The biggest stumbling block for women entrepreneurs is a lack of cash. And Britain's high-street banks aren’t much help: “They have an institutionalised bias against female-owned firms, typically charging one per cent more in interest on business loans,” complains businesswoman Jane Barnes.
She points to research by Warwick Business School, commissioned by the Bank of England, which found that the majority female-owned businesses pay higher margins on loans than male-owned firms (2.9 per cent against 1.9 points over base).
And the UK is not alone in its bias. The Forum for Women Entrepreneurs & Executives (FWE) found that venture capitalists in Europe are shunning investments in companies run by women; there were no more VC-backed female businesses in 2004 than there were in 2000.
“It’s infuriating,” says Barnes, the founder of Stevenage-based marketing and multimedia firm Yakkety-Yak. “My business is entirely self-funded because I’ve been knocked back by the bank so many times.”
Barnes isn’t after handouts. But she does want the government to step in. “The US government has a loan scheme for female start-ups, with preferential rates. Once they’ve paid back the initial loan, they’re offered another – for twice the amount. What a great way to encourage growth. Why can’t we have that here?”
Alistair Darling, take note.