Female entrepreneurs are struggling to scale despite ambition

Female entrepreneurs are ambitious and resilient, and growing their businesses to prove it, according to new research from Small Business Britain, in partnership with Starling Bank. The findings reveal that many women-led businesses are expanding despite operating at a small scale with little access to structured support.

As part of a partnership aimed at boosting UK female entrepreneurship, the research gathered from more than 1,000 women found that more than eight in 10 (82%) aim to grow their business in the next 12 months, with over half (53%) reporting increased revenue since 2025. While this reflects strong confidence and momentum, there is a clear opportunity to better support women in scaling their businesses and strengthen income security, as just over half (51%) do not plan to hire in the next year, and 51% report their household incomes are lower than before starting their business.

The research shows that UK female entrepreneurs are ambitious, resilient, and growth-focused. However, their clear long-term goals are tempered by financial literacy, as 44% have not received financial education and over half (56%) rate themselves as beginner or intermediate in financial confidence.

The research showed, however, that many female entrepreneurs are resourceful in navigating limited access to financial literacy and rely on variation platforms for financial advice:

• 26% turn to accountants for financial support
• 15% rely on Google
• 12% use AI tools such as ChatGPT
• 6% rely solely on their own judgement

It is of importance to embed practical skills into mainstream business support, as two in five (40%) of female entrepreneurs are unaware or have not used government support systems to help grow their business.

The findings also shed light on the transformative role female entrepreneurs play in the UK economy, leading many of the nation’s 5.6 million small businesses. However, with just over half (52%) of female solo entrepreneurs not planning to hire, it’s vital to provide tailored pathways to support female entrepreneurship and convert ambition into scalable growth.

Based on the report, Small Business Britain makes some recommendations to the government to support female entrepreneurs on their growth journey:

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• Prioritise financial education to improve financial literacy – with 44% of those surveyed having never received financial education and 56% considering themselves below proficient, the government should leverage the Business Growth Service to prioritise boosting financial literacy among SMEs
• Implement segmented and targeted support to move women from sole trader to employer – over half of those surveyed said that they are not planning to hire in the near future. To be effective in supporting solo and micro firms to move to employers, support must be tailored to align with the specific needs and barriers faced. For example, support offered should consider toolkits to support hiring readiness, financial modelling support for recruitment, and peer networks focused on first hires. It is essential to equip entrepreneurs with digital tools to save time, which can then be dedicated to supporting hiring and enabling more time to focus on growth activity. As highlighted by Starling’s research, SMEs already using digital tools for financial tasks report an average time saving of 41%.
• Prioritise the adoption of digital financial tools to support productivity – Starling’s report also showed that as SMEs spend an average of 34% of their time on financial tasks, at an estimated cost of £63,000 a year, it’s essential the government prioritises the uptake and effective use of core digital financial tools. The biggest barrier to digital adoption is a drastic overestimation of the cost; for digital tax software, this stands at fifteen times the actual price of solutions. We propose the creation of a Financial Tool Calculator to tackle the misbelief that such tools are “too expensive”.

Michelle Ovens, CBE, Founder and CEO, Small Business Britain, said: “Female entrepreneurs play a vital role in the UK’s economic ecosystem and across the country, their ambition and contributions, often alongside significant caring responsibilities, do not go unnoticed.

“However, our research demonstrates a growth gap holding women back. There is a huge opportunity to support female entrepreneurs to scale their businesses with confidence and unlock financial success through clearer pathways to support. By providing women with the right tools and resources, we can level the playing field, boost entrepreneurship and enable more women to grow their businesses while continuing to benefit from flexibility and freedom taking the leap into entrepreneurship offers.”