Barriers facing women in business and how IWD can help

Barriers facing women in business and how International Women’s Day can help overcome them

Sometimes the message behind International Women's Day can get somewhat lost. This wasn’t designed to negate the achievements of others nor deny those who identify differently.

At OTG we celebrate the day to recognise how far we have come, socially, culturally and politically, but also to highlight the fact that while we may see an improvement, there are so many women across the world that still suffer simply because they are female.

OTG, which was founded by two women, works with businesses of all sizes both nationally and internationally so we recognise the ongoing challenges facing women in business on a regular basis.

Can female business owners compete with male business owners on a level playing field?

Barriers facing women in business

It is often quoted that women in business have to work twice as hard as their male counterparts to get half as much credit [1]. There are several common barriers which contribute to women having a harder time in the workplace and as women business owners.

Lack of access to capital

One of the biggest barriers faced by women in business is the lack of access to capital. A 2022 report by Beauhurst, an investment consultancy, found that in the UK, just 2p in every £1 invested went to all-female founding teams vs 85p for all male founding teams, the remaining 13p went to mixed teams. This huge disparity in accessing funding means that women business owners are automatically at a disadvantage in the marketplace compared to their male competitors. Having access to adequate early-stage funding in particular can mean the difference between a business thriving and one that goes under. 

Some investors are implementing programmes to redress the balance, providing dedicated funding pots specifically for female founders. Although rates are increasing, progress is slow. British Business Bank estimates that at current rates, it will take until 2045 for women to receive just 10% of all deals.[2]

Gender bias in the workplace

There are many ways that gender bias against women can manifest in the workplace including:

• Lower wages for the same job
• Failure to promote
• Receiving less support
• Small pay rises
• Being given less demanding work to complete
• Being pigeonholed into typically female dominated roles such as HR & teaching

Work-life balance

Women business owners face unique challenges in achieving work-life balance. Work doesn’t stop when you power down the laptop when you have a family who need you. Current studies suggest that women in business and the workplace who are mothers do at least twice as much housework, eldercare and childcare then men with families. Given women are continuing to shoulder the burden of caring duties, it leads to issues balancing work and personal life. Eventually the level of stress coming from competing priorities can lead to reduced productivity and burnout.

Lack of representation

The lack of representation in senior positions is also a significant challenge faced by women in business. For those running their own companies, this is obviously less of a problem but in many larger companies, female leadership still lags behind the men. In the FTSE100, only 9 of the CEOs are female and none are women of colour and for the FTSE350, only 6% or 19 are female. [3]

Fear of failure

Almost two thirds of women surveyed by Vistaprint admitted that they were worried about failing in business. This is holding women back from starting a business – only 20% of business owners are female in the UK currently.[4] When it comes to starting a new business, many women don’t get the same support from family, friends and colleagues as male business owners receive.

Redressing the balance

International Women’s Day is a good opportunity for men to become involved in raising awareness of the inequity facing women in business and in life in general. Supporting women business owners means giving them confidence and encouragement, providing opportunities to grow their business, making great business connections and ensuring the can gain equitable access to investment. IWD provides a chance to reflect on what progress is being made and where there are still barriers to overcome. 

Support for women in business

If you are a woman in business finding it challenging to get the right help to keep your business growing or you are considering setting up your own business but need some help to get started, we can help you with business advice, compliance & tax accounting and basic bookkeeping. Sophie Thomas, our Co-founder can explain how we can provide the right financial support so you can flourish. Call 03330 067 123 or email info@onthegoaccountants.co.uk.

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[1] https://www.independent.co.uk/voices/hillary-clinton-julia-gillard-gender-equality-women-work-equal-pay-success-a9200791.html

[2] https://www.british-business-bank.co.uk/uk-vc-female-founders-report/

[3] https://www.raconteur.net/leadership/tse-100s-first-female-leadership-team-overdue

[4] https://www.telegraph.co.uk/business/women-entrepreneurs/five-barriers/