Archive for the 'Finance' Category

Unlocking the Full Potential of Women- led SMEs in Indonesia

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In a recent East Asia Forum article, “Unleashing the capabilities of women-led SMEs in Indonesia,” author Naimah Talib reports that 43 percent of the 26 million small-to-medium enterprises (SMEs) in Indonesia are women led or women owned (WSMEs). Not only do these WSMEs make up for ten percent of the country’s GDP, they also lead to social development of the culture by empowering women economically. Besides these major benefits, support of WSMEs aids Indonesia in achieving the UN’s “Sustainable Development Goals”, specifically the tenets of ‘gender equality,’ ‘decent work and economic growth’, and ‘reduced inequality’.

The advantages of backing WSMEs are clear, but why are there limitations on the growth of these organizations? This is the question that Talib proposes. She illustrates just some of the difficulties women who head businesses face. Talib explains,

” …common difficulties for expansion [for WSMEs] include limited access to information about financial support, lack of business and entrepreneurial skills, lack of professional networks and limited government support and services at the local level. Financial support is available for WSMEs, but female entrepreneurs tend to lack information about these options. Female entrepreneurs find that information about government funding programs is often limited, difficult to access or unclear.”

One of Talib’s main arguments suggest that Indonesian policymakers fail to effectively provide WSMEs with the necessary resources to solve these issues. Talib writes of the necessary reform,

“Three areas require greater attention: increasing the accessibility of information, strengthening the institutional capacity of the Creative Economy Agency and improving government services at the local level.”

To read more about the specific solutions posed to the pressing issue of the neglect of Indonesian WSMEs, read the article here.

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JOIN us for our morning wegg™ workshop on September 12th and hosted by Bank of America (135 S. LaSalle Street, 44th Floor).  Julie Smolyansky, President and CEO, Lifeway Foods, will present “Follow Your Gut,” covering:

  • How global factors influence company values and mission
  • Why we should empower women entrepreneurs around the world
  • How to channel inspiration from travel experiences into marketing initiatives

Tickets $40 ($20 for students); includes Continental Breakfast.  To learn more and to register, visit:  https://www.eventbrite.com/e/weggtm-workshop-follow-your-gut-presented-by-julie-smolyansky-tickets-48655708534
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WEGG: Clearing the Path for Women to Take on the World

Through collaboration and a passion to help small businesses succeed, EXIM Bank and Women Entrepreneurs Grow Global (WEGG) were able to arm KOVAL Distillery with the resources and support needed to exceed its global business growth goals.

One of WEGG’s members, Sonat Birnecker Hart, president and co-owner of KOVAL Distillery, hosted a WEGG workshop and also presented at the event. KOVAL Distillery produces organic whiskey, liqueurs and specialty spirits that are sold throughout the US, Europe, Canada, Australia and Asia.

Ms. Hart says:

“We recognized that as our export business grows, it would behoove us to have a system in place to be able to send over more product and build stronger relationships with our partners. Having the support of EXIM Bank allows us greater flexibility to meet the needs of our growing markets, while providing us with the security to aim higher,” Sonat explained.

The two organizations, EXIM Bank and WEGG, will continue to work together and cultivate these opportunities for women entrepreneurs throughout the US.

WEGG’s work revolves around educating and helping women entrepreneurs and business owners export their products and services throughout the world.

Read more about how EXIM Bank and WEGG are clearing the path for women to take on the world.

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Upcoming WEGGinar Feb 7Note: Don’t miss our next WEGGinar™ 2/7/18 on “Dare to Be Bold!  Here’s How” and presented by CamMI Pham, Partner, ThinkRenegade. Register here. Event is free of charge but you must register in advance to attend.
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Jeff Deiss Talks About Winning the Trade Game with Export Finance

Jeff Deiss, Regional Export Finance Manager, Northern California | International Trade Finance Manager-Western US | US Small Business Administration – Office of International Trade | US Export Assistance Center (www.sba.gov/international) recently gave a substantial WEGGinar™ on “Winning the Trade Game with Export Finance.”  You can listen to it at your convenience here and download his presentation here.

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Note: Don’t miss our next WEGGinar™ 10/11/17 on “Navigating Global Business Travel in 2017,” and presented by Stephanie Lewin, Global Immigration Attorney at Berry Appleman & Leiden LLP (www.balglobal.com).  Register here: https://register.gotowebinar.com/register/6874264726093775875.
Event is free of charge but you must register in advance to attend.
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Xiomara Creque-Bromberg Follows Up on Her July 12 WEGGinar™

On our July 12th WEGGinar™, “How to Finance Your Exports,” we ran out of time and had a couple of remaining questions that we didn’t have a chance to address.  Below, Xiomara Creque-Bromberg, Export Finance Manager, Minority and Women Owned Business & Multiplier Outreach Division, Office of Small Business, Export-Import Bank of the United States, answers those questions.

Laurel Delaney:  On receivable insurance, please detail how a business owner arrives at their premium on an export transaction. You had mentioned during your WEGGinar™ an example of a $30,000 sale; 65¢ per $100 for insurance; and, that the premium would be $195.00. Please drill down and make it very clear on how this works and nets out, thank you.

Xiomara Creque-Bromberg:  The example used is the Express Insurance which is applicable to the most typical export credit transaction term (60 days) and for private buyer new exporters.  The Premium is calculated based on the rate applicable to the policy, having said that; let’s use one example for Mexico.

Express Insurance policy to cover a private buyer in Mexico under a 60 days open account terms.

Export Sale:                                                     $30,000.00
Premium Rate $0.65 per $100.00 of the total export value 
Export Sale                                                      $30,000.00
                                                                                .0065
Premium Payable upon shipment                          $195.00

NO SHIPMENT NO PREMIUM PAYMENT

Laurel Delaney:  Exim Bank has no minimum/no maximum dollar amount on deals. Having said that, what if I have a U.S. $5,000 transaction that I want financed, is that doable and if so, what paperwork would I complete; what would my fee be; and, what am I guaranteed? Are there any product/country restrictions that I should be aware of?

Xiomara Creque-Bromberg:  Yes that’s doable. Submit an application on Exim on Line (EOL). There is no application fee for Express Insurance. On a $5,000.00 transaction for example:

Express Insurance policy to cover a private buyer in Mexico under a 60 days open account terms.

Export Sale:                                                     $5,000.00
Premium Rate $0.65 per $100.00 of the total export value
Export Sale                                                      $5,000.00
                                                                              .0065
Premium Payable upon shipment                        $ 32.50

NO SHIPMENT NO PREMIUM PAYMENT

A one-time, refundable advance deposit of $500.00 is required before issuing the policy. On EXIM’s website www.exim.gov you will find the Country Limitation Schedule which will inform you what countries EXIM will provide support and the terms.

If the transaction is for working capital, please see the segment on pre-exporting financing below.

Laurel Delaney:  You mentioned during your talk that SME exporters are 70% more profitable than non-exporting companies. Why?

Xiomara Creque-Bromberg:  Exporting allows companies to diversify their customer base. Over 95% of the world’s consumers are outside the U. S.

Companies who are not exporting are losing buyers/customers if they are not marketing /tapping into that consumer base. Export Credit Insurance provides access to those consumers at no cost.  See www.export.gov trade.gov/cs/factsheet.asp, “Exporting Is Good For Your Bottom Line.”

Laurel Delaney:  On pre-exporting financing, funds to fulfill orders scenario, how does Exim Bank evaluate whether they will finance a deal or not?

Xiomara Creque-Bromberg:  Working Capital is evaluated based on the creditworthiness of the U.S. exporter who is in need of funds to full field an order. There is no minimum or maximum amount. You would apply for a Working Capital loan with a commercial lender that has an agreement with EXIM, to who we provide the guarantee. The lender will inform you of the required forms and fees. There are product restrictions, i.e. EXIM will not support transactions selling to a foreign country’s military; U.S. content of the product must be at least 50%. On EXIM’s website www.exim.gov you will find the Country Limitation Schedule which will inform you what countries EXIM will provide support and the terms.

Laurel Delaney:  You support service exports. How does that work? For example, if I run a design agency and provide $10,000 of work over 3 months to a customer in the UK, how would Exim Bank work with me to finance that transaction?

Xiomara Creque-Bromberg:  There are a number of different insurance policy types to protect you from buyer non-payment. Policies for services are reviewed on a case-by-case basis. However the basic requirements is that personnel providing the services must be a U.S. citizen employed by the U.S. exporter and a foreign company must be invoiced.

Laurel Delaney:  What’s the biggest stumbling block to SMEs not getting export financing?

Xiomara Creque-Bromberg:  My experience has been companies that have not been established long enough to provide a positive track record/sales history. I have also found that companies may not do a good job vetting the foreign buyer.

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Note: Don’t miss our next WEGGinar™ 9/6/17 on “How to Win the Trade Game With Export Finance,” and presented by Jeff Deiss, Regional Export Finance Manager, Northern California | International Trade Finance Manager-Western US US Small Business Administration – Office of International Trade | US Export Assistance Center (www.sba.gov/international).  Register here: https://register.gotowebinar.com/register/4753604763900421122.
Event is free of charge but you must register in advance to attend.
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Yes to India on Supporting Women-Owned Businesses

India-based Yes Bank (private sector) has received $150 million funding from the US government and Wells Fargo to increase lending to support women entrepreneurs and small and medium-sized enterprises in India.

This is the third round of funding to the bank as part of arrangement with the Overseas Private Investment Corporation (OPIC) – the US government development finance institution – and Wells Fargo.

An estimated three million women-owned businesses in India employ over eight million people. However, only about a quarter of them are able to get the finance they need to grow and create jobs.

Hopefully, this will drive future economic growth and job creation in India for women entrepreneurs.

Read more …

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Note: Don’t miss our next WEGGinar™ 8/2/17 on “How Two Savvy Moms Started a Bed Business and Took It Global,” and presented by Betsy Mikesell, CEO, and Angie White, CFO, of Beddy’s (www.beddys.com).  Register here: https://register.gotowebinar.com/register/1512287365281961985.
Event is free of charge but you must register in advance to attend.
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Female Entrepreneurs Are About to Transform the Global Economy

The World Bank (WB) unveiled a new program, the Women Entrepreneurs Finance Initiative, that is designed to boost women entrepreneurs in developing countries and fight the norms that hold them back, such as uneven access to loans and shaky property rights.  WB has raised $325 million from numerous countries, with $50 million coming from the United States and other contributions from Germany, Saudi Arabia, the United Arab Emirates, Japan, China, the United Kingdom, South Korea, and the Netherlands.

Less than a third of global businesses are owned by women, and the initiative aims to grow women-run enterprises across Africa, Latin America and the Middle East. It will also help facilitate loans to entrepreneurs, ranging in size from between a few hundred dollars to several hundred thousand dollars, depending on the applicant’s needs. World Bank officials said they hope to make the capital available later this year or in early 2018.

We cheer on the WB because it has a long history of providing support to women who are challenged by economic disadvantages.  For example, they launched the Women’s Leadership in Small and Medium Enterprises (WLSME) program, supported by the U.S. Agency for International Development (USAID).

Read more about how the WB will help women globally to reach their full potential here.

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Note: Don’t miss our next WEGGinar™ 7/12/17 on “How to Finance Your Exports,” and presented by Xiomara Creque-Bromberg, Export Finance Manager, Minority and Women Owned Business & Multiplier Outreach Division, Office of Small Business, Export-Import Bank of the United States.  Register here: https://register.gotowebinar.com/register/4467897765873413377.
Event is no charge but you must register in advance to attend.
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Lack of Capital for Women Business Owners Might Lead to Forced Creativity

Ottawa, Canada researchers Clare Beckton and Janice McDonald are eager to try to determine if factors such as a lack of access to capital make women more likely than men to devise inventive new ways of doing business out of necessity, such as taking a business global.  That could be construed as forced innovation or creativity.  It’s time to find out.

“When you are underfunded and perhaps don’t have resources, you get pretty darn creative,” she says. “It forces innovation. Given that we know that access to capital is very challenging for women entrepreneurs, has that limited access to capital shaped outcomes in terms of how they’ve approached innovation? We’re not saying that those two are necessarily linked. We’re just wondering, are they? If so, in what way?”

Read more …

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Note: Don’t miss our next WEGGinar™ 7/12/17 on “How to Finance Your Exports,” and presented by Xiomara Creque-Bromberg, Export Finance Manager, Minority and Women Owned Business & Multiplier Outreach Division, Office of Small Business, Export-Import Bank of the United States.  Register here: https://register.gotowebinar.com/register/4467897765873413377.
Event is no charge but you must register in advance to attend.

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Stubborn Wage Gap for Women Worldwide

Closing the Wage Gap For Women Worldwide

Happy 2017.  For those who missed Laurel Delaney’s webinar, “Laurel Delaney’s Global Trade Trends Report 2017,” you can access it here. And find her presentation deck here.  Now, to other important business matters.

Why is there such a stubborn wage gap for women worldwide?  Your guess is as good as ours but one thing is certain:  As a result of this trend, we’ll see more and more women starting their own businesses and taking them global at the outset.

Meanwhile, in Canada, for example, in an article in Canada’s Corporate Knights magazine, they feature a list of 100 highest paid CEOs including five people named Marc or Mark, five named Michael, four named Al, John, Paul and Steve, and three named Brian, Charles and Donald.  Where are the women?  There were just two women among those 100 corporate elites in 2015.

The United States has the same problem.  On average, American women earn less than their male peers. Highly educated women fare worst of all. For example, when the comedian Ricky Gervais joked that he was paid the same to host the Golden Globes as the actresses Tina Fey and Amy Poehler — combined — his snide humor most likely echoed throughout many workplaces.

Let’s hope in the future that the wage gap is once and for all closed for women worldwide.

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Note: Don’t miss our next WEGG webinar 2/1/17 on “How to Leverage Social Media to GROW Global,” and presented by Melisa Hinosoja, IBM Digital Marketing and Commerce Specialist.  Register here: https://attendee.gotowebinar.com/register/4285210609604750594. Event is no charge but you must register in advance to attend.

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WEGG Mission

Our mission is to educate, inspire and nurture women business owners and entrepreneurs worldwide on how to go global so they can run healthier businesses and create a new future for themselves, their families and their community.


Women Entrepreneurs GROW Global is a 501(c)3 nonprofit organization. EIN/Tax ID #47-2956522.

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