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Funding woes see nearly 20% of female business leaders ‘delay or cancel plans’

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Almost one in five female business leaders have been forced to scrap or delay their company plans due to difficulties in securing financing, according to new research.

A survey commissioned by banking giant HSBC laid bare the difficulties facing women entrepreneurs, with one in 10 saying that securing the financial support they need was their number one challenge.

The poll of over 1,000 female business owners revealed that nearly half of them are planning to expand their businesses in the UK or overseas next year, but that many are being held back by not being able to access loans or financing.

Without sufficient credit lines, women are too often forced to sit on their innovative business ideas and growth plans, or cancel them completely

Stephanie Betant, HSBC

Nearly one in five (18%) female business leaders see access to funding as a barrier to growing their business, while the research also found that nearly a fifth (19%) have had to postpone or altogether cancel their business plans as they have not been able to access the funding needed.

HSBC unveiled plans to boost the bank’s funding available for British female leaders by £250 million as part of a wider initiative to tackle the issue and “unlock growth opportunities for women-led businesses”.

Stephanie Betant, head of global trade and receivables and lead sponsor for women-led business at HSBC UK, said: “Without sufficient credit lines, women are too often forced to sit on their innovative business ideas and growth plans, or cancel them completely.

“At HSBC UK, we want to drive meaningful change by using our financial expertise and global network to help women-led businesses realise their full potential, helping them to achieve growth and create a stronger economy.”

Despite facing challenges, the survey found that nearly a quarter (23%) of women business leaders do not turn to anyone for support – not even family, friends or colleagues.

HSBC said that alongside the earmarked lending, it will also offer quarterly growth masterclasses with senior leaders at the bank, regular networking opportunities with peers and recognition through annual award ceremonies.

“We recognise that in addition to funding, female business leaders need a support network and access to resources,” said Ms Betant.

“HSBC UK will launch quarterly masterclasses later this year, with each focusing on different growth topics including supply chain management, selecting international markets and advice on business plans and forecasts.”

The fund sees HSBC build on a one billion dollar (£764 million) fund for female entrepreneurs worldwide, which it launched in 2022.

The research, which was conducted by YouGov, polled 1,014 female company leaders – either founders, owners, chief executives or chief financial officers – at firms across the UK between August 30 and September 10.