Source · Select Committees · Women and Equalities Committee
Recommendation 21
21
Accepted
Significant gap in support for female entrepreneurs scaling businesses due to lack of capital.
Conclusion
There is a clear gap in support for female entrepreneurs who wish to scale their business or even to make it sustainable, particularly those whose businesses do not fall within those sectors of the economy considered ‘high growth’. We believe the Invest in Women Taskforce is an appropriate vehicle to deliver such support but it is hampered by a lack of capital in its fund of funds. (Conclusion, Paragraph 86)
Government Response Summary
The government acknowledged the value of unlocking potential and detailed existing initiatives and programmes, including a £100 million expansion (of an unspecified fund, possibly related to the British Business Bank), that aim to support female entrepreneurs and address access to finance barriers.
Government Response
Accepted
HM Government
Accepted
Government agrees in the value of unlocking the potential of people and place, so that no matter who you are or where you live impacts your business growth. This is why we are proud to work in partnership with the British Business Bank as well as Metro Mayors who share this mission. Addressing structural access to finance barriers faced by entrepreneurs of all backgrounds across the UK is a key element of the Bank’s strategy. Announced in the Industrial Strategy, Government has designed a series of investment partnerships, giving city regions and clusters the expertise and catalytic financing to secure private investment and to deliver Mayors’ Local Growth Plans. This includes funding for Growth Hubs and the Bank’s new programme to support clusters of innovation which will coordinate investment-readiness programmes, strengthen financial networks, and connect high-potential firms in the IS-8 to investors in 10 city regions. This will be underpinned by a £100 million expansion of the Bank’s Nations and Regions Investment Fund to back businesses across the UK. Government will continue to work with Metro Mayors as they set regional economic strategies that prioritise innovation, enterprise, and inclusive growth. We will seek to support Metro Mayors as they create a supportive environment for startups and scale-ups as well as to unlock funding streams and make capital more accessible for all entrepreneurs. In addition, there are already a number of specific Government initiatives to back female founders across sectors and stages. This includes the recently launched UK Export Finance Female Founder Export Accelerator, the Women’s International Networking Programme, WAVE (Women Advancing Venture and Entrepreneurship) programme, and Innovate UK’s Women in Innovation Awards. The Invest in Women Hub, an independent website supported by the Department for Business and Trade, also offers resources including free mentorship, networks, and expert support to help women start, grow, and scale their businesses. The British Business Bank’s Investor Pathways Capital initiative will also unlock potential by reducing the barriers to entry for first-time fund managers and encouraging more talented investors across the UK to start venture funds. As part of the commitment to widening access, the initiative will target at least 50% of investment going to female fund managers that meet the access to capital requirements.