Female entrepreneurs are risking it all by neglecting company finances
45% of female business owners would rely on their life savings if they were unable to work for six months due to illness or family bereavement
72% of the UK’s one million female entrepreneurs are risking their business and family wellbeing by neglecting to protect their company’s finances, according to research from Aegon.
The survey of 2,051 women in business – weighted to the number of female entrepreneurs in the country – revealed that more than half (54%) of these women have no personal protection for them or their family if they’re unable to work.
45% of female business owners said they would rely on their life savings if they were unable to work for six months due to illness or family bereavement, with just 13% believing their savings would last a year or more, while 22% fear they’d only stretch between one and three months.
It’s suggested that financial advisers or institutions should engage female entrepreneurs when they become self-employed, with 69% of respondents approached when they took this course of action.
An additional 10% were prompted as they took out a business loan, which is a positive sign given banks now rarely make protection cover a condition of their lending.
In 2014, it was calculated that 20% of the UK’s small businesses were either solely or partially-led by women.
Stephen Crosbie, protection director at Aegon, said:
“Most people running a business have a greater protection need with the burden of financial responsibility for their employees to consider on top of themselves and their families.
“Many expect to turn to savings in the event of the unexpected but the reality is that these are unlikely to provide the financial support these women need for both their families and the day to day costs of running a business.”
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