Having launched a multi-million-pound business from her home, Niki Mahon is a highly successful woman entrepreneur who has been recognised with a variety of accolades, including being named a KEiBA Awards finalist for Startup of the Year and Young Entrepreneur of the Year in 2023. This article will look at the increase in women entrepreneurship seen in recent years as well as exploring the challenges faced by women founders.
According to data from NatWest Group, women entrepreneurs established 150,000 new companies in 2022, more than twice as many as in 2018. In 2022, 17,500 businesses were founded by 16 to 26-year-old women, 22 times more than in 2018. In 2022, 20.46% of all business incorporations were led by females compared with 16.65% in 2018. Despite the challenging economic climate, approximately half of all women entrepreneurs and business leaders said they felt confident in their business prospects for the year ahead, a poll by UK Finance reveals.
The rise of women business leadership is not confined to new businesses. In 2022, the majority of investment into women-led businesses were seed investments, with 158 female-led start-ups attracting early-stage funding, suggesting a strengthening pipeline of female-led next-generation businesses. In addition, in 2022, women occupied 31% of business leadership roles compared to 29% in 2020.
Experts attribute the rise of women entrepreneurship in the UK to a combination of factors. Although the situation remains far from perfect, there has been a societal shift towards gender empowerment and equality, providing women with greater opportunities to pursue their entrepreneurial aspirations. This has culminated in a growing number of women launching businesses, benefiting from increased access to a range of vital resources, including funding, networks and mentorship. Women are breaking down traditional barriers in the UK and taking advantage of many new opportunities now available to them in the business world.
Today, more women than ever before are pursuing business leadership roles, enabling them to contribute to the creation of a more diverse and dynamic corporate landscape. This societal shift not only benefits women entrepreneurs and business leaders but the economy as a whole, unlocking the full potential of half of the population to drive growth and innovation.
The UK government has made significant progress in terms of supporting women founders. In 2019, the Alison Rose Review was launched with the goal of identifying and addressing barriers faced by women entrepreneurs. Recent analysis suggests that some of the biggest stumbling blocks for women founders is access to funding, particularly at the scale-up stage. To counter this, the UK government launched a £400 million fund called the Women’s Entrepreneurs Finance Initiative with the aim of increasing the number of women-led enterprises that receive venture capital.
The rise of social media and ecommerce have made it easier than ever before for businesses to reach a wider audience to promote their brand and products. Increased availability of online resources and tools have removed the barriers that once made entrepreneurship seem intimidating or inaccessible. In a matter of clicks, women can connect with peers and mentors, gain valuable insights into branding, marketing and sales, and access vital funding opportunities.
In the United Kingdom, women are increasingly feeling sufficiently equipped, confident and empowered to launch their own businesses, signalling a shift away from traditional employment roles. While women have had to overcome significant barriers to entrepreneurship, today these female founders are not only brazing a trail but also redefining the landscape of entire industries, making them more inclusive, innovative and reflective of a diverse array of experiences and voices. Over the course of the last decade, female entrepreneurship has reshaped the UK’s business ecosystem, with a 45% increase in women-led enterprises in that timeframe, driving diversity and job creation across all industries.
