Wednesday, March 7, 2012

Women and Social Entrepreneurship

“..to be truly empowered, women must develop their power base, advocate for reform, and exert their own leadership to change their operating environment politically, culturally, and economically.” - The Center for International Private Enterprise (CIPE).

The South African saying, ‘You strike a woman, you strike a rock’ comes from the South African liberation struggle, “Wathint’ Abafazi! Wa thint Imbokotho!” has come to be a vision shared by its Southern African counterparts, particularly Zimbabwe.  This year will mark the 32 years of Zimbabwe’s democratic rule.  Zimbabwe became empowered politically and economically during the industrial age, but as the world moved to the information age of technological advancement and knowledge sharing globally, Zimbabwe slowing struggles behind.  In the midst, the struggle of the empowerment of Women to effectively contribute and participate in the economy over the years has moved from a concept of ‘free will’ to an essential need that is required to building sustainable national economic models.  This is as a result of two historical factors: (1) increasing global awareness of economic and social benefit of encouraging women to be more productive and contribute to national development and promoting their own family welfare, Strategic Management Journal, (2008) and (2) Zimbabwe’s Independence in 1980, the goal of the new government was to achieve growth with equity on the basis of socialist principles, World Bank (1991). 

Over the past two decades Zimbabwe has invested in skills development in the form of Entrepreneurship training to equip both men and women to be effective leaders in the market economy.  Hence, as we celebrate International Women’s day on the 8th of March let’s take a snapshot of Women’s role in Zimbabwe’s economy over the last past decades and highlight the characteristics of Entrepreneurs with a social perspective.

Women’s role in Zimbabwe

There are many factors that have contributed to the increasing number of Women Entrepreneurs in Zimbabwe of which I will only highlight three as follows:
  • Average Annual Real Wage Trends – In 1980, the average annual income in Zimbabwe was US$950, and the Zimbabwean dollar was worth more than a United States dollar, according to Guest reports. In 2003, the average income decreased to US$400, and the value of the Zimbabwean dollar was worth 20% of a United Sates penny (cent).  Today the average annual income is approximately US$200, (Salary Survey 2011/2012).  As a result of declining real wage Women have been obliged to take up new income-earning activities to support their families. 
  • Distribution systems in Zimbabwe (Transportation) – As a result of continuous foreign exchange shortage in the country, the transportation system has taken a strain as a result of transport vehicle capacity being unable to reach rural areas and some urban areas thereby cutting off supply to the major centers.   This has shifted the burden to the local residents to become creative in growing and making food to supply to the immediate rural communities such as making bread/buns or growing vegetables and fruits.
  • Agricultural Production and household management – Increasing levels of formal education within agriculture has heightened awareness for women’s capacity to participate in non-traditional roles in agriculture production and household management, largely in the informal sector.

Entrepreneurship with a social perspective
In the early 90s approximately 80% of women in Zimbabwe lived and worked in the rural areas, World Bank report (1991).  Women’s work load, then was increasing as a result of male migration.  The estimate of female literacy in Zimbabwe in 2010 has increased to 89% from 67% in 1982, World Bank (2010).  Earlier research shows that women from the rural areas who mostly work in informal sectors are highly literate.  This shows that in spite of education system’s success, the formal and informal sector has not provided employment opportunities for school leavers at all levels (primary, secondary and tertiary).  The good news though is that given the high literacy rate it would be fairly simple for these women to benefit from training in entrepreneurship, business and management skills training.  However, not all women can be entrepreneurs but most can be encouraged into it. 

So, what is social entrepreneurship? The role of social entrepreneurs has come about as a result of market and government failure to respond to providing the basic needs (water, electricity etc.) and even bank loans at an affordable price/no-interest loans to the low-income consumer.  Whilst an entrepreneur has the ability to identify opportunities in the market; a social entrepreneur has the ability to identify social opportunities in the market.  The social opportunities are characterized by five aspects:  prevalence, relevance, urgency, accessibility, and radicalness, Strategic Entrepreneurship Journal, (2008):

  1. Prevalence – This is how a company responds to the prevalence of the needs in the human society.  For example, approximately, 50% of the world population of 7 billion live below the poverty line, earning less than $2 a day, UN Human Development report, (2011).  Therefore, it is not surprising to see social ventures listed by Schwab Foundation, and Plan Zimbabwe (Plan International) engaged in economic and enterprise development activities. 
  2. Relevance – This speaks to the nature of how the entrepreneur values, skills and resources are compatible with the social opportunity. 
  3. Urgency -‘Urgency is often found in social entrepreneurs’ responses to unpredicted events, such as hurricanes, typhoons, wars, genocide, tidal waves, or brush fires,’ Strategic Entrepreneurship Journal (2008).
  4. Accessibility – a social entrepreneur identifies social opportunities to the social problems where they are unlikely to be met through traditional means provided by the market.  The nature of accessibility is much like the barriers-to-entry concept in strategic management.  However, in seeking social opportunities, it works in the exact opposite way.   This is because high barrier-to-entry serves to protect existing companies in the market from new comers trying to enter and compete in the market, Porter, (1980).  In the context of social entrepreneurship, low barrier-to-entry/low accessibility increases the feasibility of the company.  In essence, this parallels the benefit of a focused-niche strategy, Strategic Entrepreneurship Journal (2008).
  5. Radicalness – Social entrepreneurs establish business models and organizational structures that are unconventional in an effort to respond to social change.  Therefore, often times these firms adopt radical innovations that traditional business models and organizational structures are inflexible to accommodate.  For instance, contemporary Social entrepreneurs like Nobel Peace Prize 2006, Muhammed Yunus, founder and manager of Grameen Bank offer microloans to vulnerable rural women in Bangladesh who otherwise would not currently qualify for a small loan; Bill Drayton, ex McKinsey & Co consultant, the founder of Ashoka, a global non-profit organization (NGO) scours the world looking for social entrepreneurs and invests in them when no one else will.  Jeroo Billimoria is just one example of an Ashoka fellow.  She launched Childline in 1996, India’s first 24-hour emergency telephone service to provide police assistance and healthcare for homeless children. “When she approaches commercial organisations she does not ask for a cheque, to her that is charity. She goes in asking for their expertise and offers her own, thus creating the possibility of forming a partnership for long-term change,” Hartigan (2006). 

The traditional entrepreneurship model has had more of a positive outcome in advanced economies where there governance structure are more mature and the social disparity is not so high.  One is able to measure the favorable impact it has on the social welfare in those economies. That is why, when you look at the economic model of Zimbabwe and its African counterparts; whom it shares a high degree of social disparity and immature governance structure aggravated by an ineffective innovation management system; revisiting the traditional entrepreneurship model to adopt the social entrepreneurs five behavioral attributes becomes essential. Based on budding research findings around social entrepreneurship it becomes essential for Zimbabwe to encourage such a model in private sector development as it will help to bridge the wide gap created by private sector inability to deliver to low-disposal income consumers; and public sectors incapacity to deliver basic needs (clean water, electricity, transport systems etc.) to rural and urban areas.  In addition, women generally possess these attributes at a familial level.  Remember the saying that goes: ‘Give $1,000 to a man, and he will spend it on himself, give $1,000 to a woman and she will spend it on her entire family’ is the model that international funding organization have come to know and recognize the importance of acknowledging women’s economic activity and contribution in a given country.  That is why, logically it makes sense for Women to be the drivers of social entrepreneurship in Zimbabwe and beyond.  We will see a better quality of life for all and look forward to a socio-economically transformed nation. 

Happy International Women’s Day Zimbabwe and to Women around the world!

Copyright @ March 7, 2012.  This article was first published online on Hello Harare magazine on March 7, 2012.  BlogSpot by Tambu Ndoro, Strategist at Hanga Consulting and Principal Director of Ndoro Resources (PVT) Ltd, ©2011.  www.hangaconsulting.com.  Tambu is also a member of Research and Development Committee of SME Association of Zimbabwe ©2011