The Rise of Female Entrepreneurship in Asia: Opportunities and Challenges

Female entrepreneurs are taking their place in the world of business, driving not only innovation but also social and economic progress. Yet, their journey is filled with distinct challenges rooted in societal expectations, and unequal access to key resources and capital.

A Snapshot of Global Female Entrepreneurship

Globally, women are increasingly stepping into entrepreneurial roles. According to the Mastercard Index of Women Entrepreneurs, one in three business owners worldwide is female. Women in lower-income countries such as Botswana, Uganda, Ghana, and Malawi surpass their global counterparts with an impressive 38% ownership rate of businesses, while in higher-income countries like the United States and New Zealand, this rate ranges between 30-36%.

Interestingly, young women aged 18-34 dominate the entrepreneurial landscape in lower-income countries, making up 56% of female business owners, while in higher-income nations, this number drops to 43%. The most common industries where women entrepreneurs thrive include wholesale/retail(50%) and social services (20%), but only 2,7% women have started a business into technology, where the potential for significant financial returns is greatest.

Globally, one in 5 startups had at least one women founder in 2019 (Statista). The proportion of new companies joining The Crunchbase Unicorn Board with at least one female founder in 2021 was 14 percent—matching 2019—the highest proportion since 2015.

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Female Entrepreneurs in Southeast Asia:?

In Southeast Asia, the journey of female entrepreneurs is shaped by both necessity and opportunity. Women make up around half of all microenterprise owners in the region, yet they continue to face challenges in accessing resources, networks, and capital. These businesses tend to be smaller and have fewer employees compared to those owned by men. For example, in Vietnam, women-led microbusinesses have 18% fewer physical assets and 39% less financial capital than those run by men.

Women are less likely than men to own SMEs because opening an SME requires capital and information that women have lower access to than men. Both male and female SME owners in Vietnam have greater knowledge of laws and regulations and use better and more formal business practices than their microenterprises. Female SME owners have larger networks and more men in their networks than female microentrepreneurs. Female SME owners are more likely to have applied for formal credit and to have borrowed informally than female microbusiness owners in Vietnam

A key finding across Southeast Asia from the World Bank research is that gender norms heavily influence the entrepreneurial ecosystem. Women spend four times more on unpaid care work than men, significantly limiting the time and energy available for running their businesses. Additionally, women-led businesses tend to have smaller, less formal networks, which further exacerbates challenges in securing capital and gaining market information.

In lower-income countries in Asia and the Pacific, a higher proportion of women-owned businesses are established out of necessity, due to a lack of employment opportunities; while in higher-income countries, a greater share of women’s entrepreneurship is driven by opportunities emerging in the market.

This distinction is important, as entrepreneurs who start a business in response to a perceived opportunity— as opposed to a lack of other options for income generation—are more likely to be growth-oriented, which means that they are more likely to achieve higher financial returns.

At the regional level, women and men start businesses out of necessity at roughly the same rate, but there is a significant gender gap in some countries, though not always in the same direction. According to the Asian Development Bank in the Philippines, for example, “43% of women entrepreneurs establish livelihood (necessity) businesses, compared with only 28% of male entrepreneurs. Yet in Indonesia and Malaysia, more than 80% of women entrepreneurs are opportunity-motivated, while their male counterparts are almost twice as likely to be driven by necessity. And in the People’s Republic of China (PRC), nearly two-thirds of women entrepreneurs are responding to opportunities in the market, though many of their businesses remain small due to limited access to business loans.”

Access to Capital: The Major Barrier

One of the most significant barriers to scaling businesses in Asia is access to capital. While startups with at least one female founder raised $1.41 billion in Southeast Asia in 2023, all-women founding teams secured only 6.6% of the total capital (better than the 2% at the global level). The disparity is even starker among microenterprises and small businesses. Women-owned microenterprises in ASEAN economies receive only 5-6% of available financing, while small firms receive 12-15%.

Traditional collateral requirements, such as property ownership, often hinder women from securing loans, as women are less likely to own these assets. However, innovative solutions are emerging to tackle these barriers. For instance, the multiplication of Angel Invetement networks focusing on female founders provides seed funding and mentorship for women entrepreneurs, and banks are beginning to use alternative credit assessment tools like psychometric testing, which bypass gender biases.

Solutions: A Path Forward

The rise of alternative financing methods such as crowdfunding could prove to be a promising path for women entrepreneurs. Crowdfunding platforms not only attract women investors but also channel more funds toward female-led businesses.

In addition, we need to encourage the multiplication of innovative financial tools that support early-stage women-led startups with both funding and access to network that will create revenue opportunities for their businesses. We need to carefully avoid the trend of women being over- mentored and underfunded, where ecosystems are more willing to provide mentorship, advising and coaching rather than investing in and providing capital for women-led businesses.

Finally, we need to focus on expanding women's access to business networks. Research shows that women entrepreneurs who engage with business associations are 24% more likely to scale their businesses within three years. These networks provide valuable opportunities for women to learn from peers, gain market insights, and expand their influence.

When some women are excluded from becoming entrepreneurs, the average talent of entrepreneurs is lower, leading to an estimated per capita income loss of 7% in East Asia and the Pacific according to the World Bank. Female entrepreneurship is steadily rising across the globe, and Asia is no exception. Women entrepreneurs in Asia are resilient, resourceful, and increasingly crucial to the region’s economic growth. However, for women-owned businesses to reach their full potential, they need greater access to capital and networks.

Promoting female entrepreneurship isn’t just a matter of equity—it’s a key driver of economic growth. As stakeholders in this ecosystem, it's up to us to create the conditions that will allow women entrepreneurs to thrive and lead the way to a brighter, more equitable future.

Angelique Masse Nguyen

CEO and Co-founder of NOI - N? theo ki?u c?a b?n

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