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Women have long played a crucial role in the economic and social fabric of communities worldwide. However, in many parts of the world, they have also faced significant barriers when it comes to entrepreneurship and participating in the local economy. Despite these challenges, there is a growing and encouraging trend – women entrepreneurs are on the rise, and their impact is undeniable.
At Opportunity International, empowering women entrepreneurs has become an integral part of achieving our vision of a world in which all people have the opportunity to achieve a life free from poverty, with dignity and purpose.
While women entrepreneurs continue to achieve remarkable success in transforming marginalized communities, they also navigate a challenging landscape. Understanding the challenges and disparities is the first step towards seeing meaningful and lasting change. Here are some challenges women face in developing countries and how Opportunity addresses them.
Challenges and solutions to empowering women entrepreneurs
1. Access to Capital
Access to capital remains one of the most significant barriers for women entrepreneurs. Statistically, women-owned businesses receive significantly less funding than their male counterparts. A study by the International Finance Corporation (IFC) revealed that women entrepreneurs in developing countries face a credit gap of around $320 billion. This gap limits the growth and scalability of businesses and can stifle innovation and economic development.
How we address it
We recognize that addressing gender disparities requires a collaborative effort, and we are proud to work alongside dedicated implementing partners who share our commitment to empowering women. Together, we strive to create an environment where women have the resources, support, and opportunities to thrive as entrepreneurs and leaders in their communities.
As one of the pioneers of microfinance, 97% of our clients are women. We’re committed to developing and delivering innovative financial solutions to help our clients build and grow sustainable income-generating businesses that allow their families to break free from generational poverty and thrive.
2. Cultural and Societal Norms
In regions where traditional gender roles are deeply ingrained, cultural and societal norms can create significant barriers for women entrepreneurs. Women are often trapped at the bottom of the economic ladder as they are excluded from formal education, financial inclusion, and participation in the workforce. And it is usually women who carry the burden of raising children.
The logic becomes quite compelling – if we want to make the most significant dent possible in the fight against poverty, we need to focus on facilitating financial inclusion for female clients.
How we address it
Opportunity International’s Women’s Mentorship Program in Ghana, provides real-life role models by offering women access to successful mentors who have defied these norms and been successful in building better lives for themselves and their families. These mentors become examples of what women can achieve, inspiring mentees to aim higher and challenge traditional gender roles. Through mentorship, women receive guidance, encouragement, and constructive feedback, helping them build confidence in their abilities.
Women entrepreneurs may also face limited access to support, training, and financial literacy, which are vital for personal and business success. This lack of access to networks can further perpetuate the gender gap in entrepreneurship.
How we address it
Savings Groups provide a platform for women to come together and form a supportive community. Members of these groups share common goals of financial empowerment and entrepreneurship. By participating in these groups, women can access a network of like-minded individuals who can offer advice, encouragement, and support.
As women gain confidence and competence, they become better prepared to explore and capitalize on new opportunities.
By continuing to shed light on the impact, challenges, solutions, and success stories of women in entrepreneurship, we aim to inspire, inform, and celebrate the incredible contributions of women entrepreneurs to their communities.
Together, we can continue supporting and uplifting women as they lead the way toward a future without poverty!