Description
Promoting greater gender equality in the European Union could significantly boost the economy and create millions of jobs. Closing the gender finance gap can help banks leverage the investment opportunities presented by women entrepreneurs. However, despite the clear potential benefits, women entrepreneurs often face barriers in accessing finance, such as higher interest rates, stricter collateral requirements and lower funding amounts compared to men.
This study analyses the current landscape of debt financial and non-financial products targeting women entrepreneurs across EU countries. The study identifies 95 products that financial institutions are already employing to better reach the women’s market. At the same time, the research suggests significant variations in the availability of these products across the European Union. This uneven distribution presents an opportunity for financial institutions to further expand the availability of such targeted products.
Interviews with financial institutions and case studies provide deeper insights into the motivations, challenges and success factors associated with products supporting women entrepreneurs.
The study offers recommendations to financial institutions interested in introducing debt financial or non-financial products targeting female entrepreneurs:
- Prioritise the collection and analysis of sex-disaggregated data.
- Explore opportunities to increase market reach and competitiveness by targeting female entrepreneurs as customers.
- Use definitions of women-owned and women-led businesses based on internationally recognised standards.
- There is no one-size-fits all solution. Adapt debt financial products to specific market conditions.
- Design debt products to accommodate the unique personal and professional circumstances experienced by female entrepreneurs.
- Consider integrating non-financial support components (such as technical assistance, mentoring, skills development, and networking) in debt product offerings.
- Leverage strategic partnerships with external organisations such as NGOs, industry associations, chambers of commerce and public institutions to better reach female entrepreneurs.
- Invest in clear, targeted and culturally appropriate communication to maximise the reach and uptake of products targeting women.
