New businesses are worse for female representation at board level than the FTSE 100 firms, according to new research.
New digital and e-commerce businesses are worse for female representation at board level than the FTSE 100 firms, according to new research.
Research commissioned by approvedindex.co.uk, a business-to-business services market place, revealed the number of women on the boards of UK start-up firms from the Tech Track 100 is very low and has been on a continuous decrease since 2010.
The report highlights that whilst the FTSE 100 and FTSE 250 companies have witnessed growth in female directors (to 22.8% and 15.6% respectively) start-ups across the UK have a meagre national average of 8.37%. Since 2010 the gap between the FTSE 100 companies and start-ups has quadrupled.
The report says that although start-ups are making some attempt to change the profile of the stereotypical director through appointing younger faces [the average board member age is 48], they continue to exclude women. It adds that start-up culture "appears to be repeating the diversity mistakes of their predecessors".
The region with the best representation of women on boards is the North West with 16.85% of board members being female, while the figure for London, which is where 41% of start-ups begin, is just 6.72%. Men are also more likely to serve on boards for longer in start-ups. The average duration of male tenure on the board is 46 months, compared to 38 months for women.
Trilby Rajna, of Approved Index said: “Our findings expose some really shocking trends of male superiority in the senior appointments of new businesses. It seems that despite start-up firms being heralded as the pioneers for innovation and technological advances, the inherent culture is far from progressive. Emerging entrepreneurs do not have the excuse of a history of bad cultural practices to latch on to. They should know better.”