Female entrepreneurship must be supported by the government in order for the economy to grow, a leading business group has said.
The Federation of Small Businesses (FSB) is calling on the government to do more to help boost female entrepreneurship, which it believes is an economic resource the government has yet to fully tap into within its plans to grow the economy.
Women's enterprise contributes around £130bn turnover and £70bn Gross Value Added every year. But if the UK had the same level of female entrepreneurship as the US, there would be 600,000 extra women-owned businesses, contributing an additional £42bn to the economy.
John Walker, national chairman, FSB, said: "The number of female entrepreneurs is strikingly low, and yet increasing the number of women who run their own small business will be good for the economy. The government is looking towards the private sector to put the economy back on track, so it is common sense to increase the number of women-owned firms across the country.
"The US has nurtured female entrepreneurship and now the UK needs to learn from them and do the same. By doing so it will help tackle high unemployment and cultivate an environment for growth. The government can take positive steps to ensure that self-employment is a real option for women and men alike in its Budget this month."
Ahead of International Women's day (Tuesday 8 March), the FSB is concerned that women-owned businesses only make up 29% of self-employed people in the UK despite nearly half of the working population being female.
© Crimson Business. Ltd 2011