The first Investing in Women Code (IWC) report analyses data from signatory members of the Code. It uses a set of agreed guidelines and metrics to analyse funding for female entrepreneurs, and explores how all signatories can better enable female entrepreneurs to successfully access the tools, resources and investment they need to build and grow their businesses. The new data released this week suggests that the 100 signatories of the Investing in Women Code are more likely to invest in female-run businesses than other investors, improving access to finance for women.
The Code, launched in July 2019, is a commitment to support female entrepreneurship in the UK by improving women’s access to the advice, resources and finance needed to build a business. The Code was set up after access to finance was identified as the number one disparity between female and male entrepreneurs by the independent Rose Review.
Overall, there are fewer applications for finance from female-led businesses than from male-led businesses. On average, male-led businesses also apply for a larger amount of finance. The IWC data shows that out of all business types applying for finance (sole proprietors, single director limited partnerships, multiple director limited partnerships and partnerships), 15% were led by women and 56% by men. 22% of new primary business bank accounts were opened by women and 66% by men (these were both new to bank, i.e. switching and new to business banking, i.e. starting up).
15% of applications for a standard loan or overdraft were from female-led businesses and 56% were from male led businesses. 15% of applications for a government guaranteed product, such as CBILS or BBLS, were from women, compared to 56% of applications from men.
Of all applications 15% were from female-led businesses and 56% from male-led businesses. Success rates were consistent across male-led and female-led businesses, with 90% of male-led applications approved and 91% of female-led ones approved.
