Businesses led by women play a vital role in the UK economy, but a lack of access to funding is a significant hurdle in their attempts to grow, innovate and create jobs.
We commissioned research that suggested nearly half (47%) of female business leaders in the UK plan to expand next year domestically or internationally – but one in ten said securing the financial support they need is the number one challenge they face.
Our research also showed that a fifth of businesses surveyed had either delayed or cancelled business plans as they couldn’t access the right finance.
This gender finance gap is not just anecdotal – it’s a real issue that impacts the growth potential of female entrepreneurs in the UK.
A report (opens in new window) by the British Business Bank, a government-owned economic development bank, found that for every £100 of equity funding in the country, less than 2% goes to women-founded businesses.
One reason for this is perception bias. Women are often viewed as more risk averse and less likely to scale their business. That’s where we come in.
To help address the finance barrier, at HSBC UK we’ve launched the £250 million (US$325 million) Women’s Business Growth Initiative (opens in new window) – designed to unlock opportunities for UK-based businesses with a woman founder, owner, CEO or CFO.
We know that different companies have different needs, but lack of access to international markets is seen as a common problem.
Our financial expertise and global network can help to break down the barriers that female entrepreneurs face. We can give them access to new markets in Asia, the Middle East and the US, which will make their businesses more robust, help them grow more quickly – and create a stronger economy.
We’re also launching additional business support measures. We’re doing this as we know that women in business often feel isolated – and that one in five of them don’t have anyone to talk to or turn to when they’re faced with a challenge.
We’re building networks and communities and running a series of growth masterclasses – all designed to unlock opportunities for business owners. We’ll also provide access to relevant HSBC research – and recognise success through a new annual awards programme.
Without access to funding, we’re holding women-led businesses back. We know that if women started and scaled businesses at the same rate as men, there would be a potential £250 billion boost to the UK economy, so why wouldn’t we want to do that?
