Transcript Aspirations of Filipino Women Entrepreneurs in

Aspirations of Filipino Women
Entrepreneurs in the Informal
Economy
• “I just want to have food on the table when I come back
from school”
A little boy from Bagak, Bataan
• “I want my son to become an engineer”
A parent from San Pedro, Laguna
• “My teachers are my problems”
A secondary dropout from Samar
Motivation
aspiration
aspəˈreɪʃ(ə)n/noun
plural noun: aspirations
a hope or ambition of achieving something. (Oxford English Dictionary
1989)
"the needs and aspirations of the people"
desire, hope, longing, yearning,
synonyms:
hankering, urge, wish;
To aspire means “to seek to attain or accomplish a particular goal”
(Merriam-Webster 2012)
Aspiration defined
• a lack of proactive behavior to better one’s future can in
part be explained by constraints faced in the process of
forming aspirations
• The aspiration failure framework attempts to explain why
some poorer populations tend to invest less in their own
future, despite important potential returns. This lack of
investment can in turn be used to explain lack of
information, market failures, and low private
appropriation of returns, as well as identity issues and
psychological factors
Aspiration-failure-theory
Perspectives
Pessimism vs. Aspirations Failure
Aspiration
window
Aspiration level
and gap
Well-being
Aspiration
failure
Efforts to improve
Aspired
Current
influenced by the size
and composition of
one’s social network
𝑎−𝑠
, 0),
𝑎
𝑔 𝑎, 𝑠 = max(
Gap
Objectives
• To understand the aspirations of women entrepreneurs in the
informal sector
• To measure differences in entrepreneurial attitudes activity and
aspirations among women in the informal sector
• To study the consequences for entrepreneurial-oriented
behaviour of women (i.e.to invest in income-generating
activities) that is linked to the level of aspirations
• To determine the relationship of the aspirations of women and
the different developmental areas including poverty reduction,
investment patterns and socio-economic transformation
Research Questions
• Are there differences in entrepreneurial attitudes, activity and
aspirations among women entrepreneurs in the informal
sector?
• Is the aspiration index proposed in this study reliable and valid
in measuring the level of aspirations?
• What is the role played by aspirations in shaping entrepreneuroriented behavior of women in the informal sector?
• Is there a relationship between aspiration formation and rates
of return to investment?
• Is poverty affected by low levels of aspiration, i.e., do high
aspirations reduce poverty?
Background and Introduction
Informal Sector of the Economy
• Engaged in the production of
goods and supply of services and
can be household unincorporated
enterprises etc.
• Sub-sectors, among others: microentrepreneurs, home-based
workers, vendors, small transport
operators, petty retailers, barter
traders, small-scale miners etc.
• Informal sector provides 89% of
total employment (NSCB, 2013)
Filipino
Employment in
Different Sectors
Informal
Sector
Formal
Sector
Background and Introduction
Women Aspiration in the Informal Sector
• 33% in the informal sector are women
(NSCB, 2013)
• Exposure to low, irregular income and
wages, and poor working conditions
• Have very limited access to financing,
especially formal bank credit and high
fixed-cost of credit providers
• Understanding the aspirations that
women entrepreneurs have is of crucial
importance to designing policies in
developmental areas
• Aspiration formation can help
particularly in the informal sector, and
aid in enhancing programs that stimulate
depth of entrepreneurial activity.
Informal Sector
Women
Men
Data and Methodology
Data and Survey
• CBMS (2011) data as baseline data in profiling
• Randomly sampled women entrepreneurs drawn from the CBMS
sample in Tanauan, Batangas, one of provinces in CALABARZON,
where we can find 12% of the total labor force involved in the informal
sector, either self-employed or operators of own business
• For the pilot, five barangays were randomly sampled: Boot, Hidalgo,
Janopol Oriental, Pantay Matanda, and Laurel.
• Ten female household heads were randomly selected in each barangay
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•
•
wholesale/retail trade related workers, housewives
45-63 years old
Educational attainment: Elementary graduate – 1st year high school
Data and Methodology
Survey Instrument
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•
•
•
•
Instrument covering six dimensions
(income, assets, education, children’s
education, social benefits and social
status) aggregated with individualspecific weights to come up with an
aspiration index
Perceived minimum and maximum level
and the present status of this six
dimensions.
Two rounds of the survey three weeks
apart using the same questionnaires
Capacity of the proposed aspiration index
to predict entrepreneur-oriented
behaviour will be investigated.
Reliability of the instrument will also be
assessed variation in enumerators’
experience, change of mood of
respondent
𝐴𝑖 =
•
•
•
•
•
•
𝑘
𝑎𝑖𝑘 − 𝜇𝑘
𝑤𝑖𝑘
𝜌𝑘
i = respondent
k = dimension (income, assets, education,
children’s education, social benefits and
social status)
𝑎𝑖𝑘 = individual’s response on aspiration
question
𝑤𝑖𝑘 = weight assigned by respondent
𝜇𝑘 = sample mean for the responses
ρ𝑘 = standard deviation for the responses
Income
`
1 What is the maximum level of income that one can have in your community?
A
2 What is the minimum level of income that one can have in your community?
B
1 What is the level of income that you have at present? Please describe.
2 How do you rate in numerical rating your income at the present? (From a scale
of 1 to 10 with the minimum level 1 and the maximum level 10 as identified by
the respondent in set question A)
1
2
3
4
5
6
7
8
9
10
C.
1
What is the level of income that you would like to achieve in your life? Please
describe
2 How do you rate in numerical rating the income you like to achieve in your
life? (From a scale of 1 to 10 with the minimum level 1 and the maximum level
10 as identified by the respondent in set question A)
1
2
3
4
5
6
7
8
9
10
Sample questions
"Now I would like you to tell me which of these dimensions are the most
important to you. Here are 30 coins. Please distribute all 30 coins across the K
aspects that we have discussed, according to their importance. No coin in a
category means that you do not attach any importance to it. Many coins in a
category mean that you attach a high importance to it.”
Dimensions
Income
Assets
Education
Children's Education
Social Benefits
Social Status
No. of Coins
weighting each dimension according to the
value they attach to it.
“A bank representative came to you and offered to lend you
any amount of money you ask … "
1 How much would you ask for if the
loan were payable in 6 months?
2 How much would you ask for if the
loan were payable in 1 year?
individual’s potential demand
for credit to invest in family
business; short-run vs long-run
investments
How much would you ask for if the
3 loan were payable in 5 years?
How much would you ask for if the
4 loan were payable in 10 years? “
What type of investment would you
5 make if you were given the loan?
Follow-up question on “what type of
investment would you make if you
are given the loan?’
capacity of the proposed aspiration index to predict
entrepreneur-oriented behavior
• 1. Usability—Can the instrument be administered within
standard surveys? Are respondents willing to answer such
questions?
• 2. Reliability—Can the instrument be trusted to provide
consistent measures of aspiration on repeated applications? To
what extent are the obtained answers conditioned by
enumerators’ capacities, the questionnaire design, or both?
• 3. Validity—Is the instrument effectively measuring only
aspirations? Are the obtained responses in line with expected
determinants of aspirations and corresponding future-oriented
behavior?
Testing for relaiability, usability, and validity
• Finding at least one other female household, a peer of the
respondent in the same barangay with the same age group and
similar level of education
• recording of present mood (from being depressed to very good
mood) and perceptions of respondent at the time of interview
• Tests for reliability and validity requires administering the
same questionnaire to the same respondents 3 weeks after the
first interview (test-rest procedure, and with and without
change of enumerator)
• Anchoring issues with peer
Challenges
Research study
Step 1: Correlations – an aspiration module was
added to the CBMS questionnaire
Step 2: Measurement--An instrument was
specifically designed to measure various
dimensions of individual-level aspirations
and aggregate them altogether.
Step 3: Treatment
Step 4: Experiment
Step 5: Replications
Baseline survey (Aspiration and CBMS)
Treatment
 3 types of treatment
• Documentary
• Placebo
• Control
 2 levels of treatment
• Village-level
• Household-level
Follow-up survey ( ∆ Aspiration and ∆ CBMS)
Thank you