| I want to thank you for inviting me
here this evening. I’m really pleased to be at an event discussing women
in business, or thinking seriously of taking that plunge. I recently spoke
at a lunch for Women in Business, and talking to the women I was struck by
how many of them found it exciting being in the world of work when they
were shaping it. The feeling of being in control, of managing your own
life – these feelings may not appear on a balance sheet but they have a
huge impact on the individual and in the world at large.
The importance of women’s enterprise to the UK
economy is often glossed over – some men still find it difficult to accept
that women can have a business brain, that women have the energy and
commitment to develop a venture. I pay tribute to all female
entrepreneurs, who continue creating wealth and jobs despite all the
obstacles placed in their way.
It is striking that, while female entrepreneurship
in the US stands at 89% of the level of male entrepreneurship, in this
country that figure is only 46%. If we had the same rate of female owned
start-ups as in the USA, we would have 750,000 more businesses. This would
have a major impact on productivity, employment and prosperity.
One reason women are not setting up their own
firms is occupational segregation – where women are over-represented in
certain types of low-paid jobs, and under-represented in other sectors,
such as science or construction. Tackling occupational segregation is
crucial in raising UK productivity and reducing the gender pay gap.
Sectors in which women are poorly represented - construction and plumbing,
for instance - currently have large skill shortages. Encouraging women
into higher-skilled, higher-paid jobs would help us to reduce the current
skill shortages and ensure that women had the opportunity to reach their
potential.
In the UK nearly a million women are self-employed
and this number has increased by around 10% over the last four years. The
most common reason for starting up in business, accounting for 27% of new
businesses, was the desire of the proprietors to be independent – to be
their own boss. Interestingly, around 1 in 5 women come into
self-employment from unemployment compared with around 1 in 15 for men.
According to the recent Small Business Service (SBS)
figures, the percentage of small businesses that are majority-led by women
now stands at around 19%, a rise from 15% in 2003. We await the 2005
survey figures to have confirmation of this rise – if corroborated it
would be very encouraging. There are positive developments in levels of
female graduate entrepreneurship – female students are more likely to be
engaged in entrepreneurial activity than male students. At the moment,
women-owned businesses contribute about £70 billion to Gross Value Added;
about 25% of the UK total, mainly from the growing service sector.
Throughout the UK more than a quarter of a million
black and minority ethnic enterprises are contributing around £13 billion
a year to the British economy. And consider these facts:
Almost one in four businesses in London (22.6%)
can be categorised as Black and Minority Ethnic (BME) owned.
Collectively, it is estimated that BME-owned
businesses employed 510,010 people equivalent to 18.9% of total employment
by businesses in London.
BME-owned businesses are much more likely than
other businesses to be generating sales and making purchases from within
the borough where they are operating.
Despite so much entrepreneurial spirit, the
reality is that there are still a great many disadvantaged people, whether
that relates to ethnicity or gender, or because they are situated in
deprived neighbourhoods.
In December 2004 the Chancellor asked the National
Employment Panel what could be done to increase employment and the
business growth of ethnic minority and faith groups. The Panel, working
with DTI’s Ethnic Minority Business Forum, has made 10 recommendations.
The Chancellor accepted them earlier this year.
Margaret Hodge, Minister of State for Employment, is chairing a
cross-Whitehall working group to take these recommendations forward as
part of a larger task force looking at ethnic minority employment issues.
The Government is working even more closely with
the Ethnic Minority Business Forum on women’s enterprise matters. We are
seeking to bring together many of England’s BME representative
organisations to give us better access to the views of communities. The
East Midlands Development Agency hosted an informal event in Nottingham
just last month for this very purpose.
There are many individual success stories of women
who have ‘set up shop’ on their own account, have made it happen - some
sitting in this room. Let me tell you about two.
All Nations Childcare based in Liverpool started
by Janet Caddick and Alison Burnett. Alison was a qualified nursery nurse
and mother of one, and Janet had worked within a childcare capacity on a
voluntary basis. The twin impetus of lack of childcare provision in
Janet’s area and Alison’s children inspired Alison and Janet to establish
All Nations. This project provides everyday childcare, an after school
club and a Saturday club targeted at 3-11 year olds in two Liverpool
boroughs. Janet and Alison have overcome their initial lack of confidence
and are now “thrilled with their achievements”.
Cupid’s Shoe, based in London and started by Nikki
Onwuka. Despite having a degree in psychology, whatever Nikki did she came
back to sewing. Nikki left England to return to her family home in Nigeria
for many years to set up a clothes shop. Returning to England in 1997,
Nikki took up a job outside the clothes and sewing sector but her passion
for making clothes was still there. After receiving advice from London
women’s business support organisation “Street Cred”, she founded a
successful ethnic bridal design business. Nikki’s advice is “seize
opportunities while you can as they hardly ever come back”. Nikki has
clearly practised what she preaches.
These stories show that women can and are taking
the initiative and succeeding in the small business market. For me, it’s
not just the big picture, the individual stories from women who have
turned their business ideas into reality remain. For all of us, women and
men, having the opportunity, encouragement, and support to try and fulfil
our potential, well it might sound trite in our cynical age – but it’s
important.
Women are making a real impact today as small
entrepreneurs – this is no fantasy or theoretical proposition. So, again
let me thank you for inviting me to speak here today. And thanks to the
DTI Conference Centre for staging tonight’s conference, for events such as
this play an important role in providing an opportunity to hear from those
who have been through the experience of creating a new business. They are
an inspiration to other women who may be toying with the idea but haven’t
yet made the final push to turn a dream into reality. I wish you every
success.
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