Half of female entrepreneurs have turned down a loan to fund their new business, according to new research – putting pressure on the government’s ambitions to boost the UK economy.
Some business owners are viewed as “part-timers” because women have children or are viewed as less important professionals than their male counterparts.
Around 53% of women in the UK admit that limited access to finance has made it difficult for them to start their own businesses, according to a survey of its members by financial platform Tide.
Denial of access to finance or credit was seen as the biggest barrier to successful business start-up.
The challenges were even more pronounced for black women, with more than two-thirds of black women finding the process difficult.
This compares with nearly half of white and Indian women who said the same, revealing the additional barriers some women from ethnic minorities face.
The report highlighted the regional divisions in Yorkshire, the Humber and Scotland where women entrepreneurs struggle more than other regions to access finance.
Half of UK women entrepreneurs who apply for a loan or investment to finance their new business are rejected, according to a survey.
Samantha Senior, co-founder of an accountancy firm for the medical aesthetics industry called The Esthetic Accountants, said she was struggling with finances after being hit by Covid as a single mother.
She also noted that she challenges the “traditional” attitudes of the male-dominated accounting industry.
She said: “I and other female accountants find that we still challenge the traditional views that accounting is a male-dominated field.
“According to some established male accountants, female professionals are less committed to the industry than their male counterparts.
“We can be seen as part-time, working around our kids, but we work hard to counter those misconceptions.”
The findings come despite the Government’s desire to stimulate economic growth and boost business investment amid a downturn in the economy.
Britain avoided recession in the last three months of 2022, with gross domestic product (GDP) growing by just 0.01% in the quarter.
Despite this, many financial companies have pledged to help women entrepreneurs improve their chances of success when it comes to accessing critical financing.
Nearly 190 financial services institutions have signed the Investing in Women Code, which formally commits firms to promoting women-founded businesses.
Major lenders such as NatWest, Lloyds Bank, Barclays and Santander are all members of the code.
Also, a recent report by the Rose Review – an independent review of women’s entrepreneurship led by NatWest Group CEO Dame Alison Rose – found that more women will start companies in 2022 than ever before.
The data showed that 150,000 new companies were created in one year, an unprecedented number, and more than double the number created in 2018.
In addition, Teed said he has worked to help engage more than 100,000 women-run businesses.