Fixing the gender gap in start-up businesses
New initiatives aim to remove barriers for female entrepreneurs. David Prosser reports.


International Women’s Day prompted a slew of announcements from campaign groups supporting female entrepreneurs and small-business owners. But while more women than ever before are launching businesses in the UK, the government’s research continues to point to a huge gender gap.
The 2022 Rose Review found that 140,000 companies were established by all-women teams last year, the first time that numbers have outstripped male-led companies. The number of women launching new businesses is growing by a third each year, with young female entrepreneurs increasing in number particularly rapidly.
However, the Rose Review – first launched in 2019, when ministers asked NatWest chief executive Alison Rose to review female entrepreneurship – also notes that women’s small-business ambitions were more likely to have been disrupted by the Covid-19 pandemic than those of men. Female entrepreneurs spent twice as much time discharging caring responsibilities during the crisis, and received only a fraction of the funding from equity investors that their male peers were able to access.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Ministers hope new initiatives from the Rose Review will support female entrepreneurs further. They include a new campaign to be led by the Women Angel Investment Taskforce, which will encourage more women to become business angels and then to support female business founders. There are also plans to expand networking and mentoring schemes.
On financing, ministers have announced a campaign to persuade more financial institutions to sign up to the Investing in Women Code. This requires firms to publish data on the diversity of their small-business funding, and to appoint a senior leader with responsibility for supporting equality. Some 134 firms with capital of almost £1trn have signed so far.
The funding gap
Such funding will be critical to helping more women fulfil their ambitions, with a lack of finance often frustrating female founders. Research published this week by Small Business Britain, a lobby group, suggests as many as 17% of women are keen to start a business following the pandemic, up from 15% a year ago. However, finance for these women remains in short supply – research suggests that women in the UK start out, on average, with 53% less capital when starting new businesses. Male entrepreneurs are 86% more likely to be funded by venture capital.
The problem is not confined to the UK. Across Europe as a whole, female founders have secured just 1.3% of all venture capital funding available since 2017, with many complaining about the unconscious bias of all-male investment teams.
The more positive news is that there are growing resources to turn to for women looking for advice and support as they try to get new ventures off the ground. Startups (startups.co.uk) lists more than 20 groups with bespoke services for women. These range from accelerators and investment houses such as the AllBright Collective and Female Founders Accelerator, to networks such as the British Association of Women Entrepreneurs and the Female Founders Network.Many of these groups also provide support for female business owners once their ventures are up and running.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.
-
‘I installed a heat pump in my home – here are five things I’ve learnt’
From the size and noise of a heat pump to how much it costs to run one, Ruth Emery reveals what she’s learnt after installing one in her home six months ago
-
3 ways to work out if a stock is good value
The only thing you can really control in investing is the price you pay for an asset – but how can you tell if you’re getting a good deal when it comes to the price of a stock?
-
'Rachel Reeves' plan to force pension funds into UK assets won't work'
Opinion Hustling pension fund cash into British assets sounds like a good idea. It would be better to make Britain an attractive place to invest, says Matthew Lynn
-
Supersonic travel: How China could 'leapfrog' US and Europe's commercial aviation industry
Opinion Innovation in commercial aviation has been stuck for 60 years. A commercial supersonic jet might be back on the market soon, but will China get there first?
-
How British businesses can tackle Trump's tariffs
The majority of British businesses are likely to take a hit from the chaos caused by Trump’s tariffs to reorder global trade. Companies in the firing line face some difficult decisions, says David Prosser
-
Trump wants to colonise Mars – will it happen?
Donald Trump wants to plant the US flag on Mars. Could humans really live there?
-
Why are energy bills so expensive in the UK?
Electricity bills in the UK are higher than in any comparable rich country. Some blame the net-zero zealotry of the government for that. What is really to blame for high energy bills?
-
Will Putin invade Europe? Why investors know Russia is a paper tiger
Opinion Markets are right to ignore talk of Putin invading Europe, says Max King.
-
Why French far-right leader Marine Le Pen has been banned from running for office
Marine Le Pen, presidential candidate and leader of France's right-wing National Rally party, has been barred from standing by the country's judges.
-
Five years on: what did Covid cost us?
We’re still counting the costs of the global coronavirus pandemic – and governments’ responses. What did we learn?