Despite the existence of a pro-equality regulatory and institutional framework, women SME owners in Southern Benin face systemic obstacles, revealing structural inadequacies in the state apparatus. This qualitative study employs a dual approach combining systemic analysis and intersectionality theory. The objective is to examine the strengths and limitations of Benin’s regulatory and institutional framework concerning SMEs owned by young and adult women through a differentiated lens. Data were collected through a comprehensive 2025 field survey among women SME owners and various support stakeholders in Southern Benin. Findings reveal that the regulatory and institutional framework fails to address both common and specific structural inequalities affecting women SME owners. From an intersectional perspective, young women are particularly disadvantaged by legitimacy deficits, spousal control, and institutional Gender-Based Violence (GBV), while adult women face constraints from family responsibilities and technological/educational exclusion. Policy ineffectiveness stems from the system’s failure to integrate differentiated socio-cultural realities, calling for a shift toward structural equity through targeted systemic reforms. This research extends systemic and intersectional analyses by documenting the multidimensional, age-differentiated constraints encountered by women entrepreneurs in Southern Benin. Our original contribution lies in analyzing Benin’s regulatory and institutional framework through a systemic and intersectional lens, revealing its inability to address both common constraints and age-specific needs.