Female founders receive just 10pc of small business loans

Just 10 per cent of those taking out personal guarantee insurance (PGI) for a business loan over the past five years were women, according to new research.

Purbeck Personal Guarantee Insurance found that in 2022, just nine per cent of policies were taken by women for personal guarantee-backed loans.

Furthermore, the total value of loans supported by PGI amounted to more than £300m in 2022, but just 4 per cent of that value (£12m) was for female founders.

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The analysis appears to support the findings of the latest Rose Review, which found female entrepreneurs were still facing challenges with access to funding.

The report cited YouGov research it commissioned in 2022, which found that more than 50 per cent of female business leaders and entrepreneurs reported finding it hard to access funding and investment in the past 12 months. This compared to just over 40 per cent of their male equivalents.

Furthermore, 44 per cent of female leaders expected fundraising to become more difficult in the coming months.

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“The Rose Review has highlighted that funding remains the number one barrier facing female entrepreneur,s” said Purbeck Personal Guarantee Insurance managing director Todd Davison.

“Women have been less willing than men to take on debt and less aware of different funding options, according to the review. We welcome the initiatives to boost access to and awareness of funding and clearly there is a role for Purbeck to play in making more female founders aware of personal guarantee insurance as an effective way to minimise the risks of personal guarantee-backed loans.”

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