Although men, as well as women, face difficulties in establishing an additional enterprise, women have barriers to overcome. Among them are negative socio-cultural attitudes, legal barriers, practical external barriers, lack of education and personal difficulties.

In spite of this, for women and especially for poor women, microentreprise ownership has emerged as a strategy for economical survival. One of the most essential factors contributing to success in microentrepreneurship is access to capital and financial services. For various reasons, women have had less access to these services than men.

In this context, credit for microentreprise development has been a crucial issue over the past decades. Research has shown that investing in women offers the most effective means to improve health, nutrition, hygiene, and educational standards for families and consequently for the whole of society. Thus, a special support for women in both financial and non-financial services is necessary.

Surveys have shown that many elements contribute to make it more difficult for women in small businesses to make a profit. These elements are:

Lack of knowledge of the market and potential profitability, thus making the choice of business difficult.
+Inadequate bookkeeping.
+Employment of too many relatives which increases social pressure to share benefits.
+Setting prices arbitrarily.
+Lack of capital.
+High interest rates.
+Inventory and inflation accounting is never undertaken.
+Credit policies that can gradually ruin their business (many customers cannot pay cash; on the other hand, suppliers are very harsh towards women).

It is important to keep increasing and supporting women's participation in micro-finance activities. Both governments and donors should explore ways of developing innovative credit programmes using intermediary channels or institutions closer to the target groups such as co-operatives, women's group associations and other grassroots organisations. Savings and credit programmes should be designed in a way not to exclude women from participating.

Additionally, there is a need to examine the impact of structural adjustment policies on men and women at the family level as well as within various sub-sectors of the labour market and within the small enterprise sector itself.

Text Source: Globenet, Verónica González Aguilar