ABSTRACT
There has been an increasing interest in recent years in the contribution that female and minority entrepreneurs can make to the economy. There are concerns that they face additional hurdles in starting a business, especially raising finance. They may also have less confidence and are less likely to build networks, which can result in a lower growth potential. Female entrepreneurs are gradually catching up with men, although there has been a reduction between 2016 and 2018 in the UK. Women are more likely to focus on the health and education sectors. They are also more likely to cite family reasons for becoming self-employed. There have been some criticisms of the underperformance approach of women-led businesses compared to their male counterparts and that this gendered approach may not be relevant. Women generally rely on more accessible forms of finance, such as credit cards. They may have lower levels of savings to invest in a new business due to the gender pay gap. Venture capitalists tend to focus on technology and women are less likely to start a business in this sector. Although equal numbers of women study science and technology subjects up to degree level, the number of women registering patents is very low compared to men. Some ethnic minority groups, such as those of Pakistani origin, are more entrepreneurial than others. They are also more likely to be financed by family and friends. The businesses founded by ethnic minorities often tend to focus on particular sectors, such as restaurants and trade with their own ethnic group. Other under-represented groups include the disabled and ex-offenders.
