ACCESS TO FINANCE for WOMEN ENTREPRENEURS: IMPORTANCE

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ACCESS TO FINANCE for WOMEN ENTREPRENEURS
IMPORTANCE SUCCESSThe IO FURNITURE EXPERIENCE
by Muni Shonibare CEO
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Access to Finance A MAJOR LIMITING FACTOR FOR
WOMEN

• According to IFC
• Women own 48 of all entreprise in Africa
• but they have the hardest time
• gaining access to finance

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• BUT ...
• ACCESS TO FINANCE
• Must be looked at within the context of
• WOMENS EMPOWERMENT and GENDER EQUALITY

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The Usual Suspects

• Cultural and Social Stereotyping Practices
• Status of Women in a Patriarchal Society
• Family Duties Responsibilities
• Aversion to Risk
• Financial Illiteracy
• Poor Formal Negotiating Skills

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• In my experience as a woman entrepreneur there
  are two other key issues which are not always
  given due prominence

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How it should all work together
GDP/ Business Growth Capacity to Scale-Up
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Apprenticeship

• However ... in reality
• For many women entrepreneurs help often comes
  too late ...if it comes at all
• In the meantime, dreams are dying and businesses
  are underperforming

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My Apprenticeship

• Opportunity to join top architectural firm as an
  interior designer
• Identified limitations at level of concepts,
  processes in terms of capacity
• Clash of values/vision
• Dissatisfaction led to establishing Avant Garde
  Ltd with a partner
• First job from father (family business support)
• I did it my way! Full control of procedures
  and processes ...

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Apprenticeship

• CUSTOMER FEEDBACK - Exceptionally well-received
• MARKETING - Reputation spread by word of mouth
  and Jobs flowed in
• NICHE MARKET - individual customers
• BUSINESS - Small outfit doing design only

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Apprenticeship

• EARLY LIFECYCLE OF ENTERPRISE at that stage,
  given the nature of the business as design only
  ...funding was not a major issue or it seemed not
  to be

ACCESS TO FINANCE???
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APPRENTICESHIP

• Set up manufacturing (formerly called interior
  options
• More Control needed over supply-chain, quality,
  design, and delivery times for our products
• Urgent need for BACKWARD INTEGRATION. Quality of
  suppliers products unacceptable

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Up The Learning Curve

• Recruiting
• Training
• Manufacturing
• Funding

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FUNDING

• Started Manufacturing in 1993
• Major challenges
• Funding
• Manpower
• Technical expertise
• Lack of access to finance/business support - a
  major obstacle

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FUNDING

• Sank everything back into business
• Rented premises in the middle of nowhere
• Steep climb up the learning curve
• Parted ways with technical partner

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MAJOR BREAKTHROUGH

• Big job from multinational oil company
• Snowball effect ...Major corporate jobs
• Forced to institutionalise processes
• Scaled up size of operations

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SCALING UP

• SHIFT in PRODUCTS and PROCESSES
• Individuals to Corporations
• Customised to Standard
• Salary-based to Output-based
• compensation compensation

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FUNDING

• Scaling up in 1998
• Major challenges even MORE critical
• Funding
• Manpower
• Technical expertise
• Lack of access to finance/business support - a
  major BARRIER

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SCALING UP

• CRITICAL NEED for Finance Business Support
• Many new challenges
• Establishing operational procedures
• Finding retaining skilled labour
• Sourcing raw materials
• Technical expertise
• Dynamics of managing home and office
• BUT Efficiencies of scale kicked in

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MAJOR TURNING POINT !

• Job to redesign interior of top international
  hotel
• 700 rooms
• Logistical nightmare!
• Exacerbated by regulatory changes in Nigeria /
  ban on importation

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MORE SCALING UP!

• Setting up modern International-standard
  furniture production in Nigeria
• CHALLENGES ... CHALLENGES ... CHALLENGES
• Technical partnership with Italian design outfit

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International Standard Operation

• Courage to build my DREAM SHOWROOM
• Art furniture in an environment that expresses
  well-being
• Helping people create magic in their own space
• The Ethniki dimension

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ACCESS TO FINANCE

• SOME KEY CHALLENGES
• Must be coupled with Business Support
• Must come at the right time
• Women must be involved in policy formulation
  trade negotiations
• Need to build womens capacity to access markets
  and develop products
• Create enabling environment for women to scale up
  their businesses participate in global markets

Pila Modjadji of the Pankop Women Farmers Forum
in South Africa
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FOR WOMENIt is Not Business as Usual!

• We are NOT WAITING
• We are MOVING
• We mean BUSINESS!
• Pila Modjadji
• Pankop Women Farmers Forum in South Africa