Closing the gap in supporting women’s access to finance
Research shows that although women-led businesses represent a significant and growing market, they are still less likely than their male counterparts to seek external funding and often receive smaller sums when they do. Only one in three entrepreneurs is female and the 2019 Alison Rose Review of Female Entrepreneurship highlighted that up to £250 billion of new value could be added to the UK economy if women started and scaled businesses at the same rate as men.
Insights from research commissioned by providers in the invoice finance sector reiterate the implications of this situation. Female respondents react more positively to invoice finance once they understand it, but awareness levels remain lower than for men. In addition, many women-led businesses express interest in finance to grow, yet fewer have access to core products such as overdrafts or venture capital.
These findings underline a clear challenge for the financial services industry in supporting women with the information, confidence and pathways required to make informed decisions, as well as enabling female voices to be better heard within the industry. UK Finance and industry partners are already taking steps to address this gap. The Investing in Women Code continues to encourage greater transparency and shared practices across financial institutions in how they support women-led businesses. Alongside this, we are creating more opportunities to listen directly to women working in the sector. In September we hosted the well-received Voices of Chance – Women in Invoice Finance event which provided space for women across the industry to discuss barriers, highlight success stories, and explore actions to strengthen support for women in the commercial finance sector and subsequently women-led businesses.
This work is one part of the broader effort across UK Finance and the industry to strengthen support for women in invoice finance and women-led businesses. Insights gathered during the event are now informing work on initiatives that enhance women’s representation and progression within the sector.
