Alarming fall in female entrepreneurship in 80% of largest UK cities, new data reveals

Number of Female-Owned Companies Plummets in 8/10 of the UK’s Largest Cities 

Bristol and Leicester experienced the largest reduction in their proportion of female founders, with 57% and 56% fewer women founding businesses last year. Of the 10 largest UK cities, 3/5 have experienced a reduction of over 50%. 

This is despite the government’s ambition to increase the number of female entrepreneurs by almost 600,000 by 2030. This unexpected downturn raises questions about the future of female entrepreneurship and the effectiveness of current initiatives to support women. 

A 57% Decrease See’s Bristol Have the Sharpest Decline in Female Founders 

Bristol’s strong support network, sustainable business practices, and economic resilience regularly rank it as one of the best places to start a business in the UK. Centre for Cities counts Bristol as one of the UK’s strongest entrepreneurial performers, ranking it first in the country for productivity. The city also has the highest share of jobs in knowledge service activities. 

However, despite an 8% increase in total business registrations in 2024, the number of new female founders in Bristol almost halved last year. This decline in Bristol is stark, but it highlights a broader challenge facing women in business in the UK. 

Barriers to growth for women entrepreneurs: Lack of Representation, the Pay Gap & Funding 

Lack of representation and gender stereotypes can make it less likely for women to attempt starting a business in the first place, and the decline of women-registered companies in eight of the UK’s ten largest cities reveals complex systemic issues and societal pressures. 

Fewer women apply for funding. When they do, they are less likely to receive it and tend to receive significantly less than men. Women are underrepresented in venture capital decision-making roles, and a pervasive gender bias exists in the funding landscape because women are often viewed as more risk-averse and less likely to scale. According to a government report, 2p goes to fully female-founded businesses for every £1 of equity investment in the UK, with no improvement in the past decade. 

The gender pay gap is currently at 7% in the UK and is more than double in skilled trades and occupations, at 15.7%. Research shows the ‘motherhood penalty’ makes up 80% of the gender pay gap. The gender pay gap that exists between men and women in their 20s significantly widens when women hit their 30s and start to have children. 

Supporting women in business 

Female entrepreneurs contribute to innovation and job creation, and addressing factors that deter women from entrepreneurship is crucial for economic growth and social progress. 

Make venture capital funding more accessible: 

Building on initiatives like the ‘Women Backing Women Fund’ can help close the funding gap for female entrepreneurs. Expanding funding opportunities specifically aimed at women-led businesses will create a more level playing field and encourage growth. 

Challenge bias in the investment ecosystem:

To make the investment landscape fairer, we need to address the biases that hold women back. Promoting diversity within venture capital firms and encouraging more women to take on investment roles can help create a more balanced and supportive funding environment.

Improve mentoring and networking opportunities:

Supporting female entrepreneurs goes beyond funding. Establishing more mentoring programs and networking events tailored to women can help build confidence, provide strategic guidance, and create valuable connections within the business community. 

Break down gender stereotypes in entrepreneurship:

We need to rethink how we portray women in business, especially to younger generations. Celebrating the achievements of female entrepreneurs and increasing their visibility in education and the media can inspire more women to pursue their ventures. 

It’s crucial to recognise the additional responsibilities many women balance when starting a business. Developing policies that support working mothers and address the gender pay gap will make entrepreneurship a more realistic and rewarding option. 

By openly discussing these findings and actively addressing the issues they reveal, we can pave the way for a more equitable business landscape. 

You can view the full research here:  https://www.instantoffices.com/blog/instant-offices-news/uk-cities-decline-female-founders/