Dudley MP's bill on women in business passes first hurdle in the House of Commons

The Dudley MP said the bill sought to address the deep-rooted barriers that continue to prevent female entrepreneurs and business leaders from accessing capital, investment, and public financial support on equal terms.

Miss Kumar told the Commons that in 2024, only two per cent of UK equity investment went to female founders, a decline on the previous year.

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More than 80 per cent of venture-capital funding was allocated to male-dominated businesses, despite research showing that women-led companies deliver, on average, 35 per cent higher returns on investment, she added.

She said women typically started businesses with 53 per cent less capital, received loans that were 68 per cent smaller, and were more likely to face all-male investment panels.

The inequality was even more stark for black women, who between 2009 and 2019 received just 0.02 per cent of UK venture capital funding.

She added that, according to the Rose Review, the UK could add £310 billion to its economy if women were supported to start and scale businesses at the same rate as men.

Miss Kumar said: “This Bill is not just about fairness, it is about unlocking prosperity. 

"The evidence is clear: when women-led businesses succeed, our entire economy grows. Yet too many women continue to face systemic barriers that limit their potential. This is about fixing the system, not fixing women.”

Miss Kumar said businesses in Dudley exemplified both the challenge and the opportunity. She praised the success of Iron & Velvet, the UK’s only manufacturer of eco-friendly, water-soluble cleaning sachets, led by chief executive Debra McDonald, who shared her experience of bias and undervaluation from investors.

Miss Kumar's bill, if it became law, would require banks, venture capital firms, and public funding bodies to publish date on lending and investment, broken down by gender.

"This will shine a light on inequalities and help drive systemic reform," she said.

The proposed legislation also sets target for government-backed support for business, with at least 30 per cent reaching female-led businesses. It also sets a target for the share of equity finance going to women from two per cent to 10 per cent by 2030.

Miss Kumar said that would align with recommendations from all-party the women and equalities committee.

The bill would also require the Business Secretary to publish a comprehensive report on access to finance for women, providing the evidence base needed to shape future policy and ensure continued progress.

Miss Kumar said while she welcomed recent government commitments, including £400 million for under-represented fund managers and increased investment in female-led venture capital funds, the UK was falling behind international peers. Countries such as the United States, Sweden, and Poland were now outperforming the UK due to sustained, targeted support for women-led businesses, she said.

“Women in Dudley and across Britain have the ideas, innovation and drive to transform our economy," Miss Kumar added.

"What they lack is equal access to the finance needed to grow. This bill is a decisive step towards closing that gap and ensuring that opportunity truly knows no barriers.”

The bill will now progress to its second reading.