The British Association of Women Entrepreneurs (BAWE) has questioned the potential effectiveness of the government's £12.5 million fund for women entrepreneurs.

President of the BAWE Tanya Hine is sceptical about the impact that the fund will have, saying the type of business started under the scheme will be smaller and home-based and simply serves as a political move to reduce the number of women on the unemployment register.

'But those are not really fully businesses – those are going to be home-based businesses that never employ anybody. That is a lifestyle choice, but it's not employment,' she comments.

According to Hine, women entrepreneurs will actually find it more difficult to start businesses this year because of the economic climate and banks' hesitance in lending money.

'There is a lot of talk about helping women [but] on the whole, everybody has to do it themselves,' she adds.

Only 14 per cent of businesses are wholly led by women or led by a management team consisting mainly of women. In contrast, 54 per cent of businesses are entirely male-led according to the Annual Small Business Survey 2006-07.