A survey by the HEIR Women Hub, has disclosed that only 4 percent of female Chief Executive Officers, receive funding from financial institutions compared to 95 percent of male CEOs.
The survey, funded by the African Women Development Fund under the Economic Justice theme, sheds light on the gendered disparities hindering women’s access to business loans and investments.
The survey’s findings provided compelling evidence for the need to reevaluate the approach of financial institutions towards investments in female-led enterprises.
The survey identified some factors responsible for the gap, which it listed as: “Social norms, cultural expectations, and biases contribute to limited access to investments for women.
“Women-owned businesses face challenges such as risk aversion, collateral requirements, and high-interest rates.
“Despite lower default rates among female business owners, they still encounter barriers in accessing fair and equitable loan approval processes.”
In response to these findings, HEIR Women Hub is launching strategic initiatives to support female entrepreneurs, that will include: “Policy Advocacy: Engaging with financial institutions and policymakers to advocate for gender mainstreaming in investment opportunities and fair loan approval processes.
“Capacity Building: Providing workshops and resources tailored to address the specific needs and challenges faced by female entrepreneurs, including financial literacy and awareness programs.
“Partnerships: Collaborating with stakeholders, including financial institutions, to bridge the gap in access to capital for women-owned businesses.
“Technology Integration: Exploring the role of technology and digital finance solutions in enhancing access to capital for female entrepreneurs while ensuring safety and security online.”
Añuli Aniebo, the Executive Director of HEIR Women Hub, in a statement in Abuja, stressed the urgency of integrating gender considerations into investment practices.
She said, “Our project aims to identify and understand the barriers that hinder women from accessing funds or loans, as well as the perspectives of financial institutions regarding women-led ventures.
“This survey has unearthed crucial factors contributing to the funding gap for women-led businesses, underscoring the necessity for targeted interventions and policy advocacy.
“We envision a future where women-owned businesses thrive, empowered by equitable access to funding and support.
“Through collaborative efforts and targeted interventions, we aim to advance economic inclusion and empowerment for female entrepreneurs in Nigeria.”
HEIR Women Hub called on stakeholders, including the World Bank, Central Bank of Nigeria, African Development Bank, and the Ministry of Finance, to rally behind initiatives aimed at promoting gender equality in business funding and investment.
