Women entrepreneurs across the world face significant challenges when trying to establish and scale their businesses. From limited access to funding and networks to societal expectations that often place additional burdens on them, the road to success is rarely smooth. However, with the right support systems in place, these women can overcome the odds and build enterprises that not only survive but thrive. 

In Tanzania, the United Nations Development Programme (UNDP), in partnership with the European Union and the UK Government, is tackling systemic barriers to gender equity in entrepreneurship through the FUNGUO Programme. The initiative fosters an ecosystem where women-led businesses thrive by combining catalytic grant funding with holistic support including technical training, tailored mentorship, and advocacy for policy reforms. FUNGUO has catalysed sustainable growth for 61 Tanzanian enterprises, channelling TZS 5.2 billion into innovative impact ventures. Notably, 30% of these businesses are women-led/founded, a strategic investment reflecting the programme’s commitment to levelling the playing field. Beyond financial metrics, FUNGUO prioritizes long-term empowerment, equipping women entrepreneurs with tools to scale their impact, access markets, and drive inclusive economic progress. 

Overcoming the Funding Gap 
One of the biggest barriers for women entrepreneurs is access to finance. Traditional financial institutions often hesitate to invest in women-led businesses due to perceptions of risk, lack of collateral, or even unconscious biases. In 2024, female-founded startups in Africa secured only $159 million, representing just 7% of total equity funding a decline from previous years, according to Partech. Access to finance remains a major barrier, with traditional institutions often hesitant to invest due to perceived risks and biases. A study by Harvard Business Review highlights that investors disproportionately question female founders about potential losses, reinforcing systemic undervaluation. This is where catalytic funding and patient capital play a great role in helping female founders navigate this rather uneasy transition – derisking their businesses to reach a point where they become attractive to mainstream sources of financing.  

Laurencia Mushi and Glory Mtui, Co- founders of Glo Africana Manufactures Ltd highlighted that the FUNGUO grant has been instrumental in the growth of various aspects of their company. The grant has enhanced the capital capacity, thus enabling the company to expand its capability to buy raw materials from farmers, purchase production equipment, daily production capacity and market growth in retail, distributors and supermarkets. Their production has grown to more than 90% since the funding was awarded 

“This growth has also enabled our company to provide jobs to women and youth at various stages right from aggregation to distribution in the market. We have also increased the number of farmers that we work with given the high number of raw materials we purchase. This has improved the livelihoods of the farmers we work with.”, stated Ms Mtui. 

Bridging the Knowledge and Network Gap 
Beyond funding, women entrepreneurs often struggle to access the right knowledge and networks to propel their businesses forward. Business mentorship, market access, and legal knowledge are essential, yet many women find themselves navigating these complexities alone. 
FUNGUO is contributing towards alleviating some of these challenges by availing opportunities for technical support, exposure and investor linkages to its investees, especially women-led startups. Sessions such as Basics of Capital Raising, Investment Negotiations Skills, regular updates on tax and regulatory implications of Tanzania’s Finance Acts every year, exhibition opportunities in key strategic ecosystem platforms within and outside Tanzania, regular one-on-one technical support sessions, are examples of how FUNGUO is supporting women-led early-stage businesses overcome the knowledge and network challenges. 

Challenging Societal Norms and Expectations  
Cultural and societal norms in Tanzania continue to impose systemic barriers on women entrepreneurs, who are often expected to juggle business ambitions with entrenched gender roles as primary caregivers. This dual burden limits their ability to fully commit to entrepreneurial growth, compounded by societal scepticism that dismisses their expertise in male-dominated sectors.