In the face of daunting challenges, women-owned and -led businesses in Afghanistan are displaying extraordinary resilience, serving as crucial pillars of economic stability and hope amid adversity. These insights come from a comprehensive report titled "Listening to Women Entrepreneurs in Afghanistan: Their Struggle and Resilience," released by the United Nations Development Programme (UNDP).
The report amalgamates insights from various data collection methods conducted over the last three years, including in-depth interviews in 2022, focus group discussions in 2023, and a 2024 quantitative survey with responses from over 3,100 women. This study provides one of the most detailed views into the evolving circumstances of women entrepreneurs in Afghanistan.
According to the research, women entrepreneurs in Afghanistan encounter numerous hurdles and face high costs of doing business. Deep-seated discrimination and operational constraints, combined with a severely weakened financial system, have pushed 41% of the surveyed women into debt, with only a marginal 5% receiving loans from banks or microfinance institutions. Movement restrictions further compound these challenges, with 73% reporting the inability to travel to even local markets without a mahram (male escorting family member).
In a country where 15.8 mn people grapple with food insecurity and the employment rate for working-age female members of households has plummeted to 6% over the past year, women are devising strategies to confront these obstacles. Entrepreneurship has emerged as a lifeline for women and their families, with 80% of women-led enterprises relying on their business revenues as the primary source of income. Moreover, these businesses are crucial in generating employment opportunities for other women.
"Women entrepreneurs have demonstrated incredible grit, boldness, and resourcefulness under the most dire of conditions," stated Kanni Wignaraja, UNDP’s Regional Director for Asia and the Pacific.
The UNDP, alongside its international and national NGO partners, has supported 75,000 micro and small businesses, creating employment opportunities for more than 900,000 individuals, thereby benefiting more than 4.5 mn Afghans.
UNDP supports women entrepreneurs through integrated responses, providing direct access to finance along with various business support services such as training in financial literacy and business management, digitalization of operations, marketing and product development, and mental health support.
Stephen Rodriques, UNDP Resident Representative in Afghanistan, emphasized the role of women in sustaining local economies and household welfare, underscoring the necessity for international support. He highlighted the positive ripple effects of investing in women's potential, citing their courage and resilience as crucial factors in shaping Afghanistan's future.
The study also revealed that donor support and increased market demand are fostering business opportunities for women entrepreneurs, with 66% reporting growth in their businesses over the past year. However, challenges persist, with 32% citing gender discrimination as a barrier to market access and 28% facing difficulties in procuring supplies.
The study conducted by UNDP, in collaboration with REACH and the Economic Policy Research Foundation of Turkey (TEPAV), is one of the largest and most comprehensive examinations of the economic situation of women entrepreneurs in Afghanistan to date. It underscores the critical role of women in driving economic resilience and calls for sustained support to empower them further and foster inclusive growth.
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