Yet, new research reveals that women-run SMEs are significantly less likely to face insolvency than those led by men, suggesting that female founders might be better at keeping their businesses steady.
The study revealed that nine times as many companies are run by men than women. Construction businesses are more likely to be run by men, while education businesses are predominantly female-dominated.
Moreover, despite the financial obstacles female founders face when starting a business, many remain optimistic about the growth of their business, as nearly two thirds of women (65%) expect their businesses to grow in the next year, while 40% expect a 20% increase in income.
In March 2024, research revealed that companies with more than 30% female executives were more likely to outperform those with less. Organisations with a good level of gender diversity were also 25% more likely to achieve above-average profitability than companies with less diverse teams.
While the above figures paint a positive picture for women-led businesses, it’s impossible to ignore the problem of the UK’s current gender pay gap, and the lack of investment funding for female-led businesses compared to their male counterparts.
Source: Female-led companies are less likely to go bust, new research shows