techUK submit written evidence on Women and Equalities Committee's inquiry on female entrepreneurship

12 May 2025 12:09 PM

Through this inquiry, MPs on the Women and Equalities Committee (WEC) are investigating the challenges women encounter in entrepreneurship, examining which sectors present the greatest barriers and why.

Download the response here

techUK welcomes this initiative, recognising the urgent need for a comprehensive assessment of how to better support female-led enterprises. This is particularly critical given research indicating that if women started and scaled businesses at the same rate as men, the UK economy could gain an additional £250 billion.

See key points from techUK's response below:

What are the barriers facing women, including specific groups of women such as those from an ethnic minority background, seeking to start and grow successful businesses in the UK?

• Women in the UK face barriers such as access to funding, social capital, networking, role models, mentorship, and societal expectations, with additional challenges for ethnic minority women.
• Women-led businesses face funding disparities despite strong performance, receiving a smaller share of investment capital.
• Access to funding often relies on personal networks, with female founders lacking the same access to high-net-worth individuals.

In which sectors of the economy do women face the greatest barriers to entrepreneurship, why is this, and what could be done to tackle them?

• There is continued gender disparity across the tech sector, with female tech entrepreneurs and founders facing barriers to starting and scaling businesses.
• Women continue to make up a small percentage of IT specialists in the UK, highlighting a missed opportunity to harness the full breadth of talent.
• The Government has acknowledged the importance of expanding the diversity of the talent pool in its AI Opportunities Action Plan.

How can women best be supported to overcome the challenges they face in securing funding to start and grow their businesses?

• To support funding, the government should provide data and evidence with accountability, tailored support, greater use of public-private partnerships, support for angel investment, and better accountability.
• Customised support, including reduced investment thresholds, structured education and mentorship programs can enhance female success rates.
• Tax incentives like SEIS, EIS and VCT remain critical for female entrepreneurs, and the government should promote and share their value.

What examples are there of best practice in supporting female-led entrepreneurship, both in the UK and internationally?

• We emphasise the Investing in Women Code as a key mechanism for driving commitment and accountability.
• The EU’s ESTEAM initiative provides a community to girls and women interested in developing their digital and entrepreneurial competencies.

What steps should the Government take to help support the development of female-led high growth enterprises?

• The UK government must tackle challenges ranging from access to funding, social capital and networking, role models and mentorship and societal and cultural expectations.
• There must be investment into the local ecosystem in accelerators, incubators, networks, advisors and visible role models.

What data exists or is required to track success and monitor progress in female entrepreneurship?

• Data collection must be improved to build a strong evidence base to understand how to support women in starting and growing a business.
• The Gender Index maps the impact of female-led companies on the UK economy and spotlights the gender gap across entrepreneurs.
• The British Business Bank’s Investing in Women Code monitors the share of venture capital and private equity funding directed toward female-led businesses.

techUK look forward to continuing to champion and showcase women tech entrepreneurs and founders, and we call for the UK Government to do the same. You can catch up on recent work to support diversity within the tech sector via our Tech Together campaign.

For more information on this inquiry response, reach out to Mia.

Download the response here