Digital inclusion: How to unlock the $5 trillion opportunity for women entrepreneurs

Women entrepreneurs are critical drivers of economic growth and poverty reduction in low- and middle-income countries (LMICs). They own nearly half of the businesses in Latin America and the Caribbean (47%), 44% in East Asia and the Pacific and 30% in Sub-Saharan Africa. Their ventures contribute significantly to job creation and GDP. However, despite their ambition and resilience, women entrepreneurs face systemic barriers that hinder their business success and slow down economic progress.

One of the most significant obstacles is digital exclusion. Access to digital tools and services have become key determinants of business success, yet women in LMICs often experience poor internet connectivity, lack of digital literacy, unaffordable mobile devices and data, and online gender-based violence (GBV). If policymakers are serious about unlocking women’s economic potential, they must bridge this divide by investing in legal and policy reforms, strengthening digital infrastructure and ensuring online safety for women entrepreneurs.

Findings from the Cherie Blair Foundation for Women’s latest report, Empowered or Undermined? Women Entrepreneurs and the Digital Economy, published with Intuit and the World Bank’s Women, Business and the Law project, highlight the stark realities of digital exclusion. While 92% of women entrepreneurs in LMICs surveyed own a personal smartphone, 45% lack regular internet access due to high data costs and unreliable connectivity. Without consistent access, their ability to participate in online markets and leverage web-based tools like social media, e-commerce, mobile money, and AI is significantly limited.

The gender gap in mobile internet usage remains a major concern. Women in LMICs are 15% less likely than men to use mobile internet, restricting their access to e-commerce, digital payments and essential business tools. Moreover, online harassment exacerbates digital exclusion. The report finds that 57% of women entrepreneurs have experienced some form of online harassment, deterring them from fully engaging in digital spaces and limiting their economic opportunities.

Findings from the report suggest that costly and complicated business regulations are a significant barrier for nearly one-fifth of women entrepreneurs in LMICs, making it harder for them to formalise and grow their businesses.

Another alarming trend is harassment during official business processes, such as applying for permits or loans. Women entrepreneurs are more likely than men to face intimidation or discrimination in these settings, discouraging them from engaging in formal economic activities.

Legal and regulatory frameworks can help eliminate these barriers. However, legislative and policy gaps continue to disadvantage women entrepreneurs around the world, as underscored by the World Bank’s 2024 Women, Business and the Law report. For instance, in some countries, women still need permission from a male family member to register a business. Discrimination in access to credit based on gender is also not legally prohibited in 96 out of 190 economies.

World Bank data also highlights a lack of government programmes that provide women entrepreneurs access to finance and training, coaching or business development activities, which can support them in opening and running a business. If policymakers fail to address these issues, they risk stifling the potential of millions of women-led businesses.

Closing the gender gap in digital and financial inclusion is not just a moral imperative – it is an economic necessity. Studies show that increasing women’s entrepreneurship can lead to substantial GDP growth. According to a 2019 analysis by Cherie Blair Foundation for Women and Boston Consulting Group, if women were able to participate equally as entrepreneurs to men, global GDP could be boosted by as much as $5 trillion – about the size of Japan's economy.

When women have access to digital tools, their businesses thrive. The Empowered or Undermined? Women Entrepreneurs and the Digital Economy report found that women entrepreneurs with regular internet access are 2.5 times more likely to use AI tools, which can enhance productivity and efficiency. Women who sell to male customers are three times more likely to receive digital payments, highlighting the demand for safe and accessible financial transactions.

Policymakers in both LMICs and high-income countries must take decisive action to bridge the digital divide and create an enabling environment for women entrepreneurs. The following measures are crucial:

Women entrepreneurs in LMICs are already proving their resilience and ability to drive economic progress. However, without urgent action, the digital divide will continue to undermine their potential. Policymakers must act now – not only to ensure gender equality but also to harness the economic benefits of inclusive entrepreneurship.

By investing in digital infrastructure, legal reforms, financial inclusion and online safety, governments can unlock new opportunities for millions of women entrepreneurs. A thriving digital economy – where women have the same opportunities as men – is not just beneficial for women; it is essential for sustainable economic growth worldwide.