The Role of Government in Unlocking Capital for Women Entrepreneurs. 

In the global conversation about gender equity in entrepreneurship, one question keeps resurfacing: What is the role of government?

The answer isn’t simple, but it is urgent.

Governments are not the sole solution to the funding gap facing women and diverse entrepreneurs. But they are powerful gatekeepers, policy shapers, and market movers. And when used intentionally, their influence can shift the flow of capital from a trickle to a surge.

We’ve seen two radically different visions of this unfold on the world stage in recent months.

Australia: Visibility at the Highest Level

In his acceptance speech, Australia’s Prime Minister Anthony Albanese reaffirmed a vision for a country built on fairness, equality, and opportunity. Crucially, he named women specifically.

“Every woman who wants her contribution to our economy and society to be valued equally.” 

Those words matter. Because recognition at the top of government has a ripple effect. When leaders acknowledge systemic inequity—not just in vague terms but in the language of policy and economics—they create space for action.

They justify targeted grants for women-led businesses.
They validate procurement reform that prioritises equity.
They back outcomes-based funding models that reward inclusion.

In Australia, we’re watching closely to see whether this rhetoric becomes resourcing. But the signal is strong: women are not an afterthought in the economic future of this country.

Mexico: Action Meets Ambition

Contrast that with Mexico, where Claudia Sheinbaum, the country’s first woman president, has already enacted bold reforms that prioritise women’s participation in the economy.

Under Sheinbaum’s leadership:

• Constitutional changes enshrine substantive equality.

• A pension program for women aged 60–64 puts economic security into practice.

• Plan México, a major national initiative, includes a mandate that 30% of SMEs gain access to financing, supported by public-private development banks.

• A Development Banking Fund is being launched to support MSMEs, suppliers, and women-led exporters.

Her slogan? 

“It’s time for women.”

Sheinbaum’s approach doesn’t see women’s economic participation as a side issue—it treats it as a lever for national resilience, productivity, and prosperity.

Canada: A Step Backward

Meanwhile, in Canada, newly elected Prime Minister Mark Carney has made the controversial decision to eliminate the Ministry for Women and Gender Equality. This office—originally Status of Women Canada—was responsible for policy, funding, and systemic oversight of gender equity.

By folding the portfolio into a broader heritage and culture file, the government has signalled that gender equity is no longer a standalone priority. Over 300 organisations have condemned the move.

This matters because when governments step back, the private sector rarely steps up fast enough. The result? Women are left to bootstrap in ecosystems still dominated by bias, broken metrics, and unequal access to capital.

Why Government Still Matters

Let’s be clear: most capital still flows through private hands. Venture capital, angel syndicates, philanthropic funds, corporate accelerators—they all play a role.

But there are things only governments can do at scale:

• Correct for market failure.
  When women receive just 2% of venture capital globally, that’s not a coincidence. It’s a systemic flaw. Government policy can intervene to change incentives, level the field, and reward inclusion.

• Fund what others won’t.
  Grants can support co-design, evaluation, and community outcomes—things traditional investors see as non-core. These elements are essential for impact-led businesses to grow with integrity.

• Shift the narrative.
  When national leaders centre women in economic speeches, they shape what gets prioritised, who gets funded, and how systems evolve.

• Create connective infrastructure.
  Public-private partnerships like the Gender Parity Accelerators in Latin America are driving coordinated action across sectors, using shared metrics and accountability structures to drive progress.

This Is a Defining Moment

We don’t need governments to fix everything. But we do need them to show up.

To name the problem.
To back rhetoric with funding.
To recognise that investing in women isn’t charity—it’s a growth strategy.

The truth is, we already know the economic case:

• The global finance gap for women entrepreneurs is $1.7 trillion.

• Closing the gender gap could increase global GDP by 20%.

• Women-owned SMEs represent over 30% of businesses—but remain undercapitalised and underestimated.

The question isn’t whether government has a role.
It’s whether they’ll play it well.

Right now, Mexico is showing what leadership looks like. Australia has signalled intent. And Canada reminds us how fast progress can unravel.

Where we go next depends on what gets funded, who gets trusted, and how boldly we demand systems to serve us, not the other way around.

In closing ... 

We don’t need governments to rescue women entrepreneurs. But we do need them to do their job: correct market failures, close capital gaps, and invest in the kinds of founders who are already building what’s next. If the PM’s words are to mean anything, they must be followed by action. Because progress without investment isn’t progress at all.

To progress that sticks,
Lisa