Women Are Increasingly Starting Their Own Businesses!
Research shows that every pound invested in developing female entrepreneurship provides a greater return on investment than a pound invested in a growing male-owned enterprise. Unfortunately, despite this, only 1/3 of all entrepreneurs in the UK are women.
Statistically, 1,100 new businesses are created in the UK every day. Unfortunately, only 1/3 of established companies are run by women.
However, statistics are changing, and women are increasingly choosing to start their own businesses. According to the UENI report from 2020, 32.37% of British companies were owned by women. For comparison – in 2016 only 17% of companies were run by women.
Furthermore – according to the UENI report, women are much more likely to run sole proprietorships than those with four or more employees. The largest number of female small businesses is in Derby – as much as 40.57% of local small businesses are run by women.
Women’s Businesses – Mostly In The Beauty Industry
Women’s businesses are mostly companies operating in the cosmetics industry – they constitute as much as 76.08% of all enterprises in the entire sector. Companies from the Gifts & Occasions (67.62%) and Wellness (62.83%) sectors are in second place among women’s businesses. In the clothing industry, there is the greatest gender balance in management positions.
Unfortunately, as we read in the UENI report – women are underrepresented when it comes to running RTV companies (only 2.82%), construction services (4.9%), and the Outdoor & Garden sector (5.42%). When it comes to manual workers in the construction industry – women constitute only 13%.
They Want To Be Independent And Work Flexibly
As for the reasons why women decide to enter the path of entrepreneur – it is much more often a “necessity” than “own motivation”.
Interestingly, women cite “flexibility in family care” as one of the main reasons for starting a business. One-fifth of women choose self-employment to be able to flexibly combine family and career commitments and be able to work from home. Overall, around 30% of self-employed women and 8% of men choose to work from home.
Unfortunately, according to the UENI report, women also still face problems with financing companies and considerable prejudices. Statistically – far fewer female companies have a chance of survival.
According to statistics – British companies run by women have the highest churn rate – the rate of resignation from the venture. Most often, women aged 25-34 quit running a business – often citing “personal reasons” as the main reason. However, giving up their own business is much less often referred to by them as a “business failure”.
They Still Lack Self-Confidence
Unfortunately, ladies believe much less in their entrepreneurial skills. Only 39% of women are convinced that their skills will allow them to start a business. For comparison – this is around 55% in men.
Women are 55% more likely than men to mention “fear of loneliness” as the main reason for postponing the decision to start their own business.
According to statistics, women usually start companies with less financial capital and a lower level of human capital (for example – less experienced or trained employees). Such a start is a serious problem for women’s businesses and often affects all business activities.
Overall, around 1/3 of women say that access to finance is their biggest obstacle to starting a business. Similarly – the issue of financing is for them a barrier to the development of existing business. Fear of debt is the greatest obstacle to entrepreneurship for both men and women, although women are much more afraid of credit than men.
Unfortunately, female-owned companies win 5% fewer business and public sector contracts.
However, statistics show that training helps women. Ladies who have undergone some form of entrepreneurship training are twice as likely to engage in business activities. Women are much more likely to unite and help each other.
Women Help women!
According to the National Council of Graduate Enterprise (NCGE), as many as 98% of female entrepreneurs decided to participate in the Women’s Flying Start program because it was only for women. Programs dedicated “only to women” enjoy much greater trust and popularity among novice businesswomen.
Women often feel lost at the beginning of their business path and find it difficult to start real “networking”, but research shows that as soon as women find a group they can trust, they quickly spread their wings.
One of the groups that support and unites women’s companies is Women’s Business Link. WBL operates as part of Polish Business Link and is a networking group founded for women and by women.
WBL inspires and encourages action, and the goal of the organisation is to provide each member a cordial, mutually supportive network of friends. Networking is the perfect opportunity to get out of your comfort zone and to make new meaningful contacts.
Interestingly, the WBL community is made up of women working in a variety of sectors. It is extremely important because, based on the exchange of such different experiences, women give each other strength and motivation to further actions.
Women’s Business Link
The goal of Women’s Business Link is to nurture a mutually supportive environment for female entrepreneurs. Thanks to participation in the WBL, each woman gains access to many practical business and professional advice as well as many presentations and lectures.
Women’s Business Link inspires women to develop both professionally and personally, to overcome difficulties and their limitations, and to make career changes despite the language barrier or age.
Thanks to regular events and webinars, WBL members can gain invaluable knowledge in the field of running their own business, and during joint social events – meet and establish contact with other businesswomen.
More information about Women’s Business Link is available at: https://plus.pblink.co.uk/womensbusinesslink