Nelly
Member
Men are more likely to get their hand on business loans in comparison to women, putting the gender at a disadvantage in entrepreneurship.
This is according to data from a new paper by the Kenya Bankers Association (KBA), tabled at the 10th Annual KBA Banking Research Conference on Wednesday.
The paper delves into the drivers of credit choices by micro, small and medium enterprises (MSMEs) and the utilization of business versus personal loan accounts.
Findings from the paper have established that men use their business accounts more than women do, implying that women remain disadvantaged in accessing business loans.
This means that women are likely to use their personal loan accounts to access credit for their business, which translates to a more expensive venture.
For instance, the amount drawn from a business loan account is usually higher as business expenses are usually bigger in size.
Business loans are however complex in nature as they almost require collateral at all time and feature an added layer of qualification in contrast to personal loans.
This is according to data from a new paper by the Kenya Bankers Association (KBA), tabled at the 10th Annual KBA Banking Research Conference on Wednesday.
The paper delves into the drivers of credit choices by micro, small and medium enterprises (MSMEs) and the utilization of business versus personal loan accounts.
Findings from the paper have established that men use their business accounts more than women do, implying that women remain disadvantaged in accessing business loans.
This means that women are likely to use their personal loan accounts to access credit for their business, which translates to a more expensive venture.
For instance, the amount drawn from a business loan account is usually higher as business expenses are usually bigger in size.
Business loans are however complex in nature as they almost require collateral at all time and feature an added layer of qualification in contrast to personal loans.