Female Led Businesses Less Likely to Fail
Women entrepreneurs face greater challenges and more fear when setting up a business but still outdo male counterparts
Female entrepreneurs are more likely to set up a successful business than their male counterparts, despite coming up against greater challenges, according to research by YouGov and banking group Kleinwort Benson.
Only 11% of female entrepreneurs confessed their company had failed – compared to 17% of male business owners.
The research found that while 42% of the female business owners had encountered obstacles when setting up, only 32% of male entrepreneurs had. Despite this track record of success women still feared business failure more than men, 40% compared to 36%.
Other findings highlighted in the report – which featured 500 businesses – included regional disparities, with more small business owners in the Midlands and Wales confessing they had failed than those in the North and Scotland (18% compared to 14%).
Business owners aged over 55 reported the lowest rate of fear of failure and obstacles, at 34% and 32% respectively. And 20% of entrepreneurs aged up to 45 years-old said they had experienced negative outcomes due to their age compared to just 4% of those aged between 46 and 54.
Paul Bentley, head of entrepreneurs at Kleinwort Benson, said:
“In our experience, female entrepreneurs tend to be more risk averse and position themselves better to create long term value. This is beneficial in two ways. Firstly, they often avoid the pitfalls that befall early stage businesses. Secondly, their businesses will have demonstrated a more consistent track record and they will be more attractive to potential acquirers.
“Overall, we can see that women are increasingly embracing entrepreneurship and are successfully overcoming obstacles, such as funding, late payments and generating sales, to become models of entrepreneurial growth.”