SINGAPORE: The Oversea-Chinese Banking Corporation (OCBC) has announced its Women Entrepreneurs Programme, aimed at empowering women-led start-ups in Singapore, The Edge Singapore reports. The programme, announced on Mar 8, coincides with International Women’s Day.
Supporting Women Entrepreneurs
Under the new programme, OCBC will waive processing fees on loans of up to S$100,000 for start-ups that are less than two years old and founded by women. This initiative marks the first of its kind by a Singaporean bank.
Scheduled to roll out in April, the Women Entrepreneurs Programme will remove the 1.5% “facility fee” previously levied on approved loan amounts. It is expected to provide a considerable financial boost to women-owned businesses, facilitating their growth and development in the competitive market.
The programme builds upon the success of a similar initiative managed by OCBC Indonesia, which has supported over 1,400 women entrepreneurs with more than S$300 million in loans disbursed since its launch in 2020. Drawing on this experience, OCBC aims to replicate its success in Singapore, where women-owned SMEs have historically faced challenges in scaling their businesses.
Recent data from OCBC’s Singapore branch revealed that women-owned SMEs registered 20%-30% lower growth in sales turnover within the first three years of operation compared to their male counterparts.
However, there has been a noticeable increase in the percentage of newly-incorporated SMEs founded by women, rising from 23% in 2018 to 30% in 2023.
At a media briefing held on Mar 4, Linus Goh, head of global commercial banking at OCBC, emphasised the programme’s broader goal of advancing the socioeconomic status of women in the economy.
Mr Goh highlighted OCBC’s commitment to providing educational workshops and networking opportunities to empower women entrepreneurs further.
Currently, a quarter of OCBC Singapore’s SME customers are owned by women entrepreneurs.
While the programme aims to support women-owned businesses, Mr Goh noted that OCBC does not have a specific numerical target in mind. Instead, he expressed confidence in the programme’s ability to drive positive change and increase the representation of women in the business sector.
Mr Goh acknowledged potential “pushback” from individuals who may not directly benefit from the programme, saying, “Quite often, when we talk about doing something for women entrepreneurs in Singapore, or for women in Singapore, it’s not uncommon to get some degree of pushback. The pushback comes because the women in Singapore are already very empowered, very capable [and] very successful.”
However, he highlighted that “stats don’t lie.”
He said, “Women still represent a smaller proportion of the economy. If they are 30% of the overall economy, men are almost three times larger.”
Beyond Singapore
OCBC’s focus extends beyond Singapore’s borders, with Mr Goh highlighting the programme’s aim to help women entrepreneurs venture into international markets.
Despite the opportunities presented by global expansion, Mr Goh acknowledged the challenges faced by women in breaking norms and establishing themselves in male-dominated industries, pointing out, “that’s what we want to be able to empower and support.”
The announcement of the Women Entrepreneurs Programme was met with enthusiasm from SMEs partnering with OCBC.
SMEs partnering with OCBC speak up
Sharon Lim, chairperson and former CEO of Browzwear, a global 3D fashion design platform, praised the initiative for its potential to empower women entrepreneurs and foster sustainable growth in the business community, highlighting that her team comprises 58% women.
She noted that although women in leadership roles are not as welcomed in some countries, in this generation, it is “less of a problem.”
She shared that there is an “innate expectation” in Asia “that a woman will come and soak up all the problems at home,” and women shoulder these expectations.”
“I have confidence that the OCBC Women Entrepreneurs Programme will support other women-owned businesses to succeed and thrive,” she added.
Another beneficiary of OCBC’s support is N&E Innovations, a med-tech company founded in 2020. Founder Didi Gan highlighted OCBC’s role as a catalyst for women entrepreneurs to thrive in sustainable initiatives.
She said, “I’m confident that with this programme, more women founders can gain access to vital financial support and a robust network of mentors and resources, empowering them to overcome challenges.” /TISG
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