How important are qualifications to business success?

Even though kids are sailing through their exams, with 97.5% passing their 'A' levels this year, concerns have been voiced that this won’t resolve the skills gap problem. Most businesses feel that students are unprepared for work - that the gap between education and work is too large. As the students are fighting over university places, the Forum of Private Business dropped the bomb shell that most of its members would value school-leavers over graduates, with 77% of small business owners saying they don’t even need employees with university skills. Is there a misconception somewhere along the line – that you'll have more chance of getting a job if you have a degree? But we’ve already seen that unemployment among graduates is at an all time high. Student placements, internships and graduate schemes are one answer as this is beneficial to businesses and students, bridging the skills gap. Time and time again, experience and on-the-job training outweighs qualifications in the world of enterprise.

More women than men in high-status jobs

There are now officially more female doctors, lawyers and architects than male ones in the UK, according to research by the University of Cambridge. So why are we not shouting about this fact from the roof tops? It’s being called the ‘quiet revolution in the workplace’, but it seems to be a silent one. Is this not a huge achievement, a milestone, something really positive? Yes, and it ties in with women excelling academically, a higher proportion of us securing places at top universities and achieving higher grades than men.

However, perhaps the one thing stopping us from celebrating is the fact that women are still earning much less on average than men – about 22.6% less. Um, where’s the equality in that? And in some areas, the pay gap is actually widening.

If the ‘quiet revolution’ fails to grab anyone’s attention, nobody will raise the pay gap as a problem. The limited opportunities for women to progress to senior roles such as company director are also affecting the pay gap. But the more these issues are brought into the spotlight, (in the same way Harriet Harmen brought women in politics to the forefront), the more recognition women will receive, both in professional status and in their pay cheques.

So what about a very loud and noisy revolution in the workplace?

Harriet Harman gets women in politics back on the agenda!

Harriet Harman, Minister for Equality, may be a well-known feminist and has confessed to putting men’s noses out of joint, but she gets issues that matter back in the spotlight. And the absence of women in senior political positions does matter. What she said makes perfect sense:

“I think it’s a thoroughly bad thing to have a men-only leadership. In a country where women regard themselves as equal, they are not prepared to see men just running the show themselves. I think a balanced team of men and women makes better decisions.”

But how many people, especially men, would have just ignored her views on this? But with the controversial, “Men cannot be left to run things on their own” comment, she’s managed to make this front page news.

Indeed, cries of sexism from men can be heard from every corner of the room, retorting grumpily, “what if we said that about women? We’d never get away with it”.

But the point is, she whipped the media into a frenzy and now the issue of women in politics is back on the agenda! Clever, eh?

Access to finance for growth

So it’s official – according to the recent Women’s Enterprise Task Force (WETF) report, woman-led businesses are not charged more by banks for finance and may, in some circumstances, even pay less. We’re seen as ‘lower risk’; better at making repayments and business planning; and we’re more likely to get our finance from banks full stop. Encouraging news for start-ups especially as only 28% of the self-employed are women.

However, it’s also been recognised that we’re less likely to access venture capital and equity funding, useful for when you want to grow your business. In our experience, which doesn’t reflect the findings of the Task Force report, it isn't so much that women ‘lack the confidence’ to apply for funding. The problem is that typically the nature of their businesses and their ambitions to grow, means that equity finance is not appropriate for many women.

And according to the Quarterly Survey of Small Business in Britain report, 48% of women-led small businesses are content to remain the same size – and that growth isn’t on the agenda. So isn’t the issue about supporting enterprising women's growth ambitions and enabling access to the right finance?

At Enterprising Women, we run a woman-specific access to finance programme which can help you to access the right finance which is appropriate for your business, whether debt or equity.

Aspirations come from Mum

Following on from our last blog about aspirations and social mobility, I heard a snippet of information on the radio … “children’s educational aspiration is directly linked to their mother’s educational aspiration level.”

This ‘sudden statement’ from Radio 4 meant, in my mind, that science and the Beeb, and therefore by default, the government, had finally caught up with what any of us working in any kind of ‘women’s development’ area have known for ages!

I began some research into the subject and according to academic reports, if a Mum goes back to ‘learning’ of any kind it has a really positive impact on her children’s attitude to education. In other words, “If Mum can do it, it must be OK, so I want to do it!”

I then started thinking about enterprise, as we work in the promotion, support and creation of women’s enterprise activity. If Mum returning to education can have such a positive, and now acknowledged impact on their children’s learning aspirations, then the same can surely be said of enterprise. If Mum decides to start a business, no matter what that business is, then her children are more likely to view enterprise in a positive light and see it as something that they can do – and might actually WANT to do.

So, to all the policy makers out there: to all the funders and decision makers who are steering the ship of economic development through the wreckage of previous attempts to ‘raise aspirations’, ‘create an entrepreneurial society’ and ‘effect change at grass-roots level.’ It all seems blindingly obvious: Support a woman to start a business and you will change the entrepreneurial aspirations of her children. I’d take it a step further … support a woman in any way to develop herself socially, economically, educationally, financially, and you will positively impact on, and change the attitude and aspirations of her children.

Social mobility - it’s all about your aspirations

'Birth, not worth, has become a key determinant of people’s chances,’ are the words of former Labour MP Alan Milburn, as the heated debate about social mobility, or lack of it, rages on.

But instead of pulling apart our schools and businesses, why not look instead to our own aspirations and children’s aspirations? Ask yourself what you want out of life and how you are going to realise your ambitions to make your business work?

In Britain today, maybe the real problem isn't social mobility. Maybe that’s the symptom or a catch 22. The problem is the lack of aspiration, the indifference, the apathy. Attitudes and work ethics are changing and the ‘get-up-and-go’ is lacking in so many people. There are many reasons which could be attributed to this: the recession, unemployment or it could be a general outlook on life and the belief that we can’t achieve our goals because of who we are and where we’re from.

Aspirations are what drive people and especially entrepreneurs and the concept of social mobility, or the lack of it, is a direct result of our mindset.

Role models inspire success

Do you have somebody who inspires and motivates you, someone who focuses you on achieving your ambitions and goals? Be it in sport, music or business, role models play a large part in our lives.

This week, Dame Judi Dench was named the nation's favourite female role model in a poll conducted for A Woman of Substance awards. She was followed by Joanna Lumley and Julie Walters, with JK Rowling, author of the legendary Harry Potter, and round-the-world yachtswoman Ellen McArthur in joint fourth place. The 1,000 British women polled, aged between 18 and 65, also named the Queen, Dawn French, Lady Thatcher and Paula Radcliffe as top ‘women of substance’.

Many of us are also inspired by the success and determination of people who may not be famous, but have achieved a great deal. Such inspirational women feature in Management Today magazine's annual list of top 35 young businesswomen. 19-year-old Ruth Amos is the youngest entrant with her successful StairSteady business, a huge achievement which we’re sure will inspire many other teenagers to start up their own businesses.

And we also think that Jamie Neal is an inspiration after his resilience, resourcefulness and determination helped him survive a fortnight in the Australian bush. Surviving tough times is a test of character and having the drive and courage to go forward can bring positive results.

Tell us about what inspired you to set up your business and who or what drives your ambitions?