Entrepreneurship Policies through a Gender Lens

Palestinian Authority

By Grace Khoury, Birzeit University

Background

The Palestinian economy is characterised by a difficult and volatile context, especially given regular instability, fragmented markets and high dependence on donor support. As a result of the 1993 Oslo Agreement, the Palestinian Authority was granted competence over the enterprise development agenda, such as SME policy, innovation, access to finance and capacity building with limitations regarding trade and territorial development (OECD, 2018).

Most entrepreneurship programmes are implemented by civil society, not-for-profit and non-governmental organisations (NGOs) funded by foreign governments and international donor agencies. To date, entrepreneurship programmes, which include business incubators, accelerators and business development services, have had minimal impact and have not met Palestinians’ expectations. This is due, in part, to a lack of an SME and entrepreneurship policy. The development agenda is framed by a number of policy documents such as the National Policy Agenda 2017-2022, which includes a series of priorities and objectives in terms of creating job opportunities, improving the business environment and promoting Palestinian industry. However, there are no formal co-ordination mechanisms and there is no SME and entrepreneurship strategy yet developed, although there have been discussions on this issue by the Ministry of National Economy and the Palestinian Federation of Industries (OECD, 2018). Donor agencies fund similar programmes, with very limited coordination among stakeholder groups, creating redundant efforts in the area of entrepreneurship. Capacity building, access to finance, access to markets, networks and other initiatives are replicated by governmental agencies, donor countries, private organisations and NGOs rather than uniting in a clear vision to promote entrepreneurship in general and women’s entrepreneurship in particular (Khoury, Farraj and Sultan, 2018).

Women account for half of the five million citizens (PCBS, 2018a), with a literacy rate of 95.6% (PCBS, 2018b). In 2018, unemployment rates were 30.2% overall; 49.1% in Gaza and 18.3% in the West Bank. Moreover, the labour force participation rate of women was less than 20%. The level of women’s entrepreneurial activity is also low at 3.4% (Abdullah and Hattawy, 2014). In light of these indicators, a policy to create new jobs and to empower and promote the underlying entrepreneurial potential of women as a basis for economic growth is essential.

In 2018, the Ministry of National Economy of the Palestinian Authority responded to calls for gender-responsive policies by developing a strategy and policy framework for women’s entrepreneurship. This policy has not yet been approved by the Cabinet. Once approved and effectively implemented, it is expected to end redundant and random efforts, which have not contributed effectively to entrepreneurship overall or to women’s entrepreneurship specifically in recent years.

Policy issue: Entrepreneurship networks and mentoring

The OECD/EU (2017) states that networks assist women in gaining greater social and economic power. This, in turn, assists in greater accessibility to information, resources and referral to networking opportunities. However, Palestinian women entrepreneurs face additional cultural barriers compared to men when trying to engage in networking opportunities, particularly informal gatherings (Muna and Khoury, 2012). Although there has been progress in recent years, it is still more difficult for women to engage in networking and maximise relationship opportunities. Overall, entrepreneurship networks of women entrepreneurs are less effective than those of men because they are smaller and less diverse (OCED/EU, 2017). In addition to these constraints, Palestinian women also have to overcome the social mores of Arab societies. For example, it is deemed more socially acceptable for men to meet in venues such as cafes to discuss business than it is for women (Muna and Khoury, 2012). These social norms also impose constraints on women working at night or leaving children in nurseries. Moreover, it is very easy for business meetings to be misinterpreted, especially those involving men. These misinterpretations influence perceived reputations which exacerbate criticism of women engaged in such activities.

It is also reported that Palestinian women face challenges with respect to access to finance, as they are often denied finance or require complex guarantees and securities if they wish to gain access to venture capital. Additionally, both men and women face challenges imposed by the political and regulatory environment, which influences their ability to access markets and international payments for their products (McNally and Khoury, 2018). While formalised networks are scarce, they are deemed to be one of the more important support systems by which women entrepreneurs can grow and expand their business.

International case studies show that mentoring programmes are essential for women entrepreneurs (for example: Hot Mommas Project stories, classes and group coaching, and The Cherie Blair Foundation’s training and mentoring). Nevertheless, it is more difficult for mentoring programmes to be developed in Arab countries, where social mores preclude the use of men mentors, since women entrepreneurs (and mentors) are still in a minority. Thus, women’s ability to obtain expert advice in accessing finance, business service providers and women role models is constrained. A good example in the Palestinian Authority is the task force led by the Business Women Forum (BWF) which provided networking opportunities and managed to cooperate with multi-stakeholder groups to facilitate new business registry, capacity building, marketing and access to finance for women entrepreneurs.

Conclusions and recommendations

Women’s entrepreneurship support requires more than a policy intervention statement. There is a requirement for firmer policy directions and a formalised strategy. The establishment and adoption of a sound SME policy ensuring gender-related provisions that assist women to overcome the challenges they face is essential. The successful role that women’s networking organisations have in supporting new ventures cannot be ignored. Development of these networks is imperative if women’s entrepreneurship is to further develop and thrive.

The use of internet-based resources to develop a women’s entrepreneurship network through a dedicated website would help overcome the constraints imposed by the geographic separation of the Gaza and the West Bank. There are examples of such initiatives found elsewhere. However, it is important that such a network is developed and maintained by women based in the Palestinian Territory to ensure that it meets their needs.

This framework can support the development of mentorship programmes, whether they are one-to-one or group-based. The use of web-based technology will assist in meeting the challenges imposed by social norms and geographic separation. This could include the matching of mentors and mentees, and include more women mentors to overcome social restrictions. There is also the potential to develop case studies which would serve to provide role models for aspiring women entrepreneurs.

Recommendations for the Palestinian Authority

• Adopt a sound entrepreneurship policy with gender-related provisions, and designate an official SME agency in charge of the implementation and coordination of the many initiatives already in place.

• Involve women business associations in the initiation of a national networking platform with a dedicated website that provides information and support for women to start and maintain their businesses.

• Introduce one-to-one or group mentorship programmes through the national networking platform to match successful mentors and mentees.

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