Support for women and minorities
PROMOTING entrepreneurship is central to economic growth and innovation, yet research continues to show that female and ethnic minority entrepreneurs struggle disproportionately to access the funding that they need to succeed.
The latest data from this year’s Gender Index shows that just 12.1% of fast-growth companies in Wales in 2022/23 were female-led.
That figure has actually improved since the last report and means that Wales is now outperforming other UK nations yet it is still low, while only 18.4% of ethnic minority-owned active companies in Wales are female-led.
Here in Wales we often talk with pride about our supportive ecosystem and the role that it plays in helping entrepreneurs to grow and scale their businesses.
Certainly, we have a close-knit community with organisations like Business Wales working alongside academia and funding providers including the Development Bank of Wales to signpost and support startups and fast-growth businesses. But could we be doing more to ensure a level playing-field for all?
Indeed, the latest version of the Rose Review is calling for more support for female entrepreneurs in the UK with new initiatives to help more women to start and build thriving businesses.
The Centre for Research in Ethnic Minority Entrepreneurship (CREME) has also joined forces with NatWest to set 10 evidence-based recommendations to promote greater success and inclusion of ethnic minorities.
Driving change is an ambition shared by many who are working to remove barriers and improve access to finance and business support.
It’s a matter close to my own heart as I take seriously the importance of diversity and inclusion within my
organisation and outside it too.
As one of ICAEW’s core strategic pillars, we are working hard to strengthen our profession and expand the perception of the accountancy sector.
I was pleased to chat with Carol Hall, of Angels Invest Wales, recently when she told me about the work of the newly formed Women Angels of Wales.
This syndicate of some 30 women has come together to help support women in the early-stage investment community in Wales.
The benefits of female business angel syndication was the topic of conversation at a PwC event held in London recently when Jenny Tooth, chief executive of the UK Business Angels Association (UKBAA) spoke about the issues facing female entrepreneurs.
She made the point that despite female angel investors having helped drive more than £2bn of investment in companies across the UK in the past decade, women remain a minority in angel investment.
Initiatives like Women Angels of Wales are therefore important, not least because data also shows that women are much more likely to invest in female-founded companies.
The recent launch of the Equality City Project by FOR Cardiff, the city’s Business Improvement District (BID), is also an important step in driving diversity and inclusion while Chwarae Teg, the charity leading gender equality in Wales, continues to support the economic development of women.
In fact, I am looking forward to meeting Lucy Reynolds, the new chief executive of Chwarae Teg, this month to discuss how we can work together with our members at ICAEW.
I know that Lucy is passionate about achieving gender equality so I am excited to have the opportunity to chat through how we can collaborate.
Of course, some might argue that the difference in funding for female and ethnic minority entrepreneurs is a gulf, not a gap.
You can’t argue with the numbers but we should be encouraged that more is being done to ensure that everyone can access the funding and support they need to prosper.