Bridging the Finance Gap for Women Entrepreneurs

8. Improving programme design and access

Abstract

Policies and programmes aimed at supporting women in starting and managing new businesses have had varying impacts. In many cases, financial support measures can be designed and implemented to meet the needs of women entrepreneurs across different contexts.

 

Support interventions and initiatives

A major motivation for supporting women’s entrepreneurship is that the full potential of entrepreneurship can only be achieved when it is a viable option for all (OECD/European Commission, 2023[1]; Carter et al., 2015[2]). This has led to a proliferation of support initiatives and interventions aimed at increasing women’s participation in entrepreneurship. However, many of these policies and initiatives adopt a gender-blind perspective that fails to recognise the specific challenges faced by women (Lee and Pollitzer, 2016[3]). Furthermore, policies often do not sufficiently address the structural barriers that constrain women’s access to resources within ecosystems (Coleman et al., 2019[4]; Henry et al., 2017[5]).

Access to finance remains a major challenge for women entrepreneurs globally (OECD, 2021[6]), and policy initiatives can play a significant role in facilitating women’s engagement in entrepreneurship. However, such interventions need to address structural barriers, including societal expectations, cultural norms, limited legitimacy and access to social and financial resources, in order to more effectively support women’s entrepreneurial activities. Research shows that the constraining influences of socio-economic factors often position women’s firms in gendered sectors (Carter et al., 2015[2]) that present specific challenges. Programmes, therefore, could use a combination of targeted interventions while bringing in considerations for women entrepreneurs into the design of mainstream programmes (Owalla et al., 2021[7]).

Role of public policy

Public policies could seek to adopt a holistic approach to understanding women entrepreneurs’ access to finance that considers not only the individual experiences but also the structural factors influencing their participation in the entrepreneurial ecosystems (Foss et al., 2019[8]). A commitment to providing long-term and sustained support (Owalla et al., 2021[7]) is essential to transform the existing funding landscape. In addition, policy development requires the development of an evidence base of both the lived experiences of women entrepreneurs in accessing funding, and the impact of existing initiatives and interventions to inform the development of new targeted interventions and restructuring of existing measures.

Creating a more equitable environment is a complex task that requires greater collaboration amongst all stakeholders involved. Public policy initiatives can facilitate these partnerships and collaborations by providing platforms (including online) that bring together multiple stakeholders from various regions to develop interventions that can more effectively address the specific needs and challenges facing women entrepreneurs accessing funding.

Lessons from the policy cases

Several policy notes focus on the design and delivery arrangements of policy interventions in different contexts and how sensitive programme design and arrangements for access for women can make a difference to their effectiveness. The complexities of impacting entrepreneurial ecosystems are highlighted in the notes. Even in cases where policies address societal inequalities, significant disparities still persist in access to financial resources (Slovenia). At the same time, there are examples of gender-neutral interventions designed to provide financial support and offer soft support that have the unintended consequences of positively impacting women’s access to finance (United Kingdom). However, the importance of having a dedicated women’s entrepreneurship finance policy is reiterated in several policy notes (notably Ireland and Northern Ireland (United Kingdom)). The notes from Kazakhstan and Sweden also indicate that a holistic approach that includes policy reforms, improved resource availability and tailored interventions that are conscious of the specific needs and type of firms, sectors and industries that women entrepreneurs operate in is equally important. Key lessons from the policy notes are as follows:

1. Develop dedicated women’s entrepreneurship finance policies and interventions that have clear actions and targets to address the structural barriers impeding women’s access to finance. The design of such programmes could include evaluation aspects that build on the evidence base of lived experiences of women entrepreneurs accessing funding.

2. Establish a common framework for different stakeholders. This would provide networking opportunities for women entrepreneurs to share their experiences and learn from one another, while raising awareness of opportunities. Increased interactions between lending institutions and women entrepreneurs would also be useful in changing perceptions regarding finance accessibility, while informing lenders on the specific challenges for women.

3. Create a conducive environment for smaller businesses by simplifying regulatory requirements to reduce administrative burden and pay greater attention to the specific needs of micro-enterprises. This could include facilitating small and short-term financial needs and providing access to low risk loans for those with limited collateral.

References

[2] Carter, S. et al. (2015), “Barriers to ethnic minority and women’s enterprise: Existing evidence, policy tensions and unsettled questions”, International Small Business Journal: Researching Entrepreneurship, Vol. 33/1, pp. 49-69, https://doi.org/10.1177/0266242614556823.

[4] Coleman, S. et al. (2019), “Policy Support for Women Entrepreneurs’ Access to Financial Capital: Evidence from Canada, Germany, Ireland, Norway, and the United States”, Journal of Small Business Management, Vol. 57/sup2, pp. 296-322, https://doi.org/10.1111/jsbm.12473.

[8] Foss, L. et al. (2019), “Women’s entrepreneurship policy research: a 30-year review of the evidence”, Small Business Economics, Vol. 53/2, pp. 409-429, https://doi.org/10.1007/s11187-018-9993-8.

[5] Henry, C. et al. (2017), “Women’s entrepreneurship policy: a 13 nation cross-country comparison”, International Journal of Gender and Entrepreneurship, Vol. 9/3, pp. 206-228, https://doi.org/10.1108/IJGE-07-2017-0036.

[3] Lee, H. and E. Pollitzer (2016), Gender in Science and Innovation as Component of Inclusive Socioeconomic Growth, Portia Limited, London.

[6] OECD (2021), Entrepreneurship Policies through a Gender Lens, OECD Studies on SMEs and Entrepreneurship, OECD Publishing, Paris, https://doi.org/10.1787/71c8f9c9-en.

[1] OECD/European Commission (2023), The Missing Entrepreneurs 2023: Policies for Inclusive Entrepreneurship and Self-Employment, OECD Publishing, Paris, https://doi.org/10.1787/230efc78-en.

[7] Owalla, B. et al. (2021), “Absent or overlooked Promoting diversity among entrepreneurs with public support needs”, International Journal of Entrepreneurial Venturing, Vol. 13/3, p. 231, https://doi.org/10.1504/IJEV.2021.116841.