Female founders could unlock £310bn for UK economy

A major new study into UK female entrepreneurship has found that closing the gender gap in business creation and growth could unlock a £310 billion boost to the economy, as persistent barriers around funding and support continue to hold founders back.

The Rise Report, commissioned by Female Founders Rise in partnership with Barclays, is one of the largest grassroots studies of its kind. It captures the experiences of 2,225 female founders across the UK whose businesses collectively generate around £1 billion in annual turnover.

The findings paint a picture of a high-performing but under-supported segment of the economy. While female-led businesses are already contributing at scale, many founders report structural challenges that limit their ability to grow.

Access to funding a primary obstacle

According to the report, 45% of respondents cite access to funding as their primary obstacle. Frustration with both public and private finance is widespread, with 78% describing grant processes as overly bureaucratic and 73% expressing negative views of venture capital and angel investment.

The data reflects a broader funding imbalance. Female-founded teams receive just 2% of venture capital, despite evidence suggesting they often deliver stronger returns. Concerns about investor behaviour also emerged, with one in ten respondents reporting negative experiences such as dismissive attitudes or lack of follow-up.

Alongside financial barriers, the report highlights the importance of human connection in entrepreneurial success. Some 78% of founders say connection is central to their journey, while 39% identify peer networks as the most effective form of support and 32% point to mentorship and coaching.

However, the absence of that support can come at a cost. Around 14% of respondents say loneliness and isolation are their biggest challenge, and more than a quarter report mental health pressures including burnout and self-doubt.

Funding female founders could unlock £310 billion for UK economy

The report builds on earlier findings from the Rose Review, which estimated that closing the gender gap in entrepreneurship could add £250 billion to the UK economy. Adjusted for inflation, that figure now stands at £310 billion.

Separate government analysis has also pointed to the economic upside of greater participation, suggesting that a 5% increase in female employment could add £125 billion annually.

Despite this, concerns remain that female entrepreneurs are consistently under-resourced. The Women and Equalities Committee has previously warned of systemic inequalities in access to finance and support.

In response, financial institutions and industry groups are stepping up efforts to address the gap. Barclays points to initiatives including specialist coaching for business owners, its Female Founder Accelerator programme and targeted funding support through its Business Prosperity Fund.

The bank is also a founding signatory of the Investing in Women Code and has committed up to £50 million through the Invest In Women Taskforce.

The Rise Report concludes that while technology and digital tools are transforming how businesses are built, they cannot replace the role of networks, mentorship and community in driving growth.

For policymakers and investors, the message is clear. Unlocking the full potential of female founders is not only a matter of equality, but a significant economic opportunity.

For further information, visit https://therisereport.co.uk/