Women-Led Enterprises, Institutional Barriers, and Economic Development

Women-led enterprises represent a substantial and growing segment of the global economy, yet they continue to face a set of institutional barriers that limit their scale, survival, and contribution to economic growth. This paper examines how formal and informal institutional structures, including legal frameworks, access to credit, cultural norms, and regulatory environments, shape the outcomes of women-owned businesses. Drawing on institutional theory and empirical evidence from both developed and developing economies, the paper argues that the underperformance of women-led enterprises relative to their potential is not a product of entrepreneurial deficiency but of structurally embedded constraints. The paper also discusses how removing these barriers generates measurable gains in GDP, employment, and household welfare. The findings call for coordinated reforms across financial, legal, and social institutions to unlock the full economic contribution of women entrepreneurs.