‘The untapped potential is astonishing’: Women-led businesses could boost the Scottish economy by £10.3bn
A new report reveals that closing the gender export gap could boost trade by up to £10.3 billion. Now, the government is stepping in.
Why does this matter?
Researchers found that Scottish SMEs (small to medium-sized enterprises) run by men export overseas 2–9% more than women-led SMEs in recent years. This disparity is yet another way female entrepreneurs are at a disadvantage. Currently, UK government data shows the number of high-growth businesses led by women remains ‘stagnant’.
Not only would closing the gap make entrepreneurship more accessible for women, but findings suggest significant economic gains could come from promoting women entrepreneurs’ global trade. Academics from the University of Strathclyde and University of Stirling predict total turnover from closing this gap could be between £2.1 billion and £6.3 billion over one year, rising to £10.3 billion over two years.
What is the Scottish Government’s response?
Business Minister Richard Lochhead has announced a series of measures aimed at increasing export opportunities for women-led businesses. These include raising awareness of exporting opportunities, targeting women’s businesses for foundation and e-commerce training, aligning export and entrepreneurial policy priorities for women-led SMEs, expanding pro-trade programmes to include more women, and increasing the international exposure of women’s networks.
Lochhead said in his announcement:
“The untapped export potential of women entrepreneurs identified by this report is astonishing. The measures I am announcing today are just the beginning. We will work with organisations such as Scottish Development International and the Scottish Chamber of Commerce to understand the specific export needs of women-led businesses and provide further assistance.”
The specifics of how the government will meet these goals are yet to be revealed, but representatives suggest the approach will align with Scotland’s broader trade strategy.
What has Scotland done so far?
The researchers’ recommendations for closing the gender export gap align with ongoing economic strategy, including a 2023 government report titled Pathways, which advocates for increased investment in women’s entrepreneurship.
Scotland has already committed at least £4 million to support women’s early-stage entrepreneurial endeavours, with the aim of expanding the number of women starting businesses.
While the gender gap mirrors global export trends, the Scottish Government claims it intends to proactively address the inequality ‘as soon as possible’.
How might this affect women-led businesses?
Gemma Stuart, founder of Edinburgh-based gut health brand Gut Wealth, welcomes the report, saying:
“As we all know, female founders are underfunded at every stage of growth, and while the Pathways report has signalled lots of opportunities, we have decades of underfunding to solve. It’s not just a benefit to our business, but to the economy as a whole.”
Data from the Gender Index report shows only 18.2% of funding in the UK goes to women-led businesses, compared to 62.9% for male-led companies.
Government support can be fundamental for many startups. Ms Stuart was recently awarded funding through the Scottish EDGE competition aimed at women. She explains what this support means for her business:
“I intend to scale Gut Wealth here in the UK and internationally with some of the loan funding I secured from winning Scottish EDGE. We’ve trialled exporting to Ireland, but even in 2024, multiple changes to export make it more challenging. Government support, with clear guidance and ideally help to attend international trade shows, would go a huge way to helping me and others scale our businesses.”
Scottish EDGE celebrates Scotland’s boldest startups
In a powerful show of innovation and community, the Scottish EDGE Round 24 awards brought together the country’s most promising founders—including Gemma Stuart of Gut Wealth. The group photo, taken at the awards ceremony, showcases the diversity and ambition of Scotland’s startup scene. As a recent EDGE winner, Stuart’s success story is a testament to what targeted funding and government-backed support can achieve for women-led businesses.
If successful, Scotland’s initiative could set a precedent for addressing gender disparities in international trade—distinguishing itself from UK-wide trends. The government’s next steps will determine how effectively these commitments translate into tangible economic growth for women-led enterprises.
Visit gutwealth.co.uk to find out more about Gemma’s product and plans.
