As a woman running a small business, I have spent years watching the UK enterprise landscape shift. More women are starting and running businesses than a decade ago, yet the gap between men and women remains stubborn. Why do so many UK women stall at the dreaming stage instead of turning business dreams into reality? The 2019 Alison Rose Review of Female Entrepreneurship found that only around one in three UK entrepreneurs is a woman, and if women started businesses at the same rate as men the economy could gain an extra £250 billion and up to one million more businesses.

That gap is not because women lack ambition. Research consistently shows that large numbers of women have considered self-employment or starting a company. The difference lies in how many actually take the leap. GEM UK 2023 data finds that women are less likely than men to believe they have the skills, resources or networks to start a business, and more likely to cite fear of failure as a barrier.

This low correlation between dreaming and doing is even harder to explain when so many employed women are unfulfilled at work. 2023 research by the Chartered Management Institute and the Fawcett Society continues to highlight that women are more likely than men to feel undervalued, underpaid and overlooked for progression. With work taking up so much of our waking lives, it seems strange that so many talented women stay in roles they dislike rather than building something of their own. For the latest UK figures, see Women in Business: Key UK Facts.

So, why the disparity? Two reasons stand out.

Fear of failure holds women back

The most commonly cited barrier is the fear of what happens if it all goes wrong. I wrote recently about impostor syndrome; that nagging sense that you are not qualified or capable enough does not disappear with experience. Even now, with my agency well past its seventh birthday, I still have moments of doubt.

Some of that fear is fuelled by survival statistics. ONS business demography data for 2023 shows that around one in five new UK businesses do not survive their first year, and roughly half will have ceased trading within five years. There are two ways to read those numbers. The first is that failure is common, so you will be in good company if things do not work out. The second, more useful reading is: why can’t my business be the one that survives?

Women in male-dominated sectors such as technology, engineering, construction and digital marketing often worry they will not be taken seriously. Outdated stereotypes persist: the phrase “woman with her own business” still conjures images of home-based hobbies rather than high-growth ventures for some people. That can make the prospect of a public failure feel even more exposing. Yet the evidence suggests women make excellent entrepreneurs. The 2019 Alison Rose Review highlights that women-led businesses tend to have lower failure rates than those led by men.

Would-be businesswomen should also remember that failure, when it happens, is rarely final. Most successful entrepreneurs have at least one setback behind them. The important thing is to treat failure as data: what worked, what did not, and what to do differently next time.

Starting a business feels too complicated

The second major barrier is the sense that starting a business is simply too difficult. Here, it is worth distinguishing between two groups. Some women like the idea of owning a business but do not want the process of building one. That is not a failing; it is a sign that self-employment may not be the right path. There is a difference between wanting to speak a language and wanting to learn one, or between wanting to have written a book and wanting to write one.

However, there are plenty of women who are willing to do the work but feel genuinely overwhelmed by where to start. The practical hurdles are real: choosing a legal structure, registering with HMRC and Companies House, understanding tax and National Insurance, finding customers, raising finance, and balancing caring responsibilities. The Rose Review identifies access to funding, networks and childcare as persistent barriers for women, with women-founded start-ups still receiving only around 2% of UK venture capital investment according to 2023 British Business Bank and Beauhurst data.

The good news is that support is more accessible than ever. The British Business Bank’s Start Up Loans programme has provided thousands of women with low-cost finance and mentoring. The Investing in Women Code, backed by HM Treasury, now has hundreds of signatories committed to improving women founders’ access to finance. Your local Growth Hub can point you to training, funding and networking in your area. For women-specific advice, Prowess has practical guides including Start Up Loans Female Founders and Sole trader vs limited company UK to help you move from idea to trading.

How UK women can turn business dreams into reality

Ultimately, both fear and complexity come down to confidence, and the best way to build confidence is to acquire the skills that prove you can do it. Since starting my business, I have taken part in leadership and management programmes, and I am still learning. GEM 2023 research continues to show that entrepreneurship training is strongly linked to higher confidence, greater opportunity recognition and higher start-up rates. With so many free and low-cost courses available online and in person, there is no reason to wait.

Action steps: from dreamer to doer

• Test your idea with five potential customers before you register anything.
• Speak to your local Growth Hub or Start Up Loans Female Founders about finance and mentoring.
• Choose your legal structure using our Sole trader vs limited company UK guide.
• Register for HMRC Self Assessment and, if relevant, Companies House identity verification.
• Join one women-focused network to build confidence and find peers.

Whatever approach you take, the goal is the same: to see more UK women turning business dreams into reality. By building skills, confidence and knowledge, and by using the support that already exists, more women can move from “I wish I could” to “I did”. The UK economy, and every woman who takes that step, will be better for it.