Wales is outperforming other UK nations for fast-growth firms founded by female entrepreneurs, according to this year’s Gender Index.
Some 12.1% of fast-growth companies in Wales in 2022-23 were female-led – the highest level of all UK nations and English regions. The rate has improved from 11.9% in 2021-22.
Similarly, a total of 34.6% of active companies in Wales in 2022/23 involved women in ownership (either solely or in a mixed-gender team). This is a higher proportion than in any other UK nation.
In 2022/23, female-led active companies in Wales grew turnover on average by 24.1% compared to 20% for male-led companies.
Female-led turnover growth in Wales was the third highest across all UK nations and regions, and above the rest of the UK average of 21.9%.
Over the assessed period there were 22,900 active female-led companies in Wales, which equates to 16.7% of active companies and was slightly improved from 16.5% in 2021/22.
Created by the leading data analytics platform mnAi, the index researched 4.5 million active companies.
The index’s definition of fast-growth is at least a 72.3% growth rate over a three-year period and excludes firms with less than 10 employees.
However, only 18.4% of ethnic minority-owned active companies in Wales were female-led.
This is lower than in England, Scotland and Northern Ireland, although above that in the English regions of the East Midlands, North East, and Yorkshire and the Humber.
Moreover, 16.3% of all active ethnic minority female-led companies in Wales secured external capital. This was below the level in England and Scotland, but above Northern Ireland.
On the investment side while the numbers of business angel investors in Wales remain small in comparison to the rest of the UK, the proportion who are women (28.7%) is higher than in the other UK nations.
Some 15.8% of all active female-led EIS (Enterprise Investment Scheme) qualifying companies in Wales secured external finance, significantly above the rest of the UK.
Jill Pay, chairman of the Gender Index, said: “For the second successive year, The Gender Index has shown an increase in the number of women across the four nations that are setting up companies, which is a further step in the right direction in boosting female entrepreneurship across the UK.
“More young women and ethnic minorities are raising external capital and leading female-owned companies than ever before, reflecting our belief that everyone regardless of age, race or gender should not face barriers to starting a business.
“We recognise that while inspirational women are accessing external capital and leading fast-growth companies, we will not rest until every female-led company can do the same.
“To that end, The Gender Index is an accessible and informative tool that offers an unparalleled view of the progress and challenges that female-owned companies face today.”
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