This study examines the role of women-owned small- and medium sized enterprises (SMEs) in raising labour force participation, and boosting economic growth in emerging markets. It explains the barriers Women-owned SMEs face, such as: access to education and training, legal and cultural barriers and infrastructure-related challenges. The study considers access to finance as a major constraint for women-owned SMEs, which is often intensified by gender-related factors, including women’s lack of collateral, weak property rights and discriminatory regulations, laws and customs. The study assesses the potential impact that closing the credit gap for women-owned SMEs can have on economic development, and estimates the link between credit to SMEs and growth in income per capita.