Encouraging women entrepreneurs

As underprivileged as women are in this society, it is least surprising that there are only a few female entrepreneurs. Those who are in the field find it too difficult to pursue their business interests.
Hence following the example of women entrepreneurs in countries having similar conditions as those prevailing in Pakistan such as Nepal and Sri Lanka, some female business leaders recently undertook an important initiative to set up an all women chamber of commerce and industry.
They announced the setting up of Women Chamber of Commerce and Industry (WCCI) in Karachi earlier this month.
Their purpose, of course, is to create an enabling environment for female entrepreneurs. Business activity itself may be gender blind, but those associated with it are not.
It goes without saying that the idea of enhancing women's participation in business and commerce is in line with the government policy to strengthen the small and medium enterprises sector.
The question is what it is that the government should do to help women entrepreneurs, given their peculiar needs and circumstances.
The national convenor of the newly set up WCCI, Begum Salma Ahmad, herself a veteran businesswoman, came up with the answer at a press conference she addressed in Islamabad on Thursday to announce the names of the presidents of Islamabad and NWFP chapters of the organisation.
She urged the government to provide industrial plots to women entrepreneurs at concessionary rates in all the major cities, and also that they be given a five-year tax holiday.
These demands are not out of sync with what the government has been doing in the past to stimulate business activity in general. Hence it should not have any qualms about granting such concessions to a section of the population which is in need of special incentives.
The WCCI convenor also demanded that the First Women Bank and SME banks should provide credit to prospective businesswomen at reduced rates together with waiving off collateral for loans below Rs 50,000.
So far as preferential treatment is concerned the demand is perfectly legitimate.
The society must do all it can to lift the female population out of conditions of despair and dependence. It must help women to realise their potential in all areas of national endeavour.
However, the primary responsibility for that falls on the government; it alone must bear the cost of the requisite incentives.
It may be recalled that not long ago, Mian Nawaz Sharif's government had used public sector banks to launch his employment generation Yellow Cab Scheme and also a small businesses loans programme. Both were to spell disastrous consequence for the banking sector.
The example should serve as an instructive experience in the planning of any new economic activity generation programme.
While there is a strong argument for providing the necessary support to women's participation in business activity, the cost of such support must be borne by the national exchequer rather than public sector commercial organisations such as banks.