With assistance from the Visa Foundation and social investor AVPN, SecondMuse Capital is an impact-focused investment firm. It has released a report from its Future Economy Lab in Asia, titled Financing Gender-Smart Climate Businesses in Asia.

The lab's results, which are intended to solve the funding obstacles faced by MSMEs in the area, especially in India, Indonesia, and Vietnam, include:

sensitivity to climate change and funding gap

Among the countries most susceptible to climate change are those in South and Southeast Asia. Nonetheless, there is a relationship—albeit a weak one—between gender disparity and climate change. Over $11.4 billion in unmet loans exists for women-owned enterprises in India alone.


The significance of MSMEs

MSMEs have an impact on the climate and are essential to the economics of the region. Approximately 99 percent of firms in Indonesia are MSMEs, and they employ over 97% of the workforce, with women making up over 65% of these workers.

Preference for loans

For MSMEs, loans are the most popular external funding source. Unexpectedly, according to an Asian Development Bank survey, 80% of women-owned MSMEs in Vietnam initially considered borrowing money from a bank.

discrepancies in funding for female entrepreneurs

The disparity in funding is more pronounced for female entrepreneurs. Less than 0.5 percent of venture capital funds and 5.2% of outstanding credit from public sector banks in India are awarded to women entrepreneurs.

Senior director of SecondMuse Capital Natalia Arjomand stated, "With the Future Economy Lab, we are creating financial mechanisms, utilizing blended finance, and equipping gender-smart MSMEs so they can actively contribute to climate solutions."

"One of South and Southeast Asia's most promising engines of economic growth is women-led MSMEs, but their ability to have a positive impact on communities is still hindered by a lack of funding." By giving these women the tools they require for their enterprises, we can close the gender gap and contribute to the solution of climate change.

"There is a significant financing gap for women-led businesses and fund managers advancing climate-smart solutions," stated Payal Pathak, program officer at the Visa Foundation. The Visa Foundation is pleased to collaborate with organizations such as SecondMuse in order to solve this disparity. Giving female entrepreneurs the resources and instruments they need will contribute to a greater and more enduring good influence on our communities and environment.

The Future Economy Lab is a comprehensive program designed to change the way we create cooperative methods and finance instruments to support resilient and inclusive economies. It involves a range of stakeholders, including governments, investors, business owners, and support organizations, in a cooperative approach.

The initiative's driving force, SecondMuse Capital, has carried out seven global versions with a focus on various industries and economies. This is significant because it's the first lab in the Asia-Pacific area. The group interviewed over 25 stakeholders, held workshops, and performed a great deal of research—especially with specialists in gender-smart business. SecondMuse Capital used its regional network to conduct in-depth research and communicate with important stakeholders by utilizing its collaboration with AVPN.