In March 2009, Aaron Barbour, then Research and Policy Manager at linksUK, asked the Prowess Annual Conference whether disadvantaged groups benefit from enterprise. His speech, delivered at the Worklessness and Enterprise workshop in Blackpool, drew on more than a decade of research in Newham, east London, where money and work were immediate, pressing issues. More than fifteen years later, the structural barriers he identified have evolved rather than disappeared. This article revisits his 2009 analysis and sets it against the UK policy landscape in 2026.

Barbour’s original 2009 argument

Barbour’s research rested on a simple but powerful set of statistics. One in five women entered self-employment from unemployment, compared with one in fifteen men. Women were twice as likely as men to live in poverty. Benefits and tax credits comprised one fifth of women’s income, but only one tenth of men’s.

Because women’s incomes relied more heavily on the social-security system, it mattered enormously that the system reflected the way women actually worked. Women’s businesses typically operated part time, around caring responsibilities, with variable hours, longer start-up times and fluctuating incomes. The security of a low but regular benefit payment often looked safer than the risk of self-employment.

At the time, the main route from unemployment into enterprise was the New Deal Self-Employment option. Barbour was scathing: take-up was low, women were less likely than men to use it, the 18-month qualifying period left people demoralised, the test-trading period was too short, and Jobcentre Plus staff often lacked understanding of enterprise. When the formal system failed, people turned to family, friends, enterprise agencies, micro-credit or the informal economy.

Disadvantaged groups benefit from enterprise in 2026

Some structures have improved. The New Deal has been replaced by Universal Credit and targeted employment support. The New Enterprise Allowance now offers mentoring and a start-up allowance to people on certain benefits who want to become self-employed. The Universal Credit taper rate was reduced to 55p in the pound by HM Treasury in 2021, so claimants keep more of each pound they earn above their work allowance. From April 2026 the National Living Wage is £12.21 per hour for workers aged 21 and over, according to gov.uk.

Childcare policy has also shifted. The Department for Education’s 2025 expansion means eligible working parents in England can now claim 30 hours of funded childcare from the term after their child turns nine months old. For self-employed parents, this matters because irregular income and variable hours have historically made it hard to meet the earnings thresholds for support.

Recognition has grown too. The Women in Business: Key UK Facts page tracks how women are now a permanent, sizeable minority of the UK’s business owners. Yet the overall picture for disadvantaged women is still concerning. ONS labour market data shows women account for approximately one-third of the UK’s self-employed workforce, but they are concentrated in lower-income sectors such as caring, cleaning, creative services and personal services.

Persistent barriers in 2026

Universal Credit and the Minimum Income Floor

Universal Credit has simplified parts of the system, but it has introduced new complexities for the self-employed. Claimants must report earnings monthly. After a 12-month start-up period, many face the Minimum Income Floor, which can assume a level of earnings they have not yet reached. This is particularly difficult for women whose caring responsibilities or health conditions limit the hours they can work, and for businesses that need longer to become established.

Childcare that does not match business hours

Despite the expansion of funded childcare in England, many women find that the hours available do not match the irregular hours of a new business, and upfront costs can still be prohibitive. Without affordable, flexible childcare, enterprise is not a realistic option for many disadvantaged mothers. You can read more about eligibility in our guide to Free Childcare Self Employed UK: The 30-Hour Offer Explained.

Access to finance

Access to finance remains a hurdle. According to the British Business Bank’s 2025 Small Business Finance Markets report, all-women founder teams received less than 2% of UK equity investment. Mainstream business lending can be hard to obtain for those without assets or a trading history. Microfinance, community development finance institutions, Start Up Loans for Female Founders and Business Grants For Women in UK can help, but they are not available at the scale needed.

Poverty is still gendered

Poverty remains gendered. The Joseph Rowntree Foundation’s UK Poverty Report 2025 found that around half of children in single-parent families live in poverty, and roughly nine in ten single parents are women. For these groups, the interaction between earnings, benefits and caring costs is still make-or-break.

What needs to change now

Barbour’s 2009 recommendations still resonate. Updated for 2026, the agenda should include:

• Enterprise and self-employment should be a genuine option for anyone receiving benefits or tax credits, with clear, consistent advice.
• The Department for Work and Pensions, HM Revenue and Customs and the Department for Business and Trade must integrate benefit, tax and enterprise policies, and test any changes for their interaction with other systems.
• Jobcentre Plus and HMRC must improve administration, communication and training so front-line staff understand self-employment and can explain options such as the New Enterprise Allowance.
• The Minimum Income Floor and start-up period should be assessed in ways that reflect real business income and the caring responsibilities of women, rather than arbitrary time limits.
• Specialist self-employment support, including mentoring, microfinance and childcare, must be embedded in employment programmes rather than treated as an afterthought.

Action steps if you are considering enterprise

• Check your Universal Credit position before you start trading. Use the gov.uk Universal Credit guidance to understand the start-up period, reporting rules and Minimum Income Floor.
• Calculate the real cost of childcare against your expected earnings. Our free childcare guide explains the 30-hour offer for self-employed parents.
• Explore non-bank finance early. Start Up Loans, community development finance institutions and women-specific grants can fill gaps left by mainstream lenders.
• Record your income and expenses from day one. From April 2026, self-employed people with income over £50,000 must keep digital records under HMRC’s Making Tax Digital rules.
• Speak to a specialist enterprise adviser or work coach who understands self-employment, and ask specifically about the New Enterprise Allowance.

When the formal system does not provide the support people need, they still turn to alternatives: family and friends, enterprise support organisations, specialist micro-credit organisations or the informal economy. That was true in 2009, and it remains true in 2026.

Disadvantaged groups benefit from enterprise, against the odds. The real question is whether public policy will remove the barriers that make enterprise harder for the people who could benefit from it most. For women in the UK running or starting a business, understanding those barriers is the first step towards navigating them.

This article is based on a speech by Aaron Barbour, linksUK Research and Policy Manager, at the Prowess Annual Conference’s Worklessness and Enterprise workshop in Blackpool, March 2009. It has been updated with current UK context for 2026.