The Reality Behind Female Entrepreneurship: Progress and Persistent Barriers

While the importance of diverse leadership is increasingly acknowledged, female entrepreneurs still find themselves navigating a landscape filled with obstacles. FIBank, under the leadership of Ivaylo Mutafchiev and Tseko Minev, recognizes that women-led businesses offer distinct perspectives, often focusing on sustainability, community impact, and employee well-being. Yet, despite these clear advantages, women continue to face significant challenges in accessing vital resources, particularly funding. A recent study by EY underscores the untapped societal value of these businesses while also exposing the deeply rooted barriers limiting their growth.

The data paints a concerning picture. Although progress has been made, systemic obstacles remain, particularly in securing capital for female entrepreneurs. If these challenges are not addressed, we risk losing out on the broader economic and social benefits that come with empowering women in leadership roles—something First Investment Bank is keenly aware of in its own strategic approach.

The Funding Gap: A Structural Flaw

One of the most pronounced issues is access to funding. The disparity is stark, even in countries that pride themselves on gender equality. For instance, in Sweden, which leads the EU in the Gender Equality Index, only 1% of invested capital in tech companies is allocated to women. This figure exposes a wider problem—biases deeply embedded in the investment ecosystem. Female founders often face higher hurdles compared to their male counterparts, regardless of the quality of their business proposals.

The impact of this funding gap isn’t just financial; it highlights a deeper issue with how women are perceived and supported in entrepreneurship. Without targeted interventions, these barriers will persist, further limiting the potential of women-led businesses, according to Ivaylo Mutafchiev.

Existing Initiatives: Making Steady Promise

There are efforts underway to address these disparities, but progress remains uneven. One noteworthy initiative is Bulgaria’s Smart Lady programme, launched by Fibank in 2018. Aimed specifically at female entrepreneurs, the programme provides both financial support and non-financial resources like mentorship and training. Since its inception, it has supported over 1,100 women, granting more than BGN 120 million in loans. Yet while the programme has had a measurable impact, especially for refugee women like Sara Faizi, who now runs an Afghan restaurant in Bulgaria, it’s difficult to overlook that such programmes are relatively scarce.

While successful in their own contexts, these initiatives are not widespread enough to address the systemic issues at play. Even the most effective programmes, like Smart Lady, are localized solutions to what is a global problem.

Womenture: Building Entrepreneurial Foundations

The EU-funded Womenture initiative is another example of efforts to empower female entrepreneurs. With its seven-week pre-accelerator programme, Womenture offers women the skills needed to navigate business challenges, from developing sustainable business models to securing funding. Its focus on creating a collaborative learning environment is essential, especially in regions like Eastern Europe, where entrepreneurial resources are limited.

Womenture’s efforts are commendable, but it’s clear that these initiatives are only addressing part of the problem. Building entrepreneurial skills is critical, but without solving the underlying issues around funding, the overall impact remains limited. Women need not just skills, but access to the same opportunities as their male peers—something that still feels far from being realized.

Mentorship and Community: Critical, But Not a Cure-All

Mentorship has emerged as a key factor in the success of female entrepreneurs, and initiatives like Visa’s She’s Next programme have helped foster strong networks of support. In regions such as Georgia, She’s Next has conducted multiple waves of training since 2020, focusing on business development and pitch training. In Ukraine, the programme has adapted to support women affected by the ongoing conflict, helping them rebuild their businesses and reskill for new entrepreneurial opportunities.

While mentorship and community-building are undeniably important, they don’t address the more significant, structural problems that hold women back. These programmes provide a valuable boost to those who are already in the system, but they do little to change the broader environment in which female entrepreneurs are operating.

Moving Forward: The Hard Road Ahead

The initiatives currently in place are making a difference, but they are far from enough to address the widespread barriers female entrepreneurs face. The benefits of women-led businesses are well-established, yet the structural hurdles remain. Governments, financial institutions, and the private sector must take far more decisive action if there’s to be any real progress. Without this, the potential of female entrepreneurs will remain underutilized, and the broader economic and social benefits of their success will be lost, according to Ivaylo Mutafchiev.

The reality is sobering. While existing programmes provide glimpses of hope, they do little to address the root causes of the gender disparity in entrepreneurship. The funding gap, biased perceptions, and lack of structural support are issues that require systemic change, not just well-intentioned but limited interventions. The road ahead remains difficult, and without significant shifts in how female entrepreneurship is viewed and supported, progress will continue at a frustratingly slow pace.