A record number of businesses were founded by women in 2022; however, less than a third of UK small firms are owned by women and female business leaders report significant issues with gender bias.
This year's International Women's Day on 8 March has seen a focus on the gender gap in business; while there is some good news on the number of women starting a business, new survey findings suggest that there is a long way to go, with Baroness Karren Brady describing gender bias experienced by female small business owners as "astonishing".
This year's Rose review, conducted by NatWest chief executive Alison Rose, has found that a record 151,603 businesses were founded by female entrepreneurs in 2022, up from 145,271 in 2021.
The Rose Review provides an annual barometer of the disparity between female and male entrepreneurs; it was first commissioned in 2019 by HM Treasury based on a survey of business leaders, investors and academics. The latest data shows that the number of female-led start-ups in 2022 is over double the number in 2018, setting a new high for female entrepreneurs.
Commenting on the findings, Sheila Flavell, coo for FDM Group, said: "It is brilliant to see the increasing number of female entrepreneurs launching businesses in the UK and this continued rise will be at the centre of growing the business economy … The gender gap in business won't be solved instantly, but continued progress is essential to creating a diverse and equal workplace … The hope is that these numbers continue to rise significantly for 2023's review."
Gender gap in business
However, new research conducted by Simply Business shows that there is still a significant gender gap when it comes to small business leaders. Its survey of 900 women has found that sexism and lack of government support are cited as key reasons why less than a third of UK small businesses are owned by women.
In fact, a shocking 81% of female business leaders polled say they have experienced sexism, gender inequality or unequal access to opportunities whilst running their own business. The majority (92%) also say that the government should be doing more, with childcare support, government-sponsored funding and access to mentoring and networking called out as areas for improvement.
The key findings show that:
- 50% of women polled have experienced sexism as a business owner;
- 32% have experienced gender inequality or unequal access to opportunities;
- 39% say investors, colleagues and customers underestimate them when compared to men in a similar position;
- 26% say they aren't taken as seriously as men when pitching their product/business;
- As a result, 33% would categorise the issue of gender bias and inequality in business as "severe".
Simply Business has launched the Empowering Women in Business initiative in partnership with Baroness Karren Brady. Aimed at helping female entrepreneurs to overcome the challenges they are facing in business, the initiative will see one female entrepreneur win a one-to-one mentoring session with Baroness Brady. Entries are open until 5 April.
Gender bias in small business is "astonishing"
Baroness Brady, ambassador for Simply Business, said: "The level of gender bias and inequality within the small business sector revealed, is quite frankly astonishing. Sexism and bias, whether conscious or unconscious, must be called out for a genuine chance of equality in business. The economy needs the support of small businesses in the UK and we must inspire women to get into business, and help abolish the challenges they face daily."
The findings also highlight the barriers to growth that female business leaders face. Despite the fact that 85% of women entrepreneurs want to grow their business, almost half (44%) said scaling up remains one of their biggest challenges.
Written by Rachel Miller.