Empowering women entrepreneurs

According to the OECD, men aged between 30-49 years old face the fewest barriers when setting up a business. In fact, if all marginalised groups could participate in business creation at the same rate, across Europe, there would be 35 million more entrepreneurs, including over 26 million women entrepreneurs.

 In Spain alone, this would mean an additional 608,000 people starting their own businesses – 60% of whom would be female, and over half of those would be over 50.[1]

 Spain needs its entrepreneurs. Even before the Covid-19 crisis hit the country in 2020, Spain was experiencing high unemployment, most notably among young people and women. The onset of the Covid-19 pandemic led to Spain recording the worst recession in Europe, with a 10.8% contraction in terms of real GDP. The Spanish government responded with a range of measures which helped to reduce the economic shock, but large problems remain.

The challenges for women entrepreneurs

Unemployment among women in Spain stands at 17.4%, which is above the national average. Women and other marginalised groups face higher barriers to entrepreneurship due to lack of access to finance, and as a result of skill gaps, under-developed business networks and institutional barriers, such as a lack of childcare or discouraging social attitudes.

 The CEB has been working with Spain’s social bank, MicroBank, since 2008. MicroBank is the leading provider of microfinance in Europe and the only Spanish bank to work exclusively with microcredit. It is supporting women and older entrepreneurs to break down barriers to accessing finance: in 2020 the average age of its business clients was 45 years– people in this demographic often experience mid-career challenges in finding work.

 The CEB’s sixth and latest programme loan of €100 million to MicroBank aims to facilitate access to finance for small and micro businesses, women, families and immigrants. With microcredit these people can start businesses or launch a second career.  

Supporting a bright idea to shine

Nuria Loreto Sanz Lorenzo enjoyed a long career in a large telecom company in Barcelona. In 2018, having completed various training courses in furniture restoration and accessed business mentorship from a local organisation, she decided to turn her hobby of furniture restoration into a business.  

Nuria buys old antique lamps and furniture from flea markets which she refurbishes and sells to domestic and international buyers online and via social media. The pandemic boosted her business as people locked down in their homes shopped for homeware online.  

Finance from MicroBank has been instrumental in enabling Nuria to grow her business. With it she has refurbished a shed on her property to create a 90 sqm workshop for furniture renovation and storage. She has also bought a van so she can transport furniture from flea markets, and deliver items to customers. The business is now generating a sustainable profit, so Nuria plans to expand and employ a furniture restoration apprentice as well as a person to help with sales and social media.

 “When my business started to grow, I didn’t have space to manufacture all the orders”, Nuria says. “With financing from MicroBank I was able to make the renovations needed to expand my business. Now I can dedicate all the necessary resources to my business so it can continue to grow.”

Reaching more entrepreneurs

MicroBank was able to leverage the latest CEB programme loan from the CEB to generate a total of €269.4 million of investments. Cristina Gonzalez Viu, Managing Director of MicroBank, says, “The support received by the CEB has allowed us to reach more entrepreneurs, focusing on groups that have more difficulties, such as women. 

At MicroBank we don’t want funding to be an obstacle to entrepreneurship. We believe that microcredit is a key instrument for promoting the economy and generating employment.”

We are delighted to work with MicroBank supporting entrepreneurs in Spain, including many women like Nuria, to set up and grow successful businesses. 

Furthermore, MicroBank’s microcredits will contribute to progress in achieving the United Nations Sustainable Development Goal – SDG 5, namely  gender equality and empowering all women and girls”.

[1] OECD (2021) The Missing Entrepreneurs 2021