Tender Description:

Sparkasse Georgia announces tender: Research on the Financial Inclusion of Women Entrepreneurs across Georgia.

1. Background to the Assignment

Women represent a significant untapped potential in the entrepreneurial landscape. Yet, in many countries across the globe, they tend to face barriers to accessing financial resources, including loans, grants, or venture capital. Such financial exclusion limits women’s ability to start or expand their businesses by undermining their capacity to hire employees, invest in new technologies or product development, and much more.

In 2024, Georgia was ranked 69 out of 146 countries in the World Economic Forum Gender Gap Report. Gender equality issues in employment, wages, poverty, asset ownership and entrepreneurship, and women social and economic empowerment are important issues in Georgian society. A 2019 Enterprise Survey, conducted by the EBRD, EIB and World Bank, shows that female-owned businesses represent only 22 per cent of Georgian firms. According to the EBRD, Women entrepreneurs in Georgia still face greater challenges in accessing finance as they are often deemed riskier clients for cultural reasons or due to an absence of traditional collateral, and they also lack much-needed business skills.

The German Federal Ministry for Economic Cooperation and Development (BMZ) has commissioned German Sparkassenstiftung for International Cooperation (German Sparkassenstiftung) with the implementation of the project “Socio-ecological transformation of the rural MSME sector and sustainable financial services in Armenia, Georgia, Tajikistan and Ukraine”.

German Sparkassenstiftung aims to strengthen the economic participation of people in rural regions of project countries, in line with sustainable resource use, through adequate financial services and thus to contribute to improving life prospects in rural areas and to increasing resilience to external influences. Moreover, the project objective is to improve access to a sustainable financial market for the population and MSMEs in rural regions, enhance entrepreneurial skills of the dedicated target group and strengthen the sustainable use of demand-oriented financial services.

German Sparkassenstiftung Georgia works with the National Bank of Georgia as well as both with supply side (commercial banks, microfinance institutions, and other financial agents) and the demand side (entrepreneurial populations in rural areas) to aid business development and strengthen overall entrepreneurial landscape. Existing and potential female entrepreneurs as well as female heads of households in rural regions are particularly highlighted target group under the project due to their role, potential, as well as vulnerability to financial exclusion.  

2. Objective of the Assignment

To facilitate the financial inclusion of women-led enterprises, German Sparkassenstiftung Georgia is planning to undertake countrywide research that shall look into gender biases in lending practices and financial products. The core aim of the research is to identify to what extent female entrepreneurs suffer from financial exclusion in Georgia and to further deep dive into the triggers and drivers of identified financial barriers.

The final product of this research is outlined to be a set of recommendations to policymaking bodies, financial institutions as well as women entrepreneurs themselves that would foster financial inclusion of businesswomen across Georgia’s financial system. 

3. The Scope of the Assignment

3.1. Target:

Primary research target group comprises potential and existing female entrepreneurs in Georgia and more particularly those involved with micro, small, and medium businesses. To allow for comparative analysis and in the absence of such secondary data, the contractor shall also expand the research to the financial inclusion of men in business.

The research shall cover both the major cities and regions across Georgia.

3.2. Research Framework:

The assignment is envisioned as multi-layer research that looks at financial system and institutions, beneficiary capacities and experiences, as well as policy and regulatory landscape and governmental incentives. The tentative structure and components of the research could include but not be limited to the below:

A) Desk Research – looking at peer and associated research, papers, and publications concerning the research topic and objectives to form a solid basis for secondary data. 

B) Quantitative Analysis – looking at both the supply and demand sides. On the supply side, the contractor to acquire and analyze data of various financial institutions be these commercial banks or microfinance entities. The aim is to analyze the overall lending portfolio and look for gender discrepancies across those. At the stage of desk research, some of this information might become readily available.

On the demand side, the contractor to survey potential and existing female entrepreneurs involved with micro, small, and medium businesses across Georgia. Control group of male entrepreneurs shall also be researched to identify whether or not financial inclusion gap actually presents between the two genders and if so, determine its prevalence. 

C) Qualitative Research – if A and B reveal tangible level of businesswomen financial exclusion, the contractor to look at its triggers and drivers. 

The contractor to conduct focus group discussions (FGDs), Key Informant Interviews (KIIs), or similar with the representatives of financial institutions to understand the process when it comes to approving the access to financial resources for female entrepreneurs. This section of the research should also provide an integrated overview of various financial products across the financial market, incentive programs, subsidies, etc. and whether they respond to the needs of women in business?

On the demand side, the research to use similar tools looking at the perceptions and lived experiences of existing and potential female entrepreneurs when it comes to accessing financial resources from designated institutions.

 D) Articulating the Data – at this point the contractor to analyze data acquired through A, B, and C above and provide a clear and detailed report on its findings highlighting the below:

1. Are there any substantive discrepancies concerning the access to finance and financial inclusion of women in business vis-à-vis men in business?
2. If yes to the above, what causes and drives higher rates of financial exclusion of women in business?
3. How well does the financial system respond to the specific financial needs of women in business? Are financial products on the market gender-responsive?
4. How favorable is overall policy landscape and to what extent does it foster financial inclusion of women in business? How effective are existing incentive programs in bridging financial inclusion gap? 

E) Conclusions and Recommendations – the contractor to produce a clear and concise report on research findings, conclusions, and recommendations clustered for demand, supply, and policymaking sides. The report to be accompanied by a brief presentation summarizing key details.

 4. Minimum Requirements

Those willing to participate in selection should satisfy the following:

• The company/principal researcher(s) shall demonstrate extensive experience delivering research tasks of similar scope, reach, and intensity.
  
• The company to have a wide reach across Georgia including the capital and other cities as well as regions.
  
• It is highly desirable for the research company to have an extensive reach and prior experience with financial institutions in Georgia.  

5. Submission Guideline

• All questions concerning the assignment to be directed to info.georgia@sparkassenstiftung.de
• As needed, interested candidates may also request a pre-proposal meeting.
• Interested companies are requested to submit their proposals by COB 25 December the latest via email at info.georgia@sparkassenstiftung.de

The package to include the following merged in one file:

• Summary of the company and its prior experience with similar and/or related tasks
• Profiles of core team members leading the research
• Structured technical proposal detailing the approach
• Delivery Schedule
• Financial Proposal (DSIK Georgia is exempted from paying the VAT. Therefore, the final quoted amount to exclude this charge).

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