Development of WSME Segmentation Framework and Toolkit

Across emerging markets, women-owned and women-led small businesses play a central role in job creation and economic growth. Yet most institutions still view them as one broad category. The common approach of segmenting by business size may be simple to apply, but it does not reveal how women run their businesses, what motivates them, or what holds them back.

The WSME Segmentation Framework and Toolkit was designed to fill this gap. Developed by ConsumerCentriX in partnership with the Argidius Foundation, the Dutch Good Growth Fund and the Women Entrepreneurs Finance Initiative, it offers a practical way for institutions to understand the diversity within the WSME market. The framework is grounded in primary research with more than 600 formal WSMEs from Pakistan, Uganda and Colombia. These three countries were selected to reflect very different economic and regulatory environments, allowing the framework to be used widely across emerging markets.

Across the three countries, the research revealed a clear trend. Expected revenue growth over the next five years is a much stronger differentiator than enterprise size. Once women entrepreneurs were grouped by their projected growth, several patterns became obvious. Their business models, financial behaviour, support needs and operating environments differed enough to require a more precise approach. This analysis resulted in three growth segments: high growth, moderate growth and low growth.

Within each of these segments, the framework identifies six entrepreneur profiles that reflect different motivations and ways of running a business. For example, some high-growth entrepreneurs focus on wealth creation while others focus on building a long-term family legacy. Moderate-growth entrepreneurs balance ambition and stability, and those in the lower-growth group often run businesses that prioritise income security rather than scale. Each profile has distinct financial and non-financial needs.

Another important output of the research is the set of 15 business growth enablers. These include factors such as access to collateral, digital adoption, family support, business skills and the strength of an entrepreneur’s networks. They consistently differentiate one group from another and help institutions understand what is required to move a business from one stage of growth to the next.

The team also analysed the enabling environment in each country. This included legal and regulatory frameworks, gender norms, the sophistication of the financial sector, ease of doing business and digital infrastructure. The Toolkit translates this into a structured diagnostic process that institutions can apply in their own markets.

In addition, the research looked at the role of WSMEs in job creation. Across the three countries, women-led businesses employ a higher share of women compared to male-led firms, and most entrepreneurs expect this trend to continue. The hiring patterns differ across segments. High-growth businesses build larger and more structured teams, while lower-growth firms rely more heavily on temporary labour.

The Toolkit converts all these insights into a practical six-step process that helps users assess the environment, map existing financial and non-financial offerings, understand actual demand, segment clients with the 15 enablers, review their portfolio and size the market to build a solid business case. The tools were created for financial intermediaries, funders, business support organisations and regulators who want to strengthen how they serve women-led businesses.

Since the release of the framework, dissemination has taken place through a range of events, conversations and trainings. Early insights were shared through public posts and blogs that introduced the six profiles and explained the shift toward a growth-oriented approach. The team presented the research during sessions at the Global SME Finance Forum, where banks, development partners and technical providers discussed how the toolkit can inform product design, business support services, outreach strategies, risk management and overall strategy. Interest was strong and several institutions expressed interest in testing elements of the toolkits in their own markets.

The official launch, organised with We-Fi, the Argidius Foundation and the Dutch Good Growth Fund, brought together policymakers, practitioners and researchers for a deeper conversation on the shift from size-based segmentation to a growth-focused approach. The discussion drew on practical experiences from Uganda, Pakistan and Colombia and highlighted the importance of designing solutions that reflect the actual needs of women entrepreneurs rather than assumptions about them.

These activities are part of a broader effort to help institutions integrate segmentation into their strategic planning and operations. The expectation is that a more granular approach will support better product design and stronger business models for financial institutions and support organisations, while offering women entrepreneurs services that are more aligned with their realities.

The full framework and toolkit are available at wsmesegmentation.com. As more institutions begin to explore how segmentation can strengthen their value propositions, the guiding question remains the same: What enables her business to grow and how can we respond to it more effectively?