Written evidence submitted by Ms Madeleine Jones, Small business mentor, SEO consultant, founder of Pints & Purpose community at Maddy Shine/ Sassy and Soft/Pints and Purpose [FEN0014]
Women face a great number of barriers to entrepreneurship in the UK. As a queer female entrepreneur myself of 13 years, having worked with thousands of women, I speak not only from personal experience but also from the collective experiences of my community. Women are constantly told they are not good enough, too emotional, and to expect less from themselves in order to stay small, not start, and not grow.
I have hosted different communities of women through my work over the years under the brands maddyshine.co.uk, sassyandsoft.co.uk, and my most recent community being Pints and Purpose - where I host meetups for women and non binary entrepreneurs and freelancers in local pubs in south east London. I arrange these meetups as a great way to network but also to highlight that it’s still considered rare for groups of women entrepreneurs to meet in the pub in the evening due to the unpaid labour and many emotional responsibilities put upon us. You can find out more about us here: https://www.instagram.com/pintsandpurpose
Financial Barriers
● Limited Access to Funding: We receive less investment than men, with studies showing that female-led businesses secure only a fraction of venture capital funding. Women from ethnic minority backgrounds face even greater difficulties due to bias in lending and investment decisions. The British Business Bank Equity Tracker Report 2023 illustrates this, where all female founder teams raised just 8.2% of deals in 2023, a decrease from 8.9% in the previous year. Source: https://www.british-business-bank.co.uk/business-guidance/guidance-articles/finance/closing-the-gender-investment-gap. For LGBTQ+ entrepreneurs, the access to funding is even worse. The stats are not available for the UK but in the USA, just 0.5% of funding goes to LGBTQ+ businesses according to the 2023 State of LGBTQ Entrepreneurship Report. https://startout.org/wp-content/uploads/2023/09/2023-State-of-LGBTQ-Entrepreneurship-Report.pdf
● Gender Pay Gap: Despite the Equal Pay Act being introduced in 1975, and the Equality Act in 2010, we still earn less than men on average, limiting their ability to set aside disposable income for starting their own businesses. In fact, due to a lack of education and awareness, many women aren’t aware that they should be paid the same as men. Source: https://www.fawcettsociety.org.uk/right-to-know#:~:text=50%20years%20since%20the%20Equal,for%20work%20of%20equal%20value
● Lack of Collateral: Due to sexism and the outdated idea of men owning property and women, many of us have lower levels of personal wealth and assets, making it harder to secure business loans.
● Investor Bias: Pitching events and investment networks tend to favour male entrepreneurs, with investors often perceiving us as higher risk due to having children or other unpaid labour expectations in our lives. The lack of education on what’s expected with pitching for investment is connected to this bias because we simply aren’t given the time or resources to learn.
Suggested Solutions:
● More inclusive investor panels which can only come about through sexism training and anti-racism training for all concerned. This is starting to happen with investor companies like British Bank https://www.british-business-bank.co.uk/finance-options/investment-funds/enterprise-capital-funds/diversity-in-investment but more needs to be done.
● Funding into studying the data for LGBTQ+ entrepreneurs and business owners
● More affordable childcare options. The Cherie Blaire Foundation and the Gates Foundation have found that their initiatives in Africa to offer free childcare for women entrepreneurs has been successful - https://cherieblairfoundation.org/news-list/childcare/ and https://www.gatesfoundation.org/ideas/articles/womens-economic-power-child-care. In 2019, Scotland offered loans to women who wanted to start a business https://www.heraldscotland.com/news/17488568.childcare-loans-women-want-start-business/ - this is not enough.
● Money management and financial education in schools to be mandatory. The House of Lords shows that financial education is inadequate in many schools: “Findings from the APPG’s survey of 401 teachers from UK primary and secondary schools in 2022 found that over two-fifths of secondary school teachers surveyed did not know that financial education was a curriculum requirement.” https://lordslibrary.parliament.uk/financial-education-in-schools/
● More sexism education for men from school age - this is an initiative by the National Education Union but it needs more media attention and more awareness - https://neu.org.uk/latest/library/getting-started-whole-school-approach-preventing-sexism-and-sexual-harassment
● More accessibility training given to all from school age
Societal and Cultural Expectations
● Gender Norms: Traditional expectations about caregiving responsibilities mean women often balance business with unpaid domestic labour, reducing the time and energy available to grow a business. The inflexibility of professional attitudes (e.g., rescheduling a meeting due to childcare issues) adds to this burden.
● Stereotypes: Women, particularly those in male-dominated industries, face assumptions that they are less capable or committed. Sexist attitudes towards women running their own businesses further contribute to these challenges.
● Lack of Representation: Women are often made to feel unworthy due to the lack of representation in entrepreneurship. The dominant online narrative suggests there is only one way to be a successful female entrepreneur—often the "badass boss babe" archetype, which doesn’t resonate with many of the women I meet and work with. These women, myself included, don’t necessarily want to asked to do more, we want to be heard and accepted and acknowledged. We want support with our responsibilities, not to be told to act like men to achieve success.
Suggested Solutions:
● More recognition and awareness of the barriers we face in the media
● More funding for women-only spaces (inclusive of all women) including groups like my Pints and Purpose community - instagram.com/pintsandpurpose
● Connect communities like ours to brands who want to demonstrate their DEI values
● Greater trans awareness and education because representation matters.
● More affordable childcare options
● Values-based education that prioritises inclusivity and fairness from school age
● More investment in third spaces for women, particularly since work and home often overlap for female entrepreneurs.
● Greater emphasis on affordable mental health support.
● More spaces where values such as skill-sharing, community, kindness, support, knowledge, generosity, and community care are prioritised over profit.
● Encouraging community care schemes on a national level
Lack of Access to Networks and Mentorship
● Old Boys’ Clubs: Business and investment networks are often male-dominated, making it harder for women to access key relationships.
● Fewer Role Models: A lack of high-profile female business leaders means fewer visible pathways for success.
Suggested Solutions:
● More women-focused networking groups and events like my Pints and Purpose community instagram.com/pintsandpurpose
● Greater visibility of diverse female role models in business.
● Encouraging mentorship opportunities for women.
Institutional and Structural Barriers
● Childcare Costs: The high cost of childcare in the UK disproportionately affects women, making entrepreneurship financially difficult.
● Bias in Business Support: Women may find that business advice, accelerator programmes, and grants are designed with male entrepreneurs in mind.
● Discrimination: Women from ethnic minority backgrounds may face both gender and racial bias, making it harder to access support, funding, and customers. I’ve had members of the Pints & Purpose community thank me for providing space for non binary entrepreneurs like them, and I’ve also been told specifically by strangers online when advertising my events not to include trans people, not to hold events for women, and not to make money from holding events for women.
Suggested Solutions:
● Subsidised childcare for entrepreneurs.
● Inclusive business support initiatives tailored to women.
● Anti-discrimination policies and better representation in funding bodies.
Confidence and Perception Gaps
● Risk Aversion: Research suggests women are more likely to self-assess their businesses conservatively, making them less likely to apply for funding.
● Imposter Syndrome: Many women feel less confident in their abilities due to systemic bias and lack of representation.
Suggested Solutions:
● Confidence-building workshops.
● More visibility of successful female entrepreneurs sharing their challenges and wins.
● Business incubators specifically for women.
Challenges Specific to Ethnic Minority Women
● Higher Barriers to Finance: Black and South Asian women are less likely to receive business loans or investment and often have to rely on personal savings or community networks.
● Discrimination and Microaggressions: Ethnic minority women report facing racism, tokenism, and exclusion in business circles.
● Language and Cultural Barriers: For immigrant women, language barriers and unfamiliarity with UK business systems can create additional hurdles.
Suggested Solutions:
● More grants and investment funds specifically aimed at ethnic minority women.
● Anti-racism and unconscious bias training for investors and business leaders.
● Tailored business support and mentoring for ethnic minority women entrepreneurs.
Digital and Technological Barriers
● Limited Digital Skills: Women, particularly older women or those from disadvantaged backgrounds, may have less access to digital skills training.
● Bias in AI and Tech: Women entrepreneurs in tech often face bias when seeking funding or credibility.
Suggested Solutions:
● Digital skills training initiatives targeting women.
● More funding and support for female-led tech businesses.
● Increased diversity in tech investment panels.
Workplace and Accessibility Issues
Women are often discouraged from speaking up about their concerns and are expected to "just get on with the work" even when operating at reduced capacity. Many women feel they cannot ask for accessibility adjustments, are labelled as too emotional when expressing concerns, and are not taken seriously in professional environments.
Suggested Solutions:
● Encouraging open conversations about workplace accessibility and emotional well-being.
● Normalising flexible working arrangements.
● Implementing policies that allow women to speak up without fear of backlash.
Conclusion
Women, particularly those from ethnic minority backgrounds, face multiple systemic barriers when starting and growing businesses in the UK. However, by addressing financial inequality, societal expectations, structural discrimination, and access to resources, we can create a more inclusive and supportive entrepreneurial environment. This requires collaboration between policymakers, investors, business leaders, and communities to dismantle the barriers holding women back and build a future where all women can succeed on their own terms.
I would be very interested in speaking with you further about these issues, so if you would like to discuss further, please contact me on maddy@maddyshine.co.uk
March 2025