Trade and Investment Working Group
According to Sebrae data, in Brazil, companies led by women have 60% lower revenues than those led by men. In foreign trade, 14% of Brazilian exporting companies are women. A study by the Ministry of Development, Industry, Commerce and Services revealed the need for measures to promote women’s presence in international markets.
June 27, 2024, 2:00 PM – Changed 7 hours ago
In almost all parts of the world, women face cultural barriers and other challenges, for example when they decide to start their own business, access the financial system, and get credit. Moreover, in times of crisis, such as the current one, when the world faces war and climate change, the financial system is reluctant to take risks and provide funding to small and medium-sized enterprises.
According to Renata Mariheiros, coordinator of the Brazilian Small and Medium Enterprise Support Service (Serviço Brasileiro de Apoio às Micro e Pequenas Empresas/Sebrae) program of the Sebrae Delas program, women entrepreneurs in Brazil receive 22% more training than men. Despite this, female-led businesses earn 60% less than their male counterparts. In other words, men receive less training than women, but earn more. For Renata, one of the factors that creates this reality is the amount of time adult women spend on their businesses.
The MDIC study also found that trade costs and barriers disproportionately affect small and medium-sized enterprises, preventing them from expanding into global markets. As the majority of women-owned businesses are MSMEs, measures are needed to reduce the costs of entering international markets.
“At Sebrae we found that women spend 17% less time at work than men. Typically, these women take care of children and the elderly and perform unpaid household chores. Care work is crucial, but time-consuming and usually unpaid,” says Renata.
Another recurring problem is that women start businesses informally because they need to support their children, and are unable to legalize them. Gisela D’Abico of the international organization Better Than Cash Alliance believes that despite recent progress, gender disparities in the financial system still exist. According to a study conducted by the Alliance, more than 66% of women-led small and medium-sized businesses worldwide operate in the informal sector.
“Women often only have one mobile phone for the whole family or don’t have internet access because they live in rural areas. The challenges are many. And women generally invest in the well-being of their families, so providing access to financial services gives dignity to the whole family,” argues Gisela.
Encouraging women’s participation
It is not easy for women in Brazil to start a business in their country, nor is it an easy task to participate in the international trade of goods and services. In 2023, the Ministry of Development, Industry, Commerce and Services (Ministério do Desenvolvimento, Indústria, Comércio e Serviços/MDIC) published a study called “Mulheres no Comércio Exterior” (Women in Foreign Trade), which revealed that only 14% of Brazilian exporting companies and 13% of importing companies have women in the majority on the board of directors.
The result is slightly above the average for 76 developing and emerging countries analyzed in the World Bank Enterprise Survey, which found that among exporting businesses, only 10 percent of manufacturing businesses and 12 percent of services businesses are owned by women.
The MDIC study also found that trade costs and barriers disproportionately affect small and medium-sized enterprises, preventing them from expanding into global markets. As the majority of women-owned businesses are MSMEs, measures are needed to reduce the costs of entering international markets.
Reflecting and discussing women’s participation in international trade is a strategic issue for the Brazilian Presidency of the G20. The Trade and Investment Working Group has been discussing this issue with the aim of supporting the expansion of development opportunities for underrepresented sectors of society, such as women, and accelerating progress towards inclusive and fair trade.
The group is coordinated by the Ministry of Foreign Affairs (Ministério das Relações Exteriores/MRE) and the Ministry of Development, Industry and Commercial Services. Later this year, the working group will publish a G20 summary outlining best practices for increasing women’s participation in international trade.
