The cost of living crisis is birthing the next generation of female entrepreneurs

There aren’t too many upsides to a full-blown cost of living crisis, but new research shows it is driving up the number of businesses run by women.

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Female entrepreneurs are rapidly closing the gender gap when it comes to running a business. According to new data from GoDaddy, the number of women-led businesses has surged from 36% to 47% within the last 12 months. (Now, if we could only get some venture capital funding…)

The survey data shows the beginnings of an increasingly positive growth trend.

However, as Startups highlighted in our independent International Women’s Day study on the gender funding gap, female entrepreneurs often face additional challenges when starting a business. These include facing unconscious bias from potential investors, and higher workloads than male counterparts.

The GoDaddy survey also revealed that among female entrepreneurs:

  • 82% are responsible for the majority of domestic household duties
  • 44% say the costs associated with childcare are a barrier 
  • 46% of the women have children under 18.

Catherine Sweet, founder of Bobcat Gallery, said: 

“Caring responsibilities towards members of my family held me back from starting my own business for a long time. I could never find the time, resources or mental space.”

While aspiring female business owners weigh the benefits and drawbacks, they are still coming to the conclusion that a business is a worthwhile venture to be pursuing right now. 

All in all, 78% of female entrepreneurs said they believe owning a business provides more flexibility and opportunities than working for someone else.

The cost of living crisis is causing women to think outside the box and discover new avenues for income that align with their current lifestyles.

In general, set-up costs (52%) and time commitments (48%) were highlighted as the biggest obstacles to women starting a business. 

However, experts believe that the normalisation of working from home and other flexible working options mean women are finding ways to overcome or mitigate these obstacles. 

Tamara Oppen, GoDaddy Vice President, states: 

“The rise in flexible working patterns and working from home has made it easier to fit in running a micro business alongside other commitments. 

“We are saluting women who are achieving great success against the odds. They really are unstoppable.”

Ready to start your business?

If you are a female entrepreneur looking to start a new business venture, it would be easy to feel disheartened by our research. But don’t worry – the team at Startups is here to help.

We are the UK’s number one independent small business online resource. You can read any of our thousands of guides for information on everything from the best business grants for women, how to write a business plan, and even inspirational entrepreneur success stories.

Written by:
Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.

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