Running a business means learning a new language. Whether you are writing your first business plan, speaking to a lender or setting up a social enterprise, you will encounter business terms for women entrepreneurs that can feel confusing at first. This enterprise glossary explains the words you are most likely to meet as you start, fund and grow your venture in the UK.
According to ONS Business Population Estimates from 2024, there are around 5.6 million private-sector businesses in the UK, and micro-enterprises with fewer than 10 employees make up about 95% of them. The Alison Rose Review of Female Entrepreneurship (2024) reports that women-led businesses now number roughly 1.6 million and contribute around £105 billion to the UK economy. Understanding the terminology is a practical step towards joining them. For more context, see our Women in Business: Key UK Facts page.
Starting and structuring a business
Accountability – being answerable to the people and bodies with an interest in your enterprise. This can include members, funders, statutory bodies, regulators, customers, the local community and the general public.
Business plan – a written document that sets out what your business will do, who it will serve, how it will make money and how it will grow. It is essential when applying for finance or investment.
Charity – a body of persons or a trust that exists to help those in need or to provide educational, scientific, religious or artistic benefit to the public. Charities must register with the Charity Commission if their income exceeds the threshold.
Company limited by guarantee – a company structure in which members do not buy shares. Instead, each member agrees to contribute a fixed amount, often as little as £1, if the company is wound up. Social enterprises, charities, development trusts and community businesses often use this form of incorporation.
Co-operative – an enterprise owned and controlled by the people who use its services or work in it. Profits or surpluses are usually shared among members, reinvested in the co-operative or used to provide member services.
Sole trader – the simplest UK business structure, where one person owns and runs the business, keeps all profits after tax and is personally responsible for any losses. You must register for Self Assessment with HMRC.
Stakeholder – any person or group with a direct interest, involvement or investment in your business. Stakeholders can include employees, customers, suppliers, investors and the local community.
Trustee – a person or institution responsible for overseeing and managing a trust or charitable organisation. Trustees have legal duties to act in the best interests of the charity or trust.
Finance and funding
Bootstrapping – starting and growing a business using personal savings, revenue from early sales and careful cost control rather than external investment.
Bridging loan – a short-term loan used to manage a temporary cash flow gap, often while waiting for funds such as sale proceeds, a grant payment or longer-term finance to arrive.
Capital – money used in a business to generate income. It can take the form of loans, overdrafts, grants or equity investment.
Capital moratorium – also known as a repayment holiday, a period at the start of a loan during which repayment of the capital is deferred. Repayments during this time are usually interest-only.
Cash flow projections – a forecast of all the money expected to come into and go out of your organisation, month by month, over a set period. They help you spot shortages before they happen.
Community Development Financial Institution (CDFI) – a financial services provider, such as a community loan fund or community development venture fund, that has a social mission as well as a commercial purpose. CDFIs can be a useful source of finance for businesses overlooked by mainstream lenders.
Equity – ownership interest in a business. Equity finance means raising capital by selling shares, giving investors a stake in the company in return for funding.
Fixed assets – assets held for the long term to help an organisation achieve its objectives, such as buildings, equipment, furniture, computers and vehicles.
Fixed overheads – running costs that do not change with activity levels, such as rent, business rates, utilities, insurance, accountancy fees and governance costs. They are incurred even when trading is quiet.
Invoice finance – a way to release cash tied up in unpaid customer invoices. A lender advances a percentage of the invoice value, with the balance paid when the customer settles the bill.
Micro-enterprise – a very small business, usually defined as having fewer than 10 employees. Micro-businesses dominate the UK economy; ONS data from 2024 shows around 95% of all private-sector businesses employ fewer than 10 people.
Start Up Loan – a government-backed personal loan of up to £25,000 for starting or growing a business, delivered through the British Business Bank. It comes with free mentoring support. You can read more in our Start Up Loans for women founders guide.
Term loan – a loan repaid over an agreed period, usually in regular monthly or quarterly instalments.
Working capital – the cash available to meet day-to-day costs such as salaries, supplier bills and stock purchases. Healthy working capital ensures bills can be paid as they fall due.
Tax and compliance
Allowable expenses – costs incurred wholly and exclusively for business purposes that can be deducted from your taxable income. Examples include office supplies, travel and professional subscriptions.
Companies House identity verification – a legal requirement introduced in 2025 for new company directors, people with significant control and relevant officers. Existing officers must verify their identity during a transition period. Our guide explains what every director must do now.
Making Tax Digital (MTD) – HMRC’s programme to move tax reporting to compatible digital software. From April 2026, self-employed people and landlords with qualifying income over £50,000 must follow MTD for Income Tax Self Assessment rules.
Self Assessment – the system HMRC uses to collect Income Tax and National Insurance from people who are self-employed, directors or have other untaxed income. Sole traders must register for Self Assessment and file a tax return each year.
Trading allowance – a tax-free allowance of up to £1,000 per tax year for casual or miscellaneous trading income. If your gross trading income is below this threshold, you may not need to report it to HMRC.
VAT registration threshold – the turnover level at which a business must register for VAT with HMRC. For the 2026/27 tax year, the threshold is £85,000 of taxable turnover over a rolling 12-month period.
Social enterprise and impact
B Corp – a certification awarded by B Lab to companies that meet high standards of social and environmental performance, accountability and transparency. It is not a legal structure in itself, but many UK businesses pursue it alongside their limited company status.
Non-profit, not-for-profit and more-than-profit – terms used for organisations that do not distribute profits to private owners. Any surplus is reinvested to further the organisation’s mission.
Social audits – methods of measuring and reporting on an organisation’s social, ethical and environmental performance to its stakeholders.
Social entrepreneur – an entrepreneur who identifies new opportunities and brings them to fruition for public good rather than private profit.
Systems and controls
Financial systems – the procedures, software and controls that formalise how an organisation manages its money. Good financial systems support budgeting, forecasting, reporting and compliance.
Using these business terms for women entrepreneurs
This enterprise glossary is a starting point. These business terms for women entrepreneurs become useful only when you apply them to your own decisions, from choosing a structure to filing your first tax return. If you are ready to take the next step, explore our guides on finance, tax and networking for women entrepreneurs.
