A sweeping economic analysis reveals that Europe is leaving hundreds of billions of euros on the table by failing to close the gender gap in business creation. Research commissioned by Amazon and conducted by Frontier Economics across 13 European nations found that achieving gender parity in startup founding, where women launch 50 percent of new businesses, could generate approximately 250 billion euros in cumulative annual economic gains by 2040. Currently, women start only one-third of businesses across the EU, representing one of the continent’s most significant untapped economic resources.
The report quantifies both the scale of the opportunity and the concrete barriers preventing women from starting and scaling enterprises at rates equivalent to their male counterparts. Among the 600 business founders surveyed across Denmark, Finland, France, Germany, Italy, and Poland, female entrepreneurs consistently identified structural obstacles that male founders encountered less frequently: limited access to capital, inadequate government support infrastructure, and regulatory complexity that disproportionately constrains women-led ventures.
Capital Access and Government Support Remain Critical Barriers
Thirty-seven percent of female-founded businesses reported moderate to significant difficulty accessing investor or venture capital funding, while 39 percent cited limited access to finance or credit as a substantial constraint. Government-level support gaps compound the challenge: 40 percent of female entrepreneurs identified lack of accessible government resources, such as incubators, mentorship networks, and streamlined administrative processes, as a material obstacle to growth. An additional 37 percent struggled with complex regulatory and administrative procedures that consume time and resources.
These barriers translate directly into measurable economic underperformance. If the gender gap in new business creation were closed within five years rather than the longer projected timeline, the cumulative economic benefits would increase by 45 percent. Productivity gains alone would range from 1.6 percent to 5.5 percent by 2040, depending on the country, with Gross Value Added increases varying significantly across national economies.
The timing of these findings aligns with broader European policy conversations about economic competitiveness. Mario Draghi’s report on the future of European competitiveness emphasized the need for increased annual investments and research and development spending of 750 to 800 billion euros to unlock the continent’s full potential. Meanwhile, venture capital shortfalls continue to constrain growth-stage funding for European startups, creating additional headwinds for female founders already facing structural disadvantages in accessing institutional capital.
Real-World Impact in Emerging Markets
While European policymakers grapple with closing the gender gap in startup creation, banks and financial institutions in emerging markets are demonstrating measurable returns from targeted support of female entrepreneurs. Wema Bank, Nigeria’s oldest banking institution, has doubled down on its commitment to women-led businesses through its ongoing sponsorship of Fashion Souk, one of West Africa’s largest fashion and lifestyle exhibitions.
Data from 2025 editions of the biannual event reveal concrete economic impact: the bank facilitated over 1.5 billion naira in SME revenue across exhibitions held in June and December, with female-led enterprises representing over 90 percent of exhibitors among 315 total participating businesses. The bank’s continued headline sponsorship for 2026, which will expand to two editions annually, reflects recognition that intentional financial infrastructure support directly translates into measurable business outcomes for women entrepreneurs.
“The platform remains a strategic avenue for entrepreneurs, creatives and business owners to showcase their products and services, engage customers, expand professional networks and drive business growth,” according to a statement from the bank. The partnership demonstrates that deliberate institutional support addressing market access, networking opportunities, and visibility gaps can rapidly accelerate women-led business performance.
Policy Solutions Emerging Across Europe
The European Commission’s Competitiveness Compass already contains several mechanisms that could accelerate support for female entrepreneurship, including commitments to remove Single Market barriers that prevent investment and scaling, reduce administrative burden through digital-first solutions, and streamline regulatory reporting requirements. Digital tools such as European Digital Identity Wallets and simplified sustainability reporting frameworks could measurably reduce compliance friction that disproportionately constrains smaller operations.
The research suggests that closing the gender gap in entrepreneurship is not primarily a cultural challenge but a structural one, addressable through targeted policy reform, institutional support redesign, and capital access mechanisms. Countries that move fastest to implement such changes stand to capture outsized productivity gains and competitive advantage in high-growth sectors where female founders have demonstrated particular strength, including digital services, creative industries, and health technology.
For policymakers and financial institutions, the economic case is clear: the cost of maintaining current barriers to female entrepreneurship far exceeds the investment required to dismantle them.
Full research on female entrepreneurship economic impact across European nations
European Commission SME Performance Dashboard and Support Resources
Wema Bank official website and SME support initiatives
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