Female-led startups expanding despite lack of structured support, research finds

Female-led startups are growing despite a support gap and limited structured help, according to new research.

Research from Small Business Britain, in partnership with Starling Bank, found that more than eight in 10 women, or 82 per cent, aim to grow their business in the next 12 months.

More than half, 53 per cent, said revenue had increased since 2025.

However, the findings also point to weaker income security.

Just over half, 51 per cent, do not plan to hire in the next year, while 51 per cent said their household income is lower than before starting their business.

Some 44 per cent said they had never received financial education, while more than half, 56 per cent, rated themselves as beginner or intermediate in financial confidence.

Many female entrepreneurs are turning to different sources for financial advice, with 26 per cent relying on accountants, 15 per cent on Google, 12 per cent on AI tools such as ChatGPT and six per cent solely on their own judgement.

Two in five, or 40 per cent, are unaware of or have not used government support systems to help grow their business, the research found.

The findings also point to the role female entrepreneurs play in the UK economy, where they lead many of the country’s 5.6 million small businesses.

However, with just over half, 52 per cent, of female solo entrepreneurs not planning to hire, the report says tailored support is needed to help turn ambition into scalable growth.

Based on the findings, Small Business Britain recommends prioritising financial education, introducing targeted support to help women move from sole trader to employer, and promoting digital financial tools to support productivity.

Michelle Ovens, CBE, founder and chief executive of Small Business Britain, said: “Female entrepreneurs play a vital role in the UK’s economic ecosystem and across the country, their ambition and contributions, often alongside significant caring responsibilities, do not go unnoticed.

“However, our research demonstrates a growth gap holding women back.

“There is a huge opportunity to support female entrepreneurs to scale their businesses with confidence and unlock financial success through clearer pathways to support.

“By providing women with the right tools and resources, we can level the playing field, boost entrepreneurship and enable more women to grow their businesses while continuing to benefit from flexibility and freedom taking the leap into entrepreneurship offers.”