According to a research by Graça Machel Trust and New Faces News Voices, a majority of women are still not ready to access formal financing due to lack of collateral as well as high-interest rates.
New Faces New Voices Lead Researcher and Kenya Director Andia Chakava, however, says women entrepreneurs have a negative perception towards external financing, as they do not believe they have the requirements to access financing from banks and other financial institutions.
“I would say a minimum of 50 percent of women across all the countries in the regions said they are part of a savings group. So there is a lot of ‘Chamas’ going around that is helping to support business starting and growth,” said Chakava in interview with Capital FM Business.
And due to lack of the high cost financing, Chavaka says a lot of women end up remaining at the micro and small medium enterprises compared to their male counterpart. Read more. Source | Capital FM Kenya