Why women entrepreneurs often wait longer to take business risks — and what that can cost
- Eòsaph Macbeth
- Jun 8
- 7 min read
The American novelist and poet, Erica Jong, once said: “If you don’t risk anything, you risk even more.”
It's a powerful idea, particularly in business.
Fear of risk can lead to stagnation, and with-it apathy, the silent killer of businesses.
Every entrepreneur faces moments where they need to make a decision without knowing exactly how things will turn out. Yet for many women in business, those choices can feel particularly difficult.
Not because women lack ambition. In fact, research consistently shows female entrepreneurs are among the most resilient, determined, and growth-focused business owners in the UK.
Instead, many women simply approach risk differently.
Studies suggest that women aren't necessarily more risk averse than men. Rather, they're often more risk aware. They want to understand the implications of a decision, weigh up the available information, and feel confident in their choice before moving forward.
In many situations, that's a strength. But in business, there can also be a cost to waiting for certainty.
Read on to learn about why women in business can sometimes struggle with overcoming the confidence barrier and how it can stop them from accessing important growth opportunities.
Taking risks requires confidence; for many women in business, it can feel a struggle to build
If you've ever questioned whether you're making the right financial decision for your business, you're certainly not alone. It’s an issue that’s ingrained into women from a young age.
While barriers have reduced significantly in recent decades, many women still enter business ownership with less exposure to financial education, leadership opportunities, and entrepreneurial role models than men. This contributes to an underlying confidence issue among female SME owners.
According to the Aberdeen Group:
Only 18% of women report having “very good” financial literacy
22% report having “very poor” financial knowledge
Just 35% state they have “high confidence” in financial decision-making.
These issues stem from a lack of access to financial knowledge and support across their lives.
Starling Bank research revealed a "gender play gap" where girls receive 20% less pocket money, fostering early financial literacy disparities. Girls are more often paid for "homemaking" chores, while boys are paid for chores related to financial literacy and academic performance.
Far fewer women take economics or business studies than men across school, college, and university. After graduation, according to FENews, women can expect to trail men with equivalent degrees in earnings by an average of nearly £10,000, 10-years into their respective careers. This gap is compounded by health and societal challenges, such as “The Motherhood Penalty”.
So, simply put, female entrepreneurs are expected to manage their businesses successfully, while having:
Less management experience, and being less financially educated, than their male counterparts
Access to fewer funding sources and less personal wealth
A more limited support network to rely on for advice, guidance, and resources.
No wonder confidence is low.
A quarter (25%) of women entrepreneurs say a lack of self-confidence has held them back, while a further almost quarter (23%) cite gaps in operational or financial knowledge.
These factors can make major business decisions feel more daunting, particularly when finance is involved. Yet, understanding where confidence gaps come from is important because it reminds us that confidence isn't something you're simply born with.
It's something you build.
Building confidence could help you make better business decisions
Confidence rarely appears overnight.
It usually develops through experience, education, and support.
If you're finding yourself hesitating before taking a business risk, there are practical steps that can help.
Focus on understanding, not certainty
No business decision comes with a guarantee.
Rather than aiming for complete certainty, focus on gathering enough information to make an informed choice.
The more you understand a decision, the less intimidating it becomes.
Seek advice early, the right support could improve outcomes
Many entrepreneurs wait until they have made up their mind before speaking to an adviser or funding provider.
In reality, early conversations can often provide clarity, highlight options you hadn't considered, and reduce uncertainty.
Build a support network, so you have people to lean on before making important decisions
Research shows many female entrepreneurs feel they lack access to business support and peer networks.
Connecting with other business owners, attending events, joining professional groups, and seeking mentors can provide valuable insight and reassurance.
Remember: standing still carries risk too
Missed opportunities, lost contracts, slower growth, and increasing competitive pressure can all be consequences of avoiding decisions for too long.
Confidence comes from knowledge, not guesswork
Research increasingly suggests that women are not inherently risk averse. Instead, they tend to be more risk aware. They want to understand the implications of a decision, assess the available information, and feel confident in the outcome before acting.
In many situations, that's a strength.
Careful planning, due diligence, and considered decision-making can help businesses avoid costly mistakes. However, in a fast-moving marketplace, there is also a danger in waiting for perfect circumstances.
Opportunities rarely arrive with guarantees attached.
If women are more risk aware than risk averse, the solution isn't encouraging them to take bigger risks blindly. It's reducing uncertainty.
If as a business owner, you understand how a financial product works, how repayments are structured, what protections are in place, and how funding supports your wider business goals, the perceived risk becomes easier to assess.
Knowledge builds confidence.
That's why practical business support matters just as much as access to funding itself.
Beyoncé once said: "If everything was perfect, you would never learn and you would never grow."
Business ownership is rarely comfortable. Every major decision carries an element of uncertainty.
The goal isn't to eliminate risk altogether. That's impossible.
The goal is to understand risk, manage it effectively, and make informed decisions that move your business forward.
Funding could be necessary to grow your business, avoiding it might see opportunities pass you by
The modern marketplace is a volatile place. Global factors, such as war, inflation, climate change, and political instability have made it more important than ever to have a firm grip over your business and its future prospects.
Research from Small Business Britain, in partnership with Starling Bank, found that 82% of female business owners surveyed aimed to grow their business in the next 12 months (2026), with over half (53%) reporting increased revenue since 2025.
Yet many female entrepreneurs see their long-term goals tempered by financial literacy and confidence issues, which can hold them back when opportunities arise. Debt has a stigma and can prompt natural fears.
What if I can’t keep up with payments? What if it puts my business at risk?
However, there is a cost to avoiding financing and not taking on business risk too. You could see:
Opportunities to expand your range of products, client base, or take on new contracts pass you by because you don’t have the finances in place to act
Competitors gain an advantage as they invest in new technology, marketing, or talent while your business remains in a holding pattern
Growth slowdown and stagnate, leaving your business more exposed to future cashflow issues or a decline in trade.
There is a hidden cost to waiting, and it often occurs due to timing.
A new contract may require additional staff before revenue lands. Expansion into a new market might demand upfront investment. A piece of equipment could improve productivity immediately but require funding today.
Business growth often requires entrepreneurs to act before all the answers are available.
Those who delay investment until they feel completely comfortable may find competitors have already moved first. In other words, avoiding risk carries risks of its own.
As Amelia Earhart famously observed: "The most difficult thing is the decision to act, the rest is merely tenacity."
Funding could light a much-needed fire under you and your business
This is where access to finance becomes particularly important.
Too often, borrowing is viewed as a sign that a business is struggling. In reality, many of the UK's most successful businesses have used funding strategically to accelerate growth, improve efficiency, and strengthen their long-term prospects.
Used responsibly, finance could help you:
Invest in equipment, technology, or premises
Hire staff and expand operational capacity
Improve cashflow management
Take advantage of time-sensitive growth opportunities
Build resilience during periods of economic uncertainty.
The key is ensuring that you fully understand the funding options available to you and have access to guidance that helps you make informed decisions.
Traditional lending processes have not always served women well. Female founders continue to report greater challenges accessing finance, while many feel they must provide more evidence, more preparation, and more justification than male counterparts when seeking financial support.
This can reinforce the confidence gap and create a cycle where entrepreneurs hesitate to explore funding in the first place.
If you’d like to explore your funding options — get in touch today!
We're proud to support female entrepreneurs through events, networking opportunities, and initiatives designed to connect business owners with the advice, encouragement, and peer support they need to succeed.
After all, confidence doesn't appear overnight.
It develops through experience, education, and being surrounded by people who help you see what's possible.
It's also why we've invested in a free-to-access knowledge hub filled with practical resources, templates, guides, and educational content that help entrepreneurs build confidence in their decision-making.
Because while nearly half of financial content in mainstream media aimed at women focuses on saving money and cutting back, successful businesses are built by understanding how to invest, grow, and seize opportunities when they arise.
Our team of Investment Managers and Business Advisors are here to help discuss lending options and address any concerns you might have, so you can pursue borrowing with confidence.
To get the process started, click on the enquiry form below or give us a call at 0345 602 7355.
Sometimes, the biggest risk isn't taking the leap. It's spending too long standing on the edge.
Please note:
This article is for general information only and does not constitute advice. All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. We always recommend that you seek direct financial advice from a relevant expert or professional before making any financial decisions.
First Enterprise is a not-for-profit, FCA-regulated finance provider offering unsecured loans from £500 to £250,000 for start-ups and growing businesses across the UK.
We support businesses that struggle to access mainstream finance, with a focus on underrepresented groups. Funding is delivered through government-backed national and regional programmes.
We offer human-made lending decisions, a dedicated advisor for every applicant, and no penalties for early repayment.
