Uruguay, Latin America: Women make only 8% of investments

RIO DE JANEIRO, BRAZIL – Women represent more than half of Uruguay’s total population (52%). However, the number drops in the economically active population and even more so in the proportion of female entrepreneurs. In the latter case, the statistic drops to 9.9%.

This drop is explained by the fact that women encounter various barriers to entrepreneurship, for example, less access to external financing due to lack of guarantees and lack of access to marketing networks due to isolation. Both are stereotypes that fuel the gender gap.

To encourage entrepreneurship among women, the work of initiatives such as Mujeres Inversoras (“Women Investors”) is essential. It is a program to boost their productive activity, train women, and include them in a network of entrepreneurs and investors throughout the country.

But Mujeres Inversoras also encourages those who want to invest and do not do so, again due to limitations -sometimes self-imposed- as a consequence of the gender gap. In fact, in Latin America, only 8% of total investments are made by women.

According to the president of the Organization of Women Entrepreneurs of Uruguay (OMEU) -an organization that, together with SociaLab Uruguay, carries out the Women Investors program- Anabela Aldaz: “Due attention is not paid to the reasons why women with financial capacity do not invest”. And the justification that risk aversion is greater is not enough.

Aldaz pointed out that the lack of financial education is a principle for understanding the problem: “Women are used to managing a household budget but not to investing in other people’s projects,” she said.

However, it is favorable for women to be investors in startups. Based on several studies, OMEU found that women not only look for profitability when they invest but also seek to commit to the project and share its purpose.

To encourage women entrepreneurs and investors, this year, the program’s second edition will be held from August 1 to October 14.

Women who wish to participate may apply in two ways. On the one hand, as the leading entrepreneurs of their own projects -which must be formalized- in search of financing to continue developing their ventures.

On the other hand, as investors: any woman interested in investing initial capital in the projects and willing to mentor other women from their experience.

Once the registration period ends on July 10, 60 women will be selected to be trained and introduced to the world of investment. Those selected will receive training on investing and must have available capital of at least US$1,000.

With information from El Observador