Source · Select Committees · Women and Equalities Committee
8th Report - Female entrepreneurship
Women and Equalities Committee
HC 711
Published 22 October 2025
Recommendations
1
Accepted
Require venture capital firms to increase the proportion of women on investment committees.
Recommendation
It should be a concern to all that a tiny fraction of venture capital investment goes to supporting women-led businesses. Despite numerous reviews and initiatives this situation is getting worse not better. Venture capital firms must do more to challenge …
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Government Response Summary
The government accepts the recommendation, outlining new specific actions through the British Business Bank's Strategic Plan. These include launching the £400m Investor Pathways programme, expanding support to diverse angel networks with new Angel Syndicate Support and Embracing Diversity programmes, and strengthening data collection to promote transparency.
Government Equalities Office
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4
Acknowledged
Require British Business Bank to set target to increase equity finance for female entrepreneurs to 10%.
Recommendation
We recommend that the British Business Bank should: • have a fifth strategic objective, to ensure that equity finance to female entrepreneurs in the UK increases from 2% to 10% by 2030; • set itself the target of ensuring that …
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Government Response Summary
The government agrees with the committee's recommendations for the British Business Bank but does not commit to immediate changes, stating it will not rule out interventions in the future if investment in female entrepreneurs does not improve.
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6
Accepted in Part
Require British Business Bank to mandate data on equitable investment decisions for female-led businesses.
Recommendation
In the immediate term, the British Business Bank must take more of an interest in whom its funding supports. Venture capital firms and angel investors that benefit from public funding should be required to demonstrate gender-equitable investment decisions. The British …
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Government Response Summary
The government states the British Business Bank's new Strategic Plan emphasizes diversity and inclusion, and the Bank already strengthens data collection and encourages responsible investment practices. It also highlights existing initiatives like Start Up Loans and the new Investor Pathways Capital initiative to support diverse founders and decision-makers.
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7
Accepted
Prepare Government to intervene on gender quotas if female entrepreneur investment does not improve.
Recommendation
Wo do not support mandating gender quotas on investment committees at this stage, as measures to improve transparency and increased incentives to change behaviour should be given time to have an effect; but the Government should not rule out intervention …
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Government Response Summary
The government agrees on supporting women-led businesses and highlights its current strategies, including the new British Business Bank £400m Investor Pathways scheme, to back under-represented entrepreneurs and foster an action-based approach through initiatives like the Invest in Women Taskforce.
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11
Rejected
Require Government to develop and publish an ambitious strategy for advancing female entrepreneurship.
Recommendation
The Government should develop and publish an ambitious strategy for advancing female entrepreneurship to sit alongside and complement the existing Industrial Strategy and SME Strategy. This strategy should be published within 12 months. It should be developed in consultation with …
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Government Response Summary
The government rejects the recommendation for a separate strategy for female entrepreneurship, stating they believe collective commitment and embedding women-led businesses into mainstream policies and existing strategies is more effective. They cite various existing initiatives and programmes that support female-led businesses.
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13
Accepted in Part
Set a 10% target for public contracts awarded to female-led businesses by Parliament end.
Recommendation
The Government should set itself a target for the proportion of public contracts awarded to female-led businesses similar to initiatives in Canada, the US and Nordic countries. Given the low base we suggest a target of at least 10% by …
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Government Response Summary
The government accepts in part, stating that central government departments must set three-year targets for direct spend with SMEs and two-year targets for VCSEs, which they claim will benefit female-led businesses. However, they do not commit to a specific target for female-led businesses as recommended.
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16
Deferred
Ringfence 30% of Regional Angel Programme funding for female investors and businesses; publish data.
Recommendation
We call on the British Business Bank to ringfence a minimum of 30% of Regional Angel Programme funding for supporting female angel investors and investment in female-led businesses across the regions and to publish data on take-up by gender. The …
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Government Response Summary
The government deflects the specific recommendation for the British Business Bank's Regional Angel Programme, instead highlighting the recently announced UKEF Female Founder Export Accelerator, which aims to support women-led businesses in scaling internationally through workshops, mentoring, and funding pathways.
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17
Accepted in Part
Awareness and take-up of SEIS/EIS tax incentives remain low among women investors.
Recommendation
Tax incentives such as SEIS and EIS have proven effective in stimulating investment. Yet awareness, accessibility and take-up remain lower among women investors and outside of the South East. To achieve meaningful change, government and industry must work together to …
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Government Response Summary
The government is working with the Invest in Women Taskforce to amplify awareness of EIS/SEIS schemes to eligible women-led businesses. Additionally, it has launched a Call for Evidence on the effectiveness of existing tax incentives and the wider tax system for businesses, which will close in February 2026.
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18
Deferred
Launch a Female Enterprise Investment Scheme with higher incentives for women-led businesses.
Recommendation
The Government should launch a Female Enterprise Investment Scheme to sit alongside the EIS and SEIS, with higher incentives to specifically drive investment in women-led businesses. People who invest in women-led businesses should receive greater benefits. Existing biases in the …
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Government Response Summary
The government supports the goal of promoting investment in women-led businesses but believes this is best achieved by amplifying existing industry-led initiatives like the Invest in Women Taskforce, rather than launching a new Female Enterprise Investment Scheme.
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19
Rejected
Remove the Enterprise Investment Scheme (EIS) age limit on eligibility entirely.
Recommendation
The Government should remove entirely the age limit on eligibility for the Enterprise Investment Scheme (EIS). The existing seven-year threshold does not adequately reflect the structural and social challenges faced by many 55 female founders, including longer growth trajectories typical …
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Government Response Summary
The government rejected the recommendation, explaining that the current 7-year age limit for EIS effectively targets early-stage, high-risk companies, and expanding it would risk displacing investment from these companies.
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20
Deferred
Launch campaign to raise awareness of SEIS, EIS, and FEIS among investors and entrepreneurs.
Recommendation
The government should launch a campaign to increase awareness of the SEIS, EIS and proposed FEIS schemes among investors and female entrepreneurs. The campaign should be appropriately tailored to ensure underrepresented groups of women are aware of the schemes. The …
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Government Response Summary
The government's response discusses a review of parental leave and pay for self-employed parents, completely unrelated to the recommendation to launch a campaign increasing awareness of investment schemes and collect associated data.
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22
Accepted
Urge institutional investors to increase support for female-led businesses and the Invest in Women Taskforce.
Recommendation
Institutional investors, including major banks and pension funds, are a key component of the funding landscape. We call on them to do much more to support female-led businesses, including through supporting the Invest in Women Taskforce. (Recommendation, Paragraph 87)
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Government Response Summary
The government accepts this recommendation, stating it is addressing the issue through the Mansion House Accord and British Growth Partnership, coordinating with the Invest in Women Taskforce, and securing commitments from institutional investors to the Women Backing Women Fund of Funds. They are actively working to bring additional Mansion House signatories on board in 2026.
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23
Deferred
Require Government update on steps to secure investor support for the Invest in Women Taskforce.
Recommendation
The Government should update us in its response to this Report on the steps it is taking through its convening powers to get those investors, particularly the signatories of the Mansion House Accord, to support the Taskforce. (Recommendation, Paragraph 88) …
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Government Response Summary
The government's response details its plans for childcare provision and reform, including a Department for Education review, Tax-Free Childcare, and the National Wraparound Childcare programme, which is unrelated to the recommendation about convening investors to support the Taskforce.
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26
Accepted
Establish a large-scale nationwide programme supporting female founders to sustain and scale businesses.
Recommendation
As part of a new Strategy for Female Entrepreneurship, the Government should establish a large-scale nationwide programme dedicated to supporting female founders across all sectors to sustain and scale up their businesses. The programme should offer mentorship, sponsorship, coaching and …
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Government Response Summary
The government agrees on the value of supporting female founders and works with the British Business Bank and Metro Mayors, highlighting existing and new initiatives like the UKEF Female Founder Export Accelerator and the Investor Pathways Capital initiative, which targets at least 50% of investment to female fund managers, along with a £100 million expansion of the Bank's regional funds.
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27
Accepted
Develop a programme promoting targeted, female-focused accelerators in underrepresented high-growth sectors.
Recommendation
The Government should develop a specific programme of promoting targeted, female-focused accelerators in high growth sectors where women are underrepresented. Such a measure was noticeably missing from the Industrial Strategy. (Recommendation, Paragraph 111)
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Government Response Summary
The government has accepted the recommendation, announcing the launch of the UKEF Female Founder Export Accelerator in partnership with Lifted Ventures, commencing in January 2026. This programme is specifically designed to support women-led businesses in high-growth sectors to scale internationally.
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28
Accepted
Develop specific entrepreneurial support programmes for women in postgraduate and postdoctoral studies.
Recommendation
Universities are a vital source of innovative start-ups, but evidence to this inquiry suggests women are less likely to take up entrepreneurship courses and/or develop spinouts than their male peers. This is a missed opportunity for growth. The Government should …
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Government Response Summary
The government has accepted the recommendation, outlining new entrepreneurship fellowships, £25 million for doctoral training schemes, a £4.5 million round of Women in Innovation Awards, and specific women-led Discover and ICURe Explore programmes, all designed to support female entrepreneurs in postgraduate and postdoctoral studies.
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29
Accepted in Part
Launch a national campaign highlighting female role models and promoting the Invest in Women Hub.
Recommendation
Alongside a strategy on female entrepreneurship, the Government should launch a national campaign highlighting female role models at all stages of the entrepreneurial journey. It also needs to better promote the Invest in Women Hub. (Recommendation, Paragraph 113) Caregiving and …
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Government Response Summary
The government supports showcasing female role models and promoting the Invest in Women Hub, stating it will achieve this by amplifying industry-led initiatives and coordinating efforts with existing taskforces and the Hub, rather than launching its own national campaign.
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30
Accepted
Review maternity legislation for self-employed women and tailor policies to support entrepreneurial aspirations.
Recommendation
Self-employed women (and those employed via their small business) are poorly served by the UK’s parental leave arrangements. As part of its Parental Leave and Pay Review, the Government should review legislation 57 pertaining to maternity through the lens of …
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Government Response Summary
The government confirms its Parental Leave and Pay review, launched on 1 July 2025 and running for 18 months, will consider parental leave and pay for all parents, including the self-employed, and assess fairness and equality across employment statuses, directly addressing the recommendation.
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31
Deferred
Increase Maternity Allowance for self-employed mothers and permit more Keeping In Touch days.
Recommendation
We acknowledge the Government’s desire to protect a mother’s time with her baby. As such, we recommend that Maternity Allowance is increased for self-employed mothers in the first six weeks to bring it closer in line with Statutory Maternity Pay. …
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Government Response Summary
The government defers action by stating that the recommendation will be considered as part of the Parental Leave and Pay review, which launched in July 2025 and is expected to run for 18 months. Decisions on reform will depend on the review's findings and other factors.
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32
Deferred
Reclassify Maternity Allowance as earned income for Universal Credit to support self-employed women.
Recommendation
The Department for Work and Pensions should review funding for Universal Credit and reclassify Maternity Allowance so that it is not treated as “unearned income” for the purposes of Universal Credit, so that when self-employed women access it, their Universal …
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Government Response Summary
The government deferred the recommendation to reclassify Maternity Allowance for Universal Credit purposes, stating it is within the scope of the Parental Leave and Pay review. The response also explained that Maternity Allowance is currently treated as unearned income due to the means-tested nature of Universal Credit, a policy upheld by court judgments.
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33
Deferred
Reform to paternity and shared parental leave schemes is long overdue.
Recommendation
We reiterate the conclusions from our report on paternity and shared parental leave. Improved paternity leave and pay and reform to the shared parental scheme is long overdue and would directly benefit female entrepreneurs. (Recommendation, Paragraph 129)
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Government Response Summary
The government has deferred action on improving paternity leave and pay and reforming the shared parental scheme, stating these are in scope of a parental leave review launched on 1 July, expected to run for 18 months, after which a roadmap for potential reforms will be developed.
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36
Deferred
Childcare availability and affordability are crucial for increasing female entrepreneurship rates.
Recommendation
The availability and affordability of childcare must be addressed to increase entrepreneurship rates among women. Making childcare more easily available and affordable would benefit the founding, performance and persistence of female-led businesses, while being vital for reconciling work and family …
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Government Response Summary
The government has deferred a comprehensive response, stating the Department for Education will lead a review of childcare provision to simplify the system. The response also highlights existing initiatives like Tax-Free Childcare and the expansion of government-funded childcare, and mentions future plans for nannies will be set out in the coming months.
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37
Accepted in Part
Review adequacy of childcare support for self-employed mothers, including tax deductibility and flexibility.
Recommendation
The Government should undertake a review of the adequacy of existing childcare support for self-employed mothers. That review should consider: the potential merits of making childcare a tax-deductible expense, if only 58 for an initial period; expanding free hours of …
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Government Response Summary
The government confirms the Department for Education will lead a review of childcare provision to simplify the system and highlights existing Tax-Free Childcare (TFC) for self-employed parents. However, it does not explicitly commit the review to the specific considerations for self-employed mothers, such as tax-deductibility or 0-3 month nannying, and states no current plans to regulate nannies.
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40
Accepted
Increase provision of financial and enterprise education in schools, boosting girls' confidence.
Recommendation
The Government should work to increase the provision and relevance of financial and enterprise education in schools and to ensure that it is delivered as a core part of the curriculum. Seeking to increase the financial confidence of girls should …
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Government Response Summary
The government has committed to strengthening financial education in mathematics and citizenship as part of a curriculum review, with a public consultation in 2026, content publication by 2027, and teaching from September 2028. This work will also consider how to increase the financial confidence of girls.
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41
Accepted in Part
Address gender bias in STEM curriculum and increase female role model visibility.
Recommendation
Women and girls remain underrepresented in STEM subjects and less likely to pursue entrepreneurship in this field. The Government and higher education institutes should work to address gender bias in curriculum design in STEM subjects and strive to increase the …
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Government Response Summary
The Department for Education is reforming the curriculum to embed diverse scientists and innovators, addressing gender bias in STEM subjects. The government also points to its partnership with the Tomorrow’s Engineers Code and the long-running STEM Ambassadors programme, which includes 48% women volunteers, to increase role model visibility.
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Conclusions (16)
2
Conclusion
Accepted
The prize of £250 billion plus in potential growth is one that the Government should throw everything it has at pursuing. Current piecemeal initiatives have had little impact, systemic change is required. First and foremost this needs to be led by increasing access to finance for female-founders. Evidence has shown …
Government Response Summary
The government highlights the existing government-led Investing in Women Code as a significant initiative for transparency and accountability, and explains why the FCA does not request reporting from venture capital firms due to proportionality and streamlining plans.
3
Conclusion
Accepted
We welcome new initiatives by the British Business Bank to support more women into venture capital, particularly the commitment that at least 50% of investment from the Investor Pathways Capital initiative will be targeted at female fund managers and the £100 million investment in the Invest in Women Taskforce. However, …
Government Response Summary
The government welcomed the committee's focus, sharing the ambition to improve access to finance for female entrepreneurs, and detailed the British Business Bank's existing initiatives and new Strategic Plan which already embed diversity and inclusion, stating they will continue to work closely with the Bank.
5
Conclusion
Deferred
We do not accept arguments that transparency and accountability in venture capital are too difficult, and neither should the Government. The Financial Conduct Authority should be mandated to require all registered venture capital firms to report on the number and proportion of deals that go to support female-led businesses and …
Government Response Summary
The government deflects the recommendation for the FCA to mandate reporting and levy penalties on venture capital firms, instead highlighting Innovate UK's existing Women in Innovation Programme and its commitment to inclusive innovation.
8
Conclusion
Acknowledged
Innovate UK provides an essential funding stream for mainly male entrepreneurs. Women who seek to access funding from it report their projects being undervalued and subject to biased investment decisions from majority male assessment panels. Match funding requirements exclude women who already struggle to access investment while application processes are …
Government Response Summary
The government acknowledges the conclusion by highlighting Innovate UK's existing Women in Innovation Programme, its past successes, and claiming equal success rates for applications. It also notes new actions being taken, such as establishing a Community Forum, launching an assessor recruitment campaign, and exploring ways to help investors identify women-led businesses.
9
Conclusion
Acknowledged
Public funding structures should challenge gender bias and not reinforce it. Innovate UK should: • ringfence a minimum of 30% of its funding for female entrepreneurs with year on year increases to 40% by 2030; 53 • in the short term lower leverage ratios and reduce match funding requirements for …
Government Response Summary
The government welcomes the recommendations and highlights the British Business Bank's new Strategic Plan and existing programmes, such as Start Up Loans, which embed diversity and inclusion to support female entrepreneurs. It commits to continue working with partners to build a more inclusive finance environment but does not explicitly address the specific Innovate UK actions.
10
Conclusion
Rejected
The Industrial Strategy and SME Strategy were ideal opportunities for the Government to launch the systemic change required to unlock the enormous potential that female-led businesses can offer. It is deeply disappointing that neither strategy contained any specific measures to support female-led businesses. (Conclusion, Paragraph 54)
Government Response Summary
The government rejects the conclusion, stating that women-led businesses are central to the economy and their interests are embedded into mainstream policies and existing strategies. They emphasize that women were included in the SME Strategy through policies for under-represented entrepreneurs and the British Business Bank’s Strategic Plan.
12
Conclusion
Deferred
The strategy should be overseen by a dedicated Minister and Office within the Department for Business and Trade akin to the US Office of Women’s Business Ownership, with an assigned budget and responsibility for driving implementation of the strategy, and ensuring accountability and transparency through data collection. (Recommendation, Paragraph 56)
Government Response Summary
The government deflects the recommendation for a dedicated Minister and Office to oversee strategy, instead mentioning a Call for Evidence on tax incentives for business founders, which is unrelated to the proposed governance structure.
14
Conclusion
Accepted
Angel investment is a vital lifeline for early-stage female-led businesses, particularly in sectors where institutional funding remains elusive. While recent growth in angel investment for women-led ventures is encouraging, the gender imbalance among angel investors continues to limit progress. Increasing the proportion of women in angel networks directly correlates with …
Government Response Summary
The government acknowledges the role of institutional investors and is addressing investment gaps through initiatives like the Mansion House Accord and the British Growth Partnership. It highlights the Invest in Women Taskforce and the Women Backing Women Fund of Funds, which are channeling institutional capital from various partners into female-led venture funds and businesses.
15
Conclusion
Accepted
We welcome the increase in funding to the British Business Bank’s Regional Angel Programme. However, we are not reassured that a sufficient proportion of the funding will go to addressing the market failure in support for female entrepreneurs and we are concerned about transparency in who receives funding from it. …
Government Response Summary
The government agrees with unlocking potential and describes a £100 million expansion of the British Business Bank's innovation clusters program, alongside other initiatives like the UKEF Female Founder Export Accelerator. Critically, the British Business Bank's Investor Pathways Capital initiative will target at least 50% of its investment towards female fund managers.
21
Conclusion
Accepted
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 …
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.
24
Conclusion
Accepted
There is a lack of pitch events, accelerators, networks and mentorship opportunities for female founders. Many that do exist tend to be focused on the ‘Golden Triangle’ of Cambridge, Oxford and London, limiting the growth potential of businesses in other regions. This disproportionately affects women, who are more likely to …
Government Response Summary
The government has committed to strengthening financial education in the curriculum, with revised content to be taught from September 2028, to increase financial confidence in girls and enhance future female entrepreneurship.
25
Conclusion
Deferred
We received compelling evidence on the value of tailored mentorship programmes and support both for investors and founders. More regional initiatives are being developed but, while these are extremely welcome, 56 we are concerned that they are too small in scale to deliver the growth the country needs. A coordinated, …
Government Response Summary
The government's response details reforms to the STEM curriculum and highlights existing STEM initiatives like the Tomorrow’s Engineers Code and STEM Ambassadors programme, which is unrelated to the recommendation for a national mentorship programme for female founders and investors.
34
Conclusion
Acknowledged
Caregiving responsibilities and the cost and availability of childcare remain significant, yet often overlooked, barriers to female entrepreneurship. Women are disproportionately affected by the demands of caregiving, which limits their time, income, and ability to scale their businesses, particularly during critical growth phases. (Conclusion, Paragraph 135)
Government Response Summary
The government acknowledged the conclusion regarding caregiving responsibilities and childcare costs as barriers, outlining a forthcoming Department for Education review of childcare provision, existing schemes like Tax-Free Childcare, and the National Wraparound Childcare program, while also mentioning future plans for nannies.
35
Conclusion
Not Addressed
Current tax and support systems are largely designed for traditional employment models and fail to accommodate the realities of self- employment and entrepreneurship. This not only places an unfair financial burden on entrepreneurial mothers but also reinforces outdated assumptions about gender roles and business viability. (Conclusion, Paragraph 136)
Government Response Summary
The government's response did not directly address the conclusion regarding the design of tax and support systems for self-employment and entrepreneurship, instead focusing primarily on existing and future childcare provisions.
38
Conclusion
Accepted
Young people in the UK show strong entrepreneurial ambition, yet a lack of financial education and awareness hinders their ability to turn aspirations into viable businesses. While initiatives like Young Enterprise and Talk Learn Do demonstrate the positive impact of financial literacy, there remains a significant gap in provision in …
Government Response Summary
The government commits to strengthening financial education in the curriculum with a revised content plan for 2027 and implementation by September 2028, directly addressing the identified gaps and need for earlier provision to build foundational skills and confidence.
39
Conclusion
Accepted
This gap disproportionately affects young women, who will face greater barriers in accessing networks, mentorship, and funding, and whose confidence drops as they progress through education. Embedding enterprise and financial literacy skills into the curriculum is essential to creating a diverse and capable pipeline of future entrepreneurs. (Conclusion, Paragraph 148)
Government Response Summary
The government is committed to strengthening financial education in the curriculum, with revised content planned for publication by 2027 and teaching from September 2028, directly addressing the identified importance of embedding these skills.