Written Evidence Submitted by: Dina Modestus Nziku, University of the West of Scotland (UWS) & Chanel Bikorimana, Glasgow Caledonian University (GCU) [FEN0031]

Dr Dina Modestus Nziku is a Senior Lecturer at the University of the West of Scotland (UWS), specialising in Business and Enterprise, with her research focusing on women entrepreneurs and entrepreneurship policy. Apart from having PhD on women entrepreneurship policies and strategies, Dr. Nziku has published numerous papers in academic journals, and authored book chapters on ‘The Impact of Poverty, Disadvantages and Entrepreneurship among Refugee Women Entrepreneurs in Glasgow-Scotland’. She has edited several books, on women entrepreneurs in sub-Saharan Africa, North Africa, the Middle East and coming soon (in press) women entrepreneurs in East Africa. Her research on forcibly displaced refugee women entrepreneurs in Glasgow - Scotland highlights the challenges and opportunities they face. Dr Nziku contributed to the OECD-GWEP 2021 report (with 2025 report in press) on women's entrepreneurship policy and presented her research at the United Nations - (UNCTAD) and the International Organization for Migration (IOM). She has won research grants from Innovate UK for international projects. Her works have been published by leading publishing houses like Bloomsbury, Emerald, and Springer, establishing her as a leading expert in women's entrepreneurship and socioeconomic development.

Dr Chanel Bikorimana is a distinguished researcher and Associate Lecturer at Glasgow Caledonian University, Scotland. His research interests encompass Immigrant and Refugee Entrepreneurship, as well as Gender and Entrepreneurship Policy. Dr. Bikorimana has presented his research at international conferences, focusing on Women's Entrepreneurship Policy and Women's Entrepreneurship Resilience. His scholarly work has been published in esteemed international journals, and he has shared his insights at notable national and international academic conferences, including the Institute for Small Business and Entrepreneurship (ISBE), Management, Economy, and Technology (MET), and the Diana Institute of Research. Dr Bikorimana has served as a business advisor for Glasgow City Council, where he has played a pivotal role in developing the Refugee Entrepreneurship Programme in Glasgow for over two decades. His expertise has been recognized by Scottish Enterprise Glasgow, where he was invited to present his research findings. He has also actively participated in numerous round table and think tank discussions organized by the Scottish Government, Scottish Enterprise, and the Business Gateway National Unit. These discussions have focused on the effectiveness of the Enterprise and Entrepreneurship Policy for immigrant and refugee entrepreneurs in Scotland.

Inquiry: Female Entrepreneurship

Addressing Question 1: What are the barriers facing women, including specific groups of women such as those from an ethnic minority background, seeking to start and grow successful businesses in the UK?

Introduction

Women entrepreneurs are vital drivers of innovation and economic growth, yet their entrepreneurial journeys are often obstructed by deeply entrenched societal norms, structural inequalities, and institutional biases. These challenges are particularly pronounced for women from ethnic minority backgrounds and forcibly displaced refugee women, who face compounded adversities, including gender bias, limited access to funding, inadequate mentorship, and disproportionate caregiving responsibilities. Despite growing recognition of their critical role in fostering economic development, these systemic barriers impede their ability to start, sustain, and scale their businesses successfully.

The entrepreneurial landscape in the United Kingdom presents both opportunities and challenges for women, particularly those from marginalized groups. Ethnic minority and refugee women face additional obstacles stemming from systemic gender and racial biases, which exacerbate their struggles in accessing resources and support systems. These barriers are further magnified by a lack of inclusive mentorship programs, professional networks, and supportive policies that address their unique needs.

By examining the intersectionality of gender, ethnicity, and refugee status, it becomes evident that targeted interventions and comprehensive support systems are essential. Implementing inclusive policies can foster a more equitable and empowering entrepreneurial ecosystem, enabling all women to overcome these challenges and contribute meaningfully to society. In doing so, the UK can unlock the untapped potential of diverse women entrepreneurs, driving innovation and sustaining economic growth for all, if the identified barriers are fully addressed.

Rationale

The entrepreneurial landscape in the United Kingdom presents a complex interplay of opportunities and challenges for women entrepreneurs, particularly those from ethnic minority backgrounds and those with refugee status. Despite their critical contributions to economic growth and innovation, they face systemic barriers that impede their ability to start, sustain, and scale their businesses successfully. This submission presents a comprehensive analysis by Nziku and Bikorimana that highlights the systemic gender and racial biases exacerbating these challenges, including gender bias, limited access to funding, lack of skills, disengagement with mainstream agencies, and insufficient mentorship and networks. Addressing these barriers through targeted interventions, inclusive policies, and comprehensive support systems is essential to unlocking the full potential of women entrepreneurs, thereby driving innovation and economic growth in the UK.

Barriers Faced by Women Entrepreneurs

Women entrepreneurs, particularly those from ethnic minority backgrounds and forcibly displaced refugee women, face significant and acute challenges rooted in societal, structural, and institutional biases. These barriers include gender bias, limited funding[1] access, lack of mentorship and networks, lack of business support and caregiving responsibilities. Minority women often face intersecting racial and gender inequities, while refugee women encounter additional hurdles, such as systemic restrictions, societal prejudice, discrimination and isolation from support systems. Addressing these challenges through targeted interventions, inclusive policies, and tailored support can create a more equitable entrepreneurial ecosystem, fostering innovation and economic growth as well as facilitating refugee integration in the UK.

Gender Bias: Women often encounter biases and stereotypes that can hinder their access to funding, resources, and opportunities in the entrepreneurial ecosystem[2] A study conducted by Rose[3]  related to female entrepreneurship suggested that women are less likely to receive funding compared to men, with only 9% of funding going to women-run businesses. This disparity is further highlighted by a report from the British Business Bank[4] and Wyman which revealed that female entrepreneurs from ethnic minority backgrounds experience significant disparities in business with many reporting not making a profit. In the case of refugee women entrepreneurs, evidence from Glasgow revealed that refugee women who received temporary leave to remain with refugee status in the UK, are less likely to access commercial funding due to immigration status[5]. Gender stereotypes significantly shape women’s journeys to and through entrepreneurship by affecting their aspirations, source of support, opportunities, access to resources, perceptions, and the wider entrepreneurial ecosystem (GEM). The Cherie Blair Foundation for Women’s report on gender stereotypes found that 70% of women entrepreneurs surveyed said that gender stereotypes have negatively affected their work as entrepreneurs[6]. Recently, the Global Entrepreneurship Monitor (GEM) report highlights that women are more likely than men to be solopreneurs with 1.47 women solopreneurs for every 1 man.

Nziku and Bikorimana (2023)[7] revealed that forcibly displaced refugee women entrepreneurs often face discriminatory attitudes and systemic barriers rooted in traditional gender roles, which limit their access to resources and opportunities. For instance, societal expectations frequently confine women to caregiving roles, leaving them with less time and support to focus on their businesses. Additionally, Nziku and Bikorimana (2023)7; Bikorimana and Nziku (2024)[8]; and Arshed1 studies emphasized that gender bias extends to financial institutions, where women entrepreneurs are often perceived as higher-risk borrowers, further restricting their access to funding. These biases not only hinder the growth of women-led businesses but also perpetuate inequalities in the entrepreneurial ecosystem. Nziku and Bikorimana7,8 provide an example of gender bias through the experiences of refugee women entrepreneurs in Glasgow. One participant in their study shared how she was often dismissed by potential clients and suppliers, who preferred to negotiate with male counterparts, assuming they were more competent or authoritative. This bias not only undermined her confidence but also created additional hurdles in establishing her business credibility. Such instances highlight the pervasive impact of gender bias on women entrepreneurs, particularly those from marginalised communities.

Limited Access to Funding: Securing funding is a significant hurdle for all entrepreneurs, but it is often amplified for women and more acute for refugee women entrepreneurs. A recent work which provides evidence from Glasgow conducted by Bikorimana and Nziku (2025)[9] revealed that refugee women entrepreneurs granted temporary leave to remain for five years face acute constraints to access funding due to their immigration status. Those entrepreneurs are also reluctant to engage with mainstream agencies[10];[11];[12] to access support. Such lack of funding prevents women from accessing markets. A report by PitchBook[13] Data found that women-led start-ups received just 2.3% of venture capital, echoed also by Stanley and Beauhurst[14] who revealed that less than 2% of equity funding goes to female-founded companies in the UK. Similarly, Crunchbase’s analysis[15] indicates that the global percentage of funding allocated to all-women entrepreneurs has stagnated below 3% for several years. Ethnic minority women entrepreneurs face even more pronounced challenges in accessing finance.  Huang and Dann[16] argued that ethnic minorities, single mothers, and/or physical appearance had compounded risk perception leading to unconscious bias and discrimination. The British Business Bank’s report on entrepreneurship and diversity in the UK reveals those female entrepreneurs from ethnic minority backgrounds experience significant disparities in business outcomes, with many reporting no profit in the previous year.

The RAND Corporation[17] highlights that inequalities in wealth and access to capital diminish entrepreneurship start-up success for women and racial as well as ethnic minorities. Furthermore, research by the Diversity VC Group[18] points out that while overall venture capital investments have increased, ethnic minority women founders often face systemic biases, resulting in fewer opportunities to secure capital. Additionally, a study from the Centre for Entrepreneurs) notes that women of colour are disproportionately likely to bootstrap their businesses due to a lack of financial backing, which limits their growth potential and scalability[19]. Nziku and Bikorimana (2023)7 highlight that forcibly displaced refugee women entrepreneurs in Glasgow face significant barriers to accessing funding. Finance was identified as the primary obstacle, compounded by systemic restrictions imposed by government authorities and local councils. Refugee women also encounter challenges such as limited access to markets, and inadequate management skills. The study emphasizes that these barriers not only hinder the growth of women-led businesses but also perpetuate inequalities in entrepreneurial opportunities (Bikorimana and Nziku (2024)8).

Lack of Mentorship and Networks: Having a solid support network is crucial for business success. Without a mentor, women entrepreneurs are at a disadvantage. Ethnic minority women entrepreneurs often lack mentors or support networks to guide them, which is essential for navigating the business landscape. Women, particularly those from ethnic minority backgrounds, often lack access to mentorship and professional networks. The Federation of Small Businesses[20] (FSB)report indicates that ethnic minority business owners struggle disproportionately with accessing finance and are often detached from mainstream business support. Building on the importance of support networks, research underscores that mentorship plays a pivotal role in enhancing entrepreneurial success, particularly for women from ethnic minority backgrounds. Additional constraints faced by minority women and refugee entrepreneurs are linked with a lack of support to cover the cost of childcare provision which prevents them from attending networking events Bikorimana and Nziku (2022)[21].

A report by the Global Entrepreneurship Monitor (GEM) highlights that women entrepreneurs with access to mentorship are more likely to overcome business challenges and achieve growth. However, ethnic minority women are often excluded from traditional mentorship programs and professional associations[22], limiting their exposure to critical advice and guidance). Furthermore, studies by the Rose Review3 reveal that access to influential networks significantly boosts funding opportunities and resource availability for female entrepreneurs. This lack of structured support not only widens the inequality gap but also restricts the full economic potential of women-led businesses. Strengthening mentorship opportunities for ethnic minority women could help address these systemic issues and foster greater inclusivity in entrepreneurship.

Nziku and Bikorimana (2023)7 conducted an in-depth analysis revealing that the absence of mentorship and professional networks poses a substantial barrier to the entrepreneurial success of forcibly displaced refugee women entrepreneurs. Their findings underscore that these women frequently operate in isolation, with limited access to experienced mentors who could provide critical guidance for navigating business challenges. Moreover, the lack of robust social and professional networks constrains their ability to identify opportunities, secure funding, and access essential resources. This isolation not only impedes business growth but also perpetuates systemic inequalities, thereby hindering the attainment of sustainable success in their entrepreneurial endeavours.

Societal Expectations and Care Responsibilities: Societal expectations and caregiving responsibilities can create additional pressures on women entrepreneurs. Often, women are more likely than men to say that being a working parent makes it harder for them to advance in their careers. Rose Review3 emphasizes the need for greater family care support to help women balance their entrepreneurial ambitions with caregiving duties. In addition to societal expectations, research consistently demonstrates that caregiving responsibilities disproportionately fall on women, creating unique challenges for their entrepreneurial journeys. According to the GEM, women entrepreneurs frequently cite childcare and eldercare obligations as barriers to business growth, with many reporting reduced hours or missed opportunities due to these demands. Moreover, Nziku and Forson[23] revealed that the ‘double burden’ of managing businesses while fulfilling care responsibilities significantly limits women's ability to scale their enterprises. For example, in countries where affordable childcare is lacking, women entrepreneurs are often forced to pause their ventures or operate at reduced capacity. Initiatives such as subsidized childcare programs or flexible working arrangements have been identified as critical tools to mitigate these challenges and enable women entrepreneurs to thrive. These findings underscore the pressing need for systemic solutions to address the intersection of caregiving and entrepreneurship for women.

Nziku and Bikorimana (2023)7 highlight that societal expectations and caregiving responsibilities significantly impact the entrepreneurial endeavours of refugee women in Glasgow. Our work suggested also that most forcibly displaced women want to contribute to society to integrate into the community, but the labour market combined with financial constraints limited their participation. Their research reveals that these women often face immense pressure to fulfil traditional caregiving roles, which limits the time and energy they can dedicate to their businesses. This dual burden is exacerbated by a lack of affordable childcare and support systems, forcing many women to prioritize family obligations over entrepreneurial ambitions. The study emphasizes that these societal norms not only hinder business growth but also perpetuate gender inequalities, making it challenging for women to achieve financial independence and entrepreneurial success. An example from Nziku and Bikorimana (2023)7 research highlights a refugee woman entrepreneur in Glasgow who struggled to balance her tailoring business with caregiving duties. Without affordable childcare options, she often had to bring her children to her small workshop, which affected her productivity and professionalism. This dual burden of managing her business and caregiving responsibilities not only slowed her business growth but also added emotional and physical stress. This case exemplifies how societal expectations and caregiving responsibilities can create substantial barriers for women entrepreneurs, particularly those in vulnerable or marginalized communities.

Summary

The above examples and references underscore the significant barriers that women, especially those from ethnic minority backgrounds and more to those who are forcibly displaced refugee entrepreneurs face in starting and growing successful businesses. Women entrepreneurs play a vital role in driving economic growth and fostering innovation, yet they face numerous challenges, including limited access to funding, lack of support to cover the cost of childcare provision, and limited access to markets, mentorship, and professional networks. These systemic barriers hinder their ability to scale businesses and achieve sustainable success. Moreover, societal expectations and caregiving responsibilities often place disproportionate pressures on women, making it more challenging for them to balance personal and professional commitments. Addressing these issues requires targeted interventions, such as mentorship programs, accessible funding opportunities, and supportive policies that empower women entrepreneurs to realize their full potential.

Minority women entrepreneurs encounter additional layers of adversity due to intersecting factors like race, ethnicity, and gender. PitchBook research shows that they often struggle with disparities in funding access, with reports indicating lower approval rates for loans and venture capital compared to their male counterparts. Bias in investor decision-making exacerbates the existing challenges faced by minority women entrepreneurs. Investors often perceive minority women as higher-risk[24] investments, which can result in limited access to capital and support. This bias not only impacts their ability to secure funding but also perpetuates systemic inequalities, hindering their chances of achieving entrepreneurial success. Additionally, a lack of representation in influential networks restricts access to essential mentorship and business opportunities (Global Entrepreneurship Monitor). These challenges are exacerbated by societal inequities and systemic discrimination, as highlighted in the Federation of Small Businesses (FSB report, which identifies persistent barriers faced by ethnic minority entrepreneurs. Bridging these gaps calls for inclusive initiatives that dismantle biases, expand access to capital, and amplify the voices of minority women entrepreneurs within the business ecosystem.

Forcibly displaced refugee women entrepreneurs face even more pronounced challenges, as they must navigate unique hurdles such as systemic restrictions, societal prejudice, discrimination and isolation from critical support networks. Nziku and Bikorimana (2023)7 highlight how these women often operate under constrained circumstances, balancing caregiving responsibilities with limited access to mentorship and resources. To support these resilient entrepreneurs, it is crucial to provide tailored programs, such as culturally sensitive mentorship initiatives, affordable childcare, and access to financing. Such measures would help empower forcibly displaced refugee women entrepreneurs to overcome these barriers and contribute meaningfully to their communities and local economies. Furthermore, the studies conducted by Nziku and Bikorimana (2023)7; Bikorimana and Nziku (2024)8 revealed that forcibly displaced women entrepreneurs in Scotland face unique challenges such as restrictions imposed by government authorities, lack of support and specific training programmes, and poor engagement with mainstream enterprise support agencies due to immigration constraints and lack of social networks in the UK. Addressing these barriers targeted support, inclusive policies, and increased access to funding.

Conclusion

Women entrepreneurs in the UK face significant challenges rooted in societal, structural, and institutional biases. These include gender bias, limited access to funding, lack of mentorship, and insufficient professional networks. Ethnic minority women face additional barriers, such as systemic discrimination and exclusion from influential networks, which further restrict their opportunities. Forcibly displaced refugee women entrepreneurs confront even greater obstacles, including societal prejudice, caregiving responsibilities, and limited access to mentorship and resources. Addressing these issues requires targeted interventions, inclusive policies, and systemic support to foster an equitable entrepreneurial environment that empowers women from all backgrounds and drives economic growth.

March 2025

Recommendations

To enhance the entrepreneurial landscape for women, particularly those from ethnic minority backgrounds and refugee communities, targeted policy interventions are essential. These recommendations include:

1. Enhanced Access to Funding: establish dedicated funding programs for women-led businesses, focusing on grants and low-interest loans to bridge the financing gap.
2. Inclusive Mentorship Programs: develop initiatives that connect experienced entrepreneurs with women and minority business owners to provide essential guidance and support.
3. Tailored Training and Education: offering specialised training in business management, digital skills, and financial literacy, alongside language and cultural integration courses for refugee entrepreneurs.
4. Policy Advocacy and Awareness: promote gender and racial equality in entrepreneurship through public campaigns and policy advocacy.
5. Networking and Support Networks: create platforms for women entrepreneurs to share resources and opportunities, facilitating access to business incubators and accelerators.
6. Addressing Societal and Caregiving Responsibilities: implement family-friendly policies such as flexible work arrangements and affordable childcare solutions to support women balancing entrepreneurial and caregiving roles.
7. Government and Private Sector Partnerships: foster collaboration between government, private sector, and non-profit organisations to build a supportive ecosystem for women entrepreneurs.
8. Research and Data Collection: conduct research to identify the specific needs and challenges of women entrepreneurs from diverse backgrounds, using data to inform policy decisions.

Implementing these recommendations has the potential to establish an inclusive and supportive environment, thereby augmenting the economic contributions of female entrepreneurs and fostering a culture of innovation. Such initiatives are crucial for driving sustainable economic growth and promoting gender equity within the entrepreneurial ecosystem.

8