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UN Women says investing in women is good business, but having access to capital remains a barrier for many of them. According to the IFC, only 7% of private equity and venture capital is invested in women-led businesses. That lack of funding not only limits women’s advancement but to social and economic growth as well. That is why helping women entrepreneurs with small investments can be a million-dollar idea.

It is time for women to start playing a more prominent and equitable role in our societies since they contribute to their cultural, economic, and political development. So Investing in a gender-sensitive way can help take down barriers, accelerate equality, and create a healthy economy for all.

Here is how investing in women can help the global economy

Even small investments in women-led businesses can have a very positive impact:

Higher returns and better performance

When it comes to managing assets and getting returns from investments, companies with more female participation and leadership tend to outperform those with lower percentages.

Economic spillover can generate clear social benefits

Strengthening the income of women entrepreneurs and those actively participating in the workforce has a multiplier effect.

Women investors will strengthen impact investing

Globally, women control more than $20 billion of the world’s wealth, and this figure will continue to grow in the future. That is excellent news for impact investing, as studies reveal that 84% of women want to focus their investments on social and environmental impact.

Increasing efforts to improve gender-responsive investing to let women access broader and more inclusive funding and advance their economic empowerment remains a primary goal for our society.

Most women have the ability to balance different tasks and priorities. In business, the ability to multitask, be flexible, and adapt is a significant advantage over other candidates. Women entrepreneurs also enjoy building relationships with their customers and employees, controlling their own lives, and doing something valuable to society.

So investing in women-led companies will allow entrepreneurs to build innovative platforms, create countless job opportunities, and boost the economy. That is how making even small investments can benefit all of us.

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