By Mary Ellen Iskenderian, President and CEO, Women’s World Banking
The International Finance Corporation estimates that approximately 65% of women-led small and medium enterprises (SMEs) in developing economies are either unserved or underserved financially 1. For a women entrepreneur, this means the odds are already stacked against the growth potential of her business. Giving women access to credit and other financial tools will not only help those businesses, it will also help us achieve critical Sustainable Development Goals (SDGs).
This gap in access to capital for women-led SMEs exists despite significant contributions by these businesses to gross domestic product and employment. Women-owned businesses account for approximately 40% of the world’s 340 million informal micro, small and medium enterprises and one-third of the 40 million formal SMEs 2. A projected 112 million female business owners also employ at least one other person in their business 3.