of all type etc.) and therefore they possess the
skills to do trading. Having this skill, certainly means an opportunity to start and manage its
own businesses.