Human connection is the heartbeat of female entrepreneurship, a landmark new study reveals

However, when connection breaks down, the consequences are significant. One in seven female founders (around 14%) identified loneliness and isolation as their biggest challenge, with over a quarter (27%) reporting mental health pressures, including burnout and self-doubt. Loneliness levels were notably similar among founders of both small and larger businesses, showing this is a systemic issue, not just for those in the early start-up phase.

Emmie Faust, who commissioned and co-authored the report, founder at Female Founders Rise, a community of over 11,000 UK female entrepreneurs, is calling for all involved stakeholders - including policy makers, investors, the wider business community and allies - to listen and act: “Being an entrepreneur is a unique experience and without the right mentors or a peer network it can be deeply isolating. At Female Founders Rise, we witness the power of bringing women together at a similar stage of growth, facing similar challenges and the transformation that follows.”

She continued: “The support, the opening of doors and the willingness to share critical learnings have potential to make a difference to whether a business survives or not. As an exited founder myself, I could save someone £100,000 by sharing some of the mistakes I made along the way. Just think about the impact this could have at scale.”

Co-author Joanna Jensen, entrepreneur and chair of the EIS Association, added: “I often say I can share in six minutes what took me six years to learn and that kind of knowledge-sharing can change the trajectory of a business. Shared experience shortens learning curves and unlocks growth. If we want more successful founders, the entire start-up ecosystem has a responsibility to open more doors to expertise much faster.”

The study was conducted by NBS in collaboration with WholeSum, combining academic rigour with a commitment to research that drives practical change. By analysing over 2,200 responses from female founders nationwide, NBS has helped surface both the structural barriers and untapped opportunities within the UK’s entrepreneurship ecosystem.

Debbie Clarke, senior lecturer at Nottingham Business School and principal investigator of the report, said: “At the heart of this research is something deeply human. Entrepreneurship is often framed as individual resilience, yet the data tells a different story — one of collective strength, shared learning and the power of community. If we want more women to start and scale businesses, we must design systems that recognise that reality.”

Funding systems seen as complex and discouraging

Financial insecurity and access to capital were also identified as significant structural barriers facing female entrepreneurs. Nearly half (45%) of respondents said funding challenges were their primary obstacle.

Negative experiences were widespread:

• Of those expressing sentiment, 78% reported strong frustrations towards public funding such as grants, describing processes as bureaucratic and time-consuming
• 73% expressed negative views of private finance including business loans, venture capital and angel investment
• Almost a third (30%) said public funding applications were overly complex, while one in 10 cited negative investor behaviour, including dismissive attitudes, ghosting and power imbalances.

Structural barriers persist despite economic case

The findings follow a 2025 report by the Women and Equalities Committee [2], which warned that female entrepreneurs remain significantly under-resourced. Less than 2% of venture capital currently goes to fully female-founded teams, despite research showing female-led businesses deliver stronger investment returns.

Sam White, head of SME Business Banking at Barclays said: “More than 2,000 women have shared their honest experiences of starting and growing a business in the UK and we must listen to what they’ve told us. One message comes through loud and clear - when women are backed with the right networks, support and opportunities, their businesses don’t just survive - they thrive.”

“Confidence fuels action, and action builds firms that contribute to local communities and the wider UK economy. The potential is huge and we will get closer to realising it if we ensure women feel supported, connected and empowered to grow their businesses.”