Opinion of the European Economic and Social Committee on the Promotion of Women's Entrepreneurship in the EUROMED Region
Date: 2007-07-12
Institutions: European Economic and Social Committee
Subjects: European neighbourhood policy, Union for the Mediterranean, entrepreneurship, gender equality, participation of women, woman

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Official Journal of the European Union

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Opinion of the European Economic and Social Committee on the ‘Promotion of Women's Entrepre-
neurship in the EUROMED Region’

(2007/C 256/25)

On 17 January 2007 the European Economic and Social Committee, acting under Rule 29(2) of its Rules of
Procedure, decided to draw up an opinion on Promotion of Women's Entrepreneurship in the EUROMED Region.

The Section for External Relations, which was responsible for preparing the Committee's work on the
subject, adopted its opinion on 14 June 2007. The rapporteur was Ms Attard.

At its 437th plenary session, held on 11-12 July (meeting of 12 July), the European Economic and Social
Committee adopted the following opinion by 130 votes in favour, one against and with four abstentions.

1. Conclusions and recommendations

1.7
The EESC recommends that women are targeted in the
implementation of the Euro-Mediterranean Charter for Enter-
prise (3).

full

commitment of

The EESC welcomes

1.1
the
the
European Union and Mediterranean States to the Euro-Mediter-
ranean Partnership in line with the European Commission's Five
Year Work Programme that particularly supports the proposals
on developing policies
to promote the empowerment of
women. To this end, it suggests that specific funds be allocated
to those Euro-Mediterranean countries which undertake positive
action aiming to effectively improve the
status of
women (1).

legal

The EESC urges that

the review mechanisms of

1.2
the
Conclusions of the first Euro-Mediterranean Ministerial Confer-
ence on ‘Strengthening the Role of Women in Society’ ensure
that
the development of women entrepreneurship is closely
monitored and evaluated, and that measures are taken to
enhance its development.

1.3
The EESC urges that in the European Neighbourhood
Policy (ENP) specific measures and targets to address the promo-
tion of women's entrepreneurship are included in the National
Action Plans.

1.4
The EESC recommends that in the ENP more funds are
allocated to the development of women entrepreneurship and
technical assistance to start-ups for women.

The EESC welcomes the initiatives of DG Enterprise and
1.5
Industry and DG Europe Aid (2) for targeting entrepreneurs in
Europe and the Mediterranean partner countries. It calls on the
Euro-Med partners to take similar measures, targeting the needs
of this region through the Action Plans negotiated with the
Mediterranean partner countries.

the setting up of

The EESC welcomes

1.6
the ad hoc
Committee on Women's Rights within the Euro-Mediterranean
Parliamentary Assembly (EMPA).
It urges the Committee to
propose policies to strengthen current business activities carried
out by women and to promote forward-looking sustainable
initiatives in the face of global competition.

(1) http://ec.europa.eu/comm/external_relations/euromed/barcelona_10/

docs/10th_comm_en.pdf.

(2) http://ec.europa.eu/europeaid/index_en.htm.

Efforts

should be made to ensure that a balanced
1.8
number of
from the
young women and men benefit
Euro-Mediterranean programmes targeting young people, both
in terms of participants as well as leaders.

The EESC welcomes

1.9
the Euro-
Mediterranean Youth Platform in setting up a Euro-Med
network of youth groups working on gender issues (4), as well
as a Euro-Med network for young entrepreneurs (5).

initiative of

the

1.10
The EESC believes that inter-ministerial cooperation, the
involvement of other stakeholders, such as representatives of
financial institutions, implementing agencies, representatives of
business communities, experts and donors in the exchange of
views on priority areas and facilitating the transfer of existing
businesses to women, will produce more effective results in
promoting women's entrepreneurship.

The EESC urges

the strengthening of NGOs and
1.11
field of
socio-professional organisations working in the
promoting economic activities among women through private/
public partnerships.

1.12
The EESC urges the Euro-Med stakeholders to organise
a conference on the theme of women entrepreneurs in the
Euro-Med region to discuss related issues and to make proposals
regarding the contribution of women to global challenges in
this region.

(3) http://ec.europa.eu/enterprise/enterprise_policy/ind_coop_pro-

grammes/med/doc/f1949_en.pdf.

(4) http://www.cesie.org/cms/index.php?option=com_content&task=vie-

w&id=70&Itemid=85.

(5) REX/222 Information Report — Support for young people in the

Mediterranean partner countries, CESE 642/2006.

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1.13
The EESC reaffirms its belief that the promotion of
women's entrepreneurship in the Euro-Mediterranean region
plays a significant role in creating an active and dynamic
economy geared for globalisation.

1.18
The EESC recommends that special attention is given to
the influence of mass media, particularly TV, on entrepreneur-
ship and women.

1.14
The EESC believes that strengthening the entrepre-
neurial environment for women is a pre-requisite in the devel-
opment of market access within the region and with EU coun-
tries.

1.15
The EESC recommends that in addressing future chal-
lenges facing female entrepreneurs, further research is conducted
to identify the specific needs within each country.

1.16
The EESC notes that there is a variety of observatories
including GEM, UNDP, World Bank, looking at entrepreneurship
within the Euro-Med region, but would recommend a Platform
for better communicating the findings to policy makers and for
the collection and dissemination of material to micro, small and
medium enterprises in the Euro-Med region. The Platform could
especially focus on:

a. areas in which female entrepreneurs encounter particular

difficulties,

b. support and development of programmes for women entre-

preneurs,

c. development of mechanisms regarding the legal status of
co-preneurs, assisting spouses and their social protection,

d. action to strengthen the social security and legal status of

women developing their own business.

1.17
mation and Communication Technology:

The Committee recommends that in the field of Infor-

— priority is given to encourage investment in infrastructure

and strategies to improve access to new ICT;

— easier access to ICT facilities and training is given to women
starting their own business to facilitate marketing, bringing
goods to the consumer through the proper channels of
distribution as ICT could also be a vehicle for better
marketing;

— participation of women in policy making, development and
design of ICT is enhanced by establishing dialogue with ICT
companies and other stakeholders to open avenues for coop-
eration and joint action.

The EESC strongly urges the Euro-Med Permanent University
Forum (6) launched in Tampere to give priority to the gender
dimension of its initiatives in particular in the area of entrepre-
neurship.

(6) http://www.medainstitute.fi/?navi=360&lang=2.

2. Recommendations for mechanisms specific to Female

Entrepreneurship in the Euromed region

It

is necessary to introduce

2.1
and
programmes so that women can make a larger contribution to
growth and development. Some of these policies could be set
out in an Action Plan, which has clear time frames and evalua-
tion procedures, and should include:

specific policies

1. Capacity Building mechanisms, and support

schemes,
which encourage women to consider their environments in
which they live and work and how they can actively partici-
pate in developing them through their own abilities. This
could include promoting ways of setting up self help
groups.

2. Investment

into social

infrastructure

and services

to

support women in work and self employment.

3. Defining traditional entrepreneurial activity, SMEs and indi-

vidual self employment.

4. The establishment of an equal footing for male owned and

female owned businesses of all sizes.

5. The creation of an equal legal system permitting women to

sign documents and own property.

6. Training for women who run or own businesses, tailored to
their
could include
mentoring programmes, the establishment of professional
bodies and advice on legal and fiscal matters.

specific needs. Additionally

this

7. Formation of

‘mutual guarantee companies’, economic
bodies whose members are SME owners and who act as
guarantors for banking facilities.

8. The implementation of specific programmes to facilitate the
creation of businesses by migrant women and minority
groups.

9. Information and support mechanisms for the creation of

social enterprises and co-operatives.

10. Cooperation and co-networking with EU counterparts to
identify structures and mechanisms, including best practice,
that have brought added value elsewhere.

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11. Education policies which promote entrepreneurial mindsets
and attitudes from an early age. An entrepreneurial mindset
needs to be conceived as a lifelong learning process that
begins in primary school. This can offer increased flexibility
at different stages of a person's life.

3.5
The education system needs to encourage entrepreneurial
initiatives and risk-taking. The creation of a national education
plan to improve the quality of basic education and to eradicate
in particular disadvantaged and
illiteracy among women,
disabled women, is crucial.

12. The further involvement of women in the decision making
process at all levels, government, local authorities, and the
judiciary.

13. The opening up of public contracts to SMEs and particu-
larly female owned businesses in order to stimulate business
growth.

14. Specific objectives for gender equality in employment poli-
it being
cies, with qualitative and quantitative indicators,
vital
to secure
employment, and for the quality of this employment to be
improved (7).

for more women to be entrepreneurs,

3. Current state and challenges

3.1
It is important that women's rights are not treated as an
isolated issue separate from women's role in economic develop-
ment. Commitment by all social partners to acknowledge the
relationship between human rights, democracy, development
and women's rights is crucial. Eliminating obstacles to women's
empowerment, resulting from traditional, cultural and family
laws should be given priority.

3.2
Addressing the gender gap in education and employment
in the Euro-Med region requires a concerted effort to create an
environment where women can develop their entrepreneurial
activities.

Female illiteracy in the MENA region, although varying
3.3
from one country to another, is still extremely high, on average
42 %, while the average male illiteracy rate is 21 %. However,
the past two decades show a positive trend in equal access to
education that varies from one country to another. In every
country there is a significant difference between the literacy rate
of the female youth population (15-24 years of age) and the
female adult population (24 years and over) (8).

Over the past decade,

3.4
increased job opportunities for
women have been the result of education and training as well as
growth in sectors where demand for female labour is highest,
such as social services, education and health and the services
professions. Only 32 % of females of working age are working
or seeking work outside the home. In traditional social classes,
where girls go to school, they are discouraged to seek employ-
ment.

(7) EESC Opinion on Employability and entrepreneurship — The role of
civil society, the social partners and regional and local bodies from a
gender perspective, rapporteur Pariza Castaños.
(8) The World Bank Central Database (April 2006).

3.6 While the need for education in citizenship matters and
raising awareness of the social, political
legal and economic
rights of women is important, it is also necessary to educate
financiers and other stakeholders to understand the needs of
women in business activities.

Gender bias needs to be considered as a primary issue in
3.7
the socio/political contexts and in the overall development of
economic growth in the region. The particular roles and status
that society imposes on women through the traditional family
law also called Personal Status Code (PSC) discriminates women.
The legal status of women controlling women's participation in
economic, political, social, civic and cultural activities remains
one of the biggest obstacles, although almost 190 countries,
including the Arab region, have ratified the Millennium Declara-
tion (9).

It

is necessary to give visibility and to strengthen
3.8
small traditional business activities run by women. This includes
non-paid activities in family and traditional work. Training and
support should be provided to encourage the development and
modernisation of many crafts and small businesses that can be
transformed into productive paid employment through the crea-
tion of marketable services that will empower them economic-
ally.

they

Therefore

3.9
The contribution of women is largest in the agricultural
sector. In rural areas where a high proportion of women are
illiterate or have no more than a primary education, access to
training resources is very limited (10). They often lack awareness
and self-confidence to improve their own and their families'
programmes,
situation.
integrated
combining personal empowerment, vocational
training and
training in entrepreneurship and basic business skills as well as
support in designing viable business plans, accessing start-up
loans and credits to establish micro-enterprises in their villages.
Training programmes should provide opportunities for rural
women to combine agricultural and non-farm initiatives and
also ensure the support for their non-farm activities of the male
population in the communities.

need

It is important to set up small cooperatives to lend

3.10
support to businesswomen.

(9) Hijab, Nadia, 2001: Laws, Regulations and Practices

impeding
Women's Economic Participation in the Mena Region, shadow report,
submitted to the World Bank, April.

(10) Economic Empowerment of Rural Palestinian Women — MEDA
programme, EuropeAid — January 2006-December 2007 — A joint
Palestinian, Israeli and European Development project.

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3.11
It is also important to strengthen existing women entre-
preneurs to discover new sectors where women can take the
economic initiative in the development of non-traditional busi-
including developing capacity in advertising,
ness activities,
marketing and pricing, and targeting foreign markets.

3.21
Identifying and evaluating national measures relating to
start-ups, information/advice, funding, training, mentoring and
networking is necessary in order to identify and exchange good
practices in north-south and south-south Euro-Med regions.
Monitoring progress in the Euro-Med partner countries needs to
be ongoing to ensure the development of women's full partici-
pation in the economic life of their country.

Creating

developing women's
3.12
economic activities requires a clear understanding of the present
and future socio-economic situation within the different regions.

opportunities

for

3.13
The involvement of all stakeholders is necessary to
eliminate barriers for women and to introduce specific policies
and programmes so that women can make a larger contribution
to growth and development.

3.14
Access to finance is vital. Credit ceilings need to be
raised to encourage micro and small enterprises to expand and
invest in their business. Government and donors could offer
incentives to formal lending institutions to these projects. Policy
makers should always keep in mind the differences between
SMEs and micro enterprises in terms of organisation, finance,
productivity and potential growth.

for

Incentives

3.15
for
enterprise establishment should include greater efficiency of the
micro-credit sector, and commercial banks providing adequate
and realistic conditions for loans.

new business

ventures

and

3.22
Through trans-national programmes in the Euro-Med
region, business women's associations can share experience and
good practice, which is an effective way of developing enterprise
activities and skills.

Franchising can be a useful tool for women's empower-
3.23
ment
It can
through self-employment and small business.
reduce risk when starting a new project as one can build on
proven practice and skills. Improving the performance of busi-
ness resource centres is important also. Capacity building that is
specific to business requirements is needed, which can be devel-
oped by referring to successful practices and programmes in
other countries.

such as

Exploring new areas

3.24
ICT services, R&D,
management of media outlets and the production of innovative
media programmes as well as exploring new niches in the
tourist industry can create new avenues for business activities
for women.

3.16
Organising marketing and promotion exhibitions in the
region and in EU member states can offer possibilities of
export-oriented initiatives in particular in the manufacturing
sector.

3.17
The future of women in the Euro-Mediterranean region
must be seen within the overall economic, political, social and
familial scenario. Without economic growth and improvement
in the rate of employment, women will continue to suffer discri-
mination in an unfair competition with men.

It

3.18
is necessary to introduce specific policies and
programmes so that women can make a larger contribution to
growth and development.

3.19
Strategies targeting women entrepreneurs specifically
can provide opportunities for them to break out of traditional
economic structures and invest more in enterprise.

3.25
ICT contributes to productivity, growth, competitiveness
and jobs. Development of this sector is crucial for the Euro-Med
region to compete globally. In setting up the necessary infra-
it is important to ensure access to all, so that the
structure,
digital divide does not widen, in particular among women and
in sections of the population with high illiteracy rates. The value
added ICT development will enhance both men's and women's
entrepreneurial skills.

The Women's Entrepreneurship Portal (11) of DG Enter-
3.26
prise and Industry of the European Commission can be a useful
tool for the sharing of good practice and networking.

3.27
Formal jobs in the provision of childcare facilities can
be created which will also help women to reconcile family and
work responsibilities.

There is a need for research underpinning all initiatives
3.20
to identify the specific needs of each country, addressing the
strengths and weaknesses of women through segmenting of
different age groups and specialised sectoral studies.

3.28
Support and information services on self-employment
to women ease the pressures of immigration. This can lead to
job creation in both countries of origin and host countries.

(11) http://ec.europa.eu/enterprise/entrepreneurship/craft/craft-women/

womenentr_portal.htm.

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4. The Barcelona Process and the ENP

The European Neighbourhood Policy aims at fostering
4.1
economic integration between the EU and its partners. The
budget allocation for Mediterranean Partners in the ENP for
2007-2013 has increased by 32 % to 12 billion euro. However
it has not given enough attention to the promotion of women's
economic activities.

4.2
During the plenary session of the Euro-Mediterranean
Parliamentary Assembly of the 16-17 March 2007, the EESC
was given the status of permanent observer, with the right to
speak in all meetings of the EMPA. This gives EESC a great
opportunity to promote the strengthening of female economic
activity.

At the First Euro-Mediterranean Ministerial Conference
4.3
in Istanbul,
on ‘Strengthening the Role of Women in Society’
November 2006 (12),
commitment was undertaken to
a
‘promote women's entrepreneurship by improving women's
training and
access to land,
networking
to
tailor products to women's needs in particular by providing
micro-credit’.

finance, markets,
encourage

information,

institutions

financial

and

5. The Euro-Mediterranean Charter for Enterprise

5.1
At the Fifth Euro-Mediterranean Conference in Caserta
(Italy) on 4 October 2004, Industry Ministers approved a work
programme on Industrial Cooperation for 2005-2006. One of
the proposals was to exchange knowledge and experience on
education for entrepreneurship.

for

Industry

launched

Enterprise

As a result,

the European Commission Directorate-
5.2
and
the
General
for Enterprise (13) which was
Euro-Mediterranean Charter
endorsed by nine Mediterranean partners. One of the key princi-
ples is to build an entrepreneurial society in the Euro-Med
region aiming to address both young people and adults through
the education system at all levels in a lifelong learning perspec-
tive. However, it makes no specific reference to address the chal-
lenges faced by female entrepreneurs.

The Charter is an effective tool to improve conditions for
5.3
doing business. However,
the Charter,
promoting entrepreneurship for women was neither a key prin-
ciple nor one of the objectives.

in implementing

5.4 While the Euro-Mediterranean Industrial Cooperation
2007-2008 Work Programme builds on what has been achieved
so far and strengthens measures for more effective implementa-
tion, again it does not specifically target the promotion of
women entrepreneurship.

(12) http://ec.europa.eu/comm/external_relations/euromed/women/docs/

conclusions_1106.pdf.

(13) http://ec.europa.eu/enterprise/enterprise_policy/ind_coop_pro-

grammes/med/doc/f1949_en.pdf.

A number of

5.5
initiatives carried out by the European
Commission can serve as examples of good practice and transfer
of knowledge between European and Mediterranean coun-
tries (14).

6. The role of Civil Society

Organised civil

society plays an important

6.1
role in
empowering women and encouraging their participation and
representation in the public arena, and in promoting women's
business activities.

6.2
Building on a very strong tradition of caring for the
disadvantaged, including among others women with disabilities
and women with little or no access to education and training
facilities, existing resources can be better utilised with the provi-
sion of training in management skills and financing.

Through

private-public

6.3
and
socio-professional organisations can stimulate economic growth
effectively (15). Such partnerships can provide a new extension
of services for income generating activities.

partnerships NGOs

6.4
Other areas in which experienced NGOs and socio-pro-
fessional organisations can work is training and accreditation to
eradicate the gender gap in education.

7. The role of the EESC

The

EESC has

7.1
in
securing the participation of civil society in the implementation
of the Euro-Mediterranean policy regarding the integration of
women in the economic and social life (16).

important

play

role

an

to

The

to the

EESC contributed

7.2
issue of women
and employment through a report that was presented at the
21st meeting of the EU-Turkey Joint Consultative Committee
13-14 July 2006 (17) and will elaborate a report on women and
entrepreneurship for its next meeting in November 2007 in
Turkey.

(14) http://ec.europa.eu/enterprise/entrepreneurship/craft/craft-women/

women-dgentr-active.
http://ec.europa.eu/enterprise/entrepreneurship/craft/craft-women/
database-women.htm.

(15) file://E:\PPP for women entrepreneurship.htm 8.3.2007.
(16) The role of consultative bodies and socio-occupational organisations
in implementing the Association Agreements and in the context of the
European Neighbourhood Policy.

(17) EU-Turkey Joint Consultative Committee.

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7.3
In the Final Declaration of The Euro-Med Summit of
Economic and Social Councils and Similar Institutions held in
Ljubljana, Slovenia on 15-17 November (18), the participants
committed themselves to pressing forward with their initiatives
for the integration of women in the economic and social life, in
particular through the development of female entrepreneurship.

7.4
The EESC also supports the Ministers' recognition of the
importance of fostering the role of civil society and enhancing
its capability through improved interaction with government
and parliament contacts between civil society organisations,
women's organisations, youth, trade union, business and profes-
sional associations and cooperation between national, regional
and local administrations.

7.5
As part of the Barcelona Process, the EU launched a
number of programmes, some of which were aimed directly at
Euro-Med youth. The Committee has submitted an information
for young people in the Mediterranean
report on ‘Support

partner countries’ in which it also addresses the promotion of
entrepreneurship for women (19).

8. Conclusion

economic

8.1
The European Commission should ensure an impact
assessment of the ENP policies, including the MEDA programs
and systematically include gender considerations. The role of
women in entrepreneurship in the Euro-Med region is crucial in
addressing the
challenges of globalisation. The
European Commission's regional program for the MENA region
to promote the role of women in economic life is a positive
step. Measures to ensure consultation with relevant civil society
representatives, including women's NGOs in all phases of the
projects: programming, implementation, evaluation and follow-
up, should be established in order to ensure that the set objec-
tives are achieved.

Brussels, 12 July 2007.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS

(18) http://www.europarl.europa.eu/intcoop/empa/home/final_declara-

(19) Information Report — Support for young people in the Mediterranean

tion_ljubljana_112006_en.pdf.

partner countries.