WOMEN HOLD KEY TO ENTREPRENEURIAL ACTIVITY
(16 November 2005)

The benefits of getting more women to take up entrepreneurship are clear according to DTI Minister for Women and Equality, Meg Munn. At the moment, women-owned businesses contribute about £70 billion to Gross Value Added, about 25 per cent of the UK total, mainly from the growing service sector. Nearly a million women are self-employed today in the UK. Despite this, only 26 per cent of the total self-employed are women.

Speaking at the Everywomen Conference on Women's Enterprise Day, Meg Munn said: "The potential for the development of women entrepreneurs is huge and largely untapped. If we had the same rate of female owned start-ups as in the USA, we would have 750,000 more businesses; this would have a major impact on productivity, employment and prosperity.

"However, it is pleasing that progress has been made in another area of entrepreneurship - according to recent SBS survey figures, the percentage of all small businesses that are majority-led by women now stands at 19 per cent, although we await the 2005 survey figures to see whether the figure continues to stand as high as that."

The Women's Enterprise Panel (WEP) was established in October 2004. They have been working on an Action Plan for accelerating the development of women's enterprise. Progress has been made on a number of fronts.

These include:

• Working with representatives of the banks to help break down access to finance barriers (experienced by some women)
• Working with Regional Development Agencies to ensure women have access to female-friendly support from the pre start-up stage onwards

RDAs report that there have been large increases in female entrepreneurial activity in some regions - the East of England, the North East, North West, Scotland and the South West have doubled their female entrepreneurship rates in the last two years.

There are also positive developments in levels of female graduate entrepreneurship - female students are more likely to be engaged in entrepreneurial activity than male students (2.6 per cent of female students compared to 1.6 per cent of male students).

During her speech Meg also highlighted government action to challenge under-representation of women in particular sectors, such as Science, Engineering and Technology. The UK Resource Centre for Women has received something approaching £7 million of government funding to work with employers and professional organisations to raise the profile of women through a range of initiatives. These include a resource centre website and helpline, providing a wealth of information and advice to girls and women considering science, engineering and technology careers.