Despite women-led businesses showing a global growth, funding is a major challenge.

Research by Workplace Specialists Instant Offices has revealed that 35 per cent of women business founders are still facing gender bias whilst attempting to raise business capital - raising an average of 5 per cent less funding than men in a similar position.  Studies such as this show that men are significantly more likely to become entrepreneurs than women, despite an encouraging growth from four years ago when the number was only 17 per cent.

Statistics show that female business owners are most likely to run a one-woman business, with 37.7 per cent working alone; 27.1 per cent employing two to three staff and 23.4 per cent having teams of four or more.

Businesses owned by women were found to have a bigger turnover rate – not due to failure of the business but for personal reasons, probably to start a family or for childcare problems.  This most prevalent among women aged 25 to 34 years of age.

UK businesses with the highest percentage of female versus male entrepreneurs include Hair & Beauty with 76 per cent female versus 24 per cent male; Consumables with 64 per cent female against 36 per cent male and Wellness with 63 per cent female versus 37 per cent male.

By comparison, women are most under-represented as business owners in Electronics & Appliances, with only 3 per cent female versus 97 per cent male; Construction services with 5 per cent female against 95 per cent male and Outdoor & Garden services, having 5 per cent female versus 95 per cent male.

With funding for women continuing to be a significant challenge, it was found that women are 81 per cent less likely to be confident that they can access start-up funds; estimate that they need 40 per cent less funding to start their business and commence with an average of 53 per cent less capital.  It was also found that 46 per cent of entrepreneurs do not seek scale loans as they expect issues with the process and 30 per cent expect to be refused – leaving only 10 per cent of female-led UK businesses successfully scaling.

Lucinda Pullinger - Global Head of HR at The Instant Group - said:

“The modern workplace has seen a major shift towards greater flexibility, with remote and agile working becoming the way of the future, especially post-pandemic. An increasing number of companies are also looking to initiatives that include men to help move the dial, such as shared parental leave. This allows more women to balance their work and family responsibilities more effectively. As workplaces start reopening in the wake of a disruptive lockdown period, the business world is faced with many exciting opportunities to change and grow for the better. There are many more ways to pave the path to greater gender parity among entrepreneurs, inspiring women in business to thrive.”