GSMA, the global telecom industry body, has outlined recommendations to enhance female inclusion in funding opportunities in its ‘Funding female inclusive start-ups in low-and middle-income countries (LMICs): Recommendations for investors, donors, and funders’ report.
These recommendations aim to address systemic barriers that hinder women entrepreneurs, particularly in LMICs.
“Globally, women in the workforce face significant hurdles. These include wage discrimination, restrictive social norms, and a disproportionate share of unpaid family responsibilities,” it said.
Although women make up a substantial portion of the labour force, their entrepreneurial ventures often lack access to critical funding. According to reports, only 11 percent of tech start-ups in Africa are led by women, with most concentrated in less-funded sectors like health and education technology.
Read also: Make your voices heard in your industries, women urged
A Disrupt Africa report recently highlighted that 55 percent of African female founders identify access to funding as their biggest obstacle.
According to GSMA, this funding disparity is stark. “Female-led start-ups secure only 65 percent of the funding their male counterparts receive, particularly in later investment stages where gender gaps widen,” it stated.
Access to credit is another major obstacle for women in LMICs. A World Economic Forum report revealed that “80 percent of female entrepreneurs who need credit are unserved or underserved by financial institutions.” High collateral demands and elevated interest rates compound this issue.
To close these gaps, the global body for telcos recommended six actionable strategies:
1. Reevaluating outreach channels
Successful funding initiatives rely on their ability to connect with the right applicants. GSMA noted that outreach strategies must evolve to reach more female entrepreneurs, especially in underserved regions. The report recommended leveraging partnerships with local organisations, including women’s business associations, regional accelerators, and community networks, to build trust and tap into established channels.
“Considerations like geographic focus, language barriers, and cultural nuances are vital for effective outreach,” GSMA said. “For example, using local languages or collaborating with trusted community leaders can make funding opportunities more accessible to female entrepreneurs in remote or marginalised areas.”
2. Highlighting role models
GSMA argued that visibility is important in inspiring female entrepreneurs. “Women entrepreneurs often juggle multiple responsibilities, from running their businesses to managing childcare and homemaking,” GSMA pointed out. “This makes them more selective about where they invest their limited time.”
When women see that others like them have succeeded, it signals that applying for certain funds is not futile. Beyond inspiring applicants, highlighting female entrepreneurs challenges stereotypes about their involvement in industries like agriculture and tech, which are often male-dominated.
“Profiling women-led start-ups also reassures investors who may perceive these ventures as riskier,” GSMA added. “It creates a ripple effect that benefits the broader ecosystem.”
3. Tailoring regional approaches
Funders must consider the entrepreneurial landscape of different regions, which requires them to adopt flexible, context-sensitive strategies.
“Latin America boasts some of the highest rates of female entrepreneurship globally, but high exit rates indicate structural challenges. Meanwhile, Africa’s women entrepreneurs are concentrated in retail, a sector that typically attracts less investment,” GSMA said.
GSMA further recommended that funders analyse regional data to design localised venture-building programs.
“One-size-fits-all funding models are unlikely to succeed,” the body warned. “Tailored strategies that account for regional and cultural differences are essential for meaningful inclusion.”
Read also: World Bank’s $540m fund l’ll empower women, combat GBV – Experts
4. Prioritising female leadership
“Prioritising female-led companies doesn’t just support inclusion, it promotes better business outcomes,” GSMA stated. “These start-ups tend to drive innovation and set examples for others to follow.”
Funders can provide additional support during the application process, such as guidance on business planning or proposal development, to encourage more female applicants.
However, GSMA cautioned against setting rigid quotas. “The goal isn’t just to check a box,” the report emphasised. “It’s to create an ecosystem where gender diversity thrives organically.”
5. Developing gender action plans
While supporting female-led start-ups is crucial, GSMA argued that gender inclusivity should extend to all businesses in a funding portfolio.
“Every company, regardless of its current composition, can benefit from a gender action plan,” GSMA stated. These plans involve setting measurable goals for improving diversity, from hiring practices to leadership representation.
6. Addressing internal biases
Funders must first look inward to lead the charge on inclusivity. “Investors are most likely to fund people who resemble themselves,” GSMA said. “Implicit biases, whether in pitch evaluations or risk assessments, can significantly disadvantage female-led start-ups.”
GSMA recommended internal reviews to identify and mitigate these biases. Training programs on recognising and countering gender stereotypes can help create a more equitable investment process.
“In the long term, addressing these biases can set new standards for the investment community,” GSMA stated. It added that it doesn’t just benefit women, it drives broader economic growth and innovation.
According to the GSMA, empowering female entrepreneurs is not only the right thing to do but also the smart thing to do for the future of business and society.