- An IDB study reveals that rural agri‑food micro, small, and medium-sized enterprises (MSMEs) led by women in the Dry Corridor of Honduras face high levels of informality, as well as limited access to credit and training.
- Despite such gaps, these women entrepreneurs demonstrate leadership and innovation in processing and value‑added activities.
- The economic inclusion of rural women entrepreneurs —with productive potential and growth capacity— requires accessible financing and specialized technical assistance.
The Dry Corridor of Honduras —located in the central, western, and southern regions of the country— is an area characterized by high climate vulnerability and high levels of poverty and food insecurity. More than three million people live in this zone, relying primarily on agriculture. In this context, women entrepreneurs are building resilience, generating employment, and strengthening local economies from the ground up.
Within the framework of the initiative “Adoption of Climate‑Smart Technologies in Agricultural MSMEs Lead by Women” linked to the project known as “ProOccidente”, the Inter-American Development Bank (IDB) conducted a study in the departments of Copán, Ocotepeque, Santa Bárbara, Intibucá, La Paz and Lempira, the project’s area of intervention. The objective was to identify the conditions faced by rural women‑led agri‑food MSMEs and, based on this information, guide decision‑making and activity implementation. The report (available in Spanish) outlines structural obstacles, productive dynamics and latent opportunities, and proposes concrete action paths to strengthen women’s productive economic participation in vulnerable rural environments.
Structural Obstacles Faced by MSMEs
Results show that most MSMEs are family‑run or associative micro‑enterprises operating in contexts of high socioeconomic vulnerability and low productivity. Informality is predominant: 65% lack a legal structure and only 23% have an operating permit. This limits their access to markets, public services, and financing programs.
In addition, access to credit and training remains scarce. Only 16% of surveyed businesses have received any type of loan, while 23% have participated in training programs. The COVID‑19 pandemic also left its mark: although 85% managed to continue operating, many reported increased input costs and significant income reductions.
Challenges and Opportunities for Rural Women‑Led MSMEs
Women‑led businesses show a particular reality within this landscape. They exhibit lower levels of formalization compared to those led by men (23.7% vs. 33.7%), and often operate as sole‑proprietor businesses, concentrating operational and decision‑making responsibilities on one person.
There is also a notable concentration in processing and value‑added segments using artisanal facilities—such as the production of food, textiles, or natural cosmetics—which, while income‑generating, tend to be in lower‑value stages of the economic chain. This specialization pattern stems from both tradition and structural barriers to accessing other sectors.
Financial gaps are also evident: only 8.8% of women‑led businesses accessed credit, compared to 19.8% of those led by men. Inequality is also reflected in the availability of fixed assets, which is significantly lower among women. Despite these limitations, women entrepreneurs show a proactive approach to business planning, such as developing new products, purchasing equipment, and expanding markets.
Notably, in 60.9% of these businesses, decisions are made exclusively by women, highlighting both their leadership and the operational dynamics of micro‑enterprises, where directorial roles are rarely shared.
Recommendations to Strengthen Rural Women’s Leadership
To close identified gaps, increase productivity, and enhance the impact of these women entrepreneurs on rural development, the study recommends the following based on available evidence:
- Inclusive financing: Establish inclusive financial programs that facilitate access to credit, considering the conditions of rural women entrepreneurs and reducing reliance on traditional collateral.
- Specialized training: Strengthen technical assistance and specialized training offerings focused on leadership, digital skills, and support networks, adapted to the specific conditions of women in rural areas and flexible enough to enable their participation.
- Facilitated formalization: Promote streamlined formalization processes that improve access to public services, licenses, and state benefits.
- Visibility of contributions: Highlight their contribution to the national economic system through gender‑disaggregated data and awareness‑raising campaigns that showcase the role of women entrepreneurs.
Implementing these strategies strengthens the business ecosystem in rural areas of Honduras and directly contributes to national development. When women thrive, their families, communities, and the national economy thrive with them.
Agents of Change from Their Territories
Rural women in western Honduras are not passive beneficiaries of development: they are active agents of economic transformation. In environments marked by climate vulnerability and resource scarcity, these entrepreneurs are building resilience, generating jobs, and strengthening local economies from the ground up.
Promoting access to financing, technology, and markets for women‑led MSMEs with growth potential and the capacity to operate productively is not only a matter of gender equity. It is a concrete strategy for advancing sustainable rural development, reducing poverty, and building more prosperous and climate‑resilient communities.
The IDB works in Honduras and the region to create more inclusive business ecosystems where the talent of rural women can fully flourish. Learn more about IDB initiatives in rural development and consult the publication for a deeper examination of these findings and their implications for public policy.