Introducing a Feminine Enterprise Funding Scheme as a part of the 2025 Autumn Funds needs to be one among a number of actions taken by the federal government to assist feminine entrepreneurs within the UK, a brand new report by the Ladies and Equalities Committee (WEC) has concluded.
Discussing WEC’s inquiry into feminine entrepreneurship, chair Sarah Owen MP mentioned it obtained “regarding proof that feminine entrepreneurs face vital disadvantages in accessing finance, networks and assist as a result of systemic bias, a scarcity of variety amongst funding decision-makers and entrenched cultural norms”.
The report mentioned entry to finance for female-founders is a “essential situation” given the “tiny fraction” of enterprise capital funding that does going to supporting women-led companies. Regardless of quite a few critiques and initiatives “this case is getting worse not higher”, it warned.
Solely 2p in each £1 invested in enterprise capital funding within the UK goes to female-founded companies, and it’s estimated that supporting girls to have the identical entry to funding that their male friends take pleasure in will ship an financial enhance of over £250 billion.
Included in an in depth record of 26 suggestions (revealed under), the committee mentioned the federal government ought to launch a Feminine Enterprise Funding Scheme which incentivises traders to again girls founders with tax aid, in addition to mandating the Monetary Conduct Authority to require enterprise capital companies to report on the quantity and proportion of offers that go to female-led companies. Corporations needs to be fined in the event that they don’t comply, it mentioned.
WEC mentioned it was “deeply disappointing” that the federal government’s Industrial Technique and Small Enterprise Technique didn’t embrace particular measures to assist female-led companies. It known as for an “bold technique” for feminine founders to be revealed inside 12 months.
Different suggestions embrace the federal government setting itself a goal for the proportion of public contracts awarded to female-led companies, Innovate UK ringfencing a minimal of 30% of its funding for feminine entrepreneurs, and a large-scale nationwide programme for supporting feminine founders throughout all sectors.
Sarah Owen MP mentioned: “WEC’s feminine entrepreneurship inquiry heard from a spread of profitable businesswomen.
“But the Committee obtained regarding proof that feminine entrepreneurs face vital disadvantages in accessing finance, networks and assist as a result of systemic bias, a scarcity of variety amongst funding decision-makers and entrenched cultural norms.
“Programmes to deal with these impacts have been inadequate in scale and ambition and regardless of greatest efforts have had restricted impact, with feminine entrepreneurs remaining disproportionately underrepresented and underfunded.
“A nationwide technique is required to drive the systemic change that’s required. The bold programme we’re calling for wants to incorporate a mixture of incentives, targets and obligatory reporting whether it is to be efficient.
“The Autumn Funds is a main alternative to unlock the total potential of feminine entrepreneurs.
“As a primary step, we might encourage the chancellor to completely recognise the potential of feminine entrepreneurs by bringing ahead a Feminine Enterprise Funding Scheme within the forthcoming Funds, with greater incentives to current preparations.
“Current biases within the funding panorama and a ignorance of current reliefs present {that a} new, simply marketable incentive is required. Such an funding in feminine entrepreneurship by the federal government would have speedy impression, ship financial returns to the Treasury and would exhibit the federal government’s dedication to supporting female-generated financial progress.”
The federal government has two months to reply to the report and its suggestions.
The total record of suggestions to assist feminine entrepreneurs
All of the suggestions taken direct from the Ladies and Equalities Committe report:
Entry to finance for feminine entrepreneurs
- We advocate that the British Enterprise Financial institution ought to:
- have a fifth strategic goal, to make sure that fairness finance to feminine entrepreneurs within the UK will increase from 2% to 10% by 2030;
- set itself the goal of guaranteeing that a minimum of 30% of the finance it makes accessible to UK companies is allotted to supporting female-led companies;
- guarantee gender steadiness on its funding/evaluation committees; and
- require all traders searching for its assist to enroll to the Investing in Ladies Code.
2. We don’t settle for arguments that transparency and accountability in enterprise capital are too tough, and neither ought to the federal government. The Monetary Conduct Authority needs to be mandated to require all registered enterprise capital companies to report on the quantity and proportion of offers that go to assist female-led companies and the general proportion of funding that represents.
These particulars needs to be revealed on an annual foundation. Monetary penalties needs to be levied on companies who don’t adjust to this reporting requirement. This regime needs to be launched on this Parliament.
3. Within the speedy time period, the British Enterprise Financial institution should take extra of an curiosity in whom its funding helps. Enterprise capital companies and angel traders that profit from public funding needs to be required to exhibit gender-equitable funding selections. The British Enterprise Financial institution ought to require all traders it helps to offer knowledge on the proportion of that finance they make accessible to female-led companies.
4. We don’t assist mandating gender quotas on funding committees at this stage, as measures to enhance transparency and elevated incentives to alter behaviour needs to be given time to have an impact; however the authorities mustn’t rule out intervention sooner or later if the extent of enterprise capital funding in feminine entrepreneurs exhibits no signal of enchancment.
5. Public funding buildings ought to problem gender bias and never reinforce it. Innovate UK ought to:
- ringfence a minimal of 30% of its funding for feminine entrepreneurs with yr on yr will increase to 40% by 2030;
- within the quick time period decrease leverage ratios and cut back match funding necessities for women-owned companies to assist degree the enjoying discipline and permit equitable entry to alternative;
- guarantee gender-equitable evaluation panels;
- publish gender-disaggregated knowledge on funding purposes, approvals and allocations, that knowledge ought to embrace info on ethnicity and incapacity of candidates;
- recognise femtech as a excessive worth sector; and
- evaluate programme design and software processes, critically evaluating them for potential types of oblique discrimination which will act as boundaries to feminine founders.
6. The federal government ought to develop and publish an bold technique for advancing feminine entrepreneurship to sit down alongside and complement the prevailing Industrial Technique and SME Technique. This technique needs to be revealed inside 12 months.
It needs to be developed in session with stakeholders throughout the funding panorama however notably feminine entrepreneurs. It ought to embrace a deal with sectors of the financial system not deemed to be excessive progress reminiscent of magnificence and social enterprise, the place feminine entrepreneurs at present really feel neglected regardless of delivering long-term sustainable progress and employment. The suggestions of our report ought to present a superb place to begin for such a method.
7. The technique needs to be overseen by a devoted minister and workplace throughout the Division for Enterprise and Commerce akin to the US Workplace of Ladies’s Enterprise Possession, with an assigned price range and duty for driving implementation of the technique, and guaranteeing accountability and transparency via knowledge assortment.
8. The federal government ought to set itself a goal for the proportion of public contracts awarded to female-led companies just like initiatives in Canada, the US and Nordic international locations. Given the low base we advise a goal of a minimum of 10% by the top of this Parliament.
The proposed new workplace ought to have duty for driving this reform and supply coaching and assist to assist feminine founders navigate public procurement processes.
9. We name on the British Enterprise Financial institution to ringfence a minimal of 30% of Regional Angel Programme funding for supporting feminine angel traders and funding in female-led companies throughout the areas and to publish knowledge on take-up by gender.
The Financial institution also needs to evaluate the entry necessities to the programme to make sure that smaller angel teams, notably these led by girls who’ve much less capital behind them than their male friends, are in a position to profit from the Programme’s co-investment funds.
10. Tax incentives reminiscent of SEIS and EIS have confirmed efficient in stimulating funding. But consciousness, accessibility and take-up stay decrease amongst girls traders and out of doors of the South East.
To realize significant change, authorities and business should work collectively to lift consciousness of the advantages of tax incentives, construct inclusive funding communities, and make sure that feminine entrepreneurs have equal entry to the monetary instruments wanted to develop and succeed.
11. The federal government ought to launch a Feminine Enterprise Funding Scheme to sit down alongside the EIS and SEIS, with greater incentives to particularly drive funding in women-led companies. Individuals who put money into women-led companies ought to obtain larger advantages. Current biases within the funding panorama and a ignorance of current reliefs present {that a} new, simply marketable, marquee incentive is required.
Such an funding in feminine entrepreneurship by the federal government would serve to exhibit its dedication to supporting female-generated financial progress. The scheme ought to enable SEIS-level tax breaks of as much as a £2 million threshold.
12. The federal government ought to take away completely the age restrict on eligibility for the Enterprise Funding Scheme (EIS). The prevailing seven-year threshold doesn’t adequately replicate the structural and social challenges confronted by many feminine founders, together with longer progress trajectories typical of the sectors during which they function and the impression of caregiving-related profession breaks.
Extending the eligibility interval would higher accommodate these realities, promote gender fairness in entry to progress capital, and assist the scaling of female-led enterprises throughout the UK.
13. The federal government ought to launch a marketing campaign to extend consciousness of the SEIS, EIS and proposed FEIS schemes amongst traders and feminine entrepreneurs. The marketing campaign needs to be appropriately tailor-made to make sure underrepresented teams of ladies are conscious of the schemes. The federal government ought to acquire knowledge on the schemes by gender and area to watch take-up.
14. Institutional traders, together with main banks and pension funds, are a key part of the funding panorama. We name on them to do far more to assist female-led companies, together with via supporting the Put money into Ladies Taskforce.
15. The federal government ought to replace us in its response to this Report on the steps it’s taking via its convening powers to get these traders, notably the signatories of the Mansion Home Accord, to assist the Taskforce.
Networks and assist for feminine entrepreneurs
16. As a part of a brand new technique for feminine entrepreneurship, the federal government ought to set up a large-scale nationwide programme devoted to supporting feminine founders throughout all sectors to maintain and scale up their companies.
The programme ought to provide mentorship, sponsorship, teaching and networking for feminine entrepreneurs with a specific deal with elevating capital. It ought to search to attach feminine founders with business leaders and skilled entrepreneurs from numerous backgrounds and sectors who can provide steering on enterprise scaling, funding negotiations and market enlargement.
The federal government ought to work with metro mayors to develop the hubs of their areas and to make sure they’re appropriately tailor-made to fulfill regional wants and domestically supported and promoted.
17. The federal government ought to develop a particular programme of selling focused, female-focused accelerators in excessive progress sectors the place girls are underrepresented. Such a measure was noticeably lacking from the Industrial Technique.
18. Universities are an important supply of revolutionary start-ups, however proof to this inquiry suggests girls are much less more likely to take up entrepreneurship programs and/or develop spinouts than their male friends. This can be a missed alternative for progress.
The federal government ought to work with UKRI to develop a particular programme of devoted entrepreneurial assist for ladies in postgraduate and postdoctoral research. The programme ought to embrace elevated alternatives for, and higher signposting to, entrepreneurial fellowships, funding and pre-accelerator programmes. It ought to embrace female-focused networks for sharing expertise, mentorship and steering and search to instil confidence in taking the step in the direction of entrepreneurship.
19. Alongside a method on feminine entrepreneurship, the federal government ought to launch a nationwide marketing campaign highlighting feminine position fashions in any respect phases of the entrepreneurial journey. It additionally wants to raised promote the Put money into Ladies Hub.
Caregiving and maternity
20. Self-employed girls (and people employed by way of their small enterprise) are poorly served by the UK’s parental go away preparations. As a part of its parental go away and pay evaluate, the federal government ought to evaluate laws pertaining to maternity via the lens of a self-employed girl and search to tailor insurance policies to assist girls’s entrepreneurial aspirations.
21. We acknowledge the federal government’s need to guard a mom’s time along with her child. As such, we advocate that maternity allowance is elevated for self-employed moms within the first six weeks to carry it nearer in step with statutory maternity pay. This can enable extra moms to spend time with their infants within the early weeks. A really restricted variety of Conserving in Contact days needs to be permitted on this interval. After six weeks we advocate self-employed moms be allowed to Preserve In Contact with their enterprise as usually as crucial.
22. The Division for Work and Pensions ought to evaluate funding for Common Credit score and reclassify Maternity Allowance in order that it’s not handled as “unearned revenue” for the needs of Common Credit score, in order that when self-employed girls entry it, their Common Credit score just isn’t lowered.
23. We reiterate the conclusions from our report on paternity and shared parental go away. Improved paternity go away and pay and reform to the shared parental scheme is lengthy overdue and would instantly profit feminine entrepreneurs.
24. The federal government ought to undertake a evaluate of the adequacy of current childcare assist for self-employed moms. That evaluate ought to think about: the potential deserves of creating childcare a tax-deductible expense, if just for an preliminary interval; increasing free hours of childcare to incorporate providers, reminiscent of nannying, that may cowl the interval from 0–3 months, when most nurseries don’t settle for infants; encourage extra versatile childcare providers; and making assist, reminiscent of tax aid or pension credit, accessible to encourage members of the family aside from mother and father to undertake childcare and relieve among the burden borne by the mom.
Monetary schooling and enterprise abilities
25. The federal government ought to work to extend the supply and relevance of monetary and enterprise schooling in colleges and to make sure that it’s delivered as a core a part of the curriculum. In search of to extend the monetary confidence of women needs to be a key component of the supply.
26. Ladies and ladies stay underrepresented in STEM topics and fewer more likely to pursue entrepreneurship on this discipline. The federal government and better schooling institutes ought to work to deal with gender bias in curriculum design in STEM topics and try to extend the visibility of feminine position fashions to assist this work.
