Supporting growth for women-led enterprises: A new, inclusive framework for WSME segmentation

WSME Segmentation Framework

The WSME Segmentation Framework was developed through extensive literature review, primary research, data collection, and statistical analysis. Building on previous work in this area, the framework challenges conventional approaches that segment by size, classifying WSMEs instead according to projected growth of enterprise revenue. 

The framework focuses on potential revenue growth over the next five years, categorizing businesses into distinct segments:

• High growth: Over 50%
• Moderate growth: 20–50%
• Low growth: Under 20%

Each segment is characterized by different types of entrepreneurs with varying motivations and needs. High-growth entrepreneurs often aim to create wealth or establish a legacy, while those in the low-growth bracket might focus on immediate survival or sustaining their livelihoods. The following table below provides an overview of the three growth segments, highlighting their profiles, characteristics, as well as their financial and non-financial needs.

Table 1: Adapted from the report titled "What Enables Her Business to Grow: A New Segmentation Framework to Unlock the Opportunity of Serving Women-Owned/Led Businesses in Emerging Markets" (see page 6).

Growth Segment	Annual Revenue Growth	Profiles	Characteristics	Financial & Non-Financial Needs
High Growth	>50%	Wealth Creation entrepreneurs: pursue aggressive revenue growth and are open to equity investments. Legacy Building entrepreneurs: prioritize long-term family involvement and wish to retain business control.	Leverage innovation, technology, and external financing to scale rapidly. Ambitious with strong professional networks. Access sophisticated financial services and management tools.	Require loans for large-scale expansion. Consider equity partnerships. Benefit from advanced business support programs, coaching, mentoring, and accelerators.
Moderate Growth	20-50%	Aspired Expansion entrepreneurs: seasoned, aspire to greater expansion. Stability entrepreneurs: focus on local markets, lead smaller teams, less digitally inclined.	Strategic but cautious in scaling Balance opportunities with family and operational constraints. Typically reinvest profits, don't seek external financing. Limited business development support access.	Need flexible loans with accessible interest rates. Relationship-based banking. Require BDS services to strengthen networks and enhance business skills.
Low Growth	<20%	Livelihood entrepreneurs: aim to sustain family livelihood and ensure steady income. Survival entrepreneurs: operate businesses out of necessity, facing financial/resource constraints and lacking business skills.	Use personal bank accounts for business. Limited access to traditional credit. Businesses generate enough income for family needs, growth is secondary.	Require access to formal financial products. Need training in accounting, sales, and taxation. Opportunities to build business networks. Formalization and skill-building programs essential for modest scaling and resilience.

Finally, the framework identifies 15 crucial factors that facilitate growth. These include personal attributes such as risk-taking ability and family support, alongside business elements like access to collateral, digital tools, and proper business registration. Additionally, it emphasizes the importance of a conducive environment, highlighting legal rights, financial infrastructure, and cultural norms that can influence the trajectory of WSMEs.

Practical Toolkit and Further Insights

For those interested in detailed steps and strategies, the full study and framework can be accessed here. The report also offers a practical toolkit for funders, financial institutions, and support organizations to assess markets, segment clients, and tailor services.

By recognizing the diverse realities and aspirations of women entrepreneurs, together with our partners, DGGF paves the way for more inclusive, impactful, and sustainable economic development.