Women-owned businesses contribute £105 billion to UK economy, but female entrepreneurialism in manufacturing and other high growth sectors has fallen.

New research by the Federation of Small Businesses has found an estimated 40 per cent increase in UK economic contribution and a 26 per cent increase in employment generated by women-owned businesses.

But the report 'Supporting Women's Enterprise in the UK: The Economic Case' says diversity in manufacturing and higher growth sectors is still a challenge, with a reduction in the proportion of women-owned firms in these sectors.

Women-owned businesses are now calculated to contribute £105bn to the UK economy, an increase of 40 per cent since comprehensive data was last collected and analysed.

Over the period studied (2012 - 2015) there has been a reduction in the contribution of the manufacturing sector to women owned businesses' GVA (from 14.9 per cent to 11 per cent) and proportion of employment (from 8.7 per cent to 7.1 per cent).

This is concerning because manufacturing is a relatively high profit sector. A larger proportion of women owned businesses are in the care sector which has low profit.

Commenting on the launch of the report with Facebook, Nicola Mendelsohn, Facebook's vice-president for Europe, the Middle East and Africa, said: "The results from this FSB report shine an encouraging light on the increased contribution of women owned or led businesses to the UK economy and to employment.

"However it's unacceptable that our culture is still hard-wired against women in leadership roles. Until that changes we must all find ways to get behind the women who want to step forward and lead, to give them the skills and courage to succeed.

"We need more women starting and growing businesses and more women sitting at the table, whether it's pitching new business ideas or developing new products. Reports like 'Supporting Women's Enterprise in the UK' are so important to celebrate what we have achieved, but also show how far we have to go to reach true equality among the small business community."

Lina Bourdon, FSB's Women in Enterprise lead, said: "Developing and supporting women's enterprise is proven to be critically important for economic prosperity. The Government must now address this untapped potential with a range of suitable measures, such as career advice, role models, and access to business support and finance."