Despite the strides that have been made towards workplace equality in recent years, women in business are still largely under-represented.
When it comes to female entrepreneurship statistics, studies show men are significantly more likely to become entrepreneurs than women are. It’s clear that we can do much more to support women-owned businesses and women in senior positions.
A UK-wide study in 2020 showed that 32.37% of businesses founders are female. This shows encouraging growth from four years ago when the number was a mere 17%, but men are still twice as likely to start their own businesses, with women comprising just less than one-third of UK business founders.
Women Entrepreneurs are More Likely to Face the Risks Alone
Statistics show that female business owners are most likely to run their business as a one-woman company. While 37.70% of women entrepreneurs work alone, 27.14% have 2-3 employees and just 23.44% employ teams of 4 or more.
Women-owned businesses have a higher churn rate, with most women admitting they don’t close their businesses due to failure, but rather personal reasons. This is most prevalent among women aged 25 to 34 and is likely due to starting a family or childcare.
Where are Women in the Entrepreneurial Space?
Women are also more likely to strike out on their own in specific sectors. The UK business categories with the highest percentage of female vs male entrepreneurs include hair and beauty, wellness, and consumables.
- Hair & Beauty: 76% female vs 24% male
- Gifts & Occasions: 67% female vs 32% male
- Consumables: 64% female vs 36% male
- Wellness: 63% female vs 37% male
- Pet Care: 61% female vs 38% male
In contrast, women are most underrepresented as business owners in the following industries:
- Electronics & appliances: 3% female vs 97% male
- Construction services: 5% female vs 95% male
- Outdoor & garden services: 5% female vs 95% male
Biggest Barriers Facing Women in Business
Despite the global growth of women-led businesses, funding continues to be a significant challenge. Studies show that 35% of female business founders still face gender bias when raising their business capital. Female entrepreneurs also receive an average of 5% less funding than their male counterparts.
Supporting Female Entrepreneurship in 2021
The modern workplace has seen a major shift towards greater flexibility, with remote and agile working becoming the way of the future, especially post-pandemic. An increasing number of companies are also looking to initiatives that include men to help move the dial, such as shared parental leave. This allows more women to balance their work and family responsibilities more effectively.
As workplaces start reopening in the wake of a disruptive lockdown period, the business world is faced with many exciting opportunities to change and grow for the better. There are many more ways to pave the path to greater gender parity among entrepreneurs, inspiring women in business to thrive.
Some of these include:
- Increase funding directed at female entrepreneurs
- Provide more family-friendly workspaces and better parental leave for both parents
- Improve access to professional networks and mentors for women
- Forge pathways for women to enter and thrive in traditionally male-dominated industries
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