Female-led Micro, Small, andMedium-Sized Enterprises (MSMEs), play a vital role as jobcreators, driving female participation in the economy, andboosting inclusive GDP growth. In addition to the directeconomic impact of MSMEs, research shows that female-ledenterprises employ more women, and that increased controlover resources by women leads to improved health andeducation outcomes for children, among other socioeconomicbenefits. Reducing poverty and boosting inclusive growth aretherefore directly linked to the economic participation ofwomen in general and women-led MSMEs. Gender equality, whileessential and desirable on its own merits, also yieldswell-documented economic benefits channeled through femalelabor force participation and, relatedly, through women’sparticipation in entrepreneurship and leadership in MSMEs.Social norms, difficulties in balancing work and family timedemands, and limited access to collateral, among an array ofother multidimensional barriers, result in a low percentageof female-owned MSMEs among all MSMEs and constraints inrealizing their full potential. Women-led enterprises aremore likely to be smaller, informal, and home-based. TheWorld Bank Gender Strategy identifies the multidimensionalconstraints that hold back women’s participation. Globally,female-owned MSMEs are 38 percent or less of all MSMEs, theyare more likely to be smaller, informal, and home-based.They are concentrated in services like health, social work,hairdressing, and beauty treatment. Sectors dominated bywomen entrepreneurs show lower growth in value-added and turnover.
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