It is not the credit gap that limits women entrepreneurs, but the credit gap.
Women represent only a quarter high-growth entrepreneurs globally. However, they cannot help themselves. Instead, they are systematically disadvantaged by social and institutional barriers, and one in three lack access to the critical financial resources needed to grow a business.
New research is carried out through the “Strive to Women” program implemented by CARE and supported by Mastercard Center for Inclusive Developmentreveals that 96% of the 2,000 women entrepreneurs interviewed (in countries as diverse as Pakistan, Peru and Vietnam) feel highly confident in their abilities to manage and grow their businesses., and 87% have a specific goal to do so.
This high confidence reported by women entrepreneurs points to significant economic potential. Additional research shows that trust directly improves business results and profitability. However, without the systems and market actors to support them, women entrepreneurs remain unable to reach their full potential. These problems are becoming more complex disproportionate impact climate crisis on women and girls, exposing them and their businesses to shocks. According to some estimates, equal employment opportunities for women can be added 6 trillion dollars to the global economy, while directly improving the quality of life of women and girls.
Let us consider the paradox in more detail
While these entrepreneurs demonstrate remarkable business acumen and resilience, they face systemic barriers that have nothing to do with their capabilities. Women entrepreneurs are extremely confident and demonstrate a strong commitment to reinvesting in their communities and adapting their businesses to market changes. So why aren’t they inundated with the financial products and support systems they need to thrive?
New Work hard Women studies show that women entrepreneurs benefit more from aid in the current climate and economic crises; they are experienced, ambitious and loyal build sustainable businesses; 90% have clear business goals, 97% feel confident they can achieve them, and 87% feel prepared for any unplanned event that could negatively impact their business. However, financial institutions often overlook women entrepreneurs as reliable, growth-oriented clients. Instead, they are sidelined as CSR efforts, missing their potential as economic drivers and market catalysts.
What the research tells us
- Access to finance: About a third (27%) report inadequate access to finance. This need goes beyond simply obtaining funding; 60% of respondents expressed a clear demand for lower interest rates, while others cited small loan sizes and restrictive, short-term payment schedules as persistent barriers. The lack of equitable financing options – exacerbated by limited trust in financial institutions and gender-based discrimination – hinders the potential of these entrepreneurs to expand and sustain their enterprises.
- The importance of support networks: A network of trusted confidants is another pillar of entrepreneurial success, offering a mix of non-financial support, strategic advice and essential emotional well-being. However, 34% lack this important network. Peer networks do more than just provide support; they offer a safe place to share experiences, advice and encouragement, which are vital in male-dominated business environments.
- The digital technology trust gap: The digital divide poses a major challenge for female entrepreneurs, with 33% lacking confidence in their ability to manage digital tools. This gap in digital skills limits access to opportunities and resources that can drive businesses forward. In an era where technology underpins every aspect of business operations, the digital skills gap puts women entrepreneurs at a disadvantage.
Female-centric design is good work
These gaps require a paradigm shift. Women-centered design (WCD) for financial services is an investment in a customer segment that is already showing impressive returns. Ana as Cecilia Akamin, CEO of Strive Women Financial Trusthe says “(Women) are reliable payers, making them a valuable and underserved market. “Investing in women is not only a social priority, but also a sound business decision.” Women entrepreneurs need accessible, right-sized loans, networking opportunities and digital solutions that reflect their reality. WCD tailors products to be desirable, feasible and viable, approaching the realities of women’s lives and all the hurdles they face in financial services design.
Resilience in the face of new challenges
Making market systems work better for women entrepreneurs, and get women leaders in green business, CARE challenges us all to change the narrative. Don’t view women entrepreneurs through a lens of disenfranchisement. Instead, recognize their high confidence and understanding of their business needs.
We need to challenge patriarchal ideas in our minds and society and listen more closely to the experiences of women entrepreneurs, invest in research that identifies their needs, and engage them as valued customers, suppliers and leaders who build sustainable economies.
So think about it the next time you dream of a self-confident entrepreneur women driving change the oddsdemanding systems that work as much for them as for their business.
Here to hear more from the women themselves Saima, Maria Joseand Lemony stories.
