Women entrepreneurs across the globe show remarkable confidence in their ability to grow and manage businesses. Despite this confidence, yet, systemic barriers prevent them from achieving their full economic potential. New research from CARE’s Strive Women program highlights these obstacles. It calls for a systemic shift to support women entrepreneurs in overcoming them.
CARE’s research surveyed over 2,000 women entrepreneurs from Pakistan, Peru, and Vietnam. It found that 96% of participants are confident in their business abilities. Additionally, 87% are aiming for growth. These high levels of self-assurance show strong potential for success. Nonetheless, systemic issues continue to hinder their progress, particularly in areas like access to finance and support networks.
THE FINANCE CHALLENGE: ACCESS AND AFFORDABILITY
One of the key barriers identified in the study is the lack of access to finance. Women entrepreneurs are confident in their business skills. But, 27% report being unable to access the funds they need to grow. For 60% of respondents, lower interest rates would encourage greater use of formal financial services. Additionally, 21% cite small loan sizes as a limitation. Furthermore, 19% point to short loan periods as hindering their ability to scale their businesses. Gender-based discrimination in financial services also plays a role in limiting access to essential capital.
THE IMPORTANCE OF PEER-TO-PEER SUPPORT NETWORKS
A supportive network is crucial for any entrepreneur, yet 34% of women entrepreneurs lack essential peer-to-peer connections. These informal networks are vital for obtaining advice, sharing resources, and fostering collaboration. The absence of a strong support system complicates decision-making. About 59% of respondents depend on joint decision-making, often involving family or partners.
THE DIGITAL DIVIDE: A SKILLS GAP
As technology continues to advance, the digital skills gap presents another hurdle. One-third (33%) of women entrepreneurs report feeling underprepared for the digital demands of their businesses. This gap limits their ability to fully leverage online platforms, digital financial tools, and emerging technologies. It further restricts their growth potential.
CHANGING THE SYSTEM TO EMPOWER WOMEN ENTREPRENEURS
Sarah Hewitt, Director of the Strive Women program at CARE, highlights a key point about women entrepreneurs. She stresses that they do not lack confidence. Rather, they lack the support of fair market systems. The study calls for a transformation in how businesses, financial institutions, and support services are designed. It ensures that products and services are intentionally created to meet the specific needs of women entrepreneurs.
CARE’s Strive Women program addresses these barriers by collaborating with local partners. They create women-centered financial products and give digital skills training. Additionally, they strengthen peer networks. CARE actively designs these services using direct feedback from women entrepreneurs. They aim to activate local ecosystems. These ecosystems better support female entrepreneurs and their growth.
A CALL TO ACTION: WHAT NEEDS TO CHANGE
To truly support women entrepreneurs, CARE urges both public and private sector actors to:
- Shift the narrative around women-led businesses to acknowledge that women entrepreneurs are confident and know what they need to succeed.
- Invest in research that listens to women entrepreneurs, considering them as active business leaders with valuable insights.
- Design financial and business services that cater specifically to the needs of women, helping them make decisions on their own terms.
- Challenge harmful gender norms by celebrating and supporting the economic contributions of women entrepreneurs.
