The next Scottish government should activate a previously announced commitment to help women-led businesses which are failing at an alarming rate.
Data from a small business survey shows women-led employer businesses have dropped from 20% to just 16% in a single year.
Despite women leading 54% of business start-ups, the post-start-up attrition rate in Scotland has escalated to 70%, meaning seven in ten women who launch businesses are closing within the critical establishment phase.
The data is published as Women’s Enterprise Scotland publishes its Scottish Election Manifesto calling for a £50m commitment to a Women’s Business Centre model.
Recent research by WES revealed that experiences of discrimination by women business owners have doubled from 34% in 2016 to 68% in 2025. Respondents reported being patronised, dismissed, and subjected to sexist comments at trade shows and business events. Women-led businesses receive just 1.3% in equity investment.
WES says that If Scotland matched the United States’ Women’s Business Centre model and its 39% rate of women-led businesses, it would unlock an estimated £17bn in annual gross value added – exceeding the combined contribution of food and drink, creative industries, and sustainable tourism.
WES chief executive Carolyn Currie said “Whilst it is rewarding to see increasing numbers of women starting up in business, the fact that the majority of these promising ventures are failing to sustain beyond the start-up phase highlights the urgent need for the Scottish Government to act on its previous £50m commitment to a Women’s Business Centre model.
“It is time to rethink the current system, which is allowing a wealth of ambition, energy and economic potential to fall by the wayside.
“The dedicated business support provided by nations such as Canada and the US has seen sustained growth for women-led businesses, while in Scotland, the numbers continue an accelerated decline.
“It is time to implement a Women’s Business Centre model and reap the clear benefits across all aspects of the Scottish economy.”
In its manifesto, WES is calling for urgent intervention with four priority demands:
1. Immediate activation of the £50m Women’s Business Centre commitment made in 2021, with a clear delivery timeline establishing five centres, including at least two outside the Central Belt.
2. Emergency funding to remediate COVID-19 funding inequalities and address the post-start-up attrition crisis.
3. Mandatory equality impact assessments and training on 100% of existing and future business support programmes.
4. Cross-party commitment to sustained, multi-year funding beyond electoral cycles, learning from successful international models in the US and Canada that have delivered sustained economic growth.
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