More women than ever are starting new companies in the South West, new research has revealed.
A total of 7,454 companies were established by women in the region last year - a figure that has more than doubled since 2018 - according to the Rose Review Progress Report 2022.
Nationally, more than 140,000 UK firms were founded by all-women teams in 2021 and the figure is growing by a third each year.
The proportion of companies created by young women is growing faster than any other age group, with 16-to-25-year-olds founding more than 14,000 new British businesses in 2021.
Alison Rose, chief executive of NatWest and author of the report, said: “We have seen real progress since 2019. Getting more funding to female entrepreneurs and unlocking their untapped potential continues to be a priority across our industry.
“But women still don’t receive all the support they need and the pandemic risks holding back progress, so we must go further to achieve the goals of the Rose Review.”
The Treasury first commissioned Ms Rose to lead an independent review of women entrepreneurs in 2019. The Rose Review originally highlighted that if women started and scaled new businesses at the same rate as men, up to £250bn of new value could be added to the UK economy.
The latest findings, compiled by data company mnAI, reveal that female-founded businesses account for a record share of new firms, outstripping growth in male led firms for the first time.
“Data shows that more women than ever are starting new businesses and we must harness this potential,” said Ms Rose, who called on more financial institutions to commit to change and funding.
The report said 134 institutions with an investing power of nearly £1trn had now signed up to the Investing in Women Code - a commitment by financial services firms to improving female entrepreneurs’ access to tools, resources and finance.
Rose Review initiatives have seen tens of thousands of entrepreneurs across the UK benefiting from funding, advice and mentoring schemes, while thousands of students have received enterprise training, leading to significant year-on-year growth in female led start-ups.
But research conducted for the Rose Review shows the impact of Covid-19 risks holding back progress. It suggests that despite the rapid growth in female-led start-ups, female entrepreneurs have spent twice as long on caring responsibilities during the pandemic as their male counterparts, and that their businesses have been less likely to recover.
In response, members of the Rose Review board have announced extra measures to boost support for female entrepreneurs, including:
the launch of a nationwide Women Backing Women campaign from the Women Angel Investment Taskforce to support women to become business angels;
expanded schemes to provide networking and mentoring opportunities and other direct support to hundreds of thousands of female founders over the next three years;
a recruitment campaign, with the personal engagement of Ms Rose and business minister Paul Scully, to encourage even more institutions to sign up to the Investing In Women Code.
Mr Scully added: “We’re making the UK the best place in the world to start and grow a business, and that means unleashing the entrepreneurial talents of everyone across the country.
“This report shows women are shattering the entrepreneurial glass ceiling, which is a huge step forward in ensuring our economy and society is making best use of all our talents. I’m looking forward to the further progress this year will bring through the Investing in Women Code, Start Up Loans and more.”
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