A recent report on how to empower more women into entrepreneurship has called on the government to implement its recommendations and boost the economy. The report, commissioned by Finance Secretary Kate Forbes around this time last year, focused on education, access to finance, support, and mentoring for women in business.
Speaking as part of an International Women’s Day discussion focused on the Pathways: A New Approach for Women in Entrepreneurship review, chair, and co-author Ana Stewart pointed out that “it’s just words until government embraces the action points”.
Stewart, who is also an investment partner with Eos Advisory and previously founded and exited fintech firm i-design, said that the response to the report’s publication a few weeks ago had been “remarkably positive,” but now something needed to be done. “I’ll continue to push for the government to embrace all the recommendations in the report – I really want to make sure we act on this because if we actually do, Scotland could lead on these issues.”
The report’s authors highlight that the lack of inclusivity in the Scottish economy, particularly business ownership, needs to be addressed. Carolyn Jameson, the chief trust officer at Trustpilot, who also sits on the board of the Scottish National Investment Bank, said that “definitely aren’t enough women asking for the money at the moment” and while people are striving to make a difference, “we need a more collaborative effort across the board.”
One of the big problems is unequal access when women try to pull together the capital to set up a business – both social, financial, reputational, and human – as they may not be seen as credible entrepreneurs. Professor Eleanor Shaw, an associate principal at the University of Strathclyde with responsibility for the university’s entrepreneurship strategy, pointed out that despite progress being made, in the last 30 years, the number of UK businesses owned by women has remained stubbornly around 17.5%.
The panel agreed that the momentum needs to be kept going, and there needs to be a more collaborative effort across the board. Sarah Ronald, founding director of strategic design firm Nile and an active angel investor, talked about her struggle with the hidden social networks that make things easier for men. “I’ve had to build these groups and spaces to get and give support at the different stages of entrepreneurship – it can be really lonely, but it doesn’t have to be that way.”
The report’s authors suggest that by incentivizing investment groups to be more inclusive, one in five in the investment community should be women. While such positive discrimination may seem provocative to some, the lack of progress in the last 10 years means we need to have these discussions.
Stewart said, “We want to create a discussion about why only 2% of institutional investment goes to female-led firms at the moment. So few female entrepreneurs are coming through to the institutional space, the ecosystem is so imbalanced, it’s around 95% made up of men, and most from the same background – because human nature means you gravitate to what you’re used to.”
Stewart emphasized that much of the report was critical of the status quo but wanted it to be the start of renewed action. “We must be positive about what we can do though, it’s not about victimhood, and it’s important that everyone’s included in this discussion.”
Shaw noted that invisible networks are not just a problem for women in business, “it’s incredibly difficult for every underrepresented group – so new spaces must be created.” Ultimately, the report’s authors call for improved pathways and connections for businesses to reach the next rung on the ladder, designed for all, but particularly those not participating in the system fully.
The lack of diversity and inclusivity in business ownership and investment is a problem that needs to be addressed. While the report’s recommendations focus specifically on empowering women in entrepreneurship, the wider issue of the under-representation of marginalized groups in business ownership and investment cannot be ignored. Inclusive policies and initiatives need to be implemented to create a more diverse and representative entrepreneurial ecosystem.
Furthermore, the report’s emphasis on collaboration and support highlights the importance of creating networks and spaces where entrepreneurs from underrepresented groups can connect, and receive mentorship and access to funding. By incentivizing investment groups to be more inclusive and increasing visibility and support for female-led firms, progress can be made toward a more balanced and representative entrepreneurial ecosystem.