Government support for the self-employed in the UK has crashed, as for the first time ever more women than men have started working for themselves. With lower than ever investment or support, is this new generation of enterprising women being set-up to fail?

1. Are self-employed
women
driving inequality?
Erika Watson, Prowess

2. Recession UK – Selfemployment replaced jobs…
Source: ONS Feb 2013
http://www.ons.gov.uk/ons/dcp1717
76_298533.pdf

3. Women are at the fore of this
shift
• The new self-employed between 2008-2012 were mostly female (53%)
• There are now around 20% more self-employed women than in 2008.

4. Positives…
 People are positive about being their own boss
in the UK.
 14% are already self-employed and one out of 4
would like to be.
 With new tech, it has never been easier and the
trend is set to grow.
 Self-employment can and does help many
women to:
• Work flexibly and balance priorities
• Break through the glass ceiling
• Achieve success and leadership on their own terms

5. Why policy makers should
care…
• Electorate – self-employed are 14% of the
working population and growing .
• Jobs – 85% of jobs lost in the recession
were replaced by self-employment.
• Tax - This LM shift has significant Tax
implications.

6. As female selfemployment rises –
government enterprise
investment shifts
Growing support for…
• Perceived ‘High Growth’ - vast majority are male-led businesses and sectors.
• Young enterprise - 2/3 startup loans for under 30’s have gone to men.
• ‘Cheerleading’ – for ‘self-starters’ which women are less likely to see
themselves as.
Cuts to…
• Enterprise training – community-based initiatives attract more women.
• Women’s initiatives
• Welfare to self-employment routes – Universal Credit for the Self-employed is
set to squeeze this group much, much more*.
*(see http://www.prowess.org.uk/universal-credit-self-employed)

7. A closer look…
Training
• People who have taken up
entrepreneurship training are
three times more confident
about having the skills to run a
business. (GEM Global 2010).
• Most women who use targeted
women’s enterprise initiatives do
not think mainstream support is
for them.
• Women are much less confident
about their ability to run a
business and this is connected to
lower levels of human, social and
financial capital… training helps
to close the gap.

8. The cost of living
squeeze has been much
worse for the selfemployed.
Implications?
DWP research* found
self-employment
enabled many lowearning businesses to
fit work alongside
providing care for sick
relatives or children or
to work around their
own poor health.
WEETU SROI research
found £5.25 return to
public purse from each
£1 to support a woman
into business
*http://www.york.ac.uk/inst/spr
u/pubs/pdf/rrep829.pdf
Squeezed
families and
communities
Squeezed
selfemployed
Squeezed tax
contribution
Despite the rise in selfemployment – total tax
revenues from the selfemployed are down –
in one year, 2010-11,
tax from the selfemployed is down £2.7
billion – the tax take
from employees
continues to rise.
(HMRC Personal Income Stats).
We all lose unless this picture is
turned around.

9. Conclusions
• Self-employment has to be a key part of any future jobs
strategy.
• This labour market shift is transferring risk from large
companies and the state to individuals.
• Income inequality has risen faster in the UK than any
other OECD country since 1975. Changes in selfemployment income is the primary factor (OECD*)
• It doesn’t need to be like this…
Government can and should share the risks –
with fair and progressive social insurance and
a skills strategy that’s fit for our increasingly
flexible economy.
* http://www.oecd.org/unitedkingdom/49170234.pdf

10. What we’re doing
• Contributing to the policy debate
• Launching the Charter for Supporters of Women in
Business, early 2014
• Prowess Connect: Campaign & Collaborate Group
www.prowess.org.uk/prowess-connect
erikalwatson@gmail.com