According to an IADB report, only 1% of female entrepreneurs in Latin America and the Caribbean have access to venture capital funds, angel investors, or both, the three sources of finance that might help a company’s idea become a reality. 7% of males, in comparison, have access to this kind of money.
But by addressing the needs of a small but important portion of Caribbean women entrepreneurs who have been working the entire time, we can likewise speed up growth. This comprises the roughly 1.3 million small- and medium-sized entrepreneurs and managers who are women throughout Latin America and the Caribbean.
They control one-third of local small enterprises; therefore, their success is crucial to everyone’s future. Even before the epidemic, these enterprises faced difficulties. The biggest obstacle has always been a lack of credit brought on by widespread gender prejudice. Despite having a higher likelihood of repaying commercial bank loans than males, studies reveal that Caribbean women entrepreneurs find it difficult to get them. Financing is particularly crucial for Caribbean women entrepreneurs working in technology.
The Need for Supporting Caribbean Women Entrepreneurs
According to the International Finance Corporation, the financing gap for small and midsize businesses with female leadership in Latin America and the Caribbean is at least $93 billion. Men often have access to a wider range of financial sources, but Caribbean women entrepreneurs typically use personal funds or support from friends and family to fund their enterprises. Men may frequently devote themselves full-time to creating the networks necessary to complete their projects, but women must take time away from their enterprises to care for their families and homes. This networking is essential for anybody beginning a business. Women must have mentors who appreciate their company ideas and believe in their success, particularly seasoned entrepreneurs.
A growing number of Caribbean women entrepreneurs are becoming increasingly important in transforming emerging nations into knowledge- and innovation-based economies. New concepts and techniques are used as economic and social solutions in these creative economies. Additionally, women are more likely than males to create social enterprises rather than businesses focused on making a profit.
Aiming For High-Growth Caribbean Women Entrepreneurship
If we wish to reverse this, we must broaden and improve the finance options available to Caribbean women entrepreneurs, encouraging the pursuit of investment capital and smart capital. Building connections with mentors, individual investors, and business networks should be encouraged. Caribbean women entrepreneurs should also have better access to academic settings and overseas experiences that might enhance their personal development, business savvy, and capacity to establish trusting relationships and collaborations.
However, these challenges can be handled by Caribbean women entrepreneurs via persistence and creativity. They are enthusiastic about targeting consumers and growing internationally. They provide precisely the potential for income and employment that island economies greatly need.
With Flamenco Gender Capital (FGC), a Caribbean-based venture capital firm, Caribbean women entrepreneurs can get good access to capital for their enterprises, which is essential to the advancement of economic and social development, inclusive economic growth, and a prosperous future for all.