Policy design needed to address barriers for women-owned businesses

In a comprehensive analysis, Dr. Richmond Lamptey, an Economist at the University of Greenwich, has emphasized the pressing need for policy design that specifically addresses the unique challenges faced by women-owned businesses.

Drawing from his extensive research, Dr. Lamptey underscored how these businesses navigate economic turbulence and the critical role of supportive policies in their growth and resilience.

Dr. Lamptey’s findings reveal that many banks are actively supporting women entrepreneurs by providing essential training, capacity-building programs, and financing. These initiatives are crucial for helping women-owned businesses not only survive but also thrive in challenging economic climates.

“The banks are supporting them through training, capacity building, and additional financing,” Dr. Lamptey stated, highlighting the importance of these efforts in fostering business growth.

Collaborative initiatives involving major financial institutions and private sector partners, such as those between Mastercard, the International Finance Corporation (IFC), and various banks, were identified as key contributors to this support network. These partnerships offer both funding and technical assistance, which are vital in helping women entrepreneurs overcome economic challenges and achieve their business goals.

Despite these supportive measures, Dr. Lamptey pointed out that significant barriers still hinder the progress of women-owned businesses. Cultural and institutional challenges remain prominent, often preventing these businesses from fully realizing their potential.

He noted, “There are still constraints, some of them are cultural barriers, and some are institutional challenges.”

Such barriers include a lack of collateral, which frequently limits access to necessary funding and resources.

To address these issues, Dr. Lamptey stressed the urgent need for policies that are specifically designed to overcome these barriers. He argued that a more supportive policy framework is essential for enabling women-owned businesses to transform and achieve their strategic objectives.

“We should design policies in a way that becomes enabling, more supportive for them to be able to transform their business and then achieve their strategic goals and objectives,” he advocated.

For women entrepreneurs, Dr. Lamptey offered practical advice on enhancing their businesses’ resilience.

He emphasized the importance of investing in training and capacity development, not just for the entrepreneurs themselves but also for their teams. Ensuring that team members are well-prepared and capable of managing the business in the owner’s absence is crucial for sustainability.

Dr. Lamptey also identified key elements that contribute to the resilience of women-owned businesses at different levels. Individually, psychological capital, self-efficacy, and social resource assets were highlighted as critical factors.

These attributes help entrepreneurs stay resilient and adaptable amidst challenges. At the organizational level, modifying business models and adopting digital tools were noted as essential strategies for coping with current economic conditions.

Institutional challenges, particularly regulatory pressures, continue to be a significant hurdle for women-owned businesses. Dr. Lamptey emphasized the importance of accessing additional resources from family, community, and financial institutions to navigate these challenges.

“Navigating through access to additional resources from people and banks is essential to overcoming the challenges,” he explained.

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