Women-led enterprises play a vital role in supporting climate-resilient livelihoods and local economies in Nepal, yet they continue to face significant challenges in accessing both climate and commercial finance. To address these gaps, Forest Action Nepal and the South Asia Institute of Advanced Studies, with support from the Climate Policy Initiative, convened a multi-stakeholder dialogue in Kathmandu that brought together financial institutions, women entrepreneurs, researchers and development partners to examine barriers and opportunities for financing women-led enterprises.
Discussions at the event highlighted a disconnect between strong policy commitments on gender inclusion and climate action and the realities faced by women entrepreneurs. Speakers noted that women-led businesses are often treated as welfare recipients rather than as viable economic actors with growth and investment potential, limiting the effectiveness of existing financial approaches.
Participants emphasised that access to finance alone is not sufficient to unlock the full potential of women-led enterprises. A more integrated ecosystem is needed, combining finance with enterprise development support, market access, technology adoption and climate risk management. Financial institutions acknowledged that women borrowers often show strong repayment behaviour, but informality, limited collateral and exposure to climate risks constrain lending at scale. Microfinance institutions were recognised as an important entry point, though clearer pathways to commercial finance remain necessary.
The event also marked the launch of a new report that provides ground-level insights into the barriers limiting climate finance for women-led enterprises, particularly in climate-sensitive sectors such as agriculture and forestry. Drawing on data from 200 enterprises across 40 districts, along with consultations with policymakers and financial institutions, the report finds that most women-led businesses depend on personal savings, lack assets for collateral and operate informally, restricting access to formal finance.
The study identifies climate risks, social norms and low financial literacy as compounding challenges, especially for micro- and home-based enterprises. To address these constraints, it outlines practical pathways including blended finance and risk-sharing mechanisms, aggregation and value-chain financing models, improved enterprise financial readiness, and better alignment of gender, climate and financial sector policies.
Overall, the findings stress that supporting women-led enterprises is not merely a social objective but a strategic investment in Nepal’s inclusive and climate-resilient economic growth. The report calls for a shift toward coordinated, scalable frameworks that recognise women entrepreneurs as credible and investable actors central to achieving long-term climate and development outcomes.
