As part of the UK government's support package for women's enterprise, Equalities Minister Lynne Featherstone announced that £2million funding will soon be allocated to support women entrepreneurs seeking to set up or expand their businesses in rural areas.

In the UK women are about half as likely as men to be engaged in entrepreneurial activity and women who say they intend to start a business are much less likely than men to translate their interest into action.

As a result the economy is not benefiting from the skills and talents of all and much of this potential is lost.

If women started businesses at the same rate as men, it is estimated that there would be 150,000 extra start-ups each year in the UK.

Last year, the government announced funding for the recruitment and training of 15,000 volunteer mentors from the small business community. This funding ensures that training and support materials for mentor and mentee reflect the specific needs of women, covering issues such as raising confidence, access to finance, work life balance and working from home.

As of the second week of January 2012, over 2,000 mentors have registered, at least 30% of whom are women. The government has also launched a mentoring portal: www.mentorsme.co.uk (launched July 2011 and developed in conjunction with the British Bankers Association) to provide a single point of access for those seeking mentoring and those seeking to be mentors across the UK.

How will the rural fund be allocated?

Local Enterprise Councils (LEPs) and Local Authorities (LAs) have been invited to bid for the rural growth network pilots, with bids due this week.The successful bidders will be announced in March, with projects due to start in April 2012.

Equalities Minister Lynne Featherstone said:

"Women play a vital role in generating sustainable economic growth in rural areas but too often they face barriers which stop them from getting on the entrepreneurial ladder. The £2million fund will provide a much-needed boost for budding businesswomen and inspire exactly the kind of success story I have seen today."

For more information go to the Rural Economy and Business page of the Defra website.

Other support for enterprise

The above initiatives build on the government's existing support to business which includes;

• reducing tax and regulation burdens; such as the reduction in corporation tax from 28% to 26% announced at budget, reaching 23% in 2014, and a series of radical deregulatory measures, which this year are estimated to have saved business over £3 billion.
• supporting cash flow and access to finance; such as increasing the Enterprise Investment Scheme rate to 30% from April 2011 and doubling the investor limits from April 2012 and the £20 billion National Loan Guarantee Scheme and £1 billion Business Finance Partnership announced in the Autumn Statement.
• introducing a new £75m programme of training and other targeted support focused on SMEs to help access Advanced Level and Higher Apprenticeships.
• supporting every school to develop and run its own business through the Enterprise Champions Programme to encourage young people to consider entrepreneurship.
• establishing 24 Enterprise Zones across England with benefits to businesses including simplified planning and a business rate discount worth up to £275,000 over a five year period.
• helping unemployed people through the New Enterprise Allowance programme, which includes access to mentors and financial support.
• launched an improved Business Link website: www.businesslink.gov.uk which offers a new Growth and Improvement Service, offering a range of business tools. Also available is My New Business, a comprehensive tailored start-up service provides online tools and training. The website is supported by a new helpline (and a text phone service) to support people who are unable to access the internet or have difficulty in doing so.