Modern
day women are a force to be reckoned with, and these days you see women in many
male-dominated jobs, living independent lives and proving time and time again
how resilient and adaptive they can be. There are even women who have taken on
pivotal roles within their families, have gone overseas on jobs and are helping
their families to make ends meet when they send money to Sri Lanka,
working hard so that their families can live and enjoy a better life.
In
recent times we have seen many women entrepreneurs being highlighted in the global
economy. A woman entrepreneur is a woman who starts, organises and runs their
own business, and you will see them across industries, from technology to
finance and healthcare to retail.
Women
entrepreneurs are an important asset in today’s world. Why? Here are a few
reasons.
1. Economic
growth:Women-owned businesses contribute
significantly towards the global economy, by creating job opportunities,
stimulating economic growth and contributing towards GDP, with many studies
showing that increasing the number of women entrepreneurs can lead to higher
economic growth rates.
2. Diverse
perspectives:It has been found that women bring
unique perspectives and problem-solving approaches to business, stemming from
their natural maternal instincts. Such diversity leads to greater innovation in
terms of products and services, as well as highly effective decision-making
processes.
3. Social
impact:There is no doubt about it that women in
business are driven by social entrepreneurship, where they aim to solve social,
community and environmental issues, often prioritising social corporate
responsibility and sustainable practices.
4. Empowerment:Women are all about empowering each other, and many successful businesswomen
have become role models, inspiring others to follow their business dreams,
leading to greater gender equality and empowerment within the business world
and society.
5. Balanced
leadership:More women in leadership roles
within businesses means that there is a well-balanced representation, and
businesses tend to be more resilient and well-rounded.
6. Innovation:Women tend to identify and address market gaps that their male counterparts may
sometimes overlook, creating new markets and industries within an economy.
7. Community
development:Women are more likely to re-invest
their earnings in their families and communities, leading to improved health,
education and overall well-being for broader groups of people within that
community.
Women
in entrepreneurial roles play a crucial role in fostering innovation, driving
economic growth and in the well-being of the society they live in. Their
presence is an important factor within the global economy.
How
can banks encourage women entrepreneurship?
By
implementing strategies and offering services that are tailored to the unique
needs and challenges faced by women entrepreneurs, banks and financial
institutions can play a significant role in encouraging them to pursue their
dreams and aspirations. Some of these include:
·
Access to capital: Banks
can offer special loan programmes (such as business loans or pre-shipment finance) to women on favourable terms such as lower interest rates,
flexible repayment periods, reduced collateral etc. In addition, banks that
offer SME banking in Sri Lanka could also provide micro financing to
assist them with starting their own businesses, especially in areas where
traditional financing is not available. Banks can also offer special fixed deposit rates in Sri Lanka for women or women-run businesses.
·
Financial education:
Seminars and training programmes on financial management, business finance and
planning, and investment strategies will be helpful to equip women with the
required knowledge and skills needed to manage their businesses. Experienced
mentors can provide guidance and advice on how to navigate the complex
financial aspects of running a business.
·
Networking opportunities:
Create and support networking programmes where women entrepreneurs can connect
with industry professionals, make contacts and build professional
relationships. They could also collaborate with organisations that support
women in business to provide additional resources and opportunities.
·
Advisory services: A
relationship manager specialised in women entrepreneurship could be assigned to
businesswomen in order to provide them with more personalised advice and
support. In addition, banks could also offer business development consultancy
and services, helping women with creating business plans, identifying
opportunities and navigating regulatory issues.
·
Digital banking
solutions: Develop user-friendly online platforms and tools that help women to
better manage their business finances, together with mobile banking facilities,
especially for those who have limited access to physical banks.
·
Promotions: Establish
awards and grants programmes to identify and recognise outstanding performers
in the business world, coupled with financial assistance and visibility for
their business. Assist such businesswomen through branded promotions,
advertising support and by showcasing their successes.
·
Inclusivity policies:
Train their staff to recognise and counter gender bias when it comes to
providing services to businesswomen, and to ensure fair treatment for all. Make
them more involved when designing and developing banking products and services,
to ensure that their unique needs are met.
Banks
and financial institutions have the power within communities and economies to
help, support and encourage women into entrepreneurship, helping them to be
empowered, overcome challenges, have access to essential resources and achieve
their long-term goals.
We
are living in a day and age when gender equality is at its peak, and more and
more women, whether from suburban areas, metropolitan areas or rural areas are
beginning to feel more independent and empowered. They are more likely to
achieve their dreams of starting their own business, with the assistance of
financial advisors and banks, who can pledge support to create more
opportunities and growth potential for such businesses.
A
startup is a business in its early stages of life. Startups are typically
characterised by high uncertainty, and a deep focus on innovation and growth,
over other factors. Their main aim is to develop a unique product or service,
bring it to market and scale very rapidly.
These
types of businesses generally dominate the technology sector, although they can
be found in other industries and sectors as well. Young entrepreneurs are
generally the founders of such businesses, who finance the operation through
personal savings angel investments, crowdfunding or venture capital.
Legal
issues that startups can face
When
it comes to startup businesses, they face certain unique legal issues that need
to be addressed by experienced corporate law firms in Sri Lanka. These
include:
·
Business structure:
Choosing the most appropriate legal structure for the business is very
important according to company secretaries in Sri Lanka. Entrepreneurs
can choose between sole proprietorships, partnerships, and limited liability companies.
This is an important aspect when it comes to liability, taxation and investment
purposes.
·
Intellectual property
protection: Securing patents, trademarks and copyrights, in order to protect
the business’ innovative product or services, brand identity and content is
essential. They should also address potential IP infringement claims from other
entities.
·
Employment law: Drafting of
employment contracts, non-disclosure agreements and non-compete clauses, as
well as compliance with labour laws regarding hiring and firing of employees,
their benefits and workplace safety.
·
Funding and securities
law: Navigating around the laws regarding raising capital, including the
issuance of stocks and shares, etc.
·
Contracts and agreements:
Creating and managing contracts and agreements with suppliers, partners,
customers and investors. Ensuring the enforceability of such contracts in order
to avoid disputes.
·
Licensing and permits:
Obtaining the required licenses and permits in order to carry on business.
·
Regulatory compliance:
Compliance with industry-specific regulations, such as data privacy etc.
Adhering to health and safety, and environmental regulations.
·
Taxation: Understanding
and managing tax obligations such as income tax, payroll taxes, sales tax and
others. Taking advantage of tax incentives and credits available to such
businesses.
·
Litigation risks:
Preparing for possible lawsuits including those related to IP infringements,
contracts, employment issues and product liability claims.
·
Data protection and
cybersecurity: Implementing measures to protect sensitive data from breaches
and complying with cybersecurity laws and regulations.
Addressing
these above issues together with good business lawyers in Sri Lanka can
help startups avoid expensive disputes and help them to establish a solid
foundation for growth. When choosing a law firm to partner with, they should
consider one that specialises in startup law, who can help them navigate
through these challenges.
Tips
for startups on how to mitigate these legal issues
Mitigating
legal issues together with a law firm in Sri Lanka is important for the
smooth operation and growth of such businesses. Here are some tips on how to
address some of these issues.
1. Choose
the right business structure: Get advice from a lawyer on which business
structure best suits your requirements. It is important to consider a structure
that accommodates future growth potential and expansions.
2. Protect
your intellectual property: Register any intellectual property during the early
stages of the business, and use NDAs created by a lawyer when dealing with
employees, partners and contractors. In addition, ensure that you regularly
check for IP infringements etc and take necessary action if any are found.
3. Comply
with employment laws: Understand the prevailing labour laws and create concise
employment contracts, outlining terms, conditions, responsibilities and
benefits in a clear manner. Make sure to develop training and workshops of
workplace safety, harassment and other such issues in order to keep your
employees knowledgeable on these regulations. All labour related matters should
be conducted in consultation with an experienced labour lawyer.
4. Funding
and securities laws: When raising capital, it is important to work in
collaboration with lawyers who specialise in securities law, and to ensure that
all fundraising activities comply with set laws and regulations. Providing
clear, honest and transparent information to investors is essential.
5. Draft
solid contracts and agreements: Get the assistance of a corporate lawyer to
draft and review all contracts and agreements. Such documents should be clear
and detailed regarding each parties’ obligations and rights. In addition,
clauses for dispute resolution should also be included.
6. Obtain
necessary licenses and permits: Understand the licenses and permits required
for your industry, and be updated on changes to such regulations.
7. Ensure
regulatory compliance: Keep up-to-date with industry specific regulations and compliance
regulations, and develop internal policies to ensure adherence to such
policies. Conduct regular compliance audits to identify and rectify potential
issues.
8. Manage
tax obligations: Hiring a professional tax advisor is an important step in
mitigating such issues. In addition, businesses should keep detailed records of
transactions and financial records, and budget for taxes in order to ensure
funding to pay the same.
9. Prepare
for litigation risks: Obtain appropriate insurance policies that will cover
such incidents, including public liability, product liability etc. Have clear
policies regarding dispute resolution, and enlist the help of an experienced
law firm or lawyer to assist you when needed.
10. Implement
data protection and cybersecurity measures: Develop and enforce strict policies
to ensure protection of personal and sensitive data, and how they should be
handled. Invest in robust cybersecurity measures to protect against data
breaches, and to ensure compliance with data protection laws and regulations.
General
best practices for startups
·
Schedule regular reviews
with a lawyer to stay ahead of potential issues and ensure compliance with
changing regulations.
·
Continuously educate
yourself and your team regarding legal obligations and industry best practices.
·
Keep thorough and
organised documentation of all aspects of the business.
Being
proactive and organised can help startups to ensure that they effectively
mitigate the legal risks involved with their business, and ensure development
and growth.