Small businesses are powerful drivers of change, innovation and economic growth. And women business owners play a pivotal role in this.
In a 2019 report, The Alison Rose Review of Female Entrepreneurship found that “up to £250 billion of new value could be added to the UK economy if women started and scaled new businesses at the same rate as UK men.”
Women bring unique strengths to the world of business – they’re often valued for their strong communication skills and creative problem-solving, for instance. Yet, despite the increasing number of female business owners, male founders continue to dominate the entrepreneurial landscape.
Nonetheless, it’s encouraging to read and hear more stories of successful female founders. In this article, the experts at one of the UK’s leading company formation agents, 1st Formations, uncover seven reasons why women are increasingly starting their own businesses.
1. Lack of fulfilment within corporate structures
Many women, after spending time in the corporate world as an employee, come to a point when they question whether its rigid, sometimes military-like structure, aligns with their values and life goals.
It’s no secret that traditional corporate trajectories – not to mention the glass ceiling – often prevent women from progressing and fail to support their personal and professional growth. This can leave them feeling uninspired, especially when managers and organisational structures curtail their potential.
Within individual businesses, workplace culture also plays a role – are these women being celebrated or diminished? The latter is not uncommon, and often prompts women to seek an alternative path of setting up their own company.
2. Changing priorities and values
Women’s values evolve. Their health and wellbeing, family commitments, caregiving responsibilities, and personal fulfilment often take on new levels of importance as they reach different stages of life.
The traditional corporate setup doesn’t always accommodate women’s multifaceted identities: mother, wife, caretaker, career woman, and so on. By owning and running their own business, women have the chance to better balance their career aspirations with their personal life.
3. The search for meaningful work
Ask a female business owner why she left her day job, and she may simply reply that something was missing. This could be a support network, recognition, or a sense of purpose.
A growing number of women have skills or hobbies they can monetise, which can then translate into successful businesses. Entrepreneurship is therefore a logical next chapter in their careers.
This is not only because it gives them a sense of purpose and enjoyment in pursuing their personal passions – it provides an opportunity to contribute meaningfully to society and their communities.
4. Having a competitive advantage in business
Women are naturally talented in problem-solving, building communities, and bringing emotional intelligence into business. Nicola Elliott, co-founder of Neom Luxury Organics, once highlighted in an interview with The Telegraph women’s strengths in understanding consumers and their behaviours.
Such qualities give women a strong edge in entrepreneurship, helping them create businesses that resonate and engage with their target audiences.
5. Financial and economic factors
Let’s be real. The gender pay gap and lack of promotion opportunities are strong push factors for women towards entrepreneurship and financial independence. Job instability due to restructures or redundancies makes business ownership an appealing way for women to take the reigns over their career.
Those facing unemployment or stay-at-home mums are also more likely to seek an additional stream of income. One way to create this is to set up a business as a side hustle, then transition to entrepreneurship once the company is taking off and requires their full-time attention. In fact, this is how many female founders begun their now thriving businesses in the UK.
6. The rise of support networks and funding opportunities
More support programmes, coaching, networks, and small-business grants exist today to help female business leaders succeed. Women are forming organisations dedicated to funding female-led businesses. Take Women in Cloud as an example, co-founded by Chaitra Vedullapalli, which has a mission to give women access to enterprise opportunities and inspire change at policy level.
Female role models, such as Vedullapalli, and their success stories help inform and inspire the next generation of women business owners. And it’s not just stories of what women have accomplished as entrepreneurs that are inspirational. It’s the mistakes they’ve made that are powerful tools for encouraging other women to take risks and forge a career path that aligns with their values and professional goals.
7. The digital space as a facilitator
Remote work and access to new technologies make setting up an online business an option for plenty of aspiring business owners, particularly women.
Firstly, it lets women pursue entrepreneurship with greater flexibility to balance work and family commitments. Female business owners can work from home and manage their schedules as they wish, as well as saving precious time that would otherwise be spent commuting.
Secondly, access to digital resources, such as guides on setting up an ecommerce platform, mean women can upskill themselves and market their products or services online. There’s a wealth of information on the internet for aspiring female entrepreneurs, plus mentorship schemes and networks, as mentioned previously. These create new opportunities for women to set up a business from home and facilitate learning on the job.
Encouraging more women-owned businesses
Yes, there are stories of successful female founders demonstrating resilience and adaptability – often due to a myriad of challenges encountered along the way. However, it’s clear there are still significant barriers to overcome when it comes to female entrepreneurship.
Breaking down biases, increasing support networks (including male allies), improving access to funding, and fostering female entrepreneurial talent are crucial to unlocking the full potential of women in business.
Empowering more women to grow professionally strengthens our communities and benefits the entire economy. So, if you’re an aspiring female entrepreneur with a great business idea, why not take the first step and register a company today? 1st Formations can help by filing all the paperwork on your behalf, so you are ready to trade in as little as 24 hours. Get in touch to find out more.
