Women starting their own companies could play a bigger role in boosting the economy, a government report has found, by creating jobs and reducing gender inequality.

The number of women-led businesses has increased in recent years, but the report by Lorely Burt, the government’s ‘women in enterprise champion’, found that additional steps could enhance their impact on the economy.

Entrepreneurs are being encouraged under the Tory government and a spike in self-employed people has helped reduce unemployment in recent years.

The government’s task now is to improve the chances of new businesses succeeding and to support them as they grow and pay tax.

Measures undertaking by ministers so far include a £1 million series of mentoring events, specific guidance for women on the Business is Great website and guidance helping women branch out into overseas markets.

The response to such measures is usually positive, although some accuse them of patronising women.

Responding to the report, business secretary Vince Cable said: “Reaching our target of 25% women on FTSE 100 boards by 2015 is now in sight.

“The government is committed to ensuring that talented women have the tools at hand whether it’s running a business on their own or heading up a corporate board.

"The evidence is clear - gender diversity delivers better business decisions which are vital to securing the future prosperity of the UK.”

Lorely Burt said: “Women entrepreneurs have huge potential to build on Britain’s hard-won recovery, creating a stronger economy and a fairer society.

“Sadly too much female entrepreneurial talent remains untapped although the coalition government has made progress.”

For more details of the report click on the link below.