Start-Up Boom but Scale-Up Crisis: New Report Warns of Urgent Action Needed for Women’s Enterprise

Women’s Enterprise Day report highlights urgent need for finance reform, welfare alignment and support for older women entrepreneurs

A new report from Prowess: Women in Business shows that women’s start-up activity in the UK has reached its highest level in a decade — but the number of women-led employer businesses has fallen sharply since 2021.

The State of Women's Enterprise 2025, released to mark Women’s Enterprise Day on 19 November, draws on data from GEM, ONS, the Longitudinal Small Business Survey and sector analysis. It identifies strong early-stage entrepreneurial growth among women but “deepening structural barriers” are limiting progression to employer status.

Key findings
Record start-up activity: Women’s early-stage entrepreneurship has risen from 5.7% (2015) to 9.2% (2025).

Decline in employer firms: Women-led employer SMEs dropped from 19% (2021) to 14% (2025), that’s a loss of around 70,000 businesses.

Older women driving growth: Later-life enterprise is expanding rapidly, with women over 50 becoming one of the fastest-growing entrepreneurial groups.

Finance gap persists: Women remain under-funded across all stages of enterprise, with limited access to investment and follow-on capital.

Regional dynamism: Strongest growth is in regions with targeted strategies: The West Midlands, The North East, Parts of Scotland and Wales.

Policy pressure: The Minimum Income Floor (MIF) continues to limit earnings stability for self-employed women claiming Universal Credit.

Quote
Erika Watson, Director of Prowess: Women in Business, said:
“Women are starting businesses in record numbers — but too few are able to scale. The fall in women-led employer firms since 2021 shows the system is still stacked against them. With targeted support and finance, fairer welfare rules and support for later-life entrepreneurs, women’s enterprise could be one of the UK’s strongest economic growth opportunities.”

Recommendations

Target support for women to scale up their businesses

Expand enterprise support for women over 50

Improve access to follow-on finance and regional investment

Align business and welfare policy so enterprise is not penalised

Download the full report
Available from prowess.org.uk/womens-enterprise-2025

About Prowess: Women in Business
Prowess is a leading organisation championing women’s enterprise in the UK. We provide practical support, research and policy insight to help women start, sustain and grow successful businesses. Director of Prowess, Erika Watson, has received an MBE for services to women's enterprise.

Media Contact
Erika Watson MBE
Director, Prowess: Women in Business
07975743281
erika@prowess.org.uk
www.prowess.org.uk