Women's Enteprise South East

Business advisor urges communities to value women’s enterprise

“Getting women into business ownership makes a huge difference to an area, not just economically, but at all social levels,” says Jason Martin, Director of the South Kent Enterprise Gateway and successful entrepreneur turned business advice consultant.

“Women’s Enterprise isn’t just a niche market, it is an important sector of the UK economy, and could be even more significant with the right support,” says Jason.  “Often, a key difference between women and men in business is that women want to contribute socially, as well as striving for something better for themselves and their families.  Women inspire other women because they network with each other.  This all makes a difference to the community. I’ve seen it happen here in South Kent where there is a strong buzz and the beginnings of an enterprise culture.  People are now more willing to try things.”

A positive economic impact is created by approximately one in five women moving into self-employment from unemployment – whereas the comparable figure for men is around one in fifteen.

“The trouble is, it’s easy to under-estimate the demand for women to set up their own businesses,” Jason explains.  “There has always been an interest from women in starting businesses, but before organisations like the South East England Development Agency (SEEDA) and the Enterprise Gateways started, none of the help on offer really took into account women’s issues.”

Women often set up businesses for different reasons than men, and sometimes not for purely economic ones.  For example, they may want to set up a home-based business because it fits their lifestyle, rather than focusing purely on growth.  In fact, research shows that almost half of all female owned/managed SMEs are home-based, compared with 39% of male owned/managed SMEs.

Jason knows plenty about running a business.  Since March 2005 Jason has been running the South Kent Enterprise Gateway, helping people on Romney Marsh and in Folkestone and Ashford to start up their own businesses. His 15 years as a marketeer, business development manager and business owner have given him the tools to give practical and useful help to anyone wanting to work for themselves. “In the beginning, I worked hard, rather than smart,” admits Jason.  “However, I learned my lessons over the years and now I’m in a position to pass on what I know to others.”

Jason has been Director of the South Kent Enterprise Gateway since 2005, working with groups under-represented in business, including women and ethnic minorities.  When Jason started there, he was astounded at the massive demand by women for information on starting businesses, given the size of the catchment area.  Furthermore, Jason found these women had the key ingredients to build a successful business: experience, knowledge, drive and enthusiasm.  “I feel we are only just scratching the surface of the potential that’s out there,” he enthuses.

“Generally, there aren’t many differences between men and women in business start-ups,” admits Jason.  “The main one is that women are more risk averse.  For example, we know that a third of the female population would start a business if it wasn’t for the fear of failure.  It also means that women make sure their business is built on a good foundation, for example, they are diligent about researching their markets and working out the financials, before they invest their time and money – so their businesses are more likely to be viable.”

“The other difference,” Jason continues, “is that women are more open about their shortcomings and more frank than men about the help they need.  For example, both men and women are often lacking in confidence about how to set up in business, but because women are not afraid to admit this, it’s easier for me to give them the necessary support from the outset.”

One of the key factors holding women back from being business owners is their caring responsibilities, usually for children, but sometimes for parents or other relatives.  In a report from the Small Business Service, twenty one per cent of women state family commitments as a reason for becoming self employed compared with only two per cent of men.  For these women, running a business from home can often be seen as a good option, given that a full time nursery place for a child under two typically costs over £7,000 per year.

Another issue holding some women back is the worry of moving from benefits to self employment, which is not always straightforward.  In fact, women in the UK are twice as likely as men to live in poverty, according to the Fawcett Society, and therefore have more to risk in coming off benefits.  On average, benefits and tax credits comprise one fifth of women’s income and less than one tenth of men’s. Organisations such as the Enterprise Gateway or Business Link can offer advice to women on how to organise both their caring responsibilities and their finances to make sure they do not lose out when they are starting up a business.

“A mistake people frequently make is to perceive a business as large-scale and often as an international corporation run by high flyers in smart suits,” remarks Jason, “however, that’s just one point on the scale.  A business could just as well be something much smaller that a woman can run from her front room while her kids are at school.  The important thing is to find out what peoples’ needs are and to make sure they set up a business which meets those needs rather than fights against them.”

Furthermore, contrary to the common perception that women’s businesses are often little more than ‘hobby’ businesses, the evidence is growing that women-owned companies are increasingly performing better than their male counterparts in areas which are key drivers of productivity.  The 620,000 or so majority women-owned businesses in the UK generate around £130 billion in turnover – a figure not to be dismissed lightly.

“Peer support is very important for people setting up in business for the first time,” explains Jason.  At the Gateway, we run a whole range of free workshops which offer information and soft skill training such as overcoming personal barriers.  These also provide a forum for people to meet others who at a similar stage of business development.  Otherwise, it’s easy for a woman to feel isolated if she is working on her own, particularly at home.”

“Role models are important, too,” Jason continues.  “However, they need to be realistic ones.  A few years ago, if you asked anyone to name a female business owner, one of the few answers you’d get was Anita Roddick.  Although she was inspirational, Body Shop was far removed from the kind of business most people are likely to set up.  By having a range of local role models, the SEEDA Ambassadors Network aims to inspire other women by proving what is achievable and by giving them the opportunity to talk to other women who have successfully set up businesses.”

There are other men who, like Jason, are SEEDA Ambassadors. However, Jason says: “I’d like to see more men being vocal in support of women’s enterprise.  We really need to get men to understand the importance of encouraging women into business, not just from an economic development perspective, but also from the angles of building a skill base, helping to achieve personal fulfilment, and, often, breaking the cycle of generations of unemployment.”

According to the Small Business Service, a pound invested in developing women’s enterprise provides a greater return on investment than a pound invested in developing male owned enterprise. “That proves my argument, doesn’t it?” concludes Jason with a broad grin.

Contact Jason Martin, Director, South Kent Enterprise Gateway on 01303 223239 or jason.martin@businesslinkkent.co.uk