Access to Finance for Women-Led SMEs in Latin America and the Caribbean: Challenges and Opportunities

The world is full of women present in all industries and areas — creative, strategic, managerial, and communicative women — in short: leaders. Thousands of them have big ideas and the dream of entrepreneurship in Latin America and the Caribbean. However, one of the biggest challenges they face is access to financing. Although they lead high-potential companies and generate impact in their communities, obtaining credit and investments remains difficult. Barriers range from a lack of financial education to the absence of guarantees for loan approval, but there are opportunities to change this landscape.

Micro, small, and medium-sized enterprises (MSMEs) are the economic engine of the world. According to the SME Finance Forum (2023), they represent 40% of GDP in emerging economies and generate two-thirds of all jobs globally. However, access to financing remains a hurdle. According to the same report, 41% of SMEs in developing countries have unmet financing needs, amounting to over $5 trillion in unmet demand. Additionally, almost 30% of SMEs in Latin America and the Caribbean face restrictions in accessing finance. Moreover, data shows that women-led businesses in the region face a $93 billion financing gap — the money they need but cannot obtain — which corresponds to 8% of the global financing gap for women-led SMEs.

A recent survey* conducted among a group of women-led businesses registered with ConnectAmericas for Women (CA for Women) revealed significant data on their access to finance:

• More than half of the women surveyed have never applied for financing because they believe their business is too small or lack guarantees to support it, making self-financing their main source of resources.

• However, among those who reported having applied for financing at least once, a high approval rate was revealed: 75% of those who applied received financing.

• Regarding rejections, the main reasons reported were lack of guarantees, insufficient credit history, and low repayment capacity.

The main obstacles identified by the surveyed women entrepreneurs are:

• Lack of guarantees to be eligible for financial institution loans

• High interest rates, perceived as an obstacle by most of the women surveyed

• Lack of appropriate financing instruments for the size of their business

Furthermore, the survey showed that 90% believe exclusive financing options for women are necessary, and the lack of knowledge about financial tools is a significant barrier. 80% have never received training on access to financing, highlighting the importance of strengthening financial education and personalized advice.

These findings reinforce what the literature has shown: many women entrepreneurs face structural obstacles — such as lack of guarantees, high interest rates, and limited financial education — but also more intangible barriers, like the perception that their businesses do not qualify for financing. This combination perpetuates a cycle where lack of credit restricts their growth and development.

Despite the challenges, there are initiatives helping to change this situation.

• Development banks with gender-focused programs: According to the report "Financing Programs for Women's Financial Inclusion and Access to Finance for Women MSMEs" (IDB 2023), 91% of development banks offer financial products designed for women, such as loans with preferential rates and without traditional guarantees.

• Innovation in fintech: Tech companies are using alternative data to assess women's repayment capacity, eliminating the need for a traditional credit history.

• Support networks: Platforms like ConnectAmericas for Women provide a wide range of learning resources on business finance and financial management, free of charge, virtually and asynchronously. They also promote networking activities to connect women entrepreneurs with business and financial opportunities.

Additionally, there is a great opportunity for financial institutions to address the lack of gender-disaggregated data, as 84% of them consider this gap the most relevant challenge for expanding access to finance and improving women's financial inclusion, as mentioned in the conclusions of the "Financing Programs for Women's Financial Inclusion and Access to Finance for Women MSMEs" (IDB 2023).

However, addressing intangible barriers, such as the self-perception of being ineligible for financing, is also crucial. Opportunities go beyond creating innovative financial products — they involve fostering a growth mindset and building confidence among women entrepreneurs. Financial education is essential, but so is promoting a shift in perspective: embracing a moonshot mindset, where women not only aim for what is possible but also for what is extraordinary. Believing that their businesses can grow, that they deserve to invest in them, and that taking calculated risks is part of the journey is key to driving change. Curiosity, the courage to think big, and the willingness to explore new opportunities are elements that can transform their entrepreneurial paths.

In this scenario, aiming to support the reduction of gender gaps in access to finance, ConnectAmericas for Women will launch the Access to Finance Challenge in 2025 — a free online program of training, technical assistance, and matchmaking for women-led SMEs in the region, to strengthen their financial structure and help them access new economic resources and investments.

The hundreds of stories of successful entrepreneurship in Latin America and the Caribbean reflect how knowledge, opportunities, and networks have allowed many women entrepreneurs to strengthen their businesses and access better financing opportunities.

2025: Financial Transformation for Women Entrepreneurs 

If you want to be part of this transformation, we invite you to:

• Register with ConnectAmericas for Women, where you can access training, resources, and opportunities to grow your business.

• Follow ConnectAmericas for Women on social media and stay up-to-date on the latest trends in digital transformation, value chain access, and inclusive finance.

Access to finance for women entrepreneurs in Latin America and the Caribbean is an issue that cannot be overlooked. We hope that every day new opportunities arise for more women to strengthen their businesses.

Get inspired, join, or share this information with women leaders who can benefit! Access to finance may be the boost they need to grow their venture.

*Survey conducted by ConnectAmericas for Women between December 2024 and January 2025, collecting 381 observations on which these results are based.