A decade ago, research by the Resolution Foundation highlighted a quiet shift in the UK labour market: people who had recently moved into self-employment were far more likely to be women than those who had been working for themselves for longer. That signal has become a sustained trend. Today, female self-employment in the UK is no longer a fringe development. Women make up a growing share of the country’s self-employed workforce, particularly in freelancing, micro-businesses, and platform work.

This article updates the 2014 picture with the latest UK data, explores why self-employment appeals to so many women, and looks at the practical barriers that still stand in the way.

Female self-employment UK: the current picture

According to the Office for National Statistics (ONS), the number of self-employed people in the UK has recovered since the pandemic lows, and women remain one of the fastest-growing groups. Much of the increase has been in professional and administrative services, caring roles, creative industries, retail, and digital services.

The growth is not uniform. Some women have launched consultancies or product businesses; others have taken on freelance or gig economy roles to fit work around caring responsibilities. For many, self-employment is a deliberate career choice. For others, it is a response to inflexible employers, redundancy, or the rising cost of living.

One notable shift is age. ONS labour market data shows that self-employed women over 50 are one of the fastest-growing segments, with many using self-employment as a bridge to retirement or a way to capitalise on decades of experience.

Why more women are choosing self-employment

Flexibility remains the most frequently cited reason. Mothers and unpaid carers often find that conventional nine-to-five jobs do not match school hours, nursery pick-ups, or unpredictable care needs. Working for yourself can offer control over when, where, and how much you work, even if that flexibility comes at the price of income security.

Technology has also lowered the barriers to entry. Affordable website builders, social media marketing, cloud accounting, and online marketplaces mean that a business can be started from a kitchen table with minimal capital. Sectors such as virtual assistance, coaching, copywriting, graphic design, handmade goods, and social media management have seen particularly strong female participation.

The cost-of-living crisis has added another dimension. Some women have turned a hobby or skill into a side hustle to supplement household income, while others have left low-paid employment after finding that childcare or travel costs wipe out their wages.

The barriers that remain

Despite the rise in numbers, self-employment is not always a positive or secure choice. Female self-employed workers continue to report obstacles that employees rarely face:

• Access to credit, loans, and mortgages. Lenders and mortgage brokers typically ask for two or three years of accounts or tax returns. Women with fluctuating income, recent start-ups, or gaps for caring responsibilities can find it harder to secure borrowing than salaried applicants.
• Tenancy and housing. Letting agents and landlords often prefer tenants with payslips and employer references. Self-employed applicants may be asked for larger deposits or guarantors, and some report being turned away outright.
• Pensions and long-term savings. Self-employed people are not covered by workplace auto-enrolment. Research by the Pension Policy Institute has found that women reach retirement with significantly smaller pension pots than men, and irregular earnings can make it harder to keep up personal pension contributions.
• Tax and National Insurance complexity. The April 2024 changes that abolished Class 2 National Insurance contributions were broadly welcomed. However, navigating Self Assessment, VAT registration, allowable expenses, IR35 rules, and Making Tax Digital remains challenging, especially for newcomers.
• Isolation and networks. Women in male-dominated sectors, such as construction or technology, can find it harder to access peer support, mentoring, finance, and supply-chain opportunities.

Self-employment as opportunity or necessity

The 2014 Resolution Foundation research drew an important distinction between higher-skilled and lower-skilled self-employment. It found that 44 per cent of newly self-employed people in lower-skilled occupations would rather be employees, compared with 21 per cent of those in higher-skilled roles. That divide still matters today.

Policy makers and business support organisations often talk about opportunity-driven and necessity-driven self-employment. Women in low-paid freelance, agency, or platform roles may lack the bargaining power, sick pay, holiday entitlement, and pension contributions that employees receive. Ensuring that self-employment offers genuine security, not just a label, requires better contracts, fairer platform algorithms, portable benefits, and access to training.

The economic case for supporting women is clear. The Alison Rose Review of Female Entrepreneurship found that up to £250 billion of new value could be added to the UK economy if women started and scaled businesses at the same rate as men. Much of that potential sits in the self-employed and micro-business economy.

Practical support for self-employed women

If you are thinking about working for yourself, or you are already self-employed and want to strengthen your position, the following steps can help:

• Start with a clear business plan and decide whether sole trader or limited company status is right for you.
• Check your funding options, including Start Up Loans for female founders, local growth hub grants, and women-led business funds. The British Business Bank’s Start Up Loans programme is one of the main government-backed routes for new businesses.
• Register for Self Assessment with HMRC and keep accurate records from day one. Cloud accounting software can simplify tax returns and help you set aside money for tax and National Insurance. Our complete guide to self-employed tax in 2026/27 covers the current rates and deadlines.
• Prepare for Making Tax Digital for Income Tax Self Assessment. Under current HMRC plans, sole traders and landlords with turnover above £50,000 will be required to keep digital records and submit quarterly updates through compatible software, with the threshold falling to £30,000 in a later phase.
• Prioritise a personal pension and consider income-protection insurance to guard against sickness or loss of earnings.
• Build a support network through women-in-business groups, sector associations, co-working spaces, and organisations such as the Federation of Small Businesses or IPSE.

What happens next for self-employed women

Female self-employment in the UK is now the mainstream, not the exception, but the headline numbers only tell part of the story. The priority now is to ensure that women who work for themselves have fair access to finance, housing, pensions, and professional development. With the right support, self-employment can be a genuine route to economic independence and fulfilment, not simply a fallback when traditional employment fails to fit.