CARE International study reveals financial challenges for women entrepreneurs; research shows only 16% use business savings during crises while 27% lack resources for growth

Key findings

• Financial Insecurity in Crises: While 80% of entrepreneurs save for their business, only 16% would use business savings to recover from a crisis. Others instead rely on household savings or borrowing, which may limit the ability of the business to recover in the long-term.
• Limited Access to Credit: 27% of women entrepreneurs lack the financial resources needed to grow. High interest rates (49%), low loan amounts (23%), and short loan terms (14%) create barriers to formal financing, and debt stress remains particularly high in Pakistan, where 94% of borrowers are “very concerned” about repayment.
• Digital Divides: While 94% of respondents own a smartphone, only 51% use digital tools for their business. Access to digital upskilling remains a challenge, limiting women’s ability to tap into online financial services and expand into new markets.
• Satisfied but Stressed: While many cite satisfaction with the state of their business, households, and finances, this may come at the cost of high levels of stress. However, when spouses were involved in decision-making, women were 27 percentage points less likely to “always worry” about their business and 23 percentage points less likely to “always worry” about their household.
• Disconnected from Support Networks: One-third (34%) of women entrepreneurs lack access to networks like peer groups and mentors for business advice.

These findings uncover reality: women entrepreneurs want to grow their businesses– but they need systems that work with their realities, not against them.

“This research highlights how financial health is about much more than income or confidence—it’s about navigating complex systems, balancing roles, and accessing the right mix of resources,” said Rathi Mani-Kandt, Director of Women’s Entrepreneurship at CARE. “When we listen to women and design systems that match their realities, we don’t just improve business outcomes—we build more resilient economies.”

“These insights reinforce that unlocking women’s economic potential requires programs and systems to see and support the whole person,” said Payal Dalal, executive vice president for global programs at the Mastercard Center for Inclusive Growth. “Through Strive Women, we are investing in the tools, networks, and insights that can drive lasting impact for women entrepreneurs around the world.”

What needs to change?

The Strive Women research findings call for bold, practical, women-centered interventions. To ensure women entrepreneurs can thrive, CARE is calling for:

• Offering long-term, higher-interest savings accounts with features like automated deposits to help women build emergency funds.
• Financial products tailored to women’s business needs, with larger loan sizes, flexible repayment terms and alternative credit assessments.
• Offering tiered, practical digital literacy programs, from mobile banking basics to advanced tools like e-commerce and AI.
• Creating peer groups and family-inclusive workshops to build networks, mentorship, and shared responsibility at home.
• Innovations that support redistributive care responsibilities, through mechanisms such as subsidized childcare and financial tools designed with caregiving realities in mind.

Looking ahead

As Strive Women programming continues, further research will explore how tailored financial and business support can build long-term resilience, how digital tools support business growth, and how strong networks—both personal and professional—can enhance women’s financial health and overall well-being.

Notes to editors:

Link to Strive Women Baseline ReportMeasuring Women Entrepreneurs’ Financial Health Baseline Evaluation April 2025 Preface Strive Women, a 4-year program led by CARE and supported by the Mastercard Center for Inclusive Growth as part of its Mastercard Strive program, strengthens the financial health of women-led micro and small businesses in Pakistan, Peru, and Vietnam. Started in 2023 as an expansion of the Ignite program, which reached more than 9 million entrepreneurs and unlocked access to $154.9 million USD in loans, Strive Women delivers a combination of tailored 1) financial products, and 2) support services, such as digital skills building and mentorship programs. The program leverages women-centered design to addresses the unique challenges faced by women-led businesses. Strive Women aims to directly reach over 300,000 entrepreneurs through programming and 6 million entrepreneurs through education and communications campaigns. This report presents insights from the baseline evaluation of Strive Women program participants. In 2024, Strive Women conducted the program’s baseline survey with 2,475 growth-oriented women business owners in Pakistan, Peru, and Vietnam to establish their levels of financial health. This report presents findings from the survey. It begins by defining financial health, followed by an introduction to the survey, and an analysis of the results structured around the 4 pillars of the Strive Women Financial Health Framework: financial resilience, business management and growth, confidence and control, and quality of life. The report concludes with recommendations for financial service providers, practitioners, and researchers. Table of Contents About the Strive Women Program ..................................................................................................................................................3 Defining Financial Health ................................................................................................................................................................4 Introduction to the Survey ...............................................................................................................................................................6 PILLAR 1: Financial Resilience ....................................................................................................................................... 8 PILLAR 2: Business Management and Growth ...............................................................................................................13 PILLAR 3: Confidence and Control ................................................................................................................................21 PILLAR 4: Quality of Life ...............................................................................................................................................25 Key findings and opportunities .................................................................................................................................................... 33 Acknowledgements ...................................................................................................................................................................... 36 Endnotes ........................................................................................................................................................................................ 37 Annex: Questionnaire Text ............................................................................................................................................................ 39 Measuring Women Entrepreneurs’ Financial Health 2 About the Strive Women Program This report presents findings from the baseline survey of the 4-year Strive Women program. Women-led micro and small enterprises (W-MSEs) are critical contributors to economies, communities, and households worldwide. But for these entrepreneurs to thrive, it takes more than access to finance. It requires using a comprehensive set of services and approaches to improve their financial health. As such, Strive Women offers two main interventions: 1. Tailored financial products: Strive Women works with entrepreneurs and financial service providers to refine existing and develop new financial products that are responsive to the needs of women-led micro and small enterprises. The program offers tailored products such as loan products, savings accounts, and digital wallets. 2. Non-financial support services: Strive Women offers a suite of non-financial services aimed at improving W-MSE’s capabilities and confidence to achieve business growth. These services include business, digital, and financial literacy training, mentorship programs, access to childcare, and support for more environmentally friendly business practices. For both interventions, Strive Women employs women-centered design (WCD) principles to develop and deliver financial and non-financial products and services.1 Using WCD ensures that the products and services offered are built around the lived realities, preferences, and constraints of women entrepreneurs. This means actively engaging women-led businesses in the design, testing, and refinement of solutions through interviews, focus groups, and user testing. Strive Women operates in Pakistan, Peru, and Vietnam—all emerging markets with a high number of women operating micro and small enterprises. Strive Women recognizes there is significant untapped economic potential in supporting women-led businesses in these countries, and by improving their access to capital, skills, and markets, the program aims to strengthen local and global economies. Measuring Women Entrepreneurs’ Financial Health 3 Defining Financial Health “Financial health” as a concept has evolved significantly Designed specifically for women entrepreneurs in over time. In the early 2000s, most development emerging markets, the framework acknowledges the organizations focused on improving financial education distinct challenges women business owners face, and literacy. Over time, this evolved to include efforts including disparate access to finance, harmful social aimed at influencing behaviors and building financial norms that limit market access and business growth capabilities. For example, by 2018, the World Bank opportunities, and conflicting responsibilities across the emphasized that financial outcomes depend not only on home and their business. Moreover, for many women literacy, but also on the attitudes, skills, and behaviors there is not a clean delineation between household and of individuals. These approaches tended to emphasize business responsibilities, consumption, and investment. improving individual actions and skilling as the primary pathway to better financial outcomes. The Strive Women Financial Health Framework has the following distinct characteristics: Around the same time, organizations also began taking a more holistic approach to financial health. In 2015, • Women-centered: Places emphasis on the unique the Consumer Financial Protection Bureau emphasized challenges experienced by women in emerging the concept of “financial well-being” and defined it as “a markets including decision-making power, state of being wherein a person can fully meet current confidence, and care-giving responsibilities. and ongoing financial obligations, can feel secure in their • Holistic: Considers financial and non-financial financial future, and is able to make choices that allow impacts, especially around quality of life. them to enjoy life.” • Considers present and future: Financial health is a present state but also requires confidence and Several organizations have since developed frameworks capacity for future opportunities and risks. for measuring the financial health of micro- and small- enterprises. However, no single definition exists. Ultimately, Strive Women defines financial health as For example: a comprehensive and dynamic state of well-being for women entrepreneurs. It is measured by the • The Center for Financial Inclusion (2020) states following indicators: that an MSE is financially healthy if it breaks even or earns a profit over time.2 1. Financial Resilience: Ability of women • The Financial Health Network (2022) argues that entrepreneurs to prepare for, withstand, and recover for a small business, financial health occurs when from shocks systems help businesses build resilience and 2. Business Management and Growth: Ability of pursue opportunities.3 women entrepreneurs to use proactive strategies • Appui au Développement Autonome (2020) defines and tools to manage and grow their business financial health as an entrepreneur’s ability to deal 3. Confidence and Control: Confidence in one’s ability with financial issues in his/her business, manage to manage and grow their business finances, and plan for the future.4 4. Quality of Life: Ability to balance household and business responsibilities, and finances These definitions also vary in who the subject of the framework should be: the entrepreneur or the business. The objective of the program’s baseline survey is to measure the various domains that influence an Strive Women identifies the following common themes entrepreneur’s ability to grow their business, recover across all industry definitions: the ability to meet financial from shocks, and enjoy life on their terms. This analysis obligations, plan for the future, and withstand financial identifies key behaviors and potential gaps that may shocks. The program builds on these industry definitions support or hinder financial health, which will be used to by centering the individual entrepreneur—rather than the inform future Strive Women programming. business itself—and taking a more holistic approach. It also expands beyond financial outcomes to reflect broader aspects of quality of life. Measuring Women Entrepreneurs’ Financial Health 4 Figure 1: Key Indicators of the Financial Health Framework PILLAR KEY INDICATORS SHORT TERM OUTCOMES LONG TERM OUTCOMES Financial Resilience • A ccess to savings and The ability of women Adaptive capacity to emergency capital Proactively plan for entrepreneurs to recover withstand and recover • A bility to cope at cash flow varability in from shocks in the short- from cash flow variability least 3-6 months after business and shocks term while prioritizing in business and shocks an emergency long-term growth Business • S eparating business Management and personal finances Maintain and strengthen and Growth • S etting and meeting day-to-day operations Expanded and digitalized business goals through effective The ability of women businesses operations • U sing digital tools business planning, entrepreneurs to use in-line with their goals • A bility to access financial management, proactive strategies and and repay affordable and digital tools tools to manage and grow investment capital their business • C onfidence in 9 Confidence Have confidence to indicators, including make joint or individual and Control business management, financial decisions Increased access to decision making, and regarding business, markets and business Confidence in one’s accessing finance. expand networks growth opportunities ability to manage and • C urrent decision- and customer and grow their business making is aligned with supplier base preferred decision-making. Satisfaction, stress, Quality of Life Evaluate time and time-use across management Ability to balance responsibilities in: Improved time (time balance) and household and business • Household management and stressors related responsibilities, and • F inances (personal mental health to business and finances and business) financial services • Business Measuring Women Entrepreneurs’ Financial Health 5 Introduction to the Survey In 2024, Strive Women conducted a baseline survey with 2,475 growth-oriented women business owners to establish their levels of financial health.5 Target Population The Strive Women program works with women entrepreneurs in 3 emerging markets: Pakistan, Peru, and Vietnam. The program targets entrepreneurs with at least 1 employee, who have been in business for a minimum of 2 years, and who are ready to grow. While there is considerable variation across the sample, the typical entrepreneur is a married woman in her late 30s to early 40s with a secondary school education. Her business is most often urban-based, unregistered, operating in the retail sector, and employs between 1 and 4 people. Pakistan Peru Vietnam 65% 53% 92% Married or Cohabitating Married or Cohabitating Married or Cohabitating 34 42 43 Average age Average age Average age 67% 77% 51% Secondary education or higher Secondary education or higher Secondary education or higher 3+ <1 1-2 Average number of children Average number of children Average number of children Sector Sector Sector Primarily garment and textiles Primarily retail and sales Primarily retail and sales 5.69 6.8 10.61 Average number of years in business Average number of years in business Average number of years in business 108 USD 540 USD 2,400 USD Average monthly revenue Average monthly revenue Average monthly revenue 30% 34% 78% Business formally registered Business formally registered Business formally registered Measuring Women Entrepreneurs’ Financial Health 6 Methodology Researchers used a mixed-methods approach to carry out the baseline survey, including a 60-minute quantitative survey, focus group discussions, and in-depth individual interviews. The methodology is summarized as follows: Figure 2 Pakistan Peru Vietnam Quantitative: 882 Quantitative: 879 Quantitative: 714 Sample size Qualitative: 56 Qualitative: 41 Qualitative: 40 Location Punjab, Sindh, Balochistan, and 24 regions in Peru Hanoi, Bac Ninh, Lang Son, Islamabad Capital Territory Thanh Hoa, and Ho Chi Minh City Quantitative: In-person surveys Quantitative: In-person and Quantitative: In-person surveys phone surveys Qualitative: In-person focus Qualitative: In-person focus Methodology group discussions and individual Qualitative: In-person focus group discussions and individual interviews group discussions and remote interviews individual interviews The sample includes a mix of participants returning allows for a comparative analysis of outcomes between from the previous Ignite program and newly recruited the two groups, offering insights into the added value of entrepreneurs. Approximately half of the participants non-financial services. The study is longitudinal and will will be offered a bundle of non-financial services— follow the same set of participants over time.6 such as training, mentoring, or peer support—alongside financial services, while the other half will receive It is anticipated that not all participants will comply with financial services alone. Using a pre-post study design, their treatment assignments. As such, at endline the researchers will assess changes in outcomes before and study will also use a treatment-on-the-treated analysis after participants receive their support package. Because to better understand the outcomes among those who the study includes two different types of support, it complied with their assigned interventions. Figure 3 25% 25% Offered financial Offered financial services services 50% 50% newly existing identified participants and eligible from the 25% women Ignite 25% Offered financial and entrepreneurs program Offered financial and non-financial services non-financial services 2,475 entrepreneurs Limitations The baseline survey was administered to a sample of new Strive Women program participants. Many entrepreneurs in this sample have also had access to products and services through CARE’s Ignite program, the first phase of Strive Women. Surveys targeting solo-entrepreneurs or entrepreneurs newly starting their business may yield different results. As such, the results from the baseline evaluation may not be generalizable to all women entrepreneurs in the target countries and should only be interpreted in the context of Strive Women program participants. Measuring Women Entrepreneurs’ Financial Health 7 PILLAR 1 Financial Resilience The Strive Women Financial Health Framework measures financial resilience by understanding how entrepreneurs prepare for, respond to, and recover from financial shocks. Key indicators include savings behaviors, access to emergency resources, and the ability to maintain operations during times of volatility. Financial resilience is a critical pathway to financial health Savings is the first for women-owned businesses. It refers to an individual’s step in creating a safety net ability to prepare for, cope with, and recover from shocks such as business losses, supply chain issues, weather Proactive and liquid savings – both informal and formal events, economic downturns, and unexpected expenses.7  – can help entrepreneurs withstand and navigate shocks by maintaining a buffer against unexpected Evidence shows that women are often hit hardest by outcomes.10 Moreover, dedicated business savings allow shocks. For example, during the COVID-19 pandemic, entrepreneurs to cover unexpected costs without relying women’s job losses globally were 1.8 times greater than on personal funds or taking on debt. men’s,8 and rates of business closure during this time were highest for women-owned businesses.9 Nearly 80% of women entrepreneurs interviewed across Pakistan (79%), Peru (76%), and Vietnam (83%) save Access to relevant financial resources and products is money specifically for their business. The location of fundamental for coping with shocks and emergencies in savings differs from country to country. In Vietnam, the short-term. Preparing for an emergency begins with 69% of respondents keep their savings in a formal bank establishing a safety net through a variety of financial account, compared to 38% of respondents in Peru, and instruments – this could be savings (through informal 15% in Pakistan. Respondents in Peru (39%) and Pakistan channels, banks, and mobile money), loans, and insurance (42%) are most likely to store their savings informally, to protect against unexpected costs.  such as keeping cash at home, in a lockbox, or with Measuring Women Entrepreneurs’ Financial Health 8 family or friends. The location of savings is in-line with that she prefers relying on trusted individuals rather than findings on bank account usage, which is highest among institutions: “What I have done is educate my children. So, respondents in Vietnam (87%), followed by Peru (72%), they are my banks. That is, whatever I need, I turn to them.” and Pakistan (38%). To understand whether having savings translates into In Pakistan, 14% of respondents use mobile money a safety net, entrepreneurs were asked, “Imagine that accounts to save for their business. This aligns with tomorrow you discover that most of the equipment you findings on mobile money account ownership, which need to operate your business has been stolen. What finds that in Pakistan, entrepreneurs are 17 percentage would you do to deal with the financial loss?” points more likely to own a mobile money account than a traditional bank account. Forty-five percent of entrepreneurs said they would use savings to cope with an emergency, with 29% relying Any method of saving, either informally, at a bank, or in on personal savings, 12% on savings marked for their a mobile money account, can help entrepreneurs build a business, and 4% using a combination of both. This safety net, but the choice of location may ultimately be highlights that savings, whether formal or informal, play decided by the benefits and drawbacks presented by each a key role in helping entrepreneurs manage unexpected channel. For instance, banks may offer interest on savings, financial shocks. However, when entrepreneurs rely higher account limits, and different regulatory protections on personal savings, they may be able to manage the compared to mobile money and informal borrowing. immediate crisis, but this can deplete resources intended At the same time, trust in formal institutions remains a for personal or household use. barrier for some. Alternatively, mobile money and informal mechanisms may offer greater liquidity, more convenient There may be two possible reasons for why entrepreneurs access, and—in some cases—a higher degree of privacy, rely on personal savings over business. particularly for women who may want to keep savings discreet from family or household members.11 First, the amount saved for business purposes may be too little to cope with a major shock. In the qualitative Evidence from interviews suggests that trust in interviews, many entrepreneurs report that their business institutions factors into entrepreneur preferences for income is primarily used to cover immediate consumption informal methods: “I am not very devoted to banks. I don’t needs, leaving little for savings. Others have stated that want to know anything about banks,” says a business they have trouble managing how much capital to invest, owner in Peru. Another respondent in Peru comments save, or allocate as profits. Figure 3: Percent of respondents with business-specific savings 68% 60% 42% 40% 38% 39% 39% 29% 24% 21% 20% 15% 14% 16% 9% 6% 3% 5% 5% 0 0% 2% 0% 2% % Bank Mobile money or e-wallet Savings group Informally Doesn't save Pakistan Peru Vietnam Global Measuring Women Entrepreneurs’ Financial Health 9 Figure 4: Sources of emergency funds 60% 58% 44% 41% 40% 33% 35% 38% 33% 31% 26% 23% 25% 26% 22% 20% 18% 16% 16% 18% 12% 12% 13% 14% 11% 11% 3% 5% 7% 7% 3% 3% 1% 3% 0% 0% Use personal savings Use business Borrow from family Borrow from bank Cut household Cut business Approach indebted Work overtime or savings and friends spending expenses clients take on extra work Pakistan Peru Vietnam Global Alternatively, entrepreneurs may view their business Moreover, the data demonstrates that savings may savings as solely for investment purposes, not as a buffer influence how long entrepreneurs believe their businesses for emergencies. For instance, in Pakistan, one business could remain operational after a financial shock. When owner states, “I have business savings, and I keep them in asked to estimate how long their business could stay open [an] account, but this emergency fund is separate, which following a major disruption, entrepreneurs who said they I don’t use at all. It is 10,000 [rupees (115 USD)]. If sales would rely on any form of savings—whether formal or are good, then I keep more money. If sales are bad, I keep informal—were 13 percentage points more likely to report less money.” Similarly, an entrepreneur in Vietnam shares, being able to sustain operations for 3-6 months compared “I typically save profits for 1–2 months before reinvesting to those who did not mention using savings.13 them in new products to grow the business. I also make sure to keep a small emergency fund.” These findings Business savings appear to offer even greater perceived suggest that many entrepreneurs may need guidance protection: those who reported using business savings on how to view and manage their business savings—not specifically were 12 percentage points more likely to just as capital for growth, but also as a reserve to help estimate being able to keep their business running weather financial shocks. for 3-6 months than those who said they would rely on personal savings. 14 These findings underscore the In line with common financial recommendations, an perceived value of accessible and sufficient business ideal savings buffer is between 3-6 months of income.12 savings as a critical factor for financial resilience. Around half of all women surveyed (48%) estimate that in the event of a shock, they would have enough capital to run their business for 3-6 months. However, this differs by context: respondents in Vietnam (68%) - the group with the highest uptake of formal financial services - are most likely to meet this rule, followed by Pakistan (51%). This is lowest in Peru, where less than one-third of respondents state they would have enough capital to run their business for 3-6 months. As outlined above, Peru is also the country where respondents are most likely to rely on borrowing money in emergencies. Measuring Women Entrepreneurs’ Financial Health 10 Figure 5: Length of time a business could operate after a shock Pakistan 6% 10% 33% 26% 26% Peru 6% 19% 47% 18% 10% Vietnam 2% 7% 23% 29% 39% Global 5% 12% 35% 24% 24% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Less than a week At least a week At least one month At least three months Six months or more Borrowing to cope with shocks may limit the ability of a business to recover In addition to savings, 40% of respondents state that Indeed, survey data shows that entrepreneurs who would they would borrow from banks and 26% from friends and rely on borrowing to cope with a shock may struggle to family in the event of an emergency. sustain their businesses as long as those who do not. Those who would borrow from formal institutions during “The amount of money set aside for such emergencies are 9 percentage points less likely to believe their business would sustain for 3-6 months after the contingencies is relatively small. We are event, as compared to those who would not borrow.15 fortunate to have strong relationships with our families and friends. These connections It is important to note that while borrowing is not an provide us with additional financial support ideal tool to cope with emergencies it is considered more beneficial when used for investment purposes, when needed, allowing us to access the as presented in the Business Management and Growth necessary funds to continue our operations chapter. Other factors that may affect the impact of without significant disruption.” borrowing on recovery include the size and flexibility of Business owner – Vietnam the loans and current debt load. Proactive strategies like savings help entrepreneurs There is low demand for business insurance prepare for future shocks by setting aside resources in Insurance products are often considered a primary tool to advance. This means that after a shock, entrepreneurs’ anticipate risk in high-income markets, but demand and day-to-day operations may not be disrupted because uptake remains low in emerging markets. In the baseline funds were set aside in anticipation of an emergency. In survey, less than 2% of respondents had insurance contrast, borrowing is a reactive strategy that typically specifically for their business, and less than 7% indicated comes after a shock has already occurred. While interest in adopting business insurance. Evidence shows borrowing may help an entrepreneur withstand the that low uptake rates may be due to lack of trust, lack of initial impact, it may require diverting cash flow to loan financial literacy, payout times, and mismatches between repayments that can disrupt daily consumption needs insurance payouts and losses experienced by the affected or delay future business goals. As a result, even if the individual.16 These challenges may be exacerbated by the immediate crisis is managed, recovery may be slower and fact that few insurance products are designed with the more difficult, without a clear path to repayment. risks experienced by micro and small enterprises in mind. Measuring Women Entrepreneurs’ Financial Health 11 Nevertheless, properly designed insurance coverage needs to sell assets or cut household expenses, while could offer short-term value through innovative bundling allowing businesses to recover more quickly and maintain and product design and would limit entrepreneurs’ operations.17 KEY TAKEAWAYS FINDINGS Savings, particularly business-specific savings, are a crucial safety net and a proactive strategy to prepare for and cope with shocks. Forty-five percent of entrepreneurs said they would use savings in the event of a shock, and those that use business savings are 12 percentage points more likely to sustain their business for 3 months or longer after a shock, as compared to those that would use personal savings. While borrowing—from banks (40%) or friends and family (26%)—can help entrepreneurs navigate emergencies, data suggests it is a reactive strategy. Those who rely on borrowing to cope with shocks may struggle to sustain their businesses for at least 2 months, especially without a clear repayment plan. Less than 2% of respondents have business insurance, and interest in adopting it remains low, indicating a critical gap in financial protection against unexpected shocks. IMPLICATIONS AND RECOMMENDATIONS Programs should support women entrepreneurs to intentionally allocate savings for different purposes through labelled and separate savings accounts. Emphasis should be placed on building a buffer of 3-6 months’ working capital before reinvesting savings back into the business. There is an opportunity to design and launch tailored, low-cost, and simple insurance products designed specifically for small businesses. More research is required to understand why entrepreneurs may prefer informal over formal accounts: are there issues of trust? Do entrepreneurs value flexibility? Are there hidden costs associated with formal services? Measuring Women Entrepreneurs’ Financial Health 12 PILLAR 2 Business Management and Growth The Strive Women Financial Health Framework measures business management and growth by understanding how entrepreneurs apply proactive strategies and tools such as separating business and personal finances, managing business goals, using digital tools, and borrowing for investment. In addition to one’s ability to manage shocks, financial Separating business and personal finances health also encompasses an individual’s ability to manage is a key business management practice day-to-day business operations in line with their goals. Entrepreneurs who consistently apply effective business The Strive Women survey finds that two-thirds of management practices are more likely to withstand entrepreneurs keep records for their business. Rates of financial uncertainties and establish a foundation for recordkeeping are highest in Vietnam (74%), followed by long-term success. Peru (70%), and Pakistan (60%). Respondents in Vietnam also have the highest rate of digital recordkeeping Evidence shows that better business practices in (15%) in comparison to Peru (8%), and Pakistan (7%). marketing, stockkeeping, record-keeping, and financial However, written records remain the norm, which can planning are predictive of higher survival rates and be less efficient, harder to analyze, and more prone to faster sales growth for micro and small enterprises in loss or error compared to digital alternatives. Moreover, emerging markets.18 Key business practices measured one-third of women surveyed do not keep records for in this survey include: separating business and their business at all, which can make it challenging to personal expenses, setting clear goals, utilizing digital track business operations and cash flow, price products, tools, and the ability to access and repay affordable assess profitability, and plan for the future. investment capital. Measuring Women Entrepreneurs’ Financial Health 13 Figure 6: Percent of respondents who keep business records Pakistan 53% 7% 40% Peru 53% 8% 8% 30% Vietnam 58% 15% 26% Global 55% 10% 3% 33% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Written records Digital records Written and digital records Does not keep records Of entrepreneurs that keep business records, about half In addition to not separating personal and business separate household financial records from business records, many entrepreneurs do not separate their records, but there is considerable variance across household and business finances: only 14% of countries: 52% of entrepreneurs in Pakistan, 60% in Peru, entrepreneurs have separate bank accounts for business and 34% in Vietnam. In Pakistan, an entrepreneur explains and personal use and only 10% have separate mobile that time constraints and competing responsibilities money accounts. Without this separation, there may be prevent her from properly keeping records: “I used to write an increased risk of using business funds for personal [business ledgers] before, but now I don’t as I’m busy. [...] expenses (or vice versa). I have little children, also housework, so it is difficult for me to keep records. I know about ledgers, but I have not “If you are not organized and you do not made one yet.” manage your finances, everything else is secondary, everything falls apart.” Business owner – Peru Figure 7: Percent of respondents who separate records Pakistan 39% 9% 52% Peru 33% 7% 60% Vietnam 59% 7% 34% Global 43% 8% 49% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Does not keep household records Keeps household records but does not separate from business Keeps household records and separates from business Measuring Women Entrepreneurs’ Financial Health 14 Another respondent in Peru adds, “I learned through finances improved a lot. [...] When I understood that I had training that I have to allocate an amount for my salary to separate my finances, I also learned about savings.” and that there has to be money left over that belongs This underscores the importance of separate accounting to my business because the money I produced was practices to help entrepreneurs better track cash flow and not really mine, it belonged to my business. When I manage expenses. understood that I was an employee in my business, my Setting business goals helps entrepreneurs plan for the future Goal setting is a key part of financial resilience because it Of entrepreneurs who identified specific business goals, enables entrepreneurs to prioritize resources proactively 88% have already taken steps to achieve their goals (74% and effectively. For example, evidence shows that women in Pakistan, 93% in Peru, and 96% in Vietnam). The most who set specific savings goals or designate funds for common step taken differs by market. In Pakistan, 27% a particular purpose save more than those who save of women have created a business plan; in Peru, 63% without a specific target in mind.19 have saved money; and in Vietnam, 48% have accessed new markets. Eighty-six percent of survey respondents set goals for their business (83% in Pakistan, 90% in Peru, and 84% One entrepreneur in Pakistan underscores the importance in Vietnam). The top five most reported goals for their of prioritizing strategy for her business’ success but notes business are to increase revenue, increase the number that lack of capacity prevents adopting certain business of customers, expand to additional locations, create a practices: “Having a business plan and record keeping are business plan, and increase the number of products. a must. If I have those then I will be able to work properly. The most common responses were related to increasing I don’t have the awareness to formulate a business plan. profitability: 46% of business owners said they want If I did, then I would.” to increase their revenue and 38% said they want to increase their number of clients. These findings suggest that entrepreneurs are already practicing goal-setting behaviors consistent with future planning, though qualitative evidence suggests they may benefit from additional support to identify and take the steps needed to achieve their goals. Figure 8: Top five business goals 60% 56% 46% 44% 40% 40% 39% 38% 39% 29% 26% 25% 25% 23% 21% 19% 21% 20% 14% 14% 11% 10% 5% 0% Increase revenue Increase number of customers Expand location Create a business plan Increase number of products Pakistan Peru Vietnam Global Measuring Women Entrepreneurs’ Financial Health 15 Figure 9: Top five steps respondents have taken to achieve their business goal 63% 60% 48% 40% 38% 37% 32% 27% 25% 24% 19% 21% 21% 20% 18% 20% 20% 15% 12% 11% 11% 11% 8% 0% Pakistan Peru Vietnam Global Saved money Created a business plan Expanded network Accessed new markets Accessed finance Smart borrowing is crucial for growth This is echoed by an entrepreneur in Peru, “I prefer to take from what I have to pay than to owe something.” Borrowing and access to credit is crucial for entrepreneurs as it enables them to invest in and Borrowing behavior also varies by country. Around 80% grow their businesses. While borrowing can support of respondents in Vietnam and Peru borrowed at least business expansion, some women remain hesitant due once in the past 12 months, compared to around 30% in to concerns about debt and repayment, especially given Pakistan. Low rates of borrowing in Pakistan may stem the seasonal and volatile nature of cash flow that many from religious concerns: qualitative interview participants micro-entrepreneurs experience. A business owner from noted that more religious families and individuals avoided Pakistan comments: loans due to Islamic principles that prohibit charging interest. In Peru and Pakistan, most borrowers took out “I am scared of getting loans because we don’t only 1 loan in the past year, whereas in Vietnam, more have any permanent income.” than half of borrowers took multiple loans. Thirty-eight percent of all respondents did not take out any loans in the past 12 months. Figure 10: Frequency of respondent borrowing Pakistan 20% 6% 4% 70% Peru 52% 21% 6% 22% Vietnam 40% 25% 18% 18% Global 37% 17% 4% 38% 0% 20% 40% 60% 80% 100% Borrowed once in past 12 months Borrowed twice in past 12 months Borrowed 3+ times in past 12 months Did not borrow in past 12 months Measuring Women Entrepreneurs’ Financial Health 16 Most entrepreneurs (89%) borrow from formal financial administrative or cost barriers to formal lending. One institutions, but many also rely on informal sources like business owner in Peru shares: family, friends, and community lenders. While formal institutions can offer higher loan amounts and protection “Thank God I have a family that supports me. from predatory interest rates, informal borrowing may be more accessible and flexible for those facing [...] They do not charge me interest.” Figure 11: Source of loans 100% 97% 90% 89% 80% 66% 60% 40% 29% 20% 13% 8% 12% 5% 6% 1% 3% 1 1% 3% 5% 0% % Pakistan Peru Vietnam Global Formal bank/credit institute Family or friends Savings group Other informal source While borrowing can lead to business growth, it can In Vietnam, 75% of respondents have indicated mid to also lead to excessive debt if repayment becomes high levels of concern over their ability to repay their unmanageable, ultimately undermining entrepreneurs’ most recent loan, and about one-third of respondents are business growth and sustainability in the long-term. “very concerned.” In Peru, 61% have indicated some level To understand this better, the survey also examined of concern, and 13% are “very concerned.” Debt stress debt stress. is highest in Pakistan, where 98% of borrowers report concern over their ability to repay their most recent loan, and 94% are “very concerned.” Figure 12: Respondent concern over repayment ability Pakistan 2% 4% 94% Peru 39% 48% 13% Vietnam 25% 49% 27% Global 27% 41% 32% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Not concerned Somewhat concerned Very concerned Measuring Women Entrepreneurs’ Financial Health 17 Data suggests that borrowers are most concerned about While borrowing can provide much-needed capital and high interest rates (49%), low loan amounts (23%), and support financial stability, traditional loan products short loan terms (14%). A business owner in Pakistan often fail to align with the unique needs and business shares, “Banks that operate on an interest system are cycles of women entrepreneurs. Challenges such as detrimental to the financial well-being of businesses.” debt stress, high interest rates, low loan amounts, and Another comments, “I took [a] loan, but it was difficult to short repayment terms continue to limit their usefulness. pay the installment [on time].” Adapting financial products to better reflect women’s realities is essential for business growth. Qualitative evidence also suggests that business owners who have had negative experience with banking staff Entrepreneurs have a high appetite for may be reluctant to take out their products. In Peru, a digital upskilling and digital tools respondent says, “I was surprised that when I went to look for a loan, that me being young or a woman, they didn’t take Digital tools, from financial management apps to online me seriously and they didn’t believe that I had the capacity courses to formal e-commerce platforms, such as Daraz or that I was the one who managed both stores. They told (Pakistan) and Yape (Peru), and informal e-commerce me that I would have to ask my husband, who is a little platforms, such as social media platforms like Facebook older than I am [to come with me].” Another entrepreneur in and Instagram, are essential for business growth. Peru comments, “[Bank staff] prejudge us and do not know Evidence indicates that increasing women’s access that we have the capacity, we have the discipline.” to information and services through mobile platforms can lead to diversification of products sold,20 increased In Vietnam, a business owner comments that the profits, and expansion into new markets.21 professionalism of bank staff may influence her borrowing decisions and indicates that human touchpoints could be Despite high smartphone penetration in all markets key in overcoming other barriers to usage: surveyed (94% of respondents own a mobile phone), only 51% of entrepreneurs in the sample use online or digital tools for their business.22 The most used digital “The competence of the bank’s credit staff tool for business purposes across all countries was is crucial. A proactive and supportive credit social media, followed by informational videos and online team can significantly ease the borrowing courses. Preferences for social media over other tools may be due to ease of use, free use (outside of paid process for a business. Even if the interest rate advertising), higher rates of flexibility, and its widespread is slightly higher, a good relationship with the use by suppliers, customers, and other entrepreneurs. credit officer is often preferred.” Additionally, entrepreneurs may favor social media because it is already integrated into their personal lives, making it a familiar and accessible option for business use. There is a statistically significant difference in the age of women business-owners who do not use digital tools for their business. Women who do not use digital tools are, on average, 41 years old, and women who do use digital tools are, on average, 37 years old.23 Business owners also rely on younger family members to support with using digital platforms and technology. One entrepreneur from Peru shares, “I personally never use the computer… I get help from my son who helps me with billing,” and another states, “My daughter helps me with what is virtual, with the networks. I don’t know much, but I’m learning there.” Measuring Women Entrepreneurs’ Financial Health 18 Lack of digital skills is also a very common barrier that There is both an appetite for digital skills and an may limit the use of digital tools. In Vietnam, a business understanding of the benefits that digital tools offer a owner shares, “I’d really appreciate some online courses small business for reaching customers and optimizing on digital marketing. With more people ordering food business management. An entrepreneur in Peru shares online, I need to learn how to promote my pho business insight on her use of a digital payment system, Yape: on social media and food delivery apps. It’s all new to me, “Support yourself with digital platforms. For example, and I feel like I’m falling behind.” Similarly, an entrepreneur I run a business with a wallet system, which helps me in Pakistan comments, “I am unable to find a proper to record all sales and outlets, to have reports on which medium to promote my business online. […] I need proper products I sell for each month.” guidance and training in this area.” Figure 13: Digital tools used in past 12 months 60% 56% 44% 41% 40% 37% 24% 20% 15% 10% 10% 11% 10% 9% 5% 9% 5% 4% 5% 0% Pakistan Peru Vietnam Global Social media Informational videos Online courses E-commerce Measuring Women Entrepreneurs’ Financial Health 19 KEY TAKEAWAYS FINDINGS Strong financial habits, such as recordkeeping, separating business and personal expenses, and setting business goals, are crucial for business management and growth. Only 14% of entrepreneurs have separate bank accounts for business and personal use. When business owners do not separate finances, it can make profitability unclear and financial tracking and decision- making (e.g., pricing and inventory) challenging. While borrowing and access to credit can increase investment and growth opportunities, many entrepreneurs hesitate to take loans due to product features that currently do not meet their needs: high interest rates and short loan terms Debt stress is highest in Pakistan, where 94% of borrowers are “very concerned” about repayment. Digital literacy remains a challenge as, despite 94% smartphone penetration, only 51% of respondents use digital tools, and entrepreneurs that use these tools tend to be younger, on average, restricting their ability to access new digital markets and customers. Social media is the most used digital platform, demonstrating an opportunity to introduce entrepreneurs to additional tools like e-commerce platforms, financial management apps, or online learning. IMPLICATIONS AND RECOMMENDATIONS Programs should emphasize the importance of separating business and personal finances as a foundational practice for entrepreneurs. This can be supported through maintaining separate bookkeeping to track business and personal income and expenses, using digital accounting or recordkeeping tools to improve accuracy and accessibility, and opening and using separate bank accounts for business transactions. On the supply-side, financial service providers should consider loan products with longer repayment periods, lower interest rates, and flexible terms that align with women’s cash flows and business models. Programs working with entrepreneurs should emphasize the importance of affordable and appropriate credit options to support sustainable business investment to reduce the risk of over-indebtedness. Social media is an important touch point. Programs should use social media platforms to teach the basics of digital literacy and gradually onboard entrepreneurs to more advanced digital business tools like inventory management apps, e-commerce platforms, and digital financial services. Tool use should evolve alongside the business life cycle, from informal sales tracking to more robust systems as businesses grow. Measuring Women Entrepreneurs’ Financial Health 20 PILLAR 3 Confidence and Control The Strive Women Financial Health Framework measures confidence through indicators across business management, accessing financial resources, using digital tools, and other areas related to business growth. It measures control through indicators related to whether entrepreneurs’ current decision-making is aligned with preferred decision-making. Confidence and control are critical components of Similarly, control over financial decisions, both within the women entrepreneurs’ financial health. Access to business and the household, shapes how resources are financial tools, business skills, and financial resilience allocated and decisions are made. are essential building blocks, but confidence and control ultimately influence whether and how women Women entrepreneurs entrepreneurs put these resources into practice—shaping exhibit high levels of confidence actual usage and decision-making. Researchers measured confidence by asking participants Confidence influences whether women feel empowered to to reflect on a series of statements related to business set goals, take financial risks, or adopt new tools such as practices, skills, and growth potential on a five-point scale credit, savings products, or digital platforms. Even when ranging from “not very confident” to “very confident.” tools are available, low confidence can prevent women These responses were pooled to form a “confidence from using them effectively—or at all.24 Research indicates index.”26 Overall, women entrepreneurs demonstrate that confidence directly improves business outcomes a high level of self-reported confidence: the average and profitability, and women entrepreneurs are disproving score was a 4.05 out of 5. Eighty-three percent report a the prevailing myth that there is a confidence gap holding “confident” or “very confident” rating on the confidence them back from achieving their business goals.25 index (82% in Pakistan, 84% in Peru, and 83% in Vietnam). Measuring Women Entrepreneurs’ Financial Health 21 Figure 14: Levels of confidence 100% 97% 97% 98% 98% 98% 97% 97% 95% 96% 94% 90% 96% 93% 91% 93% 89% 90% 85% 87% 88% 85% 86% 84% 82% 83% 80% 79% 79% 76% 77% 74% 73% 74% 62 64% 66% 66% 65%66%65% % 60% 59% 40% Skills to Resources Make Cope with Increase Select Access a Know who Use digital Meet grow to grow decisions shocks number of suppliers network to approach tools for business business business about clients for an business goals business investment opportunity Pakistan Peru Vietnam Global Specifically, women entrepreneurs demonstrate high Through the qualitative findings, many entrepreneurs levels of confidence as it relates to the ability to make share that confidence is not fixed—it can grow and decisions alone about the business (96%), skills needed evolve through gaining more business experience, having to grow their business (95%), growing their customer a business success, or overcoming a challenge in the base (94%), and selecting suppliers (93%). In addition, workplace. A business owner from Vietnam explains, “I 91% of respondents also indicate that they have a goal to have changed a lot. Before, I wasn’t confident sitting in grow their business or streamline business practices. Of front of people like this at all, but now, through this job the women who have a business goal, 83% of them are and the time spent interacting with many people, I feel confident in their ability to achieve it. that I have grown more mature and confident.” While self-reported confidence is high amongst this This confidence is further boosted by support from sample, respondents report lower confidence levels family members (particularly a spouse), mentors, and on aspects related to access to external resources entrepreneur networks: “I feel I have a [network] that and digital technology: 27% are not confident they supports me. The simple fact of being able to talk to other have the financial resources needed to grow and women and be listened to; it’s a cathartic process. [...] In operate their business, 34% are unable to identify a a place full of women, we all walk together in the same network (outside of family and friends) that they can direction,” says an entrepreneur from Peru. rely on for non-financial business support, and 35% are not confident in their ability to use digital tools for “I am unable to find a proper medium to business purposes. promote my business online...I need proper These barriers hamper women entrepreneurs’ ability to guidance and training in this area. To learn how thrive and grow their businesses. As one entrepreneur to make ads, as it is graphic work, what is liked from Vietnam shares “Our digital skills are quite weak, as by people in an ad. I want to put an attractive technology advances day by day, and we are considered more traditional in our approach. So, when it comes ad so people purchase it.” to updating on trading platforms or social media, we Business owner – Pakistan have almost no experience.” Limited access to financial services was also a prevalent theme in interviews. A business owner in Pakistan explains, “I’m not a big fan of banks, because I’ve had many bad experiences.” Measuring Women Entrepreneurs’ Financial Health 22 Decision-making approaches Access to finance is a and levels of business control vary persistent challenge to growth Women entrepreneurs take many different approaches to Twenty-seven percent of women entrepreneurs are not decision-making. For some, this means sharing decisions confident they have the financial resources needed to with a spouse or family members, a cooperative or team grow and operate their business. Several respondents of staff, or a wider network: 58% of respondents currently offered suggestions for how to make financial products make decisions about their business jointly. A business more appropriate: 51% of respondents wish their loan owner from Vietnam explains, “I would like to share my had a lower interest rate, and others listed challenges, decisions with everyone because I am not sure I can including loan sizes that were too small (23%) and too always make 100% good decisions. When I share with short loan periods (14%). them, they can give me advice to make this decision better, more informed.” Entrepreneurs lack support networks, which are key to growth When asked, nearly all respondents who share decision making with their spouse would not change the level of A trusted network of confidants can provide both control their spouse has over their business, particularly non-financial support and business advice. 27 However, when it comes to long-term decisions (e.g., business 34% of women entrepreneurs lack this essential network expansion and investments, versus short-term decisions who understand their unique challenges and provide e.g., sales and customer relations). A business owner informal support. An entrepreneur in Peru explains how, from Vietnam shares, “We believe that two heads are through access to a business network, she has developed better than one.” leadership skills, begun to advocate for other women in business, and found a likeminded community, “I feel In contrast, 42% of women entrepreneurs surveyed are I have a [network] that supports me. The simple fact of sole decision-makers: “I run my business on my own, being able to talk to other women and be listened to; it’s a making all product and financial decisions myself. cathartic process.” While I thankfully have family support, I believe a true businessperson handles things on their own without This extends to critical decision-making as well; 58% relying on others,” says a business owner from Pakistan. of respondents currently make decisions about their business jointly, perhaps indicating an openness for a network of support or a tailored style of decision-making. “I feel confident in my control over most One business owner from Vietnam states “I’m confident aspects of the business. This hands-on when I work and when I collaborate with everyone in approach allows me to maintain the quality production. When I share with them, they can give me advice to make better decisions,” and another from standards that our customers expect. It’s Peru explains, “I am the one making decisions for [my challenging at times, but it gives me peace of business, but my husband] helps me see things I didn’t.” mind knowing that I’m overseeing every crucial aspect of our operations.” There is a need for digital upskilling Business owner - Vietnam Thirty-five percent of women entrepreneurs reported that they lack confidence in their ability to use digital tools effectively. The rapid advancement and design of technology poses major hurdles, particularly for those in more traditional settings. This has important implications for financial inclusion—especially in rural areas, where access to traditional institutions is limited, and the ability to understand and use digital financial services can be critical for business operations and growth. See more on digital tools in the Business Management and Growth chapter. Measuring Women Entrepreneurs’ Financial Health 23 KEY TAKEAWAYS FINDINGS 83% of entrepreneurs report a “confident” or “very confident” rating on a confidence index Women entrepreneurs demonstrate high levels of confidence as it relates to the ability to make decisions alone about the business (96%), skills needed to grow their business. (95%), growing their customer base (94%), and selecting suppliers (93%). Key areas for improvement and boosting confidence include access to relevant financial services, networks, and digital skills. One in three entrepreneurs are not confident in their ability to access financial resources, leverage a network for business growth, or use digital tools for business purposes. IMPLICATIONS AND RECOMMENDATIONS Interventions should position women as confident decision-makers, focusing on removing external barriers rather than “fixing” internal gaps. Networks play a crucial role in entrepreneurship. Without strong networks, women entrepreneurs miss out on emotional resilience, practical business advice, valuable business opportunities, and peer-driven learning. Programs should intentionally foster spaces (both virtual and physical) where women can share experiences, reflect on their challenges, and grow together. More research is needed to understand how confidence changes over time, and with exposure to new tools and information. How does confidence evolve as women face new business challenges? How does it evolve when accessing and using new, unfamiliar tools? Measuring Women Entrepreneurs’ Financial Health 24 PILLAR 4 Quality of Life The Strive Women Financial Health Framework defines quality of life as a women entrepreneur’s ability to balance household, business, and financial responsibilities, measured by high satisfaction, low stress, and effective time use. Several organizations have highlighted the link between highlights that when women do the bulk of the housework financial circumstance, financial stress and financial and childcare, they “have fewer hours to work, greater health and their impact on quality of life. The Financial need for flexible hours, and less ability to travel for work, Health Network, for example, suggests that during times compared to their male counterparts, all of which could of financial hardship, stress increases, which in turn can limit career opportunities and employment success.”30 worsen economic outcomes.28 In one study, researchers find that women entrepreneurs who take care of children during business hours earn 48% For women entrepreneurs, however, financial stress is lower profits than women entrepreneurs who do not have not the only stressor that affects economic outcomes. these caregiving responsibilities.31 In addition to finances, household responsibilities and pressures related to business performance all influence To understand these challenges, the Strive Women their overall financial well-being. A survey from Gallup Financial Health Framework measures “quality of life” and the International Labor Organization (2017) finds that by asking women entrepreneurs how they perceive maintaining “balance between work and family” to be the their ability to balance household and business top challenge faced by working women globally.29 responsibilities, and finances. Increased quality of life is measured by high satisfaction, low stress, and effective Research also shows that this could come at the cost of time use. business productivity. A review by Jayachandran (2020) Measuring Women Entrepreneurs’ Financial Health 25 Women entrepreneurs have a variety of and financial management. There is a third category responsibilities beyond managing their for paid labor (business management), to assess how businesses, and caregiving duties are a paid labor may also affect a respondents’ quality of life. significant portion Across these 3 categories, respondents were asked to rate their stress levels, satisfaction, and ability to Caregiving responsibilities—or the unpaid work involved manage time. in caring for others, typically children or elderly or disabled adults—are often the largest component of unpaid domestic responsibilities. In a UN study of women “Initially, for women starting businesses, the across 44 countries, direct care for other members of a biggest challenge is often related to family. household constituted more than half of women’s time They feel constrained by family responsibilities spent on unpaid labor.32 and must support their households.” In the survey, 47% of entrepreneurs report that they take Business owner - Vietnam care of at least one child or dependent adult on a daily basis. This is highest in Pakistan where women have an Women entrepreneurs exhibit high levels average of 3.5 children in their household and 64% of this of satisfaction with the state of their group have care responsibilities. It is lowest in Peru where household, finances, and business women have an average of 0.6 children in their household and 26% care responsibility. Although women entrepreneurs carry significant caregiving and unpaid work responsibilities, they report In addition to childcare, women are also often responsible high levels of satisfaction. When asked to rate their for other unpaid labor including cooking, cleaning, paying satisfaction with their household, finances, and business, bills, making purchases, and other household tasks. they gave scores averaging above 4 out of 5 (“satisfied”) To capture the impact of unpaid labor on financial in each domain. This pattern holds consistently across all health, the survey groups unpaid labor into two broad 3 countries in the study. categories: household management (including childcare) Figure 15: Questions Measuring Satisfaction in Unpaid and Paid Labor 1. Very satisfied  • How satisfied are you with the current state of your household affairs? 2. Somewhat satisfied  • How satisfied are you with the current state of your financial affairs? 3. Not sure  • How satisfied are you with the current state of your business? 4. Somewhat unsatisfied  5. Very unsatisfied  Figure 16: Average satisfaction score, where 5 = very satisfied   PAKISTAN  PERU  VIETNAM  Household  4.46  4.35  4.35  Finances  4.14  4.18  4.07  Business  4.26  4.36  4.12  Measuring Women Entrepreneurs’ Financial Health 26 However, these rates of satisfaction working for themselves, but to secure a better future for coexist with high levels of stress others in the household. Stress—or satisfaction—in one In Pakistan and Peru, most entrepreneurs indicate that domain could spill over into another. they worry “all the time” about their household, finances, and business. In Pakistan, more than 80% of respondents Compared to Pakistan and Peru, reported stress levels consistently worry about all 3 categories: household, are lower in Vietnam. In general, many women note that finances, and business. In Peru, business is the highest their families and spouses provide support, which may source of worry. alleviate some levels of household stress, but business- related concerns are still a common theme. Some These trends are supported by qualitative evidence. entrepreneurs in Vietnam worry about repaying loans, In Pakistan, many entrepreneurs noted that societal customer debt, and seasonality. Despite these pressures, attitudes and norms around women’s work contribute to business growth is often a source of personal fulfillment, their stress levels. Women identified cultural barriers, lack with one entrepreneur sharing that expanding to new of family support, criticism from others, harassment, and markets “brings her joy.” Women acknowledge that stress the pressures of a joint family (a household of more than is an unavoidable part of entrepreneurship. As one focus one family and/or several generations) as the top factors group participant put it: negatively affecting their quality of life. One entrepreneur elaborates, “A joint family system negatively affects “As a female business owner, it’s impossible to your life because of the workload.” This suggests that avoid stress entirely. The level of stress may women entrepreneurs in Pakistan may face particularly vary, but it’s always present.” high competing demands from both their household and business responsibilities. Financial stress is a common theme among respondents In Peru, many entrepreneurs echoed that familial in all contexts. A key financial challenge highlighted responsibility also affects their quality of life and add is unpredictable cash flow. Causes of this include that their children’s education is a key pressure. “I have delayed payments from customers, cancelled contracts to invest in them, in their education, because it is the and orders, or volatility in the cost of supplies. One best inheritance I can leave them,” notes an entrepreneur entrepreneur says, “One of the main challenges is dealing in Peru. Another in Pakistan says, “If your family is with unpaid debt. Typically, customers make an initial totally dependent on you, then it’s hard to maintain a partial payment and then pay in multiple installments. balance, and your health might suffer.” These findings However, as a result of customers’ valid and honest also highlight how household and familial financial reasons, I find it difficult to refuse them while also responsibilities are deeply intertwined with business needing to ensure that I can pay my workers and small management—many women entrepreneurs are not just suppliers on time, thus creating cash flow problems.” Figure 17: Percent of respondents who “worry all the time” about their household, finances, and business 100% 88% 84% 87% 80% 80% 72% 66% 58% 61% 60% 57% 40% 23% 20% 18% 18% 0% Household Finances Business Pakistan Peru Vietnam Global   Measuring Women Entrepreneurs’ Financial Health 27 Time management is a critical skill for business health One factor that may contribute to these levels of worry is how entrepreneurs divide their time between household, business, and financial responsibilities. Most entrepreneurs report that they would like to maintain their current time allocation for household duties, while about 1 in 3 wish they had more time for these tasks and caregiving responsibilities. “Nowadays, both men and women work, so it’s important to share household tasks equally. If it’s just a couple, they should split the chores 50/50. If there are children, everyone should contribute, so it’s not all left to the mother or time between our business and our other responsibilities wife. Sharing responsibilities ensures a more which are our children, our parents, the home.” Another balanced family life.” business owner in Vietnam shares, “On a typical day, Business Owner – Peru I’m usually busy from 5 in the morning until midnight. Generally, my work revolves around preparing and packaging goods, and afterward, we all help out with “The issue of the children, the care, the work, production. Overall, there’s so much work that it feels like not neglecting that. [...] Everything depends on there’s never enough time to list it all.” When it comes organizing oneself and putting priorities ahead to financial responsibilities, opinions are evenly split, and problems behind. That’s what’s important.” with half wanting more time and half content with their current allocation. Business Owner - Peru In contrast, time spent on business activities is a greater While most entrepreneurs feel they are already spending concern—59% of entrepreneurs say they want more the necessary time on household duties, many struggle time for their business, and only one-third are satisfied to prioritize their business—despite wanting more time with their current time investment. An entrepreneur in in their day to grow or manage it.33 This highlights a Peru states, “He can dedicate himself to all the activities significant imbalance: household responsibilities are that come with doing a business as such, more than a directly competing with business needs, limiting the time hundred percent, more fully. While we have to divide our and focus entrepreneurs can devote to their work, and making it difficult to prioritize business growth. Figure 18: Amount of time respondents want to allocate toward finances 80% 62% 62% 60% 50% 47% 50% 46% 40% 37% 34% 20% 2 3% 5% % 3% 0% Spend less time Spend same amount of time Spend more time Pakistan Peru Vietnam Global Measuring Women Entrepreneurs’ Financial Health 28 “The barriers we face daily are numerous. Pakistan says, “When it’s something different, new, or In my case, as a professional, I still have involves more risk, those types of decisions take a bit more time, and I tend to feel a bit unsure about how it will to balance domestic roles. Even as a turn out.” An entrepreneur in Peru adds that when she has businesswoman, there’s no set schedule for limits on support and time, she often misses out on new work—you might work eight hours, but then opportunities or contracts for her business. you come home and have to take care of cooking and cleaning.” “We have to organize our times for everything, Business owner – Peru for the children, for the business, and we also have to take care of our parents. And, really, Limits on time also affect the way women manage their sometimes we get to the end of the day, but finances. Many entrepreneurs cited that proper financial management and decision-making takes a significant we are not lying down [and relaxing]. We are portion of time. When discussing her process in making octopus[es].” larger decisions about her business, an entrepreneur in Business owner – Peru Figure 19: Amount of time respondents want to allocate toward household 80% 60% 63% 60% 57% 48% 43% 40% 33% 34% 26% 20% 14% 9% 9% 4% 0% Spend less time Spend same amount of time Spend more time Pakistan Peru Vietnam Global Figure 20: Amount of time respondents want to allocate toward business 80% 75% 60% 58% 59% 53% 40% 40% 38% 40% 25% 20% 7% 1% 2% 3% 0% Spend less time Spend same amount of time Spend more time Pakistan Peru Vietnam Global Measuring Women Entrepreneurs’ Financial Health 29 While high levels of satisfaction suggest that women entrepreneurs successfully balance their household, financial, and business responsibilities, these levels coexist with significant stress and a desire to spend more time on their business. One interpretation of this finding is that achieving “success” across all 3 domains can come at the cost of emotional well-being. Entrepreneurs may feel they have no choice but to meet the pressures of their home, their finances, and their business, but in the long-term, this may not be sustainable. Indeed, there is a sentiment from women entrepreneurs that the key to success is the ability to balance their competing responsibilities. An entrepreneur in Vietnam says, “To me, a successful businesswoman balances Support from one’s spouse, family, and all of these aspects - she’s good at her business, takes networks is important for managing care of her family, supports her husband, and ensures multiple responsibilities and contributing to her children are well-educated and cared for.” Another business growth business owner from Vietnam highlights a similar ideal, In line with social expectations around women’s domestic “It’s not easy to juggle everything, but that’s what makes work and care responsibilities, many entrepreneurs a truly successful businesswoman - someone who can suggest that support from a spouse can improve their manage it all and still have a thriving business and happy business outcomes and quality of life. Entrepreneurs family.” And this is echoed by a respondent in Peru; “I whose spouse provides input into their business believe that a successful businesswoman is one who are 27 percentage points less likely to report they has found balance in her business, professional and “always worry” about their business and 23 percentage family life.” points less likely to report they “always worry” about their household. However, this ideal of the “woman who can do it all” comes at a cost. As highlighted in previous An entrepreneur in Peru shares, “You might think one CARE research, glorifying multitasking by women thing and then you tell your spouse, and he thinks entrepreneurs not only reinforces unrealistic about it as well. Then you both feel better making expectations, but also overlooks the chronic overwork decisions.” Two business owners in Pakistan share, “[I] and mental strain that it may cause. The normalization can make decisions for my household, but I prefer to of overwork in pursuit of this ideal undermines long-term share decisions with my husband, at least for mutual quality of life and business outcomes. Often without understanding,” and “We can achieve success in our adequate support, social norms expect women to business if our partners are supportive.” In Vietnam, one succeed in all areas simultaneously may push women woman entrepreneur said that support from her spouse beyond healthy limits. can help her informally spread the risk associated with making large financial decisions. “We are fortunate to have strong relationships However, entrepreneurs whose family members (such with our families and friends. These as parents and parents-in-law) provide input into their connections provide us with additional business are more likely to report that they “always worry” financial support when needed, allowing us to about their business and household. This could stem from unequal power dynamics, especially in joint-family access the necessary funds to continue our systems mentioned often in Pakistan, where input from operations without significant disruption. This parents or in-laws can create tension.34 As a business network of support is crucial in maintaining owner in Pakistan shares: “The behavior of my relatives, the stability and resilience of our business, whether it is positive or negative [affects my quality of life].” Overall, support is a key factor in managing especially during challenging times.” the multiple responsibilities that women business Business owner - Vietnam owners balance. Measuring Women Entrepreneurs’ Financial Health 30 The role of mindset and personal time in Others reference the importance of mental health in being alleviating stress able to operate a business, a woman in Pakistan says, “When you are mentally healthy, you’ll be able to make Several studies have begun exploring the potential appropriate decisions. If you are not healthy, you will factors that may help some individuals mitigate stress, make the wrong decisions.” even considering objective economic challenges. Some research has identified psychological and behavioral Personal and leisure time can also play a key role in traits that may help individuals avoid experiencing mitigating or alleviating stress. 36% of women in the financial stress. As in one example, individuals with baseline survey said they wanted more time for personal higher levels of perceived “self-efficacy” – the belief activities and referenced needing this space for their that one is competent and can overcome challenges – mental health. A business owner in Vietnam shares “I have been found to demonstrate lower levels of financial have a busy day, so it’s important for me to take time for stress, even in light of financial strains.61 Similarly, while myself to find happiness. Of course, I can’t do that every studies regarding the relationship between financial evening. Meeting friends is only occasional, but that’s knowledge and financial stress appear mixed, one’s how I balance my life.” confidence about their financial knowledge has been associated with lower anxiety and conversely, negative Financial stability is closely related feelings about one’s finance have been associated with to stress mental health issues.62, 63 Stress is closely tied to feelings of financial Women business owners are aware of this balance. independence. In Pakistan, many entrepreneurs reference An entrepreneur in Peru shares, “I feel that quality of “being financially strong” as one of the most important life is prioritizing your peace of mind. In fact, having a aspects related to quality of life; a business owner shares, business is quite complicated because there is a lot of “I feel calm, because I am financially well off, and I can anxiety, sales fluctuate a lot, there are scenarios in which help and support my family,” and another, “All I want is to everything can be fine and out of nowhere it goes down have financial power so I can work more without worry.” … So, I feel that quality of life is tranquility, that is, getting An entrepreneur in Vietnam echoes this sentiment, “Only up and knowing that things are going well or that if it when women make their own money, they have their doesn’t go or that if it goes badly, ok, you will know how own happiness.” to manage and handle tranquility and above all balance.” Measuring Women Entrepreneurs’ Financial Health 31 KEY TAKEAWAYS FINDINGS Balancing household responsibilities, particularly caregiving, and business responsibilities significantly impacts women entrepreneurs’ quality of life - 47% of entrepreneurs provide daily care for children or dependent adults and 59% of entrepreneurs say they want more time for their business. Achievement comes with high stress. Many women express satisfaction with their roles at home and in business, yet this satisfaction is often accompanied by a desire to focus more time and the business stress due to the constant need to juggle competing demands—especially childcare. Supportive relationships matter. Entrepreneurs who share decision-making with their spouses are 27 percentage points less likely to constantly worry about their business. This suggests supportive networks, particularly spouses and family, play a critical role in alleviating stress and improving business outcomes. Financial independence and sound financial practices can help alleviate stress. IMPLICATIONS AND RECOMMENDATIONS Programs must recognize childcare and caregiving as critical enablers of women’s economic participation. Implementers should test community-based childcare solutions or subsidized care models, particularly for entrepreneurs with young children or dependents. Leverage family members as allies. Programs should test approaches that engage spouses and family members, particularly spouses and partners, to foster shared responsibility and reduce the burden on women entrepreneurs. Explore how women define balance. More research is needed to unpack how women define satisfaction, what their “ideal” balance looks like, and what emotional effort is required to maintain their current dual roles. Measuring Women Entrepreneurs’ Financial Health 32 Key findings and opportunities 1. A bout half of women entrepreneurs have the necessary capital to sustain their business for 3-6 months after a shock, and many rely on reactive, rather than proactive strategies to respond to emergencies. 2. W omen entrepreneurs have a strong foundation in business and financial management, but need additional business management skills, digital tools, and financial support to grow their businesses. 3. W omen entrepreneurs are confident, but external barriers and other constraints hold them back from business growth. 4. Competing household, financial, and business responsibilities affect quality of life and business outcomes. Women entrepreneurs play a critical role in economic This presents an opportunity. There is significant growth, yet they continue to face external barriers that potential for these entrepreneurs to improve their affect their financial health. business behaviors and usage of financial products further. Many entrepreneurs still struggle to access The results from the baseline evaluation challenge appropriate financial resources, particularly those common stereotypes that portray women entrepreneurs that support business owners’ ability to respond to in emerging markets as low productivity business owners. emergencies and invest in future growth. Women also Instead, the data reveals that the women surveyed highlight gaps in, and appetite for, their ability to use have the drive and tenacity to grow their businesses digital technology and access networks. These gaps despite facing challenges to accessing appropriate are exacerbated by external factors such as lack of financial services, high levels of business uncertainty, appropriate product offerings, perceptions from financial harmful social norms, and competing responsibilities in service providers that women are “riskier” clients, and their households. legal and constraints. Measuring Women Entrepreneurs’ Financial Health 33 The research also highlights critical areas where targeted support could make a meaningful difference. For instance, caregiving and household responsibilities significantly affect both business productivity and mental well-being, which underscores the importance of non-financial services such as access to childcare and mental health resources. Recommendations to improve financial services Twenty-seven percent of women entrepreneurs do not feel they have the financial resources needed to grow and operate their business. Suggestions for how to make financial services more appropriate and accessible include: • Women entrepreneurs require different types of financial products based on their levels of resilience and business stage. Savings and short-term loans serve as essential safety nets for all entrepreneurs, but especially for newer and subsistence-level businesses, helping manage risk and unexpected challenges. Seasonal businesses depend on flexible working capital to sustain operations through revenue fluctuations. For high-growth entrepreneurs, access to growth capital—such as larger loans with fewer barriers—is crucial for making strategic investments and scaling efficiently. Tailoring financial solutions to these distinct needs strengthens business resilience and long-term success. • Introduce long-term business-specific savings accounts with higher interest rates, focused on helping entrepreneurs build emergency funds. These accounts could be structured to encourage consistent saving, with added benefits like automated deposits or matching contributions. • Develop tailored, low-cost, and simple insurance products designed specifically for small businesses, with coverage options that address both business-related risks (e.g., equipment damage, theft) and personal emergencies (e.g., illness, caregiving). These products should be affordable, with minimal documentation requirements, and offer flexible payment plans to accommodate the cash flow challenges of small-scale entrepreneurs, particularly women in emerging markets. Recommendations for non-financial programming Women business owners indicate a high demand for training and support, alongside acknowledging the challenges faced in competing responsibilities. Suggestions include: • As financial needs vary by business stage, so do digital literacy needs. Some women entrepreneurs require basic training on mobile banking and digital payments to confidently engage with formal financial services. Others require advanced digital skills to leverage e-commerce, digital bookkeeping, and online business tools, including AI-enabled solutions. Organizations should offer tiered, practical training that meets entrepreneurs where they are, enabling them to adopt and fully utilize digital tools. • Focus on building core foundational business behaviors. Separating personal and business finances through strong record keeping, digital ledgers, and separate accounts can help entrepreneurs better manage cash flow, ultimately leading to better business management and growth. • Strengthen community-based support systems, including peer networks, mentorship, and spouse/family engagement, to improve women’s ability to grow their businesses while managing household responsibilities. This could include establishing peer learning groups or business circles, and hosting family-inclusive workshops that engage spouses or other household members in discussions about shared responsibilities and the value of women’s entrepreneurship. • Support women entrepreneurs in addressing caregiving and household constraints by advocating for policies such as subsidized childcare, on-site childcare, and shared or cooperative models. Recommendations for further research This evaluation revealed key questions and areas for exploration. • Does confidence change over time, with exposure to training and new tools and services? Does confidence decline as entrepreneurs gain a deeper understanding of what is needed for business success? • How do women entrepreneurs’ risk profiles and preferences influence the design and adoption of insurance products? What product features could lead to greater adoption and usage of business insurance? Additionally, how do traditional insurance models compare to anticipatory (weather-based) insurance products in supporting women-led businesses through shocks (including financial, health, and other emergencies)? Measuring Women Entrepreneurs’ Financial Health 34 • How does division of household labor shift as women’s economic participation increases? More studies are needed to explore whether greater financial independence leads to changes in family and spousal dynamics, and whether this results in increased support or additional pressures. Existing research presents mixed findings, with some studies indicating that higher economic participation can lead to greater household strain or resistance from family members. • Can participation in entrepreneurial peer groups influence financial decision-making and business expansion? Do visible role models and mentorship programs improve long-term business stability and financial practices? Can networks improve confidence and stress management? What’s next Strive Women is actively incorporating insights from Second, the program is supporting financial service this report into its current and future programming. To providers to better serve W-MSEs by specifically testing improve financial health for women entrepreneurs, Strive several insurance products. This includes business Women is collaborating with local partners to launch a insurance that covers common losses experienced by series of financial and non-financial products. women entrepreneurs and health insurance targeted toward women-specific health needs like breast First, the program is supporting W-MSEs to grow by cancer. Strive Women is also testing micro-insurance promoting savings behavior to prepare for shocks and models to make premiums more affordable for emergencies by offering accessible standalone accounts low-income consumers. or bundled accounts alongside loans. Through its training curriculum, Strive Women emphasizes the importance of Third, the program is driving innovations to deepen regular savings as a key enabler of stability and long-term W-MSE financial health in childcare, green business growth. These trainings also encourage entrepreneurs to practices, and more. Specifically, the program is piloting separate household and business finances, use separate several childcare interventions; these may include bank accounts for separate purposes, and set specific subsidies for affordable childcare and cooperative or savings goals. rotating-based childcare models. It is also launching a series of campaigns to promote stress coping and more Under this impact area, the program is working to equal distribution of domestic labor within the household. improve systematic gaps, such as low use of digital The program is supporting green business practices by tools and access to networks, by creating “low touch” testing a series of products to improve efficiency and and “high touch” peer networks. Low touch networks mitigate weather-related risk. include online, social media, and group-messaging based peer networks. These groups allow entrepreneurs to Fourth, the program is leading ecosystem building and share best practices with one another, seek advice, and learning to drive wider sector support of W-MSEs. In access resources. The digital nature of these groups also Pakistan, Peru, and Vietnam, learning networks have facilitates digital upskilling. High touch networks include been launched which bring together a policy makers, developing in-person groups and mentorship programs financial and non-financial service providers, women’s for women to attend trainings and events together; where associations, and women entrepreneurs. As Strive possible, Strive Women leverages existing women’s Women’s implementation continues, further research groups, unions, and chambers of commerce. Given the at midline and endline will deepen our understanding of lack of confidence in using digital tools across the three how financial health evolves over time and in response to countries, Strive Women will place emphasis on offering program interventions. training on digital tools. Interested in collaborating on research or programming? Reach out to us at entrepreneurship@care.org and explore our work at www.care.org/entrepreneurship Measuring Women Entrepreneurs’ Financial Health 35 Acknowledgements This report was written by Tanvi Jaluka (Research and Learning Lead, CARE Women’s Entrepreneurship) and Laura Beresford (Communications Strategist, CARE Women’s Entrepreneurship), with input from the Strive Women team at CARE. The authors are grateful for feedback from Danielle Hopkins, Janet Shulist, Rachel Seftel, and CARE’s Vietnam, Peru, and Pakistan country offices, and for data collection efforts by Pakistan Microfinance Network, Laterite, BEX Consultoria, and Toward Development Integration Consulting. Strive Women is a part of Mastercard Strive, a portfolio of philanthropic programs supported by the Mastercard Center for Inclusive Growth. We extend deep gratitude to the Center for enabling this work. Measuring Women Entrepreneurs’ Financial Health 36 Endnotes 1  Women-centered design (WCD) is a practical ap- 10  Prina, Silvia. 2015. “Banking the poor via savings ac- proach to developing products and services that counts: Evidence from a field experiment.” Journal of reflect the specific needs and circumstances of Development Economics. https://www.sciencedirect. women-led small businesses. It recognizes that com/science/article/abs/pii/S0304387815000061. women often encounter different challenges than 11  Jones, Kelly, and Eric Gong. 2021. “Precautionary men in developing markets, such as limited access savings and shock-coping behaviors: Effects of to credit, land, or guarantors; legal or administrative promoting mobile bank savings on transactional hurdles; and social expectations around roles and sex in Kenya.” Journal of Health Economics. https:// responsibilities. By focusing on women’s experi- www.sciencedirect.com/science/article/abs/pii/ ences and constraints, CARE uses women-centered S016762962100045X. design to create solutions that are relevant, usable, and more likely to be adopted. 2  Noggle, Eric, Jacqueline Foelster, and Tess John- 12  For example: Financial Health Network. 2019. son. (2020). “A Framework for Understanding the “A Guide to Measuring Small Business Finan- Financial Health of MSME Entrepreneurs.” Center cial Health.” https://cfsi-innovation-files-2018. for Financial Inclusion. https://www.centerforfinan- s3.amazonaws.com/wp-content/up- cialinclusion.org/wp-content/uploads/2021/02/ loads/2019/06/12201515/Financial_Health_Net- MSME-Framework-08122020.pdf. work_Small_Business_Guide.pdf 3  Brockland, Beth, et al. (2022). “U.S. Financial Health 13  This relationship is statistically significant, as mea- Pulse: 2019 Trends Report.” Financial Health Net- sured by a chi-square test (p<.01). work. https://finhealthnetwork.org/wp-content/up- 14  This relationship is statistically significant, as mea- loads/2022/06/2019-Pulse-Trends-Report_updated. sured by a chi-square test (p<.01). pdf. 15  As measured by a chi-square test (p<.01). 4  Molenaar, Klaas, and Mathilde Bauwin. (2020). “En- hancing the Financial Health of Micro-entrepreneurs: 16  Moore, Danielle, Zahra Niazi, Rebecca Rouse, Berber Beyond a mere assessment.” Appui au Développe- Kramer. 2019. “Building Resilience through Financial ment Autonome. https://www.ada-microfinance.org/ Inclusion: A Review of Existing Evidence and Knowl- sites/default/files/2022-03/ADA_EMN_Financial- edge Gaps.” Innovations for Poverty Action. https:// Health_TechnicalReport_Sept%202021.pdf. poverty-action.org/sites/default/files/publications/ Building-Resilience-through-Financial-Inclusion-En- 5  Men were interviewed as part of this survey as well, glish.pdf. but due to sample size constraints, only insights from female respondents are presented in this re- 17  Janzen, Sarah, and Michael Carter. 2018. “After the port. Drought: The Impact of Microinsurance on Con- sumption Smoothing and Asset Protection.” National 6  The study is not a randomized controlled trial; find- Bureau of Economic Research. https://www.nber.org/ ings will be indicative rather than causal. papers/w19702. 7  Asian Development Bank (2020); IFPRI (nd); OECD 18  McKenzie, David, and Christopher Woodruff. (2015). (2021); World Economic Forum (2023); World Bank “Business Practices in Small Firms in Developing (2021) Countries.” National Bureau of Economic Research. 8  Madgavkar, Anu, et al. (2020). “COVID-19 and Gen- https://www.nber.org/system/files/working_papers/ der Equality: Countering the Regressive Effects.” w21505/w21505.pdf. McKinsey & Company. https://www.mckinsey.com/ 19  Dupas, Pascaline, and Jonathan Robinson. 2013. featured-insights/future-of-work/covid-19-and-gen- “Why Don’t the Poor Save More? Evidence from der-equality-countering-the-regressive-effects. Health Savings Experiments.” American Economic 9  Barber, Lindsay. (2020). “The pandemic has hit fe- Review 103 (4): 1138–1171. https://www.aeaweb. male entrepreneurs hard.” Wired. https://www.wired. com/story/pandemic-female-entrepreneurs/. Measuring Women Entrepreneurs’ Financial Health 37 org/articles?id=10.1257/aer.103.4.1138. and-work-voices-women-and-men. 20  Aker, Jenny, and Christopher Ksoll. 2016. “Can 30  Jayachandran, Seema. 2020. “Social Norms as mobile phones improve agricultural outcomes? Evi- a Barrier to Women’s Employment in Developing dence from a randomized experiment in Niger.” Food Countries.” National Bureau of Economic Research. Policy 60: 44-51. https://www.sciencedirect.com/ https://www.nber.org/papers/w27449. science/article/abs/pii/S0306919215000330. 31  Delecourt, Solène, and Anne Fitzpatrick. 2021. 21  Wiseman, Eleanor. 2023. “Border Trade and Infor- “Childcare Matters: Female Business Owners and mation Frictions: Evidence from Informal Traders the Baby-profit Gap.” Management Science. https:// in Kenya.” Working Paper. https://www.povertyac- papers.ssrn.com/sol3/papers.cfm?abstract_ tionlab.org/evaluation/impact-mobile-based-mar- id=3830932. ket-information-informal-cross-border-trading-ken- ya-and-uganda. 32  UN Women. 2021. “Measuring Time Use; An Assess- ment of Issues and Challenges in Conducting Time- 22  The use of digital tools for business excludes digital use Surveys with Special Emphasis on Developing finance which was discussed in previous sections. Countries.” https://data.unwomen.org/sites/default/ 23  As measured by Pearson’s correlation (p<.01). files/documents/Publications/Measuring%20 time%20use.pdf. 24  Campos, Francisco, et al. (2019). “Unlocking the Potential of Women’s Businesses in Africa.” World 33  This may differ by age. The data suggests that Bank Group. https://openknowledge.worldbank.org/ younger women are more likely to want more time server/api/core/bitstreams/fc71f257-f7c7-5c22- for their business, compared to older women. In con- b0e2-8809955bb650/content. trast, as women age, they are more likely to indicate wanting more time for personal use. 25  Seftel, Rachel. (nd). “Building confidence: A key to women’s business success.” Cherie Blair Foundation 34  This is aligned with evidence from Khanna and Pan- for Women. https://cherieblairfoundation.org/news- dey (2024) which shows that in India, mothers-in- list/building-confidence. law have a significant impact on whether a woman enters the labor force. Conversely, it also shows that 26  Our confidence index consists of a series of do- when household burdens are shared, women are main-specific questions measuring confidence relat- more likely to work. ed to business activities and practices, similar to the Women’s Empowerment in Agriculture Index (WEAI) which measures confidence and agency specifically for women participating in agricultural activities. The full list of questions may be found in the annexes. 27  For example, Münch, Scheifele, and Bouziri (2023) find that in Tunisia, establishing a consortium of women entrepreneurs led to improvements in confi- dence, management practices, and profit. Similarly, Asiedu et al. (2023) find that offering online network- ing opportunities to women entrepreneurs increases business innovation and profits. 28  Greene, Meghan, and Riya Patil. 2023. “Under- standing the Mental-Financial Health Connection.” Financial Health Network. https://finhealthnetwork. org/research/understanding-the-mental-finan- cial-health-connection/. 29  International Labour Organization and Gallup, Inc. 2017. “Towards a Better Future for Women and Work: Voices of Women and Men.” https://www.uat. ilo.org/publications/towards-better-future-women- Measuring Women Entrepreneurs’ Financial Health 38 Annex: Questionnaire Text Socio-demographic Characteristics QUESTION  RESPONSE Single, never married                                             Married What is your current marital status?  Divorced/separated                               Widowed   Cohabitating No formal schooling Some primary school Completed primary school What is your highest educational qualification?  Some secondary school Completed secondary school College or above Some other qualification, please specify Self Who is the head of your household? Spouse Someone else, please specify How many children are in your household? [numeric] Do you take care of any children, elderly adults, or disabled household Yes members on a daily basis? No Business Characteristics QUESTION RESPONSE How many businesses do you own?  [numeric] Garment and textile Farming and agriculture Food/beverage General merchandise In which sector does your primary business operate?  Hospitality Manufacturing Retail/sales Other, please specify How long has your primary business been in operation (in completed Less than 1 year years)?  [numeric] In the past 12 months, how many employees (including family members) worked for pay in your primary business? [numeric] How many of these employees are men? [numeric] How many of these employees are women? [numeric] On average, what are your employees’ daily wages? [numeric] In the past 12 months, how many people (including family members) worked for your primary business for no pay?  [numeric] How many of these people are men? [numeric] Measuring Women Entrepreneurs’ Financial Health 39 QUESTION RESPONSE How many of these people are women? [numeric] Yes, in my name only Yes, in someone else’s name only Is your primary business registered formally? Yes, jointly in my name with someone else No In a typical month, how many unique customers do you receive for your primary business? [numeric] How many suppliers do you work with for your primary business? [numeric] In a typical month, what is the average amount of revenue you earn from your primary business? [numeric] In a typical month, what is the average amount of money you spend on your primary business? [numeric] Financial Inclusion QUESTION RESPONSE Yes Do you currently have an account at a bank? No With which institution is this account?   Yes Do you have a separate account at a bank for your business? No With which institution is this account?   Yes Do you have a mobile money account? No With which institution is this account?   Yes Do you have a separate mobile money account for your business? No With which institution is this account?   Yes, by myself Do you own a mobile phone? Yes, a shared phone No Yes Is the phone a smart phone? No How many times have you borrowed money for business purposes in the past 12 months? Please include any loans you currently have.  [numeric] From a bank or other formal financial institution From family, friends, or relatives From a money lender From where did you borrow this money?  From an employer From a savings group Other, please specify  Very concerned Considering your current or most recent loan, how concerned are you about your ability to repay the money you borrowed? Somewhat concerned Not concerned Yes Were you satisfied with your last business loan (taken out at any time)? No I have never taken out a business loan Measuring Women Entrepreneurs’ Financial Health 40 QUESTION RESPONSE Decreased interest rate Increased loan period Decreased loan period What would improve your experience with the loan? [Do not read options Different loan officer aloud] Increased loan amount Decreased loan amount An add-on service or incentive Other, please specify Yes Do you think about whether you can repay a loan before taking out a loan? No Debt load Sales or revenue How do you determine whether you can repay a loan? [Do not read options aloud]  Profit Projected business growth Other, please specify Savings account Current account Credit card Debit or ATM card Digital payments or QR codes What other financial products are you using? Electronic point-of-sale system Investment products like stocks, shares, and bonds Business insurance Health insurance Buy now, pay later Other, please specify Savings account Current account Credit card Debit or ATM card Digital payments or QR codes What other financial products do you want to use, but are not using currently? Electronic point-of-sale system Investment products like stocks, shares, and bonds Business insurance Health insurance Buy now, pay later Other, please specify Measuring Women Entrepreneurs’ Financial Health 41 Financial Resilience QUESTION RESPONSE Access personal savings Access savings set aside for my business Cut household spending Reduce business operating costs Reduce my salary Delay staff salary Delay bill payments Sell household asset Imagine that tomorrow you discover that most of the equipment you need Sell business asset to operate your business has been stolen. What would you do to deal with Work overtime or take an extra job the financial loss? [Do not read options aloud] Claim support from the government Borrow from family or friends Take loan from informal savings club Take loan from informal moneylenders Take loan from a bank Seek advance from clients Approach indebted clients Claim insurance  Other, please specify Less than a week At least a week In the case of loss in your business, how long could you continue to cover your business expenses, without borrowing any money? At least one month At least three months Six months or more Business Practices QUESTION RESPONSE Yes, written records Do you keep written or digital financial records for your business?  Yes, digital records No, I do not keep records Me An employee Who maintains these records? External professional accountant Someone else (please specify) Yes Do you keep financial records for your household? No Yes Do you keep your household and business financial records separate? No Yes Do you save or keep money aside to grow your business? No Measuring Women Entrepreneurs’ Financial Health 42 QUESTION RESPONSE At a bank or formal financial institution In my mobile money account Where do you keep savings for your business? With a savings group Informally Other, please specify Visited market/a competitor to check their pricing and/or products Offered limited time offer/promotion for product/service Advertised business or product Participated in exhibition/road show/association meetings Which of the following activities have you undertaken over the past 12 Engaged mentors or professionals for business advice months? Saved or invested money Explored new products/services Enrolled in a training program Visited a business association for guidance Other, please specify Online articles & tools for entrepreneurs        Social media Online videos Online courses/e-learning In the past 12 months, have you used any of the following online/digital resources for business purposes? Online forums Online marketplaces (e-commerce websites) Online accounting platforms Online coupons, promotions, and group discounts Other, please specify Yes Do you have a business goal? No Develop a business plan (including marketing and financial plan) Visit market / competitor to check inventory and pricing Offer limited time discount or promotion for product / service Advertise business or product Participate in exhibition / roadshow / association meetings Engaged mentors or professionals for business advice Continue with same revenues or profit Increase revenues or profits Acquire more customers What goals do you have for your business? [Do not read options aloud] Acquire more suppliers Improve product/service quality Increase number of products/ services Increase access to international markets Expand to online market/digital channel Increase number of workers/employees Use digital services for business management (payments, recordkeeping, personnel management) Expand physical location Begin exporting products or services Other, please specify Measuring Women Entrepreneurs’ Financial Health 43 QUESTION RESPONSE I have not taken steps to achieve my goal Accessed finance Developed a business plan Saved or invested money What steps have you taken to achieve your goals? [Do not read options Expanded inventory aloud] Engaged in upskilling activity Expanded my network Accessed new markets Hired new staff Other, please specify Very confident Somewhat confident How confident are you in your ability to meet your business goals? I’m not sure Somewhat unconfident Very unconfident Decision-making QUESTION RESPONSE Me My spouse Which individuals (including yourself) provide input into how your A family member business is run? A coworker A friend Other, please specify relationship How much input does [INDIVIDUAL] have on the day-to-day decisions Express opinion about your business? Make final input Express opinion How much input do you want [INDIVIDUAL] to have on the day-to-day decisions about your business? Make final input No input How much input does [INDIVIDUAL] have on the large decisions about Express opinion your business? Make final input Express opinion How much input do you want [INDIVIDUAL] to have on large decisions about your business? Make final input No input Me My spouse Are there other individuals you wish provided input on the day-to-day A family member decisions about your business? A coworker A friend Other, please specify relationship Me My spouse Are there other individuals you wish provided input on large decisions A family member about your business? A coworker A friend Other, please specify relationship Measuring Women Entrepreneurs’ Financial Health 44 Confidence and Self-efficacy QUESTION RESPONSE Completely agree Agree I have the skills I need to operate and grow my business. Neither agree nor disagree Disagree Completely disagree Completely agree Agree I have the financial resources I need to operate and grow my business. Neither agree nor disagree Disagree Completely disagree Completely agree Agree I am confident in my ability to make decisions about my business on my own. Neither agree nor disagree Disagree Completely disagree Completely agree Agree I feel prepared for any unplanned event that might negatively affect my business. Neither agree nor disagree Disagree Completely disagree Completely agree Agree I am confident in my ability to increase my client/consumer base. Neither agree nor disagree Disagree Completely disagree Completely agree Agree I am confident in my ability to select suppliers that will yield the best price for my business.  Neither agree nor disagree Disagree Completely disagree Completely agree Agree I have a network (outside of friends and family) I can rely on for business advice and non-financial support. Neither agree nor disagree Disagree Completely disagree Completely agree Agree I can identify institutions and individuals for financial support when I have an investment opportunity. Neither agree nor disagree Disagree Completely disagree Completely agree Agree I have the skills to use digital technology to operate and grow my business. Neither agree nor disagree Disagree Completely disagree Measuring Women Entrepreneurs’ Financial Health 45 Quality of Life QUESTION RESPONSE Very satisfied Somewhat satisfied How satisfied are you with the current state of your household affairs?  Not sure Somewhat unsatisfied Very unsatisfied Very satisfied Somewhat satisfied How satisfied are you with the current state of your financial affairs?  Not sure Somewhat unsatisfied Very unsatisfied Very satisfied Somewhat satisfied How satisfied are you with the current state of your business?  Not sure Somewhat unsatisfied Very unsatisfied All the time / every day How often do you worry about your ability to complete your household duties? Sometimes / a few times a month Never All the time / every day How often do you worry about your finances? Sometimes / a few times a month Never All the time / every day How often do you worry about your business? Sometimes / a few times a month Never More time Do you wish you spent more, less, or the same amount of time on household activities? The same amount of time Less time More time Do you wish you spent more, less, or the same amount of time on managing finances? The same amount of time Less time More time Do you wish you spent more, less, or the same amount of time on your business? The same amount of time Less time More time Do you wish you spent more, less, or the same amount of time on leisure or personal care activities? The same amount of time Less time Yes Are you able to adjust your daily work schedule as needed to balance work, household responsibilities, and personal time? Sometimes No Measuring Women Entrepreneurs’ Financial Health 46
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About CARE: Founded in 1945 with the creation of the CARE Package®, CARE is a leading humanitarian organization fighting global poverty. CARE places special focus on working alongside women and girls. Equipped with the proper resources women and girls have the power to lift whole families and entire communities out of poverty. In 2023, CARE worked in 109 countries, reaching 167 million people through more than 1,600 projects.

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The Mastercard Center for Inclusive Growth advances equitable and sustainable economic growth and financial inclusion around the world. The Center leverages the company’s core assets and competencies, including data insights, expertise, and technology, while administering the philanthropic Mastercard Impact Fund, to produce independent research, scale global programs, and empower a community of thinkers, leaders, and doers on the front lines of inclusive growth. For more information and to receive its latest insights, follow the Center on LinkedIn, Instagram and subscribe to its newsletter.