An Overview of Critical Factors in Gender Entrepreneurship

Abstract

Various studies have shown that one of the most essential factors contributing to success in women micro entrepreneurship is access to capital and financial services. Due to several reasons, women have had less access to these services than men. It is observed that investing in women offers the most effective means to improve health, nutrition, hygiene and educational standards for the families and consequently for the whole of society. Regarding limited-access to financial services, women depend largely on their own limited cash resources or in some cases borrowings from extended family members for investment capital. Smaller amounts of investment capital effectively limit women to a narrow range of low-return activities which require minimum capital outlays, few tools and equipment or inexpensive raw materials. In general, women need access to small loans for working capital, innovative forms of collateral, frequent repayment schedules more appropriate to the cash flows of their enterprises, simpler application procedures and improved access to saving accounts. In turn, all these factors will facilitate the poor women to move at a faster rate in the ladder of economic growth and societal development.