Despite high levels of women’s business ownership and robust government support, women entrepreneurs in rural and remote areas of the Philippines continue to face systemic barriers that limit their economic potential, according to a new policy paper by the Organization for Economic Cooperation and Development (OECD).

The policy paper titled “Women Entrepreneurship in Remote Areas in Indonesia and the Philippines,” released by the OECD on Sept. 8, highlighted the Philippines as a global leader in women’s entrepreneurship.

According to the OECD, more than 55 percent of micro, small, and medium enterprises (MSMEs) in the country are led by women—well above international averages.

Citing an Asian Development Bank (ADB) survey, the report said women own 58 percent of microenterprises, 50.3 percent of small enterprises, and 16 percent of medium-sized firms.

In 2020, 62 percent of newly registered businesses were women-owned, while female self-employment (33.5 percent) outpaced men’s (31.9 percent).

The OECD emphasized that this strong participation is backed by legal and institutional frameworks, such as the Magna Carta of Women under Republic Act (RA) No. 9710, the Magna Carta for MSMEs or RA 9501, and the Women in Development and Nation Building Act, which prohibits gender-based discrimination in access to credit.

The OECD also highlighted initiatives such as the Department of Trade and Industry’s (DTI) Negosyo Centers—which provided services to women in 64 percent of supported MSMEs in 2019—and the Department of Science and Technology’s (DOST) OneStore.ph platform, which further expanded opportunities.

Government relief efforts during the Covid-19 pandemic also targeted women entrepreneurs, the OECD added.

The OECD noted that the Pondo sa Pagbabago at Pag-asenso (P3) program provided emergency financing to women-led MSMEs affected by Covid-19.

However, the OECD stressed that these benefits are unevenly distributed, with women in rural and remote communities still facing entrenched obstacles.

Access to finance remains a major hurdle, with collateral requirements, limited financial literacy, and the lack of tailored credit products restricting women-led businesses.

Many are also excluded from business support services, hampered by unreliable transport and inadequate childcare facilities.

Legal and regulatory hurdles—especially complex business registration procedures—discourage formalization, while established firms continue to grapple with high operating costs, tough competition, and difficulties in reaching broader markets.

The OECD also stressed that digital inequality further widens the gap.

OECD data showed that while 83 percent of urban households in the Philippines have internet access, only 69 percent of rural households do—a 22.5-percent lag.

The country also has the second-lowest mobile broadband subscription rate in Southeast Asia, while fixed broadband remains expensive.

This digital divide, coupled with rising online security risks, undermines trust and limits women entrepreneurs’ ability to fully benefit from e-commerce opportunities.

While the Philippines stands out for its strong policy support and high rates of women’s entrepreneurship, deep-rooted social norms, infrastructure gaps, and the persistent digital divide continue to hold back women in rural and remote areas, the OECD noted.

The report concluded that expanding digital infrastructure, improving access to credit, and strengthening inclusive business support will be critical to ensuring that women entrepreneurs can contribute fully to sustainable and inclusive economic growth.

(Ricardo M. Austria)