The rise of the female millionaire

Last month, figures released by Radius Equity revealed that the number of women with an income of over £1m was up by almost a third year on year. What’s more, the number of female millionaires is increasing at a much faster rate than the number of male millionaires, which is up just 10% year on year.

There is still a long way to go (male millionaires still outnumber women by more than 10 to one) but this acceleration is welcome news and highlights two important things.

Firstly, it is further evidence that the gender pay gap is getting narrower. But it also indicates that the number of women reaching senior roles and running successful businesses is also on the up.

According to the Office for National Statistics, between October and December 2014, 77,000 more women chose to become their own boss than during the same period in 2013: a rise of 5.6%. The number of male entrepreneurs rose just 0.1%.

It seems the entrepreneurial opportunity gap is narrowing. Only 18% of businesses in the UK are owned by women, so there is a huge amount of nascent talent and, importantly, untapped revenue in the potential of female entrepreneurs. According to stats from 2013, majority women-led SMEs contribute £70bn to Gross Value Added.

I spoke to female members of The Supper Club about their views on the increase in female business leaders. Diane Young heads up marketing business The Drum. She thinks it was only a matter of time before this change would happen, as women’s natural talents are suited to business. “Women have amazing organisational skills, as well as having creativity and brainpower that business organisations have underestimated in the past.”

Katie Howell is CEO of Immediate Future, a social media consultancy. She thinks the upsurge is a reflection of the fact that “the recession has opened up the opportunity to try a different career approach,” paired with an increased confidence from women “in taking a risk; often challenging the status quo and grabbing the opportunity.”

Of course, there are still challenges. Many women cite access to finance as a major hurdle in starting a business and although this is true across the board for startups, the Women’s Business Council cites interesting evidence that suggests women who apply for finance are more successful than men. So it seems getting women to actually apply may be the hurdle.

Cecile Reinaud, founder of Seraphine maternity wear, was adamant about the power role models can have in “conquering fears and providing a positive vision of what women can achieve.” She includes Tamara Mellon and Arianna Huffington in her list of personal role models who gave her “motivation and drive”.

Young was also keen to highlight the importance of both male and female roles, but agreed that female role models play a specific part in illustrating how family commitments can be handled alongside a business career.

Howell believes there is still progress to be made in the tech industry in particular, and fights hard to see more women speakers and thought leaders, which “makes an astonishing difference to the next generation and to other female entrepreneurs.”

Despite challenges, the playing field is levelling, thanks to increased confidence and a growing number of role models. Women entrepreneurs are firmly in the fast-lane but the vital thing now is that we maintain momentum, something that will only be achieved if we continue to push forward and support the next generation of women in business.