Jacqui Smith MP

Everywoman Conference

I'm delighted to have the chance to address you in my capacity as the deputy Minister for Women and Equality, but also as the Minister for Industry and the Regions.

The two roles are closely interlinked, although not everyone can see the connection.

Let me explain. Patricia Hewitt tells a story about a question she was asked by a chief executive of a leading company soon after she became the Trade and Industry Secretary and Minister for Women. He wanted to know what trade and industry had to do with women.

Well, with women making up half the workforce, comprising more than half all full-time undergraduates, and being responsible for the vast majority of consumer decisions, it should have been obvious. But it wasn't and that's a concern for us in Government.

Because we believe in equality as a matter of principle and because it's makes business and economic sense. We know that, in a world of increasing competition, equality and economic success go hand in hand.

We understand that our economy will only be truly successful when it harnesses the skills and talent of half the population - women.

We understand that our future prospects depend on everyone having the chance to fulfil their potential.

And this government understands that as brain replaces brawn as the driving force at work, women's skills and contribution will become ever more crucial to the success and improved productivity of our economy.

And the skills that women excel in - such as project management, interpersonal skills, and high standards of customer service - will become more and more important.

So, to get the dynamic, responsive, successful economy we all want to see, we need equality in the workplace.

We know (because we asked you) that women also want the same opportunities, choices and support as men to make the decisions that will enable them to reach their true potential.

But we also need flexible working practices to make sure that this transition comes about.

Our biggest fear is that we won't be able to balance all the competing demands on our lives. And women feel that the work/life balance is still the greatest challenge facing them.

And is it any wonder?

Women do five times as much domestic work as men and it is still overwhelmingly us who are responsible for looking after the children or arranging childcare facilities.

One way of achieving greater flexibility is to encourage self-employment. Recent EU research showed that women with children were more likely to start a business, men with children less so.

But we also need equality in enterprise - from the largest multi-nationals to the business start-ups.

We know it won't be easy to meet them. To do that, we have to tackle the culture that tells women they don't belong in the boardroom or at the helm of a company. Yesterday, we were pleased to welcome research showing that the number of female directors in FTSE 100 companies had increased by 20% in the last year. But that's still just 1 in 12.

And that's why earlier in the year, Patricia Hewitt asked Laura Tyson of the London Business School to look specifically at how to encourage greater diversity of directors on boards. She has now submitted her report and made a number of recommendations for improving the selection process and for more effective measurement of the diversity of our boards.

We're following this up through a series of meetings with a number of chairs and chief executives of some of our major companies to discuss how we can work together to improve the diversity of their boards.
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British businesswomen are among the best in the world. We know that. Dawn Gibbins, the chair and co-founder of Flowcrete, Meena Pathak, the driving force behind Patak Foods. And, of course, two of our speakers today - Penny Streeter and Zaneb Khan.

As well as all of you in this room.

But there just aren't enough of you. We need more of you and that's why, earlier in the year, we produced a strategic framework document for women's enterprise. You'll find copies of this on the Women and Equality Unit stand.

The figures speak for themselves. For instance, at the moment:

• If women started businesses at the same rate as men, there'd be 100,000 more start-ups a year.
  
  
• Men are one and a half times as likely as women to be an entrepreneur, mainly because - no surprise here - women worry more about failure than men
  
  
• In the US, twice as many businesses are majority owned by women compared to the UK - 28% compared to 14%.

So that's why in Government we have set ourselves some challenging targets. By 2006:

• We want women-owned businesses to account for 18 to 20% of the UK total
  
  
• We want the number of women from minority ethnic communities receiving business support to be proportionate to their numbers in the local population
  
  
• And we want women to account for 40% of customers using business support services that are sponsored by Government

So we need to transform the way we provide business support to women. And this requires a partnership approach. A partnership delivered through central and regional government, through non-governmental organisations such as Everywoman; and, very importantly, through intermediaries like banks and accountants.

But the partnership also has to recognise that women face specific barriers in setting up enterprises. In particular, women find it more difficult than men to access resources. And we're not just talking about financial resources, but also human and social capital.

As a result, many women set up businesses that are under-resourced from the start. A phenomenon that has a long-term effect on their business performance. So we need to have some long-term strategies to tackle these problems effectively.

That's why the Small Business Service has started actively promoting women entrepreneurs.

And we've set up schemes like the Phoenix Development Fund to encourage enterprise among under-represented groups.

A number of the projects focus particularly on encouraging women to get started in business. Organisations like Street Cred, working with minority ethnic women in Tower Hamlets to provide microcredit finance; and Enterprise Direct in the south east, helping lone parents become self-employed.

But we also need to see improvements in mainstream support. We don't want to create a separate structure for women, but rather to make sure that women can increase their uptake of existing mainstream provision.

Making sure the mainstream business support agencies are more responsive to the needs of women starting or expanding their business. Making sure women get the right information at the right time - through better signposting, more visible information points, easier contacts.

Certainly, we'd want to see the regional development agencies take a lead. Many are already prioritising women's enterprise in their development plans.

SEEDA in the South East and Business Link Surrey are leading the way in recruiting a south east regional co-ordinator for women's enterprise, funded jointly by Prowess, SEEDA and SBS.

And in the East Midlands, the local agency has made women's enterprise one of its key strategic priorities and will also be appointing a regional woman's champion.

We also need to knock down the barriers that stop women getting access to finance. So in Government we'll be making sure that more women make use of current loans/grants and equity schemes.

Earlier in the year we extended the Small Firms Loan Guarantee Scheme to cover retail, catering, travel agents and cultural activities. Sectors where women predominate.

But there is still the issue of childcare for women. And that's where the government's National Childcare Strategy comes in.

We're providing funding to expand the number of childcare places available. In addition, business support organisations can help women at the business start-up stage by providing crèche facilities or offering a childcare allowance.

Finally, let me thank Everywoman for organising today's conference that is a vital networking opportunity for women in business. Just looking quickly at some of the stands, there's obviously plenty to keep us all occupied for the day,

We can often feel isolated in our work and these events help to bring us together, giving us the chance to share both the challenges and the opportunities that we face. I wish you all well - you deserve the same chance as men to fulfil your potential - and when you do, we will all gain as the economy benefits from your creativity and innovation. Good luck.