SUMMER 2019 WOMEN IN ENTERPRISE Untapped potential ‘Supporting women’s enterprise is crucial to helping individuals realise their full potential and, in turn, boosting the economy’ The UK economy could benefit by £10.1bn if the women who want to start their own business did so, says the Federation of Small Businesses, which is out to boost female entrepreneurship Only 22% of small and medium-sized business employers in the UK are majority owned by women. While research has found that 2.7 million women in the UK would like to open a business, they don’t for a variety of reasons – from a lack of confidence to the inability to access finance. This is a huge loss to the economy; if this untapped potential were harnessed, it could lead to an extra 340,000 businesses, support 425,000 new jobs and add up to £10.1bn to the economy, according to the Federation of Small Businesses (FSB). Last November, the FSB launched a report that revealed an increase in UK economic contribution and employment generated by women-owned businesses. Supporting Women’s Enterprise in the UK: The Economic Case urged the government to build on this with measures such as career advice, role models, and access to business support and finance. Supporting women’s enterprise is crucial to helping individuals realise their full potential and, in turn, boosting the economy. So the FSB established a Women in Enterprise taskforce, and is developing regional events, resources and networking opportunities to achieve a real boost for women’s entrepreneurship. Its research shows women-owned businesses contribute £105bn to the UK economy, which equates to £36k gross value added (GVA) for each person they employ – 6.3% of total UK GVA. While women experience all of the same problems that any small business owner does – cashflow and access to finance, for example – they also experience issues more specific to women entrepreneurs: n Balancing work and family life (40%) n Achieving credibility for the business (37%) n Lack of confidence (22%) A quarter of female business owners highlighted access to finance as a major challenge to them starting their own business. Women are more likely than men to use a single source – and traditional sources – of finance, and need to be made aware of the full range of options available, including crowdfunding and angel investors. Vocational education is one way to grow the next generation of female entrepreneurs, but they need long-term business support to succeed and grow. Better advice and mentoring should be provided and maternity allowance for the self-employed brought in line with Statutory Maternity Pay. More than half (55%) of women business owners have also said they want online, digital and marketing skills. So the FSB has established a joint partnership with Facebook, She Means Business, to offer practical help and support through tools and online learning sessions. Visit the FSB website for more information on its Women in Enterprise work. Credit: Karen Woolley, development manager, FSB Image: iStock / ma_rish For further information, please contact your local Trading Standards Service Untapped potential