Important Facts of the News
- Women were about 75% as likely as men to start or manage a new business during 2019-23 across OECD countries.
- Women were about 70% as likely as men to start new businesses in the 2014-18 period.
- Women-owned businesses often show lower levels of job creation, innovation and international customers.
- Businesses led by women receive about 2% of total venture capital investments.
- Women entrepreneurs are about half as likely as men to borrow funds from banks for business purposes.
- Women entrepreneurs often face higher interest rates and greater collateral demands.
- The report includes 29 country-specific policy insights covering OECD and non-OECD economies.
- Countries examined include Australia, Brazil, China, France, India, Malaysia, Nigeria, Poland, Sweden, Spain, the United Kingdom and the United States.
- The report identifies both supply-side and demand-side causes of financing barriers.
- The OECD’s WE Finance Code aims to collect gender-disaggregated financing data worldwide.
Organisation for Economic Co-operation and Development (OECD)
A new international study conducted by the OECD in collaboration with the Global Women’s Entrepreneurship Policy Network highlights the persistent financial challenges faced by women entrepreneurs across different regions. It examines how women-led enterprises access funding to start and expand their businesses and presents policy pathways that governments can adopt to support more inclusive entrepreneurship ecosystems.
Entrepreneurial Participation Varies by Gender
While recent years have seen an increase in women establishing and managing businesses, the overall gap with men remains significant. Between 2019 and 2023, women across OECD countries were around three-quarters as likely as men to be involved in early-stage or new business activity. This represents a slight improvement compared to the 2014-18 period. However, women-owned or women-led firms often operate at a smaller scale and engage less in innovation-focused and export-oriented activities.
The study notes that differences across countries are shaped by cultural norms, labour market environments, business regulatory conditions and the prevalence of informal economic participation.
Finance Access Remains a Major Hurdle
The report underscores that access to finance remains one of the most pressing barriers. Women entrepreneurs are far less likely to secure funding through bank loans and formal credit channels. When financing is obtained, the conditions are often less favourable, with higher interest rates and more stringent collateral requirements. Additionally, women-owned businesses capture just a small fraction of venture capital flows, estimated at about 2% globally.
On the demand side, many women entrepreneurs may hesitate to seek external finance due to past experiences, expectations of rejection or lower exposure to high-growth business environments. On the supply side, factors such as limited representation of women in investment decision-making roles and unconscious biases in evaluation processes also contribute to the gap.
Policy Directions and Potential Reforms
The report highlights a diverse range of policy initiatives already in place in several countries. Traditional support mechanisms such as microcredit, loans and loan guarantees are being combined with newer approaches including fintech-based financial services, angel investor networks and targeted venture capital schemes.
Governments are encouraged to also address structural factors that influence entrepreneurship outcomes. These include unequal access to property rights, gendered distribution of unpaid household work and gaps in financial literacy and entrepreneurial education. Improving the effectiveness of interventions requires better monitoring, gender-disaggregated data collection and partnerships with private sector financiers.
Strategies for Impactful Change
The report suggests that targeted support should be aligned with the varying needs of different segments of women entrepreneurs. High-growth founders may benefit from equity financing, mentorship and peer networks, while micro-entrepreneurs may require small working capital loans coupled with training. The authors also underline the importance of promoting female participation in investment leadership roles and expanding co-investment models involving both public and private actors.
By addressing structural inequalities, refining financial support instruments and strengthening collaboration between public institutions and private networks, countries can enhance the contribution of women entrepreneurs to innovation, employment and inclusive economic development.`