If a fairer share of funding for all was applied across the banking spectrum, the face of our economy and small business landscape would change significantly. Back in 2019 the Rose Review made a calculation that up to £250 billion of new value could be added to the UK economy if women started and scaled new businesses at the same rate as UK men.
At Start Up Loans, we issue 40% of our loans to female entrepreneurs, against approximately 18% of smaller businesses with employees and 20% of smaller businesses without employees being female-led, so we do better than the wider market. And we are proud of that, but want to do even more.
We have always had front of mind our mission to support underrepresented groups, and those who find it more difficult to access finance, and this is reflected in our lending statistics. If the industry more generally followed suit, our commercial landscape would see an upsurge in successful female businesses up and down the country.
In the UK, where entrepreneurship is as diverse as the population itself, there is a pressing need for a lending environment that serves everyone. While Jo Malone, Deborah Meaden and Trinny Woodall are famous names that have made it despite the barriers, they are the tip of the iceberg. Unfortunately, there are many women who struggle to get the finance, backing and support to start or scale their business.
Current state of lending
The traditional lending environment can present challenges for women and underrepresented groups. Access to finance is often cited as a significant barrier for these entrepreneurs, with systemic biases and a lack of collateral frequently hindering their ability to secure start up finance. At Start Up Loans, we have observed these challenges first hand. Our lending rates, particularly with regard to gender, reflect a conscious effort to bridge this gap.
The Start Up Loans programme does more than just provide finance – we are dedicated to empowering budding entrepreneurs to turn their business dreams into reality. Alongside the finance, we also offer free mentoring and pre-and-post loan support to all loan recipients to ensure that they have the tools, information and support required to launch or grow a successful business.
Moody cow nails
27-year-old TJ Bouchada, the enterprising founder of Moody Cow Nails, decided she wanted to open her own nail salon after being made redundant during the pandemic. Faced with the daunting prospect of securing finance, TJ found a partner in Start Up Loans. Our support enabled her to launch Moody Cow Nails, a venture that not only fulfilled her entrepreneurial ambitions but also contributed to the local economy and inspired other women to pursue their business aspirations.
TJ said: “I founded Moody Cow Nails with a loan of £12,000, which helped me to set up the shop and buy everything I need to take care of my customers. As well as the financing, Start Up Loans provided me with a mentor, who was there to advise on all aspects of running my first business. That’s what really distinguished the Start Up Loans offer for me – with Moody Cown Nails being my first venture, I really appreciated the counsel”.
Woof the Yorkshire dog shop
Similarly, Natalie Press’ journey to launching Woof The Yorkshire Dog Shop, is a narrative of determination meeting opportunity. With the backing of Start Up Loans, Natalie transformed her passion for pets into a thriving business.
Natalie said: “Woof The Yorkshire Dog Shop was partly set up with my son in mind. He is autistic and won’t work a typical 9-5 office role, so we wanted to provide a path to employment for him that would suit his skills. We have made sure our shop caters to neurodiversity, with areas and shop layout specifically designed not to overstimulate. Our shop welcomes everyone and their pets, which wouldn’t have been possible without the financing from Start Up Loans”.
Benefits of fairer funding
Fairer funding is not merely a matter of fairness – it is a catalyst for a more equitable, vibrant and robust economy, that can also create more jobs and economic growth. By ensuring that all entrepreneurs have access to the financial resources they need, we foster a more vibrant business landscape, rich with innovation and reflective of the society it serves. Around International’s Women’s Day, we want other women to have the opportunity to pursue their ambitions, just like TJ and Natalie have done – that’s why we will continue to back female founders and champion them.
We envision a future where lending is characterised by inclusivity and diversity. It is imperative that we, as an industry, commit to practices that support funding to all groups. We need to create an environment where every entrepreneur, regardless of gender, ethnicity, or socioeconomic background, has the opportunity to succeed.
Start Up Loans remains steadfast in our commitment to lead by example. Our ambition is to hit a 50/50 gender split in loans issued by 2030, to continue to champion diversity, and to create a more inclusive business ecosystem.
