cat/womens-entrepreneurship-finance
The Asian Development Bank (ADB) released a study detailing the effect ADB’s microfinance project have on reducing poverty of rural poor households and improvement of the socio-economic status of women in developing countries. Focus regions included, Bangladesh, Philippines and Uzbekistan. Three main objectives were outlined in the study included:
The Mastercard Center for Inclusive Growth is using technology to help entrepreneurs grow their business.
Micro-entrepreneurs are excluded from the traditional financial system due to their cash-based transaction system and are unable to build trust among financial institutions.
One in three start-ups in the Arab World is led by women—a higher rate than in Silicon Valley, according to an IFC article. Improving access to finance and promoting digital platforms are key to helping them succeed. The article says that many entrepreneurs from the region believe that technology is one of the few spaces where everything is viewed as possible, including breaking gender norms, and is therefore a very attractive industry for women.
Commercial Joint Stock Bank (VP Bank) invested in Ho Thi Hai Ngan, a woman entrepreneur looking to expand her electronics shop.
With capital as one of the larger challenges faced by SMEs, women are challenged at a much larger rate when “lender biases,” according to the article, are being added to the picture. VP Bank decided to be the change and loaned Ngan $25,000; her company is now worth $400,000.
Women entrepreneurs will benefit from the Women’s Loan, an individual loan created by the Lead Foundation, which is geared towards low-income women entrepreneurs.
With support from Women’s World Banking and the Metlife Foundation, Lead was able to ensure women were represented and active decision-makers throughout the process. Women within the organization took the lead on marketing tactics, operational procedures and loan officer training.
SME Finance Forum member, the European Investment Bank (EIB) signed a financing agreement worth €375 million with the National Bank of Egypt to fund SME investments.
According to a release by EIB, the agreement is in line with the Economic Resilience Initiative, which promotes financial inclusion and the creation of sustainable employment opportunities in Egypt. In addition, a portion of the funds in the agreement will be allocated to women-led SMEs and SMEs in lower-developing countries.
The European Bank for Reconstruction and Development (EBRD) is extending its reach, offering women-led SMEs in Morocco financial literacy, marketing, leadership skills and e-commerce through their Women in Business Programme.
According to the article, the program funded by the EU Initiative for Financial Inclusion has a goal to impact 200,000 youth and women-led SMEs operating in the, Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, Palestine, Tunisia and Yemen regions.
The launch date of the program is set for Sept. 18 in the city of Casablanca.
Women have been an integral part of microfinance since the very beginning. But though the percentage of women in top leadership positions in microfinance institutions is high compared to the rest of the global banking sector, it’s still lower than women’s proportion of the overall population – and far lower than the percentage of female clients served by these institutions. Abiskar Shrestha, a senior investment officer at MicroVest Capital Management, explores how the sector can boost female leadership – and how investors can help.
Industry Partner GBA for Women says that digital solutions for product distribution are rapidly increasing banks’ ability to reach the unbanked – a segment disproportionately made up of women. During the recent All-Stars Academy in South Africa, GBA heard from two of its members who are making huge strides in this area: Diamond Bank of Nigeria - also a SME Finance Forum member - and NMB Bank of Tanzania.
Startups founded by women receive less than 50 percent of investment funds than those founded by men, even though women are achieving 10 percent higher profits, according to Boston Consultant Group. Tokunboh Ishmael, co-founder of Alitheia Identity, an investment management and advisory firm focused on channeling private equity investments into businesses, has set out to bridge this gap by launching a Gender investment fund. A former banker at Saloman Smith Barney, Ishmael has plans to drive financial inclusion with the fund, which will have US$75 – 100 million to invest.
