14th September 2017
In the past few years, the UK and moreover the world, has seen a huge increase in female owned businesses and startups. With a recent surge in the number of women starting up their own businesses in the UK, the ‘enterprise gap’ has seemingly shrunk over the last decade.
However, with British men nearly twice as likely as their female counterparts, to become entrepreneurial business owners, it’s now important to maintain the momentum through supporting female lead businesses.
Research obtained from the Global Entrepreneurship Monitor defines an entrepreneur as ‘any attempt at new business or venture creation, such as self-employment, or the expansion of an existing business by an individual or team.’ A survey conducted across 10,000 participants identified that 10.4% of working-age males identified themselves as entrepreneurs, compared to 5.5% of females, between 2013 to 2016. The survey also revealed that the smallest gap in the male to female entrepreneur ratio is located in the West Midlands, with 74 new female entrepreneurs to every 100 male entrepreneurs.
P2P lending can offer the opportunity to invest in new businesses, with the ability to gain a quality insight into the background of the borrower you are lending to. Furthermore, investors should look to support female lead businesses not only through alternative funding such as p2p lending but by also participating in community groups, forums and providing advice online.
With female company founders receiving a considerably low percentage of venture funding, it is likely that these aspirational business owners will look to alternative finance to ensure they’re able to progress.
Entrepreneur community group, Enterprise Nation, which boasts over 72,000 members, noted that retailers such as Amazon Marketplace and Not on the High Street, are heavily powered by UK-based female-run small businesses. This insight highlights the clear ability within the demographic to present tangible and viable businesses, which larger retailers see value within.
A study conducted by First Round Capital revealed that where companies had launched with at least one female founder in the mix, they often out-performed all-male teams by around 63%, a critical piece of information for p2p lending platforms looking to identify viable businesses to present to their investors.
Finally, a report conducted by the Centre for Entrepreneurs in partnership with Barclays demonstrated how female entrepreneurs displayed competitive spirit and incomparable drive to start scaling-up businesses, regardless of barriers. The results provide a valuable insight into the diversity that modern-day entrepreneurs bring and the variety that they can offer when it comes to business investment opportunities.