You may not believe it. But, today in Colombia a microcredit of just $1,350,000 makes the difference, so that a woman can capitalize on her business and if she does not have it, make the painful decision to close.
That is the conclusion of a survey carried out by the renowned savings and credit cooperative Fincomercio, to establish the behavior of low-amount credits in the female population, as a way to pay tribute to their strength and leadership this month. of March, which historically celebrates its day and is about to end.
The good: women’s use of microcredit
To begin with, 7 figures that reveal the educational level of the microentrepreneurs: 53% high school, 15% professional, 13% technical, 11% only have primary school, 4% technologist, 3%, non-formal courses and only 1% have specialization.
The above is not an obstacle for thousands of women to choose microcredit as their financing tool to start a business, generate employment and build their financial freedom. In that sense, the survey reveals several findings ranging from: the minimum, maximum and average amount that microentrepreneurs request to strengthen their businesses when they have been in existence for a year, the stratum to which they belong and their geographical location.
Regarding the amount requested by microentrepreneurs, the average amount is $8,100,000, the minimum amount is $1,350,000 and the maximum amount is $26,000,000. Regarding the term, the minimum is 6 months and the maximum is 56 months.
49% belong to stratum 3 and 32% are located in 2. 14% are in stratum 1. When reviewing strata 4, 5 and 6, the 3 add up to 5%.
In the last 5 years, the cooperative has observed a significant increase in microcredit applications from women. In 2023 it is 58%, while between 2019 and 2022 the average was 51%.
The 3 reasons why microentrepreneurs request loans are:
To expand your production Acquire machinery or raw materials Improve your business infrastructure by renovating premises or equipment
The bad: the 5 fears that paralyze women
This survey allows us to establish the top 5 fears that microentrepreneurs say they have:
Fear of starting from scratch Fear of failure due to lack of education Fear of social rejection Panic due to lack of capital Fear of entering a sector with a lot of competition
“This financing resource is available from any region of the country with low interest rates, financing from 1 minimum wage and a flexible application process. At the cooperative, we have committed to providing them with special attention, flexible models,” says Rodrigo Duque, credit and agricultural director of Fincomercio.
The ugly: the barriers of the system for women
According to the results, women face not only their own internal fears, but also the system barriers that hinder their access to microcredits. For example:
Limited financial inclusion: either due to lack of access or high requirements. Lack of credit history: lack of experience to demonstrate your ability to pay. Time dedicated to the home: according to ECLAC, the majority of women dedicate 7 hours a day to domestic activities and unpaid care, compared to 3.5 hours for men. Machismo and patriarchy: social attitudes that underestimate their role. Low academic training: making it difficult to develop basic business skills. Lack of empowerment: They doubt their ability to lead a successful business and control their financial and business lives. Unemployment: shortage of job opportunities to demonstrate experience and skills. Low economic resources: Women say that without money they feel isolated and lack support networks. Lack of work experience: issue that deducts points for effective loan management. Ignorance of credit conditions: the so-called fine print can lead to uninformed and dangerous financial decisions for the business.
Source: Fincomercio Communications