It’s time to invest in women, who hold up half the sky

A single mother walks into a bank hoping to get a loan for the small business she wants to start as a caregiver. Her business will add value to her community, but she doesn’t have enough collateral to secure the loan. The projected returns in her business plan also don’t meet the bank’s requirements. She walks out without the financing she needs. This would-be entrepreneur’s story is far from unique. The challenge of securing startup—and even scale-up—capital is the reality for many women across the United States and, even more so, in other parts of the world. Despite progress toward gender equity in areas such as health outcomes, employment, and education, the World Bank estimated in 2017 that the global finance gap for women entrepreneurs was $1.7 trillion annually. Nearly a decade later, this funding gap remains. But why is this the case for a population that could meaningfully contribute to stronger local economies? A SYSTEM NOT DESIGNED FOR WOMEN The funding gap is by no means a measure of women’s entrepreneurial potential. Rather, it often shines light on the structural barriers they face when launching and growing a business. These can include impediments to securing the ki…