Juul Vaandrager: The untapped potential of female entrepreneurship

December 19, 2023

By Juul Vaandrager, Director Venture Capital at the Nederlandse Vereniging van Participatiemaatschappijen (NVP)

The share of women starting a business in the Netherlands has remained unchanged for 10 years, namely around 37%. That may sound promising, but it also means that the share of male starters is still about 63%. Since half of our population consists of women, there is still a world to be won.

The difference becomes even greater when we look at companies that are scaling up. There, only 10% have a woman in the senior management team. And yet research shows that more diverse teams are not only good for work culture, but also lead to better performance and significant economic benefits. In short, there is a lot of untapped potential that we can tap into. A unique opportunity!

The big question now is why in 2023, with this knowledge in mind, the percentage of female entrepreneurs has not shown a strong increase. This can be traced back to various causes, the most important of which are difficult access to appropriate financing and persistent prejudices. It actually starts with the perception of female entrepreneurs. They often receive similar responses to their ambitions: 'But you have a family, don't you?' And recurring patronizing questions about how their 'little business' is doing.

Good news

But there is also good news. Change starts with insight and we now have that insight. In the United Kingdom, the 'Investing in Women Code' was launched in 2021 to improve access to capital for women entrepreneurs. There are now more than 200 signatories and the initiative is very successful. It turns out that just asking signatories to collect certain data points creates greater awareness within these organizations. Furthermore, there has actually been significant growth in the number of British female entrepreneurs over the past three years.

The premise is that if we can provide women with better access to capital, more female entrepreneurs will be successful and scale their businesses. That's not just good for these women and these companies, it's good for the entire economy. Not only now, but also in the future. We know that nothing is as stimulating for future generations as inspiring (female) role models.

Signing Code-V

A good example is followed and, thanks to a number of initiators, we now also have our own code in the Netherlands. On Tuesday, December 12, 65 parties signed Code-V: the Dutch Code for Stimulating Female Entrepreneurship. It is a commitment to accelerate the growth landscape for female entrepreneurs in the Netherlands. Signatories include a large number of public and private parties, including PE/VC funds, banks, ministries, advocacy groups and scientists. The code involves three actions: firstly, appointing a senior management team member who is responsible, taking initiatives and implementing them in your own organization, and finally collecting and supplying data.

The future?

The signing of Code-V is the starting point. The real work starts now. But it is unique that so many parties active throughout the financing chain have committed to actively contributing to the stimulation of female entrepreneurship. That starts with awareness and the willingness to provide data. After all, ultimately measuring is knowing. Expectations are high, because in this way we as BV Nederland can capitalize on some of this untapped potential. And that's good news for everyone!