HERA’s Special SARS COV-2 competition, launched in early April, proved the strength and resilience of the HERA women entrepreneurs in Armenia, Georgia, Moldova, and Ukraine. The vast majority of our grantees are finding creative ways to respond to a “new normal” while actively supporting their employees and communities. As reported in our special report, all four countries, as in the rest of Europe, were affected by the virus and locked down in March.
Many grantees expressed appreciation for HERA’s Special Competition and for “remembering us” in these hard times. By the April 26th deadline for responses, HERA had received 52 applications from women entrepreneurs in the four countries. Eight reviewers from France, Germany and the UK selected three prize winners, who are receiving awards of EUR 300, 200, and 150. Given so many thoughtful responses in English and the grantees’ languages, the HERA team awarded an additional eight honorable mentions (EUR 100 each). Four HERA France Association members funded the awards to save GlobalGiving donors’ funds for the 2020 Annual Grants Competition this summer.
Learning about the challenges and negative impacts of SARS COV-2 on grantees’ ventures is useful for designing the upcoming 2020 competition and assessing this year’s ventures. Besides the personal, psychological, and financial hardships that many women are facing, especially those whose businesses are closed, other challenges to economic survival include:
Armenia and Ukraine also have had conflicts on their borders during this period. All four countries have imports and export deliveries held up at international borders.
The industries worst affected are not surprisingly: (1) services (tourism, beauty salons, restaurants, schools and language programs); (2) manufacturing that depends on supplies and inputs from other regions; and (3) commercial (but not subsistence) agriculture. All ventures dependent on trade are suffering. Cross border and even internal trade of many essential goods has slowed and in some cases, ceased. As a producer in Artsakh (Nagorno Karabakh) observes, she can no longer even send her products to the Yerevan market.
The women entrepreneurs have developed short- and long-term strategies to respond to the COVID impact on their ventures. One consistent strategy is producing for local markets and consumption. Armenian and Ukrainian owners of tourist ventures are developing local packages for different age groups and targeting a “Domestic”market. Using a similar strategy for a different industry, a greenhouse producer reports:
our greenhouse was full of vegetables. Some of them were grown on contract. We expected high returns. But when those companies were banned, we faced the fact. We delayed the salaries for 2 months. With the help of our employees, we collected the harvest, made baskets and distributed them to all the residents of the community several times. We decided to help our fellow villagers and sow their cabbage seeds in our greenhouse for further planting.
As this producer, several venture owners are taking a social enterprise approach and working collectively with local communities to respond to the virus impact. Our first prize winner, Orran, an Armenian NGO, reports:
We are providing food packages to more than 200 poor and needy families and 90 lonely elderly as well as provide them online psychological and counseling support. These people are the most vulnerable groups who need our support especially during this period. Some of them are losing their homes as they are not able to pay for the rent, or unable to pay for the utilities. We do our best to seek funds to cover all of these needs.
Several women are retooling companies to diversify and/or produce essential goods during this period. A Georgian vintner focuses her wine sales on high-end, international customers. However, with food shortages in the local market and to diversify production, she reports:
We decide to plant our 4 hectare this year with different crop – Beans on 2 hectares, potato, tomato, corn to the other 2. It will give us a possibility to keep 4 ladies to work and even to get 2 men + tractor driver for job.
An Armenian dried fruit exporter has also shifted to selling fresh fruits in the local market. Small factory/atelier owners in Armenia, Georgia, and Moldova moved from producing school uniforms, cotton home textiles, clothes and neonatal products to masks and protective equipment. Some distribute masks to elderly people free-of-charge. An architect in Ukraine uses the printer that HERA provided to produce “forms, instructions for doctors, informative booklets about the fight against the virus”, for hospitals and other medical institutions. A Ukrainian photographer of children is using her skills and services for “reportage shooting for foundations, which help people who are going through the hard times.”
Another strategy to attract local customers by decreasing prices while maintaining profit margins is lowering input costs. An Armenian jeweler, who previously sold internationally, reports that “our company will have problems with decreasing demand for jewelry. To solve this problem, we plan to start producing jewelry made of wood and stones.” The same company, and several others, to stay afloat and keep all employed temporarily cut salaries across the board by 50%.
A Georgian restaurateur stays open by using Uber for home deliveries but plans to decrease costs by organizing bicycle deliveries. A successful Armenian butcher, who previously sold high end products nationally, writes:
we help our employees and do not leave our customers hungry. We will not raise the price, moreover, every day we think about creating cheaper products more available to people. If this situation continues, we will sell goods at cost, but we will not make money on the misfortune of our fellow people.
Several venture owners added new product lines to reflect the changing demands. An Armenian natural cosmetics venture keeps all legally employed by producing sanitizing lotions. The third place winner, an Armenian beekeeper, keeps her team working with protective equipment (made by another HERA grantee); and as she reports, “For the first time we sell the people propolis tincture and have fantastic feedback. It helps people to be protected from viruses and bacteria and enhances the immune system.”
Women leaders in manufacturing, food production, and educational and social services, have moved workplaces into people’s homes and/or online. A sewing venture owner observes:We thought that if our employees could not come to the workshop, the workshop could go to their house.” A tailor, who also moved her atelier to home production, supports employees by organizing online discussions and education
A Ukrainian NGO, and second place recipient, reports adapting its program by going online:
Creative Quarantine is not educational, but rather supportive and engaging. The slogan of this project is “You are not alone”. Since late March, we have already had 25 daily Facebook-lives (30-minutes long). The topics vary from taking care of your mental health during the pandemic to crisis management during the lockdown (other examples of topics: how to balance your work from home and childcare, creative writing as a self-help tool, social activism during the quarantine, how to support local brands during the lockdown, how to overcome the fear of losing your job, etc.). We invite both experienced female speakers and those who have never done webinars. We have planned 80 speakers and lives on Facebook until June 2020.
Several ventures -- a jewelry store, fashion house, and gift shop -- moved to or expanded online marketing; others offer English and arts education online courses; and a former toy producer provides digital books for parents and children to make their own toys. A café owner organizes home deliveries of her coffee and roasted beans.
A few changed their business completely. With her café closed, a young entrepreneur and her mother have organized a sock business for women to knit in their homes. A hotelier of a small guest house for international clients is opening a pub for local customers instead.
A few women are using this time to prepare their business for a new normal. A Moldovan beauty salon owner, reports: “I am already prepared with disinfectants, protective masks, I am ready to respect all the hygiene rules. I am waiting for the announcement from the ministry that we can open the business.” Many are essential frontline workers and cannot afford to wait. They have adapted production, as an Armenian baker reports by “disinfecting operations, staff wear special equipment, limiting contact with the outside world, and keeping to the rules.” A tea manufacturer writes:
we have rented 2 areas so that we can carry out the packaging, now in 3 different places, so that there is no big accumulation of employees, they work in groups of 3-4 people. We will do the work at great expense.We have decided not to make reductions and to work for a while with a deficit, but to keep people's work, because in these conditions they need this job, money.We have to buy new uniforms, gloves and other accessories for 17 employeesfor 2 month, which can cost $ 500-570.However, we will keep the jobs, already having big losses for this year
HERA’s premise is that support to women entrepreneurs is the best way to create employment and prevent dangerous migration and trafficking. These women are proving their commitment to their employees and communities in hard times. Thank you for your support to them!
All four countries report case and death rate trends that mirror those in the rest of Europe. Although national borders are closing everywhere, migrants, displaced, and refugees, who constitute a number of our grantees in all four countries and are the backbone of many economies, are having to return or move on.
Armenians also report renewed conflict on their Azeri border and food shortages as Russian trucks are delayed at the Georgian border. Some greenhouse producers can no longer bring their products to market. Moldovans have family members who were working in Italy and had to return quickly. Georgians were exposed from their international trade and tourism, and quickly had to cancel direct flights to Wuhan. As elsewhere, coronavirus spread quickly and most cases now are from community transmission. A Ukrainian compares the current public hesitation to respond to this new threat to the 1986 Chernobyl disaster, where the impact was initially invisible but eventually dramatic. Ukrainians, who recently lived through TB and measles epidemics, and conflict, may not have initially realized the extent of this new threat. Throughout the region, social isolation and lockdowns are officially in place. As everywhere in the world, this pandemic is having a negative economic impact. Many ventures have had to close and many entrepreneurs and their families are struggling.
Response
The main objective of this small competition is for the women entrepreneurs to share positive experiences and strategies for coping with this virus. Unfortunately, for some, we have already heard that even our small award amounts are needed. The Announcement went out in early April and already we have over a dozen responses. Deadline for submissions is April 26.
The Yellow Scarf in London, UK
When a woman successfully completes the London summer entrepreneurship training, she receives a yellow chiffon scarf embroidered with HERA’s monogram. Mentors, trainers, donors, staff and other friends of HERA also wear the scarf, signaling a community that supports women’s entrepreneurship to prevent trafficking. A woman’s scarf in the business world may be considered the equivalent of a man’s tie. The scarf’s vibrant yellow adds color and life to business attire. These scarves are made by women entrepreneurs and to date, have been produced by a women’s small business in Cairo, a women’s atelier in Chisinau, two women graduates in the UK, and most recently by a fashion designer/entrepreneur in Yerevan. When you see the yellow scarf at a business meeting, a member of the HERA community is there.
The Beekeeper in Armenia
A young woman beekeeper developed “Bee Life”, a company that sells honey and bee products, including beeswax candles, cosmetics, and medicinal/herbal remedies. The beekeeper also works with several women, who work at home and help in making the bee products and packaging. HERA helped the beekeeper buy an oven, beeswax sheet making machine, and four new hives. Given a decline last summer in honey production due to extreme climate conditions, the beekeeper decided to organize a cooperative of women honey producers. She provides each member of the cooperative a hive and instructs her in its care and maintenance. The women in turn supply honey for the cooperative to sell and to develop their bee products. The beekeeper, who has become a mentor to many young women entrepreneurs in her town, explains her passion for supporting others:
“I will never go from Armenia. This is my town. I want to open a social entrepreneurship business for women. I want to make classes for beekeeping for women so they will produce honey. I want our town to become an apiary center. Our beekeepers are women whose husbands have gone to Russia.”
The Early Childhood Director in Tiraspol, Transnistria (Moldova)
A mother in Transnistria concerned about a lack of high quality, preschool education for her own children, started a Montessori school with a woman partner in 2017. She had previously studied in Alabama, USA and through contacts there, she obtained support from an American Montessori program. The American program provided her with teaching materials. The two women rented and renovated a two-story building with outside space for their school. They offer baby clubs, on-site childcare, and a morning pre-school Montessori program. In a country where education is free, their school meets a growing demand for quality early childhood education. Thus, they are able to meet their costs, train additional young women to be teachers and pay the teachers’ salaries. HERA provided this Early Childhood Director with a projector, printer, and some chairs.
This Winter Update provides a few reflections and stock taking of HERA’s work that informs our directions in the coming decade. The HERA community, including many generous donors, works to prevent young women’s economic exploitation and slavery through supporting women’s entrepreneurship and employment. Counter trafficking programs traditionally address demand-side factors – law enforcement, information campaigns, and supply chains. In contrast, HERA focuses on young women themselves, who are at risk. By supporting women’s entrepreneurship and economic autonomy with grants, training, and mentoring, together, we believe that we can counter some of the major factors leading to economic exploitation and slavery. In so doing, we witness firsthand how young women survivors, with their demonstrated strength and resilience, and women entrepreneurs in regions with high rates of migration, gain economic autonomy and improve the economic welfare and status of many women in their communities.
Since 2005 HERA has organized entrepreneurship and mentor training beginning with our first programs in Belgrade and since 2008, with Imperial College in London. Over the years, HERA has trained 1026 people in eight countries – 624 in entrepreneurship and 402 in mentoring. This past year, the HERA UK teams, who to date have trained 343 women in London, added 18 new young women survivors and their mentors. In this past quarter, the 2019 women graduates and their mentors have continued to attend and actively participate in Wednesday Wisdom’s business seminars organized with private sector partners. At AmEx, the women were trained in social media, marketing, and public speaking. Salesforceprovided the graduates with a session on “Negotiation Skills” and for three of the HERA leadership team, a workshop on “Mentoring for Good”. Salesforcealso hosted the annual HERA UK holiday party.
A survey of 17 of 18 respondents from the 2019-20 cohort of “HERA women” found that eight are studying full time, nine are volunteering (seven in the charity sector and two in the private sector), and 14 are actively working with their mentors on a regular basis. One has found paid employment as a caseworker. Since most are in limbo about their status and awaiting an immigration decision, these data of their activities are especially impressive.
Each year we appreciate hearing some of the good outcomes from the HERA network of graduates, organizers, and mentors from past years. This year a HERA graduate just had her short story published in Ambit, a London literary and arts magazine, that has helped the careers of several famous writers since 1959. Other graduates report having employment they enjoy at Xeroxand John Lewis. An artist has had several installations and is showcasing cutting edge pieces online. Former HERA organizers are working for Facebook, a major London foundation, and for refugee organizations. Several organizers, mentors, and graduates have launched ventures. Thus, on 1stDecember 2019, HERA UK launched the “Charitable Sandhu Foundation Award” to provide grants to four HERA alumna ventures in the UK.
Beginning in 2010, HERA also launched the first international grants program in Georgia and Armenia. Since that time, HERA’s volunteer assessment teams have provided 315 grants in five countries. In 2019, following the 7thAnnual International Competition held online, four HERA teams provided grants with an average size of $666 (ranging from $68 to $1070) to 62 women entrepreneurs in Armenia, Georgia, Moldova, and Ukraine. Two teams, with local partners and former grantees, also provided entrepreneurship training in Kyiv and Yerevan for over 60 women entrepreneurs. Traveling far and wide, each team visited women’s ventures in agriculture, food processing, architecture, the arts, manufacturing, education, retail, and services. Together with the women entrepreneurs, many of whom contributed to the purchase, the teams then bought several overlock sewing machines, a freezer, loom, pottery wheel, wine casket, computers, etc. for the successful applicants to “grow their ventures”.
The HERA grant impact goes far beyond the award size. Many women report that the award is the first time that all the hard work and risks they have taken to launch their ventures, are recognized. With the award, the women entrepreneurs often decide to reinvest some of their own funds to purchase more equipment and grow further. All commit to do their best to train and employ other young women at risk. Those with ventures in remote villages, in regions with ongoing conflict, in internally displaced person/refugee settlements, and in post-Soviet industrial by-gone towns, have attested that their entrepreneurship is making a difference not only to their own families, but also to young women at risk of dangerous migration and trafficking. This year alone, the 62 grants will help maintain and/or create 81 jobs in the four countries.
With the financial and in-kind support of a few companies, several hundred individuals, and two private foundations, HERA remains highly cost-effective. In 2019, our grants, training, and mentoring program expenditures totaled $95,228 - - $45,935 for the UK and $49,293 for the International Grants organized by the HERA France Association. That total represented an average cost of $2,552 for each UK women survivor to receive intensive entrepreneurship training, a year of regular business seminars, and a trained mentor. HERA UK also maintained its 4% overhead for all its administrative costs. Likewise, the HERA France Association provided 71% of its funding for the grants, 2% for entrepreneurship training, 25% for assessment costs, and the remaining 2% for administration (bank and accounting fees, and insurance). This ratio makes HERA one of the most cost-effective, small business programs in the sector.
In the coming decade, we plan to increase and grow the impact of HERA’s work both at home and abroad. We are pleased that others are taking up variations of the HERA model in their own organizations. However, continuing this approach depends on the efforts and contributions of the entire HERA community. Thanks to the generosity of many friends, colleagues, and anonymous contributors for the 2019 End-of-Year Campaign, we can already plan for our 2020 Grants Program, Mentoring, and Training. But we are only 50% of the way to continuing this same level of effort. Please consider supporting us in GlobalGiving’s Upcoming Girls’ and Women’s Campaign. Your support goes far! For supporters in London, please join us at this year’s, International Women’s Day Event. Thank you all once again.
As we head into the last days of 2019, the HERA team would like to update you on our activities and accomplishments this past year that you have generously supported.
With your support, we were able to:
Your support for this year alone allowed HERA UK to:
and the FRANCE ASSOCIATION to:
What follows are three accounts of where your support this year has made a difference:
Why HERA?
From 2005 to the present, HERA UK and the France Association, with the aim of preventing some of the most egregious forms of modern slavery and violence against women, have:
By supporting women-owned ventures to scale up and hire young women at risk and providing entrepreneurship training and mentoring for survivors, HERA works to prevent trafficking and re-trafficking.
Why Your Support Matters?
Launched in 2012, the GlobalGiving campaign contributions, have helped to sustain HERA’s work for the past seven years. Through the volunteers' support and good partnerships with local organizations, HERA attains an overhead rate of 4% in the UK and keeps assessment, advisory, and training costs for the international grants’ program at 30% or below. Thus, HERA ensures that all contributions directly benefit young women survivors and the women entrepreneurs.
For the upcoming 15thyear (2020), your contributions will once again help in scaling up women’s microenterprises to support young women’s employment and economic empowerment in regions with high rates of labor exploitation, dangerous migration, and trafficking. Your contributions will also build on young women survivors’ resilience to provide them with entrepreneurship training, business advice, new social networks, and mentors to pursue their professional aspirations in the UK.
As a team, we believe that our volunteer model of supporting ambitious young women survivors and those at risk of dangerous migration and exploitation is one of the most cost effective ways to address and prevent this form of modern slavery. However, we could not do this work without the financial and volunteer support of many generous individuals. Thank you!
End-of-Year Campaigns
Please consider contributing to HERA on “Giving Tuesday”, December 3rd, when your donation may be matched by GlobalGiving. Or, if you give at any time before the end of this year, you can help us towards reaching our funding raising goal of $80,000 for the upcoming year’s programs in the UK and Central and Eastern Europe.
We wish you a very Happy Holiday Season ahead!
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