Boosting women digital entrepreneurship: Bridging the gender financing gap (UNCTAD)

Arguments

The gap between men and women entrepreneurs in terms of access to capital is large

Supporting facts:

• In the UK, women start and scale their businesses with 50% less capital than men

Topics: Gender gap, Entrepreneurship, Access to Capital

Differentiating between supply side factors and demand side factors can help understand and address the gap

Supporting facts:

• On the supply side, the struggle is in providing the right type of funding according to the unique needs of women

• On the demand side, there is a lack of women who are actively seeking funding

Topics: Gender gap, Entrepreneurship, Supply and Demand

Community building is a very effective government initiative to support women in digital entrepreneurship

Supporting facts:

• Having a sense of community can stimulate the development of a more inclusive entrepreneurial ecosystem

• Successful women can share their stories to inspire others

• Community platforms provide a space to exchange experiences

Topics: Digital Entrepreneurship, Government Initiatives, Women Empowerment

Report

The analysis highlights a significant gender gap in access to capital for women entrepreneurs in the UK. It reveals that women start and scale their businesses with 50% less capital compared to their male counterparts. This disparity in funding opportunities between men and women clearly exists in the entrepreneurial landscape, suggesting a need for change.

The gap is influenced by both supply-side and demand-side factors. On the supply side, there is a challenge in providing the appropriate funding that meets the unique needs of women entrepreneurs. This indicates a lack of tailored financial support and resources available for women seeking to start or grow their businesses.

On the demand side, there is a lack of women actively pursuing funding. This may be due to limited awareness of available funding options, lack of confidence, or systemic barriers that discourage women from seeking financial support for their ventures.

Additionally, it is concerning that many women who run their own businesses do not identify themselves as founders or leaders. This self-perception issue significantly impacts their behavior and pursuits. By not recognizing themselves as entrepreneurs or leaders, women may not fully leverage opportunities, seek growth, or access networks that can support their entrepreneurial journey.

Addressing this issue is crucial for empowering women entrepreneurs and closing the gender gap. Unconscious biases also play a role in perpetuating the gender gap in funding. Personal relationships and networking are significant contributing factors. The analysis indicates that investors and business angels are typically male, and they tend to form relationships with individuals who are similar to them.

This creates a barrier for women entrepreneurs, as they may face challenges accessing networks, mentorship, and funding opportunities due to these biases. To address these challenges, community building emerges as an effective government initiative to support women in digital entrepreneurship.

Building a sense of community can stimulate a more inclusive entrepreneurial ecosystem, allowing for the exchange of experiences, knowledge sharing, and inspiration. Successful women can play a crucial role in this by sharing their stories, as impactful stories can lead to systematic change and serve as a source of inspiration for aspiring women entrepreneurs.

In conclusion, the analysis sheds light on the gender gap in access to capital for women entrepreneurs in the UK. The unequal distribution of funding resources, coupled with self-perception issues, unconscious biases, and limited networking opportunities, contribute to this gap.

However, through community building and the sharing of success stories, policymakers, organizations, and communities can work towards creating a level playing field for women in entrepreneurship, encouraging their empowerment and economic growth.

Arguments

Investing funds into female-led businesses

Supporting facts:

• The query arises when investing funds into venture capital which later invests in startups.

• Differentiation between startups and SMEs.

• The challenge is finding the right vehicle to invest into female-led businesses.

Topics: Startups, SMEs, Venture Capital, Funding

Report

During a discussion about investing funds into female-led businesses, the main focus was on the challenge of finding the appropriate investment vehicle and integrating it into venture capital funds. The speakers emphasized the importance of identifying the right means of investment and differentiating between startups and SMEs.

They also stressed that investing in female-led businesses should be more than just a mandate; instead, it should be seamlessly integrated into the overall funding approach. Biram Sarkam, the E-Trade for Women Advocate representing Francophone Africa, contributed by highlighting the need for the right investment vehicle for female-led businesses.

This emphasized the importance of tailoring the investment strategy to meet the unique challenges and opportunities faced by these businesses. The discussion also highlighted the broader implications of investing in female-led businesses, aligning with several Sustainable Development Goals, including SDG 5 for gender equality, SDG 8 for decent work and economic growth, and SDG 10 for reduced inequalities.

The speakers argued that prioritizing and integrating these investment initiatives is essential to advance these goals. Overall, the sentiment of the discussion was neutral, with one speaker advocating for finding the appropriate investment vehicle for female-led businesses. This underscores the significance of actively addressing the challenges and barriers faced by female entrepreneurs and ensuring that their businesses receive the necessary support and funding.

Arguments

Digital economy in Africa is projected to significantly increase the GDP by 2050

Supporting facts:

• As of last year, the African economy was around $3 trillion in GDP.

• According to an IFC study, by 2050, the digital economy in Africa will reach close to a trillion dollars.

Topics: Digital economy, Africa, GDP

Venture capital funding in Africa is significantly network and trust based.

Supporting facts:

• When investing in a startup, one is investing in a team and an idea, meaning trust and personal perceptions play a big role.

• Women led companies attract less investor interest due to several factors.

Topics: Venture capital, Africa, Funding

Babacar Seck supports high potential entrepreneurs and MSMEs by ensuring that the assessment and screening process is not discriminatory and gives equal chance to female entrepreneurs.

Supporting facts:

• Babacar Seck works at the fund manager level

• Prioritize investing in funds that have a diverse senior management team

Topics: discrimination, equal opportunity, female entrepreneurs

Babacar emphasises on directly investing in businesses led by women, taking risks and constantly looking for performing businesses led by women.

Topics: Women in business, risk taking, direct investment

Report

The digital economy in Africa is projected to have a significant impact on GDP, with estimates suggesting it could reach nearly a trillion dollars by 2050. This reflects the potential for economic growth through digital technologies and innovation. Currently, Africa’s GDP stands at approximately $3 trillion.

These positive projections emphasize the importance of investing in and leveraging opportunities in the digital economy in Africa. However, venture capital funding in Africa relies heavily on networks and trust, which can lead to a lack of diversity and inclusivity.

Women-led companies tend to attract less investor interest due to various factors. This highlights the need for a more equitable approach to venture capital funding in Africa. To achieve gender equality and support economic growth, empowering women entrepreneurs through mentoring, coaching, and access to resources is critical.

Studies have shown that women often underestimate their potential, and it is crucial to ensure proper assessment of the quality of their businesses. By providing the necessary support, women entrepreneurs can be empowered to reach their full potential and contribute to Africa’s overall economic growth.

Additionally, it is vital for the venture capital sector in Africa to avoid fostering a culture that excludes diversity and supports a “tech-bro” mentality. Building diverse talent pipelines and providing coaching services alongside capital investments can help create a more inclusive investment landscape in Africa.

Ensuring an assessment and screening process that is fair and unbiased is essential. Babacar Seck, a fund manager, supports this by prioritizing investments in funds with diverse senior management teams. This approach aims to eliminate discrimination and provide equal opportunities for female entrepreneurs to succeed.

Increasing diversity in senior management teams within the venture capital sector has been shown to provide different perspectives and enhance decision-making processes. Female-led co-investments have shown success, reflecting the positive impact of having female senior investors. Babacar Seck also emphasizes the importance of direct investments in businesses led by women, promoting risk-taking, and actively seeking out performing businesses led by women.

This approach supports both gender equality and economic growth. Promoting female leadership in invested companies is crucial, as it fosters a diverse work environment and creates opportunities for women to become future founders. Encouraging female leadership within the venture capital sector in Africa helps create a supportive ecosystem for female entrepreneurship.

In conclusion, the digital economy in Africa presents significant opportunities for economic growth and increased GDP. However, addressing the challenges surrounding venture capital funding, empowering women entrepreneurs, promoting diversity, and eliminating discriminatory practices are essential. By doing so, Africa can foster a more inclusive and successful entrepreneurial ecosystem, leading to sustainable economic development and gender equality.

Arguments

MSMEs are important for growth and job creation in developing countries

Supporting facts:

• MSMEs account for more than 80% of net job origination in developing countries

Topics: MSMEs, Economic Growth, Job Creation

Access to credit is an issue for MSMEs due to perceived risk

Supporting facts:

• The global gab in SME funding is around $5 trillion

Topics: MSMEs, Credit Access, Risk Perception

Female entrepreneurs face a larger burden of the funding gap

Supporting facts:

• Funding gap for female entrepreneurs is estimated to be $1.7 trillion

Topics: Female Entrepreneurs, Funding Gap, Gender Bias

Several factors hinder women’s access to capital: limited collateral, lack of network and mentorship, and discriminatory legal environments

Topics: Women, Capital Access, Collateral, Network, Mentorship, Law, Discrimination

Financial products and services tailored to the needs of women MSMEs prove effective

Supporting facts:

• case flow-based lending and focus on the informal sector have proved effective

Topics: Financial Products, Services, Women MSMEs

it’s critical for women entrepreneurs to have access to private equity and venture capital

Supporting facts:

• only around 7% of PE and VC capital in emerging markets goes to female entrepreneurs, which is less than $12 billion in 2022 out of around $200 billion

• only around 20% of private equity employees at fund managers were women in 2022, and only 11% were senior employees of fund manager

Topics: Women Entrepreneurs, Venture Capital, Private Equity

Fund managers with a gender balanced team delivers higher fund returns

Supporting facts:

• funds with gender balanced senior investment team generated 10 to 20 percent higher returns than fund managers that did not have a gender balance in their management

Topics: Gender Equality, Investment, Fund Management

Venture capital asset class is not suited to everything

Supporting facts:

• There has to be the ability to scale fast for venture capital to be suitable

• Loans or micro loans could be more suited depending on the stage of the company

Topics: Venture Capital

Venture capital can be powerful when conditions are right

Supporting facts:

• Venture capital can allow companies to scale fast and achieve other rounds of funding

Topics: Venture Capital

Women do not get enough funding from venture capitalist funds

Supporting facts:

• If the venture capital funds, incubators, and accelerators are all men, women receive fewer funds

Topics: Gender Equality, Venture Capital

Report

The analysis explores the importance of Micro, Small, and Medium Enterprises (MSMEs) in developing countries, their role in economic growth and job creation, and the challenges they face in accessing credit. It also addresses the funding gap experienced by female entrepreneurs and the barriers they encounter in accessing capital.

The analysis underscores that MSMEs are crucial for economic development, accounting for over 80% of net job creation in developing countries. However, access to credit is hindered by the perceived risk associated with MSMEs, creating a global funding gap of approximately $5 trillion for SMEs.

Addressing this issue is imperative for promoting inclusive economic growth and reducing inequalities. The analysis highlights the significant funding gap of $1.7 trillion faced by female entrepreneurs. They face greater challenges than their male counterparts in accessing capital for their businesses.

Limited collateral, lack of networks, mentorship opportunities, and discriminatory legal environments contribute to the barriers faced by women entrepreneurs. On a positive note, tailored financial products and services have proven effective in supporting women MSMEs. Case flow-based lending and a focus on the informal sector have shown promise in meeting the specific needs of women entrepreneurs.

However, the analysis reveals the limited access to private equity and venture capital for women entrepreneurs. Only a small fraction, around 7%, of such funding in emerging markets is allocated to female entrepreneurs, amounting to less than $12 billion out of approximately $200 billion.

Bridging this gap is crucial for empowering women-owned businesses. Venture capital is recognized as a powerful tool for company growth and subsequent fundraising rounds, but it may not be suitable for every business. Alternative financing options like loans or micro loans should be considered based on the company’s stage of development.

Additionally, the analysis emphasizes the importance of gender balance in decision-making bodies within the private equity and venture capital industry. Increasing the representation of women on boards, investment committees, and in accelerator and incubator programs is seen as essential for promoting inclusivity and reducing inequalities.

Finally, the analysis advocates for the adoption of gender lens investing practices by venture capital fund managers. This involves prioritizing gender considerations in screening investment proposals to promote gender equality and reduced inequalities. Overall, the analysis provides valuable insights into the significance of MSMEs, the challenges faced by MSMEs in accessing credit, the funding gap experienced by female entrepreneurs, and the barriers to women’s access to capital.

It underscores the importance of tailored financial products, improved access to private equity and venture capital, gender balance in decision-making bodies, and the adoption of gender lens investing practices for inclusive and equitable economic development.

Arguments

Entrepreneurship is a pathway to economic empowerment for women in Cambodia, but several barriers prevent them from realizing their potential

Supporting facts:

• The history of women in STEM has historically favored men due to societal mindsets, technological advancements, and unequal opportunities.

• Many Cambodian women are unable to access education or capital, are bound by family responsibilities, and therefore struggle with utilizing digital platforms.

Topics: Women empowerment, Entrepreneurship, Digital market

Facing double standards as a female entrepreneur

Supporting facts:

• Difficulties in securing funding as a female entrepreneur

• Bias faced from investors even if they are women

Topics: Entrepreneurship, Gender Equality

Engage, Equip and Empower

Supporting facts:

• Importance of understanding problems faced by entrepreneurs through roundtable discussions

• Necessity of building skills and capacity

• Significance of empowering from within and setting role models

Topics: Entrepreneurship, Capacity Building, Public Speaking

Importance of Public Speaking

Supporting facts:

• First hand experience of struggling to pitch due to background in IT

• Believes public speaking should be imbued in education from a young age

Topics: Education, Girl’s Empowerment

Changing societal norms

Supporting facts:

• Traditionally women are expected to be submissive and not participate actively in discussions, which needs to change for business women

• Business women are considered to not adhere to the traditional norms if they are assertive

Topics: Gender Equality, Societal Norms

Increasing STEM Education

Supporting facts:

• Roadmap includes having 50% graduates in STEM of which 40% should be women

• Believes STEM education should begin at a young age including young mothers teaching their kids

Topics: STEM, Education, Girl’s Empowerment

STEM education can be taught using simple, everyday activities like cooking.

Supporting facts:

• Adding salt to water to make egg float can be used to engage kid’s interest in science

Topics: STEM Education, Parenting, Kitchen Science

Report

The analysis focuses on the barriers and opportunities for women’s economic empowerment in Cambodia, with particular emphasis on entrepreneurship, digital platforms, and STEM education. The speakers highlighted the historical disadvantage that women in STEM face due to societal mindsets, unequal opportunities, and a lack of access to education and capital.

This has resulted in a gender imbalance in STEM fields, with men being favoured. Similarly, in the realm of entrepreneurship, many Cambodian women struggle to access education and capital, are bound by family responsibilities, and face difficulties in utilising digital platforms.

Despite these challenges, there were positive examples and initiatives discussed during the analysis. One such example was the creation of Khmom eShop, an e-commerce platform, by H.E. Ratha to support women entrepreneurs. Additionally, during the COVID-19 pandemic, women were encouraged to use digital platforms to keep their businesses operational.

The Cambodian government also released the SME Bank, which provides women entrepreneurs with access to finance at low interest rates. These initiatives aim to encourage women’s participation in digital platforms and provide them with affordable loan facilities to boost their businesses.

The analysis also highlighted the importance of building skills and capacity for women in these fields. Roundtable discussions were mentioned as a means of understanding the specific problems faced by entrepreneurs. It was argued that empowering women from within and setting role models can contribute to their success.

Additionally, the analysis emphasised the importance of public speaking skills. One speaker shared their firsthand experience of struggling to pitch due to their background in IT and emphasised the need for public speaking to be included in education from a young age.

Societal norms and gender expectations were identified as important factors that need to be addressed for women’s economic empowerment. Traditionally, women are expected to be submissive and not actively participate in discussions, hindering their progress in business. Moreover, assertive business women are often seen as not adhering to traditional norms.

Thus, it was argued that changing societal norms and challenging gender expectations are crucial for women’s economic empowerment. STEM education was also highlighted as an area that can contribute to women’s economic empowerment. The analysis discussed a roadmap that includes a goal of having on 50% of STEM graduates being women, with a specific focus on young mothers teaching their children STEM skills.

The importance of introducing STEM education at a young age was emphasised in order to foster long-term interest and participation. Furthermore, the speakers discussed practical ways of promoting STEM education, including incorporating it into everyday activities. For example, simple kitchen science experiments, like adding salt to water to make an egg float, can engage children’s interest in science and serve as a starting point for STEM education.

The speakers advocated for women taking an active role in teaching their children and grandchildren about STEM, emphasising that learning can occur anywhere, even at the kitchen table. In conclusion, the analysis recognises the barriers that women face in entrepreneurship, digital platforms, and STEM education in Cambodia, but it also highlights positive initiatives and strategies that can empower women economically.

Encouraging women’s participation in digital platforms and providing them with affordable loan facilities were identified as key ways to boost their businesses. Building skills, changing societal norms, and increasing STEM education were emphasised as important steps towards achieving gender equality and economic growth.

Overall, it was argued that empowering women in these areas can lead to a more inclusive and prosperous society.

Arguments

Digital entrepreneurship is growing and offers opportunities for women

Supporting facts:

• Digital technologies are helping women break down educational and professional barriers

• The African Union’s digital transformation strategy can help further this aim if implemented

Topics: Digital entrepreneurship, Women empowerment, Access to resources

Digital gender divide is a challenge but also an opportunity to increase women’s participation and representation

Supporting facts:

• 88% of ICT patents are initiated or invented by men, 2% by women

Topics: Gender divide, Digital inclusion, Women’s representation

Inclusion of women in digital technologies can boost economic growth

Supporting facts:

• Women add value to the economy. Economies that exclude women are at a disadvantage

Topics: Women inclusion, Economic growth, Digital technologies

Zimbabwe targets 75% internet penetration by 2025, which can bring more women in rural areas into digital ecosystem

Supporting facts:

• Postal and Communications Regulatory Authority of Zimbabwe (PORTRAS) report 2022

Topics: Zimbabwe, Internet penetration, Digital inclusion

Women’s participation in the economy is far behind

Supporting facts:

• In Zimbabwe, only 15% of women own their corporates

• Women are far behind in the participation of the economy generally

Topics: Women Empowerment, Economy

Deliberate policies are needed to promote participation of women

Supporting facts:

• Zimbabwe has a parastatal called potras which is the Postal and Communications Regulator Authority of Zimbabwe. The responsibilities that government has given it is not just to regulate, but also to train women specifically to participate in ICT

Topics: Policy Making, Women Empowerment

Awareness building and training of women in ICT is important

Supporting facts:

• In Zimbabwe, community information centers built, especially in rural areas

• Civil Society involved in the mobilization, awareness building, and training of women in ICT

Topics: ICT, Education, Women Empowerment

Promotion of girls in Science, Technology, Engineering, and Mathematics (STEM) fields

Supporting facts:

• Zimbabwe government has put a scholarship to assist girls to go into STEM

• Participation in the International Girls in ICT Day

Topics: STEM, Education, Women Empowerment

Zimbabwe has a Venture Capital fund for financial support.

Supporting facts:

• The fund is run by the Ministry of Finance

Topics: Venture Capital fund, Finance, Zimbabwe

There is a women’s bank focusing on women’s financial challenges

Supporting facts:

• The bank specialises in addressing women’s financial challenges

Topics: Women empowerment, Finance, Zimbabwe

Solidarity funding and group lending have been established to aid women who lack security for bigger banks.

Supporting facts:

• Women discuss their plans in groups of three or five and guarantee each other for funding

Topics: Women empowerment, Group lending, Finance, Zimbabwe

Report

Digital entrepreneurship is growing and providing opportunities for women to overcome educational and professional barriers. This has positive implications for achieving gender equality and economic growth. However, the digital gender divide remains a challenge, with only 2% of ICT patents initiated or invented by women.

Bridging this gap is crucial in increasing women’s participation and representation in the digital sector. Inclusion of women in digital technologies is essential for boosting economic growth, as women contribute to the economy and excluding them puts economies at a disadvantage.

In Zimbabwe, women face significant challenges, with only 15% owning their own corporates and lagging behind in overall economic participation. To address these issues, deliberate policies and initiatives are required to promote women’s participation in ICT. Zimbabwe’s Postal and Communications Regulatory Authority (PORTRAS) not only regulates but also focuses on training women to participate in the ICT sector, demonstrating the government’s commitment to empowering women.

Increased awareness building and training for women in ICT is important. Zimbabwe has established community information centers in rural areas and civil society organizations are actively involved in mobilizing and providing training for women in ICT. Promoting girls in STEM fields is another avenue for empowering women in the digital space.

The Zimbabwean government has introduced scholarships to assist girls in pursuing STEM education, and initiatives like the International Girls in ICT Day encourage girls to explore careers in STEM. In terms of financial support, Zimbabwe has made positive strides. The government has established a Venture Capital fund to provide financial assistance to entrepreneurs, and a women’s bank addresses women’s financial challenges.

Solidarity funding and group lending have been established to assist women who lack security for traditional banks. Women form groups and guarantee each other for funding, providing an alternative for women facing obstacles in accessing financial services. Overall, efforts to promote women’s participation and economic empowerment in the digital sector are crucial.

By addressing the digital gender divide and implementing supportive policies, education, training, and financial aid, Zimbabwe can create a more inclusive environment. These efforts will contribute to the country’s overall development and progress.

Arguments

Women still struggle to break the so-called glass ceiling in the world of business, including the digital sector.

Supporting facts:

• Evidence of ingrained gender bias in the choices young girls make regarding their education

Topics: Women in business, Digital sector, Glass ceiling

Women entrepreneurs have difficulty accessing finance, building networks, and finding role models.

Topics: Women entrepreneurs, Access to finance, Professional networks, Role models

There is a significant gender financing gap for women digital entrepreneurs

Supporting facts:

• Women entrepreneurs have less chances to get approved for bank loans

• Less than one-third of the MSME finance gap is attributed to women-owned businesses

Topics: Gender equality, Entrepreneurship

There is an urgent need for action to address the gender financing gap

Supporting facts:

• More than 40% of formal MSMEs in developing countries have unmet financing needs

• Women-owned businesses represent 23% of MSMEs but they account for only one-third of the MSME finance gap

Topics: Gender equality, Finance

Governments, financial institutions, and the private sector can play a role in investing in women-owned businesses

Supporting facts:

• Government can partner with financial institutions and provide incentives or warranties to invest in women-owned businesses

• Private sector can use alternative metrics on credit data such as payment reliability for which women tend to score very well

Topics: Gender equality, Finance, Public-private partnerships

Trainings, mentorship programs, and collecting more gender-based data can help support women entrepreneurs

Supporting facts:

• Government can provide training and mentorship programs to help women entrepreneurs to become investment-ready

• There is a need to collect more data about the gender and gender-based discrimination in women-owned businesses

Topics: Gender equality, Business support, Data collection

Digital entrepreneurship is growing, and women should not be left behind

Supporting facts:

• 88% of the ICT patents are initiated or invented by men and only 2% by women. The remaining 10% are invented by both sexes

• Using digital technologies, women are breaking down educational and professional barriers

• Digital technologies are advancing gender equality by offering women and girls platforms to share their own stories and become visible in matters of policy, advocacy, and decision-making

• Zimbabwe targets at 75% internet penetration for all users by 2025

Topics: Gender Equality, Digital Entrepreneurship, Economic empowerment

Economies thrive when women are included

Topics: Female Inclusion, Economic growth

Staggering $5 trillion financing gap

Supporting facts:

• Only 2% of women get their patents

• Women have limited access to necessary collateral to secure loans

Topics: Women Entrepreneurs, Finance

Making an egg float in a glass of water

Topics: Science Experiment

The importance of preaparing groundwork for future

Supporting facts:

• Noted the need of unlocking finance and also preparing groundwork for future generations

Topics: funding for women, digital entrepreneurship, investment for women

Report

The analysis reveals a range of challenges faced by women in the digital entrepreneurship sector. One of the key challenges is the persistence of the glass ceiling in the world of business, including the digital sector. Despite progress in gender equality, women continue to struggle to break through this barrier.

There is evidence of ingrained gender bias in the choices young girls make regarding their education, which further perpetuates the gender gap in STEM fields. To address this issue, it is crucial to engage more women in science, technology, engineering, and mathematics (STEM) education.

Currently, only 35% of STEM students in higher education globally are women, according to UNESCO. By encouraging more women to pursue STEM education, it can help bridge the gender gap in digital entrepreneurship and the larger tech industry. This requires a concerted effort from educational institutions, governments, and industry leaders to provide equal opportunities and create a supportive environment for women in these fields.

In addition to the glass ceiling and limited access to STEM education, women entrepreneurs face difficulties in accessing finance, building networks, and finding role models. Women entrepreneurs have a harder time getting approved for bank loans, and there is a significant gender financing gap for women digital entrepreneurs.

This financing gap is also reflected in the fact that women-owned businesses represent only one-third of the micro, small, and medium enterprise (MSME) finance gap. It is clear that urgent action is needed to address the gender financing gap. Women’s access to finance is crucial for their economic empowerment and the overall goal of achieving gender equality.

Currently, more than 40% of formal MSMEs in developing countries have unmet financing needs, and women-owned businesses account for a significant portion of this gap. Governments, financial institutions, and the private sector can play a role in closing this gap by partnering with women-owned businesses, providing incentives or warranties to invest in them, and using alternative metrics on credit data that highlight women’s payment reliability.

Moreover, governments can support women entrepreneurs through various initiatives. They can provide training and mentorship programs to help women entrepreneurs become investment-ready. By collecting more data about the gender and gender-based discrimination in women-owned businesses, policymakers can better understand the challenges they face and develop effective policies and support systems.

On a positive note, the analysis also highlights the positive impact of digital entrepreneurship in advancing gender equality. Digital technologies have provided women and girls with platforms to share their stories, break down educational and professional barriers, and become visible in matters of policy, advocacy, and decision-making.

In Zimbabwe, for example, the government aims to achieve 75% internet penetration for all users by 2025, which can further enhance digital entrepreneurship opportunities for women. The African Union’s digital transformation strategy is seen as a crucial step in addressing the exclusion of women in digital entrepreneurship.

By crafting a strategy that includes women who were previously excluded, the African Union aims to create more inclusive opportunities and tap into the potential of women in the digital economy. In conclusion, while there are significant challenges faced by women in the digital entrepreneurship sector, there is cautious optimism.

Models exist, and work is being done to address these challenges. By engaging more women in STEM education, providing support through training and mentorship programs, collecting gender-based data, and investing in women-owned businesses, economies can thrive. Governments, financial institutions, and the private sector all have a role to play in achieving gender equality and tapping into the untapped potential of women in digital entrepreneurship.

Arguments

Women entrepreneurs have less chances to get approved for bank loans

Supporting facts:

• Women receive smaller loans and with higher interest rates.

• The MSME finance gap for women-owned businesses is deeper.

Topics: Women Entrepreneurs, Bank loans, Gender Disparity

Digitalization is transforming economies and creating new opportunities

Supporting facts:

• Transformation is happening at lightning speed, boosting productivity.

• Digital technology is being used in a wide range of sectors including e-commerce, ed-tech, fintech, and agri-tech.

Topics: Digitalization, Economies, Opportunities

Report

The analysis provides insights into various perspectives on key issues related to women entrepreneurship, digitalization, and financing in developing countries. One argument highlighted is that women entrepreneurs face barriers when it comes to accessing bank loans. Supporting evidence shows that women receive smaller loans with higher interest rates, making it more difficult for them to grow their businesses.

This is a significant challenge as access to finance is crucial for the success and expansion of any business. The analysis concludes that women entrepreneurs have fewer chances of getting approved for bank loans, indicating a gender disparity in the financial sector.

On the other hand, the analysis presents a positive outlook on digitalization, emphasising its transformative effects on economies and the creation of new opportunities. Digital technology is rapidly driving productivity growth in various sectors such as e-commerce, ed-tech, fintech, and agri-tech.

This supports the argument that digitalization is leading to economic growth and providing avenues for innovation and development. Moreover, the analysis highlights the importance of bridging the gender financing gap to support women digital entrepreneurs. It points out that over 40% of formal Micro, Small, and Medium Enterprises (MSMEs) in developing countries have unmet financing needs.

The financing gap is estimated to be around $5 trillion, underlining the significant financial challenges faced by women entrepreneurs. The analysis concludes that addressing this gap is crucial for empowering women in the digital entrepreneurship ecosystem. Additionally, the analysis suggests that action is needed in developing countries to develop venture capital markets, especially for women digital entrepreneurs.

It highlights the severity of the unmet financing needs faced by women entrepreneurs in developing countries and emphasizes the underdevelopment of venture capital markets in these regions. By improving access to venture capital, more opportunities can be created for women entrepreneurs to scale and grow their businesses.

Overall, the analysis sheds light on the gender disparities in accessing finance, the transformative power of digitalization, and the need for action in developing countries to support women entrepreneurs. These insights can inform policymakers, financial institutions, and relevant stakeholders in implementing effective strategies that promote gender equality, foster digital transformation, and address financing gaps for women entrepreneurs.

Arguments

Yasmine Abdel Karim raised $10 million for her startup in the logistics sector

Supporting facts:

• She managed to raise $3 million seed round while the product was not yet running

• She was selling her idea instead of an actual product

Topics: Fundraising, Startup, Logistics sector

Women entrepreneurs survive and do better during market downturn

Supporting facts:

• 60% of the businesses in their region that failed were run by men

• Women-led businesses were oftentimes undervalued compared to male-run companies achieving the same numbers

• Now investors are regretting not investing in women-led businesses

Topics: Women Entrepreneurs, Business sustainability

Yasmine is optimistic about women’s access to financing and sees improvement

Supporting facts:

• Access to financing for women was 1% two years ago and is now at 3%

Topics: Women Entrepreneurs, Access to Financing

Yasmine Abdel Karim speaks about the challenges and struggles in raising funds and pitching to investors

Supporting facts:

• Abdel Karim raised $10 million after speaking to 168 investors

• Some investors asked irrelevant questions to her pitch

• She needed therapy after raising the round due to the struggle

Topics: Fundraising, Investors, Business, Entrepreneurship

Report

Yasmine Abdel Karim, an entrepreneur in the logistics sector, achieved a remarkable feat by raising $10 million for her startup, even before the product was operational. This underscores the significance of selling ideas and highlights the potential for women-led businesses, particularly during market downturns.

Yasmine’s success serves as inspiration for other aspiring entrepreneurs and showcases the value of perseverance and innovative thinking. In terms of access to financing for women, Yasmine remains optimistic about the progress that has been made. She notes that the percentage of financing available to women has increased from a mere 1% to 3% in recent years.

This positive shift indicates a growing recognition of the capabilities and potential of women entrepreneurs. Yasmine’s positivity reflects a broader trend towards promoting gender equality and reducing inequalities outlined in the Sustainable Development Goals. Moreover, Yasmine discusses the unique approach that women entrepreneurs often bring to their businesses.

They exhibit a greater inclination towards valuing sustainability and carefully examining unit economics. This stems, in part, from the minority status that women entrepreneurs face, which drives them to be more cautious and meticulous in managing their businesses. Their efficiency with funds and emphasis on sustainability contribute to the long-term success and resilience of women-led enterprises.

Despite the progress made, Yasmine acknowledges the challenges and struggles that women entrepreneurs encounter in raising funds. She highlights the issue of investors asking irrelevant questions during pitches, which can hinder the fundraising process. Yasmine’s own experience emphasizes the necessity of mental resilience, as she admits to needing therapy after navigating the complexities and frustrations of securing investors.

To further address this issue, Yasmine stresses the importance of preparation and hard work in overcoming the challenges of fundraising. She reveals that she diligently prepared for her pitches by writing things down and maintaining a confident façade. Yasmine’s dedication and emphasis on the power of thorough preparation serve as valuable insights for aspiring entrepreneurs navigating the fundraising landscape.

Lastly, Yasmine advocates for the inclusion of more women in investing. She acknowledges that some investors struggle to understand or believe in business models presented by women entrepreneurs. By encouraging greater female representation in the investment landscape, Yasmine aims to bridge this gap and foster a better understanding of the unique value and potential of women-led ventures.

In conclusion, Yasmine Abdel Karim’s journey as an entrepreneur in the logistics sector exemplifies the possibilities and challenges faced by women in the business world. Her success in raising significant funds for her startup underscores the importance of selling ideas and the potential for women-led businesses to thrive, even in challenging market conditions.

Yasmine’s optimism about the improvement in access to financing for women, combined with her emphasis on the efficiency and sustainability-focused approach of women entrepreneurs, adds depth to the discussion. Furthermore, her acknowledgment of the struggles faced during the fundraising process and her recommendations for increased preparation and female inclusion in investing provide valuable insights and lessons for aspiring entrepreneurs.