Social Innovation Program

Women Entrepreneurs’ Challenge: Solving Social Issues through Entrepreneurship Vol. 3 – Ensuring Food Safety and Promoting Sustainable Agriculture in Cambodia for Local Consumption

Siem Reap Farmers Market: Increasing Employment for Women in Agriculture and the Food Industry in Cambodia

Sasakawa Peace Foundation

April 10, 2024

Ms. Sim Sereirath (left) and Ms. Mengieng Ung (right)

The Sasakawa Peace Foundation (SPF) has been implementing the Cnai (innovation in Cambodian) Accelerator Program in Cambodia since 2022. Cnai is modeled after the SanThit (innovation in Burmese) Accelerator Program, which was jointly developed with Emerging Market Entrepreneurs (EME), a Myanmar-based venture capital (VC) firm in 2021. Cnai also adopts the curriculum of Village CAPITAL, a world-renowned VC investing in early-stage entrepreneurs. The first cohort of the Cnai Accelerator program was implemented in collaboration with partners; Cambodia Investors Corporation (CIC), Asian Development Bank (ADB) Frontier, and EME. A gender perspective was embedded throughout Cnai and provides a level playing field for women entrepreneurs so that they can participate on an equal footing with male entrepreneurs. This is an innovative initiative in Cambodia's entrepreneurship support ecosystem in that the investors serve as the implementing agency and it embraces a gender perspective. Participating entrepreneurs in 20-member cohort face eliminations at each stage, narrowing down the cohort from 20 to 2 at the end. With support and guidance the entrepreneurs receive innovation funding and expand their businesses. After the very intensive program, the four finalists in this year's program are all led by women entrepreneurs by coincidence. We interviewed them about their stories, challenges, and passion for their businesses, and how they are contributing to the empowerment of women in Cambodia through their businesses.

[1] Although The Cnai Accelerator Program targets not only women but also male entrepreneurs, but it has a gender perspective from the design stage of the program to ensure equal participation of all genders. For example, the image character of the Cnai Accelerator's website is a female entrepreneur, to intentionally include women entrepreneurs. Cnai's website has a gender-sensitive language and writing style. In addition, many entrepreneurship support programs hold pitch events in front of large groups of investors, which can be a disadvantage for women who have limited opportunities for public speaking in society. This program places the greatest emphasis on the entrepreneur's aptitude and passion for their participation and commitment to the program. Pitches are also made in front of a few judges rather than to a large audience, with 15 minutes for the presentation and 30 minutes for the Q&A session, replicating the real life experience that might occur when actually speaking to investors. Lastly, participating entrepreneurs will set a gender matrix and how they can make gender impact through the implementation of their businesses, which will be taken into account during the judging process.

In our third episode of this article, we interviewed Ms. Sim Sereirath, co-founder and Ms. Mengieng Ung, the R&D director of Siem Reap Farmers Market (SRFM). The company processes and sells Cambodian agricultural products in Siem Reap,operating both in Siem Reap, renowned for the iconic Angkor Wat, and operates a wholesale market in the capital city of Phnom Penh. As in other Southeast Asian countries, agriculture is an important sector for Cambodia. Agriculture holds significant importance in Cambodia, with more than 70% of its population residing in rural areas, and the sector contributing to 20% of the gross national product and employing over 30% of the workforce as per the 2019 data from the World Bank. However, with the rapid expansion of other industries, the agricultural sector's share in women's employment dropped to 37% by 2019, despite previously accounting for 80%. Nonetheless, it remains pivotal for the livelihoods of many women in the country. SRFM sources its produce from local farmers, with 90% of its partner farmers being women, contributing to the economic empowerment of women engaged in agriculture in the country.

―― Please tell us about SRFM's business.

(Mengieng) We operate SRFM, which was founded in 2017, and Home Taste Food founded in 2018, we produce and process dried fish and sausages, Siem Reap's specialty products. Home Taste Food employs 11 staff, 7 women and 4 men, and SRFM, a super market, employs 21 staff, 17 women and 4 men. SRFM aims to be a "one-stop shop" where customers can obtain safe domestic food products in one location.

SRFM employs many women (Photo：SRFM)

Ms. Sereirath and Ms. Mengieng with employees of Home Taste Food, a company that manufactures and processes local products for SRFM (Photo: SRFM)

―― How did you two come to found and be involved with SRFM and what were your thoughts?

Ms. Mengieng Ung at SRFM's office

(Sereirath) SRFM was founded in 2017 by myself and my civil engineer husband, Saing Sivnhem. We were originally in the hotel business as a family, but we had always wanted to do business for the local people and chose grocery sales. When the Covid 19 pandemic struck in 2021, many hotels reliant on international tourists faced closure. In contrast, businesses catering to local clients, like ours survived. We were convinced that we had made the right decision at that time. Amidst the pandemic, while our family's hotel business struggled to generate income, SRFM became our primary source of support, covering essential expenses, including medical bills.

(Mengieng)My background was in geography research, and I have been teaching at a university. I've been involved with SRFM since its inception, and officially joined the business in 2021. In Cambodia, food safety is a pressing concern, particularly when it comes to grocery shopping at markets. Customers often encounter hygiene issues, the hassle of bargaining with vendors, and the risk of theft. Also, the authenticity of organic products is questionable in many cases. While claiming to be organic, numerous products fail to meet the required standards. Achieving genuine organic certification is challenging, but our partner farmers employ appropriate levels of fertilizers and pesticides. Our priority lies in delivering a messages which are authentic and transparent.

―― How did you come to participate in the Cnai Accelerator Program and what has been your most impressive learning experience so far?

Eficiency improved with the introduction of workplace environment improvement and quality control methods (5S-KAIZEN) developed in Japan

(Mengieng) Prior to joining Cnai, none of the three founders had a formal background in business. We relyed instead on hands-on experience gained through running our own business. We thought joining Cnai was a great opportunity. Sereirath' husband, the co-founder, had participated in an acceleration program once with another organization, but this was the first time for both of us. In addition to the stage-by-stage funding, Cnai offered one-on-one mentorship and the opportunity to participate in the renowned Village Capital program. In the program, to assess business, the capabilities of the team was placed higher than the product or business model itself, and this was an eye-opener for me. Also, I recently had a conversation with a friend who is attending a MBA course, and I was surprised at how much I understood her finance realated talk. My friend and I were both very happy, and it gave me confidence as an entrepreneur.

―― What have you learned about incorporating a gender perspective into your business through your participation in Cnai?

With Cnai funding, a meat grinder, a sausage stuffing machine and an oven for drying were purchased. Production increased from 20KG to 600KG

(Mengieng) Actually, I had never been particularly conscious about gender until I joined Cnai. Due to the nature of the industry, we had always employed many women. Through the program, I learned that men and women have different perspectives and the need for a balanced team. As part of our business's goal-setting framework, known as objectives and key results (OKRs),We also set a target for the percentage of female farmers in the supply chain in our objectives and key results (OKRs). Over time, we successfully elevated this figure from 85% to 90%, underscoring our commitment to promoting women's empowerment within our operations.

We have never collected data on the gender and age of our customers before, but we are in the process of launching a membership card program. With guidance from the Cnai team, we aim to gather data, including the gender of our customers, to inform our analysis for product development and marketing strategies. This initiative reflects our commitment to continuously improving our services and better understanding the needs and preferences of our diverse customer base.

―― What challenges do you see for women entrepreneurs in Cambodia?

90% of SRFM contract farmers are women (Photo:SRFM)

(Mengieng) Cambodia remains a male-dominated society. Traditionally, women stay at home and take care of housework and childcare. When a woman starts a business, if it succeeds, her success is often commendable. Conversely, if her business encounters setbacks or fails, she may face heightened criticism, especially from her in-laws.

(Sereirath) Women are not only busy with entrepreneurial activities, but also with housework and childcare after work. We work 16 hours a day. When we joined Cnai, we discussed internally whether we could truly manage it all. The program was very demanding, starting with reading 44 articles following a structured curriculum, weekly assignments, meeting goals, and achieving objectives and key results (OKRs).

Photo:SRFM

(Mengieng) It was great to participate in Cnai and interact with other women entrepreneurs. In particular, I was greatly impressed by Ms. Sureipouv Tan of AGRO AGAPE, which supports women's micro-enterprises through coffee business (See Ms. Sureipouv Tan’s story in a previous article here). She started her business by herself and is working hard along with many team members.

―― What is the next step for SRFM?

(Mengieng) We are planning to open a store in Phnom Penh. We also hope to expand our business into international markets, targeting regions such as Europe, the United States, Japan, Australia, and beyond.

―― Editor's Postscript

When we spoke to local people in Siem Reap this time, it became evident that the tourists have not been returning as expected after the pandemic. Many women entrepreneurs in the tourism sector now find themselves grappling with challenges. However, amidst this uncertainty, SRFM remains steadfast in understanding and addressing the needs of the local community. According to Mengieng, since the end of the civil war in 1991, Cambodians have been preoccupied with basic survival, often overlooking food quality. However, with Cambodia currently experiencing remarkable economic development, boasting a growth rate of over 5% even during the pandemic, there has been a rapid shift in people's awareness of food safety in recent years. Recognizing this changing landscape, Mengieng and Sereirath perceive a significant business opportunity in providing delicious, locally produced food that meets stringent safety standards. With determination and a pioneering spirit, they aim to be trailblazers in the marketing of delicious, safe and locally produced food.

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Women Entrepreneurs’ Challenge: Solving Social Issues through Entrepreneurship Vol. 3 – Ensuring Food Safety and Promoting Sustainable Agriculture in Cambodia for Local Consumption

Siem Reap Farmers Market: Increasing Employment for Women in Agriculture and the Food Industry in Cambodia

―― Please tell us about SRFM's business.

―― How did you two come to found and be involved with SRFM and what were your thoughts?

―― How did you come to participate in the Cnai Accelerator Program and what has been your most impressive learning experience so far?

―― What have you learned about incorporating a gender perspective into your business through your participation in Cnai?

―― What challenges do you see for women entrepreneurs in Cambodia?

―― What is the next step for SRFM?

―― Editor's Postscript

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