Female entrepreneurs still facing numerous challenges – Is it possible to achieve equality in business?

In the past decade, the position of women in business and the society has improved significantly, but obstacles still exist. From complex administrative procedures to unequal funding conditions, female entrepreneurs face obstacles that require systemic solutions. Female entrepreneurs from rural areas are particularly at risk, as they face additional legal and financial restrictions.

According to Violeta Jovanovic, the executive director of NALED, significant progress has been made in recent years, such as the simplification of the process of realizing the right to maternity benefits, which has reduced the administrative burden from 86 documents to a much lower number.

– An increasing number of women occupy management positions, the legislative framework that protects their labor rights has been improved. NALED has contributed to simplifying the process of realizing the right to maternity benefits, reducing the extensive administration of as many as 86 documents. Amendments to the Law on Cadaster in 2019 made it possible for property acquired in marriage to be equally registered to both spouses. Also, the organization I lead worked on the adoption of the Law on Social Entrepreneurship in 2022, which creates a framework for supporting vulnerable groups, including women – our interviewee points out.

However, a lot of work still remains to be done and challenges remain, especially for female entrepreneurs who are mothers.

Mother entrepreneurs facing twofold challenges

According to the current laws, explains Jovanovic, female entrepreneurs have two options for receiving compensation during temporary incapacity for work. They can either temporarily close the company and thus exercise the right to full compensation, but with the risk of losing clients, or continue with the business with the appointment of a manager, which brings them only 50% of the compensation and additional costs.

– The first option implies a temporary interruption of business, which would allow them to realize the right to full remuneration, but with the risk of losing clients and making it difficult to continue the business. The second option allows for the continuation of work with the appointment of a manager, which leads to a reduction of compensation for maternity leave and leave for child care to 50%, with the obligation to pay taxes and contributions – eKapija’s interviewee explains.

Additionally, the Law on Financial Support for Families with Children does not guarantee female entrepreneurs a minimum compensation during a maternity leave.

– This means that the salary can be lower than the minimum wage. Also, during the maternity leave, female entrepreneurs are not required to pay contributions for social insurance, which means that their years of service don’t count, unless they continue to pay contributions for themselves – Jovanovic points out.

These legal frameworks not only put female entrepreneurs in an unequal position compared to working women, but can also discourage women from engaging in entrepreneurship.

– NALED is advocating for amendments to the law whereby female entrepreneurs could continue working during the pregnancy and maternity leaves with the appointment of a manager, while receiving full salary compensation. Also, it should be ensured that their years of service are not interrupted and that they receive at least the minimum wage during their leave, as is the case with mothers employed by the employer – he adds.

As many as 92% of women in rural areas do not own even a square meter of land

The position of women in the countryside is further aggravated by the lack of property ownership and unpaid work.

– The position of women in the countryside has not improved in proportion to other things that have improved in society. Instead, with the abandonment and insufficient investment in rural areas, it has become more complex and difficult. There is a lack of systemic solutions for their empowerment so that women would be provided with stability, encouragement and a sense of security – warns Jovanovic.

She adds that surveys conducted by NALED earlier show that 92% of women in rural areas do not own even a square meter of land, and three out of four women in the countryside work without any financial compensation. In order to support them, the Ethno Network was launched, which helps women to translate their traditional skills into recognizable products and provide themselves with additional income.

– We are trying to change that. These women have numerous skills that can help them generate income for themselves, that’s why we formed the Ethno Network. It transforms women and young people in the countryside into professionals, who, with the help of the network, can create a product that will be placed on the market. They can do what they like, supplement the household budget and change the image of themselves in their environment, which affects their self-confidence and sense of self-worth – says the executive director of NALED.



Lacking financial support

Although women in Serbia make up about 30% of the owners of entrepreneurial shops, only every fifth company that receives funding at tenders belongs to women.

– This threatens to further reduce women’s participation in the economy and contribution to economic development. The analysis shows that the competitions are equally open to both men and women, but that there are a number of restrictions that indirectly discriminate against women, which is why men are more often supported. The obstacles that women encounter are most often set in the conditions of the competition, because they are criteria mainly aimed at allocating money to processing and export activities, where women are traditionally less represented. Also, the programs are most often open to companies, while women are more inclined to establish entrepreneurial businesses. Ownership of real estate is often required, as well as a means of security, all of which combined eliminates the majority of women, given that women own only 24% of real estate in Serbia – explains Jovanovic.

How can things be improved?

NALED, our interviewee points out, is planning to continue fighting to improve conditions for women in business through proposals for legal changes, funds to support female entrepreneurs and mentoring.

– We plan to strengthen the dialogue between the private and public sectors, develop educational programs and provide mentoring support for women in business. All these activities will be implemented within the framework of the Small & Powerful project, which we are implementing with the support of the British Embassy. Also, we are pleased to announce that within this project this year we will award five grants in the amount of 10,000 pounds each for small businesses run by women – announced Jovanovic.

In addition, through the Small Business Council and the Women’s Standing Committee, work will be done to remove administrative barriers and encourage leadership among women.

– The Small Business Council and the Women’s Standing Committee will work to remove administrative barriers and mitigate the stereotypes that often hinder women from achieving leading positions in society. The project will connect women leaders, create professional networks and provide funds to improve their jobs and careers. We want to create mechanisms of systemic support that will enable women to assume an even more significant role in the economy and public policies – concludes the executive director of NALED.

I. Zikic

NALED Beograd

Etno mreža Beograd

Ambasada Velike Britanije Beograd

NALED

British Embassy

Violeta Jovanović

female entrepreneurs

mother entrepreneurs

Ethno Network

Small Business Council

Women s Standing Committee

Small and Powerful