This comes as the government has pledged an additional £50 million for female-led venture capital funds to foster opportunities and boost growth for female entrepreneurs.

The research, from the business finance experts at money.co.uk business loans, analyses ONS data to reveal the current state of female entrepreneurship in the UK.

Key challenges facing female entrepreneurs

1. Impact of childcare on work-life

ONS data shows that of the 14.1 million women currently employed in the UK, 5.5 million work part-time – accounting for almost two-fifths (39%) of the female workforce. Whereas, just 2.1 million men work part-time out of 13.8 million workers (15.1%) – less than half that of female workers.

The stark difference in these figures could be influenced by many women working fewer hours due to bearing more childcare responsibilities. A recent study found that in one in four (26%) parental households, a mother reduces her working hours due to childcare, compared to just one in 12 (8%) fathers.

2. Funding opportunities

Female-led companies in the UK are most commonly supported through angel investors. These investors provide financial support to a startup business in exchange for equity or debt. Over 50,580 UK companies were funded by angel investors in 2024, with 43,500 (86.0%) being male-led compared to 2,757 (5.5%) female-led.

Last year, 435 UK businesses were financed through private equity. This type of investment is commonly used as a catalyst for substantial business growth in established companies. Approximately 391 of the 435 private equity-funded companies were led by men, which is almost 90% of the total (435). However, only three in every 100 (3.2%) female-led companies received private equity investment.

These statistics suggest that women are much more likely to be forced to give away equity to be able to launch their business than men. While angel investors can be a valuable source of funding, they can potentially have disadvantages, such as loss of control, higher expectations, and conflicting ideas.

3. Impact of funding disparity on business growth

There are significantly fewer female-led companies that are considered to be fast-growing in the UK. Of all female-led businesses, only 2,407 fall into the fast-growth category – representing just 0.05%. Whereas, it’s estimated that there are over 15,130 fast-growing companies led by men in the UK (0.29%).

This lack of growth may be due to male-led companies typically receiving more investment and opportunities than women-led companies. For example, a recent study showed that, on average, female-founded businesses received £1.05 million in funding in 2024, compared to £6.2 million for a solely male-owned organisation.

Neelam Ahuja, money.co.uk business loans expert, comments: “It’s no secret that being a woman in business can come with barriers, whether it’s struggling to access capital, a lack of mentorship and networking opportunities, gender stereotypes, or work-life balance challenges.

“Despite this, the rising number of self-employed women over the years shows the perseverance of female trailblazers to overcome these barriers and make their mark in the entrepreneurial landscape. But to enable female entrepreneurs to flourish further, progress still needs to be made regarding equal opportunities.

“Business leaders can contribute to this by creating more mentorship and networking opportunities for female entrepreneurs, where women in business can share their knowledge and experiences to further their development. Financial service providers must also ensure they create equal access to funding opportunities through grants, loans, or investment capital.

“By creating equal opportunities like these, as well as highlighting female role models in the workplace, businesses can foster a more inclusive environment and pave the way for more female entrepreneurs to reach their full potential.”

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