National Definition for Women-Owned or Led Businesses in FinNet Reporting Formats

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Annexure I
National Definition for women-owned/ led business A business qualifies as a women-owned/ led business if it meets the following criteria:

• 50% owned by females, or

• =20% owned by females, and
  o has >=1 female as a major decision maker; and o has >=30% of the Board of Directors comprising of females, where a Board exists. Proposed Parameters for Initial Data Collection The following parameters are provided to ensure consistency and reliability of the collection and reporting of sex-disaggregated data with regards to the identification and categorization of women-owned/ led businesses as per the definition given above. A. Ownership “Ownership” refers to legal responsibility/ownership and/ or fiduciary responsibility for the business. Evidenced by verifiable proof of business ownership:
  Type of
  Business
  Proof of ownership Owner(s) Percentage of ownership Limited liability company (LLC) Certificate of Incorporation issued by the Registrar of Companies (ROC). Names of shareholders as indicated in Form 15 “Annual Return of a Company” and Form 6 “Notice of Issue of Shares”, issued by ROC. Based on percentage of shares as indicated in Form 15 and Form 6. Sole proprietorship Certificate of Registration of Business Name of an Individual Business issued by the Divisional Secretariat. Name of owner as indicated in Certificate of Registration of Business Name of an Individual Business. 100% ownership. Partnership Certificate of Registration of Business Name of a Partnership Business issued by the Divisional Secretariat. Names of partners as indicated in Partnership Agreement (PA). Based on either:

• Percentage of
  shares as indicated in PA,
  Or

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• If no indication
  of percentage, equal ownership among all partners. Cooperative Society Certificate of Registration issued by the Commissioner of Cooperative Development. Names of members as indicated in Membership Register. Based on percentage of membership as indicated in Membership Register. B. Major Decision Maker “Major decision maker” refers to an individual within the business who has decision making power for the business concern. Evidenced by:
  Type of Business Major decision maker Limited liability company (LLC) Individual in the position of either:
• Chief Executive Officer (CEO),
  Or
• Chief Operating Officer (COO),
  Or
• Chief Financial Officer (CFO).
  Sole proprietorship Owner
  Partnership Individual who has influence in the day-to-day decision-making of the business, evidenced by demonstrated knowledge of the following aspects of the business1 :
• Product branding, positioning, target customers and
  market segmentation; and
• Pricing strategies being adopted; and
• Inventory management policies and processes being
  adopted; and
• Key staffing requirements, selection and recruitment
  process, staff training and development.
  Cooperative Society Individual in the position of either:
• Chairman,
  Or
• Secretary,
  Or
• Treasurer.
  1 Assessment on the basis of field observation and responses to probing questions.

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C. Other
In addition to the key considerations of ownership and decision-making, it is proposed that in cases where formal ownership cannot be established, additional parameters relating to control over the business and engagement in business operations, may be included. It is anticipated that these parameters would facilitate towards the identification and classification of woman￾led businesses, where the female is the major decision maker who controls and operates the business. Parameter Description Evidenced by Control • A woman has ownership, access and decision￾making power over the physical and/ or financial resources of the business or beneficial ownership of the business; And

• Observable involvement
  of female in processes and procedures that guide, promote and ensure business continuity.
• Registered under a woman’s name
  with a relevant government institution2 , Or
• Loan facility taken by female for
  business purposes from a licensed bank, licensed NBFI or licensed MFI under supervision of the Central Bank of Sri Lanka. Major decision maker Female has influence in the day￾to-day decision-making of the business. Demonstrated knowledge of women in the following aspects of the business3 :
• Product branding, positioning, target
  customers and market segmentation.
• Pricing strategies being adopted.
• Inventory management policies and
  processes being adopted.
• Key staffing requirements, selection
  and recruitment process, staff training and development. Operate Observable engagement of women in key functions of production, marketing or financial operations of the business
• Key business assets registered under
  a woman’s name (such as business premises deed of ownership or lease agreement, business vehicle lease agreement, etc.).
• Bank account utilized for business
  transactions and proceeds under own name.
• Purchase orders for raw materials or
  movable assets and/ or sales invoices 2 It is suggested to compile a list of government institutions issuing industry licenses and offering business development support, with a standardized format for data collection from each institution. 3 Assessment on the basis of field observation and responses to probing questions.

4 issued to a Limited Liability Company (LLC) under a woman’s name and with corresponding bank account transactions.

• Demonstrated knowledge of the
  following aspects of the business4 :
• Specifications and quality of
  raw materials and/ or inputs being used in the business.
• Inventory levels and value
• Key suppliers and customers
  of the business.
• Average monthly turnover,
  volumes and prices.
• Demonstrated command over the
  core skills required to perform the key functions of the business5 .
• Indication of having founded and/ or
  launched the business:
• Having invested startup capital6
  .
• Possessing a clear and focused
  vision for the business7
  .
• Indication of having sustained and
  continuous engagement in business activity for a period of more than 1 year8 .
• Indication of being engaged for a
  minimum of 50% of the total business operating hours, on an ongoing basis9 . 4 Assessment on the basis of field observation and responses to probing questions. 5 Preferably with supporting documentation e.g., certificates of training participation/ completion in related fields of work. 6 Preferably with supporting documentation e.g., bank statements. 7 Assessment on the basis of field observation and responses to probing questions. 8 Preferably with supporting documentation e.g., utility bills, lease/ rental agreements or issued business licenses. 9 Assessment on the basis of field observation and responses to probing questions.