Discussion with MSMEs and reps from financial institutions

• 25% of entrepreneurs in MSME sector are women in Sri Lanka. 
• 32% of women are in labour force.
• 95% is female literacy rate.
• 23.7% of women account for enterprise-based apprenticeship training.
• 9% is unemployment rate of women; it is twice that of men.
• 6.8 hours women spend on unpaid housework and care work per day. 
• 16% of all privately owned land is owned by women.
• 20.4% ever partnered women have encountered physical and/or sexual violence by an intimate partner in their lifetime. 

Inequitable access to finance is a major barrier for women-led micro, small and medium enterprises (MSMEs) in Sri Lanka. 

Chrysalis together with the United Nations Development Programme (UNDP) and other key stakeholders from the government, private sector, banking and finance sector, civil society organisations (CSOs), academia and women engaged in the MSME sector from across the country, embarked on a mission to set up and sustain a coalition dedicated to implementing a holistic ‘system change’ approach to understand and take action on what it takes to transform the lives of women in the sector, their communities and the country as a whole.

‘Women mean Business: A Coalition for Action’ was launched on May 30, 2024, in Colombo. 

Only 25 percent of entrepreneurs in the MSME sector are women in Sri Lanka. Only 32 percent of women are in the labour force while the female literacy rate is 95 percent. 

Only 23.7 percent of women account for enterprise-based apprenticeship-training. The unemployment rate of women (9 percent) is twice that of men but women spend 6.8 hours on unpaid housework and care work per day.  
Only 16 percent of all privately owned land is owned by women. 20.4 percent ever partnered women have encountered physical and/or sexual violence by an intimate partner in their lifetime. 

Despite these challenges that have existed for many years, there is no cohesive ecosystem to address the root causes that perpetuate discrimination against women. Many entities have been working on these same issues, for many years, often not in partnership, sometimes even in competition. 

And while the various initiatives have resulted in positive change, it has sadly not shifted the discriminatory system that continues to marginalise women. A system that is implicated by multiple risks, including those induced by climate change.  

If the system is to transform, then no one entity can do it alone. It takes commitment, political will, leadership, accountability, expertise, experience and resources to shift it. 

Women mean Business: A Coalition for Action will strive to bring in a system that works for women, which is also resilient and can withstand and recover from external risks, including climate-induced risks. It is important that women in the MSME sector be in the driving seat of this journey leading that change.

The whole system cannot be tackled at once. It must be transformed piece by piece. The elements in the system that prevent equitable access to finance by women in the MSME sector must be addressed urgently, as it is a deciding factor for starting and growing a business. 

Dismantling the inequitable parts of this system will create a domino effect and women will be able to sustain their businesses, protect their investments and directly contribute towards long-term prosperity. 

The coalition comprising entrepreneur networks, manufacturing organisations, business development service providers, trade unions, relevant ministries, the Central Bank of Sri Lanka, financial institutions (banks and non-banks), CSOs/NGOs, development partners, research and academia, policymakers, media, IT/digital infrastructure support institutions,  caucuses steering committees and other coalitions, will collectively seek practical, strategic and sustainable solutions for women to access finance to thrive and be recognised for their contribution to building an inclusive economy. 

The launch brought together women entrepreneurs from the Northern, Uva, Central and Western provinces from diverse intersecting identities on their experience and views on accessing financial products and services. There were insights into how financial institutions operate in facilitating financial products and services for MSMEs and the roadblocks in ensuring seamless access to finance. 

The dialogue also explored avenues to ascertain and contribute to the mission towards co-creating an inclusive and equitable system that enables access to finance. 

The launch of Women mean Business: A Coalition for Action also showcased the findings of the three-day residential workshop earlier this month, which brought 60 diverse potential actors of the winning coalition and perspectives of practitioners and experts who have worked in the sector for many years and who have come together to work collectively towards a common goal. 

The coalition will enable inter-agency and inter-disciplinary coordination and collaboration that defines sustained solutions: create opportunities to challenge the current system that discriminates against women-led MSMEs, especially when accessing financial resources and bring together a network of like-minded organisations committed and willing to foster economic justice for women. 

Women mean Business: A Coalition for Action, marks the beginning of a collective journey to seek strategic, practical and sustained solutions for women to succeed in the MSME sector and be fully recognised for their contribution towards building an inclusive economy in Sri Lanka. 

The UNDP is a strategic and critical partner in the entire process of change, including the Women mean Business Coalition. 

Women Mean Business: A Coalition for Action is supported by the Co-Impact Gender Fund, which respects and values local knowledge, expertise, experience and the need for creating winning coalitions that challenge inequality in all its forms.

Implementing systemic changes 

“Economic independence expands choices for women and it is a key driver of gender equality. While we do that, it is important for us to address the root causes of discrimination experienced by women, not merely based on their gender but also across age, race, religion, marital status, geographic location and income level. 

Establishing this WINNING COALITION is vital to implement systemic changes. The collaboration ensures that women in the MSME sector receive the comprehensive support they need, so that they are at the centre of efforts to improve the ecosystem, for their benefit,” UNDP in Sri Lanka Resident Representative Azusa Kubota 

Promoting inclusive growth 

“At Chrysalis, we understand the complex multitude of challenges women and youth face, which marginalise them on the basis of their gender, age, ethnicity, religion and class. 

Despite such challenges, we believe they are the leaders Sri Lanka requires to fulfil its potential. 

We promote inclusive growth by ensuring people of all genders have the knowledge, skills and capacity, the ability to negotiate relationships that discriminate and the courage to transform norms, values, behaviours and institutional barriers that perpetuate inequality together with our partners from the government, private sector, funders, civil society and academia. 

In this endeavour, we intend to enable full and meaningful participation of women and youth in Sri Lanka’s inclusive growth,” Chrysalis CEO Ashika Gunasena