“Gender and equality in public procurement” refers to the integration of gender perspectives and the promotion of equality in all stages of procurement processes. This involves ensuring fair representation of women-owned businesses, promoting women’s economic empowerment, and addressing gender disparities in access to procurement opportunities. Effective implementation requires incorporating gender-sensitive criteria, policies, and monitoring mechanisms to create inclusive and equitable procurement practices.
Small and Medium Enterprises (SMEs) and women-led SMEs (WLSMEs) play critical roles in economic growth and development. However, the share of public procurement contracts that are won by SMEs, especially WLSMEs, remain low. Only 1% of the $11 trillion spent annually on public procurement is awarded to women-owned businesses.
WLSMEs face administrative, financial and procedural challenges in accessing and participating in public procurement markets, due to the complexity and costliness of procurement processes.
Several countries are implementing policies specifically geared towards lowering barriers to entry for WLSMEs, as evidenced by the initiatives in Kenya, Senegal, and Scotland as well as initiatives taken by the World Bank’s own Corporate Procurement.
What is a woman-led business?
- As defined by a 2020 Open Contracting Partnership report: Towards Gender Balance in Public Procurement
- ≥51% ownership/stake by a woman/women; or
- ≥1 woman as CEO/COO (president/vice president); or
- Women sole-proprietors
Women in Public Procurement: Barriers
- Globally, women led businesses continue to receive a minority of government contracts.
- Common barriers cited by women:
- Comparative deficiencies in capital
- Structural/societal inequality
- Business size
- Lack of transparency/connections
Incorporating gender and equality considerations into public procurement involves several key aspects:
Equal Representation: Efforts should be made to ensure fair representation of women-owned businesses and enterprises owned by other marginalized groups in procurement processes. This can be achieved through targeted outreach, providing support and resources for women entrepreneurs, and setting aside contracts specifically for disadvantaged groups.
Women’s Economic Empowerment: Public procurement can be leveraged to promote women’s economic empowerment by actively seeking out and supporting women-owned businesses, providing capacity-building programs, and offering mentorship opportunities. This helps women gain access to markets and opportunities they may have been previously excluded from.
Gender-Sensitive Criteria: Procurement criteria should be designed to be gender-sensitive, taking into account the unique challenges and needs of women entrepreneurs. This may include considerations such as flexible payment terms, childcare support for business events, and access to networks and resources that facilitate business growth.
Policies and Monitoring: Governments and organizations can implement policies and guidelines that explicitly promote gender equality in procurement. Additionally, monitoring mechanisms should be established to track the participation of women-owned businesses in procurement processes and to assess the impact of gender-sensitive policies.
Capacity Building: Providing training and capacity-building programs for procurement officials on gender equality and diversity issues can help ensure that procurement processes are conducted in a fair and inclusive manner. This includes raising awareness about unconscious biases and providing tools and resources to support gender-responsive procurement practices.
Overall, integrating gender and equality considerations into public procurement is essential for promoting inclusive economic growth, reducing gender disparities, and advancing sustainable development goals. By adopting gender-sensitive approaches to procurement, governments and organizations can create more equitable opportunities for all stakeholders and contribute to building more resilient and inclusive economies.
