A recent written evidence submission to the Women and Equalities Committee inquiry highlights critical challenges faced by female entrepreneurs in the UK. Dr Nan Jiang, Dr Asieh Tabaghdehi and Prof Catherine Wang from Brunel Business School, have provided comprehensive evidence on the obstacles women encounter when starting and scaling businesses.
The evidence highlights a critical funding disparity: only 2% of UK equity investment reaches fully female-founded businesses. This financial exclusion exists alongside a concerning lack of diversity in investment leadership, with just 11% of senior investment roles filled by women and 85% of European venture capital assets managed by men.
Women entrepreneurs from ethnic minority backgrounds face even greater hurdles. The research shows that 37% of Black female business owners and 36% of female business owners from Asian and other ethnic minority backgrounds reported making no profit in the previous year—compared to just 15% for white female business owners.
The researchers identified three sectors where women face particularly significant obstacles: Technology & digital; Finance & fintech; Manufacturing & industrial.
Key recommendations
- Improve financial inclusion through government-led venture capital access and gender-focused investment policies
- Develop structured mentorship programmes through sector-specific accelerators and industry alliances
- Implement adaptive work-life integration policies including flexible financing options and parental support schemes
- Utilise AI-driven lending mechanisms to reduce gender biases in financing
- Promote greater transparency and accountability in investment practices
Read the full complete written evidence