It's Your Initiative Not Mine.

There are some people who take their positions and responsibility seriously and the motivation is to fulfill the requirements of the role. And there are some whose motivation is to get a paycheck and shuffle papers and look forward to having lunch and the work day coming to an end.

These are people who should not be in charge of any initiative to assist anyone or implement change. 

I just got a threatening phone call at home at night, from the head of a local division of a Multinational Development Bank ( MDB). After being denied funding from investors because my idea was not what’s considered innovative and disruptive. I turned to alternate sources that implement initiatives on a larger scale to help female entrepreneurs start businesses, through MDBs.

I was referred to a local bank that had no connection with an initiative to help female entrepreneurs. Everyone knows it is extremely difficult to receive startup help or loans from a bank, for any business especially a female startup. Unless, this bank has financial support and programs in place to help female entrepreneurs and to guard against what they perceive as risks, such as risk insurance or risk guarantees. These would encourage banks or investors to be more willing to loan to female entrepreneurs.

So after being denied by the local bank, which was not unexpected. I sent an email to the MDB outl?n?ng 5 reasons I was denied and asked that they implement measures and programs that would help to encourage banks to loan to female startup or female SMEs at any stage. I felt I had a right to voice my opinion in hopes that real change and progress will be made.

Instead, I received a phone call from a woman nonetheless, at 8:30 PM, stating she is the local head of the program for female SMEs and ask me not to send any more email or I will be blocked, because she is receiving emails from her boss about my concerns. Also that by referring me to a local bank ( which had no agreement with them, by the way ) they did all they could to help me and have no control over what the bank does.

... Thanks for calling but

My response was- if this is the response you will give to my email then you have no business being in your position. Instead, you should have taken these points to do a proper job and make sure the women who need help are getting the help they need. I then thanked her for calling me at home so late in the night, which was thoroughly inappropriate and then I hang up the phone. 

I understand I may never realize my dream of starting my company. However, it is a fact women are facing difficulties in receiving financing for their business no matter what stage. If there is an initiative created to help women, then there should be programs in place and now evidently, there should be people in place capable and willing to make sure the initiative is successful.

You see these MDBs can only give financial support through partner banks or co-invest with private or public sectors to help women entrepreneurs establishing SMEs, they do not loan or offer financial support directly.

So after trying and failing so many times, I had to voice my concerns So I sent an email with the list of barriers I faced, in hopes something effective could be done. I am certain I may never receive the funding I seek for so many reasons, being a minority and a foreigner in another country, my sector or business idea. However, it is already a difficult task for a woman to start a business and receive capital. Any initiative that was created for the purpose to help, should make sure everything is done to ensure the purpose of the initiative is realized fully and successfully.

Here are the points I listed in my email.

1.  Risk - it is widely understood that many banks and entrepreneurs consider women founded and lead businesses to be a higher risk than their male counterparts.

2.  Amount - many investors and banks are not willing to invest in nor loan to women entrepreneurs. However, if they do it will be for a very low amount that is insufficient to operate the business. In my case, the bank would be only willing to loan 10,000 Lira. This could not have covered the rental for an office space for three months.

3.  Need past history – Most women entrepreneurs are seeking capital to start and therefore have not started or have been in business for a year to provide past history since they have not started. This is a policy that is counterproductive and has been one of the very reasons women cannot receive the capital they need.

4.  Sector - Most investors and banks, currently are focusing on technology, climate, and innovative ideas. Many women startup are not technology based or tackling global climate issues or innovative enough by some standards, instead, our business tackle social issues and common consumption needs. These women-owned and lead companies offer more employment opportunities to a larger section of the population that a tech, climate or very " innovative" idea or tech platform. 

5. Collateral - If women entrepreneurs could provide collateral, perhaps they would not need funding. It is a fact most women cannot provide collateral to cover the loans they need. Therefore, it is extremely important guarantees should be one of the programs in place to assist banks and investors to be willing to lend or assist women entrepreneurs to start or to receive capital for an existing business

Therefore: 

I urge you to consider priority the proposals from the MDBs that do not allow the banks or investors to impose policies mentioned that are counterproductive to what the We-Fi initiative is trying to achieve.

I urge you to carve out, funding that will be allocated to start-up companies by women in any sector.  

I urge you to emphasize insurance that will cover the banks and investors against what they perceive to be risks. So that “Risk” is not the primary factor why women are being refused loans.

I urge you also to make the amount available above $10,000 and that it should cover, at minimum the business capital requirement, according to the business plan.

X, in particular, is a country where there is no effective program and support for women entrepreneurs and startups and there are many barriers to overcome, as outlined. 

Please consider setting clear and proactive procedures that banks must follow. The funding should not be left up to the banks and investors alone to decide. Women, if allowed, can contribute significantly to a country's economic development.

Women are committed to prepaying their loans and to making their business successful and it is entirely not fair to use the five points outline to prevent women from starting their business.

I am entirely disappointed by the MDBs commitment to helping women entrepreneurs and believe more should be done to ensure their Partners are helping both women startups and women-owned business that is already operating. By more, I refer to putting in place measures that will overcome the barriers that the Partners, both banks, and investors or any intermediary will and have used in the past to deny women entrepreneurs access to needed capital.

end of email.