Report finds gender gap is still an issue

A new study has revealed that men led businesses receive seven times more debt funding than companies owned by women. The Boost&Co research also revealed that almost one in three South East businesses believe debt funding is more accessible for men.

Independent asset manager BOOST&Co released their Geared for Growth report this week.

Of the 500 UK business leaders surveyed for the Geared for Growth report, 32.2% of South East respondents where of the opinion that debt funding is more widely available to businesses owned by men. This view was also prevalent in Scotland and London.

Research by The Gender Index found that women-led firms in the UK disproportionately attract less investment than those led by men, despite the fact that women are starting more companies than ever before.

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Further research found that male-owned businesses receive seven times more funding than those owned by women. The report authors suggest this suggests better support is needed for female business leaders on their funding journey.

The Geared for Growth report, also found 30.5% of South East businesses hold the incorrect view that if a traditional bank rejects a debt funding application, it is unlikely that any other lender will accept it.

Additionally, nearly half (44%) of business leaders in the South East believe that debt funding is more widely available to businesses that have been established for longer.

Commenting on these findings, Joanna Scott, Managing Director of BOOST&Co, says: “The research highlights a number of misconceptions around the debt funding process and eligibility criteria. It is therefore clear that more needs to be done to improve understanding in this area and relay the fact that debt funding is much more accessible than many businesses believe it to be.

“More support is needed for female and ethnic minority founders to change the perception that funding is less widely available to these groups. We must work to identify and remove the barriers to applying for and receiving funding and look at why some female-owned businesses may be more reluctant to pursue debt funding as an option.

“Despite this, more needs to be done to reduce the gender funding gap and convey the message that funding is a journey for businesses of all different shapes and sizes.”

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