In the dynamic world of entrepreneurship, women are emerging as formidable forces, driving innovation, fostering community development, and contributing significantly to economic growth. Yet, despite their remarkable potential, women entrepreneurs often face systemic barriers, particularly in accessing capital. This disparity not only hinders individual aspirations but also represents a missed opportunity for broader economic advancement.
Inclusive investing – allocating financial resources to women-led ventures – is gaining traction as a transformative approach to bridge this gap. By recognizing and supporting the unique strengths of women entrepreneurs, inclusive investing not only promotes gender equity but also unlocks new avenues for sustainable economic development.
Globally, women-owned businesses constitute a significant portion of the entrepreneurial ecosystem. In Africa, for instance, one in four women is an entrepreneur, showcasing resilience and innovation across various sectors . Despite this, women entrepreneurs often encounter challenges such as limited access to funding, lack of mentorship opportunities, and societal biases that impede their growth.
In Nigeria, the narrative is no different. Women entrepreneurs like Ife Durosinmi-Etti, founder of Herconomy, has navigated these challenges by creating platforms that empower other women through financial literacy and access to funding . Similarly, Temie Giwa-Tubosun’s LifeBank has revolutionized healthcare logistics, demonstrating the impact of women-led innovation.
Challenges in Accessing Capital
A significant hurdle for women entrepreneurs is the persistent gender gap in accessing capital. Studies show that women-led startups receive a disproportionately small share of venture capital funding. For instance, in the United Kingdom, female-founded teams received only 1.8% of the £8 billion equity investment in 2024, while all-male teams secured 86% . This disparity is often attributed to unconscious biases and a lack of representation in investment decision-making roles.
Moreover, women entrepreneurs frequently face skepticism regarding their business acumen, with investors questioning their commitment and capability. This bias not only undermine their confidence but also restricts their access to essential resources needed for business growth.
Emergence of Inclusive Investing
Inclusive investing is reshaping the investment landscape by intentionally directing capital towards women-led ventures. This approach recognises the unique perspectives and leadership styles women bring to business, which often translate into resilient and socially responsible enterprises.
In Nigeria, initiatives like the Digital Women Entrepreneurs Marketplace Enablement Initiative have created comprehensive support systems aimed at empowering women entrepreneurs through improved market access, financial tools, and digital enablement. These programmes not only bolster individual businesses but also contribute to broader economic development.
Success Stories: Women Leading the Way
The impact of inclusive investing is evident in the success stories of women entrepreneurs who have overcome barriers to build thriving businesses. In the tech industry, women-led startups are gaining traction, thanks to an increasing number of funding programmes aimed at female founders. These entrepreneurs are not only breaking into traditionally male-dominated sectors but also introducing innovative solutions that address societal challenges.
In Nigeria, women entrepreneurs are making significant strides in various industries. For example, in the agriculture sector, women-led cooperatives are enhancing food security and creating employment opportunities in rural communities. These ventures demonstrate the transformative potential of women entrepreneurs when provided with the necessary resources and support.
Role of Policy and Community Support
Creating an enabling environment for women entrepreneurs demands concerted efforts from policymakers, financial institutions, and communities. Policies that foster and promotes gender equality, provide access to affordable childcare, and offer tax incentives for women-led businesses can alleviate some of the systemic barriers women face.
Community support is equally vital. Mentorship programmes, networking events, and educational workshops can equip women with the knowledge and confidence to navigate the entrepreneurial landscape. Organisations like The Startup Ladies offer a range of educational programmes aimed at helping women enhance their entrepreneurial skills, including workshops covering business fundamentals, strategic planning, and scaling techniques.
The rise of women-led ventures and inclusive investing marks a pivotal moment in the journey towards gender equality in entrepreneurship. By recognizing and addressing the unique challenges women face, society can unlock a wealth of untapped potential. Inclusive investing is not merely a trend; it is a strategic approach that fosters innovation, drives economic growth, and promotes social equity.
As we look to the future, it is imperative to continue supporting and investing in women entrepreneurs. By doing so, we not only empower individuals but also build resilient economies and inclusive societies. The success of women-led ventures is a testament to what can be achieved when opportunity meets determination.
Contributed by Agolo Eugene Uzorka, Human Resource Consultant and Content Writer.
