The wage gap between the two genders is extensive all over the world. Believe it or not, the UK even doesn’t rank with the best when it comes to gender equality for entrepreneurs and their pay.
In the UK, only one-third are businesswomen, with the business of 44% size of what the men are.
In the future, looking at the country after Brexit, the government of the country is searching for ways they can help women get more included in entrepreneurship and further expand the UK’s Economy.
The Inequality & Economy
According to a new report from the Rose Review of Female Entrepreneurship:
Once the gender disparity closes, the Economy can generate up to £250 billion. The Rose Review is an individual UK Treasury Commission claims that men will most likely, around five times, be able to turn around £1,000,000 as there are many obstacles in their success.
According to the personal loans finder website, MoneyPug:
The objective of the government is to raise the number of entrepreneurs there by 50% by the year 2030 and assist them in their capacity to get the investments they need.
The Code of “Investments in Female Entrepreneurs”
The UK Finance and the Country Treasury are working together to create a new code that lenders can follow.
The new code was called:
Investing in Female Entrepreneurship
It will be published every year, and it will center around the various habits of financial institutions and finance lending. A NatWest, Alison Rose, partly leads the eight-point initiative, which gives women wanting to start a business and women wanting to grow their business resources and financing.
Challenges Women Face
Five focal challenges exist and result in lower women entrepreneurs, as the review found.
- Low capital access
- Less awareness of capital and more awareness of risks
- Incorrect understanding of experience
- Lack of skills harming women’s investment chances
- Disproportionate responsibilities at home
All of these challenges make it complicated for women to start a business, resulting in fewer mentors and role models. The government has plans to solve these issues using the Eight Initiative plan, targeting various steps in becoming an entrepreneur.
Eight Initiatives
- The government will begin by encouraging higher clarity in the allocation of funds. They will do that by introducing new codes and commanding the financial institution on gender equality principles.
- Moreover, they want transparent reports on the funding.
- They want to begin new investment methods to get an increase in funds for women wanting to launch businesses. They will encourage lenders to invest more in companies owned and led by females.
- Institutional and private investors will be asked to fund more women entrepreneurs.
- Banking products will get reviewed and will create a new system that will have entrepreneurs with family responsibilities.
- Both of these initiatives focus on providing improved access to mentors, experts, and networking opportunities.
Educational services offered by institutions and organizations will increase their development and create a new public platform that will give entrepreneurs all the information they might need.
How will the economy get Affected?
Did you know that Britain has the smallest percentage of women running their businesses compared to Australia and the US?
Currently, only 6% of British women are running their own business, while in the US, it’s 11%, and in Australia, it is 9%.
As you can see, the UK has the smallest percentage of women running their own business.
This gap shows how over a million businesses are missing. Such businesses account for a huge percentage of the whole of the British Economy, and without these businesses, the UK cannot reach its full potential. The fact is that only time will tell whether the government can develop this much growth, which is equal to £250 billion in combined gross value to the Economy.
The Correct Thing, The Smart Thing
As the difference between the business leaders amongst males and females is clearer, it is also more visible how the government is working to reduce the huge gap and assist female entrepreneurs in any way they can to solve this problem.
As women enter the world of business, they need support, guidance, and mentorship to create better products that cost less and lead to a stronger economy.
Some might be doubtful when it comes to ensuring the right person gets the loan they need for their business with gender equality measures. However, the Economy cannot reach its full potential until we do the moral thing of closing the gender gap in entrepreneurship. Developing and increasing the role of women in business is the correct and smart thing to do.
How will stakeholders actively implement and enforce the new code “Investing in Female Entrepreneurship?
Implementing and enforcing the new code “Investing in Female Entrepreneurship” requires a strategic and collaborative effort.
- Develop Guidelines: Develop comprehensive guidelines outlining the principles and objectives of investing in female entrepreneurship.
- Training Programs: Conduct training programs for employees and stakeholders to create awareness and ensure understanding of the code’s significance.
- Monitoring and Reporting: Implement a robust monitoring system to track adherence to the code and establish regular reporting mechanisms for transparency.
- Incentives and Recognition: Introduce incentives for businesses that actively support female entrepreneurship and recognize their contributions.
- Feedback: Establish channels for feedback and improvement, encouraging continuous refinement of the code based on real-world experiences.
- Regular Code Reviews: Conduct regular reviews of the code’s effectiveness, considering feedback from stakeholders and making necessary adjustments.
By combining these elements, the implementation and enforcement of the “Investing in Female Entrepreneurship” code can create a supportive environment that fosters gender diversity and economic empowerment.