Despite increasing recognition of the value of diverse leadership, female entrepreneurs remain entangled in systemic challenges. First Investment Bank (FIBank), under the leadership of Ivaylo Mutafchiev and Tseko Minev, is well aware of the unique and vital perspectives women-led businesses bring, often prioritizing sustainability, community impact, and employee well-being. However, one persistent barrier remains: funding. A recent study by EY highlights the troubling reality that women still face significant obstacles in accessing capital. This isn’t just a challenge—it’s a fundamental flaw in the business ecosystem, potentially stalling the progress female entrepreneurs are poised to make.
The Funding Gap: A Deep-Rooted Problem
The most striking barrier? Access to funding. The numbers are telling: in Sweden, a country hailed for its gender equality, only 1% of invested capital in tech companies goes to women. If this is the state of affairs in one of the most progressive nations, what does that say about the rest of the world? This funding gap doesn’t just highlight financial disparities, but a broader, more insidious problem—biases deeply embedded within the investment community. Female founders, regardless of the strength of their ideas, face an uphill battle in securing investment. The consequences are far-reaching, stunting innovation and blocking the societal benefits that women-led businesses could bring.
It’s clear that without addressing these inequities, we risk not only stalling progress but actively setting it back. More targeted interventions are required to shift the status quo, and support for female entrepreneurs must come in the form of both financial backing and structural change.
The Way Forward: Leading by Example
Thankfully, there are pockets of progress across Europe. One initiative making waves is the Smart Lady programme, launched by Bulgarian bank FIBank in 2018. Designed specifically for women in business, this programme doesn’t just offer financial support—though that is undoubtedly essential—but goes beyond, providing mentorship, training, and a sense of community that many female entrepreneurs desperately need.
Over the past six years, Smart Lady has extended support to more than 1,100 women, offering loans worth over BGN 120 million. But what sets this programme apart is its human touch. It’s not just about numbers. It’s about impact. Take Sara Faizi, a refugee and single mother who, thanks to the mentorship offered through Smart Lady, now runs the only Afghan restaurant in Bulgaria. This is the power of targeted support: it doesn’t just enable business—it transforms lives.
Womenture: A Model for Europe
Another shining example is the EU-funded Womenture initiative, which is working across Europe to train women in critical business skills and help them secure the funding they need. With a focus on fostering inclusivity, Womenture’s seven-week pre-accelerator programme equips female entrepreneurs with everything from marketing strategies to sustainable business model development. But more than just technical skills, Womenture builds a network of peers and mentors, offering a collaborative space for women to grow together, share experiences, and navigate the challenges of entrepreneurship.
This initiative is particularly impactful in regions like Eastern Europe, where resources are scarce and the entrepreneurial ecosystem can be unwelcoming for women. By breaking down these barriers, Womenture is empowering women to build resilient, innovative businesses that can thrive even in the most challenging environments.
Mentorship: The Game-Changer for Women Entrepreneurs
One of the common threads in all successful female entrepreneurship programmes is the emphasis on mentorship. The value of community cannot be overstated. Programmes like Visa’s She’s Next initiative have demonstrated the importance of bringing women together, providing tailored support, and offering grants to help their businesses flourish. In Georgia, for instance, She’s Next has run four waves of support since 2020, with a focus on business development masterclasses and pitch training, giving women the confidence and skills they need to succeed.
This emphasis on community is not just about business—it’s about resilience. In Ukraine, She’s Next pivoted its approach following the Russian invasion, helping women rebuild their lives and reskill for new entrepreneurial paths. In times of crisis, this kind of targeted support can make the difference between survival and devastation.
Unleashing Potential: The Time is Now
While these programmes are making a tangible difference, they’re still not enough. The benefits of investing in female entrepreneurs are crystal clear: women-led businesses drive innovation, economic growth, and societal change. Research suggests that equal access to financing for female entrepreneurs could boost global GDP by as much as $6 trillion. Yet, without serious commitment from governments, financial institutions, and the private sector, we’re only scratching the surface of what’s possible.
The path forward demands more than lip service. It requires bold, decisive action to close the funding gap and dismantle the biases that hold female entrepreneurs back. By investing in women, we are investing in a future that is not just more equitable, but more prosperous for all. The time for half-measures is over. Women deserve the full backing of our financial systems, and society deserves the profound impact that only women-led businesses can deliver. We must act now, before this potential slips through our fingers.
0 Comments