Scotland is experiencing a notable shift: more women than ever before are starting businesses, with women now representing 54% of all start-ups. Yet beneath this encouraging headline lies a challenging reality: women-led businesses are not surviving or scaling at the rates needed to strengthen Scotland’s economy.
The new Study of Women in Enterprise 2025, funded by the Scottish Government and published by Women’s Enterprise Scotland (WES), shows that despite high start-up activity, the entrepreneurial pipeline is leaking badly. The economic cost is substantial. If Scotland matched the United States’ proportion of established women-led businesses, it would add £17 billion annually to the economy.
CBISS is proud to have played a role—Professor Sukanlaya Sawang contributed to this research, bringing academic expertise in innovation, entrepreneurship, wellbeing, and women’s economic participation.
What is Women’s Enterprise Scotland (WES)?
Women’s Enterprise Scotland (WES) is the national expert body dedicated to advancing women’s entrepreneurship across Scotland. It plays a pivotal role in shaping the business landscape by conducting specialist research, providing policy insight and advocacy, and offering training and tailored support designed specifically for women-led enterprises. Through its evidence-led approach, WES works to strengthen and reform Scotland’s business support ecosystem so that it better reflects the realities, needs, and ambitions of women in enterprise. The Study of Women in Enterprise 2025 is one of its most comprehensive and far-reaching assessments to date, offering a detailed picture of the conditions facing women-led businesses and the structural changes required to help them thrive.
Key Findings from the 2025 Study
1. Scotland Has a Start-up Boom—but a Sustainability Crisis
- 54% of start-ups are women-led
- Yet 61% drop out of the pipeline after start-up
- Only 20% of employer businesses are women-led (a declining trend)
This mismatch reveals a structural issue: women can start businesses, but the ecosystem makes it difficult to stay in business.
2. Structural Inequalities Continue to Undermine Progress
- Persistent barriers include:
- Rising costs:
- 78% could not recover increased business costs
- 41% recovered none of the increases
Funding inequality: women start with 53% less capital and receive minimal equity investment
Discrimination is worsening:
- 68% experienced discrimination in 2025 (double the 2016 figure)
- Unpaid care continues to be a major constraint, affecting time, wellbeing, and business growth
Health impacts:
- 74% report increased stress
Many start businesses because health conditions limit traditional employment options
3. Business Support Is Misaligned with Women’s Needs
The report shows a clear mismatch between what women expect and what they receive:
- 58% say mainstream business support does not meet their needs
Only:
- 17% received expected start-up support
- 10% received help to establish their business
- 19% received growth support
Digital and AI support is particularly limited—78% say digital investment would help, yet only 15% accessed such funding
Strong demand for women-centred support:
- 71% would use women-specific services
- 64% say a Women’s Business Centre would help
Why This Matters: The Economic Case
Women-led businesses contribute significantly to Scotland’s local and national economy. Yet their growth is restricted by:
- Undercapitalisation
- Lack of coordinated growth support
- Insufficient digital and net zero support
- Limited access to mentors, networks, and role models
- Persistent bias and discrimination
- Addressing these structural issues would unlock substantial economic, social, and community benefits.
Key Recommendations from the Report
1. Establish a National Network of Women’s Business Centres
- Five centres across Scotland by 2028, including rural/island provision, offering:
- Specialist women-centric advisers
- Tailored growth programmes
- Digital and hybrid support to widen access
- This model mirrors successful approaches in the US and Canada.
2. Launch a Dedicated £20 Million Equity Fund for Women
A women-focused equity fund to support up to 50 businesses in the first two years and reduce the severe gender gap in investment.
3. Mandatory Gender-Disaggregated Data
All public funding and business support programmes should report:
- Applications
- Approvals
- Outcomes
This transparency is essential for tracking progress.
4. Structured Mentorship and Role Model Programmes
- Train and match mentors to 300 women-led firms
- Support 100 women to act as visible role models each year
- Ensure representation across age, race, disability, rurality, and sector
5. Address the “Missing Middle” of Growth-Stage Firms
- Pilot programmes and grants for mid-stage businesses, including:
- £500k in growth programmes
- £2m in dedicated grants
- Flexible loan repayment aligned to revenue cycles
6. Care, Wellbeing, and Pension Support
- Childcare and eldercare subsidies for business owners
- Retirement planning and auto-enrolment options for the self-employed
- Wellbeing metrics embedded in all business support
- Programmes to address burnout, stress, and sustainable growth
7. Digital, AI, and Net Zero Support
- Targeted digital and AI literacy programmes
- Improved access to digital and innovation funding
- Increase net zero funding directed to women-led firms to 20% by 2027 and 50% by 2030
CBISS Reflection: Why This Matters for Scotland’s Future
At CBISS, we are committed to advancing inclusive innovation, sustainable enterprise, and a fairer economy. The findings of this report reinforce three truths:
- Women’s entrepreneurship is a national economic priority, not a niche issue.
- Long-term, women-centred support is essential for business survival and growth.
- Better data, wellbeing support, and equitable funding can drive systemic change.
CBISS Recommendations for Policymakers and Industry
Based on the study’s findings and our ongoing work supporting inclusive enterprise, we recommend:
1. Treat Women’s Business Centres as essential economic infrastructure
- Multi-year investment—not year-by-year funding—is vital.
2. Prioritise digital and AI readiness for women-led SMEs
- Ensure support is accessible, relevant, and linked to future industry demands.
3. Integrate care and wellbeing into entrepreneurship support
- A sustainable pipeline requires care-aware, health-aware policies.
4. Ensure accountability via transparent gender-disaggregated data
- This is a foundational requirement for equitable economic growth.
Final Thought
Women are starting businesses in record numbers. They bring innovation, resilience, and community impact. But without structural change, too many will continue to drop out of the entrepreneurial pipeline.
The Study of Women in Enterprise 2025 gives Scotland a clear roadmap.
CBISS stands ready to support its implementation and to help build a thriving, inclusive, and sustainable entrepreneurial ecosystem—one where women not only start businesses, but stay, grow, and lead.
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