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Economic growth

Closing the Digital Divide for Women Entrepreneurs

Strategic Insights

— 2 min read

Women are critical drivers of economic growth and poverty reduction in low- and middle-income countries (LMICs), owning nearly half of the businesses in these regions. However, they face systemic barriers, particularly digital exclusion, hindering their business success and slowing down economic progress. Digital exclusion is a $5 trillion economic opportunity that policymakers must address by investing in legal and policy reforms, strengthening digital infrastructure, and ensuring online safety for women entrepreneurs.

Key Takeaways:

  • Women entrepreneurs own nearly half of the businesses in Latin America and the Caribbean (47%), 44% in East Asia and the Pacific, and 30% in Sub-Saharan Africa.
  • Women's ventures contribute significantly to job creation and GDP, but they face significant obstacles, with digital exclusion being one of the most significant.
  • 92% of women entrepreneurs in LMICs surveyed own a personal smartphone, but 45% lack regular internet access due to high data costs and unreliable connectivity.
  • Women in LMICs are 15% less likely than men to use mobile internet, restricting their access to e-commerce, digital payments, and essential business tools.
  • Online harassment exacerbates digital exclusion, with 57% of women entrepreneurs experiencing some form of online harassment, deterring them from fully engaging in digital spaces.
  • Nearly one-fifth of women entrepreneurs in LMICs face costly and complicated business regulations, making it harder for them to formalize and grow their businesses.
  • Legal and regulatory frameworks can help eliminate these barriers, but legislative and policy gaps continue to disadvantage women entrepreneurs around the world.
  • Women entrepreneurs with regular internet access are 2.5 times more likely to use AI tools, and women who sell to male customers are three times more likely to receive digital payments.
  • Policymakers can unlock women's potential by improving legal and regulatory frameworks, addressing online gender-based violence, expanding digital infrastructure and reduce costs, investing in digital skills training, and strengthening public-private partnerships.
  • Investing in equal opportunity for sustainable growth can unlock new opportunities for millions of women entrepreneurs and drive economic benefits.

Statistics:

  • Women entrepreneurs in LMICs are 15% less likely to use mobile internet than men.
  • 57% of women entrepreneurs have experienced some form of online harassment.
  • Nearly one-fifth of women entrepreneurs in LMICs face costly and complicated business regulations.
  • Women entrepreneurs with regular internet access are 2.5 times more likely to use AI tools.
  • Women who sell to male customers are three times more likely to receive digital payments.
  • Closing the gender gap in digital and financial inclusion can lead to substantial GDP growth, potentially boosting global GDP by as much as $5 trillion.
  • $5 trillion is the estimated economic opportunity by closing the digital divide for women entrepreneurs.

Sources:

  • World Economic Forum, "Women drive economic growth in low- and middle-income countries but face systemic barriers, especially digital exclusion."
  • Cherie Blair Foundation for Women, "Empowered or Undermined? Women Entrepreneurs and the Digital Economy."
  • Intuit and the World Bank's Women, Business and the Law project.
  • World Bank, "2024 Women, Business and the Law report."
  • Boston Consulting Group, "2019 analysis"

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