New research1 from Westpac reveals that 70% of female small business leaders believe it's harder for women to get funding than it is for men.
The alarming statistic comes as Westpac reaches a key milestone, with $274 million in business loans now supporting 726 women to start or grow their own businesses.
The $500 million commitment to back more women in business was announced last year as an effort to encourage more women to launch or grow their own business.
The Westpac research finds 20% of female business leaders report that uncertainty about financial success is a major concern when starting their own business, highlighting the need for continued support in accessing capital and mentorship.
There is some good news on progress, with Westpac Economics analysis of Australian Bureau of Statistics (ABS) data showing that the number of women managing their own business has increased by 20% since 2014, with the average annual growth rate for women in business more than double that of men over this period2.
Despite the increase, the ABS data reveals that only 35% of Australian small businesses are owned by women.
Tamara Bryden, Westpac Managing Director, Business Lending, said:
"We know that for many women starting a business, access to funding is a determining factor in getting their business off the ground. This is why we made a $500 million commitment to back more women in business.
Since we announced the commitment in March last year, I am proud that we've injected over $274 million of capital to support female entrepreneurs, helping more than 726 women start or grow their business.
We want to back aspiring female business owners to achieve their goals, as this not only supports their ambitions but also contributes to economic growth and innovation. I can't wait to see more customers turn their business dreams into a reality with the support of our loans."
Flexibility and autonomy are motivating women to start their own business
One of the attractions of owning a business is the ability to work part time or more flexibly, with 55% of females who own their own business working part time hours compared with 24% of males2.
The Westpac research reflects this growing trend revealing that female small business leaders are seeking autonomy with 48% citing the flexibility of work hours as a motivating factor for starting their own business, and 40% are driven by the desire to be their own boss1.
Championing change
91% of female small business leaders state that social responsibility is important to their business, with 88% emphasising sustainability1. This demonstrates the broader social impact that women in business can have beyond just profit.
Female-led businesses are contributing to local communities, with 38% creating jobs, 30% sponsoring local events, and 24% investing in social causes1.
Westpac customer case study:
Business name: Mode Pilates
Founder & Business Owner: Laura Bullock
Business Website: https://www.modepilates.com
Location: Sydney
In 2019, Mode Pilates was born out of a simple yet powerful mission: to bring a high-quality boutique modern Pilates studio to Laura's home in Manly, providing a space in her community dedicated to feel-good movement.
Leaving behind a corporate career, Laura built Mode to support clients with their health and wellness. With grit and determination, her vision became a reality. Today, Mode is thriving, and Laura's studios offer more than just a workout - they provide a holistic lifestyle experience, blending movement, mindfulness, and community for true physical and mental balance.
With a Westpac business loan, Laura was able to grow her business from one to six studios in the past two years, buy new Pilates reformer machines, and expand her team.
Mode Pilates has just completed its fourth year in business and continues to achieve significant growth.
