Contribution of Government Support in Promoting Women’s Entrepreneurship

Abstract

Nowadays, the practice of entrepreneurship in many countries is no longer restricted to men only but has opened wider areas for women’s participation. The Global Entrepreneurship Monitor Annual Report 2021 indicated that participation rates in entrepreneurial activities are close between men and women in 49 countries, and the reason for this convergence is due in large part to government support. In this context, we try in this chapter to highlight the importance of women’s entrepreneurship and its impact on economic development, and then to determine the extent to which government support contributes to the promotion of women’s entrepreneurship in Algeria. In this chapter, the various supportive bodies established by the Algerian state to stimulate entrepreneurship, especially women’s, are addressed, where we find the Microcredit Agency, the National Agency for the Development of Entrepreneurship, the National Fund for Unemployment Insurance, and the National Agency for Investment Development. It should be noted that these bodies work in integrated coordination with each other to identify the different women’s projects, whatever their specificities and areas of investment in them. A conceptual model has also been designed to simplify understanding of the topic.

1. Introduction

Most economies are currently seeking to pay attention to entrepreneurship because of its positive effects on various aspects of economic and social life [1]. Therefore, countries are trying at every stage to take several measures to improve the business climate and urge more young people to enter this field, as it has become known to be unacceptable. It is possible to talk about sustainable economic growth without integrating women, who represent half of society. Particularly about her role in the field of entrepreneurship, studies in some countries have shown that there is a strong correlation between the level of entrepreneurial activity of women and growth, as they have become one of the poles of the economy and the locomotives of its growth. They are interested in the phenomenon and seek ways to help them exploit it and how to benefit from it.

Investing in women’s skills is one of the most effective ways to promote comprehensive and sustainable economic growth by creating job opportunities, increasing the human resource base, achieving economic production, and reducing poverty. Therefore, the International Labor Organization sought to prepare a strategy for the development of women’s entrepreneurship in order to increase the economic potential of women’s projects [2].

In addition, managing entrepreneurial projects for women is a source of income to support themselves and their families. However, the rate of women’s participation in entrepreneurial activity is much lower than that of men. The rate of wastage and failure in new projects owned by women is much higher than that of men. Perhaps this is due to the obstacles of female entrepreneurs, as they often come from families with lower incomes than their male counterparts, and they do not have enough experience to manage projects, in addition to the lack of services they receive to manage their small and medium projects, and thus this affects the development of their businesses [3].

Entrepreneurship is not in the easy sense that leads any female to do her own independent work and put her name among the women in entrepreneurship. Rather, it is based on her independent personality and the image of the company she runs and what is her field of activity. In addition to their experience in many areas such as financing, training, management style, team spirit and leadership, the mechanism of development and many, and many information that you need within the labor market to have an enjoyable experience in this field and build its name in a brilliant way and are able to send confidence and credibility in its world within entrepreneurship. On the other hand, there is a significant link between women’s entrepreneurship and innovation, where Nair [4] noticed a correlation between women’s creativity in entrepreneurship, their age, education, location, type of work, annual income, and the number of employees.

From the foregoing, the life of natural entrepreneurial women in the field of business is the result of the continuous and permanent interaction between work and the social life in which they live and the extent to which this life is linked to factors that push them to succeed more and support their own decisions and direct them to a successful course of action [5], so the nature of socialization in society has an important role in their growth stage as brilliant females who enjoy a leadership, independent, successful personality in the field of business and lead their activities with all steadfastness and success and with all the quality and effectiveness as they always hope.

In fact, women remain the most powerful and influential members of society, even in developing and developed societies [6]; empowering their role in society will make society more aware and more successful, when women have their role in society in an elegant, decent, and appropriate manner for them in entrepreneurship The freedom of her voice and the expression of her demands, according to her awareness and according to her experiences in life, will make the matter more stable, stable, and more mature to reach a conscious generation supported by the mother or sister as a female entrepreneur, making successful decisions and understanding the needs of society and aware of what is changing in the labor market [7]. Taking on an entrepreneurial role, especially among women, requires a strong, courageous, and steadfast decision as well, and requires patience in every stage of life and building a brilliant brand name that is supported by good social relations, real experience in life, and quality in the leadership of her company and its staff, and with all the details that are needed. She needs to support her role in the field of entrepreneurship [8], and not to forget that society that is trying to change its stereotypical ideas and the usual image that it used to see in it without looking at its capabilities and talking about its ability to give and develop, whether in motherhood or in entrepreneurship, with success and stability.

In this chapter, we will shed light on the issue of support for women, and accordingly, one of the most important factors that help the success of women’s entrepreneurship projects is the government’s support in the first place represented in the devices that I set up as guardians, supporters, and companions for women during all stages of project completion. As for the second degree, it is family support, persistence, proficiency in work, administrative and organizational skills, knowledge, and familiarity with the nature of work and customers. This chapter focused on government support agencies and their contribution to promoting women’s entrepreneurship, by addressing, first, the characteristics and importance of women entrepreneurs in increasing societal development. Secondly, the various government support bodies and ways of supporting entrepreneurial work. Third, design a conceptual model that explains the process of government support in Algeria.

2. The economic and social importance of women’s entrepreneurship and its most important characteristics

Contracting has become a widely used and circulated concept, as it is now known as a field of research [9]. Due to its increasing importance, governments, university researchers, and society in general have become more interested in the development of contractors and their institutions, and their ability to survive and grow. This increased interest can be explained by the provision of these contractors and new institutions jobs, and their support for sustainable development, and women’s entrepreneurship is considered one of the aspects of contemporary economic growth, due to its growing role and why it has importance on various levels, and with the intention of highlighting this, we first wanted to clarify the concept of the entrepreneurial woman, its most important characteristics, and the factors determining its growth and then highlight their importance at various levels.

2.1 Characteristics of women’s entrepreneurship

Many studies have focused on the advantages of feminist entrepreneurship, and this is done by distinguishing between three elements [10]:

They are the characteristics of women entrepreneurs, the characteristics of women-run enterprises, and the way they enter the business. Results will vary and stand out by type of training practiced, percentage of participation in networks, and financing.

About the characteristics of the entrepreneurial woman, most of the studies unanimously agreed that they are:

• Younger than men.

• She often joins the field of entrepreneurship after spending a period of unemployment (raising her children, … etc.), or because of problems she encountered within

The institutions she used to work in (the problem of the glass ceiling, conflicts).

• They are less qualified than men and have less professional experience in the management of institutions or in the sector of activity in which they operate.

• Less efficient on the financial, management or entrepreneurial level.

As for the characteristics of institutions run by women, they are usually characterized by the following:

• Enterprises are smaller in age and size compared to those owned by men, whether in terms of property size, sales, or workers.

• Their activity is centered on low-growth feminist activity sectors, such as retail trade and services, which are scarce.

• Women practicing their activities in the field of manufacturing, transportation, or conversion.

• Entrepreneurial women do not prefer to have partners, unlike men.

As for efficacy, results vary according to the definition of efficacy [11] If we measure the efficiency based on the survival rate of the institution, it is found that the efficiency institutions run by women are larger than men. But if efficiency is measured based on the success of the institution, the results are contradictory, the indicator is growth or profitability the results are almost the same, but they decrease if we take the size of the institution as an indicator.

As for the management methods used, they are characterized by the following:

• Women prefer a horizontal organizational structure and a flexible management style, and encourage participation, sharing of power and information.

• In addition to economic goals, most women attach great importance to personal and social goals, meaning they are less oriented toward developing the size of the organization, and this is due to not taking risks, and allocating more time for family duties.

In an analytical study of “Greenhalgh” on the qualities necessary for successful negotiation, the behavior of men entrepreneurs and entrepreneurial women are very different, as men seek to earn whatever the results, and this is the basis of problems in the business world, whereas women, on the contrary, seek after negotiation to obtain permanent relations and profitable cooperation for both parties [12].

All these characteristics and advantages of the personality of the movement and its institution will influence the funding level, participation in the courses, training, and the use of the government and special organizations to support entrepreneurship, where women often use their own savings when starting their business, or the use of loans obtained from the surroundings. They rarely resort to private support networks that help provide information and offer opportunities possible. Rarely do women follow special and complementary training in the field of running institutions or joining organizations or government assistance in entrepreneurship, and this is due to their lack of information about existing structures and aids.

2.2 The economic and social importance of feminist entrepreneurship

The secret of the current interest in feminist entrepreneurship lies in its economic importance and social institutions established and developed by women. In recent years, many studies have been carried out on subject, and in several countries, especially in the Anglo-Saxon part, and this is to attract the attention of governments and economic agents when making their decisions the strategy, for the important and growing role of women’s entrepreneurship in life, and at all levels as a key factor in achieving sustainable development.

That most countries recorded a strong correlation between the level of entrepreneurial activity and growth, and these studies indicated that the entry of women into entrepreneurship is very positive and explains in a large proportion the deviation of growth between different countries. The same report indicated that some countries do not encourage women to enter entrepreneurship and institution development, and this is for fear of not achieving entrepreneurial goals and growth goals, and this is in fact contrary to the results achieved by women’s institutions, and this result confirmed studies and reports as it showed the impact of women’s entrepreneurship on the national economy of those countries [13].

The International Office of Labor [14] evaluates the economic impact of women’s entrepreneurship in some African countries, by estimating women’s ability to create job positions for themselves and for others. With the development of their institutions, these job positions were usually directed to women.

3. Mechanisms for promoting and support women’s entrepreneurship in Algeria

Algeria, like other countries, has realized the importance of establishing institutions and upgrading the institutional fabric and striving to encourage investment in them, and this is what we see through the policies adopted in. In recent years, however, the question raised revolves around the share of women entrepreneurs in these mechanisms, and the extent to which there is privacy.

3.1 National unemployment insurance fund

Since its inception in 1994 as a public social security institution (under the tutelage of the Ministry of Labor, Employment and Social Security) working to “mitigate” the successive social effects resulting from layoffs of salaried workers in the economic sector in accordance with the structural adjustment scheme, the National Unemployment Insurance Fund has several phases in its course dedicated to taking charge of the new tasks entrusted by the public authorities.

From 1998 until 2004, the CNAC implemented active measures aimed at the reintegration of unemployed benefit recipients, namely job search assistance and assistance with self-employment by specially recruited and trained—the facilitator advisors—and in centers equipped with infrastructures and equipment also intended for this purpose. Assistance in the creation of activities for unemployed promoters aged 35 to 50, and the support system for the creation and extension of activities for unemployed promoters aged 30 to 50. Mechanism relate to measures to encourage and support the promotion of employment [15].

3.2 The National Agency for entrepreneurship support and development

The National Agency for Support and Development of Entrepreneurship, by abbreviation ANADE, created in 1996, is a public body with a specific character, endowed with legal personality and financial autonomy, placed under the supervision of the Minister Delegate to the Prime Minister in charge of micro-enterprise [16].

ANADE supports project leaders in the creation and expansion of micro-enterprises producing goods and services, and has a network of 61 agencies, located in all the wilayas of the country, as well as branches located in major localities. Aims to promote the creation and extension of goods and services by project leaders, encourage all forms of actions and measures to promote entrepreneurship.

ANADE has the following missions: support, advise, and accompany project leaders in the creation of activities. Make available to project promoters all economic, technical, legislative, and regulatory information relating to their activities. Develop relationships with the various partners of the system (banks, taxes, CNAS and CASNOS, etc.). Develop a cross-sectoral partnership for the identification of investment opportunities—various sectors. Provide training on micro-enterprise management techniques for the benefit of project leaders. Encourage all other forms of actions and measures to promote the creation and extension of activity.

3.3 The National Agency for the Management of Microcredit

The micro-credit is considered as a tool to combat fragility, as it allowed the disadvantaged people to improve their living conditions, and this is by creating their own activities that enable them to obtain income.

The micro-credit appeared for the first time in Algeria in 1999, but it did not know—in its previous form—the success that the public authorities had hoped for, due to the weakness of the accompaniment process during the stages of project maturity and the follow-up of its completion. This was evident during the international forum organized in December 2002 on the subject of “the experience of microcredit in Algeria,” and based on the recommendations presented during this gathering, which included a significant number of experts in the field of microfinance, the National Agency for the Management of Microcredit was established [17].

The agency is represented at the local level through 49 state agencies distributed throughout the country, including two agencies (02) in Algiers, and this network is supported by accompanying cells present at the district level.

The agency aims to contribute to the fight against unemployment and poverty in urban and rural areas by encouraging self-employment, homework, trades, and professions, especially women groups. Raising awareness among the rural population in their areas of origin by highlighting economic and cultural products, goods and services generate income and employment. The development of an entrepreneurial spirit that helps social inclusion and individual development of individuals and support, guides, and accompanies the beneficiaries in the implementation of their activities, especially with regard to the financing of their projects and the stage of exploitation. Follow-up on the activities is carried out by the beneficiaries, while ensuring that they respect the agreements and contracts that bind them with the National Agency for National Management (ANGEM). It trains entrepreneurs and microcredit beneficiaries. Supporting the marketing of microcredit products by organizing exhibitions and all available means of marketing, such as digital platforms [18].

Table 1 shows the financial loans granted in 2022 by gender, where the percentage of men is higher than the percentage of women, due to the composition of society first, which consists of a greater percentage of men than women. Moreover, the rate of 36.72 percent is a very large percentage compared to previous years, something that indicates the state’s interest in this category, in view of the economic importance that this category provides.

Distribution of granted loans according to gender 2022
Gender	Number	The ratio
Male	814,354	63.28%
Female	611,420	36.72%
Total	966,234	100%

Table 1.

The outcome of the grants granted for the year 2022, by gender.

Source: ANGEM [18].

3.4 National Agency for investment development

Created within the framework of the first generation of reforms carried out in Algeria during the 1990s, the Agency responsible for investment has undergone changes aimed at adapting to changes in the country’s economic and social situation. Initially, this government institution was entrusted with the task of facilitation, promotion, and investment support initially, the Agency for Promotion, Support and Investment Control from 1993 to 2001, then ANDI, and the National Agency for Investment Development.

National Agency for Investment Development aims to receiving, directing, and supporting investors at the level of its central and regional structures. Informing investors through its website, promotional materials, and various information points on the occasion of the economic events organized in Algeria and abroad. Formalize on a fair basis and within short notice the benefits offered by the incentive scheme. Ensure the coordinated implementation with the various concerned institutions (customs, taxation, etc.) of decisions to encourage investment. Contributes to the implementation of development policies and strategies in synergy with the concerned economic sectors. Makes its partnership on the stock exchange available to potential investors [19].

3.4.1 Complementary structures of the agency and its most important privileges

To facilitate the tasks of the National Agency for Investment Development, a group of complementary bodies has been established [20].

The National Investment Council: It is chaired by the Prime Minister and undertakes the following: suggesting an investment development strategy and its priorities, and incentive measures for investment in line with developments; encouraging the establishment and development of appropriate financial institutions and instruments to finance investment and development.

The unified window: It is located at the level of each state and provides the necessary administrative services, in coordination with concerned bodies related to the establishment of investment projects, including the National Center for Commercial Registration and the tax directorate real estate agencies, local investment support committees.

These administrative departments are represented in the unified window to ease and facilitate all procedures related to incorporation. For small and medium enterprises at the concerned wilayat level.

Non-investment fund: In charge of providing the assistance provided by the state to investors in the form of concessions to cover the costs necessary for the achievement investments.

3.4.2 Benefits granted by the National Agency for Investment Development

The investor benefits within the framework of the National Development Agency.

Investing has the following advantages: Exemption from customs duties applicable for imported equipment that is directly involved in the realization of the investment. Exemption from paying the value-added fee imposed on goods and services that are directly involved in the embodiment of project. Reduced real estate fees. Applying fixed rights regarding registration at a low rate of 2%, about the foundation contracts and raising the capital money. The state undertakes to pay, in part or in full, the expenses of the infrastructure works necessary to implement the project investments Institutions established within the framework of this agency, over a period of ten (10) years, also benefit from the following advantages [20]:

• Exemption from paying taxes on corporate profits and tax on gross income.

• Exemption from paying real estate fees;

• Granting additional privileges aimed at improving and or facilitating investment, such as carrying forward losses and ownership premiums.

3.5 Government support form

The proposed model shows how each organization contributes to supporting women, where we find that women initially decide to resort to one of the organizations according to their social status, and then according to their age, their financial situation, and finally the size of their project, that is, the size of the initial project budget through which they can start to establish the project. In addition, these organizations accompany women in all stages of growth by re-granting them additional funding if necessary. On the one hand, the National Agency for Investment Development supports successful projects awarded by the other three agencies (as shown in Figure 1). This is to ensure the continuity of government support for these projects, so that these contractors can guarantee complete independence.

Figure 1.

Government support form. Source: Design by author.

3.5.1 Description of the model

In Figure 1, the model shows, with continuous lines, the woman’s direct relationship with the various governmental support agencies, where she can go to any agency according to the size of her project, her age, whether she is retired or not, the nature of her activity, or according to the purpose of the support, expansion, or new funding. As the dashed lines show, the second stage of support that comes after the success of the project is in one of the three bodies (the National Agency for Entrepreneurship Development, the National Fund for Unemployment Support, and the Microcredit Agency), as the pioneer or pioneer can go to the fourth body (the National Investment Agency) to expand the project on a larger scale.

4. Conclusion

The female entrepreneurship constitutes an active force within the fabric Economic [21], and an essential tool to promote sustainable development, where the participation of women in the field of entrepreneurship emerged as an alternative to confront the high rates of unemployment, mainly due to the provision of self-resources such as education, especially education undergraduate.

Therefore, this chapter focused on the government’s efforts to develop women’s entrepreneurship, through the various support bodies designed for this purpose. Where did these bodies consider the different segments of women, from small projects to medium and large projects, considering their social status and the age group to which they belong. All this for the success of the project and to ensure independence and thus contribute to sustainable economic development.

We conclude that government support in its various ways remains a stage after the stage of personal conviction in the project and the enjoyment of entrepreneurial passion on the part of women and effectiveness in achievement, as it is considered as a pillar and a means of helping to overcome the financing obstacle in addition to other tax privileges. The success of the project comes from the success of each stage without the other.

Accordingly, the following recommendations can be formulated:

We must work to raise popular awareness of the role and importance of women at various levels. Work to integrate entrepreneurship in general and women’s entrepreneurship in educational curricula in all educational institutions. Work to increase the community’s understanding and acceptance of women’s entrepreneurship projects by spreading ideas and initiatives and raising awareness of them and their benefits. Encouraging local social organizations to absorb, support, and implement women’s entrepreneurial activities on a large scale. Work to promote innovation and creativity in women entrepreneurship projects at the local level and provide support for women entrepreneurs to develop their innovations and creativity. Finding and marketing several innovative ways to develop women’s entrepreneurship projects. Establishing a national center specialized in training entrepreneurs that grants training and qualification certificates to young entrepreneurs, focusing on the basics and skills of entrepreneurial work, preparing economic feasibility studies for projects, and providing statistics and data on available investment opportunities. Providing business incubators in all states of the country to accommodate owners of ideas and entrepreneurs, especially women, and develop their projects.