New data suggests that scaling women-powered businesses at the same rate as male-led counterparts could unlock £54.5bn in revenue and generate £20.7bn for the Treasury annually, according to research from Women Are Good Business, powered by The Gender Index. The findings highlight a significant economic opportunity that policymakers have largely overlooked.
The UK has underperformed its peers over the last decade, hit by shocks including the pandemic, the 2022 energy crisis, Brexit, and the Iran war, leaving growth sluggish. While economic interventions have faltered, the potential from female entrepreneurs remains untapped. Women-powered companies generate twice the return on investment compared to male-led ones, yet less than 2% of venture capital reaches them.
The data reveals a scaling gap: 22% of companies with 0-4 employees are women-powered, but this falls to 13.3% at 101-200 employees and 11% at 301-400 employees. Closing the gap in the 51-200 employee range alone could create nearly 390,000 jobs, offering a stable foundation for regional economies.
The House of Commons Women and Equalities Committee has already proposed solutions, including a Female Enterprise Investment Scheme, a new Office for Women’s Business Ownership, and a 10% public procurement target for women-powered businesses. Research shows these businesses prioritise longevity and reinvestment over quick exits, providing the stability needed to underpin the economy.
Despite the clear case, the current system remains structurally blind to sustained value creation. Backing female entrepreneurs could transform public finances and drive growth, yet the opportunity is being shamefully overlooked.
