Female, disabled and ethnic minority entrepreneurs could deliver hundreds of billions for UK economy with more government support

The government must use the Budget to provide more support for female, disabled and ethnic minority entrepreneurs and founders without inherited wealth or established networks, who could help deliver Andy Burnham’s ambition for ‘good growth in every postcode’. 

A new report by The Future Governance Forum (FGF), noted £310 billion could be generated from more women starting businesses, £75 billion could be generated from more businesses led by ethnic minority entrepreneurs, and £230 billion could be generated from more businesses led by disabled entrepreneurs. 

The report recommendations include calls for the government to:

1. Provide more support for these ‘underinvested founders’, funded through the £400 million Investor Pathways Capital programme.
2. Introduce a £50 million Youth Enterprise Scheme to help young people on Universal Credit to start their own businesses through financial subsidies.
3. Direct the British Business Bank to set a target for funding reaching female, disabled and ethnic minority entrepreneurs and founders without inherited wealth, to increase support for those who find it difficult to access funding to grow their businesses.

Adam Terry, FGF Executive Director, said, “If this government really wants ‘good growth in every postcode’ it must provide more for female, disabled, working class and ethnic minority entrepreneurs who struggle to access the finance they need to start up and scale up their businesses. That includes more targeted support for these ‘underinvested founders’ through the British Business Bank’s £400m Investor Pathways Capital scheme. 

“The Chancellor has rightly identified innovation and investment as two essential ingredients for the government’s growth ambition, so he should use his first Budget to help the country’s most exciting new firms to grow and succeed.” 

Female-only businesses received 2% of venture capital in 2024. Ethnic minority founders are twice more likely to see access to finance as a key obstacle, and 84% of disabled entrepreneurs say they do not have equal access to opportunities and resources. 

More information on the £50 million Youth Enterprise Scheme