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Delegates of the 2nd Global Forum on Business Incubation provide their impressions from Hyderabad.
Zhu Hongyan, Tianjin Women’s Business Incubator, China
What is the background of TWBI and what is your mission?
Established in 2000, the Tianjin Women’s Business Incubator (TWBI) is a non-profit organization based in Tianjin, China’s third largest city. Back around the year 2000, many women in their mid-40’s were made redundant due to economic reform and mass restructuring. These are women who are not highly educated and have had one job their whole life (such as factory worker). TWBI was created to focus on re-training and re-skilling these women, and to assist them to start their own businesses.
China’s economic boom and dramatic rise in the number of the wealthy middle-upper class meant that there was a growing need in the service industry, for jobs such as housekeeping, taking care of the elderly, babysitting and cleaning. Also, in Tianjin, many schools do not have cafeteria, so there is a need for people who can cook and prepare lunch boxes for the students. These are jobs which do not require high-level education or skills, and were ideal for these unemployed women. TWBI started out by encouraging women to start their own businesses providing these type of services, and to leverage existing skills (such as sewing) by turning it into a business. TWBI helps by providing help by organising for free training courses for these women, how to market and promote their products on the web, general business management skills, microloan etc.
TWBI currently has a building area of 5,000 square meters with 48 on-site tenants and 10 off-site tenants.
How is TWBI different from other incubators in China?
There are over 400 incubators in China, but TWBI is the only one that is focused on women and unemployment.
How did you use the first infoDev grant?
We used the first infoDev grant to create a website for awareness, and to advertise/promote the products and services of tenants (for free). We also have an online discussion board where both tenants and non-tenants can ask questions. The website is key to matching our tenants with potential business leads.
The infoDev grant was also used to improve TWBI’s ICT infrastructure. TWBI’s offices only had a phone line, with few computers and no web access. So the infoDev grant was used to initially set up better infrastructure and facilities, and subsequently to train all the staff and tenants to use the computers and how to access the web to grow their businesses.
We also invited experts to deliver 4-5 training workshops and to organize a study tour for TWBI staff to go to Nanjing, Wuhan, Yangling and Xiaan. As the only unemployed woman focused incubator, there is no model or manual for us to follow. So we have to try to learn from different aspects of other organisations.
What have been TWBI’s successes since it was established?
To date, four companies have graduated. Directly, and indirectly, TWBI is responsible for providing employment opportunities for an estimated 2,000 people. TWBI offers clients start-up assistance, business training, and assistance to graduates. TWBI also facilitates an on-site micro credit program, which received seed funding from UNDP, and the Tianjin authorities. Operating at full capacity, TWBI has managed to develop near financial self-sufficiency by charging for office rent, business services and external training courses. TWBI has become "famous" in China, and is a destination for study tours from other incubators and potential incubators in the country and abroad.
What are some of the challenges that TWBI face?
The biggest challenge for us is that we are dealing with un-educated, low-skilled, older women. This is probably one of the hardest demographic groups to find employment for. We are not working with young, university-educated people who are in demand in the workforce and able to generate products/services that can earn a lot of revenue in the marketplace.
Difficulty in accessing the formal financial system is another daunting challenge. In China, banks will not lend to women who are uneducated and unexperienced. There are too many pre-conditions to meet. In China, the richer you are, the more likely banks will lend money to you. Banks will only lend to you once you have established your business and proven yourself.
In particular, small businesses face cashflow problems. They often have to pay out of pocket upfront for raw materials or goods, and will make money only when the final products are sold. Meanwhile, in between the purchase of the raw materials and the selling of the final products, they are in a tight financial situation.
Another big problem for us is (English) language. We need to improve this because we have difficulties communicating with other network members. We eventually get across our ideas, but it takes longer than it needs to.
What have you learnt at the Global Forum and what will you take back to share in China?
TWBI also sent a delegation to the the first Forum in Delhi two years ago. As we have received a lot of support from the Tianjin Government, we brought a representative from the Government to Hyderabad, so that he can see how much we are doing and how much attention is paid to the Incubator Initiative. The Forum was a good opportunity to network and to promote ourselves.
Following the last Forum in Delhi, a Thai business incubator came to visit us in Tianjin to learn about us. This time, there is another Thai incubator who is interested in focusing on women. So they may also come to Tianjin so that we can share knowledge and experiences. In Hyderabad, we also had the opportunity to interact with the Vietnamese CRC Incubator. They also expressed an interest in learning more about the issues associated with women entrepreneurs, while TWBI in turn can learn from our Vietnamese counterpart on how to garner private sector support. In this aspect, the Forum has been educational not only from the formal program, but also through the networking opportunities.
We also learnt a lot from the Indian and Ghanaian model. In particular, China and India have a lot in common. We have similar problems and similar challenges, and it is useful to learn more about how India is dealing with the issues that we are also struggling with in China. I hope to use email to get in touch with the regional incubators to ask them more questions.
What role do you see TWBI playing in the Asia regional network?
The main role that I see TWBI playing in the Asia Regional Network is through networking and sharing with the other Asian incubators. We have attended the Vietnam and Manila workshops, and will continue to participate in these activities.
How can infoDev help TWBI going forward?
From infoDev, the most help we need is capacity building. For example, we want to create a free manual for small entrepreneurs on how to create web-based businesses. There are e-business guides for bigger businesses, but none which are really basic and tailored to start-ups. In China, e-businesses are just starting to take off, and mostly it is the younger people who know how to use the web. The middle age, and especially women, do not know how to capitalise the web to help their business – partly out of fear and partly due to lack of knowledge. So we think the manual would be very useful to these women entrepreneurs. infoDev’s support in providing us with capacity building will help us tremendously with pursuing these types of initiatives.