In partnership with Starling Bank, Small Business Britain polled 1,000 female entrepreneurs in the UK last month, ahead of International Women’s Day tomorrow (8 March). Their findings, published today, showed that women who start their own business report a significant boost in confidence, resilience and self-belief.
Researchers also found that two fifths of women are driven to start their own business to pursue their passion.
However, UK female entrepreneurs are 31% less likely to be successful in funding applications than male entrepreneurs, a report published on Wednesday (5 March) by the team behind National Women’s Enterprise Week (NWEW) showed.
According to Elizabeth Cowper, founder and CEO of HR tech platform Ludo, women sometimes face barriers to becoming entrepreneurs as they feel as if they need all the criteria to move forward, whereas men often don’t.
She told HR magazine: “It is essential we support women in encouraging women to go beyond their own belief. We all feel we need more info to succeed, and yet we all learn every day.
“Stepping into the unknown and learning as we go is all part of the journey. Sadly, women are seen through a lens of what they can’t do, rather than what they can do. This translates into the system of women building their own businesses.”
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Georgina Kelly, founder of the Women in HR network, and the events and consultancy business GK HR Networks, cited additional barriers for female founders, including bias and a lack of a support community.
She told HR magazine: “Barriers like gender biases in investment, caregiving responsibilities, and lack of influential networks hold women back, leading to slower growth compared to men.”
However, Kelly emphasised that HR leaders can make a difference when championing female employees.
She said: “HR leaders can make a difference by creating mentorship programmes, advocating for flexible working policies, and actively championing women into leadership roles.
“While some employers may have reservations, supporting employees to pursue side hustles can lead to increased engagement and potentially higher employee retention, as employees feel valued and have the opportunity to grow and develop new skills.”
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NWEW's report also showed that 60% of investors said their portfolio was made up of either all-male or majority-male founders. A third (31%) of all investors reported seeing measures to create more equality in their portfolio as an "unnecessary restraint".
Alison Cork founder of NWEW, told HR magazine: “We know that the investment community and business culture more generally is very male-dominated. It’s not from lack of ability or ambition, but gender biases, societal constraints and access to support.
“This cultural dominance is self-perpetuating, and we need to create new avenues for women to break through the barriers presented to them. I think it's extremely important that efforts to support diversity and inclusion remain in force. It's especially important for women to be able to make their voices heard, and if that requires a dedicated focus by the HR department then so be it. There is a bit of levelling up to be done.”
Pam Parkes, HR practitioner and local government commissioner at Birmingham County Council, echoed this, stating that HR leaders should celebrate and increase representation of female leaders.
She told HR magazine: “Representation matters. Foremost it is a powerful manifestation of what is possible. Self-confidence is the first barrier to breakthrough, so building confidence is key.
“HR leaders can lead in creating the organisational environment that encourages and facilitates women to nurture the leadership skills that are important achieving career success and progression. These are frameworks for mentoring, coaching, networking and self-development.”
Small Business Britain's research also found that a third (39%) of female founders reported stress and exhaustion stemming from ‘entrepreneurial load’: the additional workload that comes with being a founder CEO. A further 60% reported struggling to switch off from work.
Speaking to HR magazine, Michelle Ovens, founder of Small Business Britain, said: “We cannot ignore the challenges that come hand in hand with running a business and the current economic climate that they still face. All entrepreneurs need encouragement and advocacy, but women particularly benefit from championing, mentoring and peer communities that understand the specific challenges they face and can give experienced insight and help them to broaden their networks.
“We need a more inspiring conversation around female-led businesses and the positive experience many have, as well as more celebration of the impact they have on not only their communities, but on the whole nation's growth.”
