Making the future bright for female entrepreneurs Women can struggle to raise capital – that’s why HSBC is stepping up its support of female entrepreneurs. Hillary Clinton once said, “Women are the largest untapped reservoir of talent in the world.” We think she was on to something. Last year, the Federation of Small Businesses found that female-owned and led businesses contributed £221 billion to the UK economy. Despite this, women still struggle when it comes to raising capital. New research from HSBC Private Banking shows that 53% of female founders are denied funding. In the UK, those who do secure funding receive 6% less than their male counterparts. The research also found that during the investment process, 44% of female entrepreneurs were asked about their family circumstances and 41% were asked about their credibility as business leaders. “It is concerning that half of female entrepreneurs in this country have experienced bias when trying to raise capital for their businesses,” says Kirsty Moore, Managing Director at HSBC UK Private Banking. “We have been working with entrepreneurs in the UK for decades but this research shows how far we have to go to level the playing field for women to fulfil their ambitions.” Female entrepreneurs suggest that several things would help give them a better chance of success, including access to networks and mentorship opportunities, working to remove gender bias and improving transparency around the funding process. Breaking down barriers HSBC Private Banking is committed to supporting female entrepreneurs in overcoming the challenges they face when they try to obtain funding. “We know that networking groups are valued by female entrepreneurs, and that’s why we are proud supporters of AllBright and a founding member of the WealthiHer Network, to help women support one another,” Moore adds. AllBright celebrates and champions women to inspire change through members’ clubs, the AllBright Digital Academy and a programme of live events. HSBC Private Banking partners with AllBright on its monthly Pitch Day series in the UK and the US.
Strength in numbers Female founders in the UK receive 6% less funding than their male counterparts 35% of female entrepreneurs experience gender bias when raising capital 58% of female entrepreneurs are concerned about bias when raising capital 44% of female entrepreneurs in the UK are asked questions about their family circumstances during the pitch process Through this partnership, HSBC is involved in mentoring businesses, providing expertise and leveraging its extensive networks to provide female entrepreneurs with extra support. HSBC Private Banking is also a founding partner of the WealthiHer Network alongside some of Britain’s biggest financial institutions. WealthiHer was launched in 2019 to champion the diversity of women’s wealth and support female investors and entrepreneurs. As part of the HSBC Group, one of the world’s largest banking and financial services organisations, HSBC Private Banking seeks to be the leading international private bank for business owners and their families. It provides clients with wealth, business and family succession solutions in the largest and fastest growing markets around the world. Find out how we can help by calling 020 7860 5000 or visiting hsbcprivatebank.com Together we thrive 46% of female founders believe bias could be avoided by having more diverse pitch panels 53% of female entrepreneurs in the UK are denied funding 61% of female entrepreneurs globally pitch to all or predominantly male investors 13% of UK investor panels are all women, the highest of any country globally
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