Visa believes that small businesses are anything but small. They are the heartbeat of the global economy and of the local communities they serve, representing about 90% of businesses and more than 50% of employment worldwide. But only one in three businesses are owned by a woman. This reality presents us with an opportunity to support women entrepreneurs and their potential to unlock $2.5 to $5 trillion into the global economy and become key contributors to poverty reduction.
As leaders from member economies around the world gather this week in Peru for the annual Asia Pacific Economic Cooperation (APEC) forum, a key focus will be on discussing how expanding the digitization of commerce can help advance economic priorities. Visa believes that women-led small and micro businesses (SMBs) play a pivotal role in doing just that. Visa is proud to share how Visa Foundation has progressed against its $100 million commitment to women-led businesses in APEC economies one year later.
Visa Foundation’s 2023 pledge
Last year at the APEC forum in San Francisco, Visa Foundation pledged $100 million to support underserved and women-led SMBs in APEC economies over five years. The pledge is expected to help accelerate access for underserved and women-led SMBs in APEC economies to advance digital financial inclusion, stimulate job creation, and increase access to capital to drive economic mobility.
Visa Foundation has prioritized our support of women-owned and led businesses through grants and impact investments. By building an environment that advances women and women-led SMBs, Visa and Visa Foundation are doing more than investing in inclusive economies; we are investing in a legacy of empowerment for everyone, everywhere.
Progressing against our pledge
One year later, Visa Foundation has committed over $20 million in support of women-led SMBs across APEC economies and is collaborating with and complementing the work of local partners to drive access for underserved communities.
In Latin America, Visa Foundation has continued its partnership with Root Capital with a $3 million investment to provide financing to women-led SMBs in the agriculture sector. This new commitment to Root Capital comes on the heels of a long track record of success from previous grants and investments that helped Root Capital provide affordable financing to 550,000 smallholder farmers across the region to grow their businesses, hire more women as employees, and address food insecurity in the region.
Increasing a Cocoa Cooperative’s revenue
Root Capital’s clients in Peru include a gender diverse cocoa cooperative that received financing and capacity building support to improve their production practices and financial decision-making skills. Through Root Capital’s support, the cocoa cooperative has achieved a 29% increase in revenue impacting 358 cooperative members.
Expanding a local bakery’s business
Olga Avilés in Peru has been empowered to start and grow their business. During the pandemic, Olga started selling cookies to neighbors and her daughter's classmates, but she knew that to achieve her dreams of starting her bakery, Titos’ Cakes, she needed to access financing, learn how to manage a budget, gain digital skills, and connect with her peers. Pro Mujer offered those resources via their digital platform. Now, Olga’s sales have increased, she has two employees and conducting baking workshops to help low-income women thrive and grow just as she did herself.
Visa is committed to continue expanding equitable access and extending digitization for women-led businesses globally, so that payments can truly be a catalyst for growth. And Visa Foundation echoes that commitment to support the growth and resilience of underserved small businesses, in particular women-led small businesses.
Since its founding six years ago, Visa Foundation has become an enabler of economic mobility, working with partners to provide access to capital and the necessary skills for women-led SMBs to accelerate their growth and impact in their local communities.