Female founder ambitions held back by lack of finance

**Female Founders Facing Funding Challenges**

A recent report by Small Business Britain, in collaboration with Square and Clearpay, sheds light on the hurdles hindering female entrepreneurs’ ambitions, particularly in accessing finance. Despite a significant drive among female founders, almost three in five cite a lack of business knowledge and confidence as barriers to growth, with 39% pointing to securing funding as a major challenge.

The ‘Female Entrepreneurship: Moving Forward’ report reveals striking statistics – over half of female founders have never sought external finance, with the majority self-funding their ventures. For example, Janan Leo, the creator of Cocorose London, relied on personal income to bootstrap her sustainable footwear brand.

The research, based on input from over 1,000 female entrepreneurs, highlights a desire for independence as a primary motivator for women establishing businesses. However, concerns about taking on debt or external investments persist, with many women expressing reservations about losing ownership control to investors.

Michelle Ovens CBE, Founder of Small Business Britain, stresses the importance of supporting female entrepreneurship for the UK’s economic growth. She aims to increase female representation in entrepreneurship from the current 20% to at least 30% in the future, by addressing the unique challenges faced by female founders and providing tailored support and training.

The report suggests early interventions to promote gender inclusivity and entrepreneurial success, including enhancing funding accessibility, delivering targeted financial skills training, and offering mentorship for female founders. Small Business Britain’s f:Entrepreneur campaign celebrates and supports female entrepreneurs nationwide.

Despite financial obstacles, female entrepreneurs remain optimistic about future growth and show a willingness to embrace new technologies. With 65% expecting business growth in the coming year and a significant proportion adopting artificial intelligence, there is vast potential for economic advancement through female-led enterprises.

Notably, the report highlights the prevalence of self-funding among ethnic minority female entrepreneurs, underscoring the need for tailored support to overcome financial challenges. Industry leaders emphasise the importance of nurturing small women-led businesses to drive innovation, growth, and community development.

The call to action is clear – by providing the necessary resources and solutions, the UK can empower female entrepreneurs to achieve their full potential and contribute significantly to the economy. Small steps, such as improving funding accessibility and offering targeted support, can pave the way for a more inclusive and prosperous entrepreneurial landscape.