Access to business funding remains a significant challenge for female entrepreneurs. In 2024, research by the Founders Forum Group revealed that only 2% of global venture capital funding was provided to female-only founding teams.
The World Economic Forum estimates the global finance gap for women in business at $1.7 trillion, with male-led enterprises continuing to secure most of the available investment.
Understanding the causes of this imbalance — and identifying suitable funding pathways — is essential for female-led businesses seeking to strengthen their capital position and achieve sustainable growth.
Why the gender funding gap persists:
The funding disparity between male and female founders restricts growth, limits access to capital and ultimately hinders broader economic participation. Several factors contribute to this ongoing issue:
- Investor bias: A lack of diversity among investors can lead to unconscious bias, with male-led businesses often viewed as lower-risk investments.
- Limited access to networks: Many female entrepreneurs face barriers to the informal, male-dominated networks where most funding introductions occur.
- Perceptions around scalability: Investors tend to prioritise high-growth, technology-based industries, while female founders are more likely to operate in sectors perceived as lower growth or less suited to venture capital.
While this funding gap remains a challenge, progress is being made. Financial institutions, government programs and private initiatives are increasingly focused on improving access to capital for women in business.
Funding options for female-led businesses:
- Specialist business loans: Alternative and specialist lenders provide flexible loan products designed for small and medium-sized businesses. These lenders typically assess applications based on recent performance and projected cash flow rather than solely on historical credit scores or collateral.
- Government and community grants: Business grants provide non-repayable financial support and are often targeted at specific industries or economic objectives. A variety of grants are available to support female-led businesses, with eligibility criteria set by government and regional funding bodies. It is worthwhile to regularly review official websites to identify current opportunities.
- Private investment and venture capital: Private investment remains a major funding source for growing businesses. Angel investors contribute personal funds in return for equity ownership. Venture capital and private equity firms offer larger-scale investments, often accompanied by strategic guidance.
Businesses seeking equity funding should carefully consider the implications for ownership structure and governance. - Crowdfunding: Crowdfunding enables businesses to raise smaller amounts of capital from a broad base of investors or customers. This method not only generates early-stage funding but can also validate market demand and build brand awareness before launch.
- Tax incentives and offsets: Eligible businesses can reduce their tax burden through incentives such as R&D tax offsets, deductions and industry-specific concessions. Optimising tax positions can improve cash flow, freeing up internal resources for reinvestment and expansion.
Although challenges remain, the funding environment for female entrepreneurs is evolving positively. A structured, well-documented funding strategy — supported by sound financial analysis and professional advice — provides a clear roadmap for growth.
Our team can assist with strategic financial planning, capital sourcing, and business structure advice to help your enterprise secure funding and achieve long-term sustainability.
