On this special Mother’s Day, we’re taking a moment to recognise the remarkable achievements of women in business, particularly those who balance entrepreneurial ventures with family responsibilities. The contributions of women to the UK economy are substantial and growing, with female-led businesses contributing £85 billion to economic output according to recent statistics.
The Rising Influence of Women in UK Business
The landscape of UK business is evolving, with women increasingly taking centre stage. Recent data from the Rose Review Progress Report 2023 shows that more women than ever are starting new businesses, with over 150,000 new female-founded companies established in 2022 alone.
Women are no longer confined to traditionally female-dominated sectors; they’re making significant inroads into finance, technology, manufacturing, and construction. This diversification brings fresh perspectives and innovative approaches to industries that have historically been male-dominated.
Breaking Down the Numbers
The financial impact of women in business cannot be overstated:
- Women-owned businesses contribute approximately £85 billion to the UK economy annually
- Over 1.7 million UK businesses are led by women (roughly 33% of the total)
- Female-founded startups deliver higher revenue returns—more than twice as much per pound invested—than those founded by men
- The proportion of women on FTSE 100 boards has increased from 12.5% in 2011 to over 40% in 2023
The Unique Challenges Faced by Women Entrepreneurs
Despite tremendous progress, women in business continue to face distinct challenges. Access to funding remains a significant hurdle, with only 1p out of every £1 of venture capital investment going to all-female teams. Additionally, many women report experiencing the “confidence gap”—a tendency to underestimate their abilities and qualifications.
For mothers in business, these challenges are often compounded by the demands of family life. The mental load of managing childcare, household responsibilities, and a business simultaneously can be overwhelming without proper support systems in place.
Balancing Business and Motherhood
Many successful female entrepreneurs are also mothers who have developed strategies to balance their professional and personal lives:
- Implementing flexible working arrangements that accommodate school runs and family commitments
- Creating strong support networks of fellow entrepreneurs and family members
- Embracing digital tools and automation to maximise productivity during working hours
- Setting clear boundaries between work and family time
- Practising self-care and recognising when to ask for help
Financial Considerations for Women Business Owners
When it comes to financial planning, women business owners should consider several key factors:
Tax Efficiency
Understanding the tax landscape is crucial for optimising business finances. Women entrepreneurs should explore:
- The potential benefits of different business structures (sole trader, limited company, partnership)
- Tax-efficient ways to draw income from the business
- Available tax reliefs and allowances, including those specific to research and development
- Pension planning opportunities to secure long-term financial wellbeing
Access to Funding and Investment
While funding remains a challenge, there are increasingly more resources specifically designed to support women in business:
- The Women in Innovation Awards provide £50,000 funding and mentoring to female entrepreneurs
- The Investing in Women Code encourages financial institutions to improve female entrepreneurs’ access to finance
- Angel investment networks like Angel Academe focus specifically on funding women-led businesses
- Government-backed Start Up Loans offer low-interest financing up to £25,000
Inspiring Success Stories
Behind the statistics are countless inspiring stories of women who have built successful businesses while navigating the complexities of motherhood.
Take Sarah Willingham, entrepreneur and former Dragon’s Den investor, who grew her business while raising four children. Or Sara Davies, founder of Crafter’s Companion, who built a multi-million-pound craft supplies business while starting her family.
These women demonstrate that with determination, support, and smart financial planning, it’s possible to thrive both as a business leader and as a mother.
The Future Looks Bright
The future for women in business appears promising. Government initiatives, changing societal attitudes, and increasing representation in business leadership are creating more opportunities than ever before.
The Rose Review of Female Entrepreneurship has set ambitious targets to add an additional £250 billion to the UK economy by boosting female entrepreneurship. This could lead to an additional 600,000 female-founded businesses by 2030.
As accountants, we’re proud to support women entrepreneurs on their journey, providing the financial guidance and business advice needed to navigate the complexities of modern business ownership.
FAQ: Women in Business and Financial Planning
What tax considerations are specifically relevant to women-owned businesses?
While tax regulations apply equally to all business owners regardless of gender, women entrepreneurs should be particularly aware of tax-efficient options for extracting profits (especially if balancing business with family responsibilities), potential tax credits for childcare costs, and the benefits of pension planning. Consulting with an accountant who understands the unique challenges women face can help identify the most advantageous tax strategy.
Are there any specific grants or funding opportunities available for women entrepreneurs in the UK?
Yes, several funding initiatives specifically target women-owned businesses. These include the Women in Innovation Awards, the HSBC Female Entrepreneur Fund, and various programmes through the Women’s Enterprise Scotland initiative. Additionally, networks like Angel Academe specialise in connecting women entrepreneurs with investors.
How can women entrepreneurs best prepare for maternity leave if they own a business?
Preparation is key when planning for maternity leave as a business owner. This includes creating detailed handover documentation, training team members or temporary replacements, establishing clear communication protocols, setting aside contingency funds, and potentially restructuring business operations to allow for a more flexible return to work. An accountant can help with financial planning to ensure business stability during this period.
What are the most effective ways for women business owners to plan for retirement?
Women often face unique retirement planning challenges due to career breaks and longevity considerations. Business owners should consider establishing a personal pension plan separate from the business, explore options like the Self-Invested Personal Pension (SIPP), and develop a comprehensive exit strategy for the business that could include selling the business, passing it to family members, or structuring a management buyout.
How can women business owners effectively network and find mentors in male-dominated industries?
Networking remains crucial for business growth, particularly in male-dominated sectors. Women can join industry-specific networks like Women in Banking and Finance or Women in Technology, participate in local business groups, attend industry conferences, and utilise platforms like LinkedIn to connect with potential mentors. Additionally, organisations like the Federation of Small Businesses offer specific support for women entrepreneurs.
What financial metrics should women entrepreneurs prioritise when evaluating business performance?
All business owners should focus on key metrics including cash flow (particularly important for managing business and family financial needs), profit margins, customer acquisition costs, lifetime customer value, and return on investment for major expenditures. Regular financial reviews with an accountant can help identify areas for improvement and opportunities for growth.
References and Further Resources
- The Rose Review of Female Entrepreneurship
- Women’s Business Council
- HMRC Resources for Small Businesses
- Federation of Small Businesses – Women in Enterprise
- Chartered Institute of Personnel and Development – Gender Pay Gap Reporting
As we celebrate Mother’s Day today, let’s acknowledge the tremendous contribution that women—particularly mothers—make to our economy and business landscape. Their resilience, innovation, and determination continue to reshape the business world for the better.
If you’re a woman in business looking for financial guidance or business advice, our team is here to support you every step of the way. Contact us today to discuss how we can help you achieve your business goals while maintaining the work-life balance that’s so important for you and your family.