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Today, on International Women’s Day, the Government and Innovate UK have announced the recipients of the Women in Innovation award. Each women entrepreneur has been awarded £50,000 to develop and grow their business. After today, the next stage of their business growth will require further investment and guidance. So who will be there to help them succeed? Research from the UK Business Angels Association (UKBAA) has found that women businesses who have been supported by women investors are 21% more likely to succeed. However, only 14% of investors are women, so on International Women’s Day 2019, the UK Business Angels Association encourages more women who have the capabilities to become investors to join their local and regional investment communities.
The UK Business Angels Association has found that a large factor inhibiting women from angel investing is the lack of prominent women role models within the industry and the consequential lack of mentorship associated to successful investment. This research therefore highlights the barriers faced by women who have the means, but do not currently invest into SMEs and why the UK’s community of women investors need to actively share their expertise and experience with the next generation of women.
Key research findings:
- 40% of women believe that there is a lack of senior female role models across all sectors of the investment arena which acts as a significant factor in women not pursuing a career in investment
- 48% of women believe they do not have the confidence to become an investor
- 13% of millennial women would like to enter the investment arena in 2019 but feel held back because of their gender
- When a woman investor backs a woman-led start-up, it's 21% more likely to succeed
Jenny Tooth, CEO of the UK Business Angels Association is of the opinion:
'Diversity, and the lack of it, is a prominent issue that transcends the majority of professional sectors within the UK.Within the investment arena, women currently only make up a mere 14% of the angel investment community and this is largely a consequence of a sheer lack of prominent role models driving women into investment. In order to overcome this, we need to build women’s investor confidence by highlighting successful case studies and increasing the conversation about women investors – it is all about increasing awareness that women do and can successfully invest in entrepreneurs. Diversity provides access to huge advantages for both the investment and entrepreneurial community and the UKBAA pledges for women with the financial capabilities to invest to fill the gender investment void that is clouding the UK’s investment arena.’
