Despite progress in gender equality, women entrepreneurs continue to face significant barriers in securing funding. The latest National Women’s Enterprise Week (NWEW) 2025 report highlights the stark disparities between female-led and male-led businesses, shedding light on the challenges women face when seeking investment.
With fewer opportunities, lower funding amounts, and a clear lack of representation in investment portfolios, the findings serve as a wake-up call to the financial sector.
The gender funding gap remains a major obstacle
The report reveals that female-led businesses are 31% less likely to succeed in funding applications than those led by men. Even when women do secure investments, they receive 30% less funding on average than their male counterparts.
This lack of financial backing has a direct impact on growth, sustainability and innovation. If women cannot access the same level of investment as men, they are effectively being held back from fulfilling their business potential.
Another major concern is that only 29% of women apply for funding in the first place, compared to 43% of men. This suggests that confidence, accessibility, and potential biases in the funding process may discourage women from even attempting to secure investment.
Investment institutions continue to favour male-led businesses
A crucial issue highlighted in the report is the male dominance in investment portfolios. According to the findings, investment institutions are seven times more likely to have portfolios made up of businesses led by men.
This overwhelming preference for male-led enterprises not only limits opportunities for female entrepreneurs but also stifles diversity in business. Female-led companies bring different perspectives, priorities, and leadership styles, which can drive innovation and economic growth.
Female investors could be key to change
One of the most striking insights from the report is the importance of female investors in levelling the playing field.
Alison Cork MBE, founder of National Women’s Enterprise Week, emphasises that female investors don’t just provide financial backing – they offer mentorship, guidance, and a more inclusive approach to investment. Many women entrepreneurs value mentorship as much as funding itself, meaning that female investors could play a pivotal role in closing the gender gap.
Cork argues that the UK’s economic success is directly linked to unlocking the potential of women in business. By addressing the barriers that women face, there is an opportunity to create a more diverse, dynamic, and innovative business landscape.
A call to action for change
The NWEW 2025 report is a stark reminder that gender inequality in business funding is still a significant issue. While progress has been made, the statistics show that women are still being overlooked, underfunded, and underrepresented in investment.
To change this, action is needed at every level – from investment institutions reassessing their funding criteria to more women stepping into investment roles, to female entrepreneurs feeling empowered to apply for funding.
Without decisive action, the UK risks missing out on the full economic potential of its female entrepreneurs. The time for change is now.
