Closing the Gender Finance Gap: EIB Group's Report Offers Insights on Supporting Women-Owned Businesses in the EU

Strategic Insights -

A new report by the European Investment Bank Group, commissioned with support from the European Union under the InvestEU Advisory Hub, sheds light on the current state of debt financing for women-owned businesses in the European Union. The report, titled "Debt Financing for Gender Equality in the EU 2025 mapping study," identifies 95 products that financial institutions across the EU use to cater to women entrepreneurs. However, despite the potential benefits, women entrepreneurs face significant barriers in accessing finance, including higher interest rates, stricter collateral requirements, and lower funding amounts compared to men.

Key Takeaways:

  • The report identifies 95 products that financial institutions across the EU use to support women-owned businesses, which can be categorized into two types: products tailored specifically for women-owned or women-led businesses and gender-lens products that include women entrepreneurs as a key target group.
  • Despite the availability of these products, significant disparities exist in their distribution across Member States, highlighting untapped potential for financial institutions to expand their reach and impact.
  • Interviews with financial institutions and case studies reveal the importance of intentional design, strategic partnerships, and inclusive communication in successfully supporting women-owned businesses.
  • Key recommendations for financial institutions include collecting and analyzing sex-disaggregated data, using internationally recognized definitions for women-owned and women-led businesses, and tailoring products to local market conditions.
  • The report also emphasizes the importance of combining financial tools with non-financial support, such as mentoring and networking, to maximize the impact of financial products.

Statistics:

  • 95 products are identified as being used by financial institutions across the EU to support women-owned businesses.
  • The products fall into two categories: 55 products tailored specifically for women-owned or women-led businesses and 40 gender-lens products that include women entrepreneurs as a key target group.
  • Women entrepreneurs face significant barriers to accessing finance, including:

+ Higher interest rates: 63.4% of respondents reported experiencing higher interest rates compared to men.

+ Stricter collateral requirements: 55.6% of respondents reported stricter collateral requirements compared to men.

+ Lower funding amounts: 71.4% of respondents reported accessing lower funding amounts compared to men.

Sources:

  • European Investment Bank Group, Debt Financing for Gender Equality in the EU 2025 mapping study
  • European Union, InvestEU Advisory Hub