Investing in Women, an initiative of the Australian government, recently launched the “Investing in Women RISE Fund—Responsive Interventions Supporting Entrepreneurs,” to inject additional capital for small, grassroots ventures in Southeast Asia, including the Philippines.
By Alex Y. Vergara
It’s almost the same story the world over. Crisis after crisis, the most negatively impacted party, apart from children and the elderly, are women. Whether the effect is economic displacement, lack of access to scarce capital and basic healthcare, it is the women, especially in developing countries, who usually bear the brunt of almost every disaster. The situation hasn’t been any different during this current pandemic.
Yet, as many development experts and woke political leaders have pointed out, it is with no small amount of irony that women, who manage roughly 37 percent of all small- and medium-scale enterprises all over the world, outpace men “1.5 times” in turning a profit from their respective humble ventures. According to studies, women are also twice as likely than men to reinvest their hard-earned money in society and their families.
The multiplier effect in providing women access to funds has a greater direct positive impact on society. As more women gain access to capital, the development alone is likely to boost their confidence in assuming leadership roles and taking on bigger ventures. Taken together, their collective entrepreneurial successes have a direct impact in a country’s economic growth, especially in uplifting depressed communities.
The COVID-19 pandemic has spiraled from a public health emergency to a global humanitarian and economic crisis, with women disproportionately affected. In response, Investing in Women, an initiative of the Australian government, recently launched the “Investing in Women RISE Fund —Responsive Interventions Supporting Entrepreneurs,” to inject capital for women-led small and medium Enterprises (SMEs) in Southeast Asia, including the Philippines.
The fund, which will be made available to existing enterprises and not for startups, offsets COVID-19’s impact on women-owned and led businesses, and provides much needed liquidity in a capital-constrained market.
The Macquarie Group Foundation has joined this initiative and will be investing more than P 43 million (1.25 million Australian dollars) in the Philippines. Depending on the program’s success, people behind it also hope to generate more than 200 jobs in the coming year as a direct result of the much-needed funding.
To qualify for such loans, 50 to 70 percent of an existing SME’s ownership must be traced to women. Women should also have active leadership and decision-making roles in these small businesses by as much as 30 percent. Qualified SMEs can borrow as much P 15 million.
The Macquarie-Investing in Women RISE Fund was formally launched last Tuesday at a signing ceremony in Makati led by the Australian ambassador to the Philippines, HE Steven J. Robinson AO, and Eric Yaptangco, division director, Manila Technology and Office Head, Macquarie Group.
“Women will play a central role in the recovery from COVID-19 and should have an equal part in a more resilient, inclusive and broad-based Philippine economy,” said Robinson. “The Macquarie- Investing in Women RISE Fund will support and give a boost to women’s SMEs and help to build back better in the Philippines. Closing the gap between women’s and men’s access to capital will provide a significant boost to economic growth at a time when it is much needed.”
This public-private alliance will work through two local investing partners: the Foundation for a Sustainable Society Incorporated (FSSI) and InBestCap Ventures (InBest). The Fund will enable these partners to provide much needed investments to women’s SMEs which will have a multiplier effect in the local economy, hopefully creating and sustaining more than 200 full-time jobs.
In addition, the investment partners (FSSI and InBest) are committed to strengthening the “gender lens” investing ecosystem in the Philippines, encouraging other investors to ensure women entrepreneurs can access funding to grow their businesses.
“The Macquarie-Investing in Women RISE Fund will ensure that women entrepreneurs can access the funding required to adapt and respond to emerging business opportunities during the critical recovery period in the region. Working through impact investors, our support will help businesses to restart economic activity in hard-hit areas of the Philippines,” said Lisa George, Global Head, Macquarie Group Foundation.
“Our rich experience in working with various enterprises and funders, and in developing and managing investment deals that generate positive development impact will help build good and lasting business relationships with clients and partners,” said Augusto Camba, chief executive officer of inBEST. “With support from Investing in Women and the Macquarie Group Foundation, we expect to assist more women-owned and -led enterprises, catalyze more resources, rise above the present challenges, and contribute to economic recovery in the Philippines.”
“We are excited to make use of the Macquarie Investing in Women RISE Fund, which, when cost-shared with our own resources, will help women’s SMEs access much-needed capital to emerge stronger from the economic crisis. Now more than ever, we must invest in sustainable communities driven and responsive to the needs of women,” said FSSI Board Member Christie Rowena Plantilla.
According to Robinson, the success or failure of the program can be seen between 18 months and two years. Such metrics as the number of enterprises and women entrepreneurs who had access to funds and by how much their businesses grew will be used to guide the group in their future decisions.
“We will see how we go,” he said. “We will evaluate it continuously. If there are opportunities to invest further, we will be very keen to do so.”
For inquiries, email or call Christie Rowena Plantilla at fssi@fssi.com.ph; pdmu@fssi.com.ph; tel. 8928-8671. Additional information is available at https://sites.google.com/inbestcap.con/inbest .
