More to do to maximise the talent of female entrepreneurs
Inspiration
In a nutshell…
- The growth of new female-led businesses is outstripping that of male-led companies for the first time, but founders need more support with accessing funding.
- A special series by Harper James highlights the inspiring stories of six female founders who share their challenges, experience in overcoming them, and advice for other founders.
However you feel about how International Women’s Day (IWD) unfolded this year, the campaign theme for 2022, #breakthebias is a long-term message and mission. There is so much more to do. While accepting that progress doesn’t happen in a straight line or overnight, it can be disheartening to see some measures backslide. But there are signs of change. A special series by Harper James shares the inspiring stories of female founders in the wake of new figures that show a record proportion of start-ups are now being founded by women.
The founders share the secrets behind their success, outlining the challenges they face in growing their businesses and explaining how they have overcome them.
Their stories form part of a special series of interviews compiled by Harper James, a modern law firm purpose built to support entrepreneurial businesses from start-up to scale-up and beyond.
The government commissioned Rose Review found the growth of new female-led businesses is outstripping that of male-led companies for the first time.
More than 140,000 companies were established by all-women teams last year and the figure is growing by a third each year, with particularly strong growth in female-led start-ups among those aged 16 to 25.
However, despite these positive signs, female founders are still often struggling to raise funds to grow their businesses.
According to one report by the Harvard Business Review, which was released last year, only one in five businesses with revenue of £1m or more is women-owned.
The report also found that in 2019, 2.8% of funding went to women-led start-ups, but in 2020, that fell to 2.3%. Figures for 2021 are yet to be released.
Kate Wright, Head of Client Services at Harper James, said the figures underline how much more needs to be done in this area.
She said: “It’s fantastic to see record numbers of women setting up businesses. But the reality is that many women still face huge challenges in growing their businesses and often struggle to access the kind of support available to male counterparts. More women’s voices should be heard in the business world.
“International Women’s Day is a great moment to celebrate the successes but also to be open about how much we need to do to maximise the huge talent many female entrepreneurs have.”
Kate Wright, Head of Client Services at Harper JamesOffering her advice to female entrepreneurs, Jas Bhogal, Corporate Partner at Harper James, said: “Believe in yourself – you can achieve whatever you set your mind to. Make your business investable by preparing very clear and detailed business plans based on reasonable growth and projections and include rationale for your projections.
“Network with other women who are in similar positions as they may be able to offer further guidance on how they have overcome obstacles. I have a number of companies I work for now which have female founders and they are securing investment which is a positive sign.”
Among those to contribute to the Harper James report is Hawaa Budraa and her business Co-Founder Gina Dorodvand. They recently appeared on Dragons' Den looking for funding for their dental app uunn, but walked away from an offer of investment, because it wasn’t right for their business.
Hawaa advised: “Try not to focus too much on the fact that the entrepreneurial space isn't always geared towards backing female entrepreneurs.
"Focus on building your business and creating the proof points of a healthy business that is either breaking even or in positive cash flow."
Hawaa Budraa, Co-Founder of Uunn“Keep an eye out for individuals (either angels or small business owners) that understand you are looking for SEIS investments. Try and be SEIS assured, so that when you are looking for funds you can access these types of investors and capital.
“Build off this capital and you'll either be ready for more from the same investors and their network to keep supporting your growth, or be an investable option for VCs down the line.
“The government should change the narrative and promote more stories of female businesses, so it is less unknown in the VC space. This will help give more confidence on placing money in these businesses.”
Fellow Dragons’ Den hopeful Rebecca Sloan also recently wowed the investors, securing £50,000 investment from Steven Bartlett for her start-up PiddlePatch.
Rebecca said: “Surround yourself with likeminded, and ambitious individuals, who will push you and encourage you to work towards your goals. Figure out ways to outsource work so you aren’t doing everything yourself. This one can be challenging but will help immensely. Find the right people and keep them. It can be really difficult to find the right people, so hold on to them when you do.
“The government should invest more in educating and empowering girls and young women in the practical knowledge of how to develop and evaluate an idea, identify the resources and support they need to make it happen, understand the finances behind it, and act on it.
“For many, the current system is about passing tests instead of taking risks and understanding opportunities. A lot of talent and experience goes unrecognised because we do not do enough to empower young people, and especially females, to recognise their own strengths, abilities, and how to market them to others and create value. Providing more mentoring and grants for women and new ideas, and support infrastructure and access to resources and knowledge would also help.”
Next steps…
- Visit Harper James to read the full interview series.
- Learn about different types of discrimination, including gender bias.
- Visit the International Women’s Day website to see how they continue the theme throughout the year.