The £3.5 billion wake-up call: why women are leaving tech (and what we can learn from them)

Have you seen the 2025 Lovelace Report? The report’s focus is on The Value Of Keeping Women In Tech and it is truly worth reading. The stat that shocked me the most: the UK tech industry loses between £2-3.5 billion every year due to women leaving the sector. I read that at least 5 times before I moved on. 

Of course my brain looks at this operationally – this isn’t just a tech problem; it’s a system problem. And the report makes it clear that women aren’t walking away because they can’t ‘balance it all.’ They’re leaving because the ladder was never designed for them to climb in the first place. And while the focus of this report is on tech, the same patterns echo across many industries, especially for women running their own businesses or working as freelancers.

We work with so many brilliant women who’ve opted out of those rigid structures where they stagnate, not because they lack ambition, but actually the exact opposite – because they’ve chosen to build their own version of success. And I’ve wondered for a while if maybe the future of business (particularly inside of corporations) isn’t about fixing broken systems, but learning from the freedom and flow that women-led businesses already embody.

It’s not about balance, it’s about broken systems.

The Lovelace Report found that only 3% of women leave tech because of caregiving…I love the mythbusting.

The real reasons this amazing, talented group of people are disappearing from the tech industry?

• Lack of progression (25%) – these women are ambitious, they want to do more!
• Lack of recognition (17%) – they want to be seen.
• Inadequate pay (15%) – the gender pay gap is real – and ever present.
• Toxic or limiting cultures (8%) – this isn’t exclusive to the tech industry.

In other words, women aren’t burning out from overwork. They’re burning out from underappreciation. They aren’t bailing on their careers, but are searching for roles and industries where these stats aren’t such a punch to the gut.

They’re tired of doing the emotional labour, the invisible work, and the extra training only to find the next promotion is still out of reach. They’re ready to lead, but leadership systems aren’t ready for them.

Sound familiar?

Unfortunately this isn’t just a big corporate issue. In the world of SMEs, we see the same story play out, just a little differently. So many women leave their roles not because they failed to thrive, but because the structure failed them.  

The rise of the opt-out entrepreneur.

Here’s where things get interesting. The Lovelace Report talks about women in mid- and senior-level positions leaving because they see no clear path forward. But in the start-up entrepreneurial world, those same women are building their own ladders.

They’re starting agencies, consultancies, and creative businesses where recognition isn’t gatekept, it’s earned and celebrated and SHARED.  

They’re creating inclusive, flexible, values-led workplaces. And they’re redefining leadership not as power over people, but as power with people.

At Flow, we see this every day. Our clients aren’t waiting for permission,  they’re creating their own opportunities. They’re proving that sustainable success isn’t about ‘leaning in’ to broken systems, but about designing businesses that work with your life and your ambitions, not against them.

Building flow, not burnout.

The Lovelace report highlights how companies lose billions because they can’t (won’t) retain women, especially those at the peak of their experience. The cost isn’t just financial; it’s creative. Every woman who leaves takes her insight, innovation, and perspective with her.

Here’s the (almost) universal truth: small businesses already understand that people are their biggest asset.

When you run your own business, you have to design systems, and networks that support you. You learn to listen to your energy, to create balance, to outsource, to collaborate. You learn that success isn’t about doing everything yourself; it’s about building support around you.

The Lovelace Report shines a light on what’s broken. But it also reminds us what’s possible when women are supported, seen, and trusted to lead.

And if you’re a business owner or freelancer who’s building something with heart, you’re already part of that change.

What can we learn?

The Lovelace Report calls for companies to:

1. Actively monitor for career stagnation and create advancement opportunities.
2. Ensure fair distribution of high-impact work.
3. Build transparent, equitable career ladders.

In short: to do the things women-led businesses are already doing.

Female business owners know what it means to nurture growth, not just measure it. We’re agile, collaborative, and emotionally intelligent. We build teams that feel good to work in.

If the big tech organisations truly want to close the £3.5 billion gap, they should stop looking for fixes in the same frameworks and start learning from the women who left to do it better.