Almost half of female founders say funding challenges are their primary obstacle, with 78% thinking grants are bureaucratic and time-consuming to access, and 73% are frustrated by business loans, venture capital and angel investment.
In other findings in the report by Female Founders Rise and Barclays, around a third said public funding applications are overly complex, while one in 10 cited negative investor behaviour, including dismissive attitudes, ghosting and power imbalances.
The study of 2,225 UK-based female entrepreneurs, who collectively generate £1 billion in annual turnover, follows a 2025 report by the Women and Equalities Committee, 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.
The Rose Review in 2023 identified that £250 billion in growth could be achieved if women entrepreneurs were funded to the same level as men. Adjusting for inflation, that figure is now £310 billion.
The Female Founders Rise report also looked at how women business owners access support. It concluded that “the need for human connection runs deep across the female entrepreneurial community, regardless of the size or stage of business”.
More than three quarters said human connection is central to their entrepreneurial journey, and peer networks were identified as the most effective form of support, highlighted by 39% of respondents.
In addition, 32% highlighted mentorship and coaching as vital forms of support.
When connection breaks down though, the report warned that “the consequences are significant”.
One in seven female founders said loneliness and isolation is their biggest challenge, with 27% reporting mental health pressures, including burnout and self-doubt. Loneliness levels were similar among founders of both small and larger businesses, which the study said shows it is “a systemic issue, not just for those in the early start-up phase”.
Emmie Faust, report co-author and founder of Female Founders Rise, said:
“Being an entrepreneur is a unique experience and without the right mentors or a peer network it can be deeply isolating. We witness the power of bringing women together at a similar stage of growth, facing similar challenges and the transformation that follows.”
“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.”
Joanna Jensen, report co-author, 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.”