Kaesha Rajgor* – USA
Women, in numerous developing countries worldwide, lack access to basic financial services. For many, there are certain barriers—legal and cultural—that affect their ability to receive loans, credit, capital, or even register with a bank. In fact, over 740 million women globally are unbanked, according to the World Bank (“World Econmic”). This, in turn, affects women entrepreneurs as they face significant barriers in accessing credit and capital, limiting their ability to start and grow businesses. As the World Economic Forum reports, the total finance gap for women across micro, small, or medium enterprises is estimated to be valued at $1.7 trillion, despite the fact that “women entrepreneurs own 22% of micro-enterprises and 32% of small and medium enterprises” (“World Economic”). To address this gap and expand access to financial services—one of the most critical drivers of growth and poverty reduction—we must first understand the barriers and challenges.
Violeta Pacheco Mejía is an entrepreneur who owns Tejidos Peruanos, a designer, eco-friendly alpaca and cotton clothing company based in Lima, Peru. Over the past eighteen years, she has expanded her business, opening a thriving factory, and exporting products to more than six countries. Yet, each of the investments for her growing business—including purchasing a building, hiring employees, and acquiring more raw materials and equipment—were financed through a loan her husband received from the bank (“World Economic”). As a woman, Violeta couldn’t access a loan on her own. Her story reflects the very real reality of financial exclusion in many parts of the world. In fact, many women entrepreneurs hesitate to even apply for loans due to low financial literacy, risk aversion, or fear of failure. Among those who do seek financing, lack of collateral is the most commonly cited impediment. The World Bank’s Enterprise Surveys show that 78% of the assets of a typical business in the developing world consist of movable property—like equipment, inventory, and accounts receivable—while only 22% include immovable real estate (“World Bank. Access”). But many lending institutions only accept immovable property as collateral, thereby excluding most women-led enterprises from accessing credit.
Women may also be subjected to unfavorable banking practices—such as higher interest rates, shorter repayment periods, and stricter documentation requirements. A study across Vietnam found that “fewer firms with female CEOs borrow from commercial banks than companies with male counterparts,” reflecting the embedded gender bias in commercial finance (Bui).
Moreover, social norms and legal restrictions in some countries still prevent women from independently signing financial contracts, opening bank accounts, or owning land. For example, five economies in the African region—Cameroon, Chad, Equatorial Guinea, Guinea-Bissau, and Niger—require the husband’s permission to open a bank account, falling under a form of marital power, a doctrine relegating “women in a marriage to a status similar to that of a legal minor” (“World Bank. Women”). In all, these issues result in the systemic undercapitalization of women-owned enterprises. Without financial inclusion, women lose critical opportunities to invest in their businesses, create jobs, reduce poverty, and drive sustainable economic development.
Implementing gender-inclusive financial policies, however, has numerous benefits. Addressing gender gaps in access to finance can increase innovation, enhance the diversity of ideas, and improve the overall performance of entrepreneurial ecosystems (Gvetadze). Inclusive policies exist not only to serve women—they contribute to stronger, more resilient economies. Evidence also shows that when women are economically empowered, they reinvest 90% of their income into their families and communities (“Global Citizen”). Gender-inclusive financial systems therefore play a key role in improving health, education, and poverty outcomes at the community level.
Effective solutions are already being implemented to promote gender-inclusive financial access. The Ghana Women Entrepreneurs Finance Initiative (WEFI) is working to build the capacity of local financial institutions to better serve female clients (“We-Fi”). Digital financial services also offer promising solutions. Initiatives like the World Bank’s Digital2Equal program are helping financial technology companies to design products specifically for underserved women (“International Finance Corporation”). By offering mobile banking, digital credit assessments, and simplified documentation processes, these tools can bypass traditional barriers such as travel distance, lack of collateral, and documentation hurdles.
The Bill & Melinda Gates Foundation also highlights models like CARE’s Village Savings and Loans Associations (VSLAs) that provide grassroots women’s groups with the tools and training to build financial security without relying on formal banking institutions (“CARE”). The foundation stresses the importance of designing financial services that fit the needs and realities of low-income women—rather than expecting women to adapt to rigid and exclusionary systems.
The barriers that women face in accessing financial services are deeply rooted in structural inequality. But by investing in inclusive financial systems and gender-responsive policies, the global community can unlock the full economic potential of women entrepreneurs. When women like Violeta are no longer required to depend on others to grow their businesses, the ripple effect extends beyond individuals—it uplifts entire communities and accelerates progress toward gender equity and economic justice, for all.
Works Cited
Bill & Melinda Gates Foundation. Access to Capital: Unlocking Women’s Economic Power. https://www.gatesfoundation.org/ideas/womens-economic-power/access-capital. Accessed 15 July 2025.
CARE Australia. An Integrated Approach to Empowering Women and Youth in Uganda through VSLAs. Dec. 2014, https://www.care.org.au/wp-content/uploads/2014/12/CARE-VSLA-Report-Uganda-Eco-Devel.pdf. Accessed 15 July 2025.
Bui, Nguyen, et al. “Female leadership and borrowing constraints: Evidence from an emerging economy.” International Review of Financial Analysis, vol. 81, 222. Elsevier, https://www.sciencedirect.com/science/article/abs/pii/S1057521918304319. Accessed 15 July 2025.
Global Citizen. 10 Reasons Why Investing in Women and Girls Is So Vital. https://www.globalcitizen.org/en/content/10-reasons-why-investing-in-women-and-girls-is-so/. Accessed 15 July 2025.
Gvetadze, Salome, and Sophie Hers. Gender Gaps in Access to Finance: A Literature Review. EIF Working Paper 2023/87, European Investment Fund, June 2023, https://www.eif.org/news_centre/publications/eif_working_paper_2023_87.pdf. Accessed 15 July 2025.
International Finance Corporation (IFC). Digital2Equal Program.
https://www.ifc.org/en/what-we-do/sector-expertise/gender/digital-empowerment/digital2equal program#:~:text=Digital2Equal%20is%20an%20IFC%2Dled,global%20ride%2Dhailing%20firm%20Uber. Accessed 15 July 2025.
We-Fi. Women Entrepreneurs Finance Initiative. https://we-fi.org/. Accessed 15 July 2025.
World Bank. Access to Finance. Digital for Women, https://digitalforwomen.worldbank.org/access-finance. Accessed 15 July 2025.
World Bank. Women, Business and the Law: Regional Profile – West and Central Africa. Feb. 2021, https://wbl.worldbank.org/content/dam/sites/wbl/documents/2021/02/2022.3.31_WBL_Regional%20Profile_WCA.pdf. Accessed 15 July 2025.
World Economic Forum. Women Entrepreneurs Face a $1.7 Trillion Credit Gap — Here’s How to Close It. 4 Oct. 2023,
https://www.weforum.org/stories/2023/10/women-entrepreneurs-finance-banking/#:~:text=According%20to%20the%202021%20World,such%20as%20the%20Ignite%20programme. Accessed 15 July 2025.
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