Facilitating greater capital flow to women-led businesses is crucial for fostering economic growth and empowerment. Despite increasing awareness of the gaps women SMEs (WSMEs) face in access to capital and banking, the supply-side response has not been intentional in targeting segments of WSMEs with unique products and services and altering their processes to serve them better. While the social and economic benefits are clear, policy and private sector priorities have not consistently aligned around supporting WSMEs in an effective manner. ConsumerCentriX, with the support of the Women Entrepreneurs Finance Initiative (We-Fi), Argidius Foundation, and the Dutch Good Growth Fund (Triple Jump), is developing a WSME Segmentation Framework and Toolkit to address this gap. The framework and toolkit aim to transform how financial sector stakeholders understand and serve women entrepreneurs and business owners.
Current market segmentation practices for WSMEs are largely supply-driven, focusing primarily on business size and gender split. This narrow approach of segmenting SME markets by business size and overlaying a definition of women enterprises fails to address the critical dimensions that define her and her business. Financial sector stakeholders need a nuanced segmentation to tailor their support and services in a way that effectively supports different profiles of WSMEs to grow.
Based on primary findings from literature reviews and stakeholder interviews conducted in phase one of the project, it became evident that existing frameworks are insufficient at addressing the unique circumstances of women SMEs. While some frameworks include personal and psychological dimensions, none offer a comprehensive view that provides for critical factors like household responsibilities and dependents. This highlighted the need for a new, holistic approach that considers the full spectrum of influences on women entrepreneurs, including the environment in which she operate and how supportive or restrictive elements like social and gender norms and legislation are.
The WSME Segmentation Framework and Toolkit developed through this project leverages a gender-inclusive approach to segmenting WSMEs: by beginning with her as an entrepreneur or business owner, separating her from her business, and placing her and her business in the environment where she operates. These factors determine the growth path that her business is on, whether low/no growth, steady growth, or high growth/venture.
Through quantitative and qualitative research with WSMEs in Pakistan, Uganda, and Colombia, CCX will be able to determine which factors about her as a person, her business and the enabling environment are deemed the strongest determinants of which growth path she ends up on. From there, CCX will define segments and profiles using the factors. Marrying that insight with learnings from research on the supply-side, the final Global Segmentation Framework will illustrate not only the descriptors/dynamics and financial/non-financial needs per segment but also the supply-side response to target each segment and where the gaps are.
Ultimately, the goal of the WSME Global Segmentation Framework and Toolkit is to provide financial sector stakeholders with the tools and insights needed to offer more targeted and practical support to women entrepreneurs.
