Gender Disparities in Lending and Income Generation: Evidence from Entrepreneurs in the City of Kisangani, Democratic Republic of Congo

Abstract

This study examines the effect of gender on lending and income generation among small and medium-sized enterprises (SMEs) in Kisangani, Democratic Republic of Congo, using descriptive evidence from 267 enterprises across commerce, production, and services. The findings reveal that while female entrepreneurs were more likely than their male counterparts to provide collateral, this effort did not translate into improved loan access, as both groups experienced similarly low approval rates under the conservative and risk-averse practices of commercial banks. Despite these financing barriers, female-led SMEs demonstrated comparable revenue performance to male-led enterprises, underscoring their economic viability and potential contribution to local development. This paradox highlights the persistence of gender-based disparities in financial systems, where women’s creditworthiness and entrepreneurial capabilities remain undervalued, echoing trends observed across Sub-Saharan Africa. The study contributes to the literature by offering localized insights into the structural dynamics of credit access and gendered entrepreneurship in Kisangani, while also emphasizing the importance of gender-responsive financial policies. Based on these findings, it proposes more inclusive lending practices, alternative collateral frameworks, and supportive policy mechanisms to foster equitable financial access and unlock the full growth potential of SMEs as engines of sustainable and inclusive economic development in the region.