“Empower Her Financially”

In the Western Balkans, Albania is witnessing remarkable economic growth propelled by foreign investment, infrastructure development, and a thriving tourism sector. Despite this positive trend, women-led businesses encounter uneven opportunities. As in many Western Balkans countries, women-led businesses in Albania tend to be smaller, concentrated in the services sector, and often constrained by factors such as limited networks and historical gender biases.

While there is a growing recognition of the untapped potential of women-led small and medium-sized enterprises (W-SMEs), the conventional banking sector often leaves many W-SMEs underserved due to reliance on traditional evaluation criteria and products.

In response, USAID CATALYZE Engines of Growth in the Western Balkans collaborates with local partners like the business advisory service provider Creative Business Solutions in Albania. Together, they implement the Catalyze Alternative Financing for Entrepreneurs (CAFÉ) project, aimed at fostering financial innovation and supporting W-SMEs. Through CAFÉ, tailored financial solutions, such as green financing, solar leases, and convertible bridge loans, are developed in collaboration with banks and financial institutions.

“In the Western Balkans, there is a huge gap between the financing the SMEs need and the financing they receive. There are not enough innovative alternative financing product instruments in the market. The banks want to invest in companies that are highly structured, but SMEs are not yet there. This is why we launched CAFÉ. We looked at three different components: the supply, the demand, and the connection between that supply and the demand. And CAFÉ is the bridge over that gap,” said Enio Jaco, CEO of Creative Business Solutions.

At the heart of the CAFÉ is the “Empower Her Financially” program, which provides comprehensive support to women entrepreneurs, addressing their specific needs in financial, operational, and social aspects. In collaboration with financial institutions (FIs) in Albania, gender-tailored products and services are designed to better meet the needs of women entrepreneurs and support their growth. Women-led businesses are analyzed as a separate and specific segment of the market. CBS then presents those that are excellent businesses cases to secure the more favorable loan conditions possible. The program brings additional benefits as well.

“Our program is designed to empower women entrepreneurs through partner financial institutions, by offering a comprehensive package that combines a loan with other essential products, including a package of current account, e-banking, and debit cards,” said Pranvera Guxho, Senior Business Development Consultant at CBS. “Beyond financing, the program supports business growth through training, marketing assistance, and other products such as savings accounts for their children. This holistic approach not only addresses immediate financial needs but also provides long-term support and much needed non-financial services for women entrepreneurs.”

“We tried to match the needs of this market segment [W-SMEs] with what financial institutions can offer, emphasizing that financing W-SMEs is not only the right thing to do but also a great business opportunity for FIs due to proven W-SMEs’ good risk profile.”

— Pranvera Guxho, Senior Business Consultant, CBS

The CBS “Empower Her Financially” and similar programs are about inspiring women and helping them overcome the often overseen “invisible” gender barriers. The programs also encourage financial institutions across the Western Balkans to introduce positive practices, such as “women champions” to inspire fellow businesswomen to grow in the business world.

So far, the impact of the interventions through CAFÉ is significant, with 246 SMEs benefitting from a total investment of $11.8 million, notably 238 W-SMEs received $10.8 million in funding.

By tailoring financial products, fostering collaboration, and incorporating a comprehensive approach, CAFÉ and USAID CATALYZE are supporting women entrepreneurs and unlocking the vast potential of W-SMEs.