The age gap between genders is large throughout the world, even in progressive and developed societies like the UK. Lately there have been quite a few studies showing that the gap between men and women entrepreneurs is staggering, with women only making up one-third of people leading companies. With this new research, initiatives are being created to facilitate female-led businesses and narrow the gap. By doing so, the UK government hopes to boost a post-Brexit economy.
The Wage Gap
According to a report from the Rose Review of Female Entrepreneurship, which is an independently reviewed commission by the Treasury of the UK, just 44 percent of businesses are led by women. Men are five times more likely to deliver business with a £1 million turnover. The report claims that the lower rates of women business leaders is due to several barriers that women face in business. These include other factors like fear of failure, but are mainly attributed to lower access to capital. At the moment, according to MoneyPug, a site used to find short term loans, around 6 percent of British women run their own businesses, compared to 11 percent in the US. The goal of the British government is to raise the number of female entrepreneurs by 50 percent by 2030.
“Investing in Female Entrepreneurs” Code
To increase female access to capital, lower risk awareness, change misperceptions that women lack skills and experience, and to support women with mentors and family care responsibilities, the UK Treasury has established a new initiative.
Working the UK Finance, the “Investing in Female Entrepreneurs” code will focus on how financial institutions can make better funding decisions that will promote women as leaders of businesses and boost the economy overall.
The government will improve online information and guidance for women who are aspiring entrepreneurs. This will help them develop local businesses, provide mentors, and facilitate necessary education. This and other initiatives aim to help women by funding their projects. While this code will be applied to lenders and banks, there are new private initiatives where women can get the funding they need.
Programmes that Fund Women-Led Businesses
A perfect avenue for young entrepreneurs, She can. She did. connects new businesswomen with a network of peers. They offer a wide variety of resources for young women looking to build a business. This will help find others like them to collaborate with on new business ideas.
Another programme for those seeking mentorship, Female Founders aims to connect women business leaders to people who can guide them to success. This programme offers expertise for those who need it to start a successful business. Female Founders also offers up-to-date research and issues that affect female entrepreneurs.
For Working Ladies is designed to help women working remotely. This network offers digital content and events for professionals. Personal finance and support is covered on their website and topical meet-ups help women interact with each other and find investment. A modern take on female businesses, this programme can help women create a business for the future.
A programme for aspiring female entrepreneurs, for which there are many, to start their own ventures, Driven Woman helps those unsure how to get started. Since 2013, they have helped launch businesses across Europe for like-minded women. They offer action-driven exercises that hold you accountable. This will help motivation and launch the business more quickly and efficiently.
WiRE is great for women business owners in rural communities. This business network offers support and access to 50 networks around the UK where the businesswoman can learn new skills and expertise while building a support group.
The Economy as a Whole
The goal of the UK government’s broader initiative is to boost the economy overall by offering women help to start their ventures. They have said that it could generate up to £250 billion in the British economy. With many options for private funding that grow every day, there is no reason the wage gape should be so drastic. Not only is narrowing this gap imperative morally, it will help the UK move towards a prosperous post-Brexit future. With the right support, women across the UK can start their own business and become a success.