Feminine enterprise house owners are placing progress plans on maintain attributable to excessive rates of interest, based on the most recent survey by Tide, the UK-based enterprise monetary platform.
As rates of interest within the UK proceed to take a seat across the 5 per cent mark, Tide reveals that round 38 per cent of feminine enterprise house owners have put progress plans ‘on ice’. The findings emerge from Tide’s Feminine Enterprise House owners UK Index, which examines the challenges that ladies within the UK face when launching and increasing their companies.
Total, of 458 feminine founders surveyed, 74 per cent defined that top rates of interest had negatively impacted their enterprise over the past six months. Of those, 40 per cent battle to plan for the long run alongside the present macroeconomic circumstances – with 21 per cent utilizing all of their income to repay enterprise loans.
Inflation (38 per cent), power prices (25 per cent) and problem accessing finance (25 per cent) emerged as the largest elements negatively impacting their companies within the final six months.
Whereas challenges and limitations stay throughout the UK for feminine enterprise house owners, 74 per cent nonetheless anticipate income to develop within the coming yr – with 18 per cent believing this progress can be vital.
Tide supporting feminine founders within the UK
Feminine-led companies make up simply 20 per cent of all new companies within the UK. Regardless of progress, total solely 5.6 per cent of girls within the UK run their very own enterprise – a lot decrease than developed economies reminiscent of Canada (15 per cent) and the US (11 per cent).
Heather Cobb, SVP member engagement at Tide, commented: “Within the UK, participation of girls in entrepreneurship stays stubbornly low in comparison with different superior nations.
“Our analysis reveals excessive rates of interest create extra limitations for fledgling feminine entrepreneurs already scuffling with points like childcare and low self-confidence. I’m delighted to see that Tide’s feminine members are constructive about 2024, nonetheless, we’re additionally calling on the UK to do extra to encourage and nurture feminine entrepreneurs – particularly as main political events put together for an election yr.”
Via a content material programme made up of movies, occasions and different engagements, Tide is aiming to advertise gender equality and take away limitations to feminine entrepreneurship. The corporate can be serving to 200,000 girls within the UK and 500,000 girls in India launch new companies by 2027. Tide had already onboarded 100,000 female-led companies by early 2023 – 10 months forward of its 2023 end-of-year goal.