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New Report Shows Women-Owned Businesses in Emerging Markets Are Low-Risk, High-Return Investments

A recent report from the International Finance Corporation (IFC) highlights a surprising truth: women-owned small and medium-sized businesses (SMEs) in emerging markets are proving to be lower risk and more consistent with loan repayments. Despite this strong performance, they continue to face a significant funding gap, presenting a clear opportunity for financial institutions to re-evaluate their lending strategies.

3 min read
New Report Shows Women-Owned Businesses in Emerging Markets Are Low-Risk, High-Return Investments

Recent data reveals a clear disconnect between the credit performance of women-owned small and medium-sized enterprises (SMEs) and the amount of funding they actually receive. At the same time, international financial institutions confirm that these businesses represent one of the lowest-risk and most reliable categories for financing. This situation opens the door for banks to rethink their lending strategies for this vital sector. In this context, the Cabinet Information and Decision Support Center (IDSC) reviewed a report from the International Finance Corporation (IFC), part of the World Bank Group. The report looked at the reality of financing women-owned SMEs in emerging markets. It pointed out that actual performance indicators challenge traditional assumptions that classify women as higher risk when granting loans. Instead, the report confirms that these businesses are high-quality banking assets.

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Small and Medium Enterprises World Bank Group Project Financing Loans Women-owned businesses

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