Gender bias is costing Britain £250 billion
Early-stage venture consultants, Think Partners, have issued an open letter to Chancellor Rachel Reeves, calling on the UK Government to take urgent action to close the gender gap in business investment – a move that could unlock £250 billion in additional economic growth.
Drawing on findings from The Rose Review, the letter highlights that women continue to face systemic barriers when starting and scaling businesses – barriers that are costing the UK economy billions in lost potential. Despite government pledges to support women entrepreneurs, progress remains slow and largely symbolic.
“For every £1 of equity investment in the UK, 85p goes to all-male teams, 12p to mixed-gender teams, and less than 3p to all-female founders,” said Think Partners consultant partner Gemma Pearson. “This isn’t about a lack of ambition – it’s about a system that continues to overlook and undervalue women’s ideas, innovation and leadership. The result is a self-inflicted growth gap Britain can no longer afford.”
The open letter urges the Government to move beyond rhetoric and implement a series of concrete interventions to drive inclusive growth, including:
- Tax incentives for investors who back women-led firms
- Mandatory gender reporting and accountability for investment organisations
- Government co-investment funds to match private capital for female founders
- Diversity requirements on investment committees
- Investment-readiness programmes to support women entrepreneurs post-funding
Think Partners emphasises that these measures are not just about equality – they are about economic pragmatism. Closing the gender entrepreneurship gap is an opportunity to fuel growth, create jobs and strengthen the UK’s global competitiveness.
“Rachel Reeves has called growth her mission. If that’s true, this is where she should start,” said Think Partners founder Alexander Ridings. “The tools exist, the evidence is clear and the cost of inaction is enormous. It’s time to move from ambition to action.”
With more women than ever starting businesses and increasing awareness of the funding gap, Think Partners believes the moment for government-backed change is now.
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