Access to credit boosts female entrepreneurship during the pandemic

Unemployment and the lack of income generated by the pandemic led thousands of Brazilian women to entrepreneurship. A quarter of active women’s businesses in 2021 started during the health crisis.

The data are from the most recent survey carried out by the Instituto Rede Mulher Empreendedora, between May and June of last year. On the occasion, more than 2,700 women were heard.

The analysis also points out that 7 out of 10 entrepreneurs report being totally or partially financially independent.

Even with this scenario, women still have difficulties in getting access to loans and financing. The study indicated that 42% of Brazilian entrepreneurs who applied for credit had their requests denied.

The pandemic has worsened the situation of women’s businesses, as 54% of female entrepreneurs found that the crisis caused by Covid-19 limited the possibilities for their business to grow.

The founder of Instituto Rede Mulher Empreendedora, Ana Fontes, highlights the chain of economic development generated by businesses led by women.

“When women improve their conditions, especially financially, they invest more in their children’s education, support their community, assist their families. In addition, women hire other women who will react to this improvement in the same way, empowering more people”, says Ana Fontes.

support for entrepreneurship

The reality of female entrepreneurship in Brazil is beginning to motivate financial institutions to invest in these businesses. In a virtual press conference held on the morning of this Friday (25), the president of Banco do Nordeste (BNB), José Gomes da Costa, detailed the institution’s operations carried out in 2021, which totaled almost R$ 42 billion, throughout area of ​​activity of the bank.

Among the results presented, Costa highlighted investments of almost R$ 4 billion in micro and small companies and almost R$ 13 billion in “Crediamigo”, one of the bank’s main activities for micro-entrepreneurs. The program has 2.5 million active clients, of which nearly 70% are women.

In “Agroamigo”, BNB’s rural microcredit program, BRL 3.4 billion was applied, an increase compared to 2019, before the pandemic, when the amount was around BRL 2.5 billion. For the president of BNB, the growth shows how rural activity was little affected by the pandemic. The program has nearly 1.5 million clients — nearly 50% women.