Connect with us

Hi, what are you looking for?


BSP says female-owned MSMEs disadvantaged in accessing capital

FINANCIAL institutions need to consider serving more female-owned micro-, small- and medium-sized enterprises (MSMEs), which are disadvantaged in accessing capital relative to male-owned businesses, the Bangko Sentral ng Pilipinas (BSP) said.

In a webinar hosted by the Philippine Institute for Development Studies on Thursday, BSP Deputy Director Mynard Bryan R. Mojica of the Financial Inclusion Office said 58% of women-owned MSMEs cited lack of access to funding as an issue in doing business, against 37% of male-owned MSMEs.

“Many of the micro enterprises are women-owned. An overwhelming 45% of them are women-owned. Many of these MSMEs are newly created and built from scratch,” Mr. Mojica said.

“We need to take advantage of the largely untapped women-owned MSME market by tailor-fitting financial products and services to their needs and preferences,” he said.

In his presentation, Mr. Mojica cited the results of a survey by the Asian Development Bank, which the Philippine central bank collaborated in.

The survey, which consulted 1,000 MSMEs, found that 45% of micro businesses were female-led, against 15% led by males. Most of the female-owned MSMEs are active in the wholesale and retail trade, accommodation and food services, and manufacturing.

According to Mr. Mojica, both men (78%) and women (64%) use their own funds to build up capital for their small businesses.

Of the businesses tapping outside financing, 6% of female-led MSMEs borrowed from microfinance institutions while 5% tapped informal lenders.

“For bank accounts, we find that (banks are) more biased towards men. But microfinance companies and cooperatives… are serving more women,” he said.

Aside from lack of capital, respondents cited high taxes and high cost of doing business as significant barriers to growth.

The survey also found that female-owned MSMEs used fewer financial services than male-owned ones, with female-owned businesses also less likely to use digital financial services, for which the usage rate for male-owned businesses was over 40%.

Some 52% of female entrepreneurs 27% of male business owners still use mainly cash in financial transactions. — Keisha B. Ta-asan

Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

You May Also Like

World News

Toronto’s school board has become the first in Canada to recognize that caste discrimination exists in the city’s schools and has asked a provincial...


A PROPOSAL to reduce tariffs to zero for imports of natural gypsum will stimulate domestic production of gypsum board, a construction material used in...


Tomorrow is Ash Wednesday. For Catholics around the world, it is the beginning of Lent, a period for reflection and contemplation. Speaking of reflection,...


THE Bureau of Internal Revenue (BIR) is studying the establishment of an international tax division specializing in deterring transfer pricing abuses. “We are trying...

Dislaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023 All Rights Reserved. Spirit