In 2018, the Federation of Small Businesses reported that women-led businesses contributed £8.7 billion Gross Value Add (GVA) to the Scottish economy.

However, persistent structural inequalities hinder the full realisation of women entrepreneurs’ potential, as has been illuminated in a new report from Women’s Enterprise Scotland (WES). The report, based on data from a 2023 survey indicates that women-led employer businesses accounted for 22% of all employer businesses in Scotland, down from 23% the previous year.

Beyond these macro-statistics, the Survey of Women in Enterprise 2023, explored gender-based inequalities, structural barriers, and the impact of socio-economic factors such as the COVID-19 pandemic, Net-Zero initiatives, digital and technology adoption, and pension provision.

Key findings revealed that while women-led businesses peak at around five years of operation, sustaining growth beyond this point becomes challenging. Almost half of the respondents indicated their business is five years old or younger, reflecting the peak of women-led businesses at this stage.

Although 57% of respondents anticipated business growth in the next 12 months, this percentage has significantly declined from 92% in 2019. Moreover, while existing support platforms received praise, concerns were raised regarding inclusivity and gender-awareness, with demands for more personalised support systems tailored to the unique needs of women entrepreneurs.

A notable disconnect was observed between the business growth support expected and the actual support received by respondents. Sustainability remains a concern, with male-led enterprises showing a higher sustainability rate than women-owned businesses.

The COVID-19 pandemic has exacerbated financial challenges for women-owned businesses, with many struggling to meet increased business expenditure. Digital skills and technology adoption remain areas of concern, with nearly half of respondents lacking the necessary skills to develop a digital strategy for their businesses. There is also a lack of confidence in achieving Net Zero targets, coupled with low application rates for related financial support.

WES chief executive Carolyn Currie said: “The results of our survey demonstrate the requirement for accelerated action which is aligned with the needs of women-led businesses.

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“With many women not accessing support services and others highlighting they are not getting the best out of support services, we can hardly be surprised that experiences of discrimination by women entrepreneurs have risen sharply – yet this picture is wholly at odds with our aspirations for an inclusive and thriving economy in Scotland.

“Increasing the participation, sustainability and resilience of women-led businesses would provide Scotland with a welcome economic boost.

“Added to this, the influx of new business owners has the capability to revitalise communities the length and breadth of Scotland, boosting our current innovation capabilities and productivity.”