In this policy brief, Prof Athene Donald discusses how unlocking the full economic potential of women requires tackling systemic barriers—from biased workplace cultures and underinvestment to gender gaps in education, leadership, and funding—through inclusive policies, early education reform, and diversity-focused business incentives.
As more women have joined the workforce, overall productivity has increased due to a rise in total working hours. However, the full potential of women’s contributions remains underutilised. Structural inequalities, biased workplace cultures, and underinvestment in women’s health and entrepreneurship hinder their innovation and impact. A lack of diversity in leadership, gender gaps in STEM (science, technology, engineering & mathematics), and biased AI systems further limit women’s economic influence. For instance, women founders receive just 2% of UK venture capital funding, and women face significant health-related work barriers like endometriosis, often overlooked in medical research and support.
Studies show that diverse teams are more innovative and profitable, yet many businesses regress in diversity progress. Addressing this starts early, with education reforms to combat gender stereotypes, and continues through better representation in leadership and more inclusive skills training. Companies should be incentivised to embrace diversity through awards and partnerships with schools. Regulatory oversight is also needed to ensure AI development avoids reinforcing gender bias. By tackling these systemic issues, the UK could unlock significant productivity and growth gains. Implementing these low-cost, strategic actions would make better use of women’s economic potential and support a more inclusive, prosperous future.
