Women entrepreneurs could add £250 billion to the UK economy with equal access to finance and the right support, according to the Minister for Business and Trade and Minister for Women and Equalities, Kimi Badenoch.
This comes after the government published the The Third Annual Report of the Investment in Women Act (IWC)revealing the significant progress that has been made in bridging the financing gap between female and male entrepreneurs.
IWC now covers a large proportion of the SME lending market, accounting for 39 per cent of UK venture and growth equity deals, up from 24 per cent in 2020.
The report also showed that 35 percent of all venture capital deals entered into by IWC signatories were in companies founded by women in 2022, compared to the market average of 27 percent.
IWC was established four years ago as a landmark government-led initiative as a result of Rose Review’s findings that lack of financial support is one of the most significant barriers for women seeking to effectively scale businesses.
Commenting on the results, Sheila Flavell, CBE, Chief Operating Officer, said: FDM groupHe added, “The report shows how important progress has been, but more work needs to be done to close funding gaps. Providing equal access to finance will be the necessary push to unlock the potential of businesses founded by women and will help strengthen the government’s commitment to further developing the economy.” – Even against a difficult economic background, this issue should not be dropped.
“Actions by signatories implementing various measures to improve their support for women entrepreneurs is critical in building trust. Implementing policies, networking that focuses on women, recruiting from a more diverse pool of candidates, providing mentoring from other entrepreneurs to name a few, are some of the major efforts needed to achieve gender equality in the startup ecosystem.”
More than 200 organizations signed up for the IWC, depicting the growing number of people committed to increasing levels of financial support toward women-led businesses, and highlighting that code is the leading method for addressing the pervasive financial divide.
Business and Trade Minister and Minister for Women and Equalities Kemi Badenoch said: “It is fantastic that members of the Invest in Women Act are leading the way in addressing the financial gap between male and female entrepreneurs, ensuring that the UK is the best place in the world to start a business, regardless. about sex.”
The results also show how women investors are still underrepresented on investment committees. Signatories report 32 percent female representation on their investment teams, and less than a quarter (24 percent) on their investment committees.
Additionally, the report highlights the relationship between more diverse investment committees, and successful offerings from all-women and co-ed leadership teams, which has become a critical area to address.