Latin America & Caribbean

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"Entrepreneurship is a fundamental element for innovation dynamics, employment generation as well as productivity generation and economic growth (van Praag & Versloot, 2007). However, women are less likely to start a business (Parker, 2009). Albeit this trend has been slowly changing in recent years (GEM, 2021), female founders seem to be losing out, particularly in the high-growth venture. Brazil, Chile, Colombia, and Mexico have some of the most dynamic entrepreneurial activities in the world. However, particularly in Brazil and Chile, the rate of early-stage entrepreneurship is significantly lower for females than for males (GEM, 2021). The fact that the gap in entrepreneurship is visible not only in general but especially among ambitious and high-growth start-ups is worrisome. This report presents a diagnosis of the gender finance gap for start-ups that applied to accelerators, that is, start-ups that operate mostly in the technology sector and have high-growth ambitions. The finding of this report matters to female founders trying to grow their venture, investors who might miss out on more efficient investment opportunities by overlooking female-led ventures, and policy makers who steer macroeconomic policy decisions."


"In recent decades, the number of female entrepreneurs has grown substantially, particularly in low and middle-income countries. However, the characteristics and performance of female-led ventures differ significantly from those of ventures led by men. A potential reason for this is the lack of clearly defined venture goals, including the profit margin that ventures target. We study the relationship between gender and target margins using a large dataset of ventures located in Latin America and the Caribbean and Sub-Saharan Africa. We find that ventures led only by women are almost five percentage points less likely than male-led ventures to establish target margins, even after controlling for observable venture and founder characteristics. In addition, ventures with only female founders tend to set lower target margins than those with only male founders. These results suggest that policymakers, accelerators, and incubators, can play a major role in supporting female entrepreneurs as they grow their businesses by encouraging women to set clear and realistic target margins to be more successful at raising funds for their ventures."



Tijuana, Mexico