A Strategic Framework for Women’s Enterprise - UK

Making the UK the best place in the world to start and grow a business

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A Strategic Framework for Women’s Enterprise - UK

Jackie Brierton

Consultant - Women’s Enterprise

DTI’s Small Business Service, UK


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Importance of SMEs to the Economy

99.1

0.7 0.2

43.7

11.9

44.437.0

15.0

48.0

0%

20%

40%

60%

80%

100%

0-49 employees 50-249 employees 250 and over employees

Enterprises

Employment

Turnover

Source: SBS Statistics Team, SME Statistics for the UK (2002)

Share of enterprises, employment and turnover by size of enterprise, UK, start 2002


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Women’s Enterprise Development in the UK -Background to Policy

• Piecemeal approach through ‘80s & ‘90s - lack of strategic overview

• “Grass roots” initiatives, local & regional – but lack of impact on policy development at national level

• Mainstream business support slow to respond

• Women’s Unit initiatives 99/00

• Formation of Small Business Service in 2000

• Phoenix Development Fund – 1st round - 19 projects to encourage women’s entrepreneurship


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Seven key policy priorities

Better regulation and policy

Improving smallbusiness’ experience of Government services

Improving access to finance

Building anenterprise culture

More dynamic start up market

More enterprise in disadvantaged communities and under-represented groups

Maximise opportunities for employment in small firms or through self- employment

Increased productivity across the total small business market

Building the capability for small business growth


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Women’s Entrepreneurship – facts & figures

• Lack of gender-disaggregated data

• 27% of self-employed in UK are women – with regional variations from 24% to 31%

• Around 14% of businesses women-owned

• Total Entrepreneurial Activity (TEA) - 3.8% compared to 8.9% male TEA

• Women-owned enterprises concentrated in services; retail; catering etc – more than 40% part-time

• Some indications of recent increase in women’s entrepreneurship activity - improved regional ratios; increased enquiry levels


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Developing the Framework

• SBS policy lead – Women’s Enterprise Unit

• Milestone meeting of stakeholders and government – September 02

• Formation of women’s enterprise cross-government policy group with high-level Ministerial commitment

• PROWESS – influencing role, and advocacy through membership

• Consultation with stakeholders across public, private and voluntary sectors

• Development of Strategic Framework for Women’s Enterprise – launched May 2003


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The Strategic Framework

• Emphasises the long-term cultural/social change needed to improve women’s business ownership in the UK

• Provides the cross-government policy & research context - & emphasises need for effective cross-cutting of issues

• Highlights the need to provide improved mainstream services alongside targeted provision


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The Strategic Framework:

• Encourages an inclusive partnership approach at local, regional and national level

• Provides practical advice/guidelines for business support agencies and others

• Quantifies specific targets for achievement by 2006


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Strategic Framework -Quantitative Targets

• By 2006 women will account for 40% of customers using government- sponsored business support services

• By 2006 women-owned businesses will account for 18-20% of the UK total

• By 2006 the number of women from ethnic minority communities receiving business support assistance will be proportionate to the relevant local/regional population.


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Priorities for Action

• Business support provision• More accessible and appropriate support services

• Mainstream AND targeted provision

• Development of toolkit for business advisors – ‘The Case for Women’s Enterprise’

• Access to finance• Increase proportion grants/loans/ equity

• More innovation e.g. microcredit group lending, women-specific equity funds

• Training and awareness for both supply and demand sides


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Priorities for Action

• Childcare and caring responsibilities• Allowances/ facilities during start-up

• Quality support for childcare businesses

• Transition from welfare benefits to self-employment• Increased numbers of women taking up New Deal self-employment

options

• Improved promotion of options and effective liaison between agencies


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Current Priorities

• More emphasis on access to finance agenda

• Improve data collection and research base

• Step up regional advocacy and embed central government commitment and resource base

• Increase relevance of current childcare strategy to women entrepreneurs

• Access to markets – build on recent procurement pilots

• Strengthen and develop targeted women’s enterprise initiatives


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Implementation of Strategic Framework -Challenges

• Effective implementation needs ‘buy-in’ at regional level, as well as across central government

• Regional devolution in UK will make this particularly challenging post March 2005

• SBS role becomes – policy development, influencing and expertise

• Onus on Regional Development Agencies to lead strategic development and inclusive partnerships

• Need for effective facilitation and capacity-building – role for PROWESS and others

• Resourcing is critical issue – current funding crises for many initiatives because of regionalisation


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Recent policy developments

• Women’s entrepreneurship actions included in DTI Innovation Report

• Women’s enterprise included as priority issue in regional economic strategies

• Treasury support for development of national women’s business council – consultation process starting Spring ’05


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Strategic Framework

• A Strategic Framework for Women’s Enterprise

• Accessible on: www.sbs.gov.uk or www.prowess.org.uk

• Or e-mail: [email protected]

A Strategic Framework for Women’s Enterprise - UK

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