A significant number of female business founders in the UK are struggling due to insufficient financial support. This article unveils the obstacles preventing these women from scaling their businesses.
- Nearly 40% of female entrepreneurs cite lack of access to funding as a major barrier to growth.
- A vast majority rely on personal savings rather than external financing for their business ventures.
- Ethnic minority female founders experience heightened difficulties in securing financial support.
- Issues such as unfamiliarity with equity investment and distrust of external ownership inhibit financial progress.
Nearly two-fifths of female entrepreneurs report that inadequate access to funding hinders their business expansion, according to research conducted by Small Business Britain in collaboration with Square and Clearpay. This reflects a pressing need for more equitable investment practices.
A significant 60% of women entrepreneurs avoid external financing altogether, instead turning to personal savings to fund their ventures. This reliance on personal funds underscores the pervasive challenge of accessing institutional capital.
Ethnic minority female founders, in particular, face considerable financial barriers. An overwhelming 88% begin their enterprises with personal funds, often finding formal financial channels inaccessible or unsuitable.
The reluctance to engage with equity investment is prevalent among these entrepreneurs. Many are unfamiliar with the concept, with nearly half expressing concerns about investors owning a stake in their business.
To address these challenges, the report advocates for initiatives such as improved funding accessibility, tailored financial education, and mentorship programmes for women. Such measures aim to enhance the prospects of female entrepreneurs.
Resolving financial challenges for female entrepreneurs is crucial for unlocking their full potential and driving economic growth.
