Women Entrepreneurs: Sparking Economic Growth

The Women Economic Forum, a two-day event dedicated to advancing gender equality and economic empowerment, convened a panel discussion titled: The Importance of Investing in Women's Entrepreneurship: Capitalizing on Talent, Transforming Entrepreneurship. During this session, experts delved into the critical topic of gender disparities in entrepreneurship, advocating for tailored support and strategic investment in women-led ventures. Their proposed actions aim to empower women entrepreneurs and cultivate a more inclusive and economic business environment in Mexico.

According to Citigroup, although women make up one-third of entrepreneurs in Mexico, they frequently encounter obstacles in obtaining financial investments for their ventures. A study conducted by Value for Women in Mexico in 2019 found that 70% of Mexican female entrepreneurs sought funding for their businesses, with amounts ranging from US$6,250 to US$150,000. However, these entrepreneurs face challenges accessing finance due to systemic biases, inadequately tailored financial products, institutional weaknesses, and a lack of incentives for banks to cater to female entrepreneurs. These challenges are underscored by a 2017 study by Morsy and Youssef which found that women often face stricter loan requirements compared to their male counter.

Alejandra Rios, CEO, Ambrosía, shared her journey navigating the hurdles of securing funding as a female entrepreneur and underscored the importance of showcasing successful ventures led by women to motivate upcoming generations. “It is imperative that we showcase the triumphs of women-led ventures to inspire future generations of entrepreneurs. Moreover, concerted efforts are needed to foster an inclusive ecosystem that celebrates diversity, empowering all aspiring business leaders," she said.

Similarly, Patricia Armendáriz, Member of the Mexican Chamber of Deputies, emphasizes the importance of empowering women to seize control of their financial futures by addressing the impact of impostor syndrome. A study highlights that 60% of women delay starting their own businesses due to feelings of self-doubt and inadequacy associated with impostor syndrome. Thus, she underscores the critical need for confidence-building initiatives and personalized support to help women overcome internal barriers and pursue their entrepreneurial aspirations with conviction.

Arturo Elias Ayub, News Director, Telmex, emphasized the importance of strategic investment in women entrepreneurs, noting that investing in women-led ventures can yield significant returns. He asserted that by strategically investing in women entrepreneurs, we not only empower women to negotiate better opportunities but also stimulate economic growth, bolster national incomes, foster job creation, and generate wealth. This concerted effort results in a more inclusive and prosperous economy, benefiting society as a whole.

Research conducted by the Boston Consulting Group (BCG) indicates that achieving gender parity in entrepreneurship could potentially increase the global GDP by 3% to 6%, resulting in a significant boost of US$2.5 trillion to US$5 trillion to the global economy. However, realizing the full potential of women entrepreneurs will necessitate collaborative efforts from various stakeholders, including venture capitalists, non-profit organizations, and corporations.

To capitalize on this potential, Rodrigo Herrera, Founder, Genomma Lab, stresses the importance of adopting a gradual growth strategy in business. He advocates for initiating small-scale operations and reinvesting profits to foster expansion over time, prioritizing sustainability, and strategic resource allocation. This approach enables entrepreneurs, particularly women, to grow organically while maintaining control and resilience amid market fluctuations.

“Starting small and reinvesting profits is not just a strategy; it is a mindset. By prioritizing sustainability and strategic resource allocation, entrepreneurs can build resilient ventures that stand the test of time,” he said. 

Overall, the Forum served as a catalyst for change, driving conversations and initiatives aimed at dismantling barriers and creating equal opportunities for women in the business world.