Gender gap narrowing in business start-ups

THE gap between the number of male and female entrepreneurs in the UK has closed, according to research published today.

Figures released by the Global Entrepreneurship Monitor (GEM) also show Britain now has more entrepreneurs in total than in France, Germany, Italy and Japan.

Researchers found around 17,700 more women had set up in business across the UK in the past year.

The entrepreneurial gender gap closed the most in the south-west of England, but remained wider in other parts of the country including Scotland. Across the UK, for every 100 male entrepreneurs, 46 women set up their own firm in 2004.

In its report summary, the GEM said that worldwide there were almost twice as many men who were "active entrepreneurs" than women, adding that these differences were consistent across age groups.

The organisation, which brings together research from dozens of member countries, found that in no country were there more women who were active entrepreneurs than men. It added that more people in the UK were planning to set up in business, especially outside London and among ethnic minority groups.

Trade and Industry Secretary Patricia Hewitt said: "Today’s report shows the UK is a better place to start and grow a business than ever. This is down to the hard work of Britain’s entrepreneurs.

"The number of small and medium-sized businesses in the UK has grown by 300,000 in the past seven years and employment in small businesses has grown by 600,000. I’m pleased we’re narrowing the gap between male and female start-ups."

Meanwhile, the TUC today claimed the gap between the pay of men and women was wider than previously thought and progress towards equality was "painfully slow".

The union body complained women had to take individual cases to a tribunal if they were being paid less than a man for the same work.

Deputy general secretary Frances O’Grady said: "A tribunal hearing a case on behalf of 500 dinner ladies has to consider 500 applications. It’s not surprising it can take years to win a case. Until unions are able to take group cases [for] female employees, the gender pay gap looks set to stay as wide as ever."

Female full-time workers earned 19.8 per cent less than men and low-paid women had fallen even further behind now that official figures included the "gigantic" salaries of male high earners, the TUC added.