Unleashing the potential of women entrepreneurs in Asia Pacific

Despite this promise, women-led small and medium-sized businesses (SMBs) still represent a mere 5.7 per cent of startups in the Asia Pacific, a statistic that has remained stagnant for over five years.² This underrepresentation highlights the systemic barriers that continue to challenge female entrepreneurs, including limited access to funding and networks.

Persistent challenges to female entrepreneurship

One of the most significant hurdles facing female entrepreneurs is limited access to financial resources. Women often lack the collateral needed to secure loans, as they typically own fewer assets compared to their male counterparts. Additionally, discriminatory lending practices persist within financial institutions, where biases against women-owned businesses can hinder access to necessary capital. For example, women frequently encounter difficulties in meeting know-your-customer (KYC) requirements, which can be more stringent for them than for men.³

Moreover, many women entrepreneurs lack financial literacy, which restricts their understanding of available financial tools and services. A lack of knowledge can prevent them from effectively navigating the financial landscape and accessing the resources they need to grow their businesses.

Cultural influences also play a critical role in perpetuating gender inequality and limiting women's access to resources. In many societies across the Asia Pacific, traditional gender roles dictate that women bear a disproportionate burden of caregiving responsibilities. Studies show that women perform four times more unpaid care work than men.⁴ Such imbalances not only restrict women’s ability to engage fully in entrepreneurial activities but also limit their opportunities for professional development and networking.

Systemic issues further complicate the entrepreneurial landscape for women. Discriminatory regulations and practices can limit women's economic opportunities in various sectors. For instance, out of 25 countries in the region, 17 do not have laws prohibiting gender discrimination in financial services, allowing lenders to discriminate against women seeking to start businesses.⁵

Empowering more women to become entrepreneurs

There are three ways to overcome the challenges to female entrepreneurship and unlock its vast economic potential.

To empower female entrepreneurs, improving access to finance is paramount. Developing financial products tailored specifically to women's needs can help bridge the gap in funding access. An example is Early Dawn Microfinance Company Limited (DAWN) in Myanmar, which offers innovative digital lending services designed to overcome traditional barriers faced by female entrepreneurs, such as mobility and identification issues.⁶ Using DAWN's digital solutions, women entrepreneurs can experience streamlined lending processes. They are able to reduce the time spent on paperwork, for matters such as loans and repayments, from four hours daily to just 20 minutes.⁷ In addition, promoting alternative financing options like crowdfunding and peer-to-peer lending platforms can also provide much-needed capital without the constraints imposed by traditional lending institutions. Several local crowdfunding platforms have emerged across the region to support women-led startups, enabling them to secure funding while bypassing conventional barriers.⁸

In addition to creating tailored services, nurturing a supportive business environment is also essential for fostering female entrepreneurship. Implementing policies that support women-owned businesses can lead to significant improvements in their success rates. Intergovernmental bodies, like the Economic and Social Commission for Asia and the Pacific (ESCAP), are driving change across the region. The ESCAP Catalysing Women’s Entrepreneurship Programme (CWE) has successfully collaborated with countries like Vietnam to amend local SMB laws, making talent development and financial services more accessible to women-owned businesses.⁹ Furthermore, promoting networking opportunities and professional associations for female entrepreneurs can facilitate collaboration and knowledge sharing among women in business.

Female entrepreneurs would also greatly benefit from upskilling. Hence, enhancing education and skills training is another critical component. Offering technical and vocational training in high-growth sectors can equip women with the skills necessary for success, particularly in rural areas where opportunities may be limited. Initiatives like Visa's Accelerate Programme have provided invaluable support for aspiring businesswomen by offering training and resources tailored to their needs.¹⁰

Female entrepreneurs have immense potential to drive economic growth in the Asia Pacific, but they need more support to thrive. Governments and the financial ecosystem must leverage technology and regulations to create a supportive business environment. Additionally, women-led SMBs should seek alternative support methods like crowdfunding and mentorship programmes to improve their success in a competitive economy. Addressing these challenges and fostering inclusivity will unlock the full potential of female entrepreneurs in the region.

¹ Visa, Enabling Small and Medium-Sized Businesses (SMBs) with Access to Funding and Financial Education, 2024.

² The Business Times, JPMorgan says ‘shockingly low’ number of startups in Asia led by women, 2023.

³ Asian Development Bank, Innovative financial products and services for women in Asia  and the Pacific, 2020.

⁴ UN Women, Highlights and recommendations for practitioners: Asia-Pacific Care Economy Forum, 2023.

⁵ ESCAP, Enabling women’s entrepreneurship in Asia and the Pacific through smart legislative and policy reforms, 2022.

⁶ Asian Development Bank, Innovative financial products and services for women in Asia and the Pacific, 2020.

⁷ Asian Development Bank, Innovative financial products and services for women in Asia and the Pacific, 2020.

⁸ Asian Development Bank, Innovative financial products and services for women in Asia  and the Pacific, 2020.

⁹ ESCAP, Enabling women’s entrepreneurship in Asia and the Pacific through smart legislative and policy reforms, 2022.

¹⁰ Visa, The Asia Foundation, and AT&T, From hard times to hope, 2022.