Carolyn Currie – Chief executive of WES

A new survey reveals a stark contrast between the high number of women starting businesses and the low number successfully scaling them.

While women-led businesses now account for 54% of all start-ups in Scotland, the post-start-up pipeline suffers from a 61% attrition rate. Consequently, women-led employers have fallen to just 20% of all businesses.

Carolyn Currie, chief executive of WES, described the situation as a “perfect storm of economic conditions and structural inequalities”. She warned that a significant number of new women-led businesses are “simply falling into an abyss, leaving their economic potential and the ambitions of their founders unfulfilled”.

The study identified severe economic pressures, with 78% of respondents unable to recover increased costs, 55% using personal savings to capitalise their businesses, and 52% making no pension provision.

Structural barriers remain significant. Reported experiences of discrimination have doubled since 2016, affecting 68% of women business owners. The research also highlighted funding inequalities, with women-led businesses receiving just 2.8% of equity investment. Furthermore, 58% of women stated that mainstream business support does not meet their needs.

Despite successive Scottish Government commitments, including up to £2.6 million for 2024-25, WES argues that long-term, strategic investment is critically lacking.

Jo Chidley, founder of Beauty Kitchen and a WES ambassador, reinforced the need for change. “There is a clear appetite from women entrepreneurs for a strategic, long-term model of support,” she said. “If we settle for mediocrity, we accept wasted potential and lost opportunity.”

Despite the challenging environment, optimism persists, with 62% of those surveyed anticipating turnover growth in the next year.