The Women-Led High Growth Enterprises Taskforce report calls for further investment in women-led ventures to further the UK’s ambitions to become a technology powerhouse by 2030.
As part of the reportThe task force identified that 82% of high-growth companies had all-male founding teams, compared to only 18% of high-growth companies whose founding team included at least one woman. did.
The Women-Led High Growth Enterprises Taskforce is chaired by Anne Boden, founder of Starling Bank. Established in 2022, the taskforce aims to identify areas for action to increase the number of women starting high-growth companies, particularly in regions outside of London.
Mr Bowden said the UK’s aim was to put women “front and center in the aspirations of a tech powerhouse”.
“We are effectively starting this race with one hand tied behind our backs, because women have unique skills, aptitudes and interests that give British PLCs an edge. ” Borden added.
The report found that estimates of the size of women-led high-growth companies vary widely depending on the definition of “high-growth company” used. This number ranges from 183 to 3,579 for high-growth companies founded by all women and 267 to 3,404 for high-growth companies founded by at least one woman. .
The task force identified access to capital as one of the most “persistent barriers” to progress for women entrepreneurs. Despite several efforts to improve women’s prospects, the task force said not much progress had been made.
For every £1 invested in equity in the UK, just 2p goes into companies entirely founded by women, with no improvement over the past decade. The task force identified that fewer women apply for funding, are less likely to receive funding when they do, and receive “significantly less than men”.
Borden emphasized that building on the task force’s work will benefit everyone, regardless of gender.
“The timing is right, the opportunity is there, and so is the will to help women entrepreneurs successfully grow truly exceptional high-growth businesses,” said Borden.
Women-led ventures become ‘key’ driver of UK economy
The taskforce said high-growth businesses were a key driver of Britain’s economy and its future as a world leader. Despite accounting for only 1.6% of UK businesses, high-growth companies account for £160bn ($202bn) in turnover, which equates to 4.5% of UK businesses’ total turnover. .
The taskforce highlighted the vital role of women entrepreneurs in driving the UK towards its goal of becoming a technology superpower by 2030. international technology strategy. Prioritizing key technologies such as artificial intelligence (AI) and semiconductors, he focuses on fostering high-growth businesses and promoting diversity in his STEM fields.
The report highlighted that if women started and scaled up businesses at the same rate as men, £250 billion ($316 billion) could be added to the UK economy. Developing a strategy to achieve this value is a “clear positive for the UK”.
“We know that women have the skills and ambition to run successful businesses and we want to give them every opportunity to do so. We want to harness this untapped potential to boost the UK economy. It’s extremely important for everyone to take advantage of this,” Caulfield said.
The task force emphasized that while the value of high-growth companies is clear, the underrepresentation of women is a missed opportunity to significantly increase economic value. This goes hand in hand with the social value and innovation that high-growth companies bring, as well as the benefits of increased diversity.
Task Force Recommendations for Women-led Growth
The task force provided a range of opportunities to address disparities, including collecting data on the role of founders and promoting diversity in line with initiatives such as the Investing in Women Code.
The task force also advocated increasing diversity in senior investment roles and increasing sign-up to the Code. They supported regulatory changes, improved access for women entrepreneurs outside of London and proposed initiatives to inspire future women entrepreneurs.
Chief Executive Officer Chek Warner said: “If we don’t urgently address this lack of diversity at decision-making level, we are undermining the huge potential of venture capital and technology to drive wealth creation, economic growth and development in the UK. It’s going to be a struggle to perform.” Co-founder and task force member of Ada Ventures and Diversity Venture Capital.
Importantly, the task force also emphasized the need for collective action to support women founders and highlighted areas for research.
news Followed A report published in December by the Royal Academy of Engineering found that 7.5% of deep tech companies in the UK were founded by all-female teams.
of The current state of UK deep tech The report found that of 3,462 companies focused on emerging technologies, more than 77% had all-male founding teams.
Want more technology news?
Register for weekly technical briefings.