Policy 6: Support more women to start and scale businesses
In collaboration with The Coalition for a Digital Economy (Coadec), we have produced a manifesto to make Britain the best place in the world to start and grow a business. It features 21 policies across three key policy areas: access to talent, access to investment, and regulation. Over December, we’ll be sharing one policy every day. To read the full manifesto, click here.
Women have made great strides in entrepreneurship this past decade. In 2011, 11% of startups that raised equity investment for the first time were female founded. By 2018, the figure had almost doubled to 21%. Once funded, women-led businesses are just as likely to secure second and third rounds of financing.
Barriers to participation and growth persist, however. Just one in five business owners is female and women-led firms are underrepresented in those sectors most likely to scale (e.g. tech and IP-based businesses). Studies suggest they are held back by three factors: access to finance, risk aversion, and access to networks.
We offer three recommendations to ensure more women start and scale businesses. First, we need to tackle STEM drop-off rates by gathering more data, consulting with schools and universities to examine the role of socialisation in the disparity, and examining how careers guidance could inform and tackle gender stereotypes.
Second, we should ensure the Minister for Women and Equalities has female entrepreneurship in their remit, and encourage MPs and Ministers to open the doors to Number 10 and the House of Commons to formally validate and celebrate female entrepreneurs’ efforts.
Finally, a lack of networking opportunities remains a persistent barrier to female founders. By providing networks – through LEPs, for instance – and encouraging more female employees and founders to get into schools and universities, we can shine a spotlight on role models and inspire the next generation.
If women set up businesses at the same rate as men, we’d have 1.1m more in this country. If they can scale them at the same rate too, we could add nearly £250bn to the UK economy.