Covid-19 Relief Grants for Women Entrepreneurs
Challenges
At WELL, we strongly believe that micro and small businesses are the backbone of a healthy economy. Therefore, we need to support micro and small businesses as much as possible during this critical time of the pandemic. Micro-enterprises and small businesses play an essential role in boosting economic growth, with 65 percent of businesses in Cambodia identified as micro and small businesses run by women. The COVID-19 pandemic threatens the survival of micro and small businesses. Many of them have faced crises, including a lack of cash flow, financial instability, individual and family health issues, emotional breakdowns, and business closures. During our meeting, many women who own micro and small businesses expressed their concern about declining sales, operational challenges, personal and family stresses, and a lack of cash flow. Therefore, they truly need support to get back on their feet again.
Interventions
Under the WE Act Program, WELL selected 40 Young Women Entrepreneurs (YWEs) who owned micro and small enterprises affected by COVID-19 and were in dire need. WELL provided small grants ranging from 300 USD to 1000 USD in cash or equipment, depending on their needs assessment. Participants who were not members of LSG also received an additional 82 USD in funding to become one-year LSG members and gain access to the available resources that LSG currently offers. These 40 YWEs were selected from Lady Saving Group members, Saving Group Federation, Partners (IDEA/API), other informal women entrepreneur networks, and the public through a critical and fair selection and assessment process.
Results:
“WELL really helped me a lot both mentally and financially. 700 USD is not a big amount of money, but it truly changed my entire life. Without this grant, I couldn’t afford the larger oven and mixing machine while I was hesitating whether to continue my business or give up. Without the support from WELL, I would never have reached this…” expressed Ms. Huo Sokhuoy, Founder and Owner of Pa Pa Cafe.
Sokhuoy owns Pa Pa Café located near a private school where the majority of her customers are students. During the COVID-19 pandemic, all schools were closed during lockdown, greatly affecting her business. She and her husband did their best to find ways to survive, reaching out to different target customers beyond the student population. They developped their products to meet customer needs.
Through WELL’s small grants, gained new hope by purchasing a larger oven and mixing machine. This equipment Sokhuoy enabled her to increase her production capacity significantly. As a result, she was able to sustain her business while increasing sales with new target customers as well as business partners (B2B).
What's next?
Regardless of the economic situation, access to finance remains a significant challenge for micro and small enterprises, particularly those owned by women due to their lack of opportunities, as the majority of them operate informal businesses. This is why Access to Finance is one of WELL’s strategic plans. WELL continues to strive to provide financial support to these grassroots beneficiaries, contributing to their business development.
