Closing the Women-Owned SMEs Credit Gap: The Impact of the 10,000 Women Program

1. 10,000 Women Program and the Women Owned SME’s Credit Gap May 2015

2. Women-owned SMEs credit Gap Women entrepreneurs face a major hurdle – they struggle to access the financing they need to grow their businesses, with an estimated $285 billion credit gap according to IFC IFC also estimates that as many as 70% of women-owned SMEss in the formal sector in developing countries are unserved or underserved by financial institutions Goldman Sachs research Giving Credit Where It is Due analyzes the potential impact that closing the gap could have on economic development Closing the credit gap in the BRICs and N-11 countries by 2020 could increase per capita income by up to 12% by 2030. This gain could be as large as 25-28% for Brazil and Vietnam

3. 10,000 Women Update • In 2008, Goldman Sachs made a commitment to provide business and management education and links to capital, mentors and networks to 10,000 women entrepreneurs in developing countries • Through a network of academic and nonprofit partners, 10,000 Women has trained 10,000 women in 43 countries • Measurement is core to program implementation and integral to our success • Goldman Sachs funds on-the-ground M&E “liaisons” solely dedicated to the collection and analysis of survey data from each of our country programs • In supporting and training these staff, Goldman Sachs is developing the capacity of local institutions to evaluate the success of future interventions • In the next phase, 10,000 Women combines education and access to capital for women entrepreneurs - to increase our impact

4. The Distinctive Impact of 10,000 Women Partnerships • More than 90 academic, non-profit, government and multi-lateral partners forming a network of locally-relevant & respected institutions Resources • Single largest investment in women by the private sector - $100 million over 5 years Data • Single largest database of M&E stats on female entrepreneurship (SMEs). Literally thousands of surveys from around the world Results • Nearly 70% of graduates have grown revenues, over 60% have added jobs, while 90% also mentor other women in their communities

5. 10,000 Women Brazil Snapshot Partners • Fundação Dom Cabral • FundaçãoGetulio Vargas Graduates • 1,110 women (2009-2013) • New cohorts starting in 2014 Locations • Belo Horizonte (FDC) • Rio de Janeiro (FDC) • Sao Paulo (FGV) Results* • 79% of graduates grew revenues • 56% of graduates hired new employees • 90% of graduates mentored other women *18-months after graduation

6. 10,000 Women Scholar Biographies Carla Monteiro de Melo │ Owner, Loja das Velas • Manufactures candles for wholesale &retail distribution. Supplies well-known restaurants and hotel chains • Started cooking candles in her mother’s kitchen and now has a factory with more than 20 employees • 10,000 Women provided her with the skills necessary to apply for a loan, which enabled her to purchase a factory • Revenues have more than doubled 18 months after graduation Gircilene Gilca de Castro │Owner, Alimex Soluções em Alimentação • Provides catering services to companies with the goal of providing quality meals with “home cooked flavor” • When she started 10,000 Women, her catering company only had two employees and one client • 10,000 Women gave her confidence to apply for capital for the first time. She used the business plan developed in the program to successfully apply for two loans, purchase new equipment, upgrade her facility and hire staff • With capital, her business revenue has increased by 900% and she has hired over 40 new employees, most of which are women Rosani Aparecida de Souza Lopes │ Owner, Búfalo Ferramentas • Produces metal tools for the construction and agriculture sectors. Nursed the company back to health after having to dismiss all employees in the early 90s • Grew from 14 employees to 20 and nearly doubled revenues after graduation. Repaid the company’s debts and accessed bank capital for expansion • Through 10,000 Women, learned to delegate responsibility so that she can focus more on marketing and sales • Founded a group called “Women in Politics” to increase women’s political participation in her town where there are no female city council members

7. 10,000 Women Brazil Scholars as Ambassadors for Entrepreneurship

8. The Second Phase: First Global Financing Facility for Women Entrepreneurs Wrap Around Services: Mentoring, Networking, Business Advising Selection Business Education Accessing Capital • Building on successful capital model in the U.S. : a mix of lending capital from GS Bank and capacity building capital from GSF • First-ever global financing facility dedicated exclusively to women, in partnership with IFC • $100M investment from World Bank / IFC + $50M investment will leverage $600M in lending • Serve up to 100,000 women-owned SMEs over seven years ($32M) • Technical assistance to banks lending out the capital ($11M) • Direct financial planning support to the women entrepreneurs ($7M) • To date, IFC has closed 7 deals in 7 countries, oncluding China, Brazil and Kenya, representing over $150million in commitments towards our goal

9. Access to Capital Remains the Key Challenge Facing Women Entrepreneurs • 70% of women-owned SMEs in developing countries are unserved/ underserved by finance institutions • Lack of capital access is widely recognized as a major hindrance to women’s economic empowerment • New research by our Global Markets Institute found that closing the credit gap for women-owned SMEs1 could increase per capita income by 12% in the BRICs and N-11 countries by 2030 • In Brazil the increase in per capita income could be as high as 28% $292-357bn 25-30 5-6 62-75 Estimated credit gap for women-owned SMEs by region (US$ billion) 21-26 70-86 109-134 East Asia Latin America Sub Saharan Africa Central Asia/Eastern Europe South Asia Middle East/North Africa Total • 1.Women-owned SMEs defined as businesses with at least one female owner • Source: Assessing and Mapping the Global Finance Gap for Women-Owned MSMEs, IFC, 2011; Giving Credit Where Credit is Due, GS Global Markets Institute, 2014.

10. Closing the Credit Gap Presents a Significant Growth Opportunity for Brazil Access to finance is a major barrier 1 Closing the gap could boost per capita income 185bps 3 • % formal women-owned SMEs with access to finance as ‘major or severe’ barrier • Income per capita growth boost from closing credit gap for women-owned SMEs Driving income per capita up to 28% higher by 2030 4 Brazil: largest credit gap for women-owned formal SMEs 2 • Credit gap as % GDP, formal SMEs • Projection for Brazil's income per capita (2010 USD) • Source: IFC Enterprise Finance Gap Database; GS research

11. Facility Structure WOMEN ENTREPRENEURS OPPORTUNITY FACILTY BANK CAPACITY BUILDING Capital Structure IFC $100M Investor capital ~$468M • Managed by IFC • GSF leverages other investors • Extends credit lines and risk sharing facilities • $11M in grants from Goldman Sachs Foundation • Managed by IFC • Provides banks with consulting services to • Improve their outreach to the women’s market • Retool their operations to better serve women customers GS Foundation grant $32M LOCAL BANKS • IFC network of nearly 1,000 financial institutions END BORROWERS