Supporting Female-Led Businesses: A Key Driver for Economic Growth

Organisations signed up to the Investing in Women Code have consistently outperformed the broader market in their support for female founders, achieving this milestone for six consecutive years. The initiative, backed by the government, has seen a remarkable increase in participation, expanding from a mere 12 signatories in 2019 to over 330 today.

This growing cohort includes major UK retail banks, venture capital firms, angel investors, and lenders, all of which are now channeling more capital towards diverse teams. This shift underscores the recognition that supporting a wider range of entrepreneurs is not only a moral imperative but also a sound business strategy that drives growth.

Significant Growth in Participation

The Investing in Women Code aims to enhance access to finance for women-led businesses, a commitment that has gained traction in recent years. New signatories in 2026 include notable names such as Nationwide and Innovate UK. The latest findings, released as part of the Code’s annual report, highlight the government’s ongoing efforts to unlock the full entrepreneurial potential of the UK by ensuring that talented founders, irrespective of gender, have the financial resources required to establish and expand their businesses.

Blair McDougall, the Minister for Small Business and Economic Transformation, remarked on the positive trend, stating, “For the sixth year in a row, Investing in Women Code signatories have outperformed the wider market, showing that backing female founders is good for business and good for growth.” Despite this progress, he acknowledged that women-led enterprises still encounter considerable barriers to funding and growth, emphasising the importance of the Code in supporting more women to start, scale, and succeed, thereby stimulating job creation and bolstering the UK economy.

Success Stories and Continued Challenges

One notable beneficiary of this initiative is Kate Heath, the Founder and CEO of Gaia Learning, which is recognised as the UK’s leading online school for neurodivergent learners. After participating in the Baltic Ventures Accelerator in 2023, Kate secured expert mentoring, business support, and a £50,000 pre-seed investment. This early financial backing was pivotal, enabling Gaia Learning to enhance its product development and subsequently attract over £600,000 in follow-on funding. In recognition of her achievements, Kate was named Great British Entrepreneur of the Year in 2025.

Kate reflected on her journey, stating, “Securing funding is not easy, whichever path you take, and I believe it’s one of the most challenging parts of building a business. But I’ve learned that when you stop seeing it as just raising money and start seeing it as finding people who genuinely believe in your mission, it becomes more rewarding.” She credited the funding not only for facilitating growth but also for fostering a community that shares her vision of providing every child with an education tailored to their needs.

Addressing Investment Disparities

Despite the positive developments, the report reveals that women-led businesses still receive a disproportionately small share of overall investment, underscoring the need for sustained efforts within the funding ecosystem. The government is actively addressing this issue through the Invest in Women Taskforce, which has already allocated over £70 million from its £635 million funding pool during its inaugural year.

This initiative complements broader efforts aimed at diversifying the investment landscape, including the British Business Bank’s £400 million Investor Pathways Capital Initiative, which supports emerging fund managers and expands access to investment opportunities. Recently, the Bank committed £90 million to ten new funds, with women comprising more than half of the General Partners in this cohort.

Future Directions and Commitments

Kristen McLeod, Chief Strategy Officer at the British Business Bank, acknowledged the progress made through the Investing in Women Code, stating, “This year’s findings show that the Investing in Women Code is helping to gradually shift the dial, but it’s clear there is much more to do.” She highlighted the Bank’s commitment to broadening access to finance and dismantling barriers so that an increasing number of female founders can realise their full potential.

For those interested in joining this impactful initiative, the Investing in Women Code’s annual report is available online, detailing commitments such as adopting best practices to enhance access to finance for female entrepreneurs, designating a senior leadership team member to support equality in entrepreneurial interactions, and providing annual funding data disaggregated by gender to promote transparency within the industry.

Further information about becoming a signatory can be found on the official British Business Bank website.