Womens Entrepreneurial Venture Scope 2013

An index and study by the Economist Intelligence Unit
Women’s Entrepreneurial
Venture Scope
Commissioned by
WEVentureScope 2013
Women’s Entrepreneurial Venture Scope 2013
Contents
Preface 2
Acknowledgments 3
Executive summary 4
Key findings 6
About the report 8
Overall rankings 10
Business Operating Risks 11
Entrepreneurial Business Environment 15
Access to Finance 21
Capacity and Skills 27
Social Services 34
Methodology 37
Country profiles 40
Argentina 41 Honduras 61
Bolivia 43 Jamaica 63
Brazil 45 Mexico 65
Chile 47 Nicaragua 67
Colombia 49 Panama 69
Costa Rica 51 Paraguay 71
Dominican Republic 53 Peru 73
Ecuador 55 Trinidad and Tobago 75
El Salvador 57 Uruguay 77
Guatemala 59 Venezuela 79
Appendix: Sources and definitions 81
1 © The Economist Intelligence Unit Limited 2013

Preface
Women’s Entrepreneurial Venture Scope was the research director. Jamie Morgan, Analyst in
(WEVentureScope) is an Economist Intelligence Washington, was the project manager, working with
Unit publication funded by and developed in close Jimena Serrano, Research Associate in Washington.
collaboration with the Multilateral Investment Fund, Leo Abruzzese, the Economist Intelligence Unit’s
a member of the Inter-American Development Bank Global Forecasting Director and Executive Editor
Group. This is the first edition of the WEVentureScope. for the Americas, served as senior adviser. William
This Findings and methodology paper discusses the Shallcross advised on construction of the model,
major results of the index and the accompanying and Mike Kenny was responsible for layout and
global benchmarking model. Lucy Hurst, the design. We would like to thank the many researchers
Economist Intelligence Unit’s Associate Director who lent their expertise to this project. A full list of
for Custom Research in the Americas in New York, acknowledgments follows.

Acknowledgments
The following economists, researchers, women’s Expert panel members

entrepreneurship specialists and country analysts Marguerite Berger
contributed to the report. Vital Voices
We thank them for their participation.
Paz Castillo-Ruiz
Gender in Development Consultant
Economist Intelligence Unit specialists and
Anastasia DeSantos
contributors
US Agency for International Development
Rodrigo Aguilera, Diane Alarcon, Federico Barriga,
Anne Marie Golla
Bronwen Brown, Brendan Koch, Veronica Lara,
International Center for Research on Women
William Lee, Fiona Mackie, Susana Martinez,
Thierry Ogier, Claudia Pompa, Jenny Schuch, Caren Grown
Ross Sheil, Anna Szterenfeld, Philip WithersGreen, US Agency for International Development
Nick Wolf, Robert Wood. American University
Mary Ellen Iskenderian
Multilateral Investment Fund project team Women’s World Banking
Laura Giraldo, Lauren Murphy, Tetsuro Narita, Melissa Johns
Georg Neumann, Maria Teresa Villanueva, World Bank
Lee Urquijo. Jeni Klugman
Reviewers: Monica Pina Alzugaray, Sandra Darville, World Bank
Michelle Friedman, Susana Garcia-Robles, Barbara Magnoni
Maria Luisa Hayem, Nancy Lee, EA Consultants
Irene Moreno-Jimenez, Sergio Navajas,
Claudia Piras
Nobuyuki Otsuka, Paola A. Pedroza,
Inter-American Development Bank
Maryline Penedo, Francisco Rojo, Elizabeth Terry,
Julie Weeks
Alejandra Viveros.
Womenable

Executive
summary
Women entrepreneurs in Latin America and the national economies have expanded.2 Between
Caribbean are potentially one of the greatest 2000 and 2010 income growth among women in
underutilised resources in the region. More than Latin America and the Caribbean contributed to a
almost anywhere else, Latin American women are 30% reduction in extreme poverty.3 Arguably,
starting businesses because they are identifying women entrepreneurs offer similar economic
opportunities, and their countries have much to benefits. The abundance in Latin America of
gain.1 As more women in the region have become opportunity-driven female entrepreneurs—those
active in the workforce in the past two decades, who form businesses because they see
opportunities, not because they have no other
1 The share of opportunity-driven early stage women entrepreneurs in the overall
population in Latin America and the Caribbean is second only to Sub-Saharan
Africa. EIU calculations with Global Entrepreneurship Monitor (GEM) data on
female early-stage entrepreneurship as a percentage of the total population, and 2 Economist Intelligence Unit data. Women’s workforce participation in Latin
female improvement-driven opportunity entrepreneurs as a percentage of total America rose from 40% in 1990 to 53% in 2010, while the region’s average annual
female early-stage entrepreneurs. Global Entrepreneurship Monitor, GEM 2012 GDP growth was on average 3%.
Global Report. 3 World Bank, World Development Report 2012: Gender Equality and Development.
Prevalence of female opportunity-driven entrepreneurs, by region

Female early-stage Female early-stage, Female early-stage,
entrepreneurs opportunity-driven opportunity-driven
% of adult population entrepreneurs entrepreneurs
% of female early-stage % of adult population
Region entrepreneurs
LATAM 15.0
71.0
10.7
MENA 4.0
58.0
2.3
SSA 27.0
61.0
16.5
ASPA 7.0
76.0
5.3
EU 5.0
74.0
3.7
NON-EU 5.0
59.0
3.0
US 10.0
74.0
7.4
Source: EIU calculations with Global Entreprepreneurship Monitor data

choice—suggests that women’s business understanding of the business environment and

aspirations may be particularly important to the the factors that drive women’s business success.
region’s growth. Indeed, evidence shows that The Economist Intelligence Unit (EIU), in
opportunity-driven entrepreneurship has a collaboration with the Multilateral Investment
decisively positive impact on economic expansion Fund (MIF), a member of the Inter-American
in the region.4 Development Bank (IDB) Group, has created the
Nonetheless, many countries in Latin America Women’s Entrepreneurial Venture Scope
and the Caribbean are not reaping the full benefit (WEVentureScope) to meet this need. The
women entrepreneurs present. The vast majority of WEVentureScope is the first comprehensive
women-led businesses in the region are unable to assessment of the environment for all female
grow beyond microenterprises or move out of the entrepreneurs in Latin America and the Caribbean,
informal economy, which reduces the earning creating a standardised framework to help the
potential of those businesses. Women lead 23% of public and private sectors empower women
small businesses in the region, but only 9% of large business owners. Although other studies have
ones.5 Firm size matters, as it is positively linked to analysed the impediments faced by women in the
the income of the firm and owner.6 The growth workplace—from the World Economic Forum’s
potential of women’s businesses is also constrained Global Gender Gap report to the EIU’s Women’s
by informality: between 55 and 91% of women’s Economic Opportunity Index—no study has
entrepreneurial activity in the region is in the extended its reach to assess the factors affecting
informal economy.7 Operating informally can make women entrepreneurs operating micro, small and
entrepreneurs more vulnerable to corruption and medium-sized enterprises (MSMEs) in Latin
restrict access to formal sources of credit.8 Limiting America and the Caribbean. The WEVentureScope
expansion opportunities for women-led businesses calls attention to this need, providing a platform
reduces incomes, innovation and economic for dialogue about the most relevant factors that
growth, damaging national competitiveness. influence the start-up and growth of women’s
Improving opportunities for female businesses.
entrepreneurs in the region requires a better
4 Zoltan Acs, “Innovations: Technology, Governance”, Globalization Winter 2006,

Vol. 1, No. 1: 97–107.
5 World Bank, Enterprise Surveys, 2005-2010.
6 World Bank, Inter-American Development Bank, GTZ, “Women’s Economic
Opportunities in the Formal Private Sector in Latin America and the Caribbean: A
Focus on Entrepreneurship”, 2010.
7 International Labour Organisation, 2006-10. Employers and members of producers’
co-operatives and self-employed own-account workers that own an enterprise in
non-agricultural activities were used as proxies for entrepreneurship.
8 World Bank, Inter-American Development Bank, 2010.

Key findings
l Chile, Peru and Colombia have the best l Chile, El Salvador, Mexico, Peru, Colombia and
environments for female entrepreneurs. Chile Brazil share the top ranks in individual
leads the overall rankings, with low category measures. Chile performs the best in
macroeconomic risk, particularly strong supplier the Business Operating Risks category, reflecting
diversity initiatives and robust social services. a stable macroeconomic environment and low
Strong business networks, SME technical perception of corruption. El Salvador offers
support programmes and a stable strong support for entrepreneurs, particularly
macroeconomic environment place Peru just through low tax rates and wide access to financial
behind Chile. Colombia finishes third; it has auditors. Women in Mexico enjoy some of the
well-developed SME training programmes and best access to finance in the region. Peru and
provides broad access to university-level Colombia provide strong education and technical
education for women. training—Peru through public- and private-sector
technical training programmes and Colombia
l Countries with better environments for through high levels of school-life expectancy and
women entrepreneurs are also more strong vocational programmes for women. Brazil
competitive. The findings of the performs well in measures of childcare and elderly
WEVentureScope suggest that countries which care; in 2009, 86% of the elderly population
provide women with the economic, regulatory, received public pension benefits.
financial, educational and familial support they
need to start and grow businesses also tend to l Many countries in the region score well for
be better at building competitive economies. educational opportunities and business skills
Overall scores on the WEVentureScope have a training for women, but offer fewer
strong positive correlation with the Global opportunities in non-traditional fields and do
Competitiveness Index, an assessment of not always encourage women to pursue them.
national competitiveness produced annually by In particular, more than half of the countries in
the World Economic Forum. the index offer sufficient access to business
organisations that include networking
opportunities. In nearly all countries more than
50% of tertiary education graduates are women,
although educational opportunities in non-
traditional fields for women leave opportunity
for improvement.

WEVentureScope overall score vs Global Competitiveness Index overall score

70
WEVentureScope score Chile

65
Peru
Colombia
Uruguay Mexico
60
Costa Rica
Argentina
55
Trinidad
Ecudor and Tobago Panama
Brazil
Dominican
50 Republic
Bolivia Honduras
Nicaragua
Venezuela Guatemala
45
El Salvador
Paraguay
Jamaica
40
3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00
Global Competitiveness score
Source: EIU and World Economic Forum
l Access to personal finance is poor for women l More advanced and diversified financial
in many countries in the region. A sizeable instruments at the SME level present the
portion of women business owners remain greatest financial gaps for women-led
unserved or underserved when it comes to businesses in the region. Women enjoy the
formal financial products such as checking and greatest access to microcredit, yet growth-
savings accounts and loans. In the majority of oriented women entrepreneurs are often unable
countries in the index, less than one-third of all to access more sophisticated forms of financing,
women had saved money in a financial especially with appropriate terms and
institution in the past year or made monthly conditions. To accommodate women’s needs
deposits and withdrawals. during their micro-to-SME transition, financial
institutions must expand the scope and size of
their credit and other basic financial products
and services. On average, just over 21% of
women entrepreneurs’ working capital and 22%
of capital investments are financed by banks.
Additionally, women entrepreneurs lack access
to equity financing and other types of financial
instruments, such as supplier credit, which
constrains business size at start-up as well as
growth.

About
the report
Scope of the index non-traditional fields for women, such as

manufacturing or computer engineering, which
The WEVentureScope examines and ranks 20 are disciplines researchers have linked to higher
countries in Latin America and the Caribbean growth enterprises.
according to their positive and negative influences l The Social Services section examines the degree
on women entrepreneurs. It also offers insights to which governments have provided adequate
into the measures that help support women’s support for families. This is a critical enabler for
business start-ups and contribute to their growth. women to move beyond traditional care-giving
The index analyses women’s entrepreneurship roles to those offering greater economic
across five areas: Business Operating Risks, opportunity, particularly in a region where
Entrepreneurial Business Environment, Access to domestic and family responsibilities are
Finance, Capacity and Skills, and Social Services. assigned disproportionately to women.
l The Business Operating Risks category Building the index

assesses the underlying economic and security In creating the WEVentureScope, the EIU and the
environment in which all entrepreneurs (male MIF worked with a panel of experts on women’s
and female) operate and covers macroeconomic entrepreneurship and economic development. The
risks, security risks, and vulnerability to team considered a wide range of indicators that
corruption. influence the environment for the formation and
l The Entrepreneurial Business Environment growth of women’s businesses. Many of the
category evaluates the costs and regulatory indicators were drawn and adapted from the work
requirements for starting a new business, and of respected international organisations, including
the extent of programmes to support MSMEs, the World Bank’s Enterprise Surveys and its Global
particularly those led by women. Financial Inclusion Database. When data for critical
l Access to Finance measures the availability and assessments did not exist, the EIU created new,
use of formal financial products by female qualitative datasets. Among the eight new
managers of MSMEs. indicators in this index are measures of supplier
l Capacity and Skills considers the availability diversity, the presence of women’s business
and affordability of traditional education networks, and the depth of the supporting
programmes for women, as well as basic and regulatory environment for small and medium-
advanced business and financial skills training. sized enterprises (SMEs). An EIU country analyst
It also examines the availability of education in conducted primary and secondary research to score

the new indicators for each of the 20 countries in or indicators for which sex-disaggregated data do
the index. The EIU also carefully filtered existing not exist, the index employs data on male and
datasets to extract detailed information on women female entrepreneurs. For indicators that can
and the business environments in which they impact men and women entrepreneurs differently,
operate, adding to the underdeveloped world of the index uses women-specific data, as long as sex-
sex-disaggregated information. disaggregated data are available. For example,
Once the data had been collected, the EIU female entrepreneurs, like their male counterparts,
normalised them on a scale of 0-100, in which 100 are influenced by the entrepreneurial business
represents the best score. The normalisation of the environment where they live. If the general
data produces a consistent scale for ranking the business environment is unstable, or if the
findings. The result is a comprehensive picture of procedures for starting, running or exiting a
the conditions that women entrepreneurs face, business are highly regulated or bureaucratic, this
both informal and formal, throughout the region, would form a disincentive for both male- and
with a clear indication of where countries do well female-led businesses. However, other factors,
and where further progress is required. such as access to finance, are believed to affect
male and female entrepreneurs in different ways;
Understanding the powers and lending practices that are labelled gender-blind
limitations of an index often do not support women-owned firms in the
The index, constructed with the support of experts same way as male-owned firms. For this reason the
with decades of experience in economic index captures women-specific data in its Access to
development and women’s issues, is a tool. It is Finance category.
meant to identify successes and challenges at a Finally, it is important to note that several
national level, and to serve as a starting point for countries in the region were not included in this
dialogue and analysis. It should be used in tandem study because of poor data availability. Their
with the many other excellent studies of women’s absence from this index shows the need for greater
entrepreneurship and business opportunities. By attention to data collection, which has become a
analysing conditions at the national level, indices key enabler of discussion and action.
such as this can miss some of the local context.
Although this is an important limitation, the overall Using the index
depth and comparative power of this index sheds a The index is presented in both Excel and online
brighter light on the environments in which women versions, which include a range of analytical tools.
entrepreneurs operate. The index also provides a Users can examine the strengths and weaknesses
unique tool for policymakers, investors and of a particular country through detailed profiles in
researchers to improve their understanding of what the model, as well as the descriptions in this
drives the economies of Latin America and the report. Any two countries may be compared
Caribbean, and the challenges they face. directly, and individual indicators can be isolated
While some aspects of this index examine issues and examined. Where the EIU has created new
that impact both male and female entrepreneurs, it datasets through internal, qualitative scoring,
does so from the perspective of women business users can see the justification for the scoring in the
owners. In constructing this index, the expert Commentary section of the model. The online tool
panel advised on the impact each indicator in the enables users to explore the data through visual
index has on men and women entrepreneurs in representations that bring the findings to life and
Latin America and the Caribbean. For indicators make them available to a wider audience.
that are believed to affect men and women equally, www.weventurescope.com

Overall
rankings
Rank Country Score/100
1 Chile 64.8
2 Peru 62.4
3 Colombia 61.8
4 Mexico 60.2
5 Uruguay 60.0
6 Costa Rica 56.8
7 Argentina 54.6
8 Trinidad and Tobago 53.9
9 Panama 53.6
10 Brazil 53.3
11 Dominican Republic 52.3
12 Ecuador 52.2
=13 Bolivia 47.7
=13 Honduras 47.7
15 Nicaragua 46.6
16 Guatemala 45.6
=17 El Salvador 45.5
=17 Venezuela 45.5
19 Paraguay 44.3
20 Jamaica 42.2

BUSINESS OPERATING RISKS
Business Operating Risks
Caribbean
16
Jamaica 10
47.0 Dominican
North & Republic
Central America 57.9
4
13 Trinidad and
7 Honduras Tobago
Costa Rica 53.0 70.5
11 65.5
Mexico
9
57.8
2 Guatemala
12 Panama 58.5
Nicaragua 76.1
53.5
18
El Salvador
39.1
20
Venezuela
South America 28.5
5 8
6 19
Colombia Peru
Ecuador Brazil
66.0 65.2
65.6 35.4
17 14
1 Argentina Bolivia
Chile 45.0 51.3
77.7
15
Paraguay 3
Rank 0 49.0 Uruguay
Country Country 72.2
Score/100 Score
Business
Operating
Risks score
0–20
21–40
41–60
61–80
81–100

Indicators and sub-indicators in this section Rank Country Score/100

include:
1 Chile 77.7
1.1 Macroeconomic risk
2 Panama 76.1
1.2 Security risk 3 Uruguay 72.2
1.2.1 Average security costs, % of MSME revenue 4 Trinidad and Tobago 70.5
1.2.2 Crime perception, % of MSMEs 5 Colombia 66.0
1.3 Vulnerability to corruption 6 Ecuador 65.6
1.3.1 Perception of bribery prevalence, 7 Costa Rica 65.5
% of MSMEs 8 Peru 65.2
1.3.2 Corruption perception, % of MSMEs 9 Guatemala 58.5
The data in this category are gender-neutral 11 Mexico 57.8
(combined measures for both men and women). 12 Nicaragua 53.5
13 Honduras 53.0
14 Bolivia 51.3
Overall results in Business 15 Paraguay 49.0
Operating Risks 16 Jamaica 47.0
The Business Operating Risks category assesses the 17 Argentina 45.0
basic business environment in which entrepreneurs 18 El Salvador 39.1
19 Brazil 35.4
operate, including macroeconomic risk, security
20 Venezuela 28.5
risk and corruption. Chile, Panama and Uruguay
provide the least risky environments for women
seeking to start and grow a business. Chile’s environment that affect businesses of all sizes and
combination of low macroeconomic risk and both male and female entrepreneurs, these factors
minimal vulnerability to corruption places it at can be especially significant deterrents for female
the top of this category, even though other entrepreneurs. Small-scale business people, for
countries offer lower security risks and better example, are particularly vulnerable to economic
macroeconomic performance. Ecuador, Panama fluctuations, as they lack the financial, physical
and Peru, for example, are tied for the lowest and social capital in the early stages of their
macroeconomic risk in the study, in part because of businesses to withstand shocks. Theft and robbery
strong economic growth, while average security can also drain the limited resources of a female
costs as a percentage of revenue among small and entrepreneur before she has established the
medium-sized enterprises (SMEs) were lowest in reserves necessary to mitigate these risks.
Uruguay. Micro, small and medium-sized Corruption and bribery can add further to the start-
enterprises (MSMEs) in Panama were the least up and operating costs, to the point where
likely to identify crime, theft and disorder as a entrepreneurship is not sufficiently profitable to
major constraint, all of them reflected in the crime balance the risk.
perception indicator. In addition to Chile, fewer
than 5% of MSMEs in Colombia and Costa Rica Indicator results in Business
expected to have to make informal payments or Operating Risks
give gifts to officials in the normal course of
business—that is, to give bribes to get things done,
Macroeconomic policies matter to MSMEs
as captured in the perception of bribery Research shows that macroeconomic factors—that
prevalence indicator. is, economic growth, inflation, exchange rates and
Although the Business Operating Risks category other barometers of the business environment—
considers elements of the national business are of significant concern to MSME managers, and

Perception of crime and corruption as business constraints for MSMEs Corruption perception, % of MSMEs
Crime perception, % of MSMEs
10.8
59.7
30.4
57.8
45.8
69.8
62.6
19.4
41.9
49.1
34.1
36.8
19.8
62.7
42.4
58.4
32.3
62.7
55.7
59.5
43.6
61.6
28.8
46.9
49.4
55.6
32.8
52.7
49.7
22.1
52.1
36.8
47.7
29.8
24.9
33.0
20.1
32.5
39.1
61.2
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Note: Data shows the percentage of MSMEs that consider crime/corruption as a significant constraint for doing business Source: World Bank
that macroeconomic instability or uncertainty are Security risks affect smaller businesses
among the top impediments to expanding their disproportionately
businesses.1 In Ecuador and Panama,
dollarisation—the use of the US dollar in parallel With fewer resources than their larger competitors,
with the local currency—has reduced inflation, small businesses experience investment climate
maintained price stability and kept interest rates challenges more acutely than large enterprises.
low. Peru, meanwhile, has enjoyed two decades of Small businesses have fewer resources to invest in
price and currency stability through conservative preventative measures such as security services, or
fiscal and monetary policies. A diverse group of risk-mitigation strategies such as insurance.
export industries and trading partners can also Indeed, research has shown that security spending
limit the economy’s vulnerability to external is among the first items MSMEs cut when they need
shocks. Sound macroeconomic policies, therefore, to lower costs to remain competitive.4 Limited
create more stable operating environments for staffing also means that many small businesses may
entrepreneurs, including women. The flow of not develop holistic risk management strategies to
benefits goes in the other direction as well. Ample address security risks. As businesses run by women
research shows that female-led businesses are more likely to be small than those run by men,5
contribute significantly to economic growth in security risks may affect women entrepreneurs
many countries. Over the past three decades US disproportionately.
firms owned by women have grown twice as fast as In the study, Panama, Uruguay and Costa Rica
businesses owned by men.2 Women-owned firms in scored best on the security risk indicator, with
Canada have shown similar results. While these firms having low average security costs in Uruguay
growth rates are not yet repeated in developing and low crime perception in Panama and Costa
countries, they demonstrate the potential of Rica. These results were derived from surveys of
female-led businesses.3 enterprises conducted by the World Bank. In
Uruguay, security costs make up less than 1% of
annual revenue for MSMEs. Security costs account
for a similarly low share of annual revenue for
MSMEs in Mexico, the Dominican Republic and
Argentina, despite the fact that crime is seen to be
1 Thorsten Beck, “Financing Constraints of SMEs in Developing Countries: Evidence,
Determinants and Solutions”, World Bank, May 2007. 4 “Financial impact of crime still number one concern for commercial SME’S”, COVER,
2 “Strengthening Access to Finance for Women-Owned SMEs in Developing July 2011.
Countries”, International Finance Corporation, October 2011. 5 “Strengthening Access to Finance for Women-Owned SMEs in Developing
3 Ibid. Countries”, International Finance Corporation, October 2011.

a more significant obstacle to their growth in these factor.6 Additionally, surveys show that where
countries. In Argentina, half as many MSMEs corruption is more prevalent, fewer MSMEs are
identified crime as a problem as did comparable present in the formal economy.7
enterprises in Brazil.
The perception of security risk, as much as the Perception of corruption varies
risk itself, can be an impediment for potential among countries
entrepreneurs. The Dominican Republic has the
third-lowest average security costs, just below Chile leads the region with the lowest vulnerability
Uruguay and Mexico. Yet Dominican managers of to corruption. Less than 1% of MSMEs in the
MSMEs still see crime as a significant barrier to country believe that firms similar to theirs pay
business growth, with 42% saying that crime, theft bribes “to get things done”— as captured by the
or disorder are a constraint, compared with 32% in perception of bribery prevalence sub-indicator—
Uruguay and Mexico. Thus, although security costs and fewer than one in five perceive corruption as a
may not directly affect budding businesses in major constraint. Brazil ranks at the bottom in
Mexico, according to the study, the perception of vulnerability to corruption, with 70% of MSME
the risk posed by criminality and violence in the managers saying that corruption is a major
country may be a barrier in itself to MSME growth. constraint. The index also suggests that despite the
Just as security costs can drain the limited realities of bribery, it deters entrepreneurs in some
resources of MSMEs, corruption also saps energy countries more than in others. In Uruguay, MSMEs
and resources that could be more productively were ten times more likely than their Chilean
spent on building and growing a business. In a counterparts to expect to pay bribes, but the
2010 study by the World Bank, SMEs reported percentage of small businesses reporting corruption
corruption among the top six obstacles to growth. as a major constraint in the two countries was
Medium-sized enterprises, according to the study, roughly the same. In Panama, firms were 45 times
consider corruption an even greater obstacle than more likely than Chilean firms to expect to pay
small businesses, suggesting that as businesses bribes, but the number reporting corruption as a
grow, corruption becomes a more constraining major constraint was roughly the same.
6 Khrystyna Kushnir et al., “Micro, Small, and Medium Enterprises Around the World:
How Many Are There, and What Affects the Count?”, World Bank/IFC, 2010.
7 Gil Avnimelech al, “The Effect of Corruption on Entrepreneurship”, Druid Society,
June 2011.

ENTREPRENEURIAL BUSINESS ENVIRONMENT
Entrepreneurial Business Environment
Caribbean
19 6
Jamaica Dominican
38.6 Republic
North &
Central America 54.6
17
16 Trinidad and
13 Honduras Tobago
7
Mexico 48.2
52.8 18
Guatemala
11
20 41.1
Panama
Nicaragua 48.5
36.3
2
El Salvador
58.9
12
Venezuela
48.4
South America
3
10 Peru 8
4 Colombia Brazil
Ecuador 56.9
49.9 52.0
55.7
5 15
1 Argentina Bolivia
Chile 55.5 46.7
61.8
13 9
Rank 0
Country Country Paraguay Uruguay
Score/100 Score 48.2 51.7
Entrepreneurial
Business
Environment
score
0–20
21–40
41–60
61–80
81–100


include:
1 Chile 61.8
2 El Salvador 58.9
2.1 Property rights 3 Peru 56.9
2.1.1 Default marital property regime 4 Ecuador 55.7
2.1.2 Joint titling 5 Argentina 55.5
2.2 Costs of doing business 6 Dominican Republic 54.6
2.2.1 Starting a business 7 Mexico 52.8
2.2.2 Depth of credit 8 Brazil 52.0
2.2.3 Total tax rate 9 Uruguay 51.7
2.2.4 Contract enforcement 10 Colombia 49.9
2.3 Business sophistication 11 Panama 48.5
2.3.1 International quality certification, % of 12 Venezuela 48.4
women-led MSMEs* =13 Costa Rica 48.2
2.3.2 Audits, % of women-led MSMEs* =13 Paraguay 48.2
2.3.3 Firms with website, % of women-led 15 Bolivia 46.7
MSMEs* 16 Honduras 42.2
2.3.4 Firms using email, % of women-led 17 Trinidad and Tobago 41.6
18 Guatemala 41.1
MSMEs*
19 Jamaica 38.6
2.4 Supporting regulation
20 Nicaragua 36.3
2.5 Supplier-diversity initiatives*
2.5.1 Supplier-diversity initiatives, public
sector* male and female business owners: property rights,
2.5.2 Supplier-diversity initiatives, private the costs of doing business, business
sector* sophistication, regulations that support MSMEs,
2.6 Female-headed households* and supplier-diversity initiatives in the public and
private sectors. These components describe the
There is a mix of gender-neutral (combined entrepreneurial experience from start-up (property
measures of both men and women) and women- rights, start-up costs) to operation (supporting
specific data in this category. All women-specific regulation, contract enforcement) to growth and
data are marked with an asterisk (*) above. sophistication (international quality certifications,
supplier-diversity initiatives). Much of this
Overall results in Entrepreneurial information is filtered to capture the experience of
female managers of MSMEs.
Business Environment
The Entrepreneurial Business Environment Indicator results in
category evaluates the costs of starting a new
Entrepreneurial Business
business and the presence of regulations and
programmes to support MSMEs, specifically those
Environment
led by women. The category considers factors that Overall, the 20 countries in the index performed
affect female entrepreneurs in particular, such as more poorly in this category than in the category of
property rights—which can serve as collateral for a Business Operating Risks, demonstrating an
loan—and the prevalence of female-headed opportunity for improvement across the region. In
households, which may increase the need and particular, the public and private sectors could do
motivation for a woman to start a business. The more to expand supplier-diversity initiatives and
category also considers factors that affect both ensure that they include incentives for employing

female-led MSMEs. In more than half of the Cost of doing business lowest in Chile,
countries in the index women enjoy equal rights Peru and Panama
over marital property. Well over half of the
countries surveyed also feature low costs of doing High start-up and operating costs can ward off
business that do not discourage entrepreneurs. potential entrepreneurs and slow the growth of
Chile performed the best, with strong property newly established businesses. Some of the most
rights for men and women, the lowest costs of significant costs to entrepreneurs are forming and
doing business, and adequate regulation to registering a business, the cost of credit, paying
support the growth of MSMEs. Jamaica ranked at taxes and the legal costs associated with contract
the bottom, owing in particular to the lack of enforcement. Operating costs influence an
property rights for women and the absence of entrepreneur’s ability to invest in business growth
supplier-diversity programmes in the private or and include the cost of credit, taxes and legal
public sectors. costs. Credit histories enable financial institutions
to accurately price credit and increase availability.
Property rights inequality highest in Credit information is widely available throughout
Central America the region, except in Jamaica, which, as of 2012,
The index’s scoring of property rights reveals a had no public or private credit bureaus that track
strong divide between Central and South America. such information. Plans are under way to create
With the exception of Guatemala, women in Central such a bureau. Lack of credit information can make
American countries do not enjoy the same equality it more difficult for entrepreneurs to obtain loans.
in property rights as their South American Using World Bank data, the WEVentureScope
counterparts. A country’s marital property regime finds that the costs of doing business are lowest
determines whether property titles bear the names in Chile, Peru, Panama, Uruguay and Mexico. Costs
of both spouses by default. Banks tend to prefer in the region are nonetheless relatively high.
titled land as collateral, so a default regime that According to the World Bank’s Doing Business 2012
ensures property titling in the names of both survey, the costs of starting a business are
spouses increases women’s access to bank credit. greater in 11 countries in the index than in half of
Financing sources beyond bank loans can be limited, the countries measured globally. Reducing costs to
especially for entrepreneurs and start-ups that have entry is one way in which countries can boost
little experience and/or limited credit histories. MSMEs’ share of employment and participation in
Access to and control of property is fundamental to the formal economy. In Bolivia and Guatemala, the
entrepreneurship, so policies and programmes that large informal sectors keep the tax bases small,
promote women’s access to marital property limiting their governments’ ability to meet urgent
increase their opportunities as entrepreneurs. spending needs.
The default marital property regime sub-
indicator shows that women in all South American Just five countries have total tax rates
countries in the index, from Argentina to below 40%
Venezuela, have full equality in marital property The index measures total tax rates to assess the
rights. In Central America, women fare best in El burden placed on young enterprises. Total tax
Salvador, where both spouses administer property rates for businesses at the end of their second year
and are entitled to the property in the case of of operation were lowest in Chile, Trinidad and
divorce. In Honduras and Nicaragua, the weakest Tobago, El Salvador, Paraguay and Ecuador.
in the region, joint titling exists, but there is no Colombia is ranked 18th out of 20 countries on the
presumption of joint ownership of marital assets, total tax rate. It has a complex and unpredictable
and the default marital property regimes do not tax system that was even more cumbersome and
create equal access to marital assets. prohibitive for business in the past, although in

Days for contract enforcement
1,346
1,459
1,340
590
591
731
480
852
460
588
786
920
655
415
409
686
591
428
725
510
510
727
a
ia
il
ile
ca
ic
or
as
ca
ay
ru
la
an
do
ua
in
bi
al
gu
m
xic
ag
az
bl
liv
ue
ud
Pe
ur
Ri
ai
gu
Ch
be
em
na
co
m
nt
lva
Br
ug
pu
ra
ob
m
Me
Bo
nd
ez
Ec
ta
ra
lo
rib
ge
in
Pa
ca
Ja
at
Ur
Re
dT
Sa
n
os
Pa
Co
Ho
Ca
Ar
Ve
gh
Ni
Gu
C
an
n
El
hi
ica
&
ad
ica
CD
in
id
m
OE
er
in
Do
Am
Tr
tin
La
Note: Days for contract enforcement measures the number of days required for enforcing a contract, counted from the day the plaintiff files a complaint in court until the day of payment. Source: World Bank
recent years the government has made efforts at firm’s growth potential. According to World Bank
reform. Between 2007 and 2012 the government data, filtered and normalised by The Economist
reduced the number of annual tax payments from Intelligence Unit, Argentina and the Dominican
69 to nine. Regulatory simplification benefits Republic are home to the most sophisticated
MSMEs because they generally operate with fewer women-led MSMEs. Brazil leads the region by far in
administrative and support staff. international quality certifications at women-led
MSMEs, with 58% of such enterprises holding an
Protracted and costly contract internationally recognised quality certification.
enforcement Panama comes next in this study, with 30%. Such
The cost of contract enforcement is also a certifications allow MSMEs to enter export markets
challenge for many MSMEs in the region. None of or participate in multinational supply chains. In
the countries measured in the index resolved the Dominican Republic and El Salvador, more than
contract complaints filed in court in less than one 90% of women-led MSMEs have an annual financial
year. In seven of the countries measured, statement reviewed by an external auditor, as
enforcement takes more than two years, with the captured by the audits sub-indicator. The use of
longest enforcement time at 1,459 days in financial statements and outside auditors means
Guatemala. Nicaragua, Mexico and Peru have the that a significant percentage of female-led MSMEs
shortest enforcement times. Nonetheless, even in in these countries are able to make strategy and
countries with speedier judicial results, corruption investment decisions based on measured results.
remains a problem. Nicaragua’s judiciary is highly
politicised, while litigation to recover debts in Peru Business email use is widespread at women-
can cost up to half the amount being contested. led MSMEs in Latin America and
Consequently, businesses tend to prefer trusted the Caribbean
suppliers and customers, creating a low- Technology usage at MSMEs can increase efficiency,
competition environment that does not favour expand the customer base and provide
start-ups. opportunities for innovation. Some 67% of women-
The index measures several aspects of business led MSMEs in Argentina have a website, followed
sophistication of female-led MSMEs, including by 58% in Chile and 57% in Colombia. Email usage
international quality certifications, audits and the for business purposes at women-led firms using
use of email and the Internet to interface with email is even higher, ranging from 65% in
customers. Access to these services increases a Honduras to 99% in Colombia.

Regulation supports access to credit and government advertises opportunities online,

fiscal incentives for MSMEs expanding access, and assists with financing by
providing credit for working capital. The Mexican
A country’s regulatory environment determines the government prioritises public purchases from
ease with which entrepreneurs can start a new SMEs, with a legal requirement gradually to source
enterprise and access the resources available to 35% of government supplies from SMEs. Trinidad
them. It can also provide new opportunities and and Tobago recently began implementing a 10%
incentives for growth. The WEVentureScope set-aside of government purchasing from SMEs.
measures the regulatory environment for MSMEs— Other countries, including Argentina, Colombia
captured in the supporting regulation indicator— and Panama, have established legal requirements
on a scale of zero to four, where four equals for procurement from MSMEs, but the systems have
comprehensive regulations supporting the creation not yet been implemented. In Bolivia and Jamaica,
and growth of MSMEs. An extra point was awarded the requirement for government suppliers to
for countries with regulations specific to women- formalise and register their businesses has limited
led MSMEs. None of the 20 countries scored in the MSME participation in government procurement.
index received the full four points, suggesting that Although MSMEs in Paraguay can bid for
the region could do more to support MSME growth. government procurement contracts, a lack of
Eighteen out of 20 countries in the index did have sufficient and timely information has hindered
some form of regulation supporting MSMEs. In El their participation.
Salvador and Jamaica, the lowest-scoring countries Private-sector supplier-diversity initiatives
on this indicator, a formal legal framework for are not widespread in the region, but some pockets
MSMEs is still being established and is awaiting of activity exist. In Argentina, programmes based
approval in the countries’ respective legislative on business size are common. A few companies also
bodies. have programmes targeting women-led businesses.
WalMart’s Mujeres 360 programme aims to improve
Public-sector supplier diversity still a opportunities for women throughout the
work in progress company’s supply chain. WalMart has worked to
Public-sector supplier-diversity programmes are develop local suppliers throughout Central America
another area in which governments can positively since 2008, offering training and advice to
impact microenterprises and SMEs. Many potential suppliers. The Argentinian government
governments have used quotas and set-asides to has expanded the presence of supplier-diversity
mandate a minimum number of purchases from programmes by insisting that large companies
MSMEs. Experiences in Latin America and the increase MSME sourcing. In contrast, the Chilean
Caribbean are varied; many programmes are still government uses public relations tools to
under development or not fully implemented. encourage MSME sourcing, awarding a pro-MSME
While some public-sector supplier-diversity seal of approval to businesses which commit to
initiatives exist to support MSMEs, including in sourcing 5% of their purchases from Chilean
Venezuela, Nicaragua and Mexico, none of the MSMEs. In some cases, MSME sourcing has
countries in the index have programmes developed more informally. In Trinidad and
specifically for female-led businesses. Tobago, several large energy companies report
Chile has one of the most comprehensive MSME having strong relationships with MSME suppliers,
purchasing programmes in the region. The despite the lack of a formal programme.

In focus many drawbacks. Women in the informal in tourism and domestic work. On average,
Sector analysis of women’s sector, the majority of whom are domestic 48.1% of women across the 16 LAC countries
workers or street vendors, are excluded from in the ILO dataset are employed in the
employment in Latin America
the rights, responsibilities and protection services sector, regardless of whether they are
and the Caribbean of the laws that govern the formal business in the formal or informal sector. The data also
environment, and they also lack the potential indicate that as a country’s GDP per capita
for income growth. rises, more women in the non-agricultural
To understand women’s potential as Informal economic activity is, by nature, sector work in the services sector.
leaders of micro, small and medium-sized ambiguous and unstructured, making it Looking at women in the formal sector,
enterprises (MSMEs), it is important to difficult to consistently define or quantify. the services industry employs the highest
look at the role women are playing in Nonetheless, the significant number of Latin share of women on average, at 61.2%,
the economies of Latin America and the American and Caribbean women working in regardless of the country’s income. In 14 of
Caribbean (LAC). the informal sector means that an analysis of the 16 countries surveyed, trade (21.5%)
The International Labour Organisation women’s employment without the informal is the second-largest employer of women,
(ILO) collects data on employment in the sector would be incomplete. The ILO defines followed by manufacturing (12.9%),
formal and informal economy, disaggregated “informal economy” as “all economic activities transport (3.4%), and construction (0.8%).
by sex and industry, in 16 LAC countries.1 The by workers and economic units that are—in For two lower-income countries, Nicaragua
Economist Intelligence Unit has analysed law and practice—not covered or insufficiently and El Salvador, manufacturing is the
these data to provide a snapshot of female covered by formal arrangements”.3 According second-largest formal employer, while trade
employment in the region. In the 16 LAC to the ILO, economic activities are still comes third.
countries surveyed, approximately 40.1% of considered informal if they are within the law In the informal sector, a slight majority of
women on average are employed in the formal but the law is not applied or enforced, or if women work in trade, although employment
sector. Bolivian women are the most engaged the law is too cumbersome and costly to make is more evenly distributed across the
in formal employment, with 44.9% of women compliance feasible. different industries than in the formal sector.
working in formal employment, whereas The ILO data are broken down into In the informal sector, 42.5% of women
women in the Dominican Republic have the three broad categories: agricultural versus work in trade, while 40.7% work in services,
lowest representation in the workforce—just non-agricultural activities; the sub-sectors followed by manufacturing (14.8%),
34% of women are working formally. Overall, within non-agricultural activities; and self- transport (14.8%), and construction (0.4%).
the female workforce participation rate in the employment. For women working in the economies of
region is low relative to the global average, About 10% of women in Latin America and Latin America and the Caribbean, informal
but it is growing. In the past two decades the Caribbean work in agriculture.4 In 11 of self-employment—which can be used as a
the number of women in the workforce has the 16 countries captured in the ILO dataset proxy for entrepreneurship—takes place
increased by 41%. In 1990 the ratio of women these women are predominantly employed in predominantly outside the agricultural
to men in the labour force was approximately the formal sector. It is possible that informal sector. The ILO data show that of the total
48 to 100. By 2010 women matched men in access to land is difficult to obtain owing to number of women who are self-employed
the workforce at a rate of 68 to 100.2 land and property regulations, and that there in non-agricultural work, 89.8% are self-
As in many developing countries, the is greater financial advantage to be gained employed informally. This means that, on
informal sector is a significant source of from working in formalised agricultural average, only 10.2% of self-employed women
employment for women in the LAC region. systems. Large, formal companies which operate as a formal business entity. This
Informal jobs can pose fewer barriers to concentrate on large-scale output dominate proportion is highest in El Salvador, where
entry for women seeking new sources of the agricultural sector in many LAC countries. 99.6% of informally self-employed women
income, and they can be more adaptable Women not working in agriculture are work outside the agricultural sector, and
to women’s responsibilities at home. concentrated in the services sectors—often lowest in the Dominican Republic, at 73.1%.
However, informal employment also has Women’s high participation rates in informal
3 Ralf Hussmanns, “Defining and measuring informal employment”, self-employment underscore the barriers to
1 The ILO data are from national-level sources; the data years range International Labour Organisation, http://ilo.org/public/english/
from 2006 to 2009. bureau/stat/download/papers/meas.pdf entry for women who seek to operate formal
2 World Bank, Gender and Equality Data and Statistics: Latin 4 Women in Agriculture: Closing the Gender Gap for Development, MSMEs.
America and the Caribbean. Food and Agriculture Organisation, 2011.

ACCESS TO FINANCE
Access to Finance
Caribbean
12 8
Jamaica Dominican
38.2 Republic
North &
44.0
Central America
3
9 Trinidad and
Honduras Tobago
18
1 40.2 52.2
Costa Rica
Mexico
29.4
57.1 13
17 Guatemala
19 Panama 38.1
Nicaragua 31.8
28.9
10
El Salvador
39.7
15
Venezuela
33.8
South America
4
2 Peru 5
Colombia 51.0 Brazil
52.5 47.1
5
Ecuador
47.1 14 7
11 Argentina Bolivia
Chile 37.3 44.9
38.4
20 15
Paraguay Uruguay
23.4 33.8
Rank 0
Country Country
Score/100 Score
Access to
Finance score
0–20
21–40
41–60
61–80
81–100

ACCESS TO FINANCE

include:
1 Mexico 57.1
2 Colombia 52.5
3.1 General access to finance* 3 Trinidad and Tobago 52.2
3.1.1 Account used for business purposes, % 4 Peru 51.0
women* 5 Brazil 47.1
3.1.2 Loan from a financial institution in the 5 Ecuador 47.1
past year, % women* 7 Bolivia 44.9
3.1.3 Saved money at a financial institution in 8 Dominican Republic 44.0
the past year, % women* 9 Honduras 40.2
3.1.4 3+ withdrawals in a typical month, % 10 El Salvador 39.7
women* 11 Chile 38.4
3.1.5 3+ deposits in a typical month, % women* 12 Jamaica 38.2
3.2 Access to SME finance* 13 Guatemala 38.1
3.2.1 Percentage of firms with a bank loan/line 14 Argentina 37.3
of credit, % women-led SMEs* 15 Uruguay 33.8
3.2.2 Value of collateral needed for a loan for 15 Venezuela 33.8
women-led SMEs, % of loan* 17 Panama 31.8
18 Costa Rica 29.4
3.2.3 Proportion of investments financed by
19 Nicaragua 28.9
banks for women-led SMEs, %*
20 Paraguay 23.4
3.2.4 Proportion of investments financed by
equity or stock sales for women-led SMEs,
%* Overall results in Access to
3.2.5 Proportion of working capital financed by Finance
banks for women-led SMEs, %* This category measures the availability and use of
3.2.6 Proportion of working capital financed by formal financial products, primarily by female
supplier credit for women-led SMEs, %* managers of SMEs. It specifically evaluates
3.3 Access to microfinance women’s access to finance at three levels: everyday
3.3.1 Microscope on microfinance business access to banking services, access to investment or
environment working capital for SMEs, and access to
3.3.2 Female borrowers, % of total* microfinance for microenterprises. Financial
3.3.3 Female gross loan portfolio, % of gross resources enable entrepreneurs to start new
loan portfolio* enterprises and upgrade successful models more
quickly than self-funding might allow. Financial
There is a mix of gender-neutral (combined access allows entrepreneurs to take chances on
measures of both men and women) and women- new and innovative ideas they might otherwise
specific data in this category. All women-specific forgo if they had to bear the entire financial risk
data are marked with an asterisk (*) above. independently.
Access to Finance was the weakest category
overall in the index. On a scale of 0-100, where 100
equals the most favourable score, the highest-
ranking country scored 57, indicating room for
improvement across the region.

ACCESS TO FINANCE
Indicator results in Access to Jamaica leads in use of bank accounts

Finance for business
Nonetheless, individual countries offered different According to the indicator General access to
stories of success across the index. Jamaica and finance, women in Jamaica, Trinidad and Tobago,
Trinidad and Tobago led the rankings on women’s Bolivia and Mexico make the greatest use of
access to banking services. The share of Jamaican banking services in the region. More than one-fifth
women with bank accounts for business purposes of Jamaican women have a bank account for
is four times that of any other country in the business purposes. Jamaican women seem to use
index. Women in Trinidad and Tobago were the their accounts predominantly for saving: 47% of
most likely to have saved at a financial institution women reported saving money at a financial
in the past year. In Chile, 73% of women-led institution, while only 21% reported making three
MSMEs had a bank loan or line of credit. In Mexico, or more withdrawals in a month from that account.
women made up 95% of micro borrowers. Overall, Even fewer Jamaican women took out loans from a
the region performed best on access to financial institution in the past year. In contrast,
microfinance, suggesting that efforts to support women in Bolivia tend to use financial institutions
female-led microenterprises now need to expand for saving and borrowing money: Bolivia has the
so that they can continue to support women-led highest percentage of women in the region who
businesses as they grow. take out loans from financial institutions, and the
In focus services, varied across the countries in the index except Brazil, the value of
Access to Finance surveyed. The numbers reveal that women collateral women need to obtain a loan is
in Jamaica, at 22.3%, are the most likely to greater than the size of the loan. In some
Of all the factors in women’s entrepreneurial use a bank account for business purposes; cases, for example in Paraguay and Costa
success in Latin America and the Caribbean, no other country in the study came close to Rica, it is far greater, at 369% and 267% of
the WEVentureScope shows that obtaining this rate. The next-highest was Bolivia, with the value of the loan, respectively.
funding is the most difficult part of starting 5.5% of women using an account at a formal The greatest barrier is the fact that
and growing a micro, small or medium- financial institution for business purposes. women are often unable to access financing
sized enterprise (MSME). The challenge in At the lowest end of the spectrum was El beyond microcredit, particularly financing
accessing financing for women is daunting, Salvador, with just 0.2% of women accessing for investment or working capital through
and the low scores for all countries in this formal financial institutions for business. banks, equity or stock sales, or suppliers.
category stand out from the rest, indicating Overall, women entrepreneurs in Latin Within commercial financing, a line of credit
women-specific barriers that need America and the Caribbean enjoy the greatest or a bank loan is the most accessible for
attention. Even the highest-scoring country, access to microfinance—out of all financing women, while supplier credit is the most
Mexico, had an overall score of 57 for the opportunities—perhaps because they do difficult to obtain. According to the study,
Access to Finance indicator. The average not require the classical form of collateral women-owned MSMEs with a bank loan/line
score for all countries in this category was 5 involved in traditional commercial loans, of credit represent at least 50% of the total
to 20 points less than the average score for although this indicates that most women- MSMEs in eight countries, with the highest,
all other categories of indicators. owned businesses are very small with low Chile, at 73.61%, and the lowest, Venezuela,
General access to finance, an indicator growth potential. Indeed, the value of at 25.4%. The highest proportion of working
within the Access to Finance category collateral needed for a commercial loan is capital financed by suppliers to women-led
that measures access to personal banking steep in many countries. For all the countries enterprises was still only 12.5%, in Panama.

ACCESS TO FINANCE
Source of investment financing for women-led MSMEs Proportion of investments financed by banks, % of women-led MSMEs
Proportion of investments financed by equity or stock sales, % of women-led MSMEs
13.8
12.2
12.7
11.1
9.2
8.5
7.0
5.9
5.7
5.6
6.5
19.7
16.5
29.4
24.5
29.1
20.3
33.1
20.6
18.6
26.1
23.0
20.2
23.0
17.1
20.3
23.7
14.0
19.7
23.0
21.3
46.8
26.8
30.2
27.7
17.2
39.1
61.2
4.3
0
a
ia
il
ile
ica
ic
or
as
ca
ay
ru
a
do
ua
in
bi
al
gu
el
xic
ag
az
bl
liv
ud
Pe
ur
ai
gu
Ch
aR
em
na
zu
m
nt
lva
Br
ug
pu
ra
ob
m
Me
Bo
nd
Ec
ra
lo
ge
ne
Pa
ca
Ja
st
at
Ur
Re
dT
Sa
Pa
Co
Ho
Co
Ar
Ve
Ni
Gu
an
n
El
ica
ad
in
id
m
in
Do
Tr
Source: World Bank Enterprise Surveys
third- highest percentage of women who saved levels of support from banks relative to other
money at a financial institution in the past year. countries in the region. Notably, the proportion of
Mexican women who use financial services do so investments financed by banks can differ greatly
frequently—the proportion of women who make at from the proportion of working capital financed by
least three deposits or three withdrawals per the same institutions. In Ecuador, 39% of the
month is the highest in the region—but they are working capital of women-led SMEs is provided by
among the least likely (2.46% of women banks, which is the highest percentage in the
nationally) to use accounts for business purposes. region. Only 20% of women-led SMEs’ investments
At 3% nationwide, Salvadorian women are among in Ecuador are financed by banks—the eighth-
the least likely to access credit from formal lowest rate in the region.
financial institutions. The value of collateral needed for a loan can
also be a barrier for female entrepreneurs. Brazil is
Women in Colombia and Peru have the the only country in the index to require less than
greatest access to SME finance one-to-one coverage for collateral on loans to
Research has repeatedly shown that access to women-led SMEs; the coverage ratio is 75%. For
finance is one of the biggest barriers to growth other countries in the survey, coverage ratios
faced by SMEs in developing countries. According range from 129% in second-best Trinidad and
to a study by the International Finance Corporation Tobago, to 199% in Ecuador, and up to 369% in
(IFC) conducted in 2011, up to 70% of women- Paraguay—by far the highest coverage ratio in
owned SMEs in Latin America and the Caribbean Latin America and the Caribbean. The second-
were underserved or unserved financially.1 The highest coverage ratio is required in Costa Rica, at
Access to SME Finance indicators measure women- 267%. These coverage ratios determine how much
led SMEs’ access to bank credit, the amount of collateral women-led SMEs need in each country to
collateral required, and the extent to which SMEs take out a loan of a specified amount. Higher
can finance their investment and working capital coverage ratios mean that entrepreneurs have
needs externally. Colombia and Peru lead in these access to less money given the value of the
measures. In Peru, banks finance 47% of women- collateral they own, and make it more difficult for
led SMEs’ investments and 20% of their working entrepreneurs with fewer resources to access
capital; in Colombia, women enjoy similarly high sufficient credit to start a business.
The WEVentureScope evaluates the access
1 “Strengthening Access to Finance for Women-Owned SMEs in Developing
Countries”, International Finance Corporation, October 2011. women-led SMEs have to a range of financing

ACCESS TO FINANCE
mechanisms. With the exception of the indicator where they are currently less well served, such as
measuring the percentage of women-led SMEs Chile, Panama, Paraguay and Costa Rica.
with a bank loan/line of credit, the overall
assessment points to the greater need for financing Venture capital availability for women in
for these enterprises. An average of 23% of the Latin America and the Caribbean
investment of women-led SMEs is financed by Venture capital is an important engine for
banks across the region, 14% by equity or stock entrepreneurship. By allocating capital to young
sales. These trends are embedded in the firms and often uncertain markets, it promotes the
proportion of investments financed by banks and transformation of disruptive ideas into innovative
the proportion of investments financed by equity products that can create scores of new jobs.
or stock sales sub-indicators. Access to finance is a Beyond job creation, such innovation requires
crucial factor for increasing entrepreneurship. highly skilled labour that encourages country
While women-led SMEs are not entirely shut out of knowledge to diversify beyond what is needed in
the financial system, the majority of them do not low value-added activities, such as raw materials
have access to the type of financing that could spur extraction, in which emerging economies can
significant growth. become entrenched.3 Currently, natural resources
exploitation plays a significant role in the economy
Latin American countries offer strong in Latin America and the Caribbean. As with labour
microfinance opportunities skills, venture capital can be a catalyst for greater
Access to microfinance can be vital to getting first- diversification in industry towards higher value-
time entrepreneurs started. In countries with added sectors.
responsible microfinance systems, obtaining a loan The question is whether this kind of capital is
through a microfinance institution can be critical benefiting women’s businesses, which tend to
for women entrepreneurs, not only in building operate in less innovative sectors. The region’s
their business, but also in establishing a credit venture capital reached US$10.1bn in 2011, but
history that will facilitate greater financial access there are currently no data that allow estimating
in the future. On the whole, the countries in the venture capital flows to women-led businesses.
index performed better on the microfinance However, the WEVentureScope and the 2013 Latin
measures than on others in the Access to Finance American Private Equity and Venture Capital
category. Women made up a large share of micro (LAVCA) Scorecard, measuring the regulatory
borrowers in the region, with 95% and 70% of environment for private equity and venture capital
microloan users being female borrowers in Mexico in Latin America, provide interesting insights
and Guatemala, respectively. Women also make up about the experiences of women entrepreneurs in
a significant share of the gross loan portfolio of the region.
many micro lenders. In Guatemala, loans to women
make up 55% of the gross microloan portfolio. In Higher private equity and venture capital flows ratio
Colombia, they account for a 58% share of the does not necessarily translate into higher investment
portfolio, and in Mexico for 72%. Women make up financing in women-led SMEs
40% or more of the gross loan portfolio in 13 of Although some countries with high private equity
the countries in the index.2 These trends bode well (PE) and venture capital (VC) investment levels
for the growth of women-led microenterprises, (Brazil and Colombia) are among the countries
particularly if microfinance institutions expand with the largest share of equity-financed
their services to women entrepreneurs in countries investments in women-led small and medium-sized
2 Note that the percentage of female borrowers is different from the percentage of
the gross loan portfolio allocated to women. Whereas the former refers to the share 3 “Best Practices in Creating a Venture Capital Ecosystem”, Multilateral Investment
of micro borrowers that are women, the latter refers to the share of the portfolio Fund, http://services.iadb.org/mifdoc/website/publications/b8e73c67-0260-
assigned to women borrowers. 41d2-9edd-2172d323b585.pdf

ACCESS TO FINANCE
In focus demonstrates where perception meets the same group, 64% had a bank loan or
Perception vs. reality, SME reality. In certain countries, improving line of credit for their businesses. At the
access to finance for women-led SMEs may other end of the spectrum, 99% of women
access to finance not correspond to an increase in formal entrepreneurs in Panama did not find access
The World Bank Enterprise Surveys provide credit use. This gap between perception to finance to be a major constraint—yet
an interesting window into perception and reality surrounding credit financing just 27% had a bank loan or credit line for
and reality surrounding access to finance is important for policymakers to consider their businesses. In Venezuela as well, 91%
for women-led small and medium-sized when looking for ways to support women of women entrepreneurs did not consider
enterprises (SMEs). The data provide entrepreneurs. access to finance a major problem, but only
insights into the proportion of women In some countries in the WEVentureScope, 25% used bank credit for their businesses.
entrepreneurs and managers in each perception closely matches reality according The reason for such a similar gap in both
country who see access to finance as a to this measure, while other countries have Venezuela and Panama is unclear. Perhaps
major constraint in business development. much starker contrasts. In Colombia, for these discrepancies reflect women’s
Comparing these data to the proportion example, 66% of women entrepreneurs did increasing access to personal sources for
of women-led SMEs actually using a bank not list access to finance among their major financing, such as savings, and family’s and
loan or line of credit in a given country constraints to business development. In friends’ resources.
enterprises (SMEs), this is not the case in Panama. Chile, Brazil and Colombia. In other words, factors
This Central American country ranks fourth in terms such as favourable tax treatment of VC funds and
of PE and VC investment flows, yet it is among the lighter requirements for the formation and
five poorest performers in terms of the proportion operation of VC funds may account for higher rates
of investment financed by equity or stock sales in of PE and VC flows as a share of GDP. Regulation is
women-managed MSMEs. Instead, a country like most likely to exert a direct influence on the
Trinidad and Tobago, which has women-led SMEs amount of investments flows to the region, and a
with the largest proportion of equity-financed tool to alleviate VC scarcity.
investments, ranks second to last in the PE and VC In addition, even though levels of venture
investment flows as a share of GDP indicator. capital investment are low compared with the
These findings suggest areas to explore in region overall, Trinidad and Tobago has one of the
making venture capital flow to women’s top five most accommodating regulatory
businesses. First, more PE and VC investment does environments for PE and VC. At the same time, the
not automatically benefit women’s businesses, as country tops the list in terms of equity as the main
the Panama example shows when comparing the source of financing for women-led SMEs in the
LAVCA scorecard with the WEVentureScope. region. This suggests that regulation plays a role
Second, and as a complement to the former idea, not only in increasing VC availability, but also in
regulation is likely to play an important role in the allocation of these resources to women. The
increasing and allocating this type of capital fact that the difference between the number of
financing. male and female entrepreneurs is relatively low in
The countries that score best in the 2013 LAVCA Trinidad and Tobago5 reinforces the need for a
Scorecard tend to have overall higher flows of further exploration of the country’s regulatory
venture capital availability.4 This is the case for environment to account for these trends.
4 LAVCA 2013 Scorecard: The Private Equity and Venture Capital Environment in Latin 5 “Trinidad and Tobago 2010 Report”, Global Entrepreneurship Monitor, http://www.
America. gemconsortium.org/docs/download/640

CAPACITY AND SKILLS
Capacity and Skills
Caribbean
13 8
Jamaica Dominican
56.7 Republic
North &
63.0
Central America
12
9 Trinidad and
6 Honduras Tobago
7
Mexico 71.3
69.2 20
15 Guatemala
13 Panama 40.2
Nicaragua 50.9
56.7
18
El Salvador
45.5
11
Venezuela
59.0
South America 2
1 Peru 10
19 77.4 62.2
Ecuador
41.4 5 17
4 Argentina Bolivia
Chile 71.4 49.8
72.9
15
Paraguay 3
50.9 Uruguay
Rank 0 76.6
Country Country
Score/100 Score
Capacity and
Skills score
0–20
21–40
41–60
61–80
81–100

CAPACITY AND SKILLS

include: 1 Colombia 77.4
2 Peru 77.0
4.1 Microenterprise technical support* 3 Uruguay 76.6
4.2 SME technical support* 4 Chile 72.9
4.3 Business networks* 5 Argentina 71.4
4.4 Educational levels* 6 Costa Rica 71.3
4.4.1 School-life expectancy* 7 Mexico 69.2
4.4.2 Tertiary education* 8 Dominican Republic 63.0
4.4.3 Vocational programmes* 9 Honduras 62.3
4.4.4 Advanced degree programmes* 10 Brazil 62.2
4.5 Access to technology 11 Venezuela 59.0
4.5.1 Electronic payments* 12 Trinidad and Tobago 58.5
4.5.2 Internet access* =13 Jamaica 56.7
4.5.3 UN Online Services Index =13 Nicaragua 56.7
=15 Panama 50.9
There is a mix of gender-neutral (combined =15 Paraguay 50.9
17 Bolivia 49.8
measures of both men and women) and women-
18 El Salvador 45.5
specific data in this category. All women-specific
19 Ecuador 41.4
data are marked with an asterisk (*) above.
20 Guatemala 40.2
Overall results in Capacity points, reflecting the strong representation of

and Skills women in formal education and business training
This category considers the availability and courses in the region.
affordability of traditional education programmes
for women, as well as basic and advanced business Indicator results in Capacity and Skills
and financial skills training programmes. It also Colombia and Peru topped the rankings in this
evaluates education levels, as research has shown category overall, with strong performances on
that a lack of formal education impacts the growth microenterprise technical support and SME
potential for female entrepreneurs.1 Although the technical support, respectively. Ecuador and
education gap between women and men has largely Guatemala finished at the bottom of this category,
closed in Latin America and the Caribbean over the owing to nascent technical training programmes in
past decade, women are still not getting the Ecuador and low levels of formal education among
advanced training they need to start businesses in women in Guatemala.
high value-added sectors, most of which is offered Costa Rica, Paraguay and Peru offered the most
through on-the-job training.2 Access to technology comprehensive basic skills training for women
is also evaluated, to assess the ease with which entrepreneurs, and Peru was also rated highest for
women can grow their businesses. more advanced training targeted at high-growth,
Overall, the Capacity and Skills category is the dynamic women entrepreneurs and their MSMEs. A
strongest category for the region. Sixteen out of solid majority of countries demonstrated adequate
the 20 countries in the index scored more than 50 women’s access to business associations and
networking opportunities, including Nicaragua,
1 “Strengthening Access to Finance for Women-Owned SMEs in Developing
Countries”, International Finance Corporation, October 2011.
the Dominican Republic and Mexico, as captured by
2 Jennifer Powers and Barbara Magnoni, A Business to Call Her Own: Identifying, the business networks indicator.
Analyzing and Overcoming Constraints to Women’s Small Businesses in Latin America
and the Caribbean. EA Consultants, April 2010. Average school expectancy shows that the

CAPACITY AND SKILLS
number of years women spent in education was Private-sector initiatives are also instrumental in
greatest in Argentina and Uruguay. Vocational/ countries such as Honduras, where the Tegucigalpa
technical training programmes were strongest in Chamber of Commerce and Industry offers training
Colombia, Guatemala and Jamaica, while Jamaica for women owners of MSMEs, and Bolivia, where a
also joined Trinidad and Tobago with the greatest microfinance institution, ProMujer, has led
representation of women in advanced degree women’s entrepreneurship promotion.
programmes, particularly in non-traditional fields The WEVentureScope also assesses the
for women. Access to technology was greatest in availability of more advanced technical training
Chile and Brazil. programmes. Peru is the only country in the index
that scored four points, on a scale of zero to four,
Rural and urban access programmes for microenterprise technical support and SME
designed for women characterise top technical support programmes. Peru has a strong
performers presence of non-governmental organisations
All countries covered in the WEVentureScope (NGOs) and private-sector companies that provide
demonstrated at least a moderate presence of basic training specifically targeted at women, grouped
skills training for entrepreneurs. Top-ranked under an umbrella organisation to ensure co-
countries, such as Costa Rica, Uruguay and Peru, ordination and wide geographical coverage. In
extended coverage of their programmes to both Nicaragua, one of the leading national business
rural and urban areas and targeted women association has partnered with the Multilateral
entrepreneurs with specialised training and Investment Fund to create a business accelerator,
support programmes. In Costa Rica, more women and local chambers of commerce assist member
than men (57% in September 2012) participated in MSMEs in co-ordination with national
basic business skills education programmes offered organisations. Ecuador has announced plans to
by the national training agency. Women’s agencies promote linkages between start-ups and
and organisations that offer training programmes universities.
to entrepreneurs have partnered with the financial The appropriateness of targeting women in
sector to increase access to finance for women these programmes has been a topic of discussion in
entrepreneurs, an important area for improvement at least one country. In Argentina, some experts
in the country. want programmes tailored to meet women
entrepreneurs’ needs, while others claim that
Promising programmes throughout designing programmes in this way is
the region discriminatory. In both Brazil and Chile, women’s
Beyond the top performers, other countries have participation in some business training and
also developed promising programmes to train acceleration programmes is just 25% or less.
women entrepreneurs. Brazil hosts an annual Mexico’s business incubator system covers the
competition at regional and national levels to entire country, but there is no evidence that
promote female entrepreneurship. Argentina has women are specifically targeted.
training programmes for girls in secondary and
university education who are interested in Online platforms to share information with
entrepreneurship, targeting an educational and entrepreneurs
entrepreneurial attitude gap that experts from Sharing information with entrepreneurs has been a
other countries have highlighted among their own challenge for many governments and programmes.
entrepreneurs. The Dominican Republic reaches Increased Internet accessibility and greater usage
out to women via broadcasts of educational across the region have increased opportunities for
programmes and a television soap opera that one- and two-way communication with
promotes basic financial literacy for women. entrepreneurs. In Mexico, the National Institute

CAPACITY AND SKILLS
for Women operates an office with a website that women’s access to business networks in the region
serves as a clearinghouse for information about generally finds that women’s access to networks is
programmes that support women entrepreneurs not as robust as men’s, the WEVentureScope found
across the country and all levels of government. that in the majority of countries analysed women
Similarly, the Uruguay Fomenta platform operates had sufficient access to business networks,
as an online clearinghouse of both in-person and although they may still be under-represented in
online training programmes for entrepreneurs. such networks. In Colombia, where female
Although entrepreneurship programmes in many managers hold 38% of top management positions,
countries have an online presence, the strength of efforts are under way to connect local
the sites in Mexico and Uruguay is that they collect businesswomen’s networks under a national
information from various sources in a single umbrella organisation. Women in the Dominican
location for easy access by busy entrepreneurs. Republic lead major business associations that
Business networks are another important tool participate actively in policymaking discussions
for information-sharing. Although research on with the government.
In focus need—necessity-driven entrepreneurs.2 may be more likely to pursue opportunity-

Women’s participation in The relationship in developing economies, driven entrepreneurship. Countries with
however, is less clear. There is relatively little a greater proportion of female graduates
education and motivations of research on this phenomenon in developing in tertiary education also tend to have a
entrepreneurship countries. A study conducted in 2007 in higher percentage of women engaged in
Brazil suggests that level of education opportunity-driven activity. Data on female
What role does education play in influencing can be a determinant of entrepreneurial tertiary graduates are not significantly
entrepreneurship? Numerous studies success. However, the Gender Global correlated with rates of necessity-driven
have shown that education can lead to Entrepreneurship and Development Index’s entrepreneurship in the region. The data
greater female participation and greater 2013 pilot study on high-impact female also suggest that the fields of study women
entrepreneurial success.1 The impact of entrepreneurship suggests that highly embark upon may be related to motivations
education varies depending on the type of educated women in middle-income countries in entrepreneurship. The percentage of
education—financial literacy training can are less likely to be entrepreneurs at all.3 To women with degrees in social sciences,
equip an entrepreneur with the skills she lend greater insight into this question, The business and law showed the strongest
needs to open her business, while secondary Economist Intelligence Unit has analysed relationship with opportunity-driven
or tertiary education can increase self- the relationship between data on education entrepreneurial activity for women. Female
confidence, which is often associated with levels from the UN Educational, Scientific graduates in physical sciences, on the
entrepreneurial success. and Cultural Organisation (UNESCO) and other hand, registered no correlation with
Education has also been shown to entrepreneurial motivations from the Global either opportunity- or necessity-driven
differentiate the motivations of female Entrepreneurship Monitor (GEM) for eight entrepreneurial activity.
entrepreneurs in developed economies. Latin American countries (Argentina, Brazil, Nonetheless, it is important to
Highly educated women in wealthy countries Chile, Colombia, Ecuador, Guatemala, understand the results of this analysis within
tend to start businesses because they Panama and Uruguay). the context of the broader body of research
identify an opportunity—opportunity-driven The results of the EIU’s analysis on the subject. The data available for this
entrepreneurs, whereas less educated tentatively suggest that highly educated analysis only allowed for a small sample size.
women in the same countries tend to women in Latin America and the Caribbean Thus, more than anything else, the results
start businesses because of financial of this analysis point to the need for more
2 Yves Robichaud, Rolland LeBrasseur and KV Nagarajan, “Necessity
and Opportunity-driven Entrepreneurs in Canada: An Investigation in-depth research on the subject.
1 Ejaz Ghani, William Kerr and Stephen O’Connell, “What Explains
Big Gender Disparities in India? Local Industrial Structures and into their Characteristics and Appraisal of the Role of Gender”,
Female Entrepreneurship, Policy Working Paper 6228”, The World Journal of Applied Business and Economics, June 2010.
Bank, October 2012; Gender Global Entrepreneurship and 3 Gender Global Entrepreneurship and Development Index (GEDI),
Development Index (GEDI), 2013. 2013.

CAPACITY AND SKILLS
School life expectancy

16.8
16.7
15.3
14.6
14.5
14.3
14.2
14.1
14.0
14.0
13.8
12.9
12.5
12.0
12.0
12.0
11.9
11.6
11.0
10.3
a
ca
ia
or
il
ile
ru
ic
as
ica
ay
a
do
ua
in
el
bi
gu
al
xic
ag
az
bl
liv
ud
Pe
ur
ai
gu
Ch
aR
zu
na
em
m
nt
lva
ug
Br
pu
ob
ra
m
Me
Bo
nd
Ec
ra
lo
ge
ne
Pa
ca
Ja
st
at
Ur
Re
dT
Sa
Pa
Co
Ho
Co
Ar
Ve
Ni
Gu
an
n
El
ica
ad
in
id
m
in
Source: UNESCO
Do
Tr
Women under-represented in online while saving time and money. Business leaders
networks have signalled the importance of labour
productivity and school-life expectancy for
As in other parts of the world, online professional increasing economic dynamism.
networks have increased in popularity in Latin On overall educational levels, Jamaica,
America and the Caribbean. LinkedIn is one such Uruguay, Venezuela, Colombia and Argentina lead
network, but female professionals in the region use the WEVentureScope rankings. Colombia and
the site less than their male counterparts. In only Argentina are also countries where sophistication
six countries in the WEVentureScope did women among women-led MSMEs is greatest. In all of
comprise more than one-third of LinkedIn users on these countries women’s school-life expectancy
a monthly basis. The proportion of women visitors through tertiary education is 14.5 years or more,
to the site was highest in Jamaica at 36%. In and nearly 17 years in Argentina and Uruguay.
Trinidad and Tobago, Bolivia, Honduras, Ecuador Women make up 60% or more of university
and Costa Rica the proportion of female visitors graduates in Venezuela, Argentina, Panama,
was also at least one-third. In the region’s largest Uruguay, Costa Rica, Brazil and Honduras. In 15 of
economies, Brazil, Mexico and Argentina, only the 20 countries surveyed women make up at least
one-quarter of visitors to the site were women. 50% of university graduates. In several countries,
including Jamaica, Trinidad and Tobago and
Educational outcomes a key component of Mexico, women account for the majority of
entrepreneurial success postgraduate students as well.
Women’s educational outcomes influence how and Vocational/technical training programmes
when they become entrepreneurs and what level of offer women an alternative to university education.
sophistication their enterprises are likely to Colombia, Guatemala and Jamaica lead the region
achieve. Higher levels of education not only with vocational education that is widely accessible,
increase skills and business acumen, but are also targets both youths and adults and enrols men and
associated with a greater awareness of business women in similar numbers, including in non-
opportunities and career potential. Improving traditional fields of study. In Colombia, women
education helps to reduce poverty; areas with account for 55% of vocational enrolment, and in
longer school-life expectancy also enjoy higher Jamaica women’s enrolment meets or exceeds
levels of economic growth. Moreover, well- men’s enrolment in non-traditional fields such as
educated workers are vital for entrepreneurs metalwork and construction. Upper-secondary
because they increase a business’s productivity education is 85% vocational in Guatemala,

CAPACITY AND SKILLS
providing broad rural and urban access, and girls Guatemala’s experience suggests that integrating
are enrolled in higher numbers than boys. Women’s vocational education into public education systems
access to non-traditional fields is removing the is one way to increase rural access, assuming that
same barriers that discouraged some from existing public education systems reach rural
becoming entrepreneurs in the past and opens up areas. Mexico has had a similar experience.
all sectors of the economy to innovative The cost of higher education is another factor
entrepreneurs regardless of their gender. that lowered the scores of some countries in Latin
In countries where systems could be improved, America and the Caribbean. In Chile and Costa Rica,
rural access to vocational education is a challenge, observers highlighted the cost of university
and women’s enrolment in non-traditional fields education as a factor that could limit accessibility.
lags men’s enrolment. In Argentina, women’s In Chile, households pay almost 70% of university
enrolment is low overall because most programmes costs, leaving less expensive vocational education
focus on occupations that are non-traditional for as the only option for some students. Growing
women. Costa Rica, El Salvador, Ecuador, Panama enrolment demand in Costa Rica has limited
and Paraguay could increase rural access to create admission slots in more affordable public
more training opportunities for women and men. universities, pushing some students into higher-
In focus as in other parts of the world, male are technically prepared to embark on an
Women in Latin America and entrepreneurial activity exceeds that entrepreneurial activity.
of women. In order to account for this The survey also found relatively high
the Caribbean are less afraid differential, research has increasingly rates of entrepreneurial intentions among
to start businesses than focused on women entrepreneurs’ attitudes women in Latin America and the Caribbean
women in other regions as compared to those of men. The Global compared with OECD countries. Whereas
Entrepreneurship Monitor (GEM) conducts 23% of women in Latin America and the
The world has started to recognise the an annual survey to identify elements in Caribbean intend to start a business in the
impact of women-owned businesses the social and cultural environment in next three years, only 7% plan to do so in
on economic growth in developed and which entrepreneurs operate that are key OECD countries. Intention translates into
emerging economies through innovation, to influencing entrepreneurs’ attitudes and reality—the rates of nascent and established
job creation and revenue. According perceptions. The Economist Intelligence business ownership in the countries surveyed
to the Center for Women’s Business Unit has disaggregated 2009 GEM data by in the WEVentureScope are as much as ten
Research, women-owned businesses in the gender to explore the perceptions of women times higher than the OECD average.
Unites States contributed an estimated entrepreneurs in Latin America and the Latin American women are also
US$3,000bn to the economy in 2009. Caribbean. somewhat less afraid of failure than their
While small, female-owned businesses Despite many studies showing that lack of peers in OECD countries. In Latin America
play a significant role in developing skills is a barrier to women’s entrepreneurship and the Caribbean, 32% of women surveyed
economies, they contribute a much smaller in developing countries, that perception is expressed fear of failure as a constraint to
share of annual GDP than in developed not shared by many women in Latin America starting a business, compared with 37% of
countries, even though entrepreneurial and the Caribbean. In fact, almost 60% of women who expressed the same feeling in
rates are higher. A study conducted by the women surveyed believe that they have the OECD countries. However, countries in the
International Finance Corporation (IFC) right skills to start a business. This compares region where a higher number of women
showed that women-owned businesses are with 34% of women in OECD countries. Among reported being afraid of failure did not
concentrated in less profitable industries the 11 Latin American countries that form necessarily have a lower percentage of
than their male counterparts.1 part of the survey, women in Jamaica and nascent female entrepreneurs. This suggests
In Latin America and the Caribbean, Peru have the greatest confidence in their that fear of failure might not deter a woman
1 “Strengthening Access to Finance for Women-Owned SMEs in
skills for starting a business, while only 46% from starting a business, but other barriers
Developing Countries”, International Finance Corporation, of women surveyed in Brazil believe they might play a more significant role.
October 2011.

CAPACITY AND SKILLS
priced private universities that they can only afford Despite low to moderate levels of Internet
with loans. At the other end of the spectrum, access, governments have increased their online
affordability has not been a problem in Trinidad offerings through e-government initiatives.
and Tobago, where the government pays tuition Colombia, Chile, Mexico, Brazil and El Salvador lead
fees for undergraduate students and up to 50% of the region in delivering government services via
tuition for graduate students who commit to stay the Internet. E-government can increase efficiency
and work in the country. for entrepreneurs seeking to register their
businesses with a minimum of hassle and extends
Increased access to information technology the reach of government services to every region
could spur entrepreneurship with an Internet connection.
Technology enables entrepreneurs to connect more
easily with suppliers, clients and government, Adoption of new technologies lags
streamlining their business operations while also financial access
facilitating access to the latest information on Women who make electronic payments are in a
production and other trends. Internet access in minority in every country in the region, ranging
Latin America and the Caribbean has increased, but from 12.5% in Brazil at the top of the list to just
in only three countries (Trinidad and Tobago, Chile 0.6% in Bolivia and Guatemala. Even in countries
and Uruguay) do Internet users make up more than where women are likely to save at financial
50% of the population. In Central America, with institutions, such as Trinidad and Tobago (56%)
the exception of Panama and Costa Rica, Internet and Jamaica (47%), less than 7% have used
users comprise less than 20% of the population, electronic payments. In Bolivia, 43% of women
and just 11% in Nicaragua. In high- and medium- saved at a financial institution during the year and
income countries the information technology (IT) 18% took out a loan, but less than 1% had used
sector has been one of the most dynamic and electronic payment services. In a country where
entrepreneurial sectors in the economy. women head 31% of households, the low-tech
Competitive IT sectors are characterised by low financial system is a drain on time and resources
start-up costs and level playing fields, where the for women entrepreneurs. But Bolivia is not alone:
best ideas win the most users. Increasing access to access to finance has increased in the region, but
technology and education could help to develop adoption of technologies that could improve
dynamic, entrepreneurial IT sectors throughout the efficiency and further broaden access has not kept
region. pace.

SOCIAL SERVICES
Social Services
Caribbean
20 18
Jamaica Dominican
North & 30.3 Republic
41.8
Central America 15
Trinidad and
19 Tobago
3 Honduras
Costa Rica 46.7
5 41.1
Mexico 69.4
64.4 14
Guatemala
9
49.9
11 Panama
Nicaragua 60.7
57.5
17
El Salvador
44.5
10
Venezuela
57.8
South America
8
7 Peru 2
12 63.4 69.9
Ecuador
51.3
6 16
1 Argentina Bolivia
Chile 64.0 45.7
73.5
13 4
Paraguay Uruguay
Rank 0 50.0 65.9
Country Country
Score/100 Score
Social Services
score
0–20
21–40
41–60
61–80
81–100

SOCIAL SERVICES

include:
1 Chile 73.5
2 Brazil 69.9
5.1 Childcare 3 Costa Rica 69.4
5.2 Elderly care 4 Uruguay 65.9
5.2.1 Old-age dependency ratio 5 Mexico 64.4
5.2.2 Pension coverage 6 Argentina 64.0
5.3 Maternity and paternity leave 7 Colombia 63.4
5.4 Healthcare access 8 Peru 61.7
5.4.1 Government social security expenditure on 9 Panama 60.7
health 10 Venezuela 57.8
5.4.2 Maternal mortality* 11 Nicaragua 57.5
12 Ecuador 51.3
There is a mix of gender-neutral (combined 13 Paraguay 50.0
measures of both men and women) and women- 14 Guatemala 49.9
specific data in this category. All women-specific 15 Trinidad and Tobago 46.7
data are marked with an asterisk (*) above. 16 Bolivia 45.7
17 El Salvador 44.5
Overall results in Social Services 19 Honduras 41.1
20 Jamaica 30.3
The Social Services category determines the degree
to which governments have provided adequate
support for families, which is a critical enabler for
women to move beyond traditional care-giving
Indicator results in Social Services
roles to those offering greater economic Childcare in Chile and Uruguay is the most
opportunity. accessible and of the highest quality in the region.
Childcare and care for elderly family members In a majority of countries childcare options are
have traditionally been women’s responsibilities. sufficient to allow women to pursue
In countries where alternative systems for child entrepreneurial activities. Women in Brazil and
and elderly care exist, women enjoy increased Argentina spend the least amount of time in elderly
freedom to pursue entrepreneurship. Maternity care, owing to high levels of pension coverage
leave schemes that include support for despite old-age dependency ratios above the
entrepreneurs remove disincentives for regional average. Brazil and Chile provide the most
entrepreneurship among women. Paternity leave generous maternity and paternity leave schemes,
programmes allow fathers to assume parental which cover maternity and paternity leave for
responsibilities, giving mothers who are entrepreneurs as well as salaried employees. Costa
entrepreneurs more time to manage their Rica leads the healthcare access indicator ranking
businesses. with the highest social security expenditure on
The provision of social services is highest in healthcare as a percentage of general government
Brazil, Chile, Uruguay and Argentina, while spending and the third-lowest maternal mortality
Jamaica, Honduras, Trinidad and Tobago and El rate in the region. Chile’s maternal mortality rate
Salvador show the greatest need for improvement. is the lowest in Latin America and the Caribbean,
but its social security spending on healthcare lags
most other countries in the region.
In Chile and Uruguay, childcare is least likely to
present an obstacle to women entrepreneurs, while

SOCIAL SERVICES
Maternity & paternity leave scores vs. WEVentureScope overall scores

Maternity & paternity leave score
Overall score
100.0
100.0
64.8
75.0
62.4
75.0
61.8
75.0
60.2
60.0
75.0
56.8
75.0
54.6
50.0
53.9
75.0
53.6
75.0
53.3
50.0
52.3
75.0
52.2
50.0
47.7
50.0
47.7
75.0
46.6
75.0
45.6
50.0
45.5
75.0
45.5
50.0
44.3
50.0
42.2
ile
ru
ica
il
ic
or
ia
as
ay
ca
do
ua
bi
in
gu
al
el
xic
ag
az
bl
liv
Pe
ud
ur
ai
gu
Ch
aR
na
em
zu
m
nt
lva
ug
Br
pu
ob
ra
m
Me
Bo
nd
Ec
ra
lo
ge
ne
Pa
ca
Ja
st
at
Ur
Re
dT
Sa
Pa
Co
Ho
Co
Ar
Ve
Ni
Gu
an
El
ica
ad
in
id
m
in
Do
Tr
Source: WEVentureScope scores
Brazil and Argentina lead in terms of elderly care. Caribbean. Mexico and Ecuador are two examples
In seven countries childcare availability, of countries which have old-age dependency ratios
affordability or quality could limit women close to the regional average (both at 10%), but
entrepreneurs’ options. In terms of elderly care, their pension coverage is below the regional
the old-age dependency ratio is highest in average, at 25% in Mexico and 20% in Ecuador.
Uruguay and Argentina at 22% and 17%, Maternity and paternity leave systems in Brazil
respectively. However, in both countries most of and Chile qualify as the most generous in Latin
the population over the age of 65 receives pension America and the Caribbean. Systems in these
benefits—90% in Argentina and 86% in Uruguay, countries provide at least 14 weeks of maternity
according to the pension coverage sub-indicator. leave and include provisions that cover
In Brazil, too, 86% of the population over the age entrepreneurs as well as salaried employees. In
of 65 receives pension benefits, but outside these addition, paternity leave schemes increase options
three countries coverage drops, with only 57% in for working mothers and entrepreneurs. Systems in
Chile, 45% in Panama and 41% in Costa Rica Colombia, Bolivia, Mexico, Nicaragua, Panama and
receiving benefits, although these countries are Peru also scored well, but coverage for
among the most generous in Latin America and the entrepreneurs varied.

Methodology
The Women’s Entrepreneurial Venture Scope Scoring criteria and categories

(WEVentureScope) assesses the environment for
supporting and growing women’s businesses in 20 Categories and indicators have been selected on
Latin American and Caribbean countries, from the basis of expert analysis by the EIU in
microenterprises to small and medium-sized firms. consultation with the MIF and a panel of experts on
The Economist Intelligence Unit (EIU) and the economic development and women’s issues. The
Multilateral Investment Fund (MIF) have consulted goal of the experts’ meeting, which was held in
a wide range of experts in economic development September 2012, was to refine the index framework
and women’s business environment to identify and the selection of indicators, and to ensure a
factors affecting female entrepreneurs. The result transparent and robust methodology.
is a dynamic index of qualitative and quantitative To produce the overall WEVentureScope score
metrics measuring Business Operating Risks, the for each country, five category scores are
Entrepreneurial Business Environment, Access to calculated from the weighted mean of underlying
Finance, Capacity and Skills and the presence of indicators and scaled from 0-100, where 100 = the
Social Services. With 49 indicators and sub- most favourable environment for supporting
indicators, it is one of the most detailed women’s businesses. The categories and indicators
benchmarking studies undertaken by the EIU. are as follows:
We have created eight new qualitative measures
for this index to assess previously unmeasured 1. Business Operating Risks
aspects of the business environment that support 1.1 Macroeconomic risk
the participation of women, such as access to 1.2 Security risk
business networks and the quality and availability 1.3 Vulnerability to corruption
of tertiary education programmes for women. We
have also filtered and normalised existing data sets 2. Entrepreneurial Business Environment
to gain new insights into the business environment 2.1 Property rights
for women. Our goal in producing this index is to 2.2 Costs of doing business
stimulate dialogue and promote research into 2.3 Business sophistication
women’s entrepreneurial advancement. 2.4 Supporting regulation
2.5 Supplier-diversity initiatives
2.6 Female-headed households

3. Access to Finance Country selection

3.1 General access to finance
3.2 Access to SME finance The 20 countries in the index were selected by the
3.3 Access to microfinance EIU in consultation with the MIF. The goal was to
include a wide selection of countries in the region,
4. Capacity and Skills on the understanding that serious data limitations
4.1 Microenterprise technical support would make it impossible to include many smaller
4.2 SME technical support and less-developed economies. Haiti has been
4.3 Business networks included in the model but not scored owing to
4.4 Educational levels limited data availability.
4.5 Access to technology
1. Argentina
5. Social Services 2. Bolivia
5.1 Childcare 3. Brazil
5.2 Elderly care 4. Chile
5.3 Maternity and paternity leave 5. Colombia
5.4 Healthcare access 6. Costa Rica
7. Dominican Republic
Please see the Appendix for indicator definitions. 8. Ecuador
9. El Salvador
Data for the quantitative indicators are drawn from 10. Guatemala
national and international statistical sources. 11. Honduras
Where quantitative or survey data were missing 12. Jamaica
values, the EIU has provided estimates. We have 13. Mexico
also created qualitative indicators based on 14. Nicaragua
interviews conducted in-country as well as reports 15. Panama
and surveys from national governments and 16. Paraguay
international organisations, taking into account 17. Peru
relevant data where available. 18. Trinidad and Tobago
The main quantitative sources used in the 19. Uruguay
WEVentureScope are the EIU; the World Bank 20. Venezuela
Group; the Economic Commission for Latin America
and the Caribbean; the UN Educational, Scientific
and Cultural Organisation; the Global
Entrepreneurship Monitor; the World Health
Organisation; the International Labour
Organisation, and national statistical offices.

Data modelling Calculating the WEVentureScope

Indicator scores are normalised and then Once the values are normalised for each indicator,
aggregated across categories to enable a they are aggregated into an overall score, which is
comparison of broader concepts across countries. calculated as the unweighted average of the
Normalisation rebases the raw indicator data to a normalised scores for each of the indicators. The 20
common unit so that they can be aggregated. The countries assessed can then be ranked according to
indicators where a higher value indicates a more these indices. The benchmarking model also
favourable environment for women provides the option for users to create alternative
entrepreneurs—such as the percentage of female weighting profiles according to individual policy
tertiary-school graduates or the prevalence of priorities. Changing the weightings for an
women with bank accounts—have been normalised individual category or indicator increases or
on the basis of: decreases the emphasis for that metric, causing the
countries to be re-ranked based on their respective
x = (x - Min(x)) / (Max(x) - Min(x)) strengths in the adjusted areas.
where Min(x) and Max(x) are, respectively, the

lowest and highest values in the 20 economies for
any given indicator. The normalised value is then
transformed from a 0-1 value to a 0-100 score to
make it directly comparable with other indicators.
This in effect means that the country with the
highest raw data value will score 100, while the
lowest will score 0.
For the indicators where a high value indicates
an unfavourable environment for women
entrepreneurs—such as the value of collateral
needed for a loan or macroeconomic risk—the
normalisation function takes the form of:
x = (x - Max(x)) / (Max(x) - Min(x))
where Min(x) and Max(x) are, respectively, the

lowest and highest values in the 20 economies for
any given indicator. The normalised value is then
transformed into a positive number on a scale of
0-100 to make it directly comparable with other
indicators.

Country
profiles
Argentina 40
Bolivia 42
Brazil 44
Chile 46
Colombia 48
Costa Rica 50
Dominican Republic 52
Ecuador 54
El Salvador 56
Guatemala 58
Honduras 60
Jamaica 62
Mexico 64
Nicaragua 66
Panama 68
Paraguay 70
Peru 72
Trinidad and Tobago 74
Uruguay 76
Venezuela 78

COUNTRY PROFILES
Argentina
Overall score: Overall rank: Real GDP (PPP US$ Population (m): % of firms with a Global Competitiveness
at 2005 prices):* female top manager: Index rank:
54.6 7 667.3 41.7 9.4 94/144
Category All-country average
Business operating risks 45.0 56.7
Macroeconomic Risk 25.0 61.3
Security Risk 75.3 54.9
Vulnerability to corruption 34.6 54.0
Entrepreneurial business environment 55.5 49.5
Property rights 100.0 76.3
Costs of doing business 49.3 67.9
Business sophistication 72.9 48.4
Supporting regulation 60.0 46.0
Supplier-diversity initiatives 37.5 30.6
Female headed households 13.3 27.7
Access to finance 37.3 40.4
General access to finance 30.9 35.9
Access to SME finance 37.9 45.6
Access to microfinance 42.9 39.8
Capacity and skills 71.4 60.6
Microenterprise technical support 75.0 67.5
SME technical support 50.0 53.8
Business networks 100.0 80.0
Educational levels 75.5 58.9
Access to technology 56.3 43.1
Social services 64.0 55.5
Childcare 75.0 68.8
Elderly care 67.9 54.6
Maternity and paternity leave 44.4 46.1
Healthcare 68.7 52.4
* EIU estimate for 2013

COUNTRY PROFILES
San Miguelde Resistencia

de Tucuman
Cordoba
Rosario
Buenos Aires
Bahia Blanca
Argentina strong, and the country ranks in the

top three for childcare, elderly care,
Argentina ranks seventh out of 20 pension coverage and healthcare. These
countries in the overall environment services give women more time and resources to
for female entrepreneurs. Social pursue entrepreneurial activities.
Services, Capacity and Skills training The main risk faced by businesses operating in
and the Entrepreneurial Business Argentina—both men’s and women’s—is
Environment provide favourable macroeconomic risk. High inflation, the result of
fundamentals for women managing micro and expansionary fiscal and monetary policy, has led to
small and medium-sized enterprises (MSMEs). sustained real appreciation of the local currency
Macroeconomic risk and perceived vulnerability to and an erosion of the current-account surplus in
corruption continue to challenge entrepreneurs— recent years. The deterioration of the balance of
Argentina is ranked second-to-last in both payments has in turn produced peso devaluation
categories. pressures. Foreign-exchange and import controls
Women benefit from various attributes that imposed to reduce pressure on the currency and
favour entrepreneurial activity. Property rights, the foreign reserves have impacted negatively on
which account for the default marital property economic activity. Vulnerability to corruption is
regime and joint titling, give equal treatment to also a challenge for entrepreneurs, as 60% of
men and women in the eyes of the law, facilitating MSMEs managers see corruption as a constraint for
women’s entitlement to own assets. Business doing business. The country ranks 19th out of 20
networks for women are well established. In countries in Latin America and the Caribbean for
education, women’s enrolment in advanced degree the overall costs of doing business, which include
programmes has increased significantly over the the fees associated with starting a business, the
past few years, and Argentina ranks first in the availability of credit information and the total tax
region for school-life expectancy. In 2009 women rate and contract enforcement. According to the
accounted for 59% of total enrolment in tertiary World Bank, the total tax rate (including labour
programmes, according to the UN Educational, contributions) for businesses in Argentina was
Scientific and Cultural Organisation (UNESCO). 108% in 2012, which acts as a deterrent to
Social services for women in Argentina are also entrepreneurship.

COUNTRY PROFILES
Bolivia
47.7 13 50.2 10.4 27.6 104/144
Macroeconomic risk 65.0 61.3
Security risk 50.2 54.9
Childcare 50.0 68.8

COUNTRY PROFILES
La Paz
Santa Cruze
de la Sierra
Bolivia Uruguay, where over half the population is

connected to the Internet. Supporting regulation
Bolivia is tied for 13th place out of 20 countries for to ensure access to procurement opportunities
the overall environment for female entrepreneurs. could also be improved. Policies are in place
High business operating risks and low access to prioritising the selection of MSMEs for government
technology are the biggest challenges facing contracts of a certain size, but implementation has
women managing micro, small and medium-sized so far been ineffectual because many of these
enterprises (MSMEs). Perceived vulnerability to businesses operate informally. There are no co-
corruption is a key area of concern. A series of ordinated supplier-diversity initiatives in the
reform efforts launched in the 1990s has improved private sector.
the efficiency of some bureaucratic processes, but Taking into account the default marital property
many institutions still suffer from weak regime and joint titling, Bolivia scores favourably
accountability, cronyism and red tape. for women’s property rights. This is considered an
Female entrepreneurs in Bolivia report a greater important finding, because regulation enhancing
bribery prevalence than their regional women’s rights over assets facilitates their access
counterparts. Security risks are also an area where to finance. Although education levels are not high,
there is room for improvement. Although managers women’s enrolment is similar to men’s in
regard crime as only a moderate obstacle for vocational and advanced degree programmes.
MSMEs and challenges such as terrorism, Financial assistance is available to low-income
kidnapping and violent crime are still relatively students, and there are specialised and
rare in Bolivia, security costs for firms are the indigenous-focused universities which receive
second-highest in the region. public funds. Women also have access to basic
Access to technology to streamline business skills training through numerous private- and
operations is also a challenge for female public-sector initiatives. These programmes have a
entrepreneurs. This is especially relevant in the wide geographical reach through Bolivia’s
area of electronic payments, where Bolivia has the extensive microfinance network, although many do
lowest share of women making use of this not specifically target women. Still, the prevalence
mechanism. Internet access lags much of the of a few microfinance institutions specifically
region, with only 30% Internet usage. This targeting women provides robust resources for
compares with Trinidad and Tobago, Chile and microenterprises and gender-based training.

COUNTRY PROFILES
Brazil
53.3 10 2103.0 196.5 18.4 48/144
Childcare 75.0 68.8

COUNTRY PROFILES
Salvador
Brazilia
Rio de Janeiro
Brazil sector, which has embarked on several

initiatives to foster women’s
Brazil ranks tenth out of 20 countries for entrepreneurship. In addition, Brazil
the overall environment for women scores reasonably well in tertiary education.
entrepreneurs. High Business Operating Risks are According to the UN Educational, Scientific and
the biggest challenges facing women in business. Cultural Organisation (UNESCO), 60.8% of tertiary
However, women in Brazil benefit from a wide graduates are women.
access to and availability of Social Services. The Brazil has room for improvement in some areas.
country ranks among the best in the Access to Vulnerability to corruption is a concern. Despite
Finance category. recent reforms seeking to address the problem,
Brazil excels in several aspects. Female 70% of MSMEs included in the study see corruption
entrepreneurs receive good support through social is a major constraint for their business. To a lesser
services, such as elderly care and childcare, extent, security risk remains an issue, as it acts as a
allowing for more time availability. Access to deterrent to starting a business. Crime perception
finance for micro, small and medium-sized is greater among MSMEs managers in Brazil than in
enterprises (MSMEs) is particularly good. A large any other country in the index. Despite successful
percentage of women-led SMEs in the country is endeavours to address hyperinflation during the
able to obtain loans from banks and finance 1990s, price levels remain a concern, as
investments through the same institutions or expectations have come adrift from the 4.5%
equity. In terms of Capacity and Skills training, central target. This poses a challenge to
women entrepreneurs benefit from technical entrepreneurial activity. The low prevalence of
support through government entities such as the supplier-diversity initiatives is also a concern.
Serviço Brasileiro de Apoio às Micro e Pequenas Although both the public and the private sector are
Empresas( Sebrae) and the Serviço Nacional de involved in the few initiatives that are present,
Aprendizagem Industrial (Senai), although these their implementation is reportedly poor. There are
programmes do not specifically target women. This very few programmes that specifically target
is an effort also complemented by the private women entrepreneurs.

COUNTRY PROFILES
Chile
64.8 1 291.0 17.6 12.8 33/144
Childcare 100.0 68.8

COUNTRY PROFILES
Antofagasta
Santiago
in Chile, making the country the most

Chile
favourable in the region for this indicator.
Chile tops the index for offering female MSMEs, in particular, qualify for a more
entrepreneurs the most favourable overall flexible process of starting a business
business environment. Chile ranks among the top and a simplified tax regime, thereby
four in four out of the five categories of the index, facilitating their establishment and
coming first for its low Business Operating Risk, operation.
highly supportive Entrepreneurial Business Widespread use of the Internet strengthens
Environment and adequate provision of Social entrepreneurs’ access to online resources. This
Services. Robust economic fundamentals, along extends to online business networks: Chile has the
with political and institutional stability, encourage largest number of LinkedIn users as a percentage
investor confidence and micro, small and medium- of the total population of any country in the
sized enterprise (MSME) activity. Sound public region. Moreover, high access to technology
finances and strong fiscal savings put Chile in a increases the ability of MSMEs to streamline
good position to face possible global shocks, while business operations through mechanisms such as
strong links to China offset tepid growth in US and electronic payments.
European markets. Wage pressures from tight Certain features of Chile’s Social Services
labour markets suggest the risk of inflation framework provide key support to female
acceleration, but this is limited by sound monetary entrepreneurs. Women have easy access to
policy. childcare, either through their extended family or
Security risk in Chile is among the lowest in the high-quality professional services, although the
region, with employment gains in recent years costs of these services may be prohibitive.
precluding any unexpected rise in crime and Maternity benefits are generous, with public funds
violence. Strong institutional traditions mean that available to female entrepreneurs who take
public officials are generally held accountable for maternity leave. Women’s general Access to
their actions, and resignations by high-profile Finance is the only identifiable area for
officials in recent years have demonstrated the low improvement, with relatively low rates of women
level of tolerance towards suspicions of corruption using accounts at formal financial institutions for
or irregularities. Bribery is uncommon as a result, savings and loans. In addition, less than 50% of
and managers report a weak perception of microloan borrowers are women and the female
corruption vis-à-vis other countries in the region. loan gross portfolio remains low, with only 34.2%
Low corporate taxes and mandatory contributions of the portfolio of the microfinance institutions in
significantly drive down the costs of doing business the region allocated to women’s loans.

COUNTRY PROFILES
Colombia
61.8 3 454.7 48.8 25 69/144
Childcare 75.0 68.8

COUNTRY PROFILES
Barranquilla
Cartagena
Medellin
Bogotá
Cali
WEVentureScope ranked Colombia

Colombia
second-to-last in contract enforcement
Colombia ranks third out of 20 countries for the with a score of 10.8 out of 100. Another
overall environment for female entrepreneurs. category where Colombia needs to make
Relatively low Business Operating Risks, easy improvements is the use of financial products, as it
Access to Finance, wide availability of business placed in the bottom third for women with a bank
networks for women operating micro, small and account at a formal institution who make three or
medium-sized enterprises (MSMEs) and high levels more withdrawals and deposits in a typical month,
of education are advantages that benefit women based on data from the World Bank’s Global Findex.
entrepreneurs. There is, however, room for Women managers of MSMEs enjoy wide access to
improvement in other areas. The cost of doing business organisations. In fact, Women’s World
business in Colombia is higher than average, which Banking, a microfinance network, has a strong
places the country in tenth position in the presence in Colombia and promotes networks for
Entrepreneurial Business Environment category. women entrepreneurs. In addition, education and
Colombia also scores relatively poorly in indicators Capacity and Skills training at all levels are
of usage of financial services. particularly strong. In 2003 Colombia passed
From a macroeconomic perspective, the legislation to institutionalise the obligation to
government has focused on improving the business offer technical, organisational and management
environment and attracting foreign direct support to MSMEs belonging to women in all
investment in infrastructure, mining and the regions of the country, both urban and rural.
hydrocarbons industry. Another major focus of Today, programmes that target women and offer
economic policy is the promotion of more inclusive basic skills as well as sophisticated training are
growth and formal job creation. In December 2012 moderately available in both urban and rural areas.
Congress approved a long-awaited tax reform, INNpulsa Mipymes is a government programme
which is expected to reduce the overall cost of which provides both financing and training to
doing business. This tax reform should help MSMEs to promote modernisation and innovation.
entrepreneurs and business managers, since the Women entrepreneurs also receive strong support
high business costs are currently driven by taxes through Social Services, particularly for childcare
and delays in contract enforcement. In fact, the and maternity and paternity leave.

COUNTRY PROFILES
Costa Rica
56.8 6 54.0 4.9 16.5 57/144
Childcare 75.0 68.8

COUNTRY PROFILES
San Jose
finance investments. In addition, women represent

Costa Rica
only 40.8% of the microfinance portfolio, the
Costa Rica ranks sixth out of 20 countries for the lowest proportion in the region, and Costa Rica
overall environment for female entrepreneurs. ranks last in terms of the share of portfolio
Capacity and Skills training is available to business allocated to women borrowers. This contrasts,
women in areas such as financial literacy and however, with the great technical support available
bookkeeping. In the Access to Finance category to women running MSMEs in the country.
Costa Rica ranks 18th in the region, as overall Although on a macroeconomic level the Costa
access to finance for female business owners and Rican economy has demonstrated moderate
managers can present a major obstacle. resilience in the face of the global economic crisis,
Perception of corruption and bribery is relatively with growth averaging around 4.5% every year
low, and so is the perception of crime, theft and since 2009, the risk of macroeconomic instability
disorder as a major constraint to micro, small and remains relatively high owing to the country’s
medium-sized enterprises (MSMEs). This places vulnerability to external shocks, given its small size
Costa Rica in the top 30% for the lowest business and openness.
operating risks for entrepreneurs. Costa Rican MSMEs are essential to Costa Rica’s growth,
women also have some Social Services since they account for approximately 70% of GDP,
infrastructure to support them. The availability of according to the World Bank.1 Although there is
childcare and healthcare access are good. In comprehensive regulation supporting the creation
addition, business networks and basic skills and growth of MSMEs, gender differentiation and
training programmes are widely available and microenterprise support could be improved.
target women. Implementation of supplier-diversity programmes
The largest obstacle for women in business, in the public sector is poor; there is as yet no
according to this study, is Access to Finance. Costa register of SME suppliers, and the only one
Rica is among the countries demanding the highest currently available is not disaggregated by
collateral for women entrepreneurs, and women- company size or gender.
led enterprises find little support in banks to
1 http://www1.ifc.org/wps/wcm/connect/Industry_EXT_Content/IFC_External_
Corporate_Site/Industries/Financial+Markets/msme+finance/sme+banking/
msme-countryindicators

COUNTRY PROFILES
Dominican Republic
52.3 11 105.2 9.8 19.9 105/144
Childcare 50.0 68.8

COUNTRY PROFILES
Santo Domingo
purchases (for which informal SMEs do not qualify),

Dominican Republic
there are no quota distinctions based on gender.
The Dominican Republic is ranked 11th in terms of The second obstacle is women’s limited use of
its overall business environment for female financial services, such as money withdrawals.
entrepreneurs among 20 countries in the region. However, it must be noted that female SME owners
The country benefits from a variety of enablers for do relatively well in the Access to Finance category
women’s entrepreneurship. Women, who account and have moderate access to microfinance, as
for over 50% of the labour force and benefit from banks and co-operatives cover over 70% of the
equal property rights, have a strong presence in market, with non-governmental organisations
the business sector. In fact, in 2010 a total of (NGOs) attending to the remainder. A third
48.2% of firms had female owners, and 19.9% challenge for women entrepreneurs is access to
reported having a woman in their top management. Social Services. Government spending on health
Furthermore, women enjoy full access to and are services and social security is low. Indeed,
well represented in business networks, with one of maternal mortality in the Dominican Republic is
the highest scores in the region. Women among the highest in the region
entrepreneurs also benefit from the relatively low Other areas in need of improvement include
costs of doing business, and in the categories of regulation and institutional transparency. In terms
depth of credit and contract enforcement the of supporting regulation for the creation and
Dominican Republic scores much higher than its growth of micro and small and medium-sized
Caribbean neighbours. A range of microenterprise enterprises (MSMEs), the Dominican Republic has a
technical support programmes targeted at women, comprehensive regulatory framework, although it
such as basic financial management skills and lacks a formal dispute resolution procedure specific
vocational traditional training, is also available. to SME loans and a bankruptcy law, which often
Two of the biggest challenges faced by female results in long delays in resolving legal battles. In
managers are insufficient public-sector supplier addition, institutional weakness slows the process
initiatives and limited usage of financial services. of implementing new laws and undermines the
The first obstacle is mainly attributable to a high efficiency of the public sector, which ultimately
level of informality in the sector,1 which means impacts the entrepreneurial environment for
that the majority of small and medium-sized women. The country ranks among the lowest in the
enterprises (SMEs) are ineligible to participate in region in terms of perceptions of corruption, as
procurement processes. Although the law more than 60% of MSMEs in the Dominican
mandates a quota for SMEs for all public-sector Republic perceive corruption as a constraint for
doing business.
1 Mario Davalos and Marina Ortiz, President and Executive Director, Fondo para el
Financiamiento de la Microempresa, Inc (FondoMicro). 11/12/2012.

COUNTRY PROFILES
Ecuador
52.2 12 135.2 15.1 22.8 86/144
Childcare 75.0 68.8

COUNTRY PROFILES
Quinto Canton
Guayaquil
enrolment in programmes that have traditionally

Ecuador
been dominated by men, such as agriculture, law
Ecuador ranks 12th out of 20 countries for the and medicine. However, while women make up
overall environment for female entrepreneurs. more than half of all graduates from tertiary
Poor scores for technical assistance, maternity and education programmes, their enrolment is still
paternity leave and access to technology are the below that of men in non-traditional disciplines
biggest challenges facing women managing micro such as engineering, manufacturing and
and small and medium-sized enterprises (MSMEs). construction, according to data from the UN
Ecuador scores well for enforcement of property Educational, Scientific and Cultural Organisation
rights and macroeconomic risk. This reflects strong (UNESCO) for 2007 and 2008.
economic growth over recent years (real GDP Ecuador ranks poorly in the provision of
growth was 8% in 2011 and 4.8% in 2012), while technical support for MSMEs—most technical
dollarisation in 2000 has helped to ease the training is provided by non-governmental groups.
hyperinflation problems of the past. As well as However, the availability of these programmes is
reducing macroeconomic risks, this has not consistent across the country, and many are
contributed to bringing down the costs of doing inaccessible for more remote rural communities.
business, another category in which Ecuador scores Furthermore, unlike training programmes in other
well. counties in the region, they do not specifically
Experts on the operating environment for target women. A lack of supplier-diversity initiatives
female entrepreneurs in Ecuador see regulations by the private sector to promote MSMEs is another
supporting the creation and growth of MSMEs as area in which Ecuador has room for improvement,
being comprehensive, with both small and although it does have programmes in place for
medium-sized enterprises legally defined under the public bodies to include MSMEs in their
country’s 2010 Production Code. The current procurement processes. Finally, access to
government has made progress in broadening technology is challenging. The ability of the
access to both vocational programmes and government to provide services online and women’s
advanced degree programmes. Courses at public usage of electronic payments, both of which are
universities are free, and female enrolment has essential to reduce transaction costs, remain
grown over the past decade. This has also included aspects that Ecuador will need to improve.

COUNTRY PROFILES
El Salvador
45.5 17 39.1 6.3 20.5 101/144
Childcare 50.0 68.8

COUNTRY PROFILES
San Salvador
A major challenge for all small entrepreneurs is

El Salvador
the fact that El Salvador does not yet have
El Salvador ranks 17th out of 20 for the overall legislation in place to define, support and promote
environment for female entrepreneurs and second MSMEs. The National Commission for MSMEs was
for its Entrepreneurial Business Environment for created in 1996; however, legislation has stalled,
women. In the categories of Capacity and Skills, and the overall perception of government policies
Social Services and Business Operating Risks, it is towards MSME development is negative owing to
among the worst performers in the business excessive bureaucracy and the high cost of
environment for women. Access to Finance is administrative procedures. Although the National
average for the region, with El Salvador ranked Council for MSMEs (Conampyme) has put forward a
tenth in this category. law to assist these firms, the bill has yet to be
From a macroeconomic perspective, the approved by Congress.1 General Access to Finance
Economist Intelligence Unit forecasts that El for women entrepreneurs and managers is low, and
Salvador will have the slowest pace of GDP growth El Salvador ranks second to last in this category.
in Central America in 2013-17, reflecting a very Despite the lack of a legislative framework for
weak local production and investment base, which MSMEs, El Salvador ranks second for the
limits domestic demand and leads to a persistently Entrepreneurial Business Environment for women.
negative foreign balance. Despite this, Relatively strong property rights, a low total tax
macroeconomic risk is relatively low, as El Salvador rate and better than average business
is ranked seventh in this indicator. Security risk sophistication contribute to the strength of this
remains a concern, and El Salvador is ranked last in indicator. However, contract enforcement and
this category. Managers of micro, small and supplier-diversity initiatives are weak and require
medium-sized enterprises (MSMEs) identify crime improvement. The availability of social services
as a constraint to conducting business, with varies; women have moderate access to healthcare,
security costs accounting for the highest share of but there is little support for elderly care and
profits among MSMEs in the region. maternity/paternity leave.
1 http://www.conamype.gob.sv/index.php/novedades/noticias/1115-2013-05-06-
21-06-58

COUNTRY PROFILES
Guatemala
45.6 16 114.7 15.5 19.8 83/144
Childcare 75.0 68.8

COUNTRY PROFILES
Guatemala
graduates, 75% were women, the highest

Guatemala
percentage in Latin America and the Caribbean.
Guatemala ranks 16th out of 20 countries surveyed Guatemala has room for improvement in various
for the overall environment for female areas. Although regulation for micro, small and
entrepreneurs. Business Operating Risks and medium-sized enterprises (MSMEs) exists, it does
Access to Finance for women in business are about not meet certain basic standards, such as
average for the region. Capacity and Skills and the differentiated taxes and an effective bankruptcy
Entrepreneurial Business Environment are weak. In system. Beyond this lack of basic legislation for
addition, there is room for improvement regarding MSMEs, a greater problem in Guatemala is the high
the availability of Social Services. cost of doing business. Entrepreneurs are at a huge
From a macroeconomic perspective, the risk of disadvantage because starting a business can be
instability is relatively low. Demographics play a very expensive, and the time it takes to enforce a
major role, as Guatemala has the largest contract is the longest in the region. Even if an
population in Central America and the youngest entrepreneur can overcome these hurdles, MSME
population in all of Latin America, with promotion is weak. Supplier-diversity programmes,
approximately 50% aged 19 or below. In 2009 which can stimulate MSME growth, have not yet
(latest available data) small and medium-sized gained much traction in the country. The risks
enterprises (SMEs) accounted for 40% of GDP and attached to starting and growing a business—for
85% of employment, according to the Guatemalan both men and women—are high.
Federation of Small and Medium Enterprises. In Guatemala also has room for improvement in
addition, women entrepreneurs benefit from other areas that support the promotion of female
adequate property rights regulation and childcare entrepreneurship. General Access to Finance needs
support. to be strengthened, as Guatemalan women have
The Ministry of Economy offers basic business low rates of savings at financial institutions. Access
development services to SMEs via 11 regional to technology is weak: Guatemala has one of the
centres. Between 2008 and 2010 some 30,000 lowest Internet penetration rates, and women tend
entrepreneurs took advantage of these services, not to use electronic payments. Maternity and
and 58% of these were women. Also, according to paternity leave is another aspect that needs to be
the UN Educational, Scientific and Cultural addressed to ensure that women have the time and
Organisation (UNESCO), in 2007 some 50% of all the means to embark on entrepreneurial activities
tertiary graduates were women. Of science without compromising their family needs.

COUNTRY PROFILES
Honduras
47.7 13 29.2 8.1 27.7 90/144
Childcare 50.0 68.8

COUNTRY PROFILES
Tegucigalpa
specifies that 30% of government purchases should

Honduras
be awarded to small and medium-sized enterprises
Honduras ranks 13th out of 20 countries for the (SMEs), but that goal does not yet appear to have
overall environment for female entrepreneurs. been met. Corruption and old business
Generally, women in business face high operating relationships prevent the entrance of new players
risks in an environment that is not conducive to such as MSMEs. Almost 12% of MSMEs with a
entrepreneurial endeavours, given lack of access to female top manager reported that they believed
quality Social Services, while Access to Finance is other firms gave gifts to officials in order to get
difficult to secure. Opportunities to acquire things done, one of the highest percentages in the
Capacity and Skills are good, and Honduras has its region.
highest ranking—ninth place—in this category. According to a study by the Inter-American
Women entrepreneurs benefit from sufficient Development Bank (IDB), in 2011 there were more
access to business networks. Technical support for than 950,000 microenterprises in Honduras, and
micro, small and medium-sized enterprises 60% of these were in rural areas. Thousands of
(MSMEs) is another area where Honduras performs MSMEs open and close every year; most of these are
significantly well. Women have access to financial microenterprises in the subsistence economy.
literacy and basic skills programmes specifically According to the sub-secretary for MSMEs, the most
targeted at them, as well as business training common reasons why these businesses fail are lack
programmes offered by the Chamber of Commerce of business development support, low access to
of Tegucigalpa. The Entrepreneurial Business affordable finance and difficulties accessing
Environment in Honduras also benefits from low markets, given the country’s poor infrastructure and
risks of macroeconomic instability. frequent weather disruptions. The results of this
There is, however, room for improvement in study also suggest that in order to level the playing
some other areas. The country’s framework for field for female entrepreneurs, several additional
MSME promotion is only five years old and lacks factors must be addressed. Specific areas include the
comprehensive legislation governing creditor following: a) property rights should be equal
protection, dispute settlement and differential tax between men and women; b) training programmes
systems. The 2008 MSME law specifically mentions for women should include more sophisticated
that strengthening gender equality is a main goal, concepts and promote access to technology; and c)
but it is not clear whether implementation of this the government should try to improve support for
law has occurred or been monitored. The law also maternity and paternity leave.

COUNTRY PROFILES
Jamaica
42.2 20 11.6 2.7 22.7 97/144
Childcare 50.0 68.8

COUNTRY PROFILES
Kingston
concern, as it damages investor confidence.

Jamaica
Domestic demand is forecast to remain feeble,
Jamaica has few formal institutions or programmes owing to tax increases and government austerity
to support micro, small and medium-sized measures mandated under a new, recently
enterprises (MSMEs). Although women enjoy approved four-year IMF loan programme, and GDP
strong business networks and benefit from growth is expected to be a minimal 0.2% in 2013.
effective vocational programmes, Jamaica ranks SME technical support is available to the public,
last for the overall environment for female but not at the tertiary or managerial level.
entrepreneurs. Social Services, the Entrepreneurial Moreover, the lack of supporting regulations
Business Environment and high Business Operating compounds the challenges facing women managing
Risks are among the areas with the greatest need MSMEs in Jamaica. Female entrepreneurs receive
for improvement. Access to Finance and the poor support from social services, particularly
availability of Capacity and Skills training also rank where paternity and maternity leave and elderly
below average. care are concerned. A large proportion of
Women in Jamaica benefit from a wide access to households are headed by women, creating a high
business networks. Several organisations, such as burden of care, with assistance more likely to be
WEConnect and Women Business Owners, provide provided by the extended family than by formal
network opportunities and support to women childcare. Low levels of government spending on
entrepreneurs. Women in Jamaica also benefit healthcare mean that a significant burden of
from moderate levels of education, with women healthcare costs also falls on women, constraining
accounting for 56% of tertiary graduates. School- their ability to save money.
life expectancy is among the top five in the region. Access to Finance is another challenge for
Vocational and advanced degree programmes are female entrepreneurs. The lack of credit availability
highly prevalent in the island, with women’s often makes it difficult for MSMEs to expand.
enrolment exceeding that of men. Jamaica does not have a formal dispute resolution
Nevertheless, Jamaica is among the poorest process specific to SME loans, and firms often face
performers in the macroeconomic risk category. long delays in resolving legal battles, which deters
The government’s weak fiscal situation remains a potential loan providers.

COUNTRY PROFILES
Mexico
60.2 4 1573.0 116.2 24.5 53/144
Childcare 75.0 68.8

COUNTRY PROFILES
Mexico City
to business networks compared with other Latin

Mexico
American countries. For example, the online
Mexico ranks fourth out of 20 countries for the network Mujer Emprende offers news, networking
overall environment for women entrepreneurs. opportunities and training materials to 2,000
Access to Finance and the Entrepreneurial Business women. Mexican women also achieve relatively
Environment are the main challenges faced by good educational levels and have access to a
micro, small and medium-sized enterprises substantial number of skills training and technical
(MSMEs). However, women in Mexico benefit from support programmes. However, many of these do
good Capacity and Skills training and Social not specifically target women, and those that do
Services. offer only basic skills and financial literacy
Despite ranking first in the category Access to programmes, most of them in urban areas.
Finance, women find access to SME finance Start-up and operating costs do not represent a
particularly difficult. Credit remains low as a share significant barrier to female entrepreneurs.
of GDP, and anecdotal evidence suggests that Microfinance services and products, in particular,
MSMEs have difficulty gaining access to credit. are available to women, who comprise more than
Women entrepreneurs’ usage of formal financial 90% of borrowers from microfinance institutions.
institutions for business purposes is relatively low, Additionally, the government offers relatively
as is the number of women who have obtained a robust social services in Mexico compared with
loan from a financial institution. Women other regions, although the services are often only
entrepreneurs in Mexico also face relatively low available in cities and in practice not always
levels of business sophistication, hindering the available to women, even though they may be
growth potential of their businesses. under the law.
Women entrepreneurs enjoy reasonable access

COUNTRY PROFILES
Nicaragua
46.6 15 20.6 7.1 31.9 108/144
Childcare 75.0 68.8

COUNTRY PROFILES
Managua
Nicaragua growth, as many small enterprises

lack a website or email. Although the
Although small and medium-sized enterprises government has highlighted the importance of
(SMEs) play a significant role in Nicaragua’s women’s participation in SMEs, existing government
economy, accounting for 40% of GDP and 70% of programmes still lack a focus on women’s needs as
employment, the country ranks 15th out of 20 for entrepreneurs and business owners.
the overall environment for female entrepreneurs. Nicaragua performs better in Business Operating
Poor Access to Finance and a weak Entrepreneurial Risks and access to Social Services for women
Business Environment are the main challenges entrepreneurs. Low macroeconomic risk, aided by
facing female managers. Nicaragua scores last strong export growth, rising domestic demand and
overall on general Access to Finance, with women moderate inflation, has created an environment
facing particular difficulties obtaining SME loans. hospitable to entrepreneurs. Security risks,
Poor depth of credit information and conservative however, remain a concern. Even though Nicaragua
lending practices by Nicaragua’s small banking has the lowest crime rate of any Central American
system make scaling up a micro or small business country, micro, small and medium-sized
difficult and prevent faster economic expansion. enterprises (MSMEs) continue to invest a fair
Weak creditor protection also discourages lending, amount of resources in protection from theft, and
as Nicaragua’s bankruptcy system does not ensure MSMEs’ perception of crime is among the worst in
equitable treatment of creditors or reliable the region. Despite a low performance in other
methods for recovering debt. corruption perception indices, vulnerability to
Female entrepreneurs also identify heavy tax corruption and bribery is not a major concern for
rates as a burden on business growth, although a MSME managers.
new tax reform law is currently under consideration Nicaraguan women’s access to business
that would differentiate tax rates for SMEs networks has improved, with new business
depending on income level. Equality of property networks focusing on female entrepreneurs,
ownership rights is also a challenge for Nicaraguan including in rural areas. Social Services are also
women, as access to legal protection may be available to provide support for female
arbitrary and subject to political or corrupt influence entrepreneurs, particularly with regard to
peddling. The effective protection of property rights maternity leave, childcare and elderly care.
has a poor track record, but is generally improving. Compared with neighbouring countries in Central
Low female education levels and poor access to America, women in Nicaragua have been more
technology constitute significant barriers to successful in obtaining leadership positions, with a
Capacity and Skills development for Nicaraguan high percentage of women owning firms or
women. Furthermore, female business managers cite occupying top management positions, while others
poor business sophistication as an obstacle to act as legislators or senior officials.

COUNTRY PROFILES
Panama
53.6 9 69.0 3.9 26.2 40/144
Childcare 75.0 68.8

COUNTRY PROFILES
Panama
in the top six for childcare, elderly care and

Panama
maternity and paternity leave.
Panama ranks ninth out of 20 countries for the Female entrepreneurs in Panama face challenges
overall environment for female entrepreneurs. in accessing finance. According to the World Bank’s
Female entrepreneurs and managers of micro and Enterprise Surveys databank, MSMEs with a female
small and medium-sized enterprises (MSMEs) face top manager represent a very low proportion of the
low Business Operating Risks and have good access bank-financed portfolio in the country. Access to
to Social Services. However, Access to Finance is microfinance for women is also very low, as Panama
low, supplier-diversity programmes remain scarce ranks 17th in the region with less than 50% of
in the public sector, and Capacity and Skills women accounting for microloan borrowers.
training does not reach a wide segment of women. Women entrepreneurs also face difficulties in
From a macroeconomic perspective, the main learning the necessary business skills to become
policy focus in Panama, according to the effective leaders. Although educational levels are
Economist Intelligence Unit, will be on high and 56.8% of university degree holders are
accelerating the upgrade of the country’s women, female presence is low at high levels of
transport and logistics infrastructure, in order to business. One reason may be that although Panama
capitalise on Panama’s location and develop it into has basic and sophisticated training skills
a regional logistical hub. Opportunities exist in programmes, they do not specifically target
financial services, logistics, telecommunications, women. Formal business networking opportunities
retail and tourism. Women entrepreneurs face few are also limited, as women have only moderate
obstacles in doing business, since MSME access to business organisations, whose influential
legislation is solid and the cost of doing business boards have considerably more male than female
is low. The legislative framework includes a members. Finally, Panama has room for
guarantee fund that provides financing and improvement in the realm of supplier-diversity
technical assistance. Women business owners in programmes, where implementation is poor.
Panama also benefit from low macroeconomic risks Although these programmes exist in the private
and low vulnerability to corruption. Social Services sector, there is no evidence of such programmes
available to women are plenty, and Panama ranks specifically targeting women.

COUNTRY PROFILES
Paraguay
44.3 19 38.9 6.8 20.9 116/144
Childcare 50.0 68.8

COUNTRY PROFILES
Asunción
entrepreneurial activities. Micro, small and

Paraguay
medium-sized enterprises (MSMEs) see corruption
Paraguay ranks 19th out of 20 countries for the as a moderate obstacle, and 8% of those included
overall environment for female entrepreneurs. in the study reported the need of paying bribes to
Women in Paraguay benefit from regulations that accomplish their companies’ goals. Although the
support their property rights, moderate costs of total tax rate remains low, which facilitates
doing business, and significant microenterprise starting and growing a business, tax collection in
technical support. The total tax rate for operating a Paraguay is low, with tax revenue accounting for
business remains relatively low compared with just 12% of GDP in 2011. This limits capacity for
other countries in the region. In addition, there expenditure on human capital and infrastructure,
are several public and private programmes and helps explain Paraguay’s relatively poor
supporting the development of female educational indicators, including women’s school-
entrepreneurs’ skills in the country, both in urban life expectancy and low level of fixed investment.
and rural areas. Efforts have been focused on There is room for improvement in some areas.
money management and financial literacy. For example, female enrolment in vocational
Paraguay’s economy is characterised by a large programmes is limited. Overall, the presence of
informal sector with thousands of women in business networks and business
microenterprises and urban street vendors. As a organisations is poor too, as demonstrated by the
small, open economy largely dependent on a small representation of women on the boards of the main
number of commodities to drive growth, Paraguay business associations in Paraguay. Access to
remains exposed to external and to weather- Finance is another area that needs to be improved,
related shocks. Although the public finances since Paraguay is in the bottom three in the region
remain sound and public indebtedness low, for women’s general Access to Finance and SME
inflation and GDP growth rates have both been finance and microfinance. Finally, access to
volatile in recent years, reflecting the impact of technology is significantly low, with only 23% of
drought on agricultural production and prices. the population having Internet access.
This poses significant challenges to

COUNTRY PROFILES
Peru
62.4 2 299.9 31.2 17.3 61/144
Childcare 75.0 68.8

COUNTRY PROFILES
Lima
enterprises (SMEs) to provide 40% of

Peru
state purchases. The efficacy of the
Peru ranks second out of 20 countries for the quota system, however, remains unclear.
overall environment for female entrepreneurs. The The perception of crime among MSMEs is also
availability of Capacity and Skills training for relatively low compared with the rest of the region,
women in Peru is the second-best in the region. although anecdotal evidence suggests that gender-
Access to Finance and the overall Entrepreneurial based violence may still be a challenge for women
Business Environment are also among the best in entrepreneurs. Women leading MSMEs see
the region for women. Although Social Services corruption as a moderate obstacle, and more than
and Business Operating Risks may present the regional average report paying bribes to
moderate challenges to women in business, Peru accomplish their goals.
still manages to rank above average for the region Although women in Peru have access to
in these categories. business networks and training programmes that
From a macroeconomic perspective, Peru ranks focus on developing both basic and sophisticated
among the countries with the lowest risk of business skills, research into these programmes
instability, reflecting the country’s strong has found that there are an insufficient number
performance in recent years. A 2010 study by available. In addition, according to business
Harvard University found that micro, small and development experts, high growth rates in non-
medium-sized enterprises (MSMEs) comprised 98% traditional sectors such as construction and
of all businesses in Peru, and that women owned logistics have attracted women workers in the past
and operated over 40% of them. Collectively, these years. Access to Finance is high, especially for SME
MSMEs generate approximately half of Peru’s GDP. financing, as Peruvian banks have aggressively
Peru has a regulatory framework that supports the targeted SME clients. Social Services for women
creation and growth of MSMEs, but it does not are also good compared with the rest of the
specifically address gender issues. The public region, and Peru ranks above average for the
sector supports MSMEs with a quota system that availability and affordability of childcare and
makes it mandatory for small and medium-sized healthcare services.

COUNTRY PROFILES
Trinidad and Tobago
53.9 8 18.1 1.4 32.4 89/144
Childcare 50.0 68.8

COUNTRY PROFILES
Port of
Spain
report the need to pay bribes to public officials to

Trinidad and Tobago
“get things done” than in other countries included
Trinidad and Tobago ranks eighth out of 20 in the survey.
countries for the overall environment for female Access to Finance is not generally a challenge
entrepreneurs. High Business Operating Risks, a for female entrepreneurs, and provisions for
weak Entrepreneurial Business Environment and dispute settlement and market access do exist for
poor Social Services are the biggest challenges women-owned businesses; however, the regulatory
facing women managers of micro and small and environment is lacking, particularly with regard to
medium-sized enterprises (MSMEs). protection for creditors and the creation of a
Despite its energy-based economy, Trinidad and differential tax system.
Tobago scores tenth overall for macroeconomic risk Female entrepreneurs in Trinidad and Tobago
owing to weaknesses in the non-energy sector and struggle with poor Social Services, particularly
relatively high inflation, which places upward where healthcare and elderly care are concerned.
pressure on wages and discourages small business Although maternity leave benefits are generally on
expansion. The volatile external environment has a par with other countries in the region, good
also impacted economic growth in recent years as quality and affordable childcare can be difficult to
demand—particularly from other Caribbean find, as the sector is unregulated by the state.
countries—for Trinidad’s manufacturing exports has Education levels are high—Trinidad and Tobago
fallen. In addition, weak domestic demand, still ties with Jamaica as the country with the highest
lingering in the wake of the 2009 recession, makes female enrolment in advanced degree
scaling up a micro or small business difficult. programmes—and women are strongly represented
Female entrepreneurs face challenges in finding in non-traditional degree programmes, including
SME technical support. Sophisticated skills training agriculture, sciences, business, law and
programmes are minimally present in the island engineering. Women who do not pursue higher
and they do not target women. This is starting to education, which is fully subsidised by the
change, however, with the government’s recently government, have access to non-traditional skills
launched national Integrated Business Incubator training programmes, but the majority of them
System. Property rights is another area in need of continue to receive training in traditional
improvement, as it does not provide enough vocations such as hairdressing, housekeeping and
protection for women’s assets. Women food preparation, where available. Programmes are
entrepreneurs view corruption as a major mainly concentrated in urban centres and do not
challenge, although fewer top female managers of specifically target women, unlike training
microenterprises and SMEs in Trinidad and Tobago programmes in other countries in the region.

COUNTRY PROFILES
Uruguay
60.0 5 48.9 3.4 24.1 74/144
Childcare 100.0 68.8

COUNTRY PROFILES
Montevideo
the region, and the country ranks in the top six for
Uruguay
perception of bribery.
Uruguay ranks fifth out of 20 countries for the There is, however, room for improvement in
overall environment for female entrepreneurs. some areas. Legislation for MSMEs at a national
According to a study by the Ministry of Industry, level exists, but does not yet offer meaningful
Energy and Mining, in 2012 approximately 40% of incentives such as tax benefits or strong subsidies
micro, small and medium-sized enterprises on social benefit payments. Supplier-diversity
(MSMEs) belonged to women. Capacity and Skills initiatives are virtually non-existent, especially in
training and Social Services targeting women are the public sector. Accessing finance, particularly
among the best in the region. The business microfinance, presents further challenges to
environment is good, with female business owners female entrepreneurs. While education levels are
facing very low operating risks. However, Access to high and training is widely available, business
Finance for women is very low. sophistication among female business managers is
Economic policymaking is supportive of business low. Only 7% of female-led businesses have an
in Uruguay, combining prudent macroeconomic internationally recognised quality certification.
policy with an emphasis on social development and Since Uruguay is a relatively small and urban
a generally welcoming environment for country, there are few formal business networks.
investment. Inflation is the main economic policy However, the main network, Organización de
challenge in the country. Long-term inflationary Mujeres Emprendadoras del Uruguay (OMEU),
expectations remain well above target, and amid a provides many opportunities for women to meet
very high level of wage indexation inflation will and make business connections. Tertiary education
come down only very gradually, hurting is free and female enrolment, which was 64.1% in
competitiveness and the development of MSMEs. 2010, is in the top five in the region. Spending on
According to the Economist Intelligence Unit, the Social Services in Uruguay is high, and the
government will continue to support businesses availability of childcare services and high spending
with prudent macroeconomic policies and a on health as part of social security favours an
generally open environment for investment. entrepreneurship culture that addresses women’s
Vulnerability to corruption is low. Corruption needs. However, elderly care and maternity/
perception among MSMEs is among the lowest of paternity leave lag the regional average.

COUNTRY PROFILES
Venezuela
45.5 17 349.4 30.0 26.3 126/144
Childcare 75.0 68.8

COUNTRY PROFILES
Caracas
Access to Finance is also a challenge for female

Venezuela
entrepreneurs. Women have trouble obtaining
Venezuela ranks 17th out of 20 countries for the loans, partly owing to poor protection for
overall environment for female entrepreneurs. creditors. The lack of credit availability often makes
High Business Operating Risks and poor Access to it difficult for small enterprises to expand.
Finance are the biggest challenges facing women Venezuela does not have a formal dispute-
managing micro, small and medium-sized resolution process specifically geared to loans
enterprises (MSMEs). Venezuela comes last overall extended to MSMEs, and these firms often face long
in the macroeconomic risk category, as exchange- delays in resolving legal battles, deterring
rate and price distortions continue to fuel high potential loan providers.
inflation and capital flight, placing upward Venezuela’s female entrepreneurs receive much
pressure on wages and capital inputs. These factors better support from Social Services, particularly
act as deterrents to entrepreneurship at all levels. with regard to support for elderly care. Venezuela
Massive fiscal imbalances are also causing has a relatively youthful population, creating a
pressure on Venezuela’s economy and are requiring comparatively low burden of care, which often falls
the government to take corrective measures. on females. Education levels are high—Venezuela
Although the government managed to bring has the highest percentage of female tertiary
inflation down in 2012, to an annual average of graduates in the region—but opportunities for
21%, it has risen sharply in the first few months of vocational training are reportedly low. Women
2013 and will remain very high into the medium have access to basic skills training through a
term. In addition, weak domestic demand, still national network of programmes under the
lingering from the 2009 recession, makes scaling umbrella of the Ecosistema Nacional de
up an MSME difficult. Although female business Emprendimiento. However, these programmes are
managers see corruption as a significant obstacle, mainly concentrated in urban centres and do not
far fewer of them report needing to pay bribes to specifically target women, unlike training
accomplish their goals than other women programmes in other countries in the region.
entrepreneurs in the region.

Appendix: Sources and definitions
Indicators Definition Sources
1.0 Business Operating Risks

1.1 Macroeconomic risk Measures macroeconomic stability based on exchange-rate volatility, EIU, Risk Briefing
recession risk, price instability and interest rate volatility. Without a
relatively stable, well-functioning economy, all entrepreneurs, including
women, will have few opportunities to start or expand businesses. This is
a qualitative indicator, scored on a 0-100 scale, based on the EIU’s
forecast of economic performance during the next two years.
1.2 Security risk Measures the cost and perception of crime as a barrier to business. High World Bank,
security risk can deter both external investors and entrepreneurs. It can Enterprise Surveys
1.2.1 Average security costs,
lead to a loss in financial commitments and a decreased willingness to
% of MSME revenue
start a business.
1.2.2 Crime perception,
This is a composite indicator, comprised of two sub-indicators:
% of MSMEs
● Average annual security cost for MSMEs, calculated as a percentage
of annual sales (of firms paying for security)
● Percentage of MSMEs identifying crime, theft and disorder as a major
constraint
Each of these sub-indicators has been normalized across countries, on a
scale of 0-100, and combined and weighted to produce a single
indicator score.
1.3 Vulnerability to corruption Measures the perception of the presence of corruption and the World Bank,
perception of it as a barrier to business. Corruption by public officials Enterprise Surveys
1.3.1 Perception of bribery
can raise costs and risks, along with reducing operational efficiency,
prevalence, % of MSMEs
when conducting business.
1.3.2 Corruption perception, % of
MSMEs
● Percentage of MSMEs which expect that firms similar to theirs are
making informal payments or giving gifts to public officials “to get
things done” regarding customs, taxes, licences, regulations or
other services
● Percentage of MSMEs identifying corruption as a major constraint
indicator score.
Where the quantitative or

survey data have missing
values, the Economist
Intelligence Unit has
estimated the scores.

2.0 Entrepreneurial Business Environment

2.1 Property rights Measures equality of ownership rights over property by law and in World Bank, Women,
practice. Property can be an important source of collateral for women Business and the
2.1.1 Default marital property
seeking loans. Law database
regime
2.1.2 Joint titling
Default marital property regime: Measures the extent to which women
are granted property rights under the country’s default material
property regime.
The rating is an average of the following three measures:
● What is the default marital property regime?
● Who legally administers the joint marital property?
● Who is entitled to the ownership of the marital home in the case of a
dissolution of marriage?
Joint-titling: Measures the extent to which joint titling exists for assets
acquired during the course of marriage.
● For property acquired during the course of a marriage, is there a legal
presumption of joint ownership between husband and wife?
● Does joint titling of major assets exist for married couples?
A 0-1 scoring system was used for these binary sub-indicators; a score of
1 was assigned to sub-indicators where the outcome is generally
favourable to equality for women and a 0 where it is not. The scores were
then combined to form a single indicator score.
2.2 Costs of doing business Measures the costs of doing business. Higher start-up and operating World Bank,
costs discourage entrepreneurs from embarking on new business Doing Business
2.2.1 Starting a business
initiatives and investing in business growth.
2.2.2 Depth of credit
This is a composite indicator, comprised of four sub-indicators:
2.2.3 Total tax rate
● Starting a business: Qualitative ranking of the cost of starting a
2.2.4 Contract enforcement business in 185 countries. This measure captures the overall score in
the Starting a Business category of the World Bank’s Doing Business
index. Records all procedures officially required, or commonly done
in practice, for an entrepreneur to start up and formally operate an
industrial or commercial business, as well as the time and cost to
complete them and the paid-in minimum capital requirement.
● Depth of credit: Qualitative ranking of the depth of credit
information available on a scale of 0-6, where 6=most information
available. This measure captures the scores for one indicator in the
Getting Credit category of the World Bank’s Doing Business index.
The depth of credit information index measures rules and practices
affecting the coverage, scope and accessibility of credit information
available through either a public credit registry or a private credit
bureau.
● Total tax rate: Assessment of the total taxes and mandatory
contributions owed in the second year of operating a business,
expressed as a percentage of commercial profit. This measure
captures the scores for one indicator within the Paying Taxes
category of the World Bank’s Doing Business index.
● Contract enforcement: Number of days required for contract
enforcement, counted from the day the plaintiff files a complaint in
court until the day of payment. This measure captures the scores for
one indicator within the Enforcing Contracts category of the World
Bank’s Doing Business index.
indicator score.


2.3 Business sophistication Measures the level of business sophistication. The level of business World Bank,
sophistication increases the growth potential of a business. Business Enterprise Surveys
2.3.1 International quality
sophistication and innovation also have important spillover effects and
certification, % of women-led
signal the growth of formal enterprises. It is an input here since it also
MSMEs
represents, in this format, another aspect of the general business
2.3.2 Audits, % of women-led environment in which women entrepreneurs operate.
MSMEs
2.3.3 Firms with website, % of
● Percentage of MSMEs that have a female top manager and have
women-led MSMEs
internationally recognised quality certification
2.3.4 Firms using email, % of
● Percentage of MSMEs that have a female top manager and have an
women-led MSMEs
annual financial statement reviewed by an external auditor. Filtered
by the EIU to create a sex-disaggregated dataset
● Percentage of MSMEs that have a female top manager and have a
company website
● Percentage of MSMEs that have a female top manager and use email
to communicate with clients/suppliers
indicator score.
2.4 Supporting regulation Qualitative assessment of the degree to which the regulatory EIU qualitative
environment facilitates the creation and growth of MSMEs. It assesses assessment based
whether existing regulation incorporates a legal definition of MSMEs as on government
well as provisions related to the promotion of i) protection for creditors; reports and
ii) dispute settlements and/or arbitration; iii) access to markets; iv) a websites, legal texts
dedicated agency responsible for MSME growth; and v) differential and World Bank
taxation system. regulatory
assessments
The scoring scale is as follows:
0= The country has no regulation supporting the creation and growth of
MSMEs.
1= The country has draft legislation that is currently being formulated to
facilitate the creation and growth of MSMEs.
2= The country has regulation supporting MSMEs. However, the
regulation is not comprehensive.
3= The country has regulation supporting the creation and growth of
MSMEs that addresses the elements specified above.
4= The country has clear and comprehensive regulation supporting the
creation and growth of MSMEs that includes all the elements mentioned
above.
An additional point is awarded if regulation explicitly considers MSMEs
that are owned by women.
2.5 Supplier-diversity initiatives Measures the ability of women’s businesses to access government and EIU qualitative
private-sector procurement opportunities. assessment based
2.5.1 Supplier-diversity initiatives,
on interviews,
public sector This is a composite indicator, made up of two sub-indicators:
government
2.5.2 Supplier-diversity initiatives, ● Measures the degree to which the government and non-profit websites, company
private sector organisations have generally implemented policies that foster websites and legal
supplier diversity based on gender and/or size of business texts
● Measures the degree to which corporations have generally
implemented policies that foster supplier diversity based on gender
and/or size of business
0= Supplier-diversity programmes do not exist.
1= Supplier-diversity programmes exist, but actual implementation is
poor.
2= Supplier-diversity programmes based on size of business are common.
3= Supplier-diversity programmes based on gender are common.
4= Supplier-diversity programmes based on size of business and gender
are highly prevalent.


Other scoring considerations:
Have government and corporations set goals and accountability reports
on a yearly basis? Has the government sponsored studies to determine
in which sectors/industries women businesses are under-represented
and the degree to which they are under-represented? Have corporations
and government agencies engaged in outreach mechanisms to find
women business owners?
2.6 Female-headed households Total households where a woman is the main breadwinner in urban Economic
areas. This includes extended family households, two-person Commission for
households and single-parent households. Latin America and
the Caribbean
3.0 Access to Finance

3.1 General access to finance Measures the extent to which women access formal financial institutions World Bank, Global
through loans, as well as savings and checking accounts. Financial Inclusion
3.1.1 Account used for business
Database
purposes, % women This is a composite indicator, comprised of five sub-indicators:
3.1.2 Loan from a financial ● Account used for business purposes, % women: Percentage of
institution in the past year, % women who reportedly used an account at a formal institution for
women both business and personal purposes
3.1.3 Saved money at a financial ● Loan from a financial institution in the past year, % women:
institution in the past year, % Percentage of women who reported receiving a loan from a bank,
women credit union, microfinance institution, or another financial
institution such as a co-operative in the past year
3.1.4 3+ withdrawals in a typical
month, % women ● Saved money at a financial institution in the past year, % women:
Percentage of women who reported saving money at a bank, credit
3.1.5 3+ deposits in a typical
union, microfinance institution, or another financial institution such
month, % women
as a co-operative in the past year
● 3+ withdrawals in a typical month, % women: Percentage of women
who have an account at a formal financial institution and who
withdrew money three or more times in a typical month
● 3+ deposits in a typical month, % women: Percentage of women who
have an account at a formal financial institution and made three or
more deposits in a typical month
3.2 Access to SME finance Measures the extent to which women managers of SMEs report access to World Bank,
formal financial institutions through loans as well as savings and Enterprise Surveys
3.2.1 Percentage of firms with a
checking accounts.
bank loan/line of credit, %
women-led SMEs This is a composite indicator, comprised of six sub-indicators:
3.2.2 Value of collateral needed for ● Percentage of SMEs that have a female top manager and have a bank
a loan for women-led SMEs, loan/line of credit
% of loan
● Value for collateral needed for a loan (% of loan), for SMEs with a
3.2.3 Proportion of investments female top manager
financed by banks for women-
● Proportion of investments financed by banks (%), for SMEs with a
led SMEs, %
female top manager
3.2.4 Proportion of investments
● Proportion of investments financed by equity or stock sales (%), for
financed by equity or stock
MSMEs reported with a female top manager
sales for women-led SMEs, %
● Proportion of working capital financed by banks (%), for SMEs with a
3.2.5 Proportion of working capital
female top manager
financed by banks for women-
led SMEs, % ● Proportion of working capital financed by supplier of credit (%), for
SMEs with a female top manager
3.2.6 Proportion of working capital
financed by supplier credit for
women-led SMEs, %


3.3 Access to microfinance Measures the ease of access and use of microfinance services and EIU, Global
products. Microscope on the
3.3.1 Microscope on microfinance
Microfinance
business environment This is a composite indicator, comprised of three sub-indicators:
Business
3.3.2 Female borrowers, % of total ● Overall country score on EIU Microscope on the Microfinance Environment
Business Environment Index 2012
3.3.3 Female gross loan portfolio, Microfinance
% of gross loan portfolio ● Female borrowers from microfinance institutions as a percentage of Information
total micro borrowers Exchange
● Female gross loan portfolio from microfinance institutions as a
percentage of total gross loan portfolio
4.0 Capacity and Skills

4.1 Microenterprise technical Measures the existence of public- and private-sector initiatives that EIU qualitative
support support the development of women entrepreneurs through basic skills assessment based
training, which includes general financial literacy, bookkeeping, registry on information from
of contacts and recordkeeping, self-esteem etc. business
organisations and
interviews
0= No evidence of basic training programmes or financial literacy
programmes.
1= Financial literacy and/or basic skills training programmes are
minimally present and do not target women.
2= Financial literacy and/or basic skills training programmes are only
moderately present and do not generally target women.
3= Financial literacy programmes and basic skills training programmes
are targeted at women and are moderately present in either urban or
rural areas.
4= Financial literacy programmes and basic skills training initiatives are
highly prevalent and specifically targeted at women in both urban and
rural areas.
4.2 SME technical support Measures the prevalence of initiatives from the public and private sector EIU qualitative
that support the development of women entrepreneurs through assessment based
technical training targeted at high-growth, dynamic entrepreneurs. on information from
Sophisticated training includes training on business development, business
strategic planning, mentoring and networking. organisations and
interviews
0= No evidence of training programmes.
1= Sophisticated skills training programmes are minimally present and
do not target women.
2= Sophisticated skills training programmes are only moderately present
and do not generally target women.
3= Sophisticated skills training programmes are targeted at women and
are moderately present in either urban or rural areas.
4= Sophisticated skills training initiatives are highly prevalent and
specifically targeted at women in both urban and rural areas.
4.3 Business networks Measures the prevalence of women’s business associations, women’s EIU qualitative
presence in general business networks, and access to networking assessment based
opportunities that promote access to information. on business
organisations
websites and
0= There is a minimal presence of women’s business organisations and/ interviews
or networking opportunities.
1= Women have moderate access to business organisations and
networking opportunities. However, women’s business organisations
are not formally established or networking events are minimally
attended.
2= Women have sufficient access to business organisations that include
networking opportunities through such avenues as business
conferences.


Other scoring considerations:
What is the presence of LinkedIn users relative to other Latin American
and Caribbean countries? Do women have a fair representation in
general business networks such as chambers of commerce? Do women’s
business associations exist? If so, do they have a website? Do they
organise events? Does the government or non-profit sector organise
business conferences? Is it easy to find information on these events? Are
these events well attended? Do these events take place only in urban
areas?
4.4 Educational levels Measures the duration, quality and availability of schooling accessible to UN Educational,
women. Higher levels of education not only increase skills and business Scientific and
4.4.1 School-life expectancy
acumen, but are also associated with a greater awareness of business Cultural
4.4.2 Tertiary education opportunities and career potential. Organisation
4.4.3 Vocational programmes (UNESCO)
4.4.4 Advanced degree ● The average years of schooling a female student enrolled in primary
programmes through tertiary education can expect to receive
● Percentage of tertiary graduates that are female
● Measures the availability of and women’s enrolment in vocational
programmes that provide technical skills to enter specific trades (i.e.
engineering, accounting, nursing). This indicator gives more weight
to vocational programmes that supply women with skills needed to
enter non-traditional fields (i.e. manufacturing, construction,
technology)
● Measures the availability and women’s enrolment in general
advanced degree programmes. It also considers the presence of and
women’s enrolment in non-traditional advanced degree
programmes. Examples of non-traditional degree programmes
include: agriculture, sciences, social science/business/law, and
engineering/manufacturing/construction.
The scoring scales are as follows:
0= Advanced degree programmes are rare.
1= Few advanced degree programmes exist, and those that do exist are
minimally attended by women.
2 = Advanced degree programmes are common only in urban areas or are
unaffordable. Women’s enrolment is limited.
3= Advanced degree programmes are common and easily accessible.
Women’s enrolment is similar to men’s enrolment.
4= Advanced degree programmes are highly prevalent and women’s
enrolment is equivalent to men’s enrolment (including in non-
traditional educational programmes).
0= Vocational programmes are rare.
1= Few vocational programmes exist and those that do exist are
minimally attended by women.
2 = Vocational programmes are common only in urban areas and
women’s enrolment is limited.
3= Vocational programmes are common and easily accessible. Women’s
enrolment is similar to men’s enrolment.
4= Vocational programmes are highly prevalent and target both youths
and adults. Women’s enrolment is equivalent to men’s enrolment
(including non-traditional vocational programmes).
Each of these sub-indicators was normalized across countries, on a scale
of 0-100, and combined weighted to produce a single indicator score.


4.5 Access to technology Measures the availability and use of technology in order to increase World Bank, Gender
connectivity and streamline business operations. Equality database;
4.5.1 Electronic payments
Global Financial
This is a composite indicator, comprised of three sub-indicators:
4.5.2 Internet access Inclusion database
● Percentage of women who used electronic payments to make
4.5.3 UN Online Services Index International
payments
Telecommunication
● Number of Internet users per 100 people Union
● Measures the ability of governments to provide online services UN Public
delivery through e-government initiatives, information and Administration
communication technologies applications Network
Each of these sub-indicators was normalized across countries, on a scale
of 0-100, and combined weighted to produce a single indicator score.
5.0 Social Services

5.1 Childcare Considers the availability, affordability (including the price of childcare EIU qualitative
as a percentage of average wages) and quality of childcare services. The assessment
scoring is as follows:
0= Professional childcare is expensive, available for only a small
minority and of low quality; or the extended family is unwilling to
provide childcare, owing to strong and widely prevalent societal/
cultural barriers to women working.
1= Professional childcare has two of the three following conditions: it is
expensive, difficult to obtain or of low quality; or the extended family is
generally unwilling to provide childcare, owing to societal/cultural
barriers to women working. The extended family may find it difficult to
provide childcare if they themselves work or owing to distance.
2= Professional childcare is moderately affordable, often available and
of reasonable quality; or the extended family is willing to provide
childcare but may be able to do so only occasionally because they
themselves work, or owing to distance.
3= Professional childcare meets two of the three following conditions: it
is affordable, easily available and of a high quality; or the extended
family is willing to provide childcare and is able to do so only with some
difficulty.
4= Professional childcare is affordable, easily and widely available and
of a high quality; or the extended family is willing and able to provide
childcare.
5.2 Elderly care Qualitative evaluation, through proxies to understand how much time World Bank
women may devote to elderly care. Development
5.2.1 Old-age dependency ratio
Indicators
5.2.2 Pension coverage
International
● Old-age dependency ratio
Labour
● Percentage of the elderly receiving pension benefits Organisation,
Each of these sub-indicators was normalized across countries, on a scale Pension Coverage in
of 0-100, and combined weighted to produce a single indicator score. Latin America
5.3 Maternity and paternity leave Assesses the length of maternity and paternity leave and maternity EIU assessment
benefits coverage. While this indicator most directly affects women based on documents
employees, it also signals general attitudes towards incentivising from the
women in the workplace. The scoring is as follows: International
Labour
0= No paid maternity leave (regardless of length of maternity leave).
Organisation, Social
1= Employer-funded benefits (regardless of length of maternity leave). Security Online and
2= Mixed systems (contributions from both employers and public funds) the McGill Institute
and less than 14 weeks maternity leave. for Health & Social
Policy
3= Mixed systems (contributions from both employers and public funds)
and at least 14 weeks maternity leave; or less than 14 weeks maternity
leave, with maternity leave benefits covered by social insurance or
public funds.


4= At least 14 weeks maternity leave, with maternity leave benefits
covered by social insurance or public funds.
Countries score bonus points if they have schemes in place for
entrepreneurs. That is, if countries have mixed systems for
entrepreneurs, an additional 1 point is added to the scoring system
above. If they have public funding of maternity leave for entrepreneurs
(social insurance or public funds) an additional 2 points are added to
the scoring system above.
Countries will score 1 to 3 additional bonus points if the government
mandates paternity leave. The scoring is as follows:
0= No paid leave
1= Less than 2 weeks
2= 2-13 weeks
3= 14-51 weeks
The maximum score a country can receive is 9, where 9= most
favourable.
5.4 Healthcare access Considers the extent to which the population can affordably access World Health
healthcare Organisation
5.4.1 Government social security
expenditure on health Sub-indicators include:
5.4.2 Maternal mortality ● Level of social security funds expressed as a percentage of general
government expenditure on health. It considers health expenditure
by government social security schemes and other schemes of
compulsory health insurance. Any donor (external) funds channeled
through these institutions are included
● Measures the number of women who die while pregnant or within 42
days of termination of pregnancy per 100,000 births
6.0 Output variables

6.1 Percentage of firms with female Measures the percentage of firms with females among the owners. World Bank,
participation in ownership Enterprise Survey
6.2 Percentage of firms with a Measures the percentage of firms that reported to have females as the World Bank,
female top manager top manager. Enterprise Survey
6.3 GDP per head (PPP); US$ Nominal gross domestic product per head, in US dollars at purchasing EIU, Country Data
power parity (PPP) exchange rates.
6.4 EIU Democracy Index Measures the depth of democratic institutions and participation. EIU
6.5 Vulnerable employment Measures the share of vulnerable employment in total employment, United Nations
women (5).
6.6 Gender-related development The Gender-related Development Index (GDI), measures achievement in UN Development
index the same basic capabilities as the UNDP’s Human Development Index Programme Gender
(HDI), but takes note of inequality in achievement between women and measure
men. The methodology used imposes a penalty for inequality, such that
the GDI falls when the achievement levels of both women and men in a
country go down or when the disparity between their achievements
increases. The greater the gender disparity in basic capabilities, the
lower a country’s GDI compared with its HDI. The GDI is simply the HDI
discounted, or adjusted downwards, for gender inequality.
6.7 Gender Empowerment Measure The Gender Empowerment Measure (GEM) is a measure of agency. It UN Development
evaluates progress in advancing women’s standing in political and Programme
economic forums. It examines the extent to which women and men are
able actively to participate in economic and political life and take part in
decision-making.
6.8 Informal employment Measures female informal employment as a percentage of total female International
employment. The number of persons in informal employment (a job- Labour Organisation
based concept) represents the sum of informal jobs in formal
enterprises, informal-sector enterprises and households producing
goods for their own consumption or hiring paid domestic workers.


6.9 Women’s Economic Opportunity An aggregate index that measures economic opportunity for women in EIU, Women’s
Index 128 countries worldwide, across five categories: labour policy and Economic
practice; access to finance; education and training; legal and social Opportunity Index
status; general business environment. Scores are for the 2012 edition of
the index.
6.10 Women leaders The percentage of women who are legislators, senior officials or International
managers. Labour Organisation
6.11 Total early-stage female The percentage of women aged between 18 and 64 who are either Global
entrepreneurial activity nascent entrepreneurs or owner-managers of a new business. Entrepreneurship
Monitor
6.12 Necessity-driven Measures the percentage of women aged between 18 and 64 who are Global
entrepreneurship entrepreneurs owing to the absence of other options for work. Entrepreneurship
Monitor
6.13 Opportunity-driven Measures the percentage of women aged between 18 and 64 who are Global
entrepreneurial activity involved in total early-stage entrepreneurial activity who (i) claim to be Entrepreneurship
driven by opportunity as opposed to finding no other option for work; Monitor
and (ii) indicate that the main driver for being involved in this
opportunity is being independent or increasing their income, rather
than just maintaining their income.
6.14 Female established business The percentage of the female population aged between 18 and 64 who Global
ownership rate are currently owner-managers of an established business, i.e., who own Entrepreneurship
and manage a going concern that has paid salaries, wages or any other Monitor
payments to the owners for more than 42 months.
6.15 Early-stage female Compares the rate of early-stage female entrepreneurship in each EIU calculation,
entrepreneurship rate country to the OECD average. The OECD average is calculated based on data from the Global
relative to the OECD average data from 19 countries. Entrepreneurship
Monitor
6.16 Global Entrepreneurship and Overall country score on the Global Entrepreneurship and Development The Global
Development Index Index (GEDI), which assesses the entrepreneurial strengths and Entrepreneurship
weaknesses of the economies of 120 countries based on entrepreneurial and Development
action, aspirations and attitudes. Institute
6.17 Human Development Index The Human Development Index (HDI) ranks countries by their level of UN Development
“human development”. The index is constructed using statistics for life Programme
expectancy at birth, the adult literacy rate and gross domestic product
per head.

Whilst every effort has been taken to verify the accuracy of this
information, neither The Economist Intelligence Unit Ltd. nor the
sponsor of this report can accept any responsibility or liability for
reliance by any person on this white paper or any of the information,
opinions or conclusions set out in the white paper.
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An index and study by the Economist Intelligence Unit

About the report 8

1 © The Economist Intelligence Unit Limited 2013

2 © The Economist Intelligence Unit Limited 2013

The following economists, researchers, women’s Expert panel members

3 © The Economist Intelligence Unit Limited 2013

Prevalence of female opportunity-driven entrepreneurs, by region

4 © The Economist Intelligence Unit Limited 2013

choice—suggests that women’s business understanding of the business environment and

4 Zoltan Acs, “Innovations: Technology, Governance”, Globalization Winter 2006,

5 © The Economist Intelligence Unit Limited 2013

6 © The Economist Intelligence Unit Limited 2013

WEVentureScope overall score vs Global Competitiveness Index overall score

WEVentureScope score Chile

7 © The Economist Intelligence Unit Limited 2013

Scope of the index non-traditional ﬁelds for women, such as

l The Business Operating Risks category Building the index

8 © The Economist Intelligence Unit Limited 2013

9 © The Economist Intelligence Unit Limited 2013

Rank Country Score/100

6 Costa Rica 56.8

8 Trinidad and Tobago 53.9

11 Dominican Republic 52.3

=13 Bolivia 47.7

=13 Honduras 47.7

=17 El Salvador 45.5

=17 Venezuela 45.5

10 © The Economist Intelligence Unit Limited 2013

Business Operating Risks

11 © The Economist Intelligence Unit Limited 2013

Indicators and sub-indicators in this section Rank Country Score/100

12 © The Economist Intelligence Unit Limited 2013

13 © The Economist Intelligence Unit Limited 2013

14 © The Economist Intelligence Unit Limited 2013

Entrepreneurial Business Environment

15 © The Economist Intelligence Unit Limited 2013

Indicators and sub-indicators in this section Rank Country Score/100

16 © The Economist Intelligence Unit Limited 2013

17 © The Economist Intelligence Unit Limited 2013

Days for contract enforcement

18 © The Economist Intelligence Unit Limited 2013

Regulation supports access to credit and government advertises opportunities online,

19 © The Economist Intelligence Unit Limited 2013

20 © The Economist Intelligence Unit Limited 2013

21 © The Economist Intelligence Unit Limited 2013

Indicators and sub-indicators in this section Rank Country Score/100

22 © The Economist Intelligence Unit Limited 2013

Indicator results in Access to Jamaica leads in use of bank accounts

23 © The Economist Intelligence Unit Limited 2013

24 © The Economist Intelligence Unit Limited 2013

25 © The Economist Intelligence Unit Limited 2013

26 © The Economist Intelligence Unit Limited 2013

Capacity and Skills

27 © The Economist Intelligence Unit Limited 2013

Indicators and sub-indicators in this section Rank Country Score/100

Overall results in Capacity points, reﬂecting the strong representation of

28 © The Economist Intelligence Unit Limited 2013

29 © The Economist Intelligence Unit Limited 2013

In focus need—necessity-driven entrepreneurs.2 may be more likely to pursue opportunity-

30 © The Economist Intelligence Unit Limited 2013

School life expectancy

31 © The Economist Intelligence Unit Limited 2013

32 © The Economist Intelligence Unit Limited 2013