Visa, the digital payments provider and exclusive partner of the FIFA Women’s World Cup 2023™, is launching a new campaign in collaboration with England star Fran Kirby to celebrate the impact of ‘support squads’ for athletes and business owners alike.

Visa commissioned a study which found that women small business leaders who have a strong ‘support squad’ consisting of friends, family, or colleagues are nearly twice as likely to report revenue growth in the last year compared to those who have a weak support system (67% vs. 32%).

The study found that 91% of women small business leaders surveyed in the UK consider their support network crucial in achieving their professional goals, with 78% stating that their businesses wouldn’t be where they are today without it. 88% of seasoned entrepreneurs embarked on their entrepreneurial endeavours with a team, whereas only 58% of first-time founders did the same.

The findings from this research align with another recent study by Pink Salt Ventures, which reveals how the absence of female funding infrastructure negatively impacts the startup ecosystem.

These results underscore the significance of establishing support systems through joint venture partnerships, venture capital specifically for women or mentorship programs for female founders.

Fran Kirby, Lioness for England and Team Visa football star shares her thoughts: 

“My own support network has been instrumental in my journey, celebrating my successes and picking me up during tough times. It’s incredibly rewarding to be a part of a powerful platform that promotes gender equality and empowers women and girls to achieve their dreams. 

Building a supportive squad

The research highlights that trustworthiness (51%), honesty (42%), and positivity (40%) are the top three qualities sought by women business leaders when assembling their support squads. Furthermore, diversity of thought was found to be critical, with 78% of women business leaders valuing different perspectives and viewpoints in their pursuit of professional goals.

Business psychologist Dr. Lynda Shaw, who offers advice on building support squads for achieving professional goals,  recommends the following:

• Enlist open communicators: when forming a support squad, prioritise individuals who value honesty and positivity, exhibit enthusiasm, and remain focused even during challenging times. Their optimism should be realistic and sensibly brave.
• Encourage mutually beneficial goals: an effective support squad shouldn’t require micro-management. Instead, openly discuss the best way to overcome obstacles and trust the judgement of other squad members. Additionally, understand the intrinsic motivations of each squad member and explore how they align with your goals.
• Embrace diverse opinions: creating a successful support network involves fostering mutual respect for different points of view and encouraging learning among squad members. Diverse ideas and thoughts benefit organisations, so it’s wise to facilitate meaningful connections among squad members.

Supporting women at every stage

As the world gears up for the upcoming FIFA Women’s World Cup, which is expected to be the largest women’s football tournament to date, Visa’s Celebrating Squad Goals campaign and FIFA Player of the Match Award acknowledges women-owned small businesses. 

The winners, who will receive a total of £500,000 in grant funding, will be announced during the trophy presentation at the 64 matches of the tournament across the UK and Europe.

Mandy Lamb, Managing Director of Visa UK & Ireland, expresses the company’s commitment: 

“As our research shows, support networks are truly the unsung heroes of the economy, and for this reason, we urge everyone to join us in shining a spotlight on the individuals who help them thrive.”

Photo source: Sky Sports

The UK’s treasury committee has heavily criticised venture capital (VC) firms after its new report found that all-female founders received just 2% of all venture capital funding in 2021, while less than 2% went to black and ethnic minority-led businesses.

In the report, the cross-party committee of MPs criticises the poor diversity statistics and calls for rapid change from both the government and the industry – with improvements in transparency and diversity data cited as urgent requirements.

What do diverse founders say?

As a black female founder in the UK, Courtney Glymph, founder and managing director at YourStoryPR, says the report’s findings are disheartening, but sadly unsurprising.

“Women and BAME entrepreneurs have long been underrepresented in the startup ecosystem despite their unparalleled support and commitment to its growth,” says Glymph.

“The lack of access to capital is a major barrier for these groups getting funding. Traditional venture capitalists are predominantly male, white and elite, meaning that there is a lack of diversity in the investors’ decision-making processes. If everyone around the table looks, acts and sounds the same, then it is unsurprising that their investments go towards mostly white male founders.”

“However, as this report points out, there is an increasing recognition of the need for change and greater diversity within the UK startup sectors – and we are beginning to see more initiatives that provide access to capital, such as dedicated accelerator programmes and funds targeting underrepresented groups. Though in their infancy, this is a good start. 

“What’s more, we must continue to foster an inclusive culture that actively encourages diversity across the board. We can’t expect to see an increase in funding for diverse founders if we don’t actively start with the pipeline problem,” adds Glymph.

It’s a boys’ club

Jessica Alderson is cofounder and CEO of dating app SoSyncd. She believes a big part of the problem is gender bias, but also the gaps in networks.

“Female founders struggle to secure meetings with investors because most funds only accept meetings via personal introductions,” says Alderson. 

“During our fundraise, I spent a significant amount of time reaching out to funds directly, but I didn’t receive replies even from funds that were specifically for underestimated founders. But I could fairly easily secure a meeting with the same funds if I was introduced by a mutual contact. 

“There’s an irony in that underestimated founders don’t have the same investor networks because of the existing biases – fewer women get funded and, as a result, are less likely to build strong networks in the investment space. It’s a self-perpetuating cycle.”

Alderson acknowledges that many people think that there’s progress being made in terms of equality in the VC industry because there is now more noise than before, but notes the data – such as that published in the treasury committee’s report – shows that the funding gap still exists and is just as wide as ever. 

“I think that one of the best ways to tackle this problem is regulation around fund transparency and diversity metrics,” she adds. “If each fund had to disclose the diversity of its portfolio, then it would be easier to create more accountability in the industry.”

Too much capital in the capital?

In the report, the committee also flagged that VC investment is unacceptably concentrated in London and the South East.

It claims 80% of such investment flows to the “Golden Triangle” of London, Oxford and Cambridge, with London alone receiving almost half of all equity deals despite accounting for just 19% of all small businesses. 

Relevant content:

The truth hurts: how lack of female funding alters the startup landscape
Barclays launches tech start-up support programme for Black founders

Kirstie Pickering - business journalist

Kirstie is a freelance journalist writing in the tech, startup and business spaces for publications including Sifted, TNW, UKTN, The Business Magazine and Maddyness UK. She also works closely with agencies such as CEW Communications to develop content for their startup and scaleup clients.

Whether it’s your Instagram or TikTok feed, the range of content is definitely broad. It can go as far as airbrushed pictures of buttery croissants from your favourite independent bakery to a user generated content (UGC) video of someone trying out a new Dyson vacuum.

This means that social media has become a de facto marketplace where users can easily find information about something they’re looking to buy.

But social commerce is a completely different ball game to traditional advertising. Understanding what content makes for a home run is the key differentiator between successful and unsuccessful brands.

Rather than resorting to the professionalism of PhotoShop or the expense of macro-influencers, brands should look towards the goldmine that is UGC.

UGC is the way to go viral

Statistics undeniably point out that UGC is king when it comes to designing a viral social media strategy. 79% of people say UGC highly impacts their purchasing decisions and 48% of marketing professionals believe that content created by customers can help humanise their marketing.

Joseph Black, co-founder of Unitaskr and Student Marketing Agency SHOUT, knows just how indispensable UGC is for brands. To help companies tap into the value of UGC, UniTaskr is launching a self-service UGC platform so brands and agencies can streamline working with nano-influencers and UGC creators.

The new platform wants to unlock the power of collaborative content and lower the barriers of entry to access UGC. In theory, those who use SHOUT’s UGC platform will have access to a continuous stream of organic content, custom video ads, demos testimonials, product reviews and more.

With ample experience in social media marketing, UniTaskr’s UGC platform is well positioned to help brands navigate the newest emerging trends. Since announcing the launch, Adidas, L’Occitaine and Monday.com are already on the waitlist.

“Authentic and relatable content created by nano-influencers holds a unique power to engage consumers on a profound level,” emphasises Black. “UniTaskr’s platform provides brands with easy access to invaluable resources, empowering them to build stronger brand credibility and authenticity.”

Authentic marketing is so valuable that ads featuring UGC garner 73% more positive comments on social networks than traditional ads. Moreover, brand engagement increases by 28% when consumers are exposed to a mixture of professional marketing content and UGC.

“Consumers are tired of being overly sold to,” warns Black. “Authenticity is the key to long term community building.”

If UGC is so great, why isn’t everyone doing it?

The short answer is that UGC is still riddled with barriers to entry which doesn’t make it the most sustainable marketing solution for everyone.

“Costs have been a concern, particularly for smaller businesses, as creating and managing UGC campaigns can demand significant resources,” explains Black. “Additionally, sourcing and curating relevant UGC can be time-consuming, and ensuring compliance with legal and copyright regulations can be challenging.”

UniTaskr’s UGC platform wants to even out the playing field so that UGC can become the norm in marketing campaigns.

“By providing a cost-effective solution, brands can access a diverse pool of creators without exceeding their budget,” shares Black. “The platform’s user-friendly interface streamlines content curation, saving valuable time and effort for marketers.”

Besides the time and cost components, UniTaskr’s UGC platform also preempts any possible intellectual property issues. “UniTaskr ensures compliance, offering a secure environment for brands to source and utilise UGC.”

Making UGC stand out in a sea of content

Although UGC might sound like a marketing panacea, getting it right isn’t as easy as it looks. Besides fostering trust, UGC should also nurture a sense of community for best results.

UniTaskr’s experience in the field has informed the design of the UGC platform so brands can finetune their marketing content. “Our platform actively encourages user participation, enabling brands to run engaging contests and challenges, resulting in organic reach and word-of-mouth promotion,” explains Black.

Importantly, those who jump onboard UniTaskr’s new service will be able to filter their creators by age, US or UK location, industry, and ethnicity to guarantee diversity in their content.

“At UniTaskr, we firmly believe that diversity is key to authentic content creation,” stresses Black. “By introducing filters for age and ethnicity, our platform aims to empower brands to source diverse UGC content that reflects the richness and variety of their audience.”

Diversity in user generated content has been a longstanding challenge in the industry and is in need of a status quo shakeup to reflect what audiences look like and what they want.

“Diverse UGC not only promotes a sense of belonging among different demographic groups, but also widens the brand’s appeal and helps reach new markets,” reveals Black.

What’s next for UGC?

UniTaskr’s new UGC self-service platform wants to change the way brands and agencies approach content. Importantly, it’s doing so at a time when exciting trends are reshaping the social media landscape.

One trend to look out for is the integration of real-time content creation and sharing. “Brands are leveraging UGC in live events and experiences, enabling audiences to participate and engage with the brand in the moment,” shares Black.

The immediacy of the content helps break down the filters that usually make marketing feel overly produced and inauthentic, making it easier for brands to nurture a sense of community and trust with users.

As the social media landscape becomes more populated with UGC, those that understand what ‘authentic’ actually looks and feels like to audiences will remain at the forefront.

Over 40% of UK-based female business leaders say they don’t have the cash flow or VC funding needed to support their businesses’ growth, according to new research published by Bibby Financial Services (BFS). 

To compare, only half of women business owners said their cash flow is stable and meets their needs – a significant drop compared with two thirds of male respondents who felt the same. While 43% of female business leaders say they don’t have the cash flow they need to grow, only 29% of their male counterparts agreed, representing a 14% point gap.

What do women business leaders have to say?

The news is unsurprising to Caoimhe Donnelly, cofounder and CEO at Legitimate. She says bias – whether overt or subconscious – still persists within the business world, resulting in limited resources and fewer opportunities for women.

“I have experienced this directly when interacting with some investors, and noticed the difference when my male cofounder had dealings with said investors,” says Donnelly. 

“While I acknowledge the positive efforts made in recent years with various initiatives supporting female founders, it is evident that more work remains ahead to level the playing field and truly empower women in entrepreneurship.”

In 2019, the UK treasury commissioned Alison Rose, CEO at NatWest, to lead an annual independent review of female entrepreneurship. In its latest edition, published in February, it found that 80% of female entrepreneurs did not feel confident about economic growth in the coming year. A third of those surveyed expected their businesses to become smaller over that time, and almost half expected fundraising to become more difficult.

The review also stated what we already know to be true: female entrepreneurs represent huge economic potential for the UK. It claims £250 billion could be added to the UK economy if women matched men in starting and scaling businesses.

Mastering business cash flow in uncertain economic times is particularly challenging, but more needs to be done to support female founders in weathering the storm, both through financial support and mentoring.

“Improving the situation for female startup founders will rely on an increased amount of mentorship from experienced entrepreneurs with similar experiences,” says Anne Glover, cofounder and CEO of Amadeus Capital Partners. 

“It is hard for all founders to raise capital, and those that reach out to learn from others fare much better than others. 

“The key thing the government can do to help press for better representation of women, as well as other disadvantaged groups in the tech industry, is to support the collection and publication of trends and data about this subject which can be used to improve business practices. Direct intervention is unlikely to work.”

Relevant content:
How to create a cash flow forecast (and why your business needs one)
The gender funding gap: small strides to equality, but are investors doing enough?

Kirstie Pickering - business journalist

Kirstie is a freelance journalist writing in the tech, startup and business spaces for publications including Sifted, TNW, UKTN, The Business Magazine and Maddyness UK. She also works closely with agencies such as CEW Communications to develop content for their startup and scaleup clients.

Karen Lynch MBE, the former CEO of award-winning social enterprise Belu Water, has been announced as guest judge for next year’s Startups 100 Index.

In collaboration with Startups’ panel of experts, including fellow guest judge, Chris Forbes from Cheeky Panda, Lynch will help to identify the winner of the Social Impact award from the list of the top 100.

The chosen change-maker will be a UK startup which is truly impact first. Leading the charge in Corporate Social Responsibility (CSR), they will be selected from a shortlist of firms by Lynch; herself an experienced entrepreneur-for-good.

Telling Startups why she decided to partner with the index, Lynch tells us: “When you look at the legacy of these awards, some amazing businesses have been spotted relatively early on. The list is a real flag to wave for social entrepreneurs. It’s a point of endorsement.”

Who is Karen Lynch?

Lynch’s social impact journey began in 2011, when she became CEO of Belu Water. After more than two decades in what she calls the corporate world, she began to get itchy feet.

“I was jealous of people with a vocation,” she says. “I thought I was going to retrain as a vicar or go and work for a charity. But what I was really good at was running businesses.”

Having found what she was good at, the next step was doing something good with it. Steering towards more meaningful work, Lynch discovered the world of social enterprise through Belu Water.

In 2023, the trailblazing brand is a million-pound titan stocked in almost every leading regional and national wholesaler. And, it does all that while donating 100% of its net profits to WaterAid.

Likely, if you’d have told Lynch that fact twelve years ago, she wouldn’t have dared to believe it. Coming from a background in the finance industry, she knew she faced a monumental challenge to turn Belu into a profit-making venture.

“We essentially had to rip it up and start again from every aspect,” she recalls, “brand, business model, funding, structure, product range. I didn’t really know whether we would get there when I set that goal from those early startup days.”

Lynch’s success story has made her a legend in the entrepreneur networks. She has since used her platform to set up the mentoring service, Expert Impact in 2014, and as the Vice Chair for the UK’s membership body for social enterprises, Social Enterprise UK.

“The great thing about social enterprise is that there’s a real human drive,” says Lynch. “Our work is all about giving social entrepreneurs access to some of the world’s best founders on a one-to-one basis for advice money can’t buy.”

Social impact in 2023: the new business normal

As the mastermind behind Belu Water, and its impressive growth journey, Lynch can lay claim to being one of the first social entrepreneurs to successfully balance the so-called ‘triple bottom line’ (TBL).

The TBL theory states that a company should add as much weight to social and environmental concerns. It therefore measures success in terms of three P’s: profit, planet, and people. From Lynch’s perspective, a TBL is now the norm for startups.

“I think any business that has its brain engaged is noticing that pressures are increasing from all around,” she comments. “Teams want more purpose, as do investors. Becoming a registered B Corporation was a new thing. Now it’s the starting block.”

As a result of this shift, Lynch sees there being little distinction today between the challenges facing traditional businesses, and those with social benefit at their core.

“I think the challenges faced by social enterprises are exactly the same as every other business,” she says. “It’s about figuring out your target audience, versus where you are wasting time and money and investment and trying to get to them.”

Of course in today’s market, that’s an especially tough nut to crack. The cost of living crisis has depleted consumer spending power, while sending supply chain and business overhead costs skyrocketing. Lynch knows first-hand the impact this has on startup owners.

“We need to actually really recognise how bloody hard it is,” she presses. “I’ve been going through the startup journey with Expert Impact speakers over the last 18 months. There’s not enough time, not enough resources, not enough money. It’s exhausting.”

Despite the struggles, such turmoil can actually make community-oriented organisations ripe for success. SME owners are increasingly turning a personal struggle into a force-for-good, leading the way for disruption. Passion for the cause provides a powerful fuel source.

Examples include onHand. The on-demand volunteering app was founded by Sanjay Lobo after his dad was unable to find a carer to carry out household tasks during lockdown. Since then, it has partnered with over 150 cross-sector brands to support their CSR objectives.

“We’re absolutely going to see more social enterprises emerging where the founders are experiencing the societal issue themselves, and they want to solve it,” Lynch predicts.

Could you be the next Startups 100 social impact hero?

It might seem like a step change coming from the companies that want to do good. But as Lynch reveals, the number one thing she wants to see from Social Impact entrants is the bad: the mistakes, trials, and tribulations that make up every startup origin story.

“What I want is an honest narrative,” she stresses. “Not the elevator pitch, I want to hear the real story complete with the pain and the obstacles that have been overcome.”

Lynch proposes social entrepreneurs take a no-nonsense policy when it comes to submitting their entry. “Look at the awards entry as if we were investors”, she advises. “Increasingly the things investors are looking for most is directness and data, not fluff and spiel.”

Practically speaking, the business structure must also signal to the judges that the company is locked into solving a societal problem for the long-haul; not just a short-term charity partnership.

“A classic red flag for this would be a hand sanitizer business that boomed in COVID and is now floundering,” she says. “I’m looking for sustainable business models that also have further growth opportunities.”

More than anything, Lynch advises: think on the business case for applying. Beyond the benefits of featuring on the Startups 100 Index, she emphasises that even the application process can be therapeutic for today’s startup owners.

“You may be fatigued as a founder, you may be surrounded by obstacles right now in year three – use the Startups 100 as a reason to take stock,” she recommends. “Through that entry, focus the energy and revitalise your team behind this great opportunity.”

Are you a mission locked UK startup that’s solving a big societal problem? Apply to the Startups 100 for a chance to be named Social Impact award winner for 2024.

With the recent launch of Apple’s Tap to Pay function, research from digital payment provider, takepayments, suggests that the UK has become a contactless-first economy. 

A survey of over 1,000 UK consumers has revealed that Apple Pay and contactless payments have overtaken cash payments as our favourite ways to pay in-store, and the UK is more ready to embrace Apple Tap to Pay and other contactless payment options than other countries.

UK leading the charge with contactless payments

In addition to the report from takepayments, a report by Lloyds Bank from September 2022 also confirmed that 87% of UK face-to-face payments were contactless: which is quite a jump compared to other leading economies. 

Estimates from Payments Journal suggest that only 45% of Americans use contactless payments in comparison; just half of the uptake of UK shoppers. 

While this shift was most likely exacerbated by the pandemic, the early adoption of contactless payments in the UK market is another factor. The system was widely embraced in 2007, eight years ahead of the US, which only launched “tap to pay” in 2015. 

The increase of the UK contactless limit to £100 in October 2021 may have also played a significant role in its popularity over the past few years.

Jodie Wilkinson, Head of Strategic Partnerships at takepayments, says:

“Our data also shows that contactless payments grew by 596% in colleges and universities from 2022 to 2023. 

The FIS also estimates that the continued growth of digital wallet payments will account for 21% of the UK market share by 2026.”

She continues: “This shows fairly clearly that the majority of customers want to pay with contactless methods, whether that’s physical or digital cards, wherever they shop. Failing to accommodate these needs could put small businesses at a disadvantage, as cash-free shoppers may take their money elsewhere.”

See: The best POS systems for small businesses in 2023

Further findings

It is reported that younger consumers are driving the adoption of mobile payments like Apple Pay, Google Pay, and PayPal. 

30% of Gen Z said that mobile payments were their favourite way to pay, compared with just 5% of over-55s.

1 in 5 respondents (20%) said mobile payments were their preferred choice, ahead of cash and Chip & PIN. 

When asked why, 42% gave convenience as their main reason, followed by:

• “Mobile payments are the most widely accepted option” – 23%
• “I never carry cash” – 19%
• “It’s the most secure option” – 11%
• “I don’t know my PIN” – 3% 

Nearly 1 in 3 people admit to never carrying cash, and more than half admitted to being deterred from shopping at a cash-only business.

See: Nearly half of UK consumers want to pay for subscriptions with direct debit

Sticking with cash: the right option?

The top reason people prefer cash is they feel it’s the most secure option. More than half (53%) of cash users cited security as a reason they stick to coins and notes.

Budgeting came in as a close second: 52% of those who prefer cash said that carrying it helps them stick to a hard spending limit in stores, deterring them from overspending.

However, Wilkinson highlights why cash isn’t quite as useful for budgeting and security as many people might believe. She states that sticking with cash may sound good in theory, but:

• It requires physical money: regularly withdrawing your income in cash may involve several trips to the bank. You’ll have to set time aside each week or month to get the money and budget your contributions.
• Money can be lost or stolen: some people may find themselves carrying large sums of money around that could be lost or stolen. You’re unable to contact your bank and freeze payments like you are should you lose your debit or credit card.
• You may miss out on interest or cashback options: by dealing primarily in cash, you may miss out on cashback on card transactions and interest on savings.

Conclusion

According to this new data, contactless is the most popular payment method in the UK. Mobile payments like Apple Pay came in 2nd, and cash is now in 3rd.

Earlier this week, the government announced a possible cap on the number of students who study so-called “rip-off” university degrees that it claims are leaving some students dissatisfied.

Under the plans, the Office for Students (OfS) will restrict the number of students joining courses that do not lead to what it terms “good jobs”. Some foundational courses, including business, will also be reduced by just under £4,000 per year.

The government claims this will help young people choose an alternative path “that is right for them”, such as an apprenticeship. Opponents argue the measures could suppress social mobility by limiting the number of employees coming from diverse academic backgrounds.

Below, we hear from hiring experts to examine what the plans might mean for the UK labour market.

What is a rip-off degree?

Whitehall has steered clear of actually naming the degree courses that, in their view, are leaving students short-changed. However, it’s likely the limits will be imposed on courses that have high dropout rates, or a low proportion of new graduates entering the workforce.

According to the latest data from the Higher Education Statistics Agency (HESA), there were four degree types where fewer than half of graduates from the academic year 2020/21 had entered full-time employment after leaving university. These were:

In terms of ‘high-value’ degrees, data from the LEO suggested that medicine and dentistry graduates had a median graduate earning of £52,900 five years after leaving university. Performing arts stood at £21,200.

HESA data from March 2019 also revealed the five courses with the highest non-continuation rate among first degree entrants:

• Computer science: 9.8%
• Business and administrative studies: 7.4%
• Engineering and technology: 7.2%
• Mass communications and documentation: 7.2%
• Creative arts & design: 7.2%

In comparison, medicine and dentistry and veterinary science students had the lowest non-continuation rate at 1.5%.

In a government press release, Prime Minister Rishi Sunak said: “Too many young people are being sold a false dream and end up doing a poor quality course at the taxpayers’ expense that doesn’t offer the prospect of a decent job at the end.

“That is why we are taking action to crack down on rip-off university courses [and] help more young people to choose the path that is right to help them reach their potential.”

“Differing perspectives and values are vital to business”

For now, it remains unclear what the cap on student numbers will look like in practice – or how the policy will differ from existing legislation.

Universities already face fines from the OFS if not enough students are in graduate jobs 15 months after finishing their degree.

Based on the HESA data, it appears that the government’s clampdown on ‘rip-off’ degrees is a calculated attempt to shift students towards subjects that are STEM (Scientific, Technical, Engineering, or Mathematical).

The UK has set itself a target of becoming a “science and technology superpower by 2030”. By capping the number of students who can enter sectors like the creative arts, the government is essentially prioritising STEM courses. These, they claim, will develop the skills necessary to support productivity and economic growth.

Undoubtedly, UK companies are struggling to source STEM-skilled workers. Rapid technological advancement post-COVID, such as the emergence of AI, has helped to widen the gap between the digital roles being advertised, and the current workforce’s abilities.

Many SMEs report that the digital skills gap is now threatening their growth plans. But will narrowing down the number of available spots on a course really make the industry less appealing to a young person looking to study at university?

Amy Foster says no. Foster, who is chief talent officer and partner at business consultancy firm, Rockborne, praises the government’s intention to improve the quality of degrees. However, she argues scrapping courses is not the solution.

“Non-STEM graduates have a huge amount to offer, particularly to the tech sector,” she states. “Consider the core skills needed to be a data or tech professional and these will be covered in other degrees, such as humanities.”

It’s certainly true that a STEM degree isn’t necessary to succeed in the business world. In 2018, a British Academy Project found that 58% of CEOs from FTSE 100 companies had studied arts, humanities and social subjects. 19% of these businesses are also STEM.

In Foster’s view, lowering the number of graduates from arts-based degrees might therefore lead to a homogenised workforce, where individual strengths and potential is unrealised. “Differing perspectives and values are vital to the success of a business,” she affirms.

What is the soft skills gap?

Kirsty Barden is Head of Business Development at Management Development Services, the UK’s foremost provider of management training for the food industry. Barden is concerned that the government proposals will only make it more difficult for companies to recruit talent.

“In the last 37 years, we’ve seen graduates from diverse disciplines like music production, anthropology, and even fashion thrive in the agri-food sector,” Barden tells Startups. “Reducing these courses may limit the breadth and diversity of skills entering our industry.”

Rather than fixing the talent shortage, diverting young people towards identical career paths could therefore end up creating another skills-related challenge for SMEs to combat: the soft skills gap.

Soft skills are personal attributes. They come from a person’s experience and background, making them much harder to teach than technical, role-specific skills.

Shortages of soft skills is already a very real obstacle for today’s companies. A recent survey of 1,000 UK business owners found that, on average, employers regret making three hires a year due to the number of ill-trained new recruits entering the workforce.

According to the report, 50% identified poor communication and team working as the most common characteristics they saw in a bad hire.

University isn’t just about getting good grades in certain subjects. Important soft skills gained while studying include networking, time management, and collaboration – all of which are abilities that can be essential during a person’s career.

“It’s common to base hiring decisions on which university someone went to or if they studied a particular subject,” says Foster. “But history has taught us that the best employees will not all come from the same background.

“By keeping an open mind about the subjects that applicants have studied at university, and instead focussing on the skills they’ve developed or the value a candidate can bring, organisations are likely to gain a greater range of experiences and perspectives.”

“Providing new pathways into the workforce”

Alongside the potential problems, the proposals also present an opportunity for businesses to reevaluate their recruitment strategy. By assessing their new hire checklist, bosses can ask whether hiring managers might overemphasise a degree during the hiring process.

In the past, big name employers including the civil service have traditionally specified that applicants needed a 2.1 degree from a Russell Group university to work at the organisation.

Sadly, the practice persists. Research from Multiverse shows that the majority of respondents still ask job seekers to list a degree on applications. That’s despite the same report finding that 70% of leaders think uni leavers are underprepared for the workforce.

Still, there are signs the sands are shifting. Earlier this year, PwC scrapped demands for a 2:1 degree from applicants. Is this a sign that recruiters are rejecting the idea of a degree as a passport into corporate work?

As well as curbing the number of spots open on low-value courses, the government also intends to lower the maximum fee that universities can charge for classroom-based, foundation courses from £9,250 to £5,760.

Brendan Wincott is managing director of Guardian Support, an HR consultancy firm. Wincott hopes that these plans will help to open up new routes into the workforce for young people.

“These plans are about removing courses that saddle students with debt, and instead providing genuine pathways into work,” he assesses. “Recruitment could be positively affected.”

Positive news for apprenticeships

Wincott specifically points to an upswing in apprenticeships as a potential positive outcome under the government’s plans. Data indicates that apprentices have contributed over half a billion pounds in cost savings for SMEs.

Largely, this is due to lowered staff turnover. 93% of trainees remain at a company once qualified, on average, saving thousands in avoided hiring and onboarding fees.

Apprenticeship schemes can hardly be labelled ‘low-value’. Those who finish a degree (which take three to six years to complete, depending on the course level) receive a qualification equivalent to a full undergraduate or master’s degree.

This learning can be tailored to plug relevant skills and knowledge gaps within the business. Such bespoke training also simplifies the talent pipeline in businesses, like succession planning.

Plus, trainees – regardless of whether their course is STEM or arts-based – will be earning money for the time and effort put into training, fixing the problem of young people feeling swindled by hefty university tuition fees.

Foster reveals that Rockborne has seen a vast increase in the diversity of people applying to its training programme, “simply by looking for raw talent and ensuring that our application process is not unnecessarily exhaustive.

“Businesses should take an open-minded approach to recruitment, by making room for other disciplines instead of restricting options,” she advises.

There are many benefits to taking on an apprentice. Learn how to navigate the process of finding, employing and managing an apprentice trainee in our full guide.

Access to flexible working arrangements has surpassed salary as the top workplace benefit amongst UK employees. The results suggest more staff are choosing work-life balance over financial stability.

Business Name Generator surveyed over 1,000 office-based workers in the UK to reveal the perks at the top of their wishlist for improved workplace wellbeing. Hybrid working was easily the most popular choice, as 94% of respondents agree the perk improves staff morale.

Variations of agile work, such as flexible office space and able to choose your own hours, also topped the charts.

Big name employers like Google and Meta are attempting to bribe, or even blackmail, workers back into the office, as companies deal with poor attendance coupled with rising rent payments.

Against the backdrop of an employee engagement crisis, the findings are a reminder of the opportunities that a hybrid policy could bring SMEs in terms of finding, and retaining, talent.

Flexible working a priceless perk for UK employees

That the employee benefits podium is entirely centred on flexible working is telling. All three policies scored over 90% favorability with staff, beating more tangible benefits like an annual bonus, paid overtime, and even a market value salary.

Time is money, as the saying goes. Flexible working has been found to help employees better balance their work and home responsibilities, including childcare. It seems individuals are favouring initiatives that limit avoid stress or burnout, rather than help financially.

Employers have begun refining their employee benefits and perks packages over the past year as a way to combat labour shortages, which have been threatening small business growth since the pandemic, and entice new talent.

Viewed in this way, the Business Name Generator analysis represents a big financial opportunity for SMEs. Cash-strapped organisations have struggled to raise salaries in line with inflation.

Knowing that teams prefer flexible working over a potential pay increase will ease some of the pressure off employers. Plus, the findings could prove doubly lucrative.

Alongside lower staffing costs, the research also tells bosses that a flexible workforce will be more satisfied in the long-term, reducing the risk of hiring regret (caused by taking on an ill-matched or dissatisfied new starter who leaves within the first year of employment).

Workers switch careers for a flexible career path

The careers marketplace, Indeed conducted research into the most attractive industries for career changers. It found that those industries where flexible working is less widely available also demonstrate the lowest levels of staff loyalty, on average.

The sectors seeing the highest staff turnover rate include tourism, retail, hospitality, and customer service. Staff members from these groups are actively searching for new roles in a different industry, while there is little interest from new joiners.

When hiring in-person, customer service roles, SMEs in these types of firms will find it harder to offer flexible working options compared to jobs that can be done online (ie. software development or accounting).

Driving jobs are the most popular occupations for people considering a career change. Most members of the driving workforce, such as Uber drivers, are self-employed. This allows for workers to be their own boss and choose their own working hours.

Designing a flexible work policy may therefore be the best option for attracting new talent. Initiatives such as the four-day week, or swapping bank holidays, have become more widespread as hiring managers think of ways to outpace rival firms.

Conversely, forcing employees to come back to the office is also likely to have a negative impact on a company’s recruitment strategy. Research has shown that 64% of employees who plan to switch roles are doing so after being told to come back into the office full-time.

Government joins calls to improve flexible working accessibility

Business Name Generator’s research indicates that, while over 9 in 10 UK workers want the ability to WFH in their current role, just over a quarter currently have access to the perk.

That’s despite official figures showing that over 40% of company employees were working at home in some capacity during 2022, and signals that some business owners may be winning the return-to-office debate.

To ensure every UK worker has the right to request flexible working, the government has published plans for a Flexible Working Bill.

Also known as the Employment Relations Bill, the legislation aims to give employees greater flexibility over where, when, and how they work. Last week, it completed its final stage in the House of Lords, meaning it now only requires royal assent before becoming law.

Under the plans, all UK employees will be eligible to make two flexible working requests per year from day one of employment. While employers are still able to turn a request down, they must consult with the employee within two months to explain their reasoning.

Likely, the bill will have a big impact on how many SMEs operate in the UK. For example, an organisation may advertise and appoint a full-time, office-based role only to receive a request for flexible working on the first day of employment.

Company owners must be prepared for these eventualities. Employers should research the most common flexible options (like part-time, remote, or at-home working) to consider how the team might potentially introduce the perk to your own business model.

Our guide on hybrid work policies has more information on how to design a flexible working strategy that will satisfy staff, including what to consider.

A recent survey conducted by Pink Salt Ventures, a UK venture capital firm exclusively focused on funding female founders, sheds light on the differential treatment experienced by male and female entrepreneurs in the investment landscape. 

The survey highlights various challenges faced by female founders, emphasising the need for investor-side reform. 

Pink Salt Ventures collaborated with Dr. Dana Kanze, an expert on gender bias in venture capital, and leveraged her expertise in compiling the survey data. Dr. Kanze is renowned for her TED talk on the inadequacies of female funding.

Survey highlights

The survey findings underscore the glaring disparities faced by female founders in their interactions with investors.

An overwhelming 97% of respondents acknowledged the existence of a fundamental difference in how investors treat male and female founders. The awareness of differential treatment can act as a disincentive for aspiring female entrepreneurs. This can manifest in less women applying to business awards and programs, and seeking venture capital. 

The perception that they will face biased treatment and limited funding prospects may discourage talented women from pursuing entrepreneurial ventures. This not only hampers the personal growth and empowerment of women but also deprives the business ecosystem of their valuable contributions.

Approximately 83% of respondents identified the absence of female decision-makers as the most significant barrier to funding, particularly during the post-seed stage of fundraising. 

By excluding female decision-makers, the investment community is missing out on the valuable insights and expertise that women bring to the table. Female founders often focus on addressing unmet needs or underserved markets, bringing fresh perspectives and innovative solutions.

A significant 76% of respondents believe there is a lack of awareness among investors regarding what constitutes a backable business. This knowledge gap may hinder female founders’ access to funding, as their business models and growth potential may be underestimated or overlooked.

And finally, among the surveyed entrepreneurs, 82% identified as first-time founders, while only 18% identified as serial entrepreneurs. 

88% of serial entrepreneurs started their entrepreneurial journey with a team, while only 58% of first-time founders did. 

This highlights the importance of support structures such as joint venture partners or mentorship opportunities for first-time female founders, who may face additional challenges due to their limited prior entrepreneurial experience.

A call for change

Pink Salt Ventures states: “This is a wake-up call for investors to take action to ensure female founders have the same opportunities as males. 

There is a huge opportunity to drive growth in the industry by backing underfunded talent. 

Generationally speaking, the pipeline of female entrepreneurial talent only continues to grow, and our research shows what the ecosystem needs and is asking for: more dedicated capital, networks and access to scale their companies.”

Conclusion

The research shines a spotlight on the disparities faced by female founders in the realm of venture capital funding.

The overwhelming consensus among respondents underscores the urgent need for change within the investment community.