Access to capital remains a significant barrier to growth for women-led small businesses, according to new research conducted by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO).
The survey of more than 600 Australian women-owned, women-led small businesses has revealed 43 per cent of the respondents identified access to capital as a primary barrier to growth.
Ombudsman Bruce Billson said that the results are “disappointing” to report on the occasion of International Women’s Day, as a significant number of women still face such difficult challenges.
“On International Women’s Day, it’s important to recognise the obvious economic benefits that would flow from addressing barriers to growth for the rapidly increasing number of Australian women small business owners,” Billson said.
Recent research indicates that two-thirds of new businesses created in Australia in the past decade have been founded by women (Xero Boss Insights 2021) and that there was a 46 per cent jump in women business owners over the past 20 years (Australian Bureau of Statistics).
The recent State of Australian Startup Funding report also found that 82 per cent of female founders believe gender impacted their ability to raise venture capital funding, and only 10 per cent felt highly confident they would raise their next funding round, compared to 63 per cent of male founders.
“Globally, the World Bank reports access to finance is a ‘major hurdle’ as women are left with an estimated $1.7 trillion of unmet demand for credit,” Billson said. “By reducing headwinds and energising female enterprise there is a significant economic upside. Research by Asialink suggests boosting the number of female business owners to equal that of men, could add between $70 billion and $135 billion to our economy.
“Women’s economic empowerment is key to our national recovery after an incredibly challenging couple of years,” Billson added. “My office will continue its work in identifying opportunities to improve the environment for small business and women’s entrepreneurship.”
