Women entrepreneurs and small business owners are 18 per cent more likely to receive business funding than men, but are 80 per cent less likely to apply for it, according to new research.
A study by Access Commercial Finance, who specialise in small business and startup funding, found that only 16 per cent of applications received since July 2016 were submitted by women.
However, the research showed that the women who did apply for funding had a success rate 18 per cent higher than men. 13 per cent of applications from women were successful, compared to 11% from men.
Overall though, due to men making 84 per cent of the funding applications, they received the vast majority of funding awarded – £4,051,052 in total. Women received £332,437.
Not only are women less likely to apply for funding than men, they also ask for less money on average when they are do apply.
Based on applications where the full amount applied for was awarded, women received £22,162 each – £28,476 less than men, who received £50,638 each on average
Matt Haycox, consultant at Access Commercial Finance, hopes the findings encourage more women to think about applying for business funding.
“This data shows us that women are on average either better at putting together a funding proposal for their small businesses, or they just have more fundable businesses. Either way, it’s potentially good news for women-owned businesses and startups.
“But given the low application rate and low funding request amount for women, men are still getting most of the cash due to sheer volume of applications.
“We hope our data gives any woman considering applying for business funding the confidence to do so.”