Estonia’s economy has untapped growth potential – more women-led businesses could reach the next level

According to Helo Koskinen, Regional Head of Business Finance at Coop Pank, the initiative is about more than supporting a single target group. “Estonia’s economy needs more businesses with the capacity to grow. Supporting women entrepreneurs leads to greater entrepreneurial activity, the creation of new jobs and stronger local communities,” said Koskinen. “A strong business idea should not remain unrealised, nor should a company’s next stage of growth be delayed simply because suitable financing is not readily available.”

The bank believes that many women entrepreneurs primarily finance business growth from their own resources, turning to external financing only once they have established a stable cash flow. While this is a prudent approach from a risk management perspective, delaying investment at the right moment may ultimately constrain a company’s future growth.

“Our aim is to help entrepreneurs take the next step in their development at the right time. When a business has a proven business model and clear growth potential, financing should enable that growth rather than become an obstacle to it,” Koskinen added.

According to Koskinen, a recent analysis by the European Investment Bank also highlights the value of supporting women-led businesses. Drawing on a range of studies, the analysis shows that such businesses are often characterised by strong management practices and a high capacity for innovation. It also concludes that women-led businesses typically demonstrate a lower risk profile and higher levels of customer loyalty.

The Women Entrepreneurs Loan is available to businesses that meet the eligibility criteria of the European Investment Bank Group (EIB Group) Women Entrepreneurship Programme. The programme aims to improve access to finance for women-led and women-owned businesses while enhancing their competitiveness.

According to the European Investment Bank, improving women’s access to business finance is important for the European economy as a whole. As a result, it is increasingly important for financial institutions to develop dedicated financing solutions that support women-led businesses.