The East of England is one of the top four regions in the UK for female entrepreneurship, according to a new survey.
Over 10 per cent of the 1.47m women workers in the region are self-employed.
The most female-led companies are in the health, wellbeing and social care sector.
The second most popular sector is education, where women are particularly prominent in leadership roles.
There are many potential reasons for this – including the fact women are more motivated by work with a positive societal impact.
In fact, studies show that a third (33%) of women place greater value on meaningful work compared to around a quarter (27%) of men.
And women-led companies tend to outperform their male counterparts, according to ONS data.
However, male-led firms are more likely to be ‘fast-growing’ in terms of revenue, earnings or market share in a relatively short period.
This may be due to them typically receiving more investment and opportunities than female-owned companies.
Female-led companies in the UK are most commonly supported through angel investors, which provide financial support to a startup in exchange for equity or debt.
Last year, 435 UK businesses were financed through private equity, commonly used as a catalyst for substantial business growth in established companies.
Approximately 391 of the 435 private equity-funded companies were led by men, almost 90% of the total (435). Only three in every 100 (3.2%) female-led companies received private equity investment.
A similar percentage of female-led businesses receive company or venture capital investment at 5.0% and 4.9%, respectively. This is considerably less than that of their male counterparts, with 85.3% of male-led companies financed through company investment and 84.5% through venture capital funding.
These statistics suggest that females are much more likely to be forced to give away equity to launch their business than men.
While angel investors can be a valuable source of funding, they can potentially have disadvantages, such as loss of control, higher expectations, and conflicting ideas.
Neelam Ahuja, of money.co.uk business loans, which conducted the survey, offered her advice to women seeking success in business.
“It’s no secret that being a woman in business can come with barriers, whether it’s struggling to access capital, a lack of mentorship and networking opportunities, gender stereotypes, or work-life balance challenges.
“Despite this, the rising number of self-employed women over the years shows the perseverance of female trailblazers to overcome these barriers and make their mark in the entrepreneurial landscape.
“If you’re a woman wanting to start your own business, here are some things to consider:
Conduct market research-before doing anything else, it’s essential to research the business landscape thoroughly. This will help you identify your niche, target audience, and competition. You can then develop a detailed business plan, which you’ll need when applying for funding.
Secure funding-there are many ways to fund a startup business, including business loans, grants, investors, and personal savings.
To give yourself the best chance of securing funding, flesh out your business plan with detailed financial projections, maintain a good credit score, and be transparent about any potential challenges and risks.
Take advantage of networking opportunities-connecting with other female entrepreneurs is highly beneficial, as they’ll be able to help guide you through the process of launching your business and provide valuable advice.
Networking can also help you make connections that could be useful in the future of your enterprise.
Consider the legal requirements-depending on the nature of your business, you may be required to have a specific type of insurance, licence, or permit. It’s vital to ensure that you secure these to avoid any potentially costly legal issues.
Budget wisely – starting a business can sometimes bring unexpected costs. It’s wise to create a detailed budget, accounting for all startup and recurring expenses, as well as building a safety net fund for any unexpected costs with a business savings account.
