Issues: Although the inequality between men and women in terms of bank account ownership is narrow in some economies, the proportion of women with a bank account or other financial institution remains below 50% in certain APEC economies (APEC, 2020a). Moreover, less than half of the APEC economies have laws that prohibit credit access discrimination based on gender inequality (Crisologo & Kuriyama, 2021). Women-owned micro, small, and medium enterprises (MSMEs) often find themselves grappling with a range of obstacles when it comes to securing adequate financial support. This is primarily from the tendency of banks to prioritize larger businesses. Moreover, an evident disparity exists in the allocation of time between men and women, further exacerbating the challenges faced by them. This discrepancy in time allocation only serves to compound the existing obstacles faced by women entrepreneurs, making it even more arduous for them to overcome financial barriers. Adding to that situation, there is a notable lack of accessible legal services and training opportunities for women in business. However, access to assets is crucial for women's economic security, financial autonomy, and can provide them economic opportunities (APEC, 2020a).
APEC recognizes that unleashing the full potential of women entrepreneurs is critical for the prosperity and growth of all member economies (APEC, 2020b). Nevertheless, the limited access to financial services for women-led and -owned MSMEs remains a significant challenge across APEC economies, hindering their growth potential. To address this issue, APEC economies have implemented good practices and policies, such as products targeting women and inclusive structural reforms aimed at empowering women economically. The data compilation of research and symposium discussions will provide an opportunity to tackle the current challenge of women's financial access in APEC. This challenge arises from women discrimination, insufficient information mechanisms covering microcredit and retail loans, and the absence of tailored financial products. Moreover, structural barriers limit women's decision-making power and access to information, among others. The situation is further exacerbated by the economic impact of the COVID-19 pandemic, resulting in the closure of numerous MSMEs, with women-led MSMEs being particularly affected due to their smaller size and higher likelihood of informality (Jones-Renaud et. al, 2020).
In light of these challenges, this project aims to address them by conducting a systematic study of successful experiences related to barriers in accessing financial services and identifying good practices in APEC economies. Based on the findings, a research paper will be developed to facilitate discussions during the symposium and aid in formulating recommendations. These recommendations are expected to contribute to increased access to credit for women-led micro, small, and medium-sized enterprises, along with access to credit with reduced risks or larger amounts.
Eligibility and Fund Priorities: This project fulfils the eligibility criteria of the Women and the Economy Sub-fund by focusing on the five pillars of the PPWE. These pillars include: a) Access to capital; b) Access to markets; c) Skills, capacity building, and health; d) Women's leadership and agency; and e) Innovation and technology. Moreover, the project aligns with the sub-fund's criteria for capacity building activities that benefit APEC developing economies. The project takes an evidence-based approach by identifying best practices in the region and utilizing data from reliable sources such as the Women and the Economy Dashboard. This ensures that the project's implementation is data-driven and well-informed. Lastly, by addressing the challenges women encounter in accessing financial services and products, the project supports the PPWE's priority of enhancing women's economic participation. In this sense, by promoting equal access to financial opportunities, the project strives to create a more inclusive and empowering environment for women in the economies.
Capacity Building: This project has the objective of enhancing the capacity of APEC member economies by increasing their awareness of the barriers that hinder women's financial access in the region. It also aims to highlight best practices for addressing these barriers. By examining successful experiences and engaging diverse stakeholders, the project will identify opportunities to develop and implement financial products and services specifically tailored to meet women's needs. The ultimate goal of the project is to reduce economic disparities among APEC economies and improve the economic and social well-being of women in the region.
This objective aligns with APEC's broader goals of fostering sustainable growth and equitable development, as well as reducing economic disparities. The project is driven by the pressing need within APEC member economies to improve women's access to credit and is intended to have tangible impacts on individuals and institutions. In terms of its approach, the project is designed to be cost-effective and results-based, with clear and measurable performance indicators. Evaluation mechanisms will be put in place to assess the project's impact and effectiveness. This ensures that the project remains focused on achieving its desired outcomes and delivering tangible benefits.