Women-owned businesses can recharge the Global Economy

Helping women-owned businesses is a smart investment. Data from the World Bank, the World Economic Forum and other organisations demonstrates that women-owned businesses can be the tipping point for a global economic comeback.

But to help women-owned businesses grow and create jobs, we need to improve their access in three key areas currently not being met:

• Access to capital: It is difficult for all small businesses to obtain financing in the current environment, but women-owned businesses face greater challenges. Women start companies using more of their own money, and less capital from outside investors, than men. Women can be more reluctant to apply for loans and are more likely to expect rejection. Yet when women are the direct beneficiaries of credit, their repayment rates are higher in all regions of the world, research shows.


• The global supply chain: Women have difficulty forming networks that help bring in business. Women are good at connecting on common issues, but need help in thinking about “bridging” rather than “bonding” to build businesses. We must also encourage women entrepreneurs to seek out role models and tap influential networks. Following role models who exemplify risk-taking and high achievement can help women entrepreneurs overcome fear of failure that can deter growth. Leveraging social and professional networks can give women that all-important boost to expand beyond a certain revenue threshold. We must also encourage women-owned businesses to set high and specific goals such as raising their revenue to match the revenues of companies owned by men.


• Business networks that can help them scale: We need to concentrate on improving women’s access to the global supply chain. Only a fraction of government and large corporations actively source from women-owned businesses.