How Facebook is supporting female-owned businesses
Female entrepreneurs could set up 340,000 extra firms as well as creating another 425,000 jobs — if they get the support they need
Businesses owned by women contribute £105 billion to the UK economy, an increase of 40 per cent from 2012, according to the Federation of Small Businesses (FSB) report, and they are now behind one quarter of private sector employment in Britain, too.
They may account for just a fifth of British small business owners — but they could well be the future of business because they are increasingly becoming the UK’s job makers and growth drivers.
The FSB’s report was launched today at a Facebook Community Boost – a three-day event in London which aims to empower local businesses and active community members through a series of workshops, training and networking sessions. It celebrates the fabulous contribution that businesswomen make to Britain. Yet it’s not adequate to merely chart the progress made: to ensure women continue to found businesses and that they thrive, the FSB has partnered with Facebook on the brand’s pioneering #SheMeansBusiness programme, along with Enterprise Nation and AllBright.
Empowering women
Established two years ago, the community platform has supported, inspired and empowered 13,000 UK women to not only start a business, but to grow it by offering them a network, training, tools and advice. It’s vital that we back these female founders, says Louise Stewart, the FSB’s director of communications, because when small businesses grow, they hire more people and inspire others to launch a business.
“Small businesses make up more than 99 per cent of private sector businesses in the UK and account for 60 per cent of private sector employment,” she says. “So they really are crucial to growth and innovation in this country. That’s why it’s so important we back them. The economy really depends on them.”
While more women are becoming entrepreneurs, they still aren’t establishing businesses at the same rate as men — particularly in the manufacturing and STEM (science, technology, engineering and math) sectors, in part because there tends to be fewer women working in those industries. Ruby Peacock, the FSB’s deputy head of public affairs, notes that women entrepreneurs face several challenges in any industry. She says: “They don’t feel they have the access to the business support they need to grow. And it’s always difficult to balance work and family life — an issue for all business owners but a particularly difficult challenge for our female members.”
Lack of confidence
Research conducted by YouGov and Development Economics for Facebook in 2016, found that although one in 10 women — the equivalent of 2.7 million people — want to start their own company, 25 per cent of those surveyed are held back by a lack of confidence. Some 24 per cent feel they don’t possess the right business skills, and another 34 per cent believe access to funding is their biggest barrier to establishing a business. That’s why the FSB is working with Facebook on its global Community Boost programme, to empower women across Britain with the skills and connections they need to succeed as small business owners both at home and abroad. It’s an example of how Facebook is helping SMEs grow by fostering strong links with trade bodies.
A Facebook Community Boost event today and tomorrow at London’s Millbank Tower will provide a series of workshops and talks to help boost your digital skills, expand your network and use Facebook’s apps to drive business growth. Some 55 per cent of the FSB’s women members want better online skills because they are a way to market, expand, export and hire talent.
This year Facebook found that there are extra advantages to joining business networks, with 49 per cent of female founders telling Facebook the chance to network with like-minded entrepreneurs would help their business. Women business-owners who are part of these empowering communities are twice as likely to forecast growth compared with those not in networks. After all, it’s often who you know, not what you know, that counts in business.
Role models
While many women see the value of connecting with other entrepreneurs, half said they were not part of a business network. And a third of businesswomen don’t know how to find these groups. “The #SheMeansBusiness programme provides the role models that our members are telling us they want more of, allows women to network and meet other women who have been successful, share tips, advice and get support,” Stewart adds.
Encouraging more women to pursue their passions and set up businesses could bring further benefits for the British economy. If only one in five women who want to start a business fulfilled their ambition, they could build more than 340,000 new companies — creating 425,000 jobs and boosting the economy by more than £10 billion. So women really could be the future of business in the country.
As Lina Bourdon, the FSB’s women in enterprise lead, says: “Developing and supporting women’s enterprise is proven to be critically important for economic prosperity. The Government must now address this untapped potential with a range of suitable measures, such as career advice, role models, and access to business support and finance.”
To find out more, visit facebook.com/communityboostlondon