Access to Finance for Women in Business

Sonia Kumar Excerpts

1st reading
Tuesday 18th November 2025 Commons Chamber

[Sonia Kumar (Dudley) (Lab)]

I beg to move,

That leave be given to bring in a Bill to require the Secretary of State to prepare and publish a report on access to finance for women in business; to make provision about the publication of data relating to access to finance for women in business; and for connected purposes.

The Bill seeks to confront—[Interruption.]

[Madam Deputy Speaker (Caroline Nokes)]

Order. The hon. Lady has an important ten-minute rule motion, and there are far too many private conversations preventing me—let alone the rest of the House— from hearing her comments.

[Sonia Kumar]

The Bill seeks to confront one of the most urgent and entrenched inequalities in our economy: the persistent barriers that women in business continue to face. Despite the entrepreneurial spirit and innovation demonstrated by women across the United Kingdom, they remain significantly under-represented among recipients of capital and public financial support.

The evidence is stark. In 2024, just 2% of UK equity investment went to female entrepreneurs—a decline on the previous year. Over 80% of venture capital funding is allocated to male-dominated businesses, despite research confirming that women-led businesses deliver, on average, a 35% better return on investment. However, women typically start businesses with 53% less capital than men do, and the loans they receive are, on average, 68% smaller.

Approval rates for funding are lower for women, and too often they must pitch to all-male investment panels. Evidence from early-stage equity markets shows that male investors express less interest in female founders, whereas female investors are more likely to back them. For black female entrepreneurs, the challenge is even greater: between 2009 and 2019, a mere 0.02% of venture capital funding went to black women.

This is not just a disparity issue; it is an economic one. The 2019 Rose review estimated that £250 billion could be unlocked for the UK economy if women were supported to start and scale businesses at the same rate as men. Adjusted for inflation, the figure now stands at a staggering £310 billion. That is the scale of the opportunity we are failing to unlock.

Even in challenging economic circumstances, women in my constituency of Dudley continue to lead the way, against the odds. For example, Iron & Velvet, the UK’s only manufacturer of eco-friendly, water-soluble cleaning sachets, is headed by a truly inspirational woman. Debra McDonald, its chief executive officer, told me:

“Investors frequently undervalue or question the ambition of female leaders.”

According to the Black Country chamber of commerce, just 20% of member companies are led by women, and such businesses are even rarer outside London. We cannot allow this to persist. The injustice goes beyond numbers; it holds back potential in every community, from the west midlands to every region of our country.

I welcome the Government’s recent commitment of £400 million to support under-represented fund managers, and the doubling of their investment in female-led venture capital funds to £100 million through the Invest in Women taskforce. Compared with our international peers, though, the UK is simply losing ground. The United States of America stands out globally as the leading country for women-led businesses in 2025. Over the past two decades, female-owned businesses in the US have grown dramatically, with a 100% increase. Between 2019 and 2023, these businesses contributed a whopping 1.4 million new jobs and generated $500 billion in revenue.

Meanwhile, Sweden and Poland are surpassing the UK, with more targeted strategies to improve women’s access to finance. In Sweden, 4.6% of all venture capital funding is now allocated to female-only founded businesses, outpacing the UK’s rate. Poland ranks first in the EU, and fifth worldwide, for female entrepreneurship. The progress in those countries is no coincidence; it reflects deliberate and sustained efforts to empower women in business.

I have a vision for a country where prosperity has no barriers, and where every individual has the opportunity to fulfil their potential—a nation where access to finance is not a privilege but a right, and where women entrepreneurs, small business owners and innovators from every background can turn their ideas into action. This is about fairness, ambition and unlocking the full promise of our people, so that no one is held back simply because of who they are or where they come from.

In this Bill, I propose three core measures, backed by experts, to begin dismantling the barriers. The first pillar mandates transparency and accountability within financial institutions. The British Business Bank would lead this transformation to ensure genuine equity in access to finance. Banks, venture capital firms and public funding bodies would be required to publish gender disaggregated lending data, review their practice on bias, and embed anti discrimination measures across every stage of investment and loan assessment. For too long, a lack of data has hidden the barriers for women entrepreneurship, and this measure brings the inequalities into the light. By exposing where decisions fall short of equity, institutions will be compelled to act—not out of obligation, but because inclusion strengthens our economy. The Bill would ensure that capital is allocated on potential and performance, not prejudice. As Becky Cotton, a pioneering woman in business and the co-founder of Lumino, told me:

“Sunshine is the best disinfectant.”

Secondly, the Bill would direct the British Business Bank and related Government-backed schemes to expand their outreach and set measurable targets. At least 30% of all finance provided should support female-led businesses, and the percentage of equity finance for female entrepreneurs must increase from 2% to 10% by 2030. This reflects a key recommendation from the Women and Equalities Committee’s groundbreaking report on female entrepreneurship.

Thirdly, the Bill would require the Secretary of State to prepare and publish a report on access to finance. I have already laid out the inequality that exists in this area, but mandating the Secretary of State to produce a report is essential for transparency, accountability and progress. Without the clear reporting that this Bill is calling for, the scale of inequality will remain hidden. From that report, we can begin to develop other policies to unlock investment for women and other disadvantaged groups, finally bridging the gap between men and women in finance.

This is not just a Bill for women; it is a Bill for our economy, our communities and our collective future. It recognises that fairness and prosperity go hand in hand, and it will remove the barriers to women’s economic participation. We will all benefit from increased innovation, job creation, stronger families and a more resilient society.

This is a critical moment. Unlocking £310 billion of growth by investing in female-led businesses is not just the right thing to do; it is smart economics. Empowering women and women-led businesses is among the most effective investments we can make as a nation. This Bill is about the fixing the system, not fixing women.

Question put and agreed to.

Ordered,

That Sonia Kumar, Liam Byrne, Sarah Edwards, John Cooper, Dan Aldridge, Gurinder Singh Josan, John Slinger, James Asser, Rachel Taylor, Matt Western and Ms Polly Billington present the Bill.

Sonia Kumar accordingly presented the Bill.

Bill read the First time; to be read a Second time on Friday 28 November, and to be printed (Bill 330).