Report show strength of female-led small businesses

A major quarterly report of nearly 12,000 small to medium sized businesses reveals the strength of female led firms.

The Small Business Research Trust (SBRT) Quarterly Report is being re-launched later month with a new author, the University of Liverpool Management School (ULMS), a new sponsor, HSBC Bank, and a new partner in the business pressure group the Forum of Private Business (FPB).

One of the key fingings of the report is that it shows that female-led businesses are successful and they are optimistic of future growth.

In total, 44 per cent of female-led firms recorded sales growth in the third quarter of 2004, seven per cent more than businesses overall taking part in the survey. Meanwhile, 45.7 per cent of female-led businesses expected growth in the final quarter of 2004.

Employment is another a strong area, with 27.7 per cent of female-led firms reporting growth in the third quarter of 2004, ten per cent more than businesses overall in the survey. Furthermore, 20 per cent of female-led firms expected to take on more staff in quarter four of 2004 - again more four per cent than the businesses overall in the survey.

Sectorally, the survey sheds light on the industries female owner managers are drawn to. The three main sectors being wholesale and retail 34 per cent, real estate 21 per cent and education/health 15 per cent.

The report shows female-led firms are predominantly, 40 per cent, in the micro businesses size category, employing between one and four people, with a further 26 per cent in the five to nine employee category. However, in the employment category of 10 to 19 employees, the number of women leading firms falls to 16 per cent, and falls even further, to just 14 per cent, in the 20 to 49 employees category .

FPB Chief Executive Nick Goulding said the report is strong evidence that the Government is right to adopt measures to encourage female entrepreneurs to set up in business.

"It is vital we see more women going into business and driving the UK economy,' he said. "If women started up businesses at the same rate as men, 150,000 extra new firms would be created every year. A glittering prize is within grasp for the UK if we can harness the entrepreneurial potential of women. The Government has set itself an ambitious target to increase the number of female owned businesses to 20 per cent of the UK business stock by 2006. That target needs the support of the political, business and media worlds if it is to be achieved from its current level of 15 per cent of the UK business stock."