SEE (Socio-Economic Empowerment) through Procurement: The Case for Women Empowerment

Procurement is more than a mechanism for acquiring goods and services— it is a strategic tool for driving socio-economic development and empowerment. Public procurement, in particular, holds significant potential to promote social inclusion, reduce inequality, and stimulate local economies by directing public funds towards marginalized groups, such as female entrepreneurs. In this context, procurement can become a catalyst for gender equality and economic empowerment, ensuring that women-led businesses can access lucrative opportunities that would otherwise remain elusive.

Despite its potential, female entrepreneurs often remain underrepresented in public procurement markets, facing numerous barriers such as limited access to information, capital, and networks. Several studies have shown that only 1% of public and corporate procurements are executed by women-owned businesses. Addressing these barriers and deliberately creating opportunities for women within procurement processes can transform procurement into a powerful driver of social change. This article explores how public procurement can be leveraged as a tool for socio-economic empowerment, enhancing the participation of female entrepreneurs.

The Power of Procurement in Economic Empowerment

Public procurement typically accounts for a significant portion of most country's GDP—ranging from 10% to 15% in developed economies and up to 20% to 30% in developing nations. This massive expenditure offers governments a strategic lever to shape markets, promote innovation, and influence social outcomes. When designed with social and economic objectives in mind, procurement can:

1. Promote Inclusive Growth: Directing contracts to underrepresented groups, such as women-owned businesses can help distribute wealth more equitably and foster inclusive economic growth. This has been proven time and again.

2. Support Small and Medium Enterprises (SMEs): Women are disproportionately represented in SMEs, and tailored procurement policies can help reduce the barriers these businesses face, such as limited capital and lack of technical capacity.

3. Encourage Sustainable Development: Incorporating gender equality and social inclusion (GESI) principles in procurement can align with broader sustainable development goals (SDGs), particularly SDG 5 on gender equality and SDG 8 on decent work and economic growth.

4. Create Role Models and Leaders: When women are given access to opportunities, they become role models within their communities, inspiring others and breaking stereotypes about the competency of female entrepreneurs.

5. Promote Innovation: Creating an enabling environment for women to participate in procurement can spark innovation in Women-owned Businesses. Through e-procurement participation, women can continue to enhance their digital competencies ensuring they are positioned for competition and the digital economy.

The Gender Gap in Public Procurement

Globally, women-owned businesses are estimated to secure less than 1% of procurement contracts. Several structural and cultural barriers are responsible for these gaps, they include:

?Lack of Access to Information: Women often lack information about available opportunities, bid processes, and eligibility requirements.

?Limited Financial and Technical Capacity: Without adequate capital and technical know-how, many female entrepreneurs cannot meet the stringent requirements often set by procurement agencies.

?Unconscious Bias and Discrimination: Gender stereotypes and biases can result in female entrepreneurs being overlooked or underestimated, even when they meet the necessary qualifications.

?Absence of Support Networks: Male-dominated networks and industries often exclude women, reducing their visibility and opportunities for mentorship and partnership.

Addressing gender-responsive procurement barriers requires deliberate and targeted interventions to level the playing field and ensure that women are not only invited to the table but are also equipped and empowered to compete. To ensure that women entrepreneurs are actively partaking in public procurement governments and organizations can implement several strategies to harness procurement as an instrument of socio-economic empowerment for women. These strategies may include:

1. Affirmative Action for women in procurement

Governments can implement policies that reserve a percentage of public procurement contracts for women-owned businesses. For example, Kenya’s "Access to Government Procurement Opportunities" (AGPO) program reserves 30% of government contracts for women, youth, and persons with disabilities. In Nigeria States such as Lagos and Kaduna have recently signed the Gender Responsive Procurement Policy which set aside about 30% - 35% of the state’s procurement for women and people living with disabilities. Such set-asides create a clear pipeline of opportunities for female entrepreneurs and signal a commitment to inclusive procurement practices.

2. Simplifying Bid Processes

The complexity of procurement procedures can be a significant barrier for smaller, women-led firms. Simplifying application requirements, reducing the need for extensive documentation, and creating clearer guidelines can make it easier for these businesses to participate in public tenders. Procurements set aside for smaller and women-led businesses can enjoy some form of waiver in terms of documentation and application to encourage participation in the processes.

3. Building the Capacity of Female Entrepreneurs

Governments and development partners should invest in training and capacity-building programs that help women acquire the skills needed to compete in procurement markets. This could include training in business planning, financial management, digital competencies, technical skills, and navigating public procurement processes.

4. Increasing Access to Financing

Access to finance is one of the most critical challenges facing female entrepreneurs. Establishing dedicated funding schemes or credit guarantee facilities can help women-owned businesses access the capital needed to fulfil contract requirements. Moreover, timely payments from the procuring entities will go a long way in stabilizing the cash flow and turnover of these businesses.

5. Promoting Supplier Diversity Policies

Encouraging both public and private sector organizations to adopt supplier diversity policies that prioritize contracting with women-owned businesses can create a multiplier effect, expanding the market for female entrepreneurs beyond government contracts.

6. Improving Access to Information

Governments should establish centralized and efficient procurement portals and information platforms that provide up-to-date information on available opportunities, eligibility criteria, and support services. These platforms should be easily accessible and cater to the needs of small and medium-sized enterprises, particularly those run by women.

7. Addressing Cultural and Structural Biases

Initiatives aimed at raising awareness and reducing biases within procurement agencies are essential. This could involve gender-sensitivity training for procurement officers, the establishment of gender help desks and the inclusion of gender experts in procurement planning and evaluation committees.

Best Practices and Case Studies

Several countries have implemented innovative strategies to leverage procurement for female empowerment. Below I highlight three (3):

1. Chile: ChileCompra, the country's e-procurement platform, has been instrumental in promoting gender equality by integrating gender-specific criteria into its procurement policies. Women-owned businesses can register on the platform, receive notifications about relevant tenders, and participate in targeted capacity-building programs.
2. United States: The U.S. Small Business Administration has established the Women-Owned Small Business (WOSB) Federal Contracting Program, which aims to level the playing field for women in federal procurement by setting aside specific contracts for WOSBs in industries where they are underrepresented.
3. South Africa: The country’s Broad-Based Black Economic Empowerment (BBBEE) strategy includes gender as a key component of its supplier diversity framework, encouraging public and private entities to engage women-owned businesses as part of their procurement strategies.

The Way Forward: Sustaining Gender-Inclusive Procurement Reforms

For procurement to be a transformative tool for female entrepreneurs, it must be supported by a comprehensive and sustainable policy framework. This includes:

Institutionalizing Gender-Responsive Procurement Policies: Governments must embed gender equality considerations into the procurement process, from planning to contract award and implementation.

Monitoring and Evaluation: Establishing robust monitoring mechanisms to track these policies as well as the participation and success rates of female entrepreneurs in public procurement can help identify gaps and inform continuous improvement.

Engaging Stakeholders: Successful gender-inclusive procurement requires collaboration among government agencies, development partners, women’s business associations, and civil society organizations. We must build strong partnerships that can enhance advocacy efforts, provide technical support, and ensure the sustainability of reforms.

Public procurement holds immense potential as a tool for socio-economic empowerment, particularly for female entrepreneurs who have historically been excluded from mainstream economic opportunities. By adopting gender-responsive procurement policies and practices, governments can unlock the potential of women-owned businesses, driving inclusive growth and creating a more equitable society. The time has come to move beyond rhetoric and implement concrete measures that empower women through procurement, transforming procurement into a vehicle for achieving gender equality and economic justice.