It’s time that women in business got the financial support they need
SIR – We, the undersigned business leaders, entrepreneurs, Members of Parliament, academics and representatives of the Telegraph, are writing to highlight an issue that we think requires urgent action.
We are deeply concerned that some entrepreneurs – predominantly female – in Britain are being held back unfairly. Today, we are calling on secretaries of state to take measures to help close the funding gap that prevents many women from starting their own businesses.
One in eight working women in Britain wants to start her own business, according to research by Freeagent and Onepoll, and yet here are some uncomfortable statistics: the Entrepreneurs Network has found that just 9 per cent of funding for UK start-ups goes to women-run businesses in Britain annually. Men are 86 per cent more likely to be funded by venture capital and 56 per cent more likely to secure angel investment than women, according to the Entrepreneurs Network and Beauhurst. In a new study by the Federation of Small Businesses, a quarter of female small business owners cited the ability to access traditional funding channels as a key challenge, with many relying on alternative sources – crowdfunding, personal cash and credit – for growth.
There has also been widespread research showing that women entrepreneurs, on average, have lower loan approval rates than men and can be charged higher interest rates.
No doubt there will be complex reasons for the disparity, but the figures clearly show a funding gap; one that we believe needs to be addressed at government level. With Brexit on the horizon, it has never been more important to back British businesses. Deloitte estimates that targeted help for early stage women entrepreneurs could provide a £100 billion boost to the UK economy over the next 10 years.
This Government pledged to be the party of “enterprise and of the entrepreneur”. We urge it to back up those words with deeds and to invest in resources that will help to close this funding gap.
As we mark the centenary of the Representation of the People Act, we must also consider what still needs to be done to advance equality. This is one area that is still outstanding and a matter that deserves to be treated seriously. Samantha Cameron
Founder and Creative Director, Cefinn Alexa Chung Creative Director, Alexachung Baroness Karren Brady
Vice Chairman, West Ham United Football Club
Baroness Martha Lane Fox Founder, Lastminute.com Brenda Trenowden
Global Chairman, 30% Club