Women entrepreneurs continue to climb but the gap of accessibility to finance is still high. Enhancing the access of women entrepreneurs to finance is one of the objectives of the Credit Guarantee Corporation (CGC) Malaysia Berhad in developing the “BizWanita-i, a funding program with an allocation of RM30 million aimed at assisting women entrepreneurs who want to expand their businesses.
CGC recognizes the potential of this product as an enabler to encourage women participation in business whereby the participation of Malaysian women in the labour force is the lowest in the ASEAN region. Besides encouraging women participation in entrepreneurship (only 19% of total Malaysia SMEs are women-controlled), it also addresses financing gap of micro segment that constitutes for about 77% of total Malaysia SME establishments of which women-owned SMEs make up 87.9% of these micro SMEs.
The launched of this Syariah-compliant product is in line with the Malaysian Government’s focus to encourage entrepreneurship amongst the B40 group. The Bottom 40 (B40) group comprises an estimated 11.7 or 40% of citizens in Malaysia that live within a household income of below RM3,050 per month.
As at December 31, 2015, loan approval under BizWanita-i has totaled 76 accounts (2 months after its launching in October 30, 2015) valued at USD2.42 million (RM10.02 million) with no non-performing loan (NPL) yet.
CGC’s “BizWanita-i”: Financing Women Entrepreneurs was a recipient of a Merit Award in the 2016 ADFIAP Outstanding Development Project under the SME Development Category.