MPs launch new inquiry into female entrepreneurship
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Posted: Mon 3rd Feb 2025
The Women and Equalities Committee (WEC) is to examine the barriers women face when starting or growing their own business, and what can be done to address the challenges.
Among the issues that the inquiry will look at are how women can best secure funding to start and grow their businesses, examples of best practice in supporting female-led entrepreneurship in the UK and internationally, and the steps government should take to support the development of female-led high growth enterprises.
Only one in five of all businesses are run by women in the UK, and multiple reports have shown that female get significantly less business funding than men.
All-female founded businesses in the UK received only 1.8% (£145m) of the total value of equity investment in the first half of 2024, a fall from 2.5% in 2023.
In addition, a poll of 100 female entrepreneurs found 85% believed that had likely faced sexism when looking for business funding, and a report by the Rose Review in 2019 found if women started and scaled businesses at the same rate as men, it would deliver a potential £250bn boost to the UK economy.
Women and Equalities Committee chair Sarah Owen MP said:
"There is huge economic and creative potential among women wishing to start and run their own businesses. Yet women face barriers pursuing entrepreneurialism that men do not. They range from gender bias in the provision of financial and other support to challenges around caring responsibilities.
"Women are less likely than men to attempt to start a business. Moreover, when women do ask for funding, they ask for and receive smaller amounts, in part due to the investment landscape being male dominated. Black and minority ethnic female entrepreneurs often experience the worst outcomes in terms of funding and support.
"As the government aims to strengthen economic growth, a timely assessment is needed into what more could be done to help the development of female-led enterprises.
"WEC's inquiry will examine existing policies and assistance for female entrepreneurs, looking across sectors from finance to femtech to identify best practice and address issues in relation to funding and investment."
The questions being asked in the inquiry are:
What are the barriers facing women, including specific groups of women such as those from an ethnic minority background, seeking to start and grow successful businesses in the UK?
In which sectors of the economy do women face the greatest barriers to entrepreneurship, why is this, and what could be done to tackle them?
How can women best be supported to overcome the challenges they face in securing funding to start and grow their businesses?
What examples are there of best practice in supporting female-led entrepreneurship, both in the UK and internationally?
What steps should the government take to help support the development of female-led high growth enterprises?
What data exists or is required to track success and monitor progress in female entrepreneurship?
The inquiry runs until Friday 14 March. If you have any views to share, email Dan Martin on content@enterprisenation.com
Relevant female entrepreneur resources
Download the Enterprise Nation Female Founder Toolkit
Webinar: Five steps to fundraising for female founders
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