Primary research conducted by ConsumerCentriX as a part of the study to develop the WSME Segmentation Framework, involving over 600 formal WSMEs across Colombia, Uganda, and Pakistan provides clear evidence that women-owned and led businesses hire more women and offer better career opportunities for women employees. WSMEs report a higher proportion of women employees, with women representing 63% of full-time employees in Colombia, 56% in Uganda, and 52% in Pakistan.
These findings mirror those of research recently published in the World Bank’s Enterprise Surveys, which show that firms with women as top managers employ a significantly higher share of women in their workforce, 29% higher in Colombia, 42% higher in Pakistan, and an extraordinary 164% higher in Uganda, compared to firms led by men. A 2022 study by Madison et al. in the Strategic Entrepreneurship Journal further reinforces this point: covering 741 SMEs across 33 emerging markets, the study found that women-led firms have a substantially higher share of women both in their workforce and in management positions than those led by men.
Women employees are central to WSMEs’ business strategy. Research for the WSME Segmentation Framework found that a large majority of WSMEs view women as crucial to their future employee structure, with 80% of WSME leaders intentionally seeking to ensure strong participation of women in their workforce. WSMEs are also more likely to promote women into supervisory and managerial roles, particularly in the high-growth segment, where women are found not only on the payroll but in leadership and decision-making positions. In high-growth WSMEs, especially, women entrepreneurs’ role extends far beyond self-employment – serving as a vehicle for women’s labor market participation and leadership.
Evidence also shows that WSMEs create better working conditions for women employees. Many entrepreneurs interviewed described designing flexible and supportive workplaces from family-friendly policies to safer environments and structured training opportunities. High-growth WSMEs actively invest in strengthening employees’ business, financial, and digital skills. This mirrors findings from the European Investment Bank’s Finance in Africa series, which reports that female-led SMEs are more likely to offer formal training to employees than male-led firms. By combining flexibility, training, and mentorship, WSMEs enable women employees not only to achieve income stability but also to gain new skills and confidence. Women entrepreneurs tend to value skill development and career advancement for their teams, reflecting their own experiences of overcoming barriers to opportunity.
WSMEs are not only job creators for women, they are also enablers of better, more inclusive work, creating environments where women can balance work with family responsibilities, grow professionally, and access leadership roles. WSME leaders act as role models, expanding women’s visibility in business and cultivating the next generation of women leaders.
Learn more from the report: What Enables Her Business to Grow. A New Segmentation Framework To Unlock the Opportunity of Serving Women-Owned/Led Businesses in Emerging Markets