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Exclusive study: Why men are more likely to be business owners than women in Britain

·Head of Yahoo Finance UK
Photo: Reuters
Photo: Reuters

The fight for gender equality in the workplace is well documented. But while being your own boss may seem like the solution, a new study seen exclusively by Yahoo Finance UK shows how difficult it is for women in Britain, compared to men, to start their own business.

Men are three times more likely than women to have over £250,000 ($320,479) of investible assets – essential capital for getting a business started – according to private equity house IW Capital. Their 2018 Women’s Entrepreneurship Index has also shown how men are 52% more likely than women to have more start-up capital than their parents.

Furthermore, whilst 54% of female investors were likely to lend cash to female entrepreneurs, this number was higher than their male counterparts.

“By not fully addressing the problem of gender inequality the government risks not getting the most out of 50% of the potential talent, ideas, and passion that make UK finance and business a world player,” said Luke Davis, CEO and founder IW Capital.

“The SME (Small to Medium Enterprises) arena contributed £1.9tn to the UK’s economy in 2017 and so making sure that it has the widest possible pool of talent to draw from is vital. Encouraging investment into female-founded businesses is clearly something that must be improved upon through legislation as well as fostering an environment in which women feel that they have the support and resources available to start businesses.

“As the backbone of the private sector they will be a huge factor in determining the success of Brexit in March and onwards.”

Another recent study showed that 41% of Brits think Brexit has the potential to have a severely detrimental effect family and/or regional businesses. In A State of the Nation – The UK Family Business Sector 2017, corporate financiers Capital Step found that 62% of Brits believe that the UK government supports regional and/or family-run businesses less than corporate entities in the private sector.

Over the weekend, European Union leaders approved the UK’s withdrawal agreement with the bloc and have urged the British public and politicians to back prime minister Theresa May over the Brexit deal.

READ MORE: Exclusive study unveils the gap in generational attitudes over Brexit’s economic damage