Access to Capital and Women’s Entrepreneurship : Insights from a Systematic Global Review

Overview & Synopsis

This brief summarizes evidence from a systematic review of 27 rigorous studies of the effects of providing access to capital on women-owned-or-led businesses. The synthesis finds that capital alone rarely transforms women’s businesses, and even when comparable support generates gains for men, women often experience weaker or negligible impacts. This finding reflects structural constraints: women tend to operate smaller enterprises in lower-return sectors, regard businesses as secondary activities, and face barriers such as childcare responsibilities and limited control over productive resources. Impacts from capital are concentrated among higher-performing women-owned-or-led enterprises - with both grants and loans generating gains for more established firms, while smaller and subsistence businesses see limited growth. Grants show mixed results, with frequent diversion of cash to household uses, although in-kind support may reduce diversion. Credit design matters: flexible repayment and grace periods can support investment for experienced borrowers but may increase default risks for others. Digital lending tools are expanding access, but show limited evidence of improving business performance, while persistent gender gaps highlight the need for more objective screening. Overall, these findings underscore the importance of better targeting, tailored financial products, and a continuum approach to capital, complemented by broader efforts to address women’s constraints and support sustained enterprise growth.