This report, prepared by the OECD and the Global Women’s Entrepreneurship Policy Network, examines the barriers women entrepreneurs face in accessing finance for creating and growing businesses, and explores the policy reforms governments can introduce to address them. The report provides international data on the rate and nature of entrepreneurship by women compared with men, along with insights into the types and levels of finance accessed by women entrepreneurs. It also offers an overview of barriers to women’s entrepreneurship financing and potential policy solutions. Additionally, the report includes 29 country-specific policy insight notes from selected OECD and non-OECD countries, prepared by academic experts, which explore thematic issues such as cultural attitudes toward women entrepreneurs, fintech innovations, targeted interventions, financial literacy, angel investment, microfinance, and growth-oriented financing.
Despite recent increases in the number of women entrepreneurs, significant gaps remain. Between 2019 and 2023, women in OECD countries were about 75 percent as likely as men to start or manage new businesses, a slight improvement over 2014–2018 levels. Women-led businesses tend to create fewer jobs, exhibit lower levels of innovation, and have less international reach than those led by men. These differences vary across countries due to factors such as cultural norms, labor market conditions, the ease of starting a business, and the size of the informal economy. The gap in entrepreneurship rates has a tangible economic cost; for instance, estimates suggest that the United Kingdom could have added approximately 12 percent of GDP in 2017 if women started and scaled businesses at the same rate as men.
Access to finance remains a key barrier for women entrepreneurs. Data consistently show that women are about half as likely as men to borrow funds from banks, and women-led businesses receive only around 2 percent of total venture capital investment. Even when women secure funding, they often face higher interest rates and more stringent collateral requirements. These challenges contribute to a reluctance among women entrepreneurs to seek financing, further reinforcing the financing gap.
The financing gap arises from both supply- and demand-side issues in financial markets, as well as the characteristics of women-led businesses. Supply-side factors include unconscious bias in lending and investment decisions, under-representation of women in decision-making roles, and a lack of data to demonstrate the business case for investing in women entrepreneurs. Demand-side obstacles include lower levels of entrepreneurship experience, participation in sectors with lower profit margins, and hesitation to pursue external finance. These factors can reduce access to funding, make financing less attractive to suppliers, and negatively affect how business projects are pitched.
Governments have made progress in addressing these gaps, but there remain opportunities to expand and diversify policy tools. Economic rationales for intervention include correcting market and institutional failures, promoting the positive spillovers of women’s entrepreneurship such as job creation and innovation, and addressing discrimination and bias in financing. Policymakers can draw inspiration from the global examples highlighted in the report to strengthen measures that improve access to finance for women entrepreneurs.
A range of financing instruments is critical to meeting women entrepreneurs’ diverse needs. Traditional tools such as loans, loan guarantees, and microcredit are increasingly complemented by fintech solutions, venture capital, and angel investment for high-potential startups. Governments are encouraged to support a mix of instruments to address the multifaceted financing barriers and to respond to the diverse contexts and types of women entrepreneurs.
Monitoring gaps and barriers in women’s entrepreneurship finance is essential to develop effective policies, particularly in emerging areas such as fintech. Data on financing supply and demand for women-led startups remain limited, prompting initiatives like the Women Entrepreneurs Finance Code, a global effort launched in 2023 to collect gender-disaggregated data through public authorities and private financial institutions.
Targeted financial support should also be complemented by non-financial measures. Policies often fall short because they do not consider the specific needs of women-led startups or the ways women access support services. Non-financial interventions, including financial literacy training, leadership programs, and advisory services, can enhance the effectiveness of financial instruments, particularly for growth-oriented enterprises.
Structural inequalities also hinder women’s access to finance. Gender imbalances in unpaid work, unequal property rights, disparities in entrepreneurship education, and limited access to networks restrict opportunities for women entrepreneurs. Addressing unconscious bias in entrepreneurial ecosystems and promoting role models through education and awareness campaigns can help overcome these barriers and encourage women to pursue business growth.
Collaboration with private sector actors is crucial to bridging the finance gap. Governments can leverage private capital through co-investment models, venture capital funds, and angel networks focused on women entrepreneurs. Increasing the representation of women in investment decision-making roles, providing training for female investors, and fostering networks for women to invest in each other are key strategies to enhance access to finance and strengthen women-led business ecosystems globally.
