The Visa Foundation has taken a strong stance in supporting women entrepreneurs by providing them with the necessary resources to grow their small businesses and achieve economic mobility. In a recent interview with Najada Kumbuli, the vice president and head of investments at Visa Foundation, she discussed the impactful efforts made by the organization to promote financial inclusion.
According to the inaugural impact report released by the Visa Foundation, their impact investing efforts since 2017 have reached over four million small and medium-sized businesses (SMBs) in 60 countries. This has contributed to the unlocking of £2 billion in local communities through their partner organizations.
What sets the Visa Foundation apart is its comprehensive approach that utilizes both grants and impact investments to address the diverse challenges faced by entrepreneurs, particularly women entrepreneurs, as they establish and expand their businesses. Kumbuli emphasizes the importance of providing different types of skills and capital at various stages of business growth.
The foundation’s support for women entrepreneurs includes training, networking, digital education, and capital allocation. The Visa Foundation aims to bridge the gap in capital for women-owned businesses by providing grants and making strategic investments. Their approach is sector-agnostic, focusing on empowering women and underserved entrepreneurs across a variety of sectors, including fintech.
Kumbuli highlights the significant gender disparity in venture capital funding, with less than 2% going to women entrepreneurs globally. To address this imbalance, the Visa Foundation has invested in companies such as TLcom, an African fund manager committed to supporting female-led pre-seed companies. This investment has contributed to the success of Cleva, a Nigerian fintech firm that facilitates international payments, debit card usage, fee-free investments, and management of local currency shifts.
In discussing the importance of gender-diverse impact investing, Kumbuli emphasizes Visa Foundation’s commitment to putting gender equity at the forefront of their strategy. Research has shown that women-led and gender-diverse fund managers are more likely to invest in women and diverse entrepreneurs, leading to higher revenue generation across all asset classes.
Furthermore, Kumbuli highlights the shifting landscape of wealth ownership, indicating that women are increasingly becoming the majority of wealth holders globally. A survey by RBC revealed that 74% of women are interested in investing in Environmental, Social, and Governance (ESG) initiatives, highlighting their influence in capital allocation and investment decisions.
In conclusion, the Visa Foundation remains dedicated to investing in women and diverse-led funds, recognizing the positive impact on individuals, families, and communities. Their commitment to building a more inclusive future for all reflects the ethos of empowering women entrepreneurs and fostering economic growth.
The efforts of the Visa Foundation in supporting women entrepreneurs and promoting financial inclusion serve as a shining example of the positive impact that can be achieved through strategic investments and holistic support for underserved communities.