I’m proud of our progress but this is just the beginning
Six months after the publication of the Rose Review, its author hopes to build on strong foundations for closing the gender gap
The UK is not short of women eager to start a business who have the skills and passion to succeed. However, access to funding, caring responsibilities and learning what entrepreneurship involves can act as barriers. That’s why events such as Women Mean Business Live are so important. We need to keep our focus on removing the obstacles that stand in the way.
The Rose Review was born out of frustration at the unacceptable disparity between female and male entrepreneurs and the slow progress in closing this gap. The unrealised potential this causes the UK economy is considerable. Fewer UK women (5.6pc) choose to start a business than in “best in class” peer countries such as Canada (15pc), Australia (9pc) and the Netherlands (9pc).
My intention was that my review, published in March, had to lead to change. That is why we have committed to give an update in during November after the first six months.
The Rose Review Board has met twice and is co-chaired by Simon Clarke MP, the Exchequer Secretary to the Treasury, and Kelly Tolhurst, Minister for Small Business, with representatives from across the entrepreneurial ecosystem. The aim was to fully understand what was holding women back from starting or scaling a business, and identify the most significant opportunities to help women succeed and overcome them.
I’m proud to say we have made good progress, and this has been a team effort across public and private sectors. We have focused on eight practical interventions designed to make a tangible difference.
The Investing in Women Code was formally launched in July 2019 and has 21 signatories who commit to taking three practical and measurable steps: to designate a senior leader to promote equality in all interactions with entrepreneurs; to provide HM Treasury with defined data on businesses by gender; and to adopt practices that help female entrepreneurs access the tools, resources and finance they need to build successful businesses.
The Code is a collaboration between leading banks and investment firms, UK Finance, the British Private Equity and Venture Capital Association (BVCA) and the UK Business Angels Association (UKBAA), with support from HM Treasury. I’m encouraged that Lloyds, Barclays, Santander, TSB and Nationwide, alongside many others, are all now signatories to the Code.
To encourage further support and investment in female-led businesses, a Council for Investing in Female Entrepreneurs has been established. Membership is drawn from the finance, investment and business communities under the leadership of Alexandra Daly, CEO of AA Advisors.
After speaking with 350 business owners and listening to those with caring responsibilities, last month I announced more flexibility around two products to support business owners and entrepreneurs: helping them to defer or delay payments when needed on their business loan, and paying for an overdraft only when required. Flexibility around family care is the No 1 reason for women with children to start a business, so this was a priority. These supportive products are the first of their kind.
In addition, we have improved access to expertise. All 38 Local Economic Partnerships between businesses and local authorities
– to boost growth – now have access to a banking “expert in residence”.
This is just the beginning. The commitment and drive are in place to achieve the potential that exists, and to help more entrepreneurs succeed. Our aim is clear: to help create 600,000 more female entrepreneurs in the UK and to realise the £250bn opportunity for the UK economy.