Women-led businesses account for 28% of businesses globally but face significant challenges in accessing credit, growing their enterprises, and overcoming legal, social, and financial barriers. This policy diagnostic outlines key approaches aimed at empowering women entrepreneurs, particularly in micro, small, and medium enterprises (MSMEs). The report presents case studies from countries like Indonesia, India, and Spain, demonstrating how targeted policies around financial inclusion initiatives, gender-disaggregated data collection, and credit guarantee programs can help bridge the gender gap in entrepreneurship. It further highlights the importance of digital financial inclusion as a tool for dismantling systemic barriers to women’s economic empowerment and integrating them into the formal economy. By adopting a gender-centered design approach, policymakers can create tailored solutions that enhance women entrepreneurs’ access to financial services, market opportunities, and institutional support.
Five out of the nine policy approaches proposed by Women’s World Banking include:
- Increase Credit Availability: Policymakers can encourage the private sector to increase lending to women-led MSMEs through various programs. These loans are disbursed through financial institutions, which track borrowers’ economic empowerment outcomes.
- Couple Financial Inclusion with Non-Financial Products: Policymakers could provide financial services in combination with non-financial support such as peer learning, mentoring, and business education as it has proven to be more effective in empowering women entrepreneurs.
- Support Innovation around Integrated Finance: Policymakers can promote innovations like OpenAPIs, allowing fintechs and startups to integrate with financial institutions, making it easier for women to access digital services.
- Collect and Use Gender-Disaggregated Data: Policymakers should collect gender-disaggregated data as it is essential for setting and tracking gender-specific financial inclusion goals. This data will help them in identifying disparities and addressing systemic issues.
- Digital Public Infrastructure: Policymakers should enable digital public infrastructure, such as digital identity systems and payment platforms to enable women entrepreneurs to fully engage in the formal financial system.
By implementing these policy recommendations, Women’s World Banking aims to address the systemic challenges faced by women entrepreneurs, fostering their empowerment and contributing to broader economic growth.
