CIPE is making significant strides in creating a more supportive business environment for women through its “National Women’s Business Agendas for Central Asia” project. Due to persistent advocacy by the Coalition for the Development of Women Entrepreneurs, the Kyrgyz Parliament is on track to adopt a legal definition of “women’s entrepreneurship.” This landmark decision will boost support and improve access to financing for women entrepreneurs.
CIPE’s Impact through Women’s Business Agendas
Under the U.S. Department of State’s Women and Girls Empowered (WAGE) program, CIPE’s “National Women’s Business Agendas for Central Asia” has supported over 100 women’s business associations and civil society organizations across Central Asia from 2021 to 2023. As part of this initiative, the Coalition for the Development of Women’s Entrepreneurship in the Kyrgyz Republic, known as Demilgeluu Aiymadar, was established in 2022. Today, the Coalition includes 31 members representing 41,535 women nationwide, including women’s business associations, civil society groups, and sectoral business associations.
With CIPE’s ongoing support, the Coalition has emerged as a leader in shaping economic policy and advocating for legislative reforms to support businesswomen and women entrepreneurs, using CIPE’s enduring National Business Agenda (NBA) methodology, adapted from the US Chamber of Commerce model. NBAs identify laws and regulations that hinder business activity and provide actionable recommendations for reforms to improve the business climate. The first Women’s NBA, launched under WAGE in the Kyrgyz Republic, Kazakhstan, Uzbekistan and Tajikistan contributed to the success of the B5+1 Forum. The women’s business coalitions established with CIPE’s support have gained a strong reputation and actively participate in B5+1 working groups, continuing to influence policies and promote a more equitable business environment in the region.
Achieving an Advocacy Milestone
On September 19, 2024, the Coalition achieved a significant advocacy milestone when the Parliament of the Kyrgyz Republic approved, in the first reading, amendments to the “Law on the Protection of Entrepreneurs’ Rights,” which included the Coalition-supported legal definition of “women’s entrepreneurship.” According to the Coalition’s Coordinating Council, enshrining this definition in law will:
- strengthen government support for women entrepreneurs, by improving access to finance and boosting women’s employment opportunities in the economy;
- help formalize the businesses of women entrepreneurs through better statistical tracking, helping them transition from the informal to the formal economy; and
- encourage financial institutions to increase funding for women entrepreneurs. A gender-responsive transformation of the Kyrgyz Republic’s financial sector could unlock nearly $431.5 million in annual revenue (IFC, 2022).
The recommendation to include a legislative definition was originally developed with CIPE as part of the Women’s National Business Agenda, in collaboration with WAGE consortium members. ABA ROLI and Search for Common Ground also contributed evidence-based recommendations to the government. This collective effort has sparked a major shift for businesswomen in the Kyrgyz Republic, expanding opportunities for networking, knowledge sharing, and building solidarity among women and their allies across the country.
Closing the Gap
Despite making up half of the Kyrgyz Republic’s population, women’s economic participation in 2022 was only 43.1%, compared to 71.8% for men. Women hold just 28.6% of managerial positions in private enterprises, with even less representation in larger businesses. The gender wage gap is also significant, with women earning only 75.1% of what men earn. These disparities underscore the untapped economic potential of women, hindered by systemic barriers and insufficient government support. The lack of a clear legal definition of “women’s entrepreneurship” further limits access to essential incentives, such as tax breaks and low-interest loans, which are key to fostering inclusive business growth.
In response to these barriers, the Kyrgyz Republic launched the State Program on Support and Development of Women’s Entrepreneurship 2022-2026, as part of its National Development Program to advance women’s entrepreneurship. A key legislative focus is preventing gender discrimination in financial services, such as loan issuance. However, the lack of a specific legal definition of “women’s entrepreneurship” hinders effective implementation and restricts access to financial resources for female entrepreneurs. Current legislation also fails to account for “self-employed” individuals, leaving many women who own micro, small and medium-sized businesses — often in informal sectors — without adequate support.
Comprehensive state support and a systemic approach are crucial for fostering women’s entrepreneurship and empowering women economically in the Kyrgyz Republic. The Coalition’s efforts to secure the adoption of a legislative definition for “women’s entrepreneurship” will help create a more inclusive business environment, unlocking the full potential of women entrepreneurs across the country.
Published Date: October 10, 2024