Women Achieve Parity with Men in Business Start-Ups for the First Time

In Scotland, the number of female entrepreneurs has now caught up to that of men, marking a “landmark moment” for the country’s economic community.

According to the report, last year’s rate of women launching and operating new enterprises was almost identical to that of men.

An annual assessment of entrepreneurship, the Global Entrepreneurship Monitor (GEM), revealed that in Scotland, 8.6% of working-age women were running or starting a new firm in 2023, compared to 9.8% of men. This is what the report refers to as “statistical parity.”

In contrast, 10.5% of males and 7.2% of females will be in this group in 2022.

The report was prepared by the Universities of Edinburgh, Glasgow, and Strathclyde.

It stated that 300,000 individuals in Scotland were involved in early-stage entrepreneurial activities in 2023.

One of the report’s authors described women making up roughly half of that number as “momentous.”

Professor Sreevas Sahasranamam from the Adam Smith Business School at the University of Glasgow remarked, “This is a landmark moment, as we are witnessing statistical parity for the first time between early-stage entrepreneurial activities of males and females in Scotland.”

 “This is significant because, just four years ago in 2020, there was a nearly four percentage point gap between the entrepreneurship rates of men and women.”

Yet, Prof. Sahasranamam noted that there is room for improvement in the general environment for generating business prospects.

He said, “It is important to note that a panel of entrepreneurship experts found the environment for entrepreneurship in Scotland to be generally mediocre. The level of support for women’s entrepreneurship was particularly concerning, scoring less than three out of 10 and deemed ‘less than satisfactory.'”

Becoming an ‘Investment-Worthy Woman’

After working as a primary school teacher for a while, Genna Masterton decided to become an educational tech entrepreneur.

Since she is so committed to making children’s lives better and happier, she registered her business, Kinoro, in March of this year. It’s an online coaching tool that allows adults to support kids.

It drew inspiration from her teaching experience.

She aimed to ensure her students were ready to learn and motivated. Frustrated by her inability to help every child all the time, she transitioned from teaching to technology, creating a coaching tool to bridge the gap.

Her initial years as an entrepreneur have been both challenging and rewarding.

The best times, in my opinion, are when you’re surrounded by supportive others who value your goals and want you to develop into a financially successful lady. “There’s no stopping you when you do something innovative and build a business that can scale internationally,” the speaker remarked.

Genna realized that people were paying attention to her and that they were helping her connect with investors worldwide.

However, she also knew that, compared to her, it might take her 100 meetings on average to raise investment, while her male competitors might only need one meeting.

She went on, saying, “You either give up and stop trying, or you’re going to make it happen so that the women who follow me or work alongside me, we make it easier for those who come after us.”

She hopes her business will achieve global success.

As a teacher, I was annoyed that what I had made wasn’t scalable, the woman remarked. I could have the large-scale influence on kids and families that I intended to have by launching a tech company.

“I believe it was really about planning for my future, considering the flexibility I would need when starting a family.”

Concerns remain’

Additionally, one in five new business owners were non-white, according to the GEM survey. This was the highest level ever recorded, at almost 24 percent. 

The diversity of Scotland’s entrepreneurs was improving, but there were still specific problems preventing people from progressing further.

“Professor Stathis Tapinos from Strathclyde Business School at the University of Strathclyde noted, ‘Although Scotland has achieved new milestones in female and minority ethnic early-stage entrepreneurial activity, there are still concerns about the rates of established businesses, fear of failure, and the overall entrepreneurial environment in Scotland, as highlighted by the expert panel’s evaluations.’

Addressing these issues, along with understanding entrepreneurial attitudes and perceptions, is essential for developing effective policies and practices. Entrepreneurship plays a vital role in influencing the economy and broader societal dynamics.”

According to the survey, Scotland received the lowest score among the four home nations, with 9.1% of its population engaged in launching or operating new firms.

First place went to Wales (11.5%), then to England (10.8%), and Northern Ireland (9.7%).

Regardless of gender or background, people should be given the proper assistance and encouragement, according to the Scottish government, which also noted that the research demonstrated a high level of entrepreneurial activity in Scotland.

Tom Arthur, the minister of employment and investment, stated: “This report demonstrates strong entrepreneurial activity in Scotland. Everyone, regardless of gender or background, should receive the necessary support and encouragement to turn their business ideas into reality.

He stated that the deputy first minister had just announced a £5 million support package, which included a £2.6 million investment in early-stage entrepreneurial programs and further targeted support for people from underrepresented backgrounds.