Diverse Paths: Finance for Women’s Nano and Micro Enterprises

Women-led nano and micro enterprises (WNMEs) are essential to livelihoods and local economies but face persistent barriers including limited start-up capital, restricted credit access, and a widening digital divide. CGAP research indicates that these WNMEs face persistent barriers including limited start-up capital, restricted access to formal credit, reliance on under-resourced informal networks, and a widening digital divide. These challenges are compounded by gender norms, limited asset ownership, and a lack of tailored financial and nonfinancial support.

This report introduces a nuanced segmentation framework based on eight dimensions—size, mindset, ability, household role, business sophistication, network access, sector, and location revealing that WNMEs are not a homogenous group. Nano enterprises, especially those oriented toward livelihoods, are more vulnerable and underserved than their micro or growth-oriented counterparts.

Based on in-depth research in India, Kenya and Uganda, the report recommends a coordinated ecosystem approach —combining financial and nonfinancial support, strengthening semiformal finance, closing the start-up capital gap, and bridging the digital divide.