Challenges Facing Female-Led MSMEs in Somalia: A Social Policy Brief

MSMEs are the backbone of Somalia’s economy and Somali women are the main drivers of the micro enterprise sector by contributing up to 60% ownership of small and micro businesses. Despite women-led MSMEs contributing significantly to the growth of the economy, women face insurmountable structural and socioeconomic challenges. Cultural and socioeconomic barriers, limited access to financing, unfavourable laws and policies, high costs of production and capacity gaps among women are some of the major challenges limiting women led MSMEs to thrive. Prioritization of mentorship and training for women in business, implementation of favourable policies and laws to foster gender and financial inclusion, setting up revolving funds for women led businesses, strengthening social protection for women entrepreneurs and boosting access to technology and financial services will ensure improvements in productivity, innovation and the overall well-being of women led MSMEs.

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