Facts about women in business

women in business stats

The UK may be the start-up capital of Europe, but not when it comes to women. Despite a sharp increase in female self-employment since the 2008 downturn, the number of women starting and scaling businesses remains much lower than that of men, and of women in similar economies. What’s holding us back? The picture varies depending on the stage of intention or business, but the mix is the same: access to funding and networks, primary care responsibilities, sectors and skills.

Women in business and self-employment, female entrepreneurship and enterprise facts and statistics are listed here on the Prowess website. This is a useful resource for journalists, researchers and students.

If you can’t find the information you’re looking for on this page, use the internal ‘search’ box (top right) – the Prowess site is full of information based articles. Many of the source reports for the facts here can be found in the publications section.

UK Women in business: key facts

  • Only 1 in 3 UK entrepreneurs is female: a gender gap equivalent to 1.1 million missing businesses. (Rose Review of Female Entrepreneurship, HM Treasury 2019)
  • In 2017, only 5.6% of UK women run their own businesses, compared to 15% of women in Canada, almost 11% of women in the US, and over 9% of women in Australia and the Netherlands. (Rose Review of Female Entrepreneurship, HM Treasury 2019)
  • Self-employed women are the majority of the newly self-employed. The increase in the number of women in the UK becoming self-employed is unprecedented. Historically, women have made up just over a quarter of the self-employed, but since the 2008 downturn 58% of the newly self-employed have been female. In the last year, self-employment has started to decline for men, but not for women. (Women’s Budget Group, 2016)
  • There are now almost 1.5 million women self-employed which represents an increase of around 300,000 since before the economic downturn (Women in Enterprise: A Different Perspective, RBS Group 2013).
  • Women account for 17% of business owners, ie. owners/ managers/ employers ( Women in Enterprise: A Different Perspective, RBS Group 2013)
  • UK Women’s businesses have a higher churn rate (ie. more start-ups and closures). But women are less likely to attribute closure to ‘business failure’ and more likely to cite ‘personal reasons’ – which peak at age 25-34 for women. (Women in Enterprise: A Different Perspective, RBS Group 2013)

Global context for women’s enterprise

  • In 2016, an estimated 163 million women were starting or running new
    businesses in 74 economies around the world. In addition, an estimated 111
    million were running established businesses. (Women’s Entrepreneurship 2016-2017, GEM 2017)
  • At every level of entrepreneurship, women are at least 20% more likely to cite necessity rather than opportunity as their motivation. But most are still opportunity driven, particularly in innovation-driven ventures, where women are over three and a half times more likely to cite opportunity motives than necessity motives.
  • (Women’s Entrepreneurship 2016-2017, GEM 2017)
  • An estimated 48 million female entrepreneurs and 64 million female established business owners currently employ one or more people in their businesses; seven million female entrepreneurs and five million established business owners are expected to grow their ventures by at least six employees in five years. (Global Report on Women and Entrepreneurship, GEM 2012)
  • In every single economy included in the study, women have lower capabilities perceptions than men. In every region, women have, on average, a greater level of fear of failure than men. (Global Report on Women and Entrepreneurship, GEM 2012)
  • Around 30% of all US businesses are majority female-owned. The number of women-owned businesses continues to grow at twice the rate of all US firms, and they are increasing in economic clout.
  • In 2004, the average level of female total entrepreneurial activity (TEA) rate across the 34 GEM countries varied from 39.1% in Peru to 1.2% in Japan. (Global Report on Women and Entrepreneurship, GEM 2004)

The economic case for women’s enterprise

women in business graphic

  • Up to £250 billion of new value could be added to the UK economy if women started and scaled new businesses at the same rate as UK men. Even if the UK were to achieve the same average share of women entrepreneurs as best-in-class peer countries, this would add £200 billion of new value to the UK economy (Rose Review of Female Entrepreneurship, HM Treasury 2019)
  • Women in the USA are twice as likely to be entrepreneurially active as women in the UK. The entrepreneurial rates for men are roughly the same in the UK as the US, any significant increase in business formation will only come from encouraging more women into business. (Harding, R., ‘State of Women’s Enterprise in the UK’  Prowess, 2007)
  • Women also bring a diversity dividend as non-executive directors of companies: gender-balanced boards are more successful than mono-cultural boards on every measure. (McKinsey & Co 2007).
  • Placing greater value on female-dominated personal and social services, community and social services is an important part of decoupling prosperity from pollution-based growth. (‘Prosperity without Growth’, Jackson, 2009).
  • Increasing numbers of women are studying science, engineering and technology (SET) degrees, but over 70% drop out of SET careers, compared with half of men. This is a huge waste of investment, talent and opportunity, especially as the key challenges of our time – renewable energy, food security, medical advances – require diversity of technical and societal engagement. (UKRC for women in SET 2011)
  • The growth in women’s enterprise in the USA has been aided by Federal recognition of its importance and a sustained commitment to its development over a thirty-year period. Although there have been remarkable policy developments in the UK over the past five years, it will take sustained commitment to ensure an equivalent level of development in women’s enterprise within the UK. (Carter, S., & Shaw, E., ‘Women’s Business Ownership’, report to SBS/ DTI 2006)
  • Women starting up in business will tend to provide a more immediate contribution to the economy: Around one in five women come into self-employment from unemployment compared with around one in fifteen for men. ( ‘Promoting Female Entrepreneurship’ SBS/ DTI, 2005)
  • A pound invested in developing women’s enterprise provides a greater return on investment than a pound invested in developing male-owned enterprise. (Chief Executive of the Small Business Service, Martin Wyn Griffith, Speaking at the National Dialogue for Entrepreneurship, Washington DC, March 2005).

Gender differences in motivations for starting a business

  • Flexibility around family care is the #1 reason to start a business for women with children. (Rose Review of Female Entrepreneurship, HM Treasury 2019)
  • Women were nearly five times more likely to mention family reasons for becoming self-employed than men. A fifth of females chose to work as self-employed to help combine ‘family commitments/wanted to work at home’ and employment in a flexible manner. Conversely, men were almost twice as likely to say that one of the reasons they became self-employed was to ‘make more money’ than were women. (ONS Regional Trends, Women in Business 2009).
  • On average about 30 per cent of self-employed women and 8 per cent of men work at home. (ibid ONS 2009).

 Gender difference in attitudes to starting a business

  • Women were 55% more likely than men to cite fear of going it alone as a primary reason for not starting a business. (Rose Review of Female Entrepreneurship, HM Treasury 2019)
  • Women are less likely to believe they possess entrepreneurial skills: Only 39% of women are confident in their capabilities to start a business compared to 55% of men. This is a perceived gap in ability, rather than an actual gap in skill sets. (Rose Review of Female Entrepreneurship, HM Treasury 2019)
  • Only 8.6% of all UK women surveyed in the Global Entrepreneur Monitor in 2017 said they plan to start a business in the next three years, compared to 14.3% of men (Global Entrepreneurship. Women’s Entrepreneurship 2016/2017 Report, report, 2017.)
  • More than half of of self-employed women (53%) work part-time compared to 17% of self-employed men. (ONS Labour Market Statistics, September 2014)
  •  Established women-owned businesses are more ambitious than their male counterparts. (GROWE Report, Women’s Enterprise Task Force 2009).
  • Women start businesses under-capitalised. It’s not just lower financial capitalisation, women also have lower levels of human (management training and experience) and social (effective networks) capital.  This under-capitalisation hinders women’s prospects and also their confidence about their ability to start a business. While studies often suggest female entrepreneurs are held back by risk aversion and low confidence, in fact ‘it is likely that this is not an individualised problem of self-confidence but more an informed assessment’ about how well prepared they are. (Women in Enterprise: A Different Perspective, RBS Group 2013).

Facts about female innovators and growth-focused entrepreneurs

  • Women are nearly three times as likely to collaborate with research institutions (universities in particular) than male businesses (11.4% compared with 3.8%) (ibid British Chambers of Commerce 2004)
  • Female entrepreneurs are more likely to a product or service unfamiliar to the market, to have fewer competitors, and they are more likely to be using technology in their products or services than their male counterparts. In addition, they are more likely than male businesses to be offering a product or service to the market that has been developed in the last year. (ibid British Chambers of Commerce 2004)
  • Across the SET (science, engineering and technology) sectors, there are 10 times as many male-owned than female-owned companies (Labour Force Survey, Quarter 4 2006, Office for National Statistics).
  • Another female business owner is by far the most inspirational figure for women deciding to start a business in SET industries (‘Under the Microscope’, Prowess/ UKRC 2007).
  • Women-owned businesses win less than 5% of corporate and public sector contracts. (NPCWE / Prowess  ‘Procurement: Fostering Equal Access for Women’s Enterprise, 2009)
  • When firm characteristics (size, sector, age, funding) are controlled for, women-owned firms outperform those owned by their male counterparts. (Women in Enterprise: A Different Perspective. RBS Group 2012)

 Facts about access to finance for female entrepreneurs

  • Around one-third of women say access to funding is the biggest barrier to starting a business, compared to 20% of men. A similar proportion cites funding as a barrier to scaling up an existing business. (Rose Review of Female Entrepreneurship, HM Treasury 2019)
  • Only 1% of all venture funding goes to businesses founded by all-female teams, inhibiting scale up (UK VC & Female Founders, report, February 2019.)
  • Women-led businesses achieve far lower levels of equity investment, with male entrepreneurs 86 per cent more likely to be venture-capital funded, and 56 per cent more likely to secure angel investment. However, when they do secure investment, women’s businesses show returns of 20 per cent more revenue with 50 per cent less money invested (Untapped Unicorns, Female Founders Forum/ Barclays 2017)
  • In 2016, 91 per cent of investment by value was directed into companies without a single female founder, while just 9 per cent went to companies with at least one.
  • (Untapped Unicorns, Female Founders Forum/ Barclays 2017)
  • Women are around ten per cent more likely than men to see finance as their only barrier to entrepreneurship. Education and training reduce the difference. (Kwang, Jones-Evans and Thompson. 2012)
  • Women start businesses with around one-third of the level of finance of their male counterparts, in every size and sector of business. (ibid Carter & Shaw 2006)
  • Women use a narrower range of types of finance in their businesses. They are much less likely to use private equity or venture capital. (ibid Carter & Shaw 2006)
  • Women are more likely to be offered business bank loans and also more likely to turn them down. (ibid Carter & Shaw 2006)
  • Recent evidence from the UK Survey of SME Finances reported that women were charged more than men on term loans (2.9% vs. 1.9%). No other study has found such a large difference in loan terms, and this result needs further research and explanation (ibid Carter & Shaw 2006).
  • Fear of debt is the single largest barrier to entrepreneurship for both men and women, although women are significantly more fearful than men. (ibid GEM, London Business School 2004)
  • Women in the UK are twice as likely to live in poverty as men and they have more to risk by coming off benefits. On average, benefits and tax credits comprise one-fifth of women’s income and less than one-tenth of men’s (Fawcett Society 2005).

Facts about women-friendly business support, skills and training

  • Women who have undergone some form of enterprise training are twice as likely to be engaged in entrepreneurial activity (GEM UK 2005).
  • The choice of targeted female-focused business support is important to women. The National Council of Graduate Enterprise (NCGE) reports that 98% of women chose to participate in their Women’s Flying Start Programme because it was women-only. The number of women accessing the NCGE’s Flying Start programme increased by 800% when a women-only option was introduced. Similarly, 98% of women involved in the pioneering Enterprising Women initiative said women-specific support was either important or very important to them. (Enterprising Women Evaluation and Research Report 2007).
  • 70% of women-owned businesses seek advice at the start-up phase compared with 64% of all businesses (ibid SBS /DTI 2005)
  • Following a sustained strategy to make its services more women-friendly, the national Business Link service increased its proportion of female clients from one-fifth to one-third, between 2003 – 2006. (GROWE Report, Women’s Enterprise Task Force 2009)
  • Majority female-owned businesses are more likely to use an accountant than majority male-owned businesses and less likely to use no external advice than majority of male-owned businesses (Dr Stuart Fraser, Finance for Small and Medium-Sized Enterprises, 2005).
  • Targeted Women’s enterprise initiatives complement and add value to mainstream business support services located nearby. The West Midlands Regional Women’s Enterprise Unit (RWEU) found that 58% of their clients in 2007 had not previously used ‘mainstream’ business support. A 2008 analysis found this figure had risen to 90% (Impact Assessment, RWEU 2008).
  • 38% of women in the UK compared to 3% in Europe take advice from government business support. Women are more likely to use all forms of business support, whether public or private sector or informal in origin than men. They are more likely to access support from professional services, banks and governments than their European counterparts. (‘Challenges and Opportunities for Growth and Sustainability (COGS): A focus on women in the UK and Europe’. Delta Economics, 2011)
  • People who have taken up entrepreneurship training are three times more confident about having the skills to run a business.  (GEM Special Report: A Global Perspective on Entrepreneurship Education and Training, 2010).

Facts about self-employed women and childcare

  • Women are twice as likely as men to mention family responsibilities as a barrier to starting a business. In addition, for female entrepreneurs with children, primary care responsibilities are the #1 barrier to further business success, with 46% of female parent entrepreneurs identifying it as a “very important” or “important” barrier versus 33% of male parents with businesses. (Rose Review of Female Entrepreneurship, HM Treasury 2019)
  • Maternity can be a particular challenge for women entrepreneurs and small business owners, as the legal framework and protections available for employees do not apply (although the self-employed may be able to claim Maternity Allowance). (Women’s Business Council, Enterprise Evidence Paper, BIS 2012).
  • Pregnant female entrepreneurs are less likely to plan to take any time off as formal maternity leave (Rouse 2009).
  • Enterprise programmes often ignore childcare issues and that childcare can act as a cause of business failure (Rouse & Kitching 2006).
  • More women use self-employment as a temporary solution to combining child-care and income generation at specific points in their life, seeking to select back into employment when they feel it is appropriate (Jayawarna, Rouse and Kitching 2011).
  • Women cite childcare as a barrier to enterprise, but some analysis suggests that rather than the key issue being the availability of formal childcare, it is often that
  • women want to care for their children themselves. Nonetheless, in much of the research into barriers to economic activity, women cite a lack of affordable
  • childcare provision as a barrier to entry. (Women Returners and Enterprise, Timewise Foundation 2009)

Facts about female social enterprepreneurs

  • For the UK as a whole, women are more likely than men to be involved with a socially orientated start-up 5.8% of women compared to 4.9% of men. (Global Entrepreneurship Monitor Focus on Social Entrepreneurs, GEM 2004)
  • Women are more likely than men to think that social, ethical and environmental considerations in business are important. (59% compared with 48%) (A Survey of Social Enterprise Across the UK, DTi, 2005)
  • The gender gap for social entrepreneurship activity is far narrower than for mainstream enterprise activity (ibid Prowess/GEM 2006)
  • 44% of women-led SMEs considered themselves to be a social enterprise, compared to 26% of all SMEs. However, only 9% of women-led SMEs (and 7% of all SMEs) conform to the BIS definition of a social enterprise (‘BIS Small Business Survey 2010: Women-led business boost’ Department for Business Innovation and Skills, 2011)

Facts about black, Asian and minority ethnic women entrepreneurs

  • Women of mixed ethnicity are over two and a half times more entrepreneurial than white women (ibid GEM, London Business School, 2006)
  • BAME female entrepreneurship is clustered in areas of multiple deprivation, suggesting that ‘employment substitution’ is taking place with low-paid work being sub-contracted and women having to act on their own account (ibid Harding 2007)
  • The predominant source of start-up finance for many ethnic groups is friends and family. The figures are ‘other Asian’ 53.4%, Pakistani 93%, Black African 52.6% and Black Other 52.9%. The predominant source of finance for White people is bank overdraft (29.3%) as it is for Black Caribbean people (38.8%) (ibid GEM, London Business School 2004).
  • For black people, there is almost no entrepreneurial gender gap (black female entrepreneurial activity is 97% of black male entrepreneurial activity) (ibid Harding 2007).
  • Total Entrepreneurial Activity (TEA) for white females is 3.6% and is two and a half times higher amongst women from mixed backgrounds (10.2%), for Bangladeshi women it is (10.9%), Other Asians (10.3%) and Black Caribbeans (10.5%). The most entrepreneurial female grouping is that of ‘other Black’ at (29.9%) of all women. (ibid GEM, London Business School 2004).
  • Black women are most likely to feel that ethnicity has a strong impact on business (80%), compared to Chinese women (46%) and Asian women (46%). (Ethnic Minority Business Conference 2005)
  • 25% of ethnic minority-owned businesses report a lack of self-confidence with finance, which is above the average level (16%). (Dr Stuart Fraser, Finance for Small and Medium-Sized Enterprises, 2005)
  • A survey of over 300 BAME women leaders found that over three quarters felt the leadership style of white women is more positively perceived in the workplace and 80% felt that the communication style of white women is more positively regarded. (Different Women, Different Places, The Diversity Practice Ltd, 2007)

Facts about girls, women and enterprise education in schools and university

  • Amongst younger age groups, 18 to 24 and 25 to 34, female entrepreneurship is still half of male entrepreneurship, but the picture amongst students is more promising with a TEA female rate of 2.6% compared to male TEA rate of 1.6% (The Enterprise Report, Enterprise Insight, 2005).
  • It is amongst the 18-24 age group that individuals are most likely to think that entrepreneurship is a good career choice and that it has a high status in society (84% compared to the 75% in the next age group) ( ibid Enterprise Insight 2005).
  • Entrepreneurial activity amongst people with no formal education is very high in the 18-24 year old age group (14.2%).  Indeed for the 18-24 year old age group, entrepreneurial activity is twice as high in this category as it is for any other qualification level.   (ibid GEM, London Business School 2004)
  • Male and female students are equally likely to participate in school enterprise education, but males are 50% more likely than females to be interested in starting their own business as a result.  In contrast, the girls are significantly more interested in setting up a charity or social enterprise. ( ‘Enterprise Insight Impact Evaluation, 2009).