Women-Owned SMEs in Indonesia : A Golden Opportunity for Local Financial Institutions
Indonesia, a member of the G20 since 2008, has become one of the largest economies worldwide with the promise of substantial growth potential in the coming decades. In order to realize this potential, the government of Indonesia has identified the...
| Main Author: | |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
International Finance Corporation, Washington, DC
2016
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/691661477568338609/Women-owned-SMEs-in-Indonesia-a-golden-opportunity-for-local-financial-institutions http://hdl.handle.net/10986/25403 |
| Summary: | Indonesia, a member of the G20 since
2008, has become one of the largest economies worldwide with
the promise of substantial growth potential in the coming
decades. In order to realize this potential, the government
of Indonesia has identified the role of the Micro, small and
medium enterprise sector as pivotal to promoting growth,
creating jobs, and alleviating poverty. This joint
International Finance Corporation (IFC) study on Women-Owned
Small and Medium Enterprises (SMEs) in Indonesia makes a
significant contribution in understanding women’s economic
empowerment in the country by presenting a comprehensive
analysis that captures original data. More than half of
Indonesia’s SMEs are owned by women. And even though
businesses run by women and men should in theory contribute
equally to economic growth, the reality is that women face
many more constraints in starting and growing their
businesses, including obtaining business finance. This study
intends to inform the government, private and state-owned
banks, and the international community about the constraints
faced by small businesses, particularly those owned by
women. Additionally, the objective is to establish a
business case for banks to help them realize the growth
opportunity and contribute to their profitability by
servicing this sector. It is clear from this report that
significant reform will be necessary to improve both the
business enabling environment for women and more
importantly, to increase their access to finance. This book
is arranged as follows : Following introduction, Chapter 2
provides an overview of the SME sector and summarizes the
key findings about the enabling environment. Chapter 3
discusses access to finance, and the supply and demand of
bank loans for SMEs and women-owned SMEs, Chapter 4 focuses
on specific challenges, patterns of access, usage and demand
for financial services by women-owned SMEs. Chapter 5
provides recommendations for the government, Bank Indonesia
and banks in general, and Chapter 6 draws conclusions. |
|---|