Female Founder UK welcomes Budget support for women in business
Chancellor John Healey’s Budget commitment to double British Business Bank backing for women-led investment funds to £200 million, alongside a new scale-up programme for female founders has been welcomed by Female Founder UK the official trademarked brand for women in business across the country.
However, Max Freer says there is still much more to do to support women growing businesses across the country.
Previously, the Government had committed £100 million, so the £200m pledged today represents double what had already been committed.
This investment capital will be channelled through funds rather than £200 million to be paid in grants directly to female business owners – and details on eligibility, launch dates, the scale-up programme and how founders can access it are yet to be revealed.
Max Freer, founder of Female Founder UK, which was set up on Teesside and is now touring the UK to meet women in business and find out what they need to succeed, says this is a “meaningful step” – but more needs to be done – and its reach may be too narrow.
“It is not enough by itself, since we know female founded businesses receive only 2% of venture-capital investment – and when you consider £310bn could be added to the UK economy if women were funded in the same way as their male counterparts in business,” Max said.
“We need to see more details around which women will be able to access a slice of this £200m and what this support or the programmes it will fund will look like.
“Fund investment generally benefits high-growth, equity-ready companies, not the very many female-owned businesses who are sole traders, local retailers and professional-services firms like the women we have been meeting.
“It will be interesting to see the eventual allocation to individual female-led companies.”
Max also adds finance is only part of the solution female founders need to succeed.
“As Female Founder UK discovering through our conversations across Britain, women in business also report weaker access to investor networks, mentoring, procurement opportunities and the wellbeing support needed to succeed in business,” she said.
“Women often go into business when they are at some kind of crossroads in their lives or leave corporate jobs to start up their own companies when burnout hits, or the realities of the corporate world are no longer compatible with other demands on their lives.
“Women require more holistic support that goes beyond just finance, as they make the transition from working in a corporate role or going straight from education into running a business, with the wide-ranging roles that entails; from sales and marketing through to accountancy and administration.”
Max also called for accountability around the £200m pledged, with a need for measurable targets covering money invested, the number and diversity of founders reached, regional distribution, follow-on funding and business outcomes.
“It is great to see targeted action, which could work well if it is properly managed and evaluated and is able to support female founders at all ages and stages, whether they are sole traders operating below the VAT threshold or investment ready corporations,” she said.
“Any action from Government that shines a spotlight on female founders and offers support is welcome and could potentially catalyse women seeking scale-up equity – but it could be too limited to constitute comprehensive support for female business owners generally.”
To go far enough, the newly announced female founder fund from John Healey would need to provide accessible loans or grants for smaller firms, nationwide mentoring and investment-readiness support, greater procurement access, and transparent outcome targets.
“Something like this, which would broadly match recommendations previously made by Parliament’s Women and Equalities Committee, would be greatly appreciated by the female founders we are talking to across the UK,” Max said.
Female Founder UK is hosting an event in Manchester on November 13 at 10.30am at NatWest Accelerator, Manchester.
Max Freer and Sarah Walker and Sarah Dale of SASS media Ltd, Female Founder UK’s official media partner, will be talking to women at the event to get their views on the support they need to succeed.
They will also be explaining how Female Founder UK’s support with visibility, validation and recognition can help women in business.
To get a ticket, visit Eventbrite at https://www.eventbrite.co.uk/o/20224002933