More than a decade after Barclays Wealth suggested that the UK’s highest-earning women founders beat the gender pay gap and out-pay their male peers, the broader labour market still shows a stubborn pay divide. The Office for National Statistics (ONS) reported that in 2024 median hourly pay for all employees was 13.1% lower for women than men; among full-time employees the gap was 7.0%. Yet for women who build and control their own high-performing companies, entrepreneurship remains one of the most powerful ways to tie reward directly to results rather than to corporate salary bands.

The original Barclays research, Unlocking the Female Economy: The Path to Entrepreneurial Success, found that women in the top income bracket were just as likely as men to be business owners, and that their wealth was typically self-made. Because these women’s pay was linked to company performance rather than negotiated in a traditional employment setting, they were able to bypass the usual pay-gap dynamics. While today’s data on the very wealthiest founders is patchier, the principle still holds: owning the business changes the rules on remuneration.

That is not to say the playing field is level. The 2023 Rose Review update estimates that women-led businesses still make up only around one in five UK companies, and female founders receive a tiny fraction of venture capital. According to the British Business Bank’s 2023 Small Business Finance Markets report, all-female founder teams attracted only about 2% of UK equity investment in 2022, with the vast majority going to all-male teams. Closing that gap is not only a fairness issue but an economic one. The 2019 Alison Rose Review of Female Entrepreneurship estimates that if women started and scaled businesses at the same rate as men, it could add up to £250 billion to the UK economy.

The state of female entrepreneurship in the UK

The good news is that progress is visible. The 2023 update to the Rose Review reported that 151,840 all-female-led businesses were incorporated in 2022, up from 56,000 in 2018. The number of women-led employer businesses is also rising, and sectors such as technology, professional services and health are seeing strong female founder representation.

However, scale remains the challenge. Many women-led businesses are solo ventures or micro-businesses, and women are less likely than men to seek external finance. The British Business Bank’s research shows that women are more likely to be discouraged from applying for finance and, when they do apply, are more likely to be turned down or to receive smaller amounts. Addressing these barriers is essential if more women are to move from starting a business to leading a high-growth one.

Access to finance

Finance options for women-led businesses have expanded considerably since 2013. Traditional bank loans and overdrafts are now complemented by a range of alternatives:

• Government-backed schemes: The British Business Bank and its Start Up Loans programme continue to support new businesses, including those led by women, with loans, mentoring and guidance.
• Women-focused funds and investors: New funds and investor networks continue to emerge, connecting female founders with capital. Networks such as Angel Academe, Alma Angels and Investing Women Angels link women founders with angel investors who understand the specific barriers women face.
• Crowdfunding: Platforms such as Crowdcube and Seedrs allow founders to raise capital from customers and supporters. Evidence suggests that female-led campaigns can perform particularly well when the story and community are strong.
• Revenue-based finance and grants: For businesses with predictable revenue, options such as revenue-based finance can avoid diluting ownership, while sector-specific grants remain worth researching through local growth hubs and Innovate UK.

The key is to treat fundraising as a core business skill, not a last resort. Build relationships with investors before you need the money, and keep your financial records investor-ready.

Negotiation and valuing your worth

Negotiation is still cited as a barrier for many women, whether they are raising investment, setting client fees or agreeing supplier terms. Research suggests women can be penalised for assertive negotiation in some contexts, but the answer is not to avoid it; it is to prepare strategically. The following tips remain relevant:

• Invest in negotiation training and practise with peers or mentors.
• Set ambitious but evidence-based goals before entering a negotiation.
• Make the first offer when you have done your research; anchoring can work in your favour.
• Frame requests around value and outcomes rather than personal need.
• Ask questions to understand what the other party values most, and trade concessions accordingly.
• Know your walk-away point and have alternatives; this confidence strengthens your position.

Networking for success

Entrepreneurs with broad, diverse networks are more innovative and better able to spot opportunities. Women’s business networks can provide invaluable peer support, introductions and role models, but it is also important to build connections outside gender-specific circles. Joining industry bodies, attending sector conferences and engaging with investor networks can open doors that pure women’s networks may not.

Start networking before you need something. Be generous with introductions and expertise, and follow up consistently. A strong network is one of the most underrated assets in scaling a business.

Why women founders beat the gender pay gap

Women founders beat the gender pay gap not by waiting for corporate structures to become fair, but by building businesses where reward follows results. The data still shows a long road ahead for women in the wider labour market, but the evidence from high-growth, women-led companies shows what is possible when ownership replaces employment.

1. Review your current pricing or salary strategy. Are you capturing the value you create?
2. Audit your funding readiness: accounts, pitch deck, investor target list and network warm introductions.
3. Join one industry network and one women founder community this quarter.
4. Book one negotiation skills session or practise a specific upcoming negotiation with a peer.
5. Set a growth metric that ties directly to your personal reward, such as profit share, dividend policy or revenue target.

The original Barclays Wealth report, Unlocking the Female Economy: The Path to Entrepreneurial Success, was published in January 2013. For current data, see the Alison Rose Review of Female Entrepreneurship and the ONS gender pay gap statistics.