Gender-lens investing is proving to be a powerful approach that not only promotes equality but also strengthens business outcomes. This investment strategy involves integrating gender considerations into financial decisions, with the aim of improving the lives of women and girls while achieving sound returns. For social enterprises committed to impact as well as profit, gender-lens investing offers a clear pathway to scale inclusively and sustainably.
Despite rising awareness around diversity, the gender gap in access to capital remains significant. Female-led businesses, particularly those in the social impact space, continue to be underfunded. This is not only a social concern but a missed economic opportunity. Research consistently shows that companies with diverse leadership outperform those without. By investing in women-led ventures or businesses that prioritise gender equity, funders are tapping into overlooked potential and fostering real innovation.
Social enterprises are naturally aligned with the values of gender-lens investing. Many are already working towards inclusion, whether through empowering women in rural communities, addressing gender-based health issues, or developing equitable workplace practices. Gender-lens investors take a holistic view, considering leadership, internal policies, product impact, and the lived experiences of beneficiaries.
Importantly, gender-lens investing also challenges outdated notions of risk. Traditional investment models often perceive women founders, particularly those from marginalised backgrounds, as higher risk, due to deep-rooted systemic biases. Gender-lens investing calls for new measures of success, focusing not only on financial growth but also on long-term social and community impact.
To truly scale inclusive social enterprises, capital must reflect the values these organisations champion. Gender-lens investing is not just an ethical choice – it is a strategic one, enabling investors to back enterprises that are building fairer, more inclusive economies.
References
Catalyst, 2020. Why Diversity and Inclusion Matter: Quick Take. Catalyst. Available at: https://www.catalyst.org/research/why-diversity-and-inclusion-matter/.
IFC, 2017. Investing in Women: New Evidence for the Business Case. International Finance Corporation. Available at: https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/gender+at+ifc/resources/investing+in+women_new+evidence+for+the+business+case.
Veris Wealth Partners, 2018. Gender Lens Investing: Bending the Arc of Finance for Women and Girls. [online] Available at: https://www.veriswp.com/gender-lens-investing-report/.
GIIN, 2022. Sourcing Impact Investments: Gender Lens Investing. [online] Global Impact Investing Network. Available at: https://thegiin.org/research/publication/gender-lens-investing.