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Beyond financial inclusion: What drives financial health for women entrepreneurs?

CARE’s new Strive Women report finds digital divide, financial stress and household responsibilities limit business success in emerging markets
 
Atlanta, May 12, 2025 – Women entrepreneurs in emerging markets face considerable barriers that hinder their long-term success. While difficulties accessing small business credit and training are frequently cited challenges by small business owners, CARE’s latest Strive Women report—based on the experiences of nearly 2,500 businesswomen in Pakistan, Peru, and Vietnam—highlights that access to finance during a crisis, digital tools, and support networks are equally crucial factors for woman entrepreneurs’ business growth. The report uncovers how business outcomes for women are deeply tied to four interconnected factors: financial resilience, business management and growth, confidence and control, and quality of life.
 
Strive Women, a four-year program led by CARE and supported by the Mastercard Center for Inclusive Growth, is aimed at strengthening the financial health of women-led small businesses. Women entrepreneurs are vital to economic growth, yet systemic barriers continue to undermine their overall financial health. To better capture the realities that drive or hinder their success, Strive Women has developed a comprehensive Financial Health Framework—grounded in research and designed to reflect the full scope of women business owner’s lived experiences.
 
Using this Framework to inform the research, the analysis reveals key insights: women often rely on personal savings to manage business shocks, limiting the potential for long-term business growth and stability. While 96% feel confident in growing their businesses, their progress is often held back by limited access to finance, digital tools, and strong support networks. The research also highlights the complex role of household dynamics—where spousal support can ease stress and boost resilience, even as caregiving demands continue to restrict the time and energy available for business growth.
 
“Even as a businesswoman, I come home to cooking, cleaning, and caregiving—there’s no pause,” says Rosario Del Pozo, a Peruvian entrepreneur. “For many women I work with, especially those without education or support at home, it’s even harder. The biggest barrier we face isn’t ambition—it’s the huge number of responsibilities.”
 
Key findings
  • Financial Insecurity in Crises: While 80% of entrepreneurs save for their business, only 16% would use business savings to recover from a crisis. Others instead rely on household savings or borrowing, which may limit the ability of the business to recover in the long-term.
  • Limited Access to Credit: 27% of women entrepreneurs lack the financial resources needed to grow. High interest rates (49%), low loan amounts (23%), and short loan terms (14%) create barriers to formal financing, and debt stress remains particularly high in Pakistan, where 94% of borrowers are “very concerned” about repayment.
  • Digital Divides: While 94% of respondents own a smartphone, only 51% use digital tools for their business. Access to digital upskilling remains a challenge, limiting women’s ability to tap into online financial services and expand into new markets.
  • Satisfied but Stressed: While many cite satisfaction with the state of their business, households, and finances, this may come at the cost of high levels of stress. However, when spouses were involved in decision-making, women were 27 percentage points less likely to “always worry” about their business and 23 percentage points less likely to “always worry” about their household.
  • Disconnected from Support Networks: One-third (34%) of women entrepreneurs lack access to networks like peer groups and mentors for business advice.
These findings uncover reality: women entrepreneurs want to grow their businesses– but they need systems that work with their realities, not against them.
 
“This research highlights how financial health is about much more than income or confidence—it’s about navigating complex systems, balancing roles, and accessing the right mix of resources,” said Rathi Mani-Kandt, Director of Women’s Entrepreneurship at CARE. “When we listen to women and design systems that match their realities, we don’t just improve business outcomes—we build more resilient economies.”
 
“These insights reinforce that unlocking women’s economic potential requires programs and systems to see and support the whole person,” said Payal Dalal, executive vice president for global programs at the Mastercard Center for Inclusive Growth. “Through Strive Women, we are investing in the tools, networks, and insights that can drive lasting impact for women entrepreneurs around the world.”
 
What needs to change?
 
The Strive Women research findings call for bold, practical, women-centered interventions. To ensure women entrepreneurs can thrive, CARE is calling for:
  • Offering long-term, higher-interest savings accounts with features like automated deposits to help women build emergency funds.
  • Financial products tailored to women’s business needs, with larger loan sizes, flexible repayment terms and alternative credit assessments.
  • Offering tiered, practical digital literacy programs, from mobile banking basics to advanced tools like e-commerce and AI.
  • Creating peer groups and family-inclusive workshops to build networks, mentorship, and shared responsibility at home.
  • Innovations that support redistributive care responsibilities, through mechanisms such as subsidized childcare and financial tools designed with caregiving realities in mind.
 
Looking ahead
 
As Strive Women programming continues, further research will explore how tailored financial and business support can build long-term resilience, how digital tools support business growth, and how strong networks—both personal and professional—can enhance women’s financial health and overall well-being.
 
 
Notes to editors:
 
 
For media inquiries, please email usa.media@care.org
 
About CARE: Founded in 1945 with the creation of the CARE Package®, CARE is a leading humanitarian organization fighting global poverty. CARE places special focus on working alongside women and girls. Equipped with the proper resources women and girls have the power to lift whole families and entire communities out of poverty. In 2023, CARE worked in 109 countries, reaching 167 million people through more than 1,600 projects.
 
About the Mastercard Center for Inclusive Growth  
 
The Mastercard Center for Inclusive Growth advances equitable and sustainable economic growth and financial inclusion around the world. The Center leverages the company’s core assets and competencies, including data insights, expertise, and technology, while administering the philanthropic Mastercard Impact Fund, to produce independent research, scale global programs, and empower a community of thinkers, leaders, and doers on the front lines of inclusive growth. For more information and to receive its latest insights, follow the Center on LinkedIn, Instagram and subscribe to its newsletter.
 
 
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Mastercard and Mastercard Foundation are Members of the SME Finance Forum
 

Handbook - Supply Chain Finance Knowledge Guide

Supply Chain Financing (SCF) is becoming an increasingly common vertical within the banking industry. The global credit crisis of 2008 forced trade finance seekers to look for alternatives as liquidity in supply chains became a major concern for businesses. This spurred an increased demand for supply chain financing as businesses worked to maintain liquidity and their competitive edge. This report describes the general ecosystem for SCF, summarizes the best practices that financial institutions should adopt as they seek to enter the supply chain financing market and takes and attempt at quantifying the potential SCF market in Pakistan.

 

Bank of Punjab, a leading SME focused bank from Pakistan, joins the SME Finance Forum  

Washington D.C, May 14, 2024 – Bank of Punjab, a leading SME focused bank from Pakistan has joined the SME Finance Forum as the global membership network’s latest member. The 300+ members/affiliates of the Forum are SME financing experts operating in 190 countries who share the common goal of expanding access to finance to small businesses worldwide through knowledge exchange and innovation.

 

“SME Finance Forum proudly welcomes leading SME focused bank from Pakistan to our network. With $7.9 billion in assets and 815 branches across the country, BOP stands as a key player in SME banking, earning the accolade of ‘Best SME Bank in Pakistan’ at the 2024 Global SME Banking Innovation Awards, AsiaMoney 2023 Awards, and Pakistan Banking Awards 2022 & 2023. It is with great pleasure I welcome BOP to SME Finance Forum which is in line with our strategy of onboarding leading SME banks in emerging markets for impact. As I learnt during my recent discussions, BOP is at the forefront of implementing innovative practices in data usage, sustainability, digital and Agriculture solutions and there are impactful aspects BOP brings to the foray. We also look forward to migrating global best practices to BOP engaging our network of over 300+ members/affiliates for the bank to scale quickly and effectively in a market where ~ 7% of SMEs can finance their business needs through formal banking channels. BOP leadership team has been highly engaged and this promises to be an exciting collaboration”, said Qamar Saleem, Head of SME Finance Forum. 

 

The Bank of Punjab (BOP) was established in 1989 and was declared as a scheduled bank by State Bank of Pakistan (SBP) on 19 SEP 1994. The Bank of Punjab has a growing network of 780 branches including 140 Islamic, 16 sub branches and 40 Islamic banking windows. Apart from state-of-the-Art DigiBOP Internet and mobile banking facilities, it has a host of branchless banking agents across the county. The bank also has a network of 706 ATMs. Being a progressive commercial bank and in line with modem banking needs, BOP offers a wide range of products and services to its diverse client base. The Bank has established a strong footprint in the areas of Corporate & Investment Banking, Commercial, SME, Agriculture and Consumer Banking. Moreover, it is working closely with the Government of Pakistan. Government of Punjab and SBP to promote Financial Inclusion. As Digital banking has become the cornerstone of a delightful customer experience, BOP is coming up with innovative digital products and is serving customers through Alternate delivery channels. 

 

“As we embark on this journey with the SME Finance Forum, we're excited to enhance our commitment to empowering small and medium enterprises. Together, we'll leverage innovative financial solutions to create impactful opportunities for entrepreneurs and drive sustainable growth and foster economic development,” said Mr. Zafar Masud, President & CEO of Bank of Punjab, Pakistan. 

 

 
SME Finance Forum: Innovation & Partnership for MSMEs Growth  
The SME Finance Forum, backed by G20 and IFC/World Bank, is the leading global network of 300+ members/affiliates operating in 190 countries. Network comprises of SME focused institutions providing and enabling finance and services- banks, non-banks financial institutions, fintech, payment platforms, development institutions, credit guarantee companies, insurers, investment funds, supply chain linked players, banking and SME associations, policy advocates, regulators, academia, consulting houses, knowledge aggregators.

Our member, affiliates, and associated stakeholders benefit from learning/replicating best practices from across the world, innovating new products for business growth, acquiring risk mitigation tools, establishing partnerships, attracting investors, and being recognized amongst a peer group of global innovators. Our products consist of “members only” solutions (like innovation hubs, solutions clinics, peer group networks, study tours, specialized tools and trainings, member portal repository, partnered initiatives) as well as public good services (200+ publications library, 500+ videos, webinars, newsletters, trainings, annual awards, annual event etc.)

Discover the SME Finance Forum members/affiliates:  
https://www.smefinanceforum.org/members/member-list  
https://smefinanceforum.org/about/partners

 

About Bank of Punjab 
The Bank of Punjab (BOP) was established in 1989 and was declared as a scheduled bank by State Bank of Pakistan (SBP) on 19 SEP 1994. The Bank of Punjab has a growing network of 780 branches including 140 Islamic, 16 sub branches and 40 Islamic banking windows. Apart from state-of-the-Art DigiBOP Internet and mobile banking facilities, it has a host of branchless banking agents across the county. The bank also has a network of 706 ATMs. Being a progressive commercial bank and in line with modem banking needs, BOP offers a wide range of products and services to its diverse client base. The Bank has established a strong footprint in the areas of Corporate & Investment Banking, Commercial, SME, Agriculture and Consumer Banking. Moreover, it is working closely with the Government of Pakistan. Government of Punjab and SBP to promote Financial Inclusion. As Digital banking has become the cornerstone of a delightful customer experience, BOP is coming up with innovative digital products and is serving customers through Alternate delivery channels.
Website: https://www.bop.com.pk/BoP

 

Karandaaz unveils GreenFin Innovations, offering concessional finance for enabling green economy & combatting climate change

Karandaaz Pakistan, a development finance platform at the forefront of promoting financial inclusion and driving digital transformation across the country, announced the launch of GreenFin Innovations (GFI), a groundbreaking initiative dedicated to scaling innovative and sustainable solutions aimed at promoting a green economy and addressing the critical challenges of climate change in Pakistan.
 
GreenFin Innovations offers a unique blend of support, including concessional financing of up to PKR 50 million and tailored business development support, all while fostering connections within the climate change network. The initiative is committed to driving transformative change and local capacity building, to address urgent environmental and climate change challenges through innovative solutions.
 
Businesses registered and operating in Pakistan with a valid National Tax Number (NTN) are eligible for GreenFin Innovations support. The proposed solutions must actively address the climate change issues in adaptation, mitigation, or cross-cutting thematic areas.
 
Karandaaz Chairperson Salim Raza, while elaborating on the initiative, said,
 
"GreenFin Innovations is aimed at catalysing sustainable solutions to combat climate change in Pakistan. It provides blended finance in the form of concessional loans, with funding sizes varying based on the nature and scale of each project. GFI will empower businesses to play a pivotal role in promoting a green economy and mitigating the impacts of climate change."
 
In the past, Karandaaz has successfully provided growth capital to innovative solutions on plastic waste management, efficient water management, and air quality under their Green Challenge Fund (GCF). With the launch of GreenFin Innovations, Karandaaz aims to amplify the impact, recognising the urgency of building local capacity for innovation and scaling existing technologies to effectively tackle climate change challenges.
 
Shumaila Rifaqat, Head of Innovation and MEL at Karandaaz said,
 
"Pakistan is facing the dire effects of climate change. It is imperative that local capacity to address environmental and climate change challenges is developed and, in that endeavour, private sector has a huge role to play. To this end, GFI will provide the essential support and risk capital to catalyse innovation in addressing the climate challenge."
 
Karandaaz invites eligible businesses and entrepreneurs to join hands with GreenFin Innovations in creating a sustainable future and making a significant contribution to the fight against climate change. More information can be gathered from the official site: https://gfi.karandaaz.com.pk/

 

Pakistan

Submitted by tfang@ifc.org on
Country
Current Volume
3806155467
Finance gap
57761901211
Micro Women Gap
557491399
Micro Men Gap
57204409812
MSME Women Gap
557491399
MSME Men Gap
57204409812
Micro Gap ( Men and Women )
57761901211

Fauree

Fauree is a leading provider of supply chain finance and working capital solutions, leveraging technology to boost efficiency and cut costs. Fauree's Supply Chain Finance, where we empower SMEs through transparent, efficient, and sustainable solutions. Our cutting-edge platform supports local suppliers, fortifies supply chains, and fosters economic diversification and workforce development. By offering superior financing options and enhancing cash flow, we enable businesses to flourish and significantly contribute to broader economic and social ICV policy objectives. Our cloud-based platform provides real-time reporting and customizable workflows, optimizing financial operations and working capital management. With an extensive suite of services—including supply chain financing, receivable financing, distributor finance, dynamic discounting, and Sharia-compliant products—Fauree meets diverse industry needs on a global scale.
Country / Region
Member Since
Organization Type
Contact Person Name
Azhar tasadduq
Contact Person Title
CO Founder & CEO
Contact Person Email
azhar@jawainvestment.com

Pak Oman Investment

Pak Oman Investment Company Limited (POIC) is a Development Financial Institution (DFI) dedicated to providing corporate banking, SME Finance and investment banking services. The company's core objective is to foster economic growth in both Pakistan and Oman by facilitating industrial development and promoting agro-based industries on a commercial basis. Operating from its headquarters in Karachi, POIC extend its reach through a branch office in Lahore and representative offices in Islamabad, Gwadar, and Muscat. POIC's stable ratings are bolstered by its joint venture shareholding structure, with equal ownership by the Government of Pakistan (GoP) and the Sultanate of Oman.

Country / Region
Member Since
Contact Person Name
Nadia lshtiaq
Contact Person Title
Head of Investment Banking and Private Equity
Contact Person Email
nadia.ishtiaq@pakoman.com
Operation countries

Pakistan Financial Inclusion: Karandaaz Survey

Newly released financial survey from our member Karandazz!
The report delves deep into financial service access and demand, with a special focus on digital financial services.

To support financial inclusion in Pakistan, it is important to have clear definitions, metrics, and estimates for planning and intervention designs.

Karandaaz notes that while there are several surveys that measure financial inclusion based on a range of indicators, there remains some level of ambiguity with regard to the exact definition of ‘financial inclusion’ and readings among different institutions.

Accordingly, utilising a harmonised definition is essential for consistent monitoring, stock-taking, and measurement.

Explore the report to gain practical insights into the future of financial services. It covers a wide range of topics, from cutting-edge digital solutions to more traditional methods of access.
Explore the complete report and share your thoughts with Karandaaz at reserach@karandaaz.com.pk

 

 

Karandaaz Financial Inclusion Survey Results

The Karandaaz Financial Inclusion Survey (K-FIS) responds to the need identified by multiple stakeholders for timely demand-side data and
practical insights into the state of financial inclusion in Pakistan, including traditional banking, mobile money, and the potential for their
expanded use among the poor. The aim is to:

  • Track access to and demand for financial services, with special emphasis on digital financial services (DFS);
  •  Measure adoption and use of financial services among key underserved groups (females, youth, poor, rural, and the financially excluded);
  • Identify drivers and barriers to adoption of financial services and DFS; and
  • Produce actionable, forward-looking insights based on rigorous data to support product and service development and delivery.