Shankul Bhandare
Women in Scotland have reached a significant milestone in business, with female entrepreneurs now equalling the number of male entrepreneurs for the first time. A recent report indicates that women were initiating and managing new businesses at almost the same rate as men last year.
The Global Entrepreneurship Monitor (GEM), an annual survey of entrepreneurship, revealed that in 2023, 8.6% of working-age women in Scotland were involved in starting or running a new business, compared to 9.8% of men, a situation the report refers to as “statistical parity.” This is an improvement from 2022, where 7.2% of women and 10.5% of men were engaged in similar activities.
The report was compiled by the universities of Edinburgh, Glasgow, and Strathclyde and highlighted that 300,000 people in Scotland were participating in early-stage entrepreneurial ventures in 2023.
Women now make up roughly half of the early-stage entrepreneurial population in Scotland, a development described as “momentous” by one of the report’s authors. Professor Sreevas Sahasranamam of the Adam Smith Business School at the University of Glasgow told BBC Scotland News, “It is a landmark moment because for the first time ever we are seeing statistical parity between early-stage male and female entrepreneurial activity in Scotland. This is quite significant, considering that in 2020, there was almost a four percentage point gap between male and female entrepreneurship rates.”
However, Prof Sahasranamam noted that the overall climate for creating business opportunities could be improved. He highlighted that a panel of entrepreneurship experts judged the entrepreneurial environment in Scotland to be generally mediocre, with support for women’s entrepreneurship worryingly rated as “less than satisfactory,” scoring below three out of ten.
Becoming an ‘Investable Woman’
Genna Masterton transitioned from her career as a primary teacher to become an educational tech entrepreneur. She is passionate about creating better, happier lives for children and founded her company, Kinoro, in March of this year. Kinoro is an online coaching tool designed for adults to help children, inspired by her teaching days. Frustrated by her inability to help every child all the time, she decided to move from teaching to tech. Masterton’s first few years as an entrepreneur have been both challenging and rewarding.
“I think the highs are when you find yourself surrounded by people who recognize your ambition and want you to become an investable woman. When you create something innovative and scalable on an international level, there’s no stopping you,” Genna said.
Genna realized she was taken seriously and received support to connect with investors globally. However, she acknowledged that while her male counterparts might secure investment after one meeting, it might take her 100 meetings on average. She added, “You either give up or make it happen so that women coming after or alongside me have an easier path.”
Her goal is for her business to go global. Reflecting on her teaching career, she said, “I was frustrated that what I had created wasn’t scalable. By starting a tech business, I could achieve the impact I wanted to have with children and families on a larger scale. It was also about future planning and having flexibility around starting a family.”
Concerns Remain
The GEM report also highlighted that one in five new business owners in Scotland were non-white, with over 24% being the highest level ever recorded. Despite progress in diversity among Scotland’s entrepreneurs, certain issues still hindered people.
Professor Stathis Tapinos of Strathclyde Business School at the University of Strathclyde stated, “While Scotland reached new milestones with female and minority ethnic early-stage entrepreneurial activity, concerns remain around rates of established businesses, fear of failure, and the overall context for entrepreneurship in Scotland, with worrying evaluations by the expert panel. Understanding these and other issues related to entrepreneurial attitudes, perceptions, and activity is important for policy and practice as entrepreneurship significantly impacts the economy and various societal dynamics.”
The study also found that Scotland had the lowest percentage of its population involved in starting or running new businesses among the four home nations, with 9.1%. Wales led with 11.5%, followed by England with 10.8%, and Northern Ireland with 9.7%.
The Scottish government emphasized the need for providing the right support and encouragement to people, regardless of gender or background, to turn business ideas into reality. Employment and Investment Minister Tom Arthur said, “People must be given the right support and encouragement, regardless of gender or background, to make business ideas a reality, and this report shows strong entrepreneurial activity in Scotland. I am encouraged by the progress on female participation and remain committed to ensuring women-led businesses reach their full potential. The Scottish government will continue to play a prominent role in enabling entrepreneurship.”
He mentioned that the deputy first minister recently announced a £5m support package, including a £2.6m investment across programs enhancing early-stage entrepreneurship, with further targeted support for those from under-represented backgrounds.
