This International Women’s Day we’re celebrating female entrepreneurship. Responsible finance providers lend to entrepreneurs who are unable to access mainstream finance; creating opportunities and supporting job creation. In 2019, 40% of responsible finance loans went to women-led businesses, and the sector is striving to do more.
The ratio of female entrepreneurs to male entrepreneurs is 0.46[1]. Last year, the Alison Rose Review of Female Entrepreneurship found that if UK women matched UK men in starting and scaling businesses, it could add £250 billion of value to the UK economy[2]. The responsible finance sector is committed to equality and proactively supports female entrepreneurs to unlock this potential.
In line with this year’s International Women’s day theme we want to:
- Raise awareness of the bias female entrepreneurs face
- Showcase what responsible finance providers are doing to drive equality to inspire action in others
- Celebrate the achievements of female entrepreneurs
1. Raising awareness of the bias female entrepreneurs face
Globally, 70% of women-owned small and medium enterprises have inadequate or no access to financial services[3], and in the UK women who launch their own business do so with an average of 53% less capital than men.
Analysis of early-stage digital startups has found that male entrepreneurs are 86% more likely to be Venture Capital funded than their female counterparts, and men are 50% more likely to secure angel investment. All this contributes to the fact that in the UK, start-up funding is the number one barrier to launch a business mentioned by women non-entrepreneurs[4].
2. Showcasing what responsible finance providers are doing to drive equality to inspire action in others
Responsible finance providers play an active role in addressing this funding gap by lending to women-led businesses and promoting funding support. Several responsible finance providers are signatories to the Investing in Women Code, which is a commitment by financial services firms to improving female entrepreneurs’ access to tools, resources and finance. Other responsible finance providers have loan funds specifically dedicated to female entrepreneurs, through which they ensure support and capital is available for those wanting to create their own business.
In addition to lending, responsible finance providers offer support and wrap-around services. They work to address imbalances in the investment landscape through advocating for women in business and offering informal meetings to give feedback and mentor female entrepreneurs, helping to build confidence. This is essential given that the Alison Rose Review highlighted the need to help women entrepreneurs develop greater confidence in their skills.
3. Celebrating the achievements of female entrepreneurs
Responsible finance providers have a proven track record in providing access to finance and support for female entrepreneurs. Each year we celebrate the success of entrepreneurs in partnership with the Citi Foundation at our Citi Microentrepreneurship Awards. Read the inspirational stories of some of this year’s female finalists below.
Silence-breaking Raj saves and changes lives
Raj Holness was a victim of domestic and sexual violence for twenty years. She launched her charity and social enterprise Breaking the Silence UK in 2013 after barely escaping with her life from two failed forced marriage attempts and an attempted murder.
Describing herself as “survivor, proud to have taken back the voice that was so viciously stolen from me,” Raj set up Breaking the Silence to support and empower victims and their dependents from all walks of life to take back control of their lives and break the silence of their trauma. Breaking the Silence has already supported over 1,000 women who are or have been victims of domestic abuse, human trafficking and/or forced marriage.
able and recovering women and children, and its educational training and workshops give businesses and public sector organisations tools to recognise different forms of abuse. With a case of domestic abuse reported to police in the West Midlands every 10 minutes on average last year, domestic abuse is an ugly truth that many people live with and grow up with. Having a safe place to go and appropriate support is essential, and BTS will soon move into its own refuge with the support of a mortgage from responsible finance provider and charity, NatWest Social and Community Capital.
Global growth makes Bedford business one of Britain’s best
Skills4Stem is tackling the STEM (science, technology, engineering and mathematics) skills shortage by focusing on providing relevant and up-to-date skills within the STEM sectors as well as specialist expertise in the construction industry and the built environment.
Launched in 2014 by Sarah Davis, the business now has offices in the UK and Republic of Ireland and employs 20 people. It has created several jobs in the local community that people would otherwise have had to travel for. It was established to fill a gap in the market for delivering a blend of technical, leadership and management training to mature learners, and provides a portfolio of industry ready, accredited qualifications & apprenticeships.
After a successful start, Skills4Stem turbocharged its growth when it secured investment from the Midlands Engine Investment Fund (MEIF), through responsible finance provider First Enterprise, to help Sarah expand the company, improve its digital marketing strategy and create a live web chat to help their customers in real time.
Over the last six years, Skills4Stem has rapidly grown from a simple idea to a global company, offering services up and down the UK as well as in the Republic of Ireland and United Arab Emirates.
From £100 startup to six-figures for Ulster meal-prep firm
An Ulster meal-preparation firm has reached a six figure turnover just a few years after starting in a kitchen. Launched with just £100 by Caoimhe O’Kane in 2015, Eat NAKED NI now has a healthy six-figure turnover and delivers tasty and nutritious meals to ordinary people and elite professional athletes from all over the world when they visit Ireland to compete.
Certified nutrition coach Caoimhe O’Kane became passionate about health and wellbeing after recognising the benefits of how eating better was impacting her own health. In her first year of trading she built a base of weekly customers, providing them with healthy meals that supported their busy lifestyles.
Demand for Caoimhe’s service increased – but, like many micro-enterprepreneurs, she needed to address the challenge of how to scale up the business in a sustainable way.
With the help of the NI Small Business Loan Fund (delivered by responsible finance provider Enterprise Northern Ireland in partnership with UCIT), Eat NAKED built a bespoke e-commerce website, helping the firm grow to become the leading meal prep company in Northern Ireland.
It now employs 5 people, delivers its meals free to gyms, cross-fit boxes and other local drop-off points, and will shortly move into its own brand-new production factory in Magherafelt.
[1] The Alison Rose Review of Female Entrepreneurship (2019) https://www.gov.uk/government/publications/the-alison-rose-review-of-female-entrepreneurship
[2] The Alison Rose Review of Female Entrepreneurship (2019) https://www.gov.uk/government/publications/the-alison-rose-review-of-female-entrepreneurship
[3] PwC: Women Unbound: Unleashing female entrepreneurial potential (2017) https://www.pwc.com/gx/en/diversity-inclusion/assets/women-unbound.pdf
[4] The Alison Rose Review of Female Entrepreneurship (2019) https://www.gov.uk/government/publications/the-alison-rose-review-of-female-entrepreneurship