EBRD Director: “Life Events” Cut Women’s Business Activity by Nearly 30%
Disproportionate family responsibilities and «life events» can reduce business activity for women entrepreneurs by nearly 30%, according to Zsuzsanna Hargitai, Managing Director for SME Finance and Development at the European Bank for Reconstruction and Development (EBRD).
Speaking at the Unlocking Women’s Potential plenary session, Hargitai argued that marriage, motherhood, and other care duties continue to limit women’s economic opportunities, stating that investment in care infrastructure must be a priority for institutions serious about equal opportunity.
The Economic Cost of Care
Hargitai highlighted the stark contrast in how personal milestones affect male and female business owners. «Things in life only seem to happen to women,» she said, noting that these events have measurable negative consequences for female-led enterprises.
Referencing data from a study conducted in Morocco, Hargitai pointed out that major life events result in a 27% to 30% drop in business activity for women. She emphasized that financial support alone is insufficient without addressing the structural burden of care that falls disproportionately on women.
Non-Financial Support Systems
The plenary session, formally titled Unlocking Women’s Potential: The Strategic Value of Non-Financial Services, focused on the broader support systems required for business growth.
Panelists from Kazakhstan and Uzbekistan, including representatives from KMF Bank, Hamkorbank, and business owner Maria Portnova, echoed Hargitai’s sentiments. They stated that non-financial services such as training, mentoring, and market access are as critical as lending. These services assist women in navigating regulatory challenges and scaling their operations sustainably.
Commercial Viability of Women-Led SMEs
Despite these structural barriers, financial institutions report that women-led Small and Medium Enterprises (SMEs) remain a vital business segment.
Arif Ali, CEO of Kyrgyz Investment and Credit Bank (KICB), credited the EBRD with supporting the bank’s first women-focused lending initiative in 2021. Since then, KICB has financed over $200 mln in loans using over $600 mln in credit resources.
Ali reported that women now account for 44% of the bank’s borrowers and generate 33% of its revenue.
«Focusing on women is a key part of our strategy. It is not a sidelined business,» Ali said, citing the sector’s positive impact on local economies and family incomes.
