Women entrepreneurs own 22% of microenterprises and 32% of SMEs in the world, according to the United Nations. They generate employment, support other women, and their businesses are, in many cases, the main source of family income. However, they do not have the same opportunities as men to access credit. The global gender gap in financing for micro, small and medium-sized enterprises (MSMEs) amounts to $1.7 trillion dollars. In the case of Latin America and the Caribbean, it is $93 billion, one of the highest in the world, according to the Inter-American Development Bank (IDB), although women own almost a quarter of the MSMEs in the region.
In response to this inequality, the BBVA Microfinance Foundation (BBVAMF) has joined the Women Entrepreneurs Finance Code (WE Finance Code) initiative, coordinated by We-Fi, a global alliance housed in the World Bank, which aims to boost financing for women-led or women-owned businesses. The BBVAMF serves more than 1.7 million vulnerable women entrepreneurs in five Latin American countries with financial services and initiatives specifically for them.
“We are thrilled to welcome the BBVA Microfinance Foundation to the WE Finance Code as a Global Signatory”, says Wendy Teleki, Head of the We-Fi Secretariat which coordinates the Code globally during the signing of the commitment. “BBVAMF’s deep commitment to empowering women entrepreneurs and fostering inclusive financial systems, particularly in Latin America, aligns perfectly with our mission at We-Fi. We look forward to seeing their progress in creating innovative financial products for women, especially by leveraging sex-disaggregated data, and in taking the lead on gender-inclusive finance”
For his part, Javier M. Flores, CEO of BBVAMF, recalled the Foundation’s commitment to the empowerment of women entrepreneurs: “We firmly believe that they are true catalysts for development and poverty reduction in their homes, communities and countries. We are proud to be part of this initiative that is so in line with our goal of continuing to promote their financial inclusion.”
The BBVA Microfinance Foundation, a global expert in measuring multidimensional poverty, collects data and analyzes the progress of the more than 3 million entrepreneurs it supports. Data that is disaggregated by gender to understand the specific needs of the women it serves and that it will share with this alliance.
WE Finance Code, launched in late 2023 with endorsements from leaders of six multilateral development banks, is being implemented in 24 countries around the world. The Dominican Republic is the first country in Latin America where it has been launched. The local BBVAMF’s Microfinance Institution, Banco Adopem, was one of the first signatories.
The Foundation’s adhesion to WE Finance Code is a clear example of the commitment and work of the BBVAMF to contribute to promoting the economic autonomy of women in Latin America. Investing in female entrepreneurs to help their businesses progress improves their quality of life, that of their families and society. According to data from the World Economic Forum, prioritizing women’s financial needs could help add $10 trillion to the world economy by 2030.
