Mastercard Index of Women Entrepreneurs
demands innovative, gender-specific support for women throughout
pandemic recovery
Women across the world have been disproportionally impacted by
the Covid-19 pandemic – a staggering 87% of women business owners
say they have been adversely affected. Over representation in
sectors hardest hit by the economic downturn, the pronounced
digital gender gap in an increasingly virtual world, and the
mounting pressures of childcare responsibilities are only a few
factors that have left women particularly vulnerable.
In tackling this stark disparity and unlocking the fullest
potential of women in business, the Mastercard Index of Women
Entrepreneurs (MIWE) 2020 report findings make a compelling case
for building on targeted gender-specific policy best practices
internationally.
Gender-targeted policies drive forward women’s
entrepreneurial success
Now in its fourth year, the MIWE highlights the vast
socio-economic contributions of women entrepreneurs across the
world, as well as providing insight on the factors driving and
inhibiting their advancement. Through a unique methodology –
drawing on publicly available data from leading international
organisations, such as the OECD and International Labour
Organization – MIWE 2020 includes a global ranking on the
advancement of women in business in pre-pandemic conditions across
58 economies, representing almost 80% of the female labour
force.
MIWE 2020’s top performing economy is a prime example of
gender-specific support mechanisms having swift and significant
results. For the first time in the MIWE’s history, Israel tops the
charts as the best economy for women entrepreneurs worldwide,
advancing from 4th place in 2019. With an ambition to double the
number of female entrepreneurs within two years, Israel’s success
has been driven by a focussed institutional backing for SMEs – its
‘Support for SMEs’ ranking catapulted from 42nd place in 2019, to
1st in 2020. Similarly, Switzerland has advanced from 11th position
in 2019, to 3rd overall in 2020, spurred on by sharp improvement in
government-led support for SMEs (up 37% from 2019) and a resulting
uptick in cultural perceptions of entrepreneurialism (up 45% from
2019).
Covid-19 has posed set-backs, but also opportunity
MIWE 2020 also provides initial analysis on the ramifications of
Covid-19 on women at work, and draws out effective support
policies. Although differing from economy to economy, those proving
most effective include expansive relief measures for SMEs – from
wage subsidies to furlough schemes and fiscal bailouts – as well as
state childcare support.
Crucially, the report presents an optimistic outlook for the
future of women entrepreneurs. It indicates that the pandemic could
prove a catalyst for exponential progress for women in business and
an opportunity to course-correct inherent gender bias. It draws on
a number of points to illustrate this, notably:
- The Covid-19 era presents an empowering narrative for women in
leadership, providing inspiration at a time when cultural barriers
and fear of failure still impede some women from business ventures.
Covid-19 has highlighted women’s ability to lead under
extraordinary circumstances. Female world leaders such as Prime
Minister Jacinda Ardern of New Zealand, Chancellor Angela Merkel of
Germany and Prime Minister Sanna Marin of Finland have presided
over some of the most successful efforts in containing Covid-19
while instilling order, assurance, trust and calm. With almost half
(47.8%) of female entrepreneurs report being driven by a desire to
contribute to the greater societal good, the impact these leaders
have cannot be underestimated.
- Women in business are already demonstrating marked
adaptability, despite extensive barriers to success. On the
frontline, women business owners are adapting to the new world of
work with renewed confidence. 42% have shifted to a digital
business model and 34% have identified new business opportunities
since the pandemic.
- The ‘next normal’ presents a once in a lifetime opportunity to
remove existing barriers, driving greater gender participation and
parity for women in business. As well as magnifying severalfold the
many disparities women in business face – from the digital gender
gap to financial inclusion – Covid-19 has been an intense stimulus
for structural progress. For example, prior to the pandemic, the
financial global gender disparity had remained static for almost a
decade. However, Covid-19 has propelled progress in this area -
with the UK government setting up bank accounts for over 1.2
million people in just two days at the height of the pandemic, and
over 11 million informal workers in Brazil applied for saving
accounts in order to receive emergency government funds.
The report notes that implications of these observations are
profound. It further demonstrates the untapped value of women as
leaders and, critically, highlights the role of the pandemic in
expediating progressive solutions. Leveraging this momentum and
championing gender-specific initiatives will be critical to
realising women’s potential and winding down the $172 trillion lost
globally (World Bank) due to the differences in lifetime earnings
between women and men.
Mastercard’s commitment to driving forward inclusion
Sue Kelsey, Executive Vice President, Global Consumer
Products and Financial Inclusion, Mastercard said: “A crisis
will always reveal vulnerabilities in the system, and Covid-19 has
done that in spades. We have seen the staggering extent of the
disparity women in business face. But unlike any other economic
downturn, Covid-19 has also paved the way for considerable progress
and we have seen what we can be achieved when priority is given.
However, are we brave enough to seize the opportunity, to listen to
the data outlined in MIWE 2020 and act accordingly? Or will we
cling on to a failed system, and allow the pandemic to shave off
progress to date?
“These are critical questions decisions makers need to have at
the fore as they plan their road to economic recovery.
Collectively, governments, financial services and business
organizations need to ensure they are offering the right support
programmes, solutions and innovation to enable female entrepreneurs
the opportunity to thrive in the world’s new normal.”
The MIWE report is just one component in Mastercard’s broader
mission to drive forward the advancement of the disconnected and
disadvantaged, with a particular commitment to support and help
advance female entrepreneurs and small businesses through
initiatives such as its Start Path and Path to Priceless
programmes. In 2020, Mastercard expanded its worldwide financial
inclusion commitment, pledging to bring a total of one billion
people and 50 million micro and small businesses into the digital
economy by 2025. As part of this effort, there will be a direct
focus on providing 25 million women entrepreneurs with solutions
that can help them grow their businesses, through a range of
initiatives crossing funding, mentoring and the development of
inclusive technologies.
Download the Mastercard Index of Women Entrepreneurs 2020 report
and supporting assets here. Read more about our efforts to engage,
enable and empower women here.
MIWE methodology
The Mastercard Index of Women Entrepreneurs provides
world-leading analysis on how women in business are progressing
across 58 global economies. Representing almost 80 percent of the
international female labour force, the MIWE provides deep-dive
analysis on the socioeconomic factors propelling and inhibiting
their success.
Through a unique methodology – involving detailed analysis
across 12 indicators and 25 sub-indicators spanning Advancement
Outcomes, Knowledge Assets & Financial Access, and Supporting
Entrepreneurial Conditions – the index ranks 58 individual
economies according to performance over the past year. Aggregating
these scores, the index is able to provide an overall grading of
how successful individual economies are in advancing female
entrepreneurialism in comparison to peers in pre-Covid
conditions.
This year’s report also provides additional analysis on the
early ramifications of emergency measures implemented by
governments and business for women entrepreneurs in response to the
Covid-19 pandemic across 40 global economies.
The Mastercard Index of Women Entrepreneurs findings provide
clarity and understanding for governments, policymakers,
stakeholders, businesses and individuals alike wishing to
understand the crucial role of women in business and apply
learnings from global economies.
About Mastercard
Mastercard (NYSE: MA) is a global technology company in the
payments industry. Our mission is to connect and power an
inclusive, digital economy that benefits everyone, everywhere by
making transactions safe, simple, smart and accessible. Using
secure data and networks, partnerships and passion, our innovations
and solutions help individuals, financial institutions, governments
and businesses realize their greatest potential. Our decency
quotient, or DQ, drives our culture and everything we do inside and
outside of our company. With connections across more than 210
economies, we are building a sustainable world that unlocks
priceless possibilities for all.
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Rose Beaumont | +44 (20) 7557 5199| Rose.Beaumont@mastercard.com
Julia Monti | +1 (914) 249 6135| Julia.Monti@mastercard.com
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