How Women-Owned Businesses Drive Growth and Reducing Risk

Divya Trivedi

1 month ago

Our platform analysed 159,663 female-owned and 1,022,369 male-owned companies aged between 5 and 10 years, focusing on financial risk, CCJs, industry performance, and regional strength. We saw some exciting insights. Female-owned businesses consistently outperformed male-owned counterparts, showing lower financial risk (31.89% vs. 25.76%), fewer CCJs (23.20% vs. 27.66%), and strong results across critical sectors.

According to this analysis, Partnering with female-led businesses offers reduced financial risk and more significant growth opportunities.

Why partner with Female-Owned Businesses?

Partnering with female-owned businesses offers a unique competitive advantage:

They showcase innovation and growth potential, often driving industry advancements.
Their lower risk profile reflects more stable and sustainable practices.
Additionally, they are known for better financial management and efficient resource management.
Female leaders often excel in industry leadership, fostering inclusivity and fresh perspectives, making them valuable collaborators in any sector.

Risk Analysis

Female-owned businesses are outperforming male-owned businesses across multiple risk categories. A higher percentage of female-owned companies (31.89%) fall into the very low-risk category compared to male-owned (25.76%), indicating more substantial financial stability. Additionally, fewer female-owned businesses (23.20%) face high risk than male-owned businesses (27.66%). The gap is also visible in the moderate risk category, where female-led firms are slightly better positioned (12.61% vs. 14.60%).

These insights show that female-owned businesses have a more stable and lower-risk profile, making them potentially safer and more reliable partners for investment and collaboration.

CCJ and Grant Comparison

CCJs and grants between male- and female-owned businesses clearly show that female-owned companies have fewer County Court Judgments (CCJs) in both total and new cases. However, they also receive fewer grants compared to male-owned businesses.

Key insights:

All CCJs: Female-owned businesses have fewer (7.45%) than male-owned (8.83%).
New CCJs: Female-owned businesses again have fewer (5.81%) than male-owned (6.61%).
Grants: Male-owned businesses receive more grants (0.30%) compared to female-owned (0.11%).

This highlights that female-owned businesses face lower financial risk but could benefit from better access to funding through grants.

Industry Dominated By Females

Women are making significant strides in key industries, especially in sectors focused on care, education, and technical services. Female-owned businesses dominate in Health & Social Work (58%) and Education (62%), playing critical roles in community care and shaping future generations. In Professional, Scientific & Technical Activities (52%) and Human Health Activities (60%), women are driving innovation and delivering critical healthcare services. The Personal Services sector (65% female-owned) highlights women’s entrepreneurial success in beauty, wellness, and lifestyle businesses. Their leadership across these industries reflects their growing influence in both societal well-being and economic growth.

Why Female-Owned Businesses are Strong Regional Partners

Regional Comparison

This regional comparison highlights the distribution of female- and male-owned businesses across key regions in the UK. Female-owned businesses have a slightly higher concentration in London (27.04%) than male-owned businesses (26.18%), emphasising the strong presence of female entrepreneurs in the capital.

In the South East, female-owned companies also have a significantly higher share (14.99%) than male-owned businesses (13.37%). Other regions, like the North West, East of England, and West Midlands, display relatively similar distributions, though female-owned companies maintain a slightly higher presence overall.

This data shows that female entrepreneurs are making strong contributions across major regions, with particularly higher representation in London and the South East, two critical hubs for business in the UK.