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Empowering More Female Entrepreneurs
Despite notable strides in narrowing the gender gap in entrepreneurship and the rising visibility of high-achieving women in business, female founders remain significantly underrepresented in the business world.
Recent data from the Gender Index reveals that only 19.1% of active UK companies are led by women1. The Government’s Women-Led High-Growth Enterprise Taskforce reported a similar imbalance. In 2024, just 18% of high-growth enterprises had at least one female founder, versus 82% founded exclusively by men. Unlocking the full potential of female entrepreneurship could inject billions into the economy and bolster Britain’s ambitions to become a global tech powerhouse.
In my experience of working with women founders, there are several factors at play here.
First, I see confidence as a recurring barrier. Many women may hesitate to take the leap into entrepreneurship, especially when it comes to financial risk-taking, such as applying for loans or seeking investment, often leading to hesitation in pursuing business opportunities and applying for funding.
Women still take on the majority of ‘unpaid labour’ including household and childcare responsibilities, in comparison to their male counterparts. In fact, the Centre for Progressive Policy found that every year women in the UK are providing 23.2bn hours of unpaid childcare care, worth an estimated £382bn.
It is because of these commitments that female-led businesses tend to grow more slowly. Managing limited funds around childcare and other costs restricts both their time and resources available to invest fully in their businesses, so ventures are often started as a ‘side-hustle’ around main employment.
Networking groups, accelerators and business support programmes can spark ideas and foster connections. However, these resources are often less accessible to women, particularly those navigating childcare responsibilities or tight schedules. Adjusting the timing of business events to accommodate women with familial responsibilities and busy working lives can make a world of difference, while establishing dedicated support networks and mentorship programs can help build confidence and encourage women to take calculated risks in their entrepreneurial journeys.
When it comes to funding, addressing the equity gap remains critical. Entrepreneurs and founders care deeply about their businesses but they – and in my experience, women in particular – are also very wary about seeking capital. They're not prepared to take it from just anyone, or want a greater understanding of the financial commitment over time, and that can lead to more cautious approach. This - while understandable - can slow growth and limit opportunities. Simplifying access to early-stage investment and debt funding will be essential in ensuring that more female-led ventures scale successfully.
Debt-funding is also behind the curve for women. A report from The Entrepreneurs Network found that there is also a disparity between male and female-led businesses when it comes to bank lending, despite approval rates being the same. Loans to women tends to be smaller for different reasons, including lower annual turnovers and the fact that men are more likely to have more capital-intensive industries.
The trend is similar here in Lancashire, with female-led businesses in the marginal few. But what is great is that the County Council is leading the charge with its Business Growth Service, making it easier and more accessible for people to seek both growth support and investment in their business in a way that is tailored to their requirements.
Trusted services like Rosebud, which provides loans from £25k to £100k and support services to early-stage and growing businesses who are based in the region, is one example that demonstrates how localised, strategic support can yield results.
While the barriers facing female founders are well-documented, tackling them requires practical interventions. Bridging the confidence gap, easing financial constraints and ensuring that both investment and debt funding reaches readily into female-led ventures will not only benefit women entrepreneurs but also unlock untapped economic potential.
If the UK is serious about cementing its status as a global tech powerhouse, it cannot afford to overlook a huge percentage of its entrepreneurial talent.
techUK’s TechTogether campaign, taking place throughout March, is a collection of activities highlighting the UK’s technology sector pursuit to shape a more equitable future. In 2025 we are exploring: Inclusive AI, investing in diverse founders and entrepreneurs, the power of allyship and mentorship, and empowering young people.
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Authors
Ann Jordan Dean MBE BL
Ann Jordan Dean MBE DL is chair of the Lancashire Digital Skills Partnership. An experienced NED, Ann owns her own PR and marketing consultancy, and is closely involved in a variety of community projects in Lancashire and the North West.