News / coronavirus
‘There’s never been a more important time to put equality at the forefront of business’
Current Government support packages risk exacerbating existing inequalities and setting back the diversity agenda, warn business campaigners and founders.
The Future Fund due to launch in May will provide loans of up to £5m for innovative startups and scaleups, subject to an eligibility criterion that details firms must have previously raised at least £250,000 in equity investment in the last five years.
With less than one per cent of venture capital funding going to female founders in the UK, according to a recent report, lobbyists are warning that the packages are being set up to exclude women. The situation is the same for ethnic minority founders. A petition has been launched calling for chancellor Rishi Sunak to work with female founders to address this impending divide.
This is only one example of how the response to the coronavirus crisis is likely to unfairly penalise the groups already underrepresented in certain business sectors.
In addition, the pandemic is disproportionately affecting women, black and ethnic minority people and those in the lower socio-economic brackets.
For example, 77 per cent of the workforce in healthcare are women, according to statistics from NHS Employers, and therefore more at risk of contracting COVID-10, yet women are more likely to be furloughed because of their caring responsibilities or because of the sectors in which they are predominantly present, such as retail or office work.
“Conversations about the future and the ‘new’ world oftentimes exclude women and continue to focus on industries that are male-dominated,” says Dr Zara Nanu, the founder of Gapsquare.
Speaking in a Business West podcast, Nanu highlighted the importance of keeping diversity top of the agenda during these challenging times.
“What we have seen with a lot of businesses is they are saying ‘we are putting the equality agenda way into the backseat because right now we need to focus on keeping the business running and planning for this dip and the recovery’. Actually, there has never been a more important time to put equality in the forefront.
“Businesses that are more diverse are more likely to outperform their competitors, gain more market share and see more increases in share prices.
“Putting equality and diversity in the driving seat right now can lead to a more equitable recovery, a recovery that works for everyone and a recovery that happens faster.”
Main photo of Gapsquare’s Dr Zara Nanu and Sian Webb. Courtesy of Gapsquare
Read more: How does Bristol rate as a place for women in business?
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