Driving Financial Access and Sustainable Support for Women Social Entrepreneurs in the Middle East and Africa
It is HerMeNow's ongoing engagement and support for its participants that distinguish it from other accelerators, even after the accelerator cycle has concluded. HerMeNow's primary objective is to empower its participants and offer them comprehensive, sustainable support, rather than merely providing financial assistance.
The challenges of securing funding and financial sustainability are universal to entrepreneurs worldwide; however, those in the Middle East and Africa (MEA) encounter a multitude of obstacles when it comes to achieving financial stability and raising capital. Foreign investors who are concerned about currency risk may be discouraged by the substantial currency volatility that numerous countries in the Middle East and North Africa region encounter. These obstacles are the result of a unique combination of socio-cultural, regulatory, and economic factors that are specific to the region.
In the Middle East and Africa region, early-stage social enterprises, particularly those owned by women, are in a precarious position. They have exhausted all available funding opportunities, including grants and financial support from family and friends, as they endeavor to ensure the sustainability and growth of their enterprises. This frequently leads to the cessation of projects or their downsizing, which presents obstacles for social enterprises in their efforts to expand and sustain themselves. The absence of customized and appropriate financing instruments that can cater to the requirements of these women-led enterprises and diminish their effective connections to domestic and global markets is evident.
Rama Impact, a women-led microfinance organization, has formed a partnership with HerMeNow to provide sustainable support and feasible financial solutions to women-led social enterprises. Women entrepreneurs can apply for collateral-free loans with 0% interest rates and flexible installment plans through these exceptional programs.
The objective of this partnership is to facilitate the acquisition of funding for female social entrepreneurs in the Middle East and Africa, even in rural regions where it is exceedingly challenging or impossible to do so.
Managing a Multifaceted Regulatory Framework
It can be difficult for entrepreneurs to navigate the intricate and frequently bureaucratic regulatory frameworks in numerous MEA countries. Clear, regulations that are conducive to startups are frequently absent. Rama Impact offers financial solutions that are tailored to the specific needs of social enterprises, with regulations that are straightforward and straightforward to understand. Applicants for early-stage social enterprises that are owned by women are eligible to apply for a collateral-free loan with a 0% interest rate, ranging from $10,000 to $40,000. Repayment periods and terms are tailored to the distinctive business models of each enterprise to prevent undue financial duress, thereby ensuring a manageable repayment process (repayments are made on a quarterly, trimestrial, or bi-yearly basis over a period of 12 to 18 months).
Collateral-Free Loans at 0%
The organizations are unable to sustain themselves in the long term due to the financial burden imposed by the loan sharks, who provide loans at a rate of approximately 50% interest. These programs provide collateral-free financing at 0% interest rates to women and social entrepreneurs. In order to facilitate repayment, each loan is structured in a manner that is feasible for the organizations. This enables the organizations to develop and achieve the maturity and growth levels that would attract the attention of more commercial funders and investors. Additionally, the sole objective of these loans is to increase sales by hiring staff, investing in training and development, implementing digital marketing strategies, purchasing raw materials and supplies, and acquiring apparatus and machinery. This directly contributes to the organization's sustainability and development.
Non-Financial Solutions
Social enterprises in the MEA region face difficulties in obtaining mentorship and guidance as a result of a scarcity of resources. In the absence of support opportunities, it is challenging to navigate global trends, challenges, and successful strategies.
Rama Impact and HerMeNow both endeavor to develop comprehensive solutions for their participants. This vision is bolstered by Rama Impact's non-financial services, which are centered on the provision of personalized one-on-one interventions and mentoring from successful business leaders. These services enable entrepreneurs to rectify recurring mistakes and address loopholes, thereby enhancing revenue and impact models and strategies. The direct guidance of business experts is available to entrepreneurs at no cost, allowing them to strategize their revenue growth, recruitment, and retention.
Through our experience in conducting successful accelerator programs since 2022, we have come to the realization that women-led organizations in the MEA region encounter distinctive obstacles. There is a substantial disparity between the resources at the disposal of these organizations and their requirements for survival and expansion. HerMeNow and Rama Impact aim to mitigate the disparity between the challenges and growth of women-led social enterprises in this region by establishing these supportive financial and non-financial programs.
We are committed to providing these organizations with the necessary resources, including expert guidance, financial solutions, and capacity development, to enable them to surmount market access and penetration obstacles. These organizations have the potential to make a substantial impact on society by improving their visibility, credibility, and market reach. By implementing these solutions, women entrepreneurs will be able to flourish and make a substantial social impact in their communities.
For further information regarding our programs and opportunities for collaborations, please visit:
If you are a HerMeNow participant or alumni, book your free coaching session now through the HerMeNow website https://www.hermenow.com/wellness.
Anam Anjum
Wellness Consultant
+971 52 629 9656