The module will start with the following topics:

• Mindset for Creativity (Growth Mindset, Overcoming Mental Barriers)
• Divergent vs. Convergent Thinking

Participants will engage in various creativity techniques, including brainstorming, SCAMPER, mind mapping, Six Thinking Hats, and the “How Might We?” approach.

Next, they will acquire fundamental knowledge on drafting a strategic innovation plan, transforming their innovative ideas—generated through the design thinking process—into a structured plan. This plan will include key elements such as:

1. Defining the innovation strategy
2. Vision, mission, and values
3. Setting clear goals, KPIs, and measuring success
4. Identifying the Job to Be Done and applying the Pain-Gain Model
5. Defining the Value Proposition
6. Creating a Business Model Canvas

Following this, participants will learn how to implement their innovation strategy and, finally, assess their innovation potential using the INNOVATE methodology, a self-assessment tool widely used by Serbian SMEs.

The module includes three interactive exercises. The innovation potential self-assessment is provided as a take-home tool, allowing participants to apply it at their convenience.

Company Performance Evaluation (Financial Analysis and Basic Ratio Analysis)

Evaluating a company’s performance requires systematic financial analysis and understanding key ratios. Financial analysis involves examining trends in revenue, costs, and profits over time to assess growth potential and operational efficiency. All entrepreneurs benefit from these insights to tailor strategies that enhance competitiveness.

Basic ratio analysis simplifies the assessment of financial health. Profitability ratios, such as net profit margin, indicate how efficiently a business converts revenue into profit. Liquidity ratios assess the ability to cover short-term obligations, while leverage ratios measure the company’s reliance on borrowed funds. Efficiency ratios track how effectively assets are managed to generate revenue.

Using these tools, women entrepreneurs can identify strengths, address weaknesses, and make informed decisions. Financial analysis not only fosters strategic planning but also builds confidence among stakeholders and investors.

Liquidity Ratios

Liquidity: the ability of a firm to pay its short-term debts.

Liquidity ratios measure a company’s ability to meet short-term obligations. The current ratio, calculated as current assets divided by current liabilities, indicates the availability of resources to cover debts. A higher ratio suggests better liquidity, while a lower ratio signals potential financial strain.

The quick ratio (acid-test ratio) refines this analysis by excluding inventory from assets, focusing only on liquid resources. This is particularly useful for businesses in industries with slow-moving inventory. For all entrepreneurs, understanding these ratios is vital to maintaining operational stability and avoiding financial difficulties. Also known as the quick ratio, this is a stricter test of a firm’s liquidity. It ignores the least liquid of the firm’s current assets – inventories (stocks). 

Regularly monitoring liquidity ratios helps identify cash flow bottlenecks and ensures readiness to meet financial commitments. It also builds trust with lenders and suppliers, facilitating smoother business operations.

Credit Ratio

Credit ratios assess a company’s ability to handle its debt obligations. The debt-to-equity ratio compares total liabilities to shareholders’ equity, reflecting the balance between borrowed funds and owner investments. A higher ratio may indicate financial risk but also highlights growth potential when managed effectively.

The interest coverage ratio measures how easily a business can pay interest on its debt using operating income. This ratio is critical for entrepreneurs seeking loans, as it reassures lenders about repayment capacity. Women entrepreneurs can leverage these insights to optimize borrowing strategies and negotiate favourable terms.

By understanding and applying credit ratios, businesses can achieve sustainable growth while maintaining financial stability.

Innovation funding for women’s SMEs

Innovation funding is crucial for empowering women entrepreneurs to drive growth in small and medium enterprises (SMEs). Grants, loans, and equity financing are popular options. Governments and international organizations often provide targeted programs to support women-led businesses in technology, sustainable development, and other innovative fields.

Securing funding requires a solid business plan that highlights the innovative aspect of the enterprise. This includes identifying a unique selling proposition, demonstrating market potential, and outlining the expected impact. Additionally, women entrepreneurs can benefit from incubators and accelerators that offer mentorship alongside funding opportunities.

Women entrepreneurs have multiple financing options available, each with unique benefits and challenges. The choice of funding method depends on the business model, growth stage, and financial needs. By understanding these funding sources, women entrepreneurs can develop a strategic approach to securing capital and building successful, sustainable businesses.

Securing financing is one of the most critical aspects of launching and growing a business. Women entrepreneurs face unique challenges in accessing capital, but there are various funding options available to support their ventures. These funding sources differ in terms of eligibility, repayment obligations, and the level of business control retained by the entrepreneur. Below is a theoretical overview of the key financing methods.

1. Grants (Non-Repayable Funds)

Grants are financial awards provided by governments, private organizations, or non-profits to support businesses without requiring repayment. They are typically awarded based on specific criteria, such as industry focus, social impact, or business ownership demographics (e.g., women-led businesses).

Key Characteristics:

• No repayment required
• Competitive application process
• Often awarded for specific business purposes (e.g., innovation, social impact)
• May have reporting requirements to show fund utilization

Example: Government-backed grants for women entrepreneurs support economic empowerment by reducing financial barriers to business entry and expansion.

2. Business Loans

A business loan is a form of debt financing in which an entrepreneur borrows capital from a financial institution, online lender, or government-backed program and repays it over time with interest. Loans provide a structured repayment schedule, but they require a solid credit history, business plan, and sometimes collateral.

Key Characteristics:

• Requires repayment with interest
• Can be secured (requires collateral) or unsecured (higher interest rates)
• Can be short-term or long-term, depending on the business needs
• Allows business owners to maintain full equity ownership

Example: Microloans are a common financing method for small businesses, particularly in developing economies, providing low-interest capital to women entrepreneurs.

3. Venture Capital (VC) and Angel Investors

Venture capital (VC) and angel investment involve external investors providing capital in exchange for equity (partial ownership) in the business. Venture capital firms typically invest in high-growth startups, while angel investors are individuals who provide early-stage funding.

Key Characteristics:

• Provides significant funding for scaling businesses
• Investors take an ownership stake and may influence decision-making
• Suitable for high-growth, innovative start-ups
• Requires a strong business plan and growth strategy

Example: Tech start-ups often attract venture capital funding because they demonstrate high scalability and profitability potential.

4. Crowdfunding

Crowdfunding is a method of raising funds from a large number of people, usually through online platforms. It allows entrepreneurs to secure financing without traditional financial intermediaries, leveraging public interest and community support.

Key Characteristics:

• Uses digital platforms to raise small amounts from many contributors
• Can be reward-based (pre-selling products), equity-based (offering shares), or debt-based (repayable loans)
• Ideal for product-based businesses and creative ventures
• Requires strong marketing and audience engagement

Example: Women-led businesses in fashion or technology often use Kickstarter to secure early-stage funding by offering pre-orders as rewards to backers.

5. Business Competitions and Accelerators

Entrepreneurial competitions and accelerators provide funding, mentorship, and networking opportunities to start-ups. Many of these programs focus on supporting women entrepreneurs by offering capital in exchange for participation in mentorship and training programs.

Key Characteristics:

• Competitive selection process
• Provides funding, mentorship, and networking opportunities
• Often focused on innovation, technology, or social entrepreneurship
• Some require partial equity in exchange for funding

Example: The Cartier Women’s Initiative provides grants and mentorship to female entrepreneurs with businesses that have a social impact.

6. Bootstrapping (Self-Funding)

Bootstrapping refers to funding a business using personal savings, reinvested profits, or revenue generated from early operations rather than seeking external financing. This method allows entrepreneurs to retain full ownership and control but may limit growth potential due to resource constraints.

Key Characteristics:

• No debt or loss of equity
• Requires financial discipline and careful budget management
• Best for businesses that can generate revenue quickly
• May limit expansion opportunities without external funding

Example: Many small businesses start by bootstrapping, reinvesting early profits into growth before seeking external financing.

You can find useful information about the funding opportunities in the section Grants and Programmes for Women Entrepreneurs.

With the right funding and support, women-led SMEs can scale their operations, penetrate new markets, and contribute significantly to economic development.

Training in pitching before investors

Pitching is an essential skill for entrepreneurs seeking investment. A successful pitch succinctly communicates the business idea, target market, revenue model, and growth potential. Women entrepreneurs can gain confidence by structuring pitches that emphasize innovation, financial sustainability, and social impact. Key components of an investor pitch include a compelling introduction, a problem-solution narrative, and a clear ask (investment amount and its purpose). Visual aids and data-driven arguments enhance credibility while rehearsing improves delivery and confidence.

Pitching to investors requires clear communication, strategic planning, and confidence. To increase the chances of securing funding, women entrepreneurs should go through structured training to refine their pitch and approach. By refining your pitch deck, mastering storytelling, engaging in mock pitching, and handling investor questions confidently, you can increase your chances of securing funding.

A pitch deck is a short presentation (usually 10-12 slides) that highlights key business aspects. It should include:

1. Problem Statement – Clearly define the problem your business solves.

2. Solution & Unique Value Proposition – Explain how your product/service addresses the problem.

3. Market Opportunity – Show the market size and growth potential.

4. Business Model – Describe how you generate revenue.

5. Traction & Milestones – Present key achievements, customer acquisition, or revenue figures.

6. Competitive Advantage – Explain what differentiates you from competitors.

7. Go-To-Market Strategy – Outline your plan for acquiring customers.

8. Financial Projections – Provide realistic revenue and cost projections.

9. Funding Request – Clearly state how much funding you need and how you will use it.

10. Team – Highlight key team members and their expertise.

The concept of net working capital, managing operational finances effectively

Net working capital (NWC) is the difference between current assets and current liabilities. It reflects the liquidity available for day-to-day operations. A positive NWC ensures smooth operations, while a negative one may signal cash flow challenges.

Managing NWC involves optimizing inventory levels, accelerating receivables, and extending payables without compromising supplier relationships. For all entrepreneurs, efficient NWC management is crucial for maintaining financial stability and supporting growth.

By regularly reviewing NWC, entrepreneurs can identify areas for improvement, ensure operational efficiency, and prepare for unforeseen financial needs.

Blockade Verification

Blockade verification involves checking whether a business is under financial constraints, such as frozen accounts or unresolved debts. This step is essential for maintaining transparency and credibility in financial dealings.

Certifications confirming tax settlements are equally important. They assure stakeholders that the business complies with tax regulations, avoiding legal issues. For women entrepreneurs, these certifications build trust with investors, lenders, and clients, facilitating smoother collaborations.

Adhering to these practices not only protects businesses from penalties but also enhances their reputation in competitive markets. 

Certifications confirming the settlement of tax obligations

Certifications confirming tax settlements assure stakeholders that the business complies with tax regulations, avoiding legal issues. For women entrepreneurs, these certifications build trust with investors, lenders, and clients, facilitating smoother collaborations.

Adhering to these practices not only protects businesses from penalties but also enhances their reputation in competitive markets.

Creditworthiness Assessment

Creditworthiness assessment evaluates a business’s ability to repay debts. It involves both quantitative and qualitative analyses. Quantitative aspects include examining financial ratios such as debt-to-equity and interest coverage, while qualitative aspects focus on business history, industry reputation, and management capabilities.

Women entrepreneurs must understand their credit profile to access financing effectively. Building a strong credit history involves timely repayment of debts, maintaining a good credit utilization ratio, and ensuring financial transparency.

This assessment is critical for negotiating favourable loan terms and establishing trust with lenders. Regular evaluations allow entrepreneurs to improve their creditworthiness and prepare for future growth opportunities.

Conduct an assessment to determine the creditworthiness of your enterprise

Assessing creditworthiness begins with a thorough review of financial documents, such as balance sheets and cash flow statements. Entrepreneurs must ensure these records are accurate and up-to-date. Financial ratios, including liquidity and solvency measures, provide insight into the company’s financial health.

Qualitative factors, such as the stability of the management team and market reputation, are also considered. For women entrepreneurs, aligning personal credit history with business credit can enhance the overall evaluation.

Assessment of Creditworthiness: 

• Importance of assessing creditworthiness for accessing financial resources. 
• How to assess one’s creditworthiness? 
• Quantitative analysis
• Qualitative analysis 
• Pitching presentation 

By conducting regular assessments, businesses can identify areas for improvement, strengthen their financial standing, and gain access to a broader range of funding options.

Profitability Analysis

Profitability analysis measures a company’s ability to generate profit relative to its revenue, assets, and equity. Key metrics include gross profit margin, operating profit margin, and return on equity (ROE). These indicators reveal whether the business model is sustainable and efficient.

For women entrepreneurs, understanding profitability helps in identifying cost-saving opportunities and optimizing pricing strategies. Analysing trends over time can highlight the success of initiatives and guide strategic planning.

Importance of Profitability Analysis for Women Entrepreneurs

• Access to Funding – Investors and lenders assess profitability before providing capital.
• Business Growth – Helps decide when to expand, hire staff, or invest in new products.
• Pricing & Cost Control – Ensures products/services are priced competitively while maintaining profitability.
• Financial Independence – A profitable business allows women entrepreneurs to reinvest and scale without relying on external financing.

Effective profitability analysis is crucial for securing investments, as it demonstrates the business’s potential for long-term growth. It also empowers entrepreneurs to make informed decisions that align with their financial goals.

Perform a thorough analysis of your company’s profitability

To perform a comprehensive profitability analysis, begin by calculating profit margins and comparing them against industry benchmarks. This step helps identify whether the business is operating efficiently and competitively.

Next, evaluate cost structures, including fixed and variable expenses, to identify areas where costs can be reduced without compromising quality. Analyse product or service profitability to determine which offerings contribute the most to the bottom line.

For women entrepreneurs, regularly reviewing these metrics supports financial transparency and strengthens their position when seeking funding or partnerships. By optimizing profitability, businesses can achieve sustainable growth and enhance their market presence.

SWOT Analysis

SWOT Analysis is a simple but powerful tool that helps women entrepreneurs evaluate their business by identifying Strengths, Weaknesses, Opportunities, and Threats. It provides a clear picture of where the business stands and helps in strategic decision-making.

What Does SWOT Stand For?

LINK FOR SWOT ANALYSIS GOOGLE FORMS

Why Is SWOT Analysis Important for Women Entrepreneurs?

✔ Helps in better decision-making
✔ Identifies areas for business improvement
✔ Guides in strategic planning
✔ Prepares the business to handle challenges

Conducting a SWOT analysis regularly ensures that strategies remain aligned with business goals. It fosters informed decision-making and equips entrepreneurs with a proactive approach to navigating challenges and seizing opportunities.

SWOT Analysis is a simple but powerful tool that helps women entrepreneurs evaluate their business by identifying Strengths, Weaknesses, Opportunities, and Threats. It provides a clear picture of where the business stands and helps in strategic decision-making.

What Does SWOT Stand For?