Report highlights huge untapped potential of Wales’ female entrepreneurs

The challenges faced by women going into business have been highlighted at the Wales launch of a new report from the Federation of Small Businesses (FSB).

The report ‘Women in Enterprise: The Untapped Potential’ explores the specific challenges faced by women-led businesses, and makes recommendations for improving support, developing mentoring networks and increasing the diversity of business ambassadors.

The report sets out research showing that women-led businesses face many of the same challenges all small firms encounter – including cash flow issues (42%), and difficulty accessing finance (25%).

However, there were some challenges that are more acute for women business owners. These included balancing work and family life (cited by 40% of women entrepreneurs questioned), achieving credibility for the business (37%) and a lack of confidence (22%).

To further the recommendations of the report, FSB is to launch a dedicated ‘Women in Enterprise Taskforce’ to support woman entrepreneurs and business owners.

FSB Diversity Policy Chair, Helen Walbey, whose own business is based in Aberdare, South Wales, said: “Women-led smaller businesses already contribute more than £75 billion to the UK economy. But less than one in five (18%) of businesses are majority-run by women. If women were to set up businesses and grow them at the same rate as men, we would see a huge boost to growth and prosperity in this country. In fact, the UK Government estimates it could add £600 billion to the economy.

“Everyone should have the same chance to succeed in business. Understanding the importance of diversity and getting more women into business is critical for a dynamic and vibrant small business sector. That’s why we need to work out what the barriers are for women here in Wales and across the UK and break them down one by one.”

The most popular motivation for women starting a business was found to be confidence in their skills in their chosen sector (37%). However, a majority of women said improving online and digital skills (55%), marketing expertise (56%) and business strategy skills (60%) would be the most useful measure to grow their business.

The report also found that a third (34%) of women business owners say they have experienced gender discrimination in the workplace. This was felt particularly in sectors that are traditionally male dominated – for example in construction where over half (54%) had experienced discrimination.

Helen Walbey added: “More needs to be done to really empower women. Vocational education is one way to grow the next generation of women entrepreneurs, but they also need long-term business support to help them succeed and grow. Better advice and mentoring should be provided; in Wales that could be done through specific women’s business centres as part of a Wales Small Business Administration. The Maternity Allowance for the self-employed should also be brought in line with Statutory Maternity Pay.

“Small firms already make a huge contribution to our economy; if we can harness the still largely untapped potential of women entrepreneurship, it could lead to additional jobs, economic growth and a more diverse and representative small business community, not least here in Wales.”

The report was launched at an event at the Pierhead, Cardiff Bay from noon on Wednesday, June 16.

A panel including FSB Diversity Chair Helen Walbey, FSB Wales Policy Chair Janet Jones, Indycube founder Mark Hooper and Lee Sharma, Chief Executive of Simply Do discussed the report and its findings. The event was sponsored by Deputy Presiding Officer Ann Jones AM.