Decline in female-led businesses as gender bias persists | Personal Finance | Finance

Recent studies have unveiled that over a third of women have faced gender bias while running their own businesses. A poll of 500 female small business owners revealed that 35% have been victims of discriminatory behaviour in the workplace, with more than half (53%) feeling compelled to outperform their male counterparts.

The research also discovered that nearly half (47%) of women believe there are extra risks involved in starting a business as a woman, primarily due to not being taken seriously. They also reported frequently wrestling with the challenge of balancing professional and personal life. Imposter syndrome was also recognised as a significant hurdle for many women contemplating starting their own business.

AXA UK commissioned the research as part of its commitment to support entrepreneurs through its Startup Angel competition. The contest offers new and aspiring business owners the chance to win one of two grand prize packages worth £25,000 each, along with mentorship from small business experts.

This study emerges amidst a declining trend in the number of female business owners. Government data from 7,800 small businesses found that in 2023, only 15% were owned or led by women, a drop from 18% in 2022 and 19% in 2021.

When securing funds for their ventures, the majority of women surveyed depended on personal savings, which accounted for 65%. Alternatively, a percentage sought financial support from family and friends, while 11% participated in small business competitions.

Mike Crane, Director of Small Business Insurance at AXA UK, explained: “We want to make sure everyone with a brilliant business plan has the opportunity to make their dreams a reality.

“For those just setting out on their journey, the Startup Angel competition offers an injection of much-needed funding to get them started plus support from some of the country’s best entrepreneurs who’ve walked the walk themselves and can offer expert guidance.”

In spite of challenges, an overwhelming 90% of the women polled said they would definitely encourage other women to start their own businesses. Approximately half cited increased flexibility and more time with family as a result of entrepreneurship, and 43% viewed it as a chance to be a positive role model for their children.

To overcome any roadblocks, numerous emphasised the value of setting boundaries to maintain a healthy work-life balance. As well as forming a supportive network and prioritising their mental health and self-care.

Crane concluded by saying: “There’s a multitude of positive ways in which running a business has been transformative for those who have taken the plunge.

“The Startup Angel competition could be the first stepping stone for a budding entrepreneur to take that next step and be their own boss.”