Women find it harder to access start-up funding

22 Jun 2018

Access to finance is a challenge faced by many entrepreneurs. However, according to a new report, the struggle is all the more real for women, as businesses with all-male teams are four times more likely to receive investment.

A recent Financial Times report, which examines the barriers preventing women from securing start-up funding, shows that despite the fact that no significant performance differences were cited between companies headed by women versus those headed by men, there appears to be an “unconscious bias” across the “holders of capital” which operate within “deeply-entrenched male networks.”

“The situation puts unique pressures on female entrepreneurs, making it tougher to hire staff, rent office space and work reasonable hours.” This, the report says, is leaving women entrepreneurs less likely than men to have more than two employees and more likely to work late into the night.

According to a separate survey, female entrepreneurs are being deterred from putting plans in place to raise capital due to “disheartening fundraising experiences” which are leaving female owned businesses "bootstrapped from day one."

The global survey of 2,700 people found that a fifth of female entrepreneurs had no plans to raise capital. This is compared with only 3 per cent of male entrepreneurs.

Whilst efforts are being put in place to address the gender disparity, there is still “a lot of talk and not a lot of action.”

From our work with startups across a range of sectors, we are seeing more and more that UK entrepreneurs are turning away from the traditional methods of lending and seeking alternative funding to sustain and drive growth.

For more information about the range of finance options available to you and the best approach for your entrepreneurial business in sourcing capital and restructuring debt finance, speak to Simon Belton at our partner business BM Structured Finance, or your usual Beavis Morgan Partner

We work with you to match the most suitable products suited to your individual circumstance and ensure compatibility and satisfaction, thereby enhancing your business’ cash flow liquidity and facilitating maximum growth.