Women - SME Finance

Women - SME Finance

Women, Business and the Law – SME Finance

Women – SME Finance Categorized Indicators (WSCI)

 The WSCI identify and categorize Women Business and the Law 2018 indicators of relevance to SME finance. It is a first step to systematically aggregate and collate gender data to understand the factors, monitor trends and progress.

The Women Business and the Law dataset is the most comprehensive Gender Data set covering 189 economies. Systematic trend analysis can facilitate measurement of progress and gaps over time with the ease of updates.

SME Finance Forum - Women Business and the Law (WBL)

Women-SME Finance Categorized Indicators (WSCI)

The SME Finance categorized Indicators, identify and categorize Women Business and the Law 2018 questions of relevance for SME finance. It is a first step to systematically aggregate and collate gender data to understand the factors, monitor trends and progress.

Women entrepreneurs make significant contributions to their economies. The 2017 MSME Finance GAP indicates women-owned businesses comprise 28% of business establishments and account for 32% of the MSME finance gap estimated at 1.7 trillion.

Across regions, women entrepreneurs have lower access to finance than their male counterparts, and the terms of borrowing can often be less favorable. This restricts the growth of women-owned businesses and inhibits their ability to contribute fully to the economy.

Collecting and analyzing gender disaggregated data is a first step to incorporating a gender perspective into the development of appropriate financial services for women.

The Women Business and the Law 2018 examines laws and regulations affecting women’s prospects as entrepreneurs and employees across 189 economies. The report draws on readily comparable data across seven indicators: accessing institutions, using property, getting a job, providing incentives to work, building credit, going to court and protecting women from violence.

The Women Business and the Law data set is the most comprehensive Gender Data set that covers 189 economies and the systematic trend analysis can facilitate measurement of progress and gaps over time with the ease of updates. As stakeholders realize the usefulness we can explore opportunities to move this and the entire SME Gender data agenda to the next level.

This data set identified 37 questions across five broad categories, (Access to Business Institutions, Building Credit, Property Rights and Asset Accumulation, Labor Market Restrictions, Social Support for Female Labor Force participation) were selected and weighted as detailed in the methodology section below:

 

What do Women-SME Finance Categorized Indicators (WSCI) mean?

The Women-SME Finance Categorized Indicators (WSCI) measure to what extent the legal and regulatory environment in a country enables women to do business. This dataset is relevant to SME Finance in the Women, Business and the Law data from various aspects, and aims to provide a better view of what improvements are called for to help women access finance.

 

How were the WSCI calculated?

  1. Identify and categorize WBL questions of particular relevance for SME Finance.

Among the 167 questions in WBL data, 37 questions were identified as indicators relevant to SME finance. The selected questions (indicators) fall into 5 broad categories: Access to Business Institutions, Building Credit, Property Rights and Asset Accumulation, Labor Market Restrictions and Social Support for Working Mothers.

  1. Assign weights to each of the categories and questions based on its relevance to women & SME Finance, then apply the weights to the question values to get to a final score.

Most questions (indicators) being selected have binary responses and the responses can be easily recognized as “good” or “bad” for women and SME Finance. The WSCI is the weighted sum number of all questions (indicators) with “good” as a response.

 

where i is the indicator multiplier (0 for “bad” and 1 for “good”), and w is the weight assigned to that question(indicator).

 

What was the data source used?

This version of results is based on Women, Business and the Law data 2018.

http://pubdocs.worldbank.org/en/869191522241162608/WBL-RAW-DATA-2010-2018-29-March-2018.xlsx

 

What were the limitations of this exercise?

  1. The method of assigning weights to each category and question (indicator) is based on the working group’s assessments, a few question responses were decided by the combined responses of several other questions. Therefore, it is limited by the group’s experience and subjectivity.
  2. Most selected questions (indicators) have binary responses, however the judgement of “good” or “bad” is still a simplification of the possible complex situations they represent behind the original WBL questions.

 

 

 

 

Annex: List of Women, Business and the Law Questions Selected

Dimension

Indicator

Access to Business Institutions

Can an unmarried woman sign a contract in the same way as an unmarried man?

Can a married woman sign a contract in the same way as a married man?

Can an unmarried woman register a business in the same way as an unmarried man?

Can a married woman register a business in the same way as a married man?

Can an unmarried woman open a bank account in the same way as an unmarried man?

Can a married woman open a bank account in the same way as a married man?

Can an unmarried woman travel outside her home in the same way as an unmarried man?

Can a married woman travel outside her home in the same way as a married man?

Can an unmarried woman apply for a passport in the same way as an unmarried man?

Can a married woman apply for a passport in the same way as a married man?

Is there a small claims court/fast-track procedure in this country?

Building Credit

Does the law prohibit discrimination by creditors on the basis of gender in access to credit?

Does the law prohibit discrimination by creditors on the basis of marital status in access to credit?

Do retailers provide information to private credit bureaus or public credit registries?

Do utility companies provide information to private credit bureaus or public credit registries?

Do microfinance institutions provide information to private credit bureaus or public credit registries

Minimum Loan Amount in private credit bureau (as % of Income.)

Property Rights and Asset Accumulation

Are there full/partial regimes for women in marital property?

Is spousal consent required for major transactions?

Does the law provide for valuation of non-monetary contributions?

Do unmarried men and unmarried women have equal ownership rights to property?

Do married men and married women have equal ownership rights to property?

Do sons and daughters have equal rights to inherit assets from their parents?

Do female and male surviving spouses have equal rights to inherit assets?

Labor Market Restrictions

Can an unmarried woman get a job or pursue a trade or profession in the same way as an unmarried man?

Can a married woman get a job or pursue a trade or profession in the same way as a married man?

Does the law mandate equal remuneration for work of equal value?

Does the law mandate nondiscrimination based on gender in hiring?

Is it prohibited for prospective employers to ask about family status?

Can nonpregnant and nonnursing women do the same jobs as men?

Social Support for Working Mothers

Does the government support or provide childcare services?

Does the government provide free and compulsory primary education?

Is dismissal of pregnant workers prohibited?

Are mothers guaranteed an equivalent position after maternity leave?

Does the government provide a child allowance to parents?

Does the law mandate paid or unpaid parental leave?

Are employers required to provide break time for nursing mothers?