clsoing the funding gap for women smes
TRANSCRIPT
Investing in women SME’sOvercoming barriers to close the funding gap
Nicolette Loonen
SMO – Rotterdam - 6 March 2015
Entrepreneurial women drive wealth
• 224 million women entrepreneurs in 67 economies (GEM, 2012)• Women entrepreneurs boost global wealth• Fastest growing group of entrepreneurs• Higher & more stable financial returns• Bigger social impact• Value driven• Invest in their community
Access to capital hurdle for women
• 70% of women-owned SMEs are unserved or underserved by financial institutions (IFC)• Estimated funding gap USD 320 billion (IFC &
McKinsey)
Mismatch demand & supply
Challenges for women SME’s
• Different view on growth• Lower self-assesment of capabilities• Pitch their business in ‘a different language’• Unfamiliar with financial jargon• Do it yourself mentality• Undercapitalized• Cultural and legal constraints• Traditional gender roles
Challenges for investors
• Bias• No holistic approach• Gender not identified as an opportunity• Not many female business angels• Focus on start ups
What can be done?
Women entrepreneurs• Look for alternatives• Step out of your comfort zone• Talk to rolemodels• Delegate• Make use of resources• Don’t wait too long
What can be done?
Investors/financial institutions• Look at portfolio from a gender perspective• Be transparant• Be patient• Look for opportunities in different areas• Expand your network
What can be done?
Government• Support female business angel networks• Support initiatives that focus on acces to capital for
women SMEs• Increase visibility of rolemodels• Don’t forget the men
Interested to talk about this topic?
Contact me at:[email protected]+31 - 6 532 88 506www.veracommunity.nlTwitter: @veracommunityFacebook: VERA CommunityLink to publication: “De economische kracht van de ondernemende vrouw”:http://www.smo.nl/item/221/nieuwe-publicatie-de-economische-kracht-van-de-ondernemende-vrouw/