The Women and Equalities Committee (WEC) has launched an inquiry into female entrepreneurship, focusing on the barriers women face when starting and growing businesses.
The cross-party committee, chaired by Labour MP Sarah Owen, will examine obstacles within different sectors, assess best practices, and consider government measures to support women-led enterprises.
The inquiry will explore funding challenges, including intersectional issues and regional disparities. MPs will also review international examples of effective policies that have successfully encouraged female entrepreneurship.
Sarah Owen said, “There is huge economic and creative potential among women wishing to start and run their own businesses. Yet women face barriers pursuing entrepreneurialism that men do not. They range from gender bias in the provision of financial and other support to challenges around caring responsibilities.
“Women are less likely than men to attempt to start a business. Moreover, when women do ask for funding, they ask for and receive smaller amounts, in part due to the investment landscape being male dominated. Black and minority ethnic female entrepreneurs often experience the worst outcomes in terms of funding and support.”
Addressing Barriers
The inquiry follows the 2019 Rose Review, commissioned by the Treasury and led by Alison Rose DBE, CEO of NatWest Group, which noted gender disparities in business ownership and investment. In response, the Investing in Women Code (IWC) was established to diversify business leadership. Additional initiatives, such as the Women-Led High Growth Enterprise Taskforce in 2022 and the Invest in Women Taskforce in 2023, have aimed to expand opportunities for female entrepreneurs.
The UK government has taken steps to support female entrepreneurs, but disparities remain. The Women-Led High Growth Enterprise Taskforce was created in 2022 to increase female-led businesses, particularly outside London. In 2023, the Invest in Women Taskforce was introduced to develop one of the world’s largest investment funding pools dedicated to female founders.
“As the Government aims to strengthen economic growth, a timely assessment is needed into what more could be done to help the development of female-led enterprises,” Owen added. “WEC’s inquiry will examine existing policies and assistance for female entrepreneurs, looking across sectors from finance to femtech to identify best practice and address issues in relation to funding and investment.”
The inquiry will consider the effectiveness of existing initiatives, and whether additional measures are needed to address gender gaps in funding, business support, and market access. It will also assess how data can be used to track progress in female entrepreneurship.
WEC is inviting written submissions addressing key issues, including the barriers women face in business, sector-specific challenges, funding difficulties, best practices, and potential government actions. The deadline for submissions is Friday, 14 March 2025.
