Women-owned businesses hold immense potential to transform global economies, yet they remain largely invisible in supply chains. Despite representing half the world’s population, women are far from achieving equitable access to opportunities as suppliers in the global marketplace. To bridge this gap, governments, corporations, and civil society organizations must unite in a concerted effort to create a level playing field for women entrepreneurs.

Women’s Untapped Potential in Business

Women around the world are educated, entrepreneurial, and determined to succeed. They create jobs, drive inclusive economic growth, and contribute significantly to poverty reduction. Yet, systemic barriers continue to restrict their participation as business owners. For instance, in India, women own just 20.5% of all the micro, small and medium enterprises (MSMEs) registered since 2020, and the country ranks 127th out of 146 nations in the 2023 Global Gender Gap Index, which measures gender parity across various factors, including economic participation.

The numbers speak for themselves. A Boston Consulting Group study estimates that closing the gender gap in entrepreneurship could increase global gross domestic product (GDP) by $2.5 trillion to $5 trillion. In India alone, equal opportunities for women-owned businesses could contribute $700 billion—or approximately $2,200 per person—to the GDP by 2025. Meanwhile, increasing women’s labour force participation to 50% could raise annual GDP growth by 1.5 percentage points, according to the World Bank.

The Role of Policy and Global Leadership

India has taken significant steps to promote women’s economic empowerment, notably making Women-led Development a priority during its G20 Presidency. The Government of India has implemented reforms and initiatives such as Stand-Up India and Pradhan Mantri Mudra Yojana (PMMY) to support women entrepreneurs at all stages of their journeys. These programmes have delivered results: 69% of PMMY loans have gone to women, and 84% of beneficiaries under Stand-Up India are women.

India’s target for 3% of government procurement from women-led MSMEs resulted in government-owned enterprises procuring goods worth INR 1,660.43 crore by 2021–22. This demonstrates how policy can drive measurable change, inspiring other nations and organizations to follow suit.

Gender-inclusive Supply Chains: a win-win strategy

Building gender-diverse supply chains isn’t just a moral imperative—it’s a smart business decision. Women-owned MSMEs hire more women, excel in cost management, and deliver strong financial performance. According to Kinara Capital’s 2024 MSME Insights Report, women-led businesses employ 11% more women compared to businesses led by men, amplifying their impact on communities.

Organizations like WEConnect International play a crucial role in driving change. By connecting women-owned businesses with large buyers and providing resources to meet the procurement standards of very large buyers, WEConnect International has helped direct billions of dollars to women-owned businesses globally. In South Asia, many member buyers have increased their spending with women-owned businesses by 4.5%, proving that sustained investment can yield significant financial results.

Tackling Systemic Barriers

Despite progress, challenges like gender bias and fronting where companies falsely claim to be women-owned persist. Tackling these issues requires bold action from policymakers and corporate leaders alike. Governments and private sector buyers must ask hard questions: Are procurement systems free from gender bias? Are specific internal targets for sourcing from women-owned businesses being set and met?

Verification and certification processes, such as those implemented by WEConnect International, are critical to ensuring accountability and impact in supply chains. Such measures safeguard against fraud and ensure that women entrepreneurs truly benefit from inclusive procurement policies.

Unlocking a Shared Vision for Growth

The vision of Women-led Development offers a powerful road map for inclusive growth. Achieving this vision requires collective action from all stakeholders—governments, businesses, and civil society organizations. Together, we can unlock the economic and social benefits of supporting women entrepreneurs, transforming communities and global economies alike.

How You Can Make a Difference

Corporations and governments: Commit to gender-inclusive sourcing and set measurable goals for sourcing from women-owned businesses.

Civil Society organizations: Provide relevant training and advocate for policies that support women entrepreneurs and hold stakeholders accountable for progress.

Consumers and investors: Buy from women-owned businesses and support brands and that prioritize gender diversity in their supply chains.

Conclusion: A Call to Action

The path to a sustainable and inclusive global economy lies in recognizing and harnessing the power of women-owned businesses. WEConnect International is leading the way by connecting buyers with women-owned sellers and fostering a fairer marketplace.

Through purposeful purchasing, bold policymaking, and strategic partnerships, we have the power to create a world where everyone has an equal opportunity to contribute and thrive. The time to act is now. By championing the vast potential of women entrepreneurs, we can drive innovation, strengthen communities, and build a future defined by shared prosperity and sustainable growth for all. #

Elizabeth A Vazquez is the CEO and Co-Founder of WEConnect International, and Eroshan Alagaretnam is the Regional Director for South Asia, WEConnect International.