One element which constricts our economy, whoever is in power, is the continued refusal to acknowledge the economic potential of women.

Only 17 per cent of FTSE 100 directors are women, and women account for only 33 per cent of all senior managerial positions. In recent years things have improved slightly – in 2003 the number of female FTSE 100 directors was nine per cent – but this progress has been painfully slow. The ‘executive pipeline’ continues to be a challenge: a wide disparity remains between the numbers of women holding executive and non-executive directorships.

It is not just at director level that women are in short supply. Recent estimates show that just 18 per cent of our small- and medium-sized enterprises are majority women-led. These SMEs make a staggering £75bn contribution in terms of gross value added benefit to the United Kingdom economy.

So why are women undervalued in business? The answer is culture.

Shockingly, the gender pay gap still exists, with women paid up to 20 per cent less than their male counterparts. How can female employees feel valued, or have a sense of self-worth, if male colleagues receive more pay for the same work? Corporate culture also plays its part. Long hours and the increasing requirements for employees to be always available, combined with the absence of family-friendly working practices, hampers the aspirations of women.

Capitalising on women’s potential makes economic sense. Having more women on corporate boards has been shown to increase both the share price and the return on equity. It is unsurprising that the 2013 list of the world’s most valuable brands showed companies with a greater than average proportion of female board members outperform those with an all-male board.

Some leading businesses are taking action to address this imbalance. Lloyds Banking Group recently announced its aim for 40 per cent of its top 5,000 roles to be women. Honda has just appointed its first female board member, an especially important step for a male-dominated industry.

But if we rely solely on business we risk waiting another 200 years before gender parity is achieved. Evidence shows that the UK’s biggest companies are likely to appoint a female director only if the post has been vacated by another woman.

Government must act. It has set corporate boards a target of achieving 25 per cent female representation by 2015. This is welcome, but more needs to be done. There has to be a radical change in culture, taking account of unconscious bias that continues to see men as more fit to take on these roles. More practical measures are needed – childcare costs have risen by 30 per cent in the last four years, and as many as 50,000 women face pregnancy discrimination.

Knocking down barriers and helping maximise women’s contribution to the economy, will bring substantial economic benefits to the UK. There is no single approach which will create the profound systemic change needed. But, if we really want to address the paucity of women in business, we  cannot take our foot off the accelerator.

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