Study on Generating Employment through Micro and Small Enterprise and Cooperative Development in Lao PDR
2.4 Women Entrepreneurs

2.4 Women Entrepreneurs

Laos has a near equal percentage of males and females, 49 per cent and 51 per cent respectively, in the total population. However the 196 MIH-GTZ survey found a significantly higher percentage of female ownership of micro/small enterprises, 63.3 per cent versus 34.6 per cent. 91,980 female-owned enterprises account for 57 per cent share of the total workforce.

2.4.1 Characteristics of Female-Owned Micro/Small Enterprises

Female entrepreneurs start businesses at an earlier age than males, 36 compared to 41, had more years in business operations, 5.2 compared to 4.6, and predominantly own commercial micro/small enterprises, 66.1 per cent compared to 33.6 per cent for males.

The most common sub-sectors for women's commercial micro/small enterprises are retail, vending, and guesthouse/restaurants. The men's are mostly in wholesaling. In the manufacturing sector, textiles appear to be the exclusive domain of women, 23.6 per cent to only 1.1 per cent for men.

Women are dominant in all value-adding steps in the production of hand-woven textiles: raising silkworms, spinning yarn, dyeing, weaving, designing semi-finished and finished products, tailoring and selling. (Strategic Planning Workshop on Women's Economic Empowerment in the Lao Handicraft Textile Sector, UNIFEM and Lao Handicraft Group, May 2002, Vientiane.) The opposite is true for food processing: 5.5 per cent of micro/small enterprises are owned by women, as against 21.5 per cent owned by men.

Figure 8. Composition by sub-sector of female and male-owned micro/small enterprises

(Source: The results of a National Survey, SMEs in Lao PDR, MIH-GTZ, 1996)

Women's businesses tend to be mainly home-based (62.2 per cent). Only a small percentage engage in mobile/outside-of-home business practices (2.9 per cent to 16.4 per cent for males). Women in Lao society are generally expected to work around the house. When mechanical tools are required, women are less likely to be owners or have an operational role: 95 per cent of women-owned businesses use only hand tools, whereas 48 per cent of men's use power tools.

Figure 9. Characteristics of female and male-owned micro/small enterprises

(Source: The results of a National Survey, SMEs in Lao PDR, MIH-GTZ 1996)

Average sales and value added to products/services (sales minus input costs) micro/small enterprises owned by women were significantly lower than those of owned by men: 1,954,752 Kip per year and 552,211 Kip per year, respectively. The asset value of the female-owned enterprises was not nearly as large as for male-owned, 1,768,346 Kip compared to 3,433,277 Kip per enterprise. Female businesses are mainly in low-end commerce and so require, and own, less capital.

Figure 10. Financial characteristics of female-owned micro/small enterprises

(Source: The results of a National Survey, SMEs in Lao PDR, MIH-GTZ, 1996)

2.4.2 Contribution to Household Income

Approximately 19 per cent of female-owned micro/small enterprises generate the total of the family's income, 22 per cent generate more than half, and 25 per cent generate about half, while 40 per cent generate less than half.

Female-owned enterprises contribute significantly less in economic terms than male-owned enterprises. This suggests the need to boost the economic role of women in households by improving related business practices and providing a more supportive socio-cultural environment.

Figure 11. Contribution to household income of female-owned enterprises

(Source: The results of a National Survey, SMEs in Lao PDR, MIH-GTZ, 1996)

2.4.3 Social and Cultural Conditions

Lao traditional values tend to create clear, if stereotypical, roles for males and females particularly in rural areas where women tend to be less educated than men. The male is the leader of the household, decision-maker, bread winner, and he liaises with outsiders. The female tends to be the passive follower, money-saver, and household care-provider.

Such traditional norms usually influence the way family businesses operate. The woman is more often the accountant taking care of financial matters, while the man is more likely to be the general manager looking after the overall business.

In some cases, this pattern has been adapted as a result of current socio-economic changes: e.g. a wife may run a small business to supplement the inadequate salary of her civil servant husband. The wife then becomes a 'bread winner' as well as being the 'money saver.' However, most major decisions including those relating to the business are still made by the husband.

In the case of a business partnership both wife and husband may share decision-making responsibilities. The wife could be the financial manager, while the husband is the general manager. When the couple has two different businesses such as a construction company and a brick factory, then both husband and wife may be managers. (Reichenbach, Luangkhot, and Phengkhay, Gender Approach to Small Enterprise Development in the Lao PDR.)

In a matrilineal and matri-focal society such as Laos, women may inherit family property including the parents' business. But when a couple marries, the husband typically moves to the wife's house and assumes the leading role within the family.

A matrilineal social organization supports women's relatively autonomous position, but in business affairs decision-making power remains with the men who will also assume the leading role in taking care of parents, which will usually include continuing the parents' business. (Sandbergen and Khamphoui, Women in Rice Fields and Offices: Irrigation in Laos, Vol. 13. 1995.)

2.4 Women Entrepreneurs
Study on Generating Employment through Micro and Small Enterprise and Cooperative Development in Lao PDR

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