Empowering Women-Led Businesses: A Necessity For Future Growth

Today, I had the profound honour of officially launching the Women and Enterprise All-Party Parliamentary Group (APPG) report – The Future of Female Entrepreneurship: Strategies for Scaling Up – at the House of Commons.

This significant milestone is the culmination of over two years of dedicated, painstaking research – truly a labour of love – conducted in collaboration with Anglia Ruskin University, AREA Interns, the X-Forces Enterprise team, two management consultants, hundreds of hours of desk research, and two government administrations! 

Our Education and Skills workstream, co-led by Prof. Gary Packham and myself, has identified four critical phases in the entrepreneurial journey:

1. Pre-Startup
2. Startup
3. Growth
4. Scale-Up

This framework offers a structured understanding of the unique challenges entrepreneurs face at each stage. Our focus has been on those in the growth and scale-up phases, recognising that while formal enterprise education is vital, women scaling businesses encounter distinct learning challenges not adequately addressed by existing educational structures.

Key findings from our research include:

• Changing Landscape of Female Entrepreneurship: Despite economic challenges, the proportion of UK adults starting or running a business reached 12.9% in 2022, surpassing pre-pandemic levels. Notably, female-led businesses grew at a faster rate than their male counterparts, with the male-to-female entrepreneurship ratio improving from 1.7 in 2019 to 1.4 in 2022.
• Global Comparison: The UK ranks 25th out of 51 countries in entrepreneurial activity, trailing nations like the UAE, India, and the United States. This under-performance highlights the need for enhanced enterprise education to boost entrepreneurial ambition and skills development among women.
• Start-Up and Scale-Up Activity: Comparisons between the UK and the US reveal that 9.7% of women in the UK are involved in startups, compared to 18.1% in the US. Additionally, only 4.1% of women in the UK run established businesses (3.5+ years old), versus 7.9% in the US.
• Access to Funding and Investment: Women-led businesses receive a mere 2.3% of venture capital funding. While initiatives like the Women Angel Investment Taskforce have been introduced, a broader approach is necessary to bridge this funding gap.
• Building Networks and Strategic Partnerships: Limited access to networks and mentorship remains a significant barrier. Expanding peer-to-peer support, mentorship programmes, and networking events is essential for female entrepreneurs navigating growth and expansion.
• Lack of Entrepreneurial Education and Skills Training: There’s a pressing need for flexible, digital, and tailored learning opportunities to accommodate time-constrained female entrepreneurs. Bite-sized, on-demand learning resources should be expanded to provide critical knowledge at pivotal business stages.
• Overcoming Gender Bias in Business and Investment: Biases in investment decisions, market access, and consumer perceptions persist. Promoting gender-inclusive business initiatives and awareness campaigns is crucial to dismantle systemic barriers.

What is particularly reassuring is that my fellow colleagues and co-authors have identified similar challenges and recommendations. Karen Tracey has emphasised the importance of mentoring and coaching, while Teresa Boughey has highlighted the significance of Environmental, Social, and Governance (ESG) considerations. Prof. Gary Packham and I have observed that, despite considerable efforts over the decades, progress has not been as substantial as it should be.

Among our recommendations, one stands out: ensuring access to knowledge and resources precisely when they are needed. While excellent programs like accelerators and online portals exist, their impact can be amplified through strategic investment and targeted marketing.

Another critical point is the necessity for large corporations to engage with and procure from women-led small businesses. This approach offers a sustainable and less risky path to growth. With the rise of social value initiatives, collaborative efforts between the government and private sector can drive significant progress in this area.

Reflecting on my role with the Armed Forces community and X-Forces Enterprise, I am immensely proud that 30% of the businesses we have supported are women-led  – a phenomenal achievement. Together, we will continue to advocate for these recommendations, ensuring that both women and men in business receive the support they need to thrive.

Addressing these challenges is not only an economic imperative but also a societal one. By implementing these recommendations, we can create a business environment where women have the necessary tools, resources, and support to thrive, driving the UK’s future growth and prosperity.

You can find the report’s key recommendations to empower female entrepreneurs here, and I will expand on these in a subsequent blog.