Business Ownership, Gender, and Finance in Côte d’Ivoire

This study explores whether gender disparities exist in credit access among business owners in Côte d’Ivoire, utilizing data from the 2016 World Bank Enterprise Surveys. Through descriptive analysis and the Fairlie decomposition model, the research uncovers significant findings. Female-owned firms demonstrate higher proactivity in applying for credit, with 36.0% seeking loans compared to 23.5% of male-owned firms. Additionally, 32.6% of female-owned firms secure credit versus 21.7% of male-owned counterparts, resulting in a gender gap of 10.9%. The Fairlie decomposition attributes 51.4% of this gap to observable differences in endowments, while 48.6% is linked to unobservable factors. Contrary to traditional narratives, the results suggest that female entrepreneurs in Côte d’Ivoire are more engaged in the credit market and more successful in obtaining loans, potentially due to better preparation, supportive networks, and perceived lower risk by lenders. The study highlights the critical roles of both observable factors, such as business size and sector, and unobservable elements, including lender perceptions and gender-specific strategies. The findings call for nuanced policy interventions to support female entrepreneurship, including tailored financial products, enhanced business networks, and strategies to mitigate implicit biases in financial institutions while promoting gender equity in Côte d’Ivoire.