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Prowess National Policy Centre

Gareth Thomas MP,  Former Minister for Trade, Development and Consumer Affairs (jointly with DFID)
Number 11 Downing Street, London,  30 October 2008

I’m pleased to join such an International gathering for the launch of the Prowess National Policy Centre. It sends out a significant signal of the importance this Government attaches to the development of women’s enterprise.

The funding from BERR has created the first women’s enterprise research centre in Europe. It will be a source of expertise to help inform our policy to increase the number of women-owned firms in the UK.

We are experiencing unprecedented turbulence in the global economy. We have announced a series of measures to help small and medium businesses already – there will be more.

• We have ensured that the high street banks have committed to maintain lending to SMEs at a level equivalent to that of 2007. We will monitor how the Banks are delivering their commitment on SME lending.
• All the main UK lenders are being encouraged to access new lines of credit, made available by the European Investment Bank, to fund SME lending. This could be worth around £4bn over the next four years.
• Steps are also being taken to help ease cash flow problems. The Prime Minister has committed the Government to paying its bills as soon as possible, and we will aim to do this within ten days.
• We want local authorities to do so too.

In the longer term, this Government remains determined to make the UK the best place in the world to start and grow a business.

In the UK as elsewhere in the world - small businesses are the backbone of our economy – comprising over 99% of all UK businesses; contributing as much as large businesses to UK output; and employing nearly 60% of the private sector workforce. They are vital to the UK’s long-term economic health.

However there is huge potential in the UK and across the globe for more women led businesses.

However, women are currently the largest under represented group in enterprise and offer a wealth of untapped talent and economic opportunity.

Women comprise 52% of the UK population, and 46% of those active in the labour market. However, only 16% of the almost 5 million UK firms are majority women-led.

The US has 20% more businesses per head than the UK. A significant proportion of this gap is explained by much lower rates of women’s entrepreneurial activity in the UK.

This goes to the heart of the UK’s productivity and competitiveness. If we matched US levels of female entrepreneurship there would be 900,000 more businesses in the UK

The economic case for developing women’s enterprise is evident. Governments’ around the world are taking steps to make it happen. More though needs to be done.

The commitment from all you is helping remove the barriers preventing women from successfully starting and growing their businesses.

In concluding: I encourage you all to get involved in your countries in the first Global Entrepreneurship Week (17-23 November). This provides a real opportunity to promote enterprise to girls and women.

In doing so you will be helping to encourage future generations of female entrepreneurs.

Thank you for taking the time to listen. I will now hand over to Jackie Brierton to tell us more about the Prowess National Policy Centre.