Rt. Hon. Jacqui Smith MP

AURORA/ BT WOMEN LED BUSINESS VENTURES

Can I begin by saying how much I value the energy and focus which AURORA continues to bring to the women in business agenda. You have helped keep the profile of women’s enterprise and women in business high and provided inspiration to countless women starting or growing their businesses.

And let me say why I think this is so important.

I believe passionately that raising the profile of women in business and encouraging more women to start – and grow -businesses is absolutely essential for the economy of UK Plc. Indeed, I would argue strongly that this is an economic imperative if we, as a nation, are to maintain our position as one of the foremost economies in the world.

Just look at the facts:

· In the UK around 26% of all self-employed are women;
· there are roughly 620,000 majority women owned businesses in the UK generating around £130 billion turnover;
· Yet only 15% of SMEs are majority or wholly owned by women.

Only 15%…. and yet, women form the largest under-represented group in terms of participation in enterprise. They stand out as a wealth of untapped talent and economic opportunity – an opportunity for so many women and so many regional and national economies.

Let’s take a moment to draw upon a few overseas comparators and judge just how big this opportunity could be for us here:

· If English regions matched the growth achieved by Canada in the 1990s, for example, that would mean nearly 400,000 more women self-employed across England in the next ten years.

· If the UK had the same levels of female entrepreneurship as the US, there would be around three quarters of a million additional businesses in the UK

· If women in the UK started businesses at the same rate as men, we would have 150 thousand extra start ups each year

And this is why women’s enterprise is crucial: it is a matter of massive potential for our society and our economy.

Many of you will be aware that our Strategic Framework, launched last year, captures our long-term vision to create an environment and culture that encourages more women to start and grow businesses and gives them the support they need.

This is indeed a superb vision but let’s be clear about the work needed to turn this into reality; changing the culture so that more women view the option of enterprise as a positive and achievable aspiration will take time. We need to ensure that enterprise and women’s enterprise in particular is thoroughly embedded in national policies across the range of relevant Government Departments, and, critically, in the strategic plans of those stakeholders in the regions which can truly make a difference.

At national level the Government is playing its part:

You may be aware that, at the end of last month, the Chancellor of the Exchequer and Patricia Hewitt announced measures to provide a boost to the development of women’s enterprise.

· We have asked the Small Business Service to develop a new Action Plan detailing the concrete steps we will take to meet the target that, by 2006, a fifth of all businesses will be owned by women.

· Secondly, we will appoint a new women’s enterprise panel – successful female entrepreneurs – to advise on the SBS Action Plan, explore proposals for a national Women’s Business Council and champion female entrepreneurship.

· SBS is also working to articulate and promote the hard-nosed economic argument for women’s enterprise – so that we can take it to RDAs, Learning and Skills Councils and other strategic players in the regions to press home the importance of women’s enterprise for all our regional economies.

· And just last week, the Small Business Service launched a set of practical guidelines, ‘The Case for Women’s Enterprise’ to provide additional gender-specific focus to anyone in the business of providing first-class support to female entrepreneurs – advisers with Business Link, Enterprise Agencies, banks and many others.

· Elsewhere, you will probably be aware too of our Women and Work Commission – the role of which is to ensure that women get a fair deal at work, fair chances of entering and progressing through work - this will not only support equality, building on strengthened legislation and action on work: life balance but will also improve productivity, harnessing skills and talent, increasing output and earning of every potential worker in a full economy.

· And I announced last week that I am embarking on a series of regional visits between now and March next year, each of which will feature a Women’s Enterprise Roundtable event with the key strategic partners of the regions. My aim is to underline, in the clearest terms, the importance of women’s enterprise to the regions, to call for the accelerated development of Women’s Enterprise Actions Plans in each region and to engage directly with a wide range of business women in those regions.

Which brings me back to the need for us to identify and engage with a whole range of role models who can reinforce the message that enterprise is there as an exciting option for all women.

That is why if it is so important to cite the achievements of women like:

· Sue Palin and Gaynor Pearson from Knaresborough who came from a local government background to set up Keystrokes in 1993. Their business provides IT and technology training to customers all over the UK and they now employ nine full-time staff and many associate trainers.

· And listen to their message to us all on the power of role models and networking. I quote: “The role models for women just aren’t out there – at networking events we are often surrounded by stuffed shirts. But you have to get out there. Network like mad! Make yourself a sponge for what other people have learned.”

And quite right too!

Undoubtedly, women’s enterprise development is gaining an increasingly prominent profile across all nine English regions. Some regions have made it a priority in their business plans, such as the East Midlands where it is flagged as a Star Prize item; several regions have Women’s Enterprise Forums or Boards in formation. Five RDAs are likely to have women’s enterprise coordinators on board by the end of the year.

My key message to all RDAs and to all the other agencies involved in supporting women to set up and grow is that the development of women’s enterprise represents a huge opportunity for us all. It is good for individual women, for those they’re able to employ and for our economy as a whole.

Real progress has been made since the launch of the Strategic Framework:

· All nine English regions are now developing women’s enterprise

· And, most significant of all, over 130 thousand women became self-employed in the last 12 months

· Women’s enterprise is now more firmly on the agenda than ever before in the UK

Just as you have challenges in growing your businesses, so we in government recognise, that there are still many challenges ahead if we are to substantially increase the level of women’s entrepreneurship in the UK. Those challenges will require continued close partnership working both at national and regional levels.

I hope that AURORA will continue to help us keep the focus well and truly on women’s enterprise and women in business.

In closing, I would like to thank AURORA for your commitment and hard work; you are making a real and valuable contribution to the development of women’s enterprise in the UK.

I’m sure you all will have a productive, stimulating and enjoyable evening. Let the buzz begin!