Wales is outperforming the other UK nations for companies led by females that are fast-growth, according to the annual large-scale UK-wide study into female entrepreneurship.

12.1% of fast-growth companies in Wales in 2022-23 were female-led. This is the highest rate across all UK devolved nations and regions. The rate of female-led fast-growth companies in Wales has improved from 11.9% in 2021-22.

Similarly, a total of 34.6% of active companies in Wales in 2022/23 involved women in ownership (either solely or in a mixed-gender team). This is a higher proportion than in any of the other UK nations.

Created by the leading data analytics platform mnAi, The Gender Index is an AI-powered research of all 4.5 million active companies which accurately measures the number of female-led companies and their impact on the economy.

An added layer that the mnAi analysts have incorporated into this year’s data is identifying company leadership among underrepresented groups and young people.

Much more work remains to be done to level up Wales with the rest of the UK in terms of female-led companies headed up by ethnic minorities.

18.4% of ethnic minority-owned active companies in Wales in 2022-23 were female-led. This proportion in Wales is lower than in England, Scotland and Northern Ireland, although above that in the East Midlands, North East, and Yorkshire and the Humber. Moreover, 16.3% of all active ethnic minority female-led companies in Wales secured external capital. This proportion is below that in England and Scotland but above Northern Ireland.

Jill Pay, chairman of The Gender Index, said:

“For the second successive year, The Gender Index has shown an increase in the number of women across the four nations that are setting up companies, which is a further step in the right direction in boosting female entrepreneurship across the UK. More young women and ethnic minorities are raising external capital and leading female-owned companies than ever before, reflecting our belief that everyone regardless of age, race or gender should not face barriers to starting a business.

“We recognise that while inspirational women are accessing external capital and leading fast-growth companies, we will not rest until every female-led company can do the same. To that end, The Gender Index is an accessible and informative tool that offers an unparalleled view of the progress and challenges that female-owned companies face today.

“We want The Gender Index to be used by policymakers, local and national government, corporates, researchers, investors, educators and female entrepreneurs to move the needle and support a more diverse economy.”

Wales can point to positive signs when it comes to female-led companies accessing external funding. Of the female-led companies obtaining external finance, the highest number was in the Gen X age group, followed by Millennials. These were the highest numbers for these groups across the UK.

Although, the numbers of business angel investors in Wales remain small in comparison to the rest of the UK, the proportion who are women (28.7%) is higher than in the other UK nations. 18.4% of ethnic minority-owned active companies in Wales in 2022-23 were female-led. This proportion in Wales is lower than in England, Scotland and Northern Ireland. However, 15.8% of all active female-led EIS qualifying companies in Wales secured external finance, significantly above the rest of the UK.

Companies led by Millennials in Wales have the highest average turnover growth rate of 41.1%. Turnover growth rates in Wales of companies led by other generations are much lower – Gen X (23.6%), Gen Z (17.8%), Boomers (14.6%), and Silent Generation (13.7%).

John Cushing, CEO of mnAi said:

“The ethos behind The Gender Index is our firm belief that data can drive positive change for women in enterprise to identify challenges and opportunities and stimulate the growth of female-led companies.

“We strive for diversity and have widened the net this year to also focus on ethnic minority female-led companies and the most represented and under-represented generations in entrepreneurship. From our analysis, it is heartening to see Generation Z female founders closing the gender gap.”

“This research also highlights the ongoing challenges for female-led companies accessing external capital. While it is clear from our data that there is still a long way to go, we look forward to seeing what other trends emerge over the coming year as we continue to push for positive change through data.”

Key findings:

A total of 34.6% of active companies in Wales in 2022/23 involved women in ownership (either solely or in a mixed-gender team). This is a higher proportion than in any of the other UK nations.

In 2022/23, female-led active companies in Wales grew turnover on average by 24.1% compared to 20% for male-led companies. Female-led turnover growth in Wales was the third highest across all UK nations and regions, and above the rest of the UK average of 21.9%.

In 2022/23, there were 22,900 active female-led companies in Wales, which equates to 16.7% of active companies and is slightly improved from 16.5% in 2021/22.

The rate of female-led companies in Wales is higher than in Scotland and N. Ireland but lower than in England, especially in London and the South East.

Women are involved in the ownership and leadership of other companies in Wales. In 2022/23 a further 17.9% of active companies in Wales were a mixture of male and female-led. This proportion is lower than in Scotland and N Ireland but above that in England.

1% of fast-growth companies in Wales in 2022-23 were female-led. This is the highest rate across all UK devolved nations and regions. The rate of female-led fast-growth companies in Wales has improved from 11.9% in 2021-22.

Of the female-led companies obtaining external finance, the highest number was in the Gen X age group, followed by Millennials. These were the highest numbers for these groups across the UK.

Although numbers of business angel investors in Wales remain small in comparison to the rest of the UK, the proportion who are women (28.7%) is higher than in the other UK nations.

8.4% of ethnic minority-owned active companies in Wales in 2022-23 were female-led. This proportion in Wales is lower than in England, Scotland and Northern Ireland although above that in the East Midlands, North East, and Yorkshire and the Humber.

3% of all active ethnic minority female-led companies in Wales secured external capital. This proportion is below that in England and Scotland but above Northern Ireland.

8% of all active female-led EIS qualifying companies in Wales secured external finance, significantly above the rest of the UK.

In 2022-23, 13.7% of Silent Generation-led companies were female-led. This compares to Boomers (13.3%), Gen X (16.3%), Millennials (19.1%) and Gen Z female-led companies (20.8%).

Compared to the rest of the UK, in Wales there are slightly higher proportions of female-led companies in all generations except for the youngest two, Millennials and Gen Zs.

Wales has the equal highest proportion of female-led Silent Generation companies alongside London, and the second highest proportion of female-led Boomer Generation companies below London.

Companies led by Millennials in Wales have the highest average turnover growth rate of 41.1%. Turnover growth rates in Wales of companies led by other generations are much lower – Gen X (23.6%), Gen Z (17.8%), Boomers (14.6%), and Silent Generation (13.7%).