According to different sources, gender-based violence (GBV) extends well beyond the immediate harm inflicted on individuals—it fundamentally undermines the entrepreneurial fabric of an economy. When a significant portion of the population, particularly women who are dynamic agents of entrepreneurial change, experiences violence and abuse, their capacity to launch and sustain new business ventures is compromised. The effects are multifaceted:

In summary, the presence of GBV effectively acts as an economic drag by reducing both the number and the performance of entrepreneurial endeavors. Women, who are often at the forefront of small and medium-sized enterprises, become less able to take risks, invest in business ventures, or expand operations under the shadow of insecurity and abuse. This, in turn, diminishes the overall entrepreneurial propensity of an economy, leading to lower economic growth, innovation, and societal wealth.

Gender-based violence can seriously undermine an economy. In many economies in development and that are emerging, prevalent sizes of enterprises are micro-scale and family based. Many operate in the informal sector and offer survival means, and not only, for the enterprise family as well as its customers. For example, from my own research, on street food vending enterprises, violence in its various forms, such as verbal, psychological and physical, can provide to be fatal for such enterprises. Simply, 'moving along' such enterprises means they lose out on business and the customers lose out on an affordable source of nutrition. This violence multiplied on many family-based micro-scale street food enterprises can have a large impact on an economy, not just in terms of forgone trade, for example, but also as a loss in nutrition, thus bad health effects that derive from this. In other words, society also pays the consequences of such gender-based violence on street food vending enterprises.

Here is an interesting article, among the many, on the subject matter: see Link https://www.atlantis-press.com/proceedings/icss-18/25903942

Gender-Based Violence (GBV) has a profound and multi-layered impact on the entrepreneurial propensity of an economy, especially among women, who are disproportionately affected. Here's a breakdown of the key effects:

1. Suppression of Human Capital

GBV limits educational attainment, mental health, and physical mobility—critical components of human capital. Survivors may lack the confidence, stability, or resources needed to start or sustain a business.

2. Economic Dependency and Financial Exclusion

Victims of GBV often face financial control and exclusion from household or community-level decision-making, reducing their ability to access startup capital, networks, or entrepreneurial training.

3. Constrained Participation in the Informal and Formal Economies

In high-GBV environments, women are more likely to remain in low-income, informal work for safety or cultural reasons, rather than pursuing scalable entrepreneurial ventures that contribute meaningfully to GDP.

4. Macroeconomic Implications

Reduced entrepreneurial activity among a major segment of the population limits innovation, employment creation, and inclusive growth. A World Bank report (2018) estimated that violence against women could cost countries up to 3.7% of their GDP.

5. Vicious Cycle of Disempowerment

GBV stifles entrepreneurial role models and deters future generations, thereby perpetuating gender inequality in economic leadership and innovation.

Policy Implication

Tackling GBV isn't just a human rights issue—it’s an economic imperative. Economies that invest in safety, legal protection, education, and financial inclusion for women unlock greater entrepreneurial potential, leading to more sustainable and diversified economic growth.