BY ABEBE WOLDEGIORGIS
Though it is believed that the number of women is more than half of the population and part of the society, the role of women in the aspect of the economy and social affairs of the society is insignificant. They are also marginalized from obtaining the outcome of economic growth as compared to men.
Be it in Ethiopia or in other developing and developed countries the contribution of women to the economy is immense. However, in Ethiopia women competency particularly in businesses as compared to men it is negligible.
Recently, the Ethiopian Economic Association with the cooperation of the US based Savar College, the Abu-Dhabi based New York University and the Addis Ababa University Development Study College organized Symposium focused on narrowing the gap on gender inequality.
On the occasion, study papers were presented and among others a study was conducted on the women situation in the international level which is supported financially by Melinda Gates a non-governmental organization can be mentioned.
Adem Feto (PhD) is a researcher in the Ethiopian Economic Association. He presented study paper with regard to the imbalance of profitability of gender equality— whether female owned businesses have advantageous position or not in gaining profit particularly in Ethiopia.
The World Bank study focused on living standard measurement conducted on 1735 female and male owned businesses in 2018. The gender sample was taken in equal number base. As to Adem, women have the capacity to lift the family out of poverty. However, due to their limited role in the Ethiopian economy, the nation annually loses from three to four billion dollars. He further said that in Ethiopia the women status in owning business enterprises is at its infancy level and as compared to their potential it is in the lowest level.
As compared to males with regard to business ownership, and decision making; there is huge gap and disproportional. As a result, the nation will lose substantial amount of income due to gender imbalance. Some of the constraining factors not to uplift women from poverty engaged in small scale business are lack of access to finance and the absence of protection to their skills and wealth. As to the study, females and males have no equal participation in business and decision making. The situation has its own impact on the nation’s Gross Domestic Production (GDP).
During the study, the women’s age, the family status and other factors which have impact on their livelihood were considered. The study also covers whether women sell their products in the market or in their production places, whether the business have license or not. Others the obstacles they faced have an impact or not are regarded. In addition, gender inequality further exacerbates the situation.
As to the study, many businesses owned by females are not licensed, they engaged in informal sector and more wealth is controlled by men. It further indicates that due to lack of sufficient knowledge and financial status, getting loan from banks is in the bottom level. More women engaged in small scale business as compared to men and they do not have courage to engage in large scale business to avoid risk. Enterprises owned by women obtain very little profit, employ a few numbers of people and create job for temporary. Shortage of capital, lack of knowledge and skill and indecisiveness attributed to their fragility.
In addition to these, spending their time for the household purpose brought its own negative impact on productivity and profitability. Women also have less opportunity to obtain job in the enterprises owned by men. Moreover, in the places where they get employment they will be ill-treated. It is also proved that enterprises run by women are less efficient in gaining profit, sells, knowledge and skill transfer.
Even though government officials and other stakeholders pledge on many platforms to provide the necessary support to women to uplift their living status, nothing is changed till now. Rather, their situation is deteriorating from time to time.
Gender imbalance in various economic sectors inhibited women not to unleash their potential in this regard. As to Adem, in the last three decades, the government in order to obtain women attention enshrined women rights in the constitution and introduced in other rules and regulations. Efforts are also exerted towards women to get access to finance and affirmative actions are also taken but still gender inequality is prevailed in the country.
The study also acknowledged that the value of human resource, land and capital in creating wealth. It is also emphasized the essentiality of wealth to have good social status but in all criterion women are in the disadvantageous position. For instance, it is proved that women have weak connection to create network to obtain market. In addition, they have weak capacity in adopting technology.
It is undeniable fact that women contribute a great deal to Gross Domestic Production and play pivotal role for garnering hard currency. Nevertheless, most enterprises run by women are informal and small scale with the hand to mouth capital. In the share companies women’s share is very small and obtains very small dividend and benefit less as compared to their male counterparts.
As to the study, most of the women are forced to take loan from other sources for their initial capital before they start business. In addition to these, enterprises owned by women have high probability to face bankruptcy . Many women owned enterprises conduct their business at home. As a result, they fail to get access to market. Due to this, earning more money to sustain their business will be under question and ultimately they will give up their business.
According to Adem, unless full implementation of laws and regulations as well as policy frameworks enacted and introduced with regard to women and the following up tasks put in place, attaining gender equality will not be more than day dreaming. According to the researcher, in the future, any technology endeavor should not neglect women. On the other hand, while scrutinizing projects, donors also should make sure that whether the projects they support prioritize the women affairs or not. The credit which is given to women must be with low interest and its paying back should be in longer period.
In addition, promoting women’s literacy with regard to financial management and to that end providing training is vital. As it is known, most women led small scale enterprises are located in rural parts of the country which are far from the place where education is availed. Therefore, paying attention to rural areas is vital. As to the study, the gender imbalance prevailed in Ethiopia incurred the nation to lose 15% of the Gross Domestic Product. In addition to these, the high unemployment rate of women, and absence of implementation of family planning aggravate the situation.
As everyone can recall, in the last three decades the government has been trying its level best to empower women via various means. Among others are expanding educational institutions aiming to increasing girls’ enrolment; and uplifting the number of girls who join higher educational institution which in turn resulted in increased amount of graduated women getting employment.
The increment of elected women in the legislative branch of government and the increasing of the appointment of women in higher government offices can be mentioned as positive outcomes of the government’s effort. Moreover, organizing women to engage in small and medium size enterprises can be cited. However, as mentioned earlier, compared to their male counterpart, huge work is ahead of us. Therefore, creating favorable situation to women to uplift their living situation is essential.
THE ETHIOPIAN HERALD THURSDAY 20 APRIL 2023
