UK-based Fintech Tide has published a survey that indicates women founders find it difficult to access capital.
According to the survey, limited access to capital is the top issue for starting a business.
Tide reports that more than half, or 53% of women across the UK find it challenging to start their own business, with limited access to finance as the most significant barrier.
Tide states that all female-led firms account for 20% of new businesses created in the UK during 2022 – a record percentage. Yet, women still find it harder to access capital, citing gender 19% of the time.
When you take minority status into consideration, Tide claims:
“More than 2 in 3 (68%) Black female business owners find the process of launching a new venture hard – they are 20% more likely to find it challenging than their white and Indian counterparts (49%). Regionally, women based in Northern Ireland (73%), Scotland (64%) and the North East (59%) find it the toughest to start a business.”
Heather Cobb, SVP of Member Engagement at Tide, said they have met their target of onboarding 100,000 female led businesses a year early as they originally sought to accomplish this milestone by the end of the yare. She added that there is still a long way to go in improving entrepreneurship for women.
The top roadblocks for UK women launching a business are as follows:
| 1. Not able to secure investment, loan or money from friends/family | 54% |
| 2. No business mentor or a role model | 11% |
| 3. Limited knowledge on how to set up a business | 9% |
| 4. Lack of self-confidence | 8% |
| 5. Limited knowledge of the business areas | 7% |
The top UK regions where women are struggling to access finance*:
|
64% |
|
53% |
|
43% |
|
42% |
|
37% |
*% of women in this region who are struggling to access finance when starting a business.
