Women-led businesses driving growth
Manchester’s women-led businesses contributed £124m to the UK’s economy and created an additional 3,300 jobs in 2015.
The research by NatWest, undertaken in partnership with Development Economics, revealed that female entrepreneurs in the city set up 5,200 businesses in 2015 alone. Female start-ups in the North West contributed £325m to the economy.
According to the data, the only city to create more businesses than Manchester was London with 33,200. In Birmingham 5,100 new businesses were created and in Leeds the figure was 3,700.
Female entrepreneurs contributed £3.15bn to the UK economy overall in 2015. However, despite a strong growth in female entrepreneurship overall since 2009, the number of women setting up a business in the UK still lags behind countries such as Canada and the US, costing the UK economy £1bn a year.
The research revealed that while the proportion of the UK’s female working population starting a business nearly doubled from 3.7% to 7.1% between 2009 and 2012, this has since tailed off, falling every year and standing at less than 5% in 2015.
This is supported by ONS data which shows the number of businesses started by women increased every year between 2006 and 2013 from 58,000 to 139,000, before falling to 116,000 in 2014 and to 126,000 in 2015.
If the UK had sustained 2012’s level of female entrepreneurship growth in subsequent years to reach the levels of its commonwealth counterpart Canada, the UK economy would have enjoyed an additional £1.35bn in 2015.
The proportional population percentage of new female entrepreneurs and women setting up a new business internationally is as follows:
1 Canada 13.5%
2 USA 9.2%
3 Netherlands 7.3%
4 Singapore 7.2%
5 Sweden 4.9%
6 UK 4.7%
7 Germany 3.3%
8 Italy 2.8%
Female entrepreneurs are central to the UK’s economy, setting up almost 1.2 million business between 2002 and 2015.
However, the study found that of all new businesses formed in 2015, around two thirds were set up by men, with women responsible for a third.
Andrea Kelly, director of commercial banking at NatWest, said: “We know entrepreneurs are vital to the economy, and it’s fantastic to see just how much women contribute in Manchester and across the UK, but it’s clear we need to do more to power this growth in the same way our global counterparts do.”
Amy Wordsworth started her Middleton, Greater Manchester business Good Bubble in 2014 after working in marketing mainly bath and beauty brands for a number of years.
Good Bubble manufactures and distributes natural, free-from bath products for children which are aimed at making bath time fun for youngsters.
Wordsworth saw a gap in the market for specialists bath products that were kind to children’s skin and after a year and a half of research and development, she was able to create a range of bath bubble products.
She said: “The first year and half was an incredible challenge as we were trying to develop a product that was natural and free from chemicals but also created bubbles which didn’t sting the eye. I was fortunate as my parents own a business which manufactures toiletries but there was much to learn in getting the product ready.
“We are growing having recently secured a contract to distribute in China and our products are currently available in Sainsbury’s and Holland and Barret stores, as well as online supermarket Ocado.”
“I also had my first child six months ago so I’m finding a different work-life balance as a working mum with my own business.
“Since I own my business there is some flexibility in terms of hours and flexible working is something I am offering my employee as well as I think it is essential to any organisation with working parents. I also have a fantastic group of people around me to support me as a mum and a business woman which makes a huge difference.”
