Lazy thinking is holding back a wave of female entrepreneurs – The Times

Report on Gender-Based Economic Disparities and Alignment with Sustainable Development Goals

Introduction: Economic Parity as a Cornerstone of Sustainable Development

Persistent gender inequality within the United Kingdom’s economic landscape presents a significant challenge to the nation’s progress towards key Sustainable Development Goals (SDGs). The disparity in pay, career progression, and entrepreneurial opportunities for women directly contravenes the principles of SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities). This report analyses the structural and cultural barriers impeding economic gender equality and outlines policy recommendations aligned with the 2030 Agenda for Sustainable Development.

Analysis of Key Disparities and Their Impact on SDGs

The Gender Pay Gap: A Violation of SDG 8.5

The UK’s gender pay gap remains a significant obstacle to achieving SDG Target 8.5, which calls for equal pay for work of equal value. Data from the Office for National Statistics (ONS) as of April 2024 indicates a persistent gap.

• The pay gap for full-time employees stands at 7%.
• When including part-time employees, the gap widens to 13.1%.

The “Motherhood Penalty” and Unpaid Care Work: Contravening SDG 5.4

The economic penalty associated with motherhood undermines SDG Target 5.4, which advocates for the recognition and valuation of unpaid care and domestic work and the promotion of shared responsibility within the household. ONS data reveals a substantial financial impact on women following childbirth.

• Women experience an average loss of £65,618 in earnings in the first five years after their first child.
• This represents a 42% drop in monthly earnings compared to the year before childbirth.
• The financial penalty increases with subsequent children.

The low uptake of shared parental leave, with only 2% to 8% of eligible fathers participating, further illustrates the failure to promote shared responsibility. This is attributed to financial pressures and cultural stigmas, which place a disproportionate burden of care on women, hindering their career progression and economic empowerment.

The Female Entrepreneurship Gap: A Barrier to SDG 5.5

Underrepresentation and Funding Disparities

The significant gap in female entrepreneurship impedes the achievement of SDG Target 5.5, which aims to ensure women’s full and effective participation and equal opportunities for leadership in economic life. A recent inquiry by the Women and Equalities Committee (WEC) highlighted stark realities:

• Only 20% of UK businesses are female-led.
• A mere 2% of venture capital funding in 2024 was allocated to female founders.

Economic Implications and Untapped Potential

Addressing this gap is crucial for fostering inclusive and sustainable economic growth as outlined in SDG 8. The WEC estimates that funding women entrepreneurs at the same level as their male counterparts could unlock an additional £250 billion in economic growth for the UK.

Systemic Barriers and Policy Recommendations

Cultural Norms as Structural Impediments

Progress towards gender equality is hampered by deeply embedded cultural norms that view childcare as predominantly a female responsibility and question women’s capacity to manage both family and business leadership. These societal assumptions create structural barriers that even progressive policies struggle to overcome, reinforcing inequalities and slowing progress on SDG 5 and SDG 10.

Policy Recommendations for Accelerating SDG Progress

The WEC report proposes several actions to dismantle these barriers and create an ecosystem that supports female economic empowerment. These recommendations provide a clear framework for policy interventions aligned with the SDGs.

1. Develop a dedicated national “female entrepreneurship strategy”.
2. Establish clear ministerial accountability for its implementation.
3. Create ring-fenced growth funding specifically for women-led businesses.
4. Mandate transparent data collection and reporting on investment in women-led firms.
5. Set targets for public procurement from women-led businesses.

Conclusion: A Narrative Shift for Sustainable Development

Achieving gender equality in the economic sphere requires more than policy adjustments; it demands a fundamental cultural and narrative shift. Normalizing female leadership, entrepreneurship, and primary breadwinning is essential for dismantling the invisible assumptions that perpetuate inequality. Viewing the success of women in business not as an anomaly but as a standard component of a healthy economy is critical to realizing the ambitions of the Sustainable Development Goals and building a more equitable and prosperous society for all.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

   The article highlights several issues related to gender inequality in the economic sphere, which directly connect to the following Sustainable Development Goals (SDGs):

   • SDG 5: Gender Equality

     This is the most prominent SDG addressed. The article’s core theme is the economic disparity between men and women, covering the gender pay gap, the “motherhood penalty,” the entrepreneurship gap, and the cultural and societal barriers that hinder women’s economic advancement. It directly tackles the goal of achieving gender equality and empowering all women and girls.

   • SDG 8: Decent Work and Economic Growth

     The article discusses issues of unequal pay for work of equal value, interrupted careers for women, and the untapped economic potential of female entrepreneurs. By pointing out that the UK could unlock an extra £250 billion in growth if women were funded at the same level as men, it links gender equality directly to sustainable economic growth and the goal of achieving full and productive employment and decent work for all.

   • SDG 10: Reduced Inequalities

     This goal focuses on reducing inequality within and among countries. The article’s detailed examination of the gender pay gap, the disparity in venture capital funding, and the unequal distribution of caregiving responsibilities are all examples of economic and social inequalities within the UK that this SDG aims to address.

2. What specific targets under those SDGs can be identified based on the article’s content?

   Based on the article’s content, several specific SDG targets can be identified:

   • Targets under SDG 5 (Gender Equality)

     • Target 5.4: Recognize and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies and the promotion of shared responsibility within the household and the family. The article directly addresses this by discussing the “motherhood penalty,” the low uptake of shared parental leave by fathers (2% to 8%), and the cultural expectation that women will handle childcare, which constitutes unpaid care work.
     • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life. The article highlights the “entrepreneurship gap,” noting that only 20% of businesses are female-led and just 2% of venture capital goes to female founders, indicating a lack of equal opportunity for women in economic leadership.

   • Targets under SDG 8 (Decent Work and Economic Growth)

     • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. The article’s central focus on the UK’s gender pay gap (7% for full-time, 13.1% overall) and the significant loss of earnings for women after childbirth directly relates to the principle of equal pay for work of equal value.

   • Targets under SDG 10 (Reduced Inequalities)

     • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… sex… The entire article is a discussion on the economic exclusion of women, particularly as entrepreneurs and high-earners, due to structural and cultural barriers.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

   Yes, the article provides several specific statistics and data points that can be used as indicators to measure progress:

   • Indicators for SDG 5 Targets

     • For Target 5.4 (Shared Responsibility): The uptake rate of shared parental leave by eligible fathers, which the article states is currently between “2 per cent to 8 per cent.” An increase in this percentage would indicate progress.
     • For Target 5.5 (Women’s Leadership): The proportion of businesses that are female-led, mentioned as “Only 20 per cent.” Another key indicator is the percentage of venture capital funding allocated to female founders, cited as “just 2 per cent.”

   • Indicators for SDG 8 Targets

     • For Target 8.5 (Equal Pay): The gender pay gap is a direct indicator. The article provides two figures from the ONS: “7 per cent” for full-time employees and “13.1 per cent” when including part-time employees. The “motherhood penalty” is also a quantifiable indicator, measured as the average loss in earnings for women post-childbirth (“£65,618 in earnings in the first five years”).

   • Indicators for SDG 10 Targets

     • For Target 10.2 (Economic Inclusion): The economic value lost due to unequal funding for entrepreneurs serves as an implied indicator. The article cites an estimate that closing this gap could “unlock an extra £250 billion in growth,” quantifying the economic impact of the current inequality.

4. Table of SDGs, Targets, and Indicators

   SDGs	Targets	Indicators Identified in the Article
   SDG 5: Gender Equality	Target 5.4: Recognize and value unpaid care and promote shared responsibility within the household.	Uptake rate of shared parental leave by eligible fathers (2% to 8%).
   SDG 5: Gender Equality	Target 5.5: Ensure women’s full participation and equal opportunities for leadership in economic life.	Percentage of businesses that are female-led (20%). Percentage of venture capital funding that goes to female founders (2%).
   SDG 8: Decent Work and Economic Growth	Target 8.5: Achieve full and productive employment and equal pay for work of equal value.	Gender pay gap for full-time employees (7%). Overall gender pay gap including part-time employees (13.1%). Average loss of earnings for women in the first five years after their first child (£65,618).
   SDG 10: Reduced Inequalities	Target 10.2: Empower and promote the social and economic inclusion of all, irrespective of sex.	Estimated potential economic growth unlocked by funding women entrepreneurs at the same level as men (£250 billion).

Source: thetimes.com