The UK is the start-up capital of Europe yet only one in three UK entrepreneurs is female. A report commissioned by NatWest and HM Treasury has revealed what it is holding women back and how these issues can be overcome. NatWest Business Growth Enabler Natalie Hughes outlines the report and looks at how women in business can be better supported.
The Alison Rose Review looked into the barriers facing female entrepreneurs and outlined a number of recommendations to improve female start-up and scale-up rates. Implementing the recommendations could contribute an additional £250 billion to the UK economy.
The review, which was sponsored by NatWest’s CEO of Commercial and Private banking Alison Rose, found five key barriers that lead to lower rates of entrepreneurship amongst women:
The biggest barriers are:
- Low access and awareness of capital
- Greater risk awareness
- Perceived missing skills & experience
- Disproportionate primary care responsibilities
- Lack of relatable sponsorship/mentorship/role models
The report has found 3 main areas of opportunities to improve the situation and has set out 8 recommendations in response:
Opportunity 1: Increase funding for female entrepreneurs
- Initiative 1: Work with UK’s largest private equity funds to encourage investment in female entrepreneurs.
- Initiative 2: Increase transparency of funding allocation through a new Female Entrepreneur’s Investment Code that commits financial institutions to gender diversity.
Opportunity 2: Provide greater family care support for female entrepreneurs
- Initiative 3: Review existing and create new banking products aimed at entrepreneurs with family care responsibilities
Opportunity 3: Expand awareness and access to support, including mentorship and networking opportunities offered by existing and new networks
- Initiative 4: Expand existing mentorship and networking opportunities
- Initiative 5: Accelerate the development and roll-out of entrepreneurship course
NatWest is exploring a number of additional initiatives with UK based partners:
- Initiative 6: Set up an “established entrepreneur advisory board” to drive investment and support to female entrepreneurs.
- Initiative 7: Creation of a first-stop shop digital platform
- Initiative 8: Improve access to expertise by expanding the entrepreneur and banker in residence program
As a bank we are always looking at ways we can improve our support for customers. We launched our Women in Business programme in 2003 and currently have more than 500 accredited Women in Business specialists working across the UK.
We have recently signed the Investing In Women Code which has been backed by the Government. The code is a commitment to support female entrepreneurship in the UK by improving women’s access to the advice, resources and finance needed to build a business.
Additionally, we have launched a crowdfunding programme in partnership with Crowdfunder aimed specifically at supporting businesses led by women. The programme, dubbed Back Her Business, will allow women to prepare their ideas for new businesses and get them ready for crowdfunding.
Backing female entrepreneurs helps everyone. It helps women, of course, but it helps our economy, the startup and business ecosystem, and, in the end, the wider consumer. For too long, women have been put off from starting a business by a number of factors – we want to make this a thing of the past.
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