Nearly one in five female business leaders forced to scrap or delay plans due to lack of funding, says research
Almost one in five female business leaders have been forced to scrap or delay their company plans due to difficulties in securing financing, according to new research.
A survey commissioned by banking giant HSBC laid bare the difficulties facing women entrepreneurs, with one in 10 saying that securing the financial support they need was their number one challenge.
The poll of over 1,000 female business owners revealed that nearly half of them are planning to expand their businesses in the UK or overseas next year, but that many are being held back by not being able to access loans or financing.
Nearly one in five (18 per cent) female business leaders see access to funding as a barrier to growing their business, while the research also found that nearly a fifth (19 per cent) have had to postpone or altogether cancel their business plans as they have not been able to access the funding needed.
HSBC unveiled plans to boost the bank’s funding available for British female leaders by £250m as part of a wider initiative to tackle the issue and “unlock growth opportunities for women-led businesses”.
Stephanie Betant, head of global trade solutions and lead sponsor for women-led business at HSBC UK, said: “Without sufficient credit lines, women are too often forced to sit on their innovative business ideas and growth plans, or cancel them completely.
“At HSBC UK, we want to drive meaningful change by using our financial expertise and global network to help women-led businesses realise their full potential, helping them to achieve growth and create a stronger economy.”
Despite facing challenges, the survey found that nearly a quarter (23 per cent) of women business leaders do not turn to anyone for support – not even family, friends or colleagues.
HSBC said that alongside the earmarked lending, it will also offer quarterly growth masterclasses with senior leaders at the bank, regular networking opportunities with peers and recognition through annual award ceremonies.
“We recognise that in addition to funding, female business leaders need a support network and access to resources,” said Ms Betant.
The research, which was conducted by YouGov, polled 1,014 female company leaders – either founders, owners, chief executives or chief financial officers – at firms across the UK between August 30 and September 10.
The research comes after Zandra Moore, the CEO and co-founder of Leeds-based Panintelligence, recently called for reforms at Innovate UK, the Government’s innovation agency. She said its latest funding awards programme had left thousands of female entrepreneurs feeling deflated and defeated.
Campaigners criticised Innovate UK following the announcement of its latest ‘Women in Innovation’ Awards, which they said underfunded female founders to the tune of more than £2m.
According to campaigners, this year’s ‘Women in Innovation’ Awards saw 1,452 applications from female-founded and female-led businesses across the UK, applying for £75,000 to “develop their exciting and innovative ideas.”
A spokesman for Innovate UK said the decision to only award this number was a mistake and the group apologised wholeheartedly. Innovate UK has now pledged to fund 50 Women in Innovation awards, meeting its original commitment of £4m for this programme.