Female entrepreneurship means women starting, owning and growing businesses. In the US, the Census Bureau counted around 1.24 million employer businesses owned by women, 21.4% of the total, in its survey for 2020. In the UK, the government-backed Rose Review found only one in three entrepreneurs are women, and a later taskforce found that for every £1 of equity investment, just 2p goes to fully female-founded businesses.
Those three numbers tell most of the story: lots of women run businesses, fewer than you'd expect given the population, and far fewer get outside investment. This guide pulls together the official figures from the US and UK, the support that's free or cheap to use, and the practical steps to start.
How many businesses women own
The US Census Bureau's Annual Business Survey, covering reference year 2020, found around 1.24 million employer businesses (21.4%) were owned by women. Those businesses had an estimated $1.9 trillion in receipts, 10.9 million employees and $432.1 billion in annual payroll. That's employer businesses only, so solo founders without staff aren't in the count.
In the UK, the Rose Review, commissioned by the Treasury and led by Alison Rose, found that only one in three entrepreneurs are women. HM Treasury described that as a gap equal to over one million fewer female entrepreneurs, and said businesses run by women are on average half the size of male-led firms and far less likely to scale up to a £1 million turnover.
| Measure | Figure | Source |
|---|---|---|
| US employer businesses owned by women (2020) | About 1.24 million, 21.4% | US Census Bureau |
| Receipts of US women-owned employer businesses | $1.9 trillion | US Census Bureau |
| UK entrepreneurs who are women | One in three | Rose Review, HM Treasury |
| Value of closing the UK gap | Up to £250 billion of new value | Rose Review |
| UK high-growth firms with a female founder | 18% | Women-led high-growth enterprise taskforce |
The funding gap, in one number
The figure that should stop you in your tracks comes from the UK's women-led high-growth enterprise taskforce: for every £1 of equity investment in the UK, just 2p goes to fully female-founded businesses, which it says represents no improvement in the past decade. It also found that just 18% of high-growth enterprises have one or more women on the founding team, while all-male teams make up 82%.
The taskforce's definition of a women-led high-growth business is worth knowing if you're pitching investors: at least one woman in a top three role (CEO, CFO or CTO), and women holding at least 25% of founders' equity.
The UK government responded to the Rose Review with an ambition to increase the number of female entrepreneurs by half by 2030, equivalent to nearly 600,000 more, and a Code for Investing in Women, under which banks and other financial institutions publish the gender split of the businesses they invest in.
US support worth using
- Women's Business Centers: a national network, overseen by the SBA's Office of Women's Business Ownership, offering free to low-cost counselling and training for women starting and growing businesses.
- SCORE: volunteer mentors who give advice at no cost on finance, hiring and business planning, by email, phone or video.
- SBA-guaranteed loans: if a bank sees you as too risky, an SBA guarantee lowers its risk. The SBA's Lender Match tool connects you with lenders.
- The Women-Owned Small Business (WOSB) Federal Contract program: set-aside federal contracts for certified firms, with a government goal of awarding 5% of contracting to women-owned small businesses.
Who qualifies for WOSB certification
To be eligible, the SBA says a business must be small under its size standards, be at least 51% owned and controlled by women who are US citizens, and have women managing day-to-day operations and making long-term decisions. The economically disadvantaged tier (EDWOSB) adds limits: each woman owner must have personal net worth under $850,000, adjusted gross income of $400,000 or less averaged over three years, and $6.5 million or less in personal assets, as of October 2026. Certification itself is free through SBA Certifications, and the benefits only apply to federal contracts, not private ones.
UK support worth using
The government-backed Start Up Loan is the obvious starting point. GOV.UK describes it as an unsecured personal loan of £500 to £25,000 for a UK business that's been trading for less than 5 years, at a fixed 7.5% a year interest rate, repaid over 1 to 5 years, with no application fee. You'll need to pass a credit check, and successful applicants get up to 12 months of free mentoring.
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Steps to start, whichever country you're in
- Write down what you'll sell, who buys it and what they pay now. One page is enough to start.
- Book a free session: a Women's Business Center or SCORE mentor in the US, or the Start Up Loans support in the UK.
- Choose your structure and register the business with the right authority in your country.
- Separate your business and personal finances from day one.
- Decide how you'll fund it: savings, a government-backed loan, customers paying upfront or, for high-growth ideas, equity.
- If you sell to government in the US, check WOSB certification before you bid.
Role models help too. Our list of famous women entrepreneurs covers the household names, and these women entrepreneurs worth knowing are the ones I'd follow for practical lessons.
My take
I've run my own business for a long time, and the numbers above match what I see: women start plenty of businesses, but they're often under-funded and told to think small. My advice is to use every free resource your government already pays for, keep control of your equity for as long as you can, and if you do raise, know the 2p figure before you walk in the room. It isn't a reason to give up. It's a reason to pitch harder, to more people, with your numbers ready.
Frequently asked questions
What is female entrepreneurship?
It's the starting, owning and growing of businesses by women. Official surveys track it by counting businesses that are majority owned or led by women.
How many businesses do women own in the US?
The Census Bureau's Annual Business Survey for reference year 2020 found around 1.24 million employer businesses, 21.4% of the total, were owned by women. That count doesn't include businesses with no employees.
What is the funding gap for female founders in the UK?
The women-led high-growth enterprise taskforce found that for every £1 of equity investment in the UK, just 2p goes to fully female-founded businesses, with no improvement in the past decade.
What is a Women's Business Center?
It's part of a national US network overseen by the SBA that offers free to low-cost counselling and training for women starting and growing small businesses. You can find your nearest one with the SBA's local assistance tool.
Who qualifies as a women-owned small business for federal contracts?
The SBA requires the business to be small, at least 51% owned and controlled by women who are US citizens, and managed day to day by women who also make the long-term decisions.
