Women face more barriers to business financing than men

Access to financing remains a major hurdle for entrepreneurs in the Netherlands, with women facing far greater challenges than men. Despite making up nearly 40 percent of all entrepreneurs, women receive just 10 percent of total financing, according to data from CBS and ABN Amro. For venture capital, this figure plummets to only 1 percent, said Marianne Bruijn, director of Code-V. “I find these numbers shocking,” she said.

Code-V, a covenant designed to improve financing opportunities for women, aims to address these disparities. On Thursday, a year after its inception, 18 new organizations, including the Netherlands Chamber of Commerce (KVK) and financial platform Floryn, signed the covenant. This brings the total number of public and private sector signatories to over 100, including major banks and government ministries.

“Women face a specific image problem when it comes to entrepreneurship,” Bruijn explained. “People often ask how their ‘little business’ is going and assume they are incapable of scaling up.” While she rejected these stereotypes, she acknowledged some differences between male and female entrepreneurs. “Women are generally more cautious and prefer to avoid debt. They are also less likely to request financing. However, data shows female entrepreneurs have lower bankruptcy rates, which makes investing in them a smart decision.”

Code-V is focused on accelerating female entrepreneurship by eliminating barriers. “This can only be achieved if the entire ecosystem is involved,” Bruijn said. She identified key obstacles, including persistent biases, exclusive networks, and the hesitancy of investors to engage with women entrepreneurs. A 2023 report by ABN Amro and McKinsey supports this claim, concluding that equal opportunities for female entrepreneurs could boost the Dutch economy by 139 billion euro.

In a study commissioned by Code-V, researchers Kathleen Stephenson of Vrije Universiteit Amsterdam and Caroline Essers of Radboud University Nijmegen interviewed 60 female entrepreneurs to identify the barriers they face in securing financing. “Many women reported that their businesses were not taken seriously, despite their growth ambitions,” Stephenson said. “While men are asked about opportunities during funding discussions, women are questioned about risks.”

The study highlighted a clear double standard in how female entrepreneurs are treated during investment pitches. “A female entrepreneur who presented a hockey stick-shaped growth projection was dismissed as naive,” Stephenson noted. The researchers recommend standardizing evaluation processes to ensure women and men are asked the same questions. They also urged financiers to bring more female investors to the table.

“Role models are important, but we must ensure our progress is grounded in data, not assumptions,” Stephenson said. To address this, Code-V plans to push for data-driven monitoring of financing applications. “All signatories will be asked to analyze and monitor applications through data,” Bruijn said. The organization expects to release its first comprehensive data report in June 2025.