The role of finance in the development of female entrepreneurship: A systematic literature review

Abstract

Purpose: Access to financing is crucial for the establishment, scaling, and sustainability of women-led businesses. This study aims to identify the financial barriers women face when founding companies and to analyse how these obstacles affect business growth and development.

Methodology: A systematic literature review was conducted using the PRISMA 2020 methodology, ensuring a rigorous, transparent, and unbiased selection and analysis of relevant academic studies on the topic.

Findings: The results reveal persistent structural and systemic barriers that limit women's access to financing, including gender biases in financial institutions, lack of collateral, and restricted access to investment networks. These constraints negatively impact innovation capacity, competitiveness, and business sustainability in women-led enterprises. The study also uncovers notable regional disparities in financial access, underscoring the role of contextual factors in shaping entrepreneurial outcomes.

Research limitations: The review is limited to published academic literature in selected databases and may not fully capture grey literature or regional reports. Future research could incorporate longitudinal or empirical studies to deepen understanding of causal relationships and policy impacts.

Practical implications: The findings support the need for tailored financial instruments, inclusive banking practices, and gender-responsive funding programs that address the specific needs of women entrepreneurs. Policymakers and financial institutions should collaborate to dismantle systemic barriers and foster an enabling environment for inclusive business growth.

Originality/value: This study provides a novel and updated synthesis of the literature by incorporating recent findings and offering a comparative analysis across geographical regions. It highlights underexplored contextual differences in access to finance and identifies pressing research gaps, contributing original insights to the discourse on gender and entrepreneurship.