Women Entrepreneurs in Latam: Leadership, Innovation, and Growth
Women entrepreneurs in Latam drive innovation, yet face barriers in funding and technology. Despite a 27% participation rate, gender gaps persist, limiting growth. Investing in them is key to economic progress.
Three aspects characterize women entrepreneurs in Latin America (Latam): their natural drive for entrepreneurship, their innate leadership, and their potential to transform communities. However, despite having these three qualities, the gap in access to technology and financing to implement or scale their emerging businesses still persists.
The percentage of women entrepreneurs in Latin America (Latam) remains at 27%, and the three countries in the region with the highest percentage of women in the initial phase of business are Colombia, Panama, and Guatemala.
Starting a business for a woman in the region is difficult. The most recent Global Entrepreneurship Monitor report determined that women entrepreneurs in Latam continue to face challenges in fully integrating into the business world.
Challenges for Gender Equality Among Women Entrepreneurs in Latam
Odille Sánchez, Leader of the Center of Excellence for Science and Technology-Based Entrepreneurship at Tecnológico de Monterrey, stated that “Latin America already has what other regions do not: the natural drive of women to start their own businesses. But the challenge lies in how to take that drive to larger companies, as well as to the ecosystem of tech startups,” explained Sánchez.
In a study in which Sánchez participated, it was found that the lack of financial resources for women entrepreneurs in Latam prevents them from acquiring technology, especially for production and manufacturing, which is crucial in the value creation process. This limitation leads to the implementation of more manual processes or the use of low technology.
The gender gap remains one of the main challenges facing the business sector in Latam, to the extent that the Global Entrepreneurship Monitor report indicates that it will take 53 years for the region to achieve full equality in leadership roles.
Success Stories: Women Entrepreneurs Making a Difference
The gap does not stop women entrepreneurs in Latam, and in some countries, there are already projects and business incubators that support female entrepreneurship, where negative stereotypes have a strong influence. Espacio Mujeres Tec, Incubadora Feminista in Argentina, and Incuba Mujer in Chile are some examples.
Fery Palma is also an example of a successful woman entrepreneur in Latam. She is the CEO and founder of Tipis Palma and Palmas Pocket. She has demonstrated how creativity can open doors in underexplored industries in a country where only 35% of SMEs are led by women.
Palma (2024) stated the following:
“For me, supporting women in their businesses and employing them in my projects is a conscious decision. I grew up watching my mother start over after her divorce, and that experience made it clear to me how important it is for a woman to have economic independence. I know that when a woman generates her own income, she has the ability to make her own decisions without depending on anyone. That gives her freedom and strength to move forward in any aspect of her life. When a business truly excites its founder, money comes as a consequence. That’s why I always recommend to those who want to start a business to look for something that makes them happy and that, at the same time, has value for others.”
Investing in Women Entrepreneurs: A Key to Latam’s Development
During 2024, venture capital investment in Latam reached $4.2 billion, representing a 27% increase compared to the previous year. However, there is no mention of how much capital was available for women entrepreneurs in Latam.
Women’s entrepreneurial projects in Latam contribute to gender equality and female empowerment, but everything depends on their access to resources that allow them to make strategic decisions and develop the skills necessary to achieve their personal or business goals.
Latam faces the challenge of understanding that this empowerment is not an isolated event, but rather it encompasses women’s professional and personal lives, institutional changes, and the creation of gender awareness in society.