Women-owned small and medium enterprises (SMEs) play a crucial role in driving employment growth and fostering research and development in numerous countries worldwide (Brush et al., 2006; Brush & Cooper, 2012; IFC, 2011; Mauchi et al., 2014).

Embracing greater female participation in SMEs offers a multitude of advantages. Notably, as highlighted by the International Finance Corporation (IFC, 2011), it helps to mitigate gender inequalities. SMEs serve as vital platforms for generating job opportunities and wealth, and when women actively participate in these enterprises, it contributes to achieving these objectives while narrowing the income disparity between genders. Furthermore, empowering women's involvement in SMEs aligns with broader developmental goals and the UN Capital Development Fund’s (UNCDF) strategic objectives in the region.

The Papua New Guinea (PNG) government is actively striving to enhance female participation in SMEs. The PNG Development Strategic Plan 2010–2030 (DNPM, 2010a) demonstrates a strong commitment to promoting gender equality, with a particular focus on improving the female-to-male enrolment rate to foster greater human capital among women. PNG Vision 2050 (DNPM, 2010b) outlines comprehensive initiatives, including the expansion of microfinance, aimed at enhancing female access to credit for entrepreneurial pursuits.

Building on these overarching strategies, a new SME Policy 2016 and accompanying SME Master Plan 2016–2030 were adopted in February 2016, outlining detailed operational requirements to achieve the specific targets and desired outcomes of PNG Vision 2050 and PNG Development Strategic Plan 2010–2030 (Ministry of Trade, Commerce & Industry, 2016a, b). These collective efforts signify a determined drive to empower women and foster their active involvement in the SME sector for inclusive and sustainable development.

Women entrepreneurs play a crucial role in the local economy as active participants in the informal sector. PNG’s informal sector has been described as a ‘sleeping giant’ that has the potential to fuel growth across the country, with nearly 80% of the country’s population depending on it in some way.

Women are critical players in this sector, but many of them face challenges in accessing formal financial services, such as loans and guarantees, which hampers their ability to grow and expand their businesses and earn more income.

To address this issue and promote women's economic empowerment, the UN Capital Development Fund (UNCDF) and UN Women launched the Markets, Economic, Recovery, and Inclusion (MERI) project in partnership with Women's Micro Bank Limited (WMBL), also known as Mama Bank the support from DFAT. One unique element of this project is the adoption of Self-Reliance Group (SHRG) models, which has shown promising results in enabling women's access to finance and as a result fostering economic resilience in PNG. Women make up an important and sizeable segment of the local economy and any investment in their financial empowerment leads to positive knock-on effects for PNG as a whole.

Financial Inclusion Challenge
In PNG, women entrepreneurs face significant barriers in accessing formal financial services. Access to finance for women faces several challenges (ADB, 2012; Drucza & Hutchens, 2008). One major hurdle is the lower financial literacy levels among women, making it harder for them to understand banks' financial reporting requirements and resist pressure from wantoks (Drucza & Hutchens, 2008). Wantoks exert significant financial demands on women, making it difficult for them to save or repay loans (Drucza & Hutchens, 2008).

Additionally, compared to men, women face difficulties in providing land as collateral for loans (ADB, 2012). Customary land tenure in PNG often follows patrilineal ownership, leading to scenarios where widows can be excluded from their deceased husband's land by his wantoks, leaving them without land for security (Drucza & Hutchens, 2008).

Traditional banks often require collateral and extensive documentation, which many women cannot provide due to their informal business activities and lack of assets. As a result, a large number of women remain unbanked and lack access to credit and savings facilities. A 2019 study by UNCDF’s Pacific Financial Inclusion Programme found that women in PNG are 29% less likely than men to have bank accounts, a gender gap that is the largest in the South Pacific. Without the safety and security bank accounts provide, women’s ability to invest in their businesses, diversify their income sources, and improve their livelihoods is limited.

Self-Reliance Group Model
To address the financial inclusion gap and empower women entrepreneurs, the MERI project leveraged the Self-Reliance Group (SHRG) model. SHRGs are community-based savings and credit groups that allow members to pool their resources, save together, and access small loans without the need for collateral or formal documentation. The model promotes a culture of regular savings and instils financial discipline among its members. Women without bank accounts can also access credit through this model.

Establishing SHRGs in the Markets
Under the MERI project, WMBL (Mama Bank) identified four main markets in PNG: Gordons in Port Moresby, Lae, Goroka, and Vanimo, where women vendors were most affected by the economic impact of COVID-19. The bank strategically set up Mama Access Points (MAPs) in or near these markets to facilitate easy access to financial services for the vendors.

To promote the adoption of SHRGs, the bank launched regular awareness campaigns inside the markets, discussing the benefits of group savings and explaining how other successful groups were operating. Weekly sessions were initiated, where members contributed equal amounts to a group savings account which was then used as collateral for accessing loans. Additionally, individual Meri Moni Savings Accounts were opened for the members to strengthen their personal savings and provide a secure place to store their earnings.

Impact of SHRGs on Women's Economic Empowerment
The adoption of the SHRG model has resulted in significant positive impacts on women entrepreneurs' economic empowerment in PNG. Firstly, it has provided women vendors with a safe and convenient space to save money and access affordable credit. Through the group savings concept, the members have developed a strong sense of ownership and responsibility, leading to increased regular savings and financial literacy.

Secondly, SHRGs have created a supportive and empowering environment for women entrepreneurs to discuss issues and the solutions to them in a safe space. The regular group meetings serve as platforms for knowledge sharing, skill-building, and mutual support. The women discuss challenges, solutions, and success stories, motivating each other to overcome obstacles and explore new business and investment opportunities.

Thirdly, access to credit through the SHRGs has allowed women entrepreneurs to diversify their income sources and re-invest earnings into their businesses. They have used the micro-loans to expand their enterprises, purchase raw materials, and invest in new equipment, leading to increased productivity and profits. Access to capital is a

Way Forward
The success of the SHRG model in promoting women's economic empowerment in PNG has been encouraging and there is scope to expand the concept to include more women. With the support of the UNCDF, UN Women, and other partners, the MERI project has been able to extend financial inclusion to over one thousand women vendors in the targeted markets.

To further enhance the impact, it is essential to continue expanding the reach of SHRGs to other areas of PNG where women entrepreneurs face similar challenges. The lessons learned from successful groups should be disseminated through exchange visits and the development of awareness/informational materials. This will encourage more women to adopt the SHRG model and empower them to take control of their financial lives.

As the project draws to a close, it is essential to involve local administrations and technical agencies in the governance of value chains to ensure that these models are connected with broader local development efforts. We also need to figure out ways to recover the costs of helping beneficiaries so that the SHRG model can continue to grow and benefit more provinces of the country.The MERI project's implementation of the Self-Reliance Group model has and continues to unlock the doors of economic empowerment for women entrepreneurs in Papua New Guinea.

By providing easy access to affordable financial services and fostering a supportive group environment, women have been able to grow their businesses, diversify their income, and improve their livelihoods. The success of the SHRG model in the targeted markets offers a promising blueprint for promoting financial inclusion and empowering women in other regions of PNG. Through continued collaboration and support from stakeholders, the SHRG model can play a significant role in achieving sustainable development and gender equality in the country.