Women entrepreneurs understand the benefits of applying for funding. They apply to various funding sources; however, they can feel conflicted when deciding to finance. This fact was part of the findings from The Graça Machel Financial Inclusion Project Virtual Learning Event held on June 15th. The purpose of the learning event was to share outcomes of the research study conducted by GMT’s Financial Inclusion team titled “Documenting financial inclusion best practices.” It showcases experiences of 60 Women Entrepreneurs in South Africa and Zambia. The report also investigates demand and supply-side issues related to women entrepreneurs access to finance.

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“Women feel disgruntled with government funding and with the financial institutions, mostly due to the reputational damage that these different institutions have suffered because of corruption. So, some women we saw in the study did not even bother to apply for this very reason. There is a general agreement that women entrepreneurs face challenges when accessing funding and particularly for younger entrepreneurs. There was the sentiment that very often, women will self-exclude themselves from the possibility of funding and give up before they even try. We need to have a more aggressive approach when applying for funding. The institutions we seek funds from need to have a more holistic approach when considering women applicants. Look at our prospective businesses and order books rather than looking at our financial history. That might not always be glorious as we would like but look at our prospects rather,” shared Karen Longley, Director of Leading Language (Pty) Ltd and member of the Women Creating Wealth Cohort.

Driven and facilitated by the Financial Inclusion Project Team, the learning event also focused on assessing investor readiness of women entrepreneurs and identifying opportunities to expand access to finance among women entrepreneurs. Additionally, it engaged stakeholders in the conversation on access to finance and explore ways to expand and grow women businesses.

“Trying to access funding for small businesses is really a hassle. It questions our intentions as organisations that have access to funds. It looks like no one is willing to take the risk that comes with supporting small businesses…it seems funding is always directed to the low hanging fruits that are your well-established businesses because they are less risky. But if we are serious about funding women in townships and rural areas, we have to look at other options, including funding intermediaries. It could be in your industry that would have the records that we require, such as financial records that are needed to access funding,” – Participant. 

 

Among the participants were the Women Creating Wealth entrepreneurs’ cohort, financial Institutions such as First National Bank (FNB), Ashburton Investments, Industrial Development Corporation (IDC), Zebu Investment Partners, Three Arrows Impact, Ecosystems Development for Small Enterprise (EDSE), & Innovation Edge, AUDA-NEPAD, Financial Inclusion Project Zambia Team, Graça Machel Trust (GMT) – Women’s Economic and Social Advancement (WESA) and Women Creating Wealth (WCW) team, and GMT staff.

To access the full discussion: https://bit.ly/3x3SWH7. Access Passcode: RY8!EeNy.

Information for this article was provided by Lehlogonolo Michelle Ratlabyana.