Entrepreneurship has never been for the faint-hearted. It takes ambition, resilience and no small amount of grit to build and sustain a business. Yet, for women entrepreneurs in the UK, these qualities often have to work overtime, writes Jules McKittrick, chief risk and compliance officer at Sumer

At Sumer, we recently surveyed over 600 entrepreneurs to understand the challenges facing UK business owners today.

When we looked closer at the data, some striking gaps emerged: while 48% of male business owners feel confident navigating the current economic climate, only 29% of women said the same.

That is less than a third. For a country that prides itself on entrepreneurial spirit, this disparity should make us pause for thought. It is not a question of ability, but rather a reflection of the systemic challenges women face, from accessing funding to fighting for recognition in a space still too often dominated by their male counterparts. When women lose confidence, we all lose out, whether it is in innovation, economic growth or the fresh perspectives that female entrepreneurs bring to the table.

As someone who has spent over two decades in professional services, I have witnessed the challenges women face in business. The uphill battles, the glass ceilings and the moments of doubt. But I have also seen what happens when women are given the tools, support, and recognition they deserve; they do not just survive, they thrive. So, what is holding women back? And more importantly, how can we change it?

The money maze

Let us start with the elephant in the room: money. Access to finance has long been a thorn in the side of women-led businesses, and our survey found that 12% of female entrepreneurs identified securing funding as their greatest challenge, that is double the proportion of men.

It is no surprise when you look at the wider landscape. According to data from the British Business Bank, all-female founder teams receive just 2% of total venture capital funding in the UK; That is not a funding gap, it is a chasm.

Let us be clear, this is not about women being less capable or prepared. Research has consistently shown that businesses founded by women deliver strong returns and are less likely to fail than their male-led counterparts. Yet, unconscious bias continues to skew funding decisions, with investors often favouring pitches that align with more ‘traditional’ – read: male-dominated – ideas of leadership.

There is good news on the horizon, however. The government’s recent commitment to allocate £50m ($63.5m) through the British Business Bank specifically for women entrepreneurs is a step in the right direction. Though to truly level the playing field, we need broader changes: More women in decision-making roles at investment firms, more transparency in funding processes, and more education to challenge unconscious biases that continue to favour male-led businesses when investment decisions are made.

Confidence and expansion: Cause or effect?

The confidence gap is often misunderstood. It is not about women lacking self-belief, it is about how repeated challenges erode their capacity to take risks or expand their businesses. Our research found that only 34% of women entrepreneurs plan to hire new staff this year, compared to 53% of male entrepreneurs. Similarly, while 65% of male business owners anticipate an increase in turnover, only 53% of women feel the same way.

This is not because women are not ambitious: it is because, when you are constantly navigating obstacles, whether it’s securing capital, managing external biases, or balancing other responsibilities, it can be harder to take the kind of bold leaps that drive growth.

We also know that many women are starting businesses in industries that are heavily affected by rising costs, such as retail and hospitality, or face additional pressures to deliver community and social value alongside profits. These factors compound the day-to-day complexities of running a business.

In a post-pandemic, post-Brexit economy where SMEs are vital drivers of recovery, this issue could have significant implications not just for individual businesses but for the UK economy as a whole. Addressing this confidence gap must therefore be a priority if we want to unlock the untapped potential of women entrepreneurs.

The invisible burden

Beyond tangible challenges like funding and expansion, there is another issue lurking in the background: a lack of recognition. Our survey revealed that only one in three women feel that entrepreneurs get the recognition they deserve, compared to one in two men.

Why does this matter? Because recognition is more than just a pat on the back. It is about visibility, role modelling and credibility. When women entrepreneurs are not celebrated, their stories remain untold and their successes are overlooked. This has a knock-on effect, making it harder for them to build networks, attract investment and inspire the next generation of leaders.

We need to start amplifying women’s voices and achievements, whether it is through awards, mentorship programmes or media coverage. Not out of tokenism, but because their contributions are shaping the economy in ways that are innovative, meaningful and often underappreciated.

How we can break through

If we want to harness the full potential of women entrepreneurs, we need action on multiple fronts. First, we must address the structural barriers to funding. This means more than increasing availability, but rethinking how we assess and award it, to ensure the process works all business types.

Second, we need to create more robust support systems. At Sumer, we are proud of our SumHer initiative, which brings women together to share experiences, mentorship and professional development opportunities. Programmes like these do not just build confidence, but build community, enabling women to overcome challenges collectively and share tools for success.

Finally, we must embed entrepreneurial thinking into education and early careers. By fostering resilience, creativity and leadership skills from a young age, we can empower the next generation of women to approach business with confidence and determination.

A call to action

Let us be clear, this is not about women needing to ‘catch up’. Women entrepreneurs are already making incredible contributions, often in the face of disproportionate challenges. But their potential is being held back – not by lack of ability or ambition, but by systemic obstacles that should no longer exist in 2024.

We all have a role to play. Policymakers, investors, educators and business leaders need to step up and create an environment where women entrepreneurs are not just surviving, but thriving.

This is not just a matter of fairness; it is an economic imperative. Studies repeatedly show that businesses led by diverse teams are more innovative, profitable and sustainable.

So let us stop asking why women lack confidence and start asking how we can remove the barriers in their way. When we do, we will unlock their potential and drive progress for everyone.