The CARE Strive baseline report, prepared by Laterite and Bex Consultoria SRL for CARE Peru, provides a comprehensive analysis of the financial health and resilience of women enterprises in Peru. This initiative builds on the success of the IGNITE program, focusing on empowering women entrepreneurs tackle barriers to business sustainability.
Project overview
The CARE Strive Women project seeks to boost economic empowerment among women entrepreneurs in Peru by improving financial resilience, decision-making confidence, and quality of life. It addresses challenges like limited financial access, caregiving burdens, and social biases. The project seeks to create a model to support women enterprises in Peru and beyond.
Methodology
The baseline study uses a mixed-methods approach. It combined quantitative and qualitative data to provide a holistic understanding of the beneficiaries’ financial, business, and personal dynamics. Surveys were administered to 879 women entrepreneurs across various regions. Key indicators focused on financial resilience, control in decision-making, and quality of life. Focus groups with 35 participants and 14 in-depth interviews discussed business confidence, financial access, and caregiving challenges faced by women entrepreneurs in Peru.
Key learnings from women entrepreneurs in Peru:
Demographics
- The average age of participants is 42 years, with 51.7% aged between 30 and 50 years.
- Educational attainment varies: 30.9% completed high school, while 14.3% achieved university education.
- Household leadership: 70.6% lead households, balancing business and domestic duties.
Business characteristics
- Business sectors include retail/sales (34.6%), food and beverage (25.4%), and clothing/textiles (13.9%).
- The average monthly income is 3,154 soles ($830.2), with higher income levels reported among IGNITE participants.
- The average business employs 2.2 workers, with a slight majority of female workers (1.3) over male workers (0.9).
Financial resilience
- 11.4% keep separate accounts for business and personal finances. Financial literacy is a key need.
- 90.4% set business goals, showing strategic planning focus.
- Only 43% use digital tools, indicating a gap in digital adoption.
- 90.2% of participants believe they can recover from financial setbacks in three months, highlighting their resilience.
Trust and control
- 33.7% of women entrepreneurs make business decisions independently, showing strong self-reliance.
- Confidence in financial decisions is high (98.2%), but only 79.2% feel supported by financial institutions.
Quality of life
- 25.9% provide daily caregiving, struggling to balance business and family.
- 98.5% prioritize debt repayment, showing financial responsibility.
- Only 41.5% report peace of mind regarding household matters, indicating persistent stress.
Recommendations
- Financial education: Offer financial literacy and strategic planning training for women entrepreneurs in Peru. Encourage the adoption of digital tools to improve business.
- Access to financing: Tailor financial products with fair rates, flexible terms, targeted to support women-led businesses in Peru.
- Networking and mentorship: Create peer networks to build confidence and decision-making skills.
- Wellness programs: Implement stress management, time management, and childcare support initiatives.
Conclusion
The CARE Strive baseline report underscores the complex challenges faced by women entrepreneurs in Peru, ranging from financial management to balancing caregiving responsibilities. The recommendations emphasize comprehensive support through financial education, targeted financial products, and wellness initiatives to empower women in Peru. Strengthening these areas can pave the way for sustainable business growth and improved quality of life for women entrepreneurs in Peru.
Check out our publications page for reports we have written across the projects we’re working on.