CAPE TOWN - According to a survey conducted by Facebook, The World Bank and the Organisation for Economic co-operation and Development (OECD), female SMME owners have a tougher time securing a bank loan compared to men.
The survey studied the challenges that small, medium and micro-sized enterprises (smme’s) around the world face. Nearly 32 000 workers from 42 countries were sampled during December 2017 until January 2018.
According to the global findings, 16% of female entrepreneurs were able to secure a bank loan, compared to 22% of men.
This shows a gendered gap which determines whether an individual receives a bank loan or not.
However, according to the authors of the research, there are other factors which play a role in companies securing a loan from the bank.
This includes the number of years the company is in existence, its size and whether it is a capitally-intensive industry.
The report also revealed that although there is a general inequality in businesses receiving a bank loan, Africa faired quite well.
In Africa, nearly the same amount of women and men said they were able to secure a loan from the bank (8% of men, 7% of women).
However, in a developed country such as Europe, 20% of women were able to secure a loan from the bank, compared to 27% of men.
This shows that even though gendered inequalities are still persistent, more companies in developed countries are able to secure a bank loan.
and the private sector should consider initiatives to
address the financial challenges that disproportionately impact
female entrepreneurs, including those related to cultural issues
that discourage or prevent women from requesting bank loans", said the authors of the survey.
Business Report on March 9 reported on the latest data by Grant Thornton, which showed that the percentage of women in senior management positions in SA has risen from 26% to 29%. This is according to the independent advisory firm's 2018 International Business Report focused on Women in Business.
Yet, Director of Advisory Services at Grant Thornton, Lee-Anne Bac said that this figure is actually not very transformative.
“Given women make up more than 50% of our population, 29% is actually dismal. When in a minority it is very difficult for women to make a meaningful difference i.e. there is power in numbers. To really start to see a meaningful change we need to see at least 30% of leadership positions held by women (in each organisation) and then strive to achieve the elusive 50%”, said Bac.