How financial inclusion enables women entrepreneurs to thrive

Each person technically has the “same” 24 hours a day, but those 24 hours look vastly different for everyone. Women, especially mothers, have to juggle multiple roles daily to provide for and take care of those they love the most—their family. Depending on circumstances, they can take on the responsibility of being a provider and financial manager of their households on top of being a homemaker to make ends meet. 

A lot of women pursue entrepreneurship as their primary livelihood or a source of extra income. As a matter of fact, the majority of the 950,000 Micro, Small, and Medium Enterprises (MSME) in the Philippines are women-owned, and these operate mainly in wholesale, retail, food service, and accommodation industries. 

Tala, the world’s first fintech company for the Global Majority and a reliable partner of MSME owners, identified what motivates women to consider starting their own business through a survey that also delved into the role of financial services in enabling their business to grow and thrive.

With the innate sense to prioritize their family’s needs at all times, 56% of the respondents reported they are driven to venture into entrepreneurship to have the flexibility to care for their family while making money. They want to do something that will help alleviate their financial stresses without having to sacrifice spending quality time with their loved ones.

Following this, the survey also showed that women are motivated by personal growth, specifically the desire to be their own bosses (51%) and to challenge themselves and develop new skills (51%). By starting their own business, they are able to broaden their circles, build new relationships with their customers and business partners and connect with their fellow entrepreneurs. All these have led to women feeling more empowered and at the same time, empowering and serving others as well.

There are also many factors that hinder women-owned MSMEs to grow and reach their fullest potential, one of the most prominent ones being the lack of access to financial services and products like credit and capital, to jumpstart and/or support their chosen ventures as 55% of the respondents reported experiencing challenges in accessing financial services such as loans, savings, and lines of credit due to the following barriers: complicated application requirements and paperwork; ineligibility to apply due to age, employment status and credit history; scams; unfair payment terms and interest rates; and limited knowledge in navigating digital platforms among others.

Further, 80% of the respondents said they particularly considered taking a loan but only 29% proceeded with their application for the purpose of starting a business, and 21% to supply their existing one.

Recognizing this challenge, Tala heeds the call for more accessible financial services by providing not just merely a platform where women entrepreneurs can apply for flexible, convenient online credit, but an opportunity to take control of their finances, enhance their business, and achieve their goals. This is part of the company’s commitment to bridge the financial gap for the Global Majority and unleash their economic power.

“We have heard plenty of success stories from Tala customers who kickstarted and eventually grew their businesses with the help of our financial services. We take pride in these because it is part of our mission to be a reliable and trusted partner of entrepreneurs, especially women, in their journey to success,” said Missy Santos, Marketing Manager of Tala. 

Mom and long-time Tala customer Aimee is one of these success stories. Before discovering Tala she had already tried applying for loans from several banks to support her food stall business but due to her lack of credit history, she got rejected each time. Fortunately, she heard of Tala from a friend and decided to give it a try.

“When I got my first loan from Tala, I used the money for business purposes first. I went to the market and bought ingredients to make homemade tocino that I sold to my neighbors and friends,” she said.

(“Pagkakuha ko ng first loan ko kay Tala, nareceive ko kaagad. Pumunta ako ng palengke, ginamit ko siya for business purpose muna. Bumili ako ng ingredients para gumawa ng tocino na binenta ko sa mga kapitbahay at kaibigan ko.”)

Aimee was able to earn profit from her Php 1,000 capital that she reinvested to expand her business. With on-time repayment, she was also able to grow her loan limits. Now, she is even helping others have the same access to credit while earning extra income through Tala’s referral program. With Aimee’s hard work, her family’s financial situation has improved tremendously, and she was even able to start another business selling beauty products. 

Tala’s commitment to support women entrepreneurs transcends financial services. It also offers financial education that provides mothers, homemakers, and all aspiring businesswomen the necessary tools and knowledge to manage their finances better. As part of this, Tala will be holding another TALAkayan workshop for mothers, with the support of Spark and the Quezon City Local Government, on May 18, 2024 led by financial literacy advocate and money expert, Salve Duplito.

Tala celebrates women entrepreneurs who are also mothers, homemakers, providers, caregivers and everything in between as they take on life’s challenges head on, with grit, grace and determination. Make your financial goals come true by making Tala your reliable and trusted partner in starting and growing your business today.

This article is brought to you by Tala Philippines. 

ADVT.