By Najada Kumbuli and Sophie Sirtaine
When we picture engines of economic growth and job creation, we tend to think of large multinational companies and global brands. Yet, in emerging and developing economies, it is primarily micro, small, and medium-sized businesses that play this critical role.
Small and medium-sized businesses represent around 90 percent of all businesses worldwide, and account for more than half of global employment. In developing countries, these businesses are critical to economic diversity and poverty reduction, creating jobs that provide not just incomes but also purpose and dignity for people within their local communities.
Yet many small businesses in developing countries remain cash-deprived and underdeveloped – especially those led by women. Too many women are excluded from traditional financial channels, limiting their ability to hire and innovate. The financing gap for women-led businesses globally remains in the trillions of dollars. But even when they can access capital, women face additional hurdles gaining the relevant business and financial training they need to build up their skills and expertise. Without greater participation and leadership of women in the economy, the full potential for growth and employment remains largely untapped, with implications for long-term social and economic development.
These are missed opportunities we cannot ignore. They call for an approach we have seen work: designing tailored solutions that meet entrepreneurs where they are through access to finance, practical skills, mentorship, and technology; progress comes from designing targeted interventions that reflect local realities.
Yet tailoring alone is not enough. What changes the equation is innovation. New data sources that look beyond conventional credit histories, digital distribution channels that reach businesses traditional banking never could, and AI-assisted tools for credit decisions and training are making it possible for financial institutions to serve women-led businesses more effectively and at scale. Harnessing these innovations calls for the public and private sectors to join forces, pooling global expertise on what works with deep local knowledge. That’s why the World Bank Group and Visa Foundation have teamed up.
Through this partnership, focused first on India, South Africa, Nigeria, Colombia, and Mexico, we are supporting local partners, including banks, microfinance institutions, governments, and non-profit organisations, to tailor solutions to the needs of women entrepreneurs. Thousands of micro and small businesses will receive financial education, with many also indirectly benefiting from improved financial policies and regulations, tailored financing products that leverage digital innovations, and enhanced capacity within financial institutions.
At the core of our holistic approach is the understanding that we cannot apply a one-size-fits-all solution. A woman entrepreneur in India faces a different market environment than one in Nigeria, Mexico, Colombia, or South Africa. Broader regulatory reforms need to be combined with tailored products and incentives for financial service providers to better serve women-led businesses and help them scale.
For example, in India, a World Bank Group project is testing one such solution to help solve one of the hardest financing transitions women entrepreneurs face: the moment a woman-led business outgrows self-help group borrowing and microfinance but isn’t yet large or established enough to access mainstream commercial credit on reasonable terms.
The solution aims to unlock longer tenures and more affordable loans for women entrepreneurs. To do so, the World Bank Group works with large development finance institutions and a vast network of non-bank financial companies to test credit-enhanced “gender bonds.” These bonds act as a cheaper route for these lenders to raise long-term funding, helping connect them to investors they couldn’t otherwise reach.
While access to capital may fuel growth, access to skills is just as critical. In Latin America, Visa Foundation partnered with Pro Mujer to launch Emprende Pro Mujer, a digital, on-demand platform for women entrepreneurs at every stage of their business journey. The program provides flexible access to skills and tools they may need to build a stronger business and a more resilient future.
Examples like Emprende Pro Mujer and the World Bank Group’s India pilot show how targeted solutions can strengthen women entrepreneurship. This is why in India, South Africa, Mexico, Colombia, and Nigeria, we are supporting women’s financial inclusion through a wide range of initiatives, each designed for the local context. These include building the capacity of women-led small businesses through training and market access, strengthening the capabilities of financial institutions and regulators to better serve these businesses, and supporting increased access to innovative financing solutions.
Through these country-specific initiatives, we aim to enhance the ecosystems that are critical for the success of women entrepreneurs and small businesses. And strong partnerships are instrumental to this effort, pooling global knowledge and expertise.
By partnering together, the World Bank Group and Visa Foundation aim to help small businesses with what they need most: global expertise, tailored business and digital training, capital, and local know-how. Together, we can meet entrepreneurs where they are and help them scale.
Around the world, small businesses are showing resilience and creativity to seize these opportunities. What they need is an ecosystem that moves with them, and global partners willing to support them. That’s an investment in everyone’s future.
