Proceedings of the 6th International Conference (July 4-5, 2025, ATSU, Kutaisi, Georgia)
“Economic, Legal and Social Problems of Modern Development”

Moayery Fard Hajar– Faculty Member, George Herbert Walker School of Business and Technology, Webster University, Tbilisi, Georgia;

Todua Nia – Faculty Member, International Black Sea University, Tbilisi, Georgia;

Matin Arian – Faculty Member, Business School, International Black Sea University, Tbilisi, Georgia;

Abstract
Despite an increasing international and national commitment to inclusive entrepreneurship, official bank loans continue to pose a persistent obstacle for women entrepreneurs in Georgia. The financial needs of most female businesses are compounded by individual hesitations and structural impediments to the application of loans and constitute a multidimensional barrier to accessing bank loans. One of the most common reasons for business failure is poor cash flow and lack of access to investment, which makes business expansion and development totally impossible.
This study attempts to explain the unwillingness of Georgian women to ask for loans with the help of a multi-faceted framework consisting of psychological and structural factors. Three psychological constructs are examined here: the attitude towards risk, financial orientation, and tolerance for ambiguity, which reveal how the women entrepreneurs perceive the dangers and outcomes of their formal financial relationship and how comfortable and equipped they are in dealing with complex financial systems.
These characteristics represent tangible conditions that can facilitate or hamper efficient financing, such as previous experiences with banks, a certain stability in the revenue stream, and creditworthiness as such. Structurally, the research focuses on the firm level: access to capital, business performance, and credit history.
The aim was to examine how psychological and structural barriers were interrelated and influenced the loan application decision-making process. The results of the research that accepted all hypotheses increase our understanding of the financing gap that women entrepreneurs face in Georgia. The data was collected through a questionnaire in a sample of representative Georgian women entrepreneurs from different industries using the method of structural equation modeling.
Thus, overcoming such obstacles is not only a matter of equity but also of harnessing the full economic potential of the women-led businesses of the developing world. This study, therefore offers pragmatic recommendations to agencies, policymakers, and financial institutions that want to promote financial inclusion and bridge the credit gap between men and women.

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