Sydney's weaknesses were the gender wage gap which sits at 16 per cent, but in some industries such as professional, scientific and technical services is at 27.5 per cent, and high property prices which are seen as an impediment to entrepreneurs establishing themselves in the city.

The WE cities report notes Sydney has a high standard of living and a growing start-up culture, although Melbourne is also regarded as a significant hub of technological innovation in Australia.

Sydney's strength is its 'enabling environment' culture, ranking second in the world for this category behind only New York City.

Dell's Australia and New Zealand boss Angela Fox says there are still obstacles standing in the way of women starting a business.

The needle is not moving as fast as we need to around the world.

According to the WE Cities Index when impediments to female entrepreneurship are removed, there is a dramatic uplift in a city's economic prospects.

But Melbourne is weakest (37th) in the talent pillar. Its biggest weakness is the comparatively small percentage of workers with a tertiary education.

Melbourne scored strongest (14th) in the enabling environment, propelled by a ranking of eighth in culture with strengths in data collection, advocacy, equal pay, non-discrimination in hiring, and parental leave.

"The movement of women entrepreneurs in Sydney is stronger than than in Melbourne there is no question about that," Wallace says. "Particularly for fundraising for women, whether it is Sydney or Melbourne is still particularly difficult. Access to technology and technologists for women is improving but is still difficult to access."

Angela Fox, co-leader of Dell EMC in Australia and New Zealand, says more can be done to support female entrepreneurs in Australia.

"The enablers are definitely there, there are great role models happening but there is still opportunity around access to capital," she says. "You still have situations where women are not getting the access to capital or they don't have information to know how to pitch for capital. It's a known fact that male entrepreneurs are still far more successful in getting their business beyond that million dollar turnover."

Fox says the WE Cities ranking continues to draw attention to "seemingly obvious things".

"The needle is not moving as fast as we need to around the world," she says. "Even you look at New York, it rates highest but it is only rated 62.9 out of 100. You think we are making progress but frankly there are still obstacles standing in the way of women starting a business. There is more chance in Australia of women getting into business but then are they growing it?"