Female entrepreneurs set to catch up with males

21 06 2005 United Kingdom

Compared to men, women in the UK are much more likely to move out of employment and start their own businesses, according to a new report.

The latest study co-sponsored by the London Business School shows that almost half of women in the UK now believe they have the skills to start a business and that entrepreneurship is a good career choice.

In the UK, an estimated 15 per cent of businesses are owned/managed by women.

And the gap between male and female entrepreneurs is already closing. The report indicates that 7 per cent of women in the UK expected to start a business in the next three years compared to 11.8 per cent of men.

The report also found that 1 in 3 women believed there were good opportunities to start a business. They were more likely to pursue an innovative idea in a niche market where are there are relatively few competitors.

More than half of female business owners in the USA, UK and most other European countries start out as sole proprietors, while those in Canada and Australia are very likely to set out in a joint venture with up to three others.

A similar picture emerges from the amount of financial backing for start-ups. Most women start new businesses in the UK with their own capital and enjoy less funding than those in countries like France, Germany and Italy.

In the USA, 105 Women’s Business Centers have been created to support economically and socially disadvantaged women who are interested in starting their own businesses. A similar idea may be taken up in the UK, starting with a national Women's Business Council to encourage greater numbers of women-led businesses.

The UK government is aiming to encourage female entrepreneurship and increase the number of new businesses that women start up each year.

Footnote:

Barclays reported that the number of start-ups fell by 10 per cent in the first quarter of 2005 compared to the same period last year.

Another report this month suggests that Red Tape and employment legislation are a real barrier to new growth businesses.

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