Commons Sense

House of Commons · Ministers' Questions

Investment for Businesses: Female and Minority Entrepreneurs

Wednesday 30 March 2022 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • The Government's flagship start-up loans programme, delivered through the British Business Bank, has been instrumental in reducing access-to-finance barriers for female and minority entrepreneurs.
  • Since the launch of the start-up loans programme, around 40 percent of the loans issued, valued at approximately 320 million, have been directed towards these groups.
  • The seed enterprise investment scheme provides tax incentives to individuals who invest in early-stage companies, aiming to support broader venture capital funding.

Topics (select to filter)

Questions & Answers

Q1 Ruth Edwards
Business & Trade
Context

The Government's start-up loans programme has been noted for reducing access-to-finance barriers, but female and minority entrepreneurs still face significant challenges.

Question

What steps the Government are taking to reduce the barriers faced by female and minority entrepreneurs in seeking investment for businesses. The Government's flagship start-up loans programme, delivered through the British Business Bank, has been instrumental in reducing access-to-finance barriers faced by all entrepreneurs, including those faced by female and minority entrepreneurs.

Answer from Kemi Badenoch

The Government's flagship start-up loans programme has been instrumental in reducing access-to-finance barriers faced by all entrepreneurs, including those faced by female and minority entrepreneurs. Since the launch of the programme, around 40% of the loans issued, valued at approximately £320 million, went to female entrepreneurs. Black, Asian and ethnic minority businesses have received around 20% of the loans issued, valued at £160 million.

Partly answered

Not addressed: The specific steps being taken to reduce barriers for female and minority entrepreneurs are not fully detailed beyond highlighting statistics from the start-up loans programme.

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Q2 Ruth Edwards
Business & Trade
Context

A record number of women have started their own business, yet only a tiny percentage receive venture capital funding. This inequality is highlighted by the #overbeingunderfunded campaign run by Sarah King and Claire Dunn.

Question

A record 140,000 women started their own business in the last year, but research shows that only 1% of venture capital funding goes to businesses led by women. Will my hon. Friend agree to meet me and the #overbeingunderfunded campaign, run by my constituents Sarah King and Claire Dunn, to discuss how we can better use Government schemes such as the seed enterprise investment scheme to address this inequality?

Answer from Kemi Badenoch

The seed enterprise investment scheme is one of three tax-advantaged venture capital schemes that provide tax incentives to individuals who invest in companies at various stages of growth. I am grateful to my hon. Friend for giving me the opportunity to talk about the world-leading generosity of this scheme. I will find out whether a Minister in the Department for Business, Energy and Industrial Strategy or the Treasury is available to meet her and her constituents on this specific issue.

Partly answered

Not addressed: The questioner invited to discuss better utilisation of government schemes but the answer does not commit to meeting or discussing specifics.

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