Why the Growth of Women Entrepreneurs in Australia Is Slowing and What We Can Learn from New York

Why the Growth of Women Entrepreneurs in Australia Is Slowing and What We Can Learn from New York

New LinkedIn data shows that the number of women entrepreneurs in Australia has increased over the past decade but progress is slowing.

In 2025, 34.2% of founders in Australia were women. That represents only a 3% increase since 2015, and it has actually declined slightly from the peak of 34.7% in 2022.

At first glance, the numbers suggest steady progress. But a deeper look reveals something more concerning: the ecosystem supporting women entrepreneurs has not evolved at the same pace as the ambition of the women building businesses.

In 2017, I wrote an article reviewing the steps New York City took to achieve #1 city globally supporting women entrepreneurs, and the lessons for Australian cities.

Since then, I have continued to spend significant time working between Sydney and New York, supporting business to expand their footprint into the US market, with New York as their market entry point. I have observed how different ecosystems shape the success of women founders. The contrast between the two cities continues to provide valuable insight into what works and what still needs to change.

The Power of Policy: New York’s Strategic Approach

New York has taken a policy-driven approach to supporting women and minority-owned businesses. For example, New York State’s Article 15-A legislation established a Division of Minority and Women’s Business Development and introduced government procurement targets for women-owned businesses.

This is more than symbolic support — it creates real commercial opportunity. Government procurement is one of the largest buyers of goods and services in any economy. When policy actively encourages participation from women-owned businesses, it drives demand, revenue and growth.

Australia has made progress in supporting small businesses and startups, but we have not yet embedded the same level of structural policy support specifically focused on women entrepreneurs.

Access to Capital: The New York Advantage

Another critical difference is access to capital. New York is one of the world’s largest venture capital hubs. Female founders have access to:

  • – large venture capital networks
  • – dedicated funds for women founders
  • – angel investor communities
  • – corporate venture investment.

While women globally still receive a small share of venture capital funding, the sheer scale of capital available in New York increases the probability of access.

Sydney’s venture ecosystem has grown significantly over the past decade, but it remains smaller and more risk-averse, particularly for early-stage female founders. Without access to growth capital, many promising businesses struggle to scale.

The Density of Networks

One of New York’s greatest strengths is network density. In a single week, a founder can attend multiple investor events, meet mentors, pitch to accelerators, and connect with experienced entrepreneurs who have already built and exited companies.

These networks create momentum.

Sydney has strong communities and generous mentors, but the ecosystem is simply smaller. Fewer investors, fewer founders who have scaled globally, and fewer accelerators mean opportunities are less concentrated.

The Market Reality

Australia also faces a structural challenge: market size. New York entrepreneurs operate within a domestic market of 330 million people, supported by global capital markets. Australian founders begin in a domestic market of around 26 million people, meaning many must scale internationally much earlier. This changes the risk profile for both founders and investors.

Has Sydney Moved the Needle?

Sydney has made some progress. Female founder networking communities are growing. Universities and innovation centres are increasingly supporting entrepreneurship. But the ecosystem still lacks three elements that New York has embedded deeply into its system:

  1. Policy-driven procurement opportunities
  2. Large-scale venture capital access
  3. Dense founder-investor networks

Until these three forces align, progress will likely remain incremental rather than transformational.

What Will Encourage More Women to Start Businesses?

Encouraging more women to launch ventures requires a system-wide approach, not just individual support programs. Some of the most effective actions include:

1. Government procurement targets for women-owned businesses
Creating demand for women-led companies through public sector purchasing.

2. Dedicated investment funds for female founders
Expanding access to capital through VC funds and angel networks focused on women entrepreneurs.

3. Structured mentorship and scale networks
Connecting emerging founders with women who have successfully built and scaled businesses globally.

4. Visibility of successful founders
Role models matter. When women see others succeed, it changes what feels possible.

5. Global market exposure early
Helping Australian founders access international markets earlier in their journey.

The Bigger Opportunity

Australia has extraordinary entrepreneurial talent. The challenge is not capability, it is ecosystem structure. New York demonstrates what happens when policy, capital and networks align around a shared goal.

If we want to accelerate the number of women building and scaling businesses in Australia, we need to move beyond encouragement and toward systemic support. Because when women succeed as founders, the impact extends far beyond individual companies; it strengthens our economy, drives innovation and creates opportunity for the next generation of entrepreneurs.

About the Author: 

Trena Blair is a globally recognised, award winning business leader, strategic advisor and company director known for helping ambitious companies scale internationally with discipline, clarity and confidence. As Founder and CEO of FD Global Connections and architect of FD Global AcademyR, she has spent more than two decades guiding founders, boards and executive teams through the complexity of global expansion particularly between Australia and the United States. Her work blends commercial strategy with governance rigour, ensuring growth is not only bold, but sustainable.

Contact: trena@fdglobal.com.au
🌐 Website: www.fdglobal.com.au
🌐 Website: www.fdglobal.academy
🔗 LinkedIn: linkedin.com/in/trenablair