New research shows lack of financial education is a critical barrier to scaling female entrepreneurship
Female entrepreneurs are not short on ambition and resilience, with many continuing to grow their businesses, despite operating at a small scale with limited access to structured support, new research from Small Business Britain, in partnership with Starling Bank reveals.
As part of a partnership aimed at boosting UK female entrepreneurship, the research gathered from more than 1,000 women found that more than eight in ten (82%) aim to grow their business in the next 12 months, with over half (53%) reporting increased revenue since 2025. While this reflects strong confidence and momentum, there is a clear opportunity to better support women in scaling their businesses and strengthen income security, as just over half (51%) do not plan to hire in the next year and 51% report their household incomes are lower than before starting their business.
The research demonstrates UK female entrepreneurs are ambitious, resilient and growth-focused. However, their clear long-term goals are tempered by financial literacy, as 44% have not received financial education and over half (56%) rate themselves as beginner or intermediate in financial confidence. This highlights the importance of embedding practical skills into mainstream business support, as two in five (40%) of female entrepreneurs are unaware or have not used government support systems to help grow their business.
The findings also shed light on the transformative role female entrepreneurs play in the UK economy, leading many of the nation’s 5.6 million small businesses. However, with just over half (52%) of female solo entrepreneurs not planning to hire, it’s vital to provide tailored pathways to support female entrepreneurship and convert ambition into scalable growth.
Based on the report, we make the following recommendations to government to support female entrepreneurs on their growth journey (more details in Notes to Editors):
- Prioritise financial education to improve financial literacy
- Implement segmented and targeted support to move women from sole trader to employer
- Prioritise the adoption of digital financial tools to support productivity
“Female entrepreneurs play a vital role in the UK’s economic ecosystem and across the country, their ambition and contributions, often alongside significant caring responsibilities, do not go unnoticed,” said Michelle Ovens, CBE, CEO and founder of Small Business Britain.
“However, our research demonstrates a growth gap holding women back. There is a huge opportunity to support female entrepreneurs to scale their businesses with confidence and unlock financial success through clearer pathways to support. By providing women with the right tools and resources, we can level the playing field, boost entrepreneurship and enable more women to grow their businesses while continuing to benefit from flexibility and freedom taking the leap into entrepreneurship offers.”
The research showed that many female entrepreneurs are resourceful in navigating limited access to financial literacy and rely on variation platforms for financial advice:
- 26% turn to accountants for financial support
- 15% rely on Google
- 12% use AI tools such as ChatGPT
- 6% rely solely on their own judgement
Michele Rousseau, chief marketing officer at Starling, said: “The demand for business and financial education is strong and we were blown away by our webinar series for female entrepreneurs, delivered in partnership with Small Business Britain, being heavily oversubscribed.
“Starling is committed to helping small businesses grow and we’re playing our part in publicising the digital financial tools that can help save them time and money, as well as supporting projects to help them get to the next level.
“We help entrepreneurs move beyond manual, time-consuming processes to digital tools, with in-app insights and free solutions to allow real-time financial clarity. This enables them to focus on converting their strong ambition into scalable business success.”
Becky Barnes, founder of Becky Barnes Style – a sustainable stylist, said: “Being part of the Female Fundamentals programme has helped me feel more confident navigating the financial side of my business which is something many of us aren’t taught but are expected to lead on. It’s given me a clearer understanding of growth, pricing and long-term sustainability. As my business continues to grow, I’d welcome more support around scaling in a way that feels aligned, without compromising the values that sit at the heart of what I do.”
To celebrate female entrepreneurs across the country, Small Business Britain and Starling gathered more than 100 women at Emirates Stadium. As an official partner of Arsenal, Starling hosted the networking event ahead of Arsenal Women’s WSL fixture against Tottenham Hotspur Women. Many attendees were graduates of the free six-week Female Founder Fundamentals programme, focused on building confidence, growth and financial skills.
Small Business Britain has a stated mission to increase the number of female small business owners from 15% of all entrepreneurs to 30% by 2030. As part of this mission Small Business Britain will be working with Starling Bank to offer a range of support for female founders across the country.