In many of the world’s fastest-growing economies, women are launching businesses, employing others, and contributing to GDP at unprecedented levels. In Latin America and the Caribbean, they own nearly half of all businesses. In East Asia and the Pacific, it’s 44%. In Sub-Saharan Africa, 30%.
But there’s a catch: a vast number of these women are cut off from the digital tools that now define modern entrepreneurship.
And the price of that digital exclusion? A staggering $5 trillion in lost global GDP, according to new research.
“If policymakers are serious about unlocking women’s economic potential, they must bridge this divide,” warns a joint report by the Cherie Blair Foundation for Women and the World Bank.
Owning a Phone Isn’t Enough — It’s What Comes With It
Despite what you might expect, 92% of women entrepreneurs in low – and middle – income countries (LMICs) do own smartphones. But that doesn’t mean they’re online in any meaningful way. The report reveals 45% of these women lack regular internet access, hindered by unaffordable data plans and unreliable networks.
Without stable connectivity, accessing e-commerce platforms, mobile payments, and productivity-boosting AI tools becomes nearly impossible.
Adding to this, women in LMICs are 15% less likely than men to use mobile internet, creating a digital gender gap that restricts everything from marketing reach to revenue generation.
And there’s another factor that’s rarely spoken of, online harassment. An alarming 57% of women entrepreneurs report having experienced some form of online abuse, discouraging their participation in digital spaces and damaging their business prospects.
Red Tape and Discrimination Keep Women Out of the Formal Economy
Even when women manage to break into the business world, legal and regulatory barriers quickly emerge.
According to the World Bank’s Women, Business and the Law report, in 96 of 190 economies, there is no legal protection preventing gender-based discrimination in credit access. In some regions, women still need a male relative’s permission to start a business.
Women entrepreneurs are more likely than men to face intimidation or discrimination when applying for permits or loans, the report states.
Complex bureaucracy, lack of government-backed training, and financial exclusion make it even harder for women to scale their ventures and ultimately reduce their ability to contribute to national economies.
The Economic Case Is Clear — Why Aren’t We Acting?
This isn’t just a gender issue. It’s a growth issue.
A 2019 study by the Cherie Blair Foundation and Boston Consulting Group found that if women had equal opportunities to participate in entrepreneurship, global GDP could expand by up to $5 trillion — roughly the size of Japan’s economy.
The report also highlights that women entrepreneurs with regular internet access are 2.5 times more likely to use AI tools, driving both innovation and efficiency. In addition, women who engage with male customers are three times more likely to receive digital payments, pointing to the potential of inclusive digital transactions.
What Needs to Happen Now — A Policy Blueprint
So, how do we move from potential to progress? Experts say it comes down to five critical actions:
- Reform the Legal Framework
- Repeal laws requiring male approval for business registration.
- Simplify the business registration process.
- Ensure women have equal access to microloans and grants.
- Tackle Online Harassment Head-On
- Strengthen laws protecting women from digital abuse.
- Hold social platforms accountable for harassment.
- Provide training in cybersecurity and online safety.
- Expand Digital Infrastructure
- Invest in low-cost, reliable internet access.
- Offer subsidies or financing for smartphones and data plans.
- Encourage telecom companies to expand coverage in rural areas.
- Build Digital Skills for the Future
- Launch national digital literacy programs tailored to women.
- Provide training in AI, e-commerce, and mobile finance.
- Connect women with mentors and networks.
- Drive Public-Private Partnerships
- Offer tax incentives to companies supporting women-led businesses.
- Partner with banks to create women-focused financial products.
- Support NGOs and tech companies to deliver inclusion programs at scale.
Closing the Gap Isn’t Charity — It’s Smart Economics
Women entrepreneurs have already proven their resilience in some of the world’s toughest markets. What they need now is support in the form of digital tools, legal protections, and access to finance to reach their full potential.
Policymakers must act now not only to ensure gender equality but also to harness the economic benefits of inclusive entrepreneurship, the report urges.
Closing the digital divide is no longer optional. It’s the key to unlocking growth, equity, and innovation on a global scale.
