A Strategic Framework for Women's Enterprise
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SMALL BUSINESS SERVICE A STRATEGIC FRAMEWORK FOR WOMEN’S ENTERPRISE Sharing the vision: a collaborative approach to increasing female entrepreneurship SMALL BUSINESS SERVICE The DTI drives our ambition of ‘prosperity for all’ by working to create the best environment for business success in the UK. We help British people and companies become more productive by promoting enterprise, innovation and creativity. We champion UK business at home and abroad. We invest heavily in world-class science and technology. We protect the rights of working people and consumers. And we stand up for fair and open markets in Britain, Europe and the world. • Successful Business • Fair Markets • Science and Innovation This Framework has been developed by the Small Business Service in collaboration with Prowess and the following Government Departments and Devolved Administrations. Department for Education and Skills (DfES) Department for Work and Pensions (DWP) Department of Enterprise, Trade and Investment (Northern Ireland) Department of Trade and Industry, Innovation Unit Department of Trade and Industry, Women and Equality Unit HM Treasury Office of the Deputy Prime Minister, Neighbourhood Renewal Unit Office of the Secretary of State for Trade and Industry SBS Regional Office (South East) SBS, Social Inclusion Unit SBS, Start-ups and Business Support Networks Unit Scottish Executive, Enterprise and Lifelong Learning Department Welsh Assembly Government CONTENTS 1 Contents Page Foreword . 2 Executive summary . .4 Section 1: Context . 10 Section 2: Policy context . .16 Section 3: Background – data and research . 24 Section 4: SBS key delivery themes . 32 Section 5: Key issues – summary . 34 Section 6: Action priorities – customer perspective . 36 Section 7: Action priorities – business support perspective . 46 Section 8: Implications for the SBS . 50 Section 9: Monitoring and evaluation . 52 Acknowledgements and contact details . 54 Appendices Appendix A: Cross-Government Policy Group for Women’s Enterprise and respondees to the review of the draft Strategic Framework . 56 Appendix B: Women’s enterprise initiatives and support organisations in the UK . 58 Appendix C: Good practice guidelines . .66 2 FOREWORD Foreword I am very pleased to be able to introduce this Strategic Framework for Women’s Enterprise. We all know that women already play a significant role in the UK economy, and that more and more women are starting businesses and becoming self-employed. Until now, however, and in contrast with their counterparts in the USA, for example, they have not been able to benefit from the provision of a broad strategic structure for the long-term and sustained development of women’s enterprise. This Strategic Framework represents the first coordinated and collaborative effort by Government in partnership with the Devolved Administrations to tackle the issues which will assist more women to become entrepreneurs and help others to grow existing businesses. In the short to medium term the Framework calls for truly customer-focused services and the full engagement of business support networks, financial intermediaries and others. FOREWORD 3 Its longer-term aim, however, is to change I am committed to the vision, objective and fundamentally cultural and social attitudes to aims of the Framework and am delighted that women’s enterprise. This means challenging the Small Business Service, with Prowess and existing thinking about ‘women in business’ other key partners, will oversee and influence in both the public and private sectors and also its implementation in the months and years to re-examining how we promote enterprise to come. I look forward to celebrating real women – particularly young women – through success and the positive feedback of those the media, schools and higher education, and women entrepreneurs the Framework seeks within local communities. to support. The underpinning concept of the Framework is the recognition of diversity – the diversity in our needs as customers and business people (whether men or women) and the diversity in approach, engagement and delivery of services which that requires. Patricia Hewitt Secretary of State for Trade and Industry I believe this is a critical issue, not just for our and Minister for Women economy, but for society as a whole. Women, and all others in under-represented groups (or disadvantaged communities), must have the opportunity to fulfil their potential – our country cannot continue to thrive without the enterprise and creativity they offer. 4 EXECUTIVE SUMMARY Executive summary Vision, objective and aims The Framework also encourages the sharing of good practice between the English This Women’s Enterprise Strategic Framework regions, between delivery organisations has been developed to provide a collaborative and across borders with the Devolved and long-term approach to the development of Administrations. Similar strategies for women’s enterprise in the UK. women’s enterprise are under development in each of the Devolved Administrations. The long-term vision set out by the Framework is to create an environment and culture that The Framework prepares the ground for encourages more women to start and grow change in a number of areas that affect businesses, and where every woman with the women’s enterprise – from education to the desire to start or grow a business has access financial and business support environment. to appropriate help and support. It proposes ways to encourage that change, and offers guidelines and targets relating to The overall objective is to increase significantly the provision of business support and access the numbers of women starting and growing to finance. It also challenges existing businesses in the UK, to proportionately match Government policies in many of these areas, or exceed the level achieved in the USA. The proposing re-examination and development Framework also seeks to ensure improved of policies in support of the true needs of support for existing women-owned women entrepreneurs. businesses, especially those seeking to grow. This document aims to provide the broad This Framework context and rationale for that objective, to explain the policy context within which it is to The Framework has been written by the be achieved and to highlight the long-term Small Business Service’s (SBS) Ethnic cultural and social change required to meet it. Minority and Women’s Enterprise Unit, with assistance from Prowess (Promoting The Framework aims to support and encourage Women’s Enterprise Support), the UK-wide the development of strategic partnerships in the membership body for organisations providing English regions to champion the implementation business support to women. of change in policy and practice. EXECUTIVE SUMMARY 5 “I have always been a great believer in self-development, but it’s invaluable having support you can rely on.” JACQUI WITHNELL, MANAGING DIRECTOR, INTERIORS, WORK INC 6 EXECUTIVE SUMMARY Its development has been overseen and transition from benefits to self-employment assisted by the Cross-Government Policy and complex issues concerning access to Group for Women’s Enterprise. This group finance. includes representatives from the Devolved Administrations in Scotland, Wales and At a cultural level, there is a failure to Northern Ireland. Members of this group recognise and value the contribution – and are listed in Appendix A. potential contribution – of women-owned businesses to the UK economy. As a result, The Secretary of State for Trade and Industry Government policies and service delivery has personally endorsed its vision, objective have not previously focused on this area and aims. of activity. Ingrained attitudes need to be challenged: success in attracting more women into business will encourage other Rationale under-represented groups and will provide a fresh dynamic to entrepreneurship in the UK. Research findings and the experience of practitioners such as business support organisations provide the rationale for this Policy context Strategic Framework. The SBS policy framework, outlined in Small It is estimated that women constitute around Business and Government: The Way 27 per cent of self-employed people in the UK. Forward 1, provides the broad context for the It is also estimated that only 12–14 per cent of Women’s Enterprise Strategic Framework. businesses are majority owned by women, One of its seven core strategies is to compared to 28 per cent in the USA. The lack encourage enterprise in disadvantaged of reliable data on business ownership communities and under-represented groups. disaggregated by gender continues to hinder Women are the most significant under- the development of evidence-based policy in represented group in the UK. As the Global this area. Entrepreneurship Monitor 2001 UK Executive Report 2 stated: ‘One of the clearest ways for Research has consistently identified specific the UK to increase its level of issues which can make starting and growing a entrepreneurship would be by encouraging business more challenging for women than and supporting more women into business.’ men. These include barriers such as a lack of accessible childcare, inappropriate business Although the SBS provides a focal point for support services, problems making the small business issues in Government, the 1 Small Business and Government: The Way Forward, SBS, December 2002. 2 Global Entrepreneurship Monitor 2001 UK Executive Report, Global Entrepreneurship Monitor, February 2002. EXECUTIVE SUMMARY 7 Cross Cutting Review of Government