Article by Professor Addis G. Birhanu
It is even tougher when you are thrown into that global pandemic, which forces you into your home, with the ability to meet people only remotely, whilst also having to take care of your family at the same time.
COVID was a challenge even for serial entrepreneurs like Richard Branson or Elon Musk. But, would their entrepreneurial venture be more troubled due to the pandemic if they were women entrepreneurs instead?
That is what my colleagues based in the USA and Canada and I researched. We were keen to understand the impact of the COVID pandemic on businesses, and whether there was a difference in its impact on men vs women-owned businesses.
To do so, we analyzed 20,000 businesses across 38 countries, using data from the World Bank’s ongoing COVID-19 tracking survey and World Bank’s Enterprise Survey (WBES). These datasets among other things provide information about the monthly performance of the businesses in their sample, the size of the businesses, and women’s ownership stake.
Using these data, we found that the sales growth of women-owned businesses was reduced by 3% due to the pandemic compared to businesses not owned by women. Besides, we also found that women-owned businesses were closed for a longer period of time than other businesses. The underlying reasons for this are likely to be twofold.
The first has to do with the reinforcement of the stereotypical role of women in the household during the lockdown. It left them with limited to no time and energy to lead their business successfully and overcome the challenges posed by the pandemic. This skewed household responsibilities toward women during the lockdown was also shown in the survey conducted by the Office of the National Statistics (ONS), UK. The ONS survey revealed that working mothers carried out two-thirds more childcare duties per day than men.
The second underlying reason has to do with women’s sensitivity toward the health risks of the pandemic and the higher protective measure they took to keep their safety and the safety of their significant others. Women were particularly more careful at the beginning of the pandemic when little scientific information was available about the nature of the pandemic. These measures might have restrained women entrepreneurs from opening their businesses and/or undertaking certain operations that might put them and their employees at risk of infection. So their sensitivity to health risks might lead them to protect lives instead of livelihoods and hence lower the performance of their businesses.
Entrepreneurs were not left to fend for themselves during the pandemic. Governments introduced various interventions to address the pandemic. We, therefore, examined the effectiveness of government health and economic policy intervention in addressing the gendered effect of the pandemic using data from the COVID-19 Government Response Tracker. We found that sound public health measures, such as the provision of credible public health information corrected perceptual bias of the health risk of the pandemic and the reinstitution of public services with appropriate safety measures took off the brunt of childcare and other houshold tasks from women. These gave women entrepreners the opportunity to be back to the drivers’ seat of their business and reduce the adverse effects of the pandemic. However, economic support policies did not have a similar effect. This could be because women entrepreneurs were able do as much as their men counterparts with the economic support of governments and the return on women enterprises was in par with that of men but not more. More importantly, this policy aimed at solving the consequence of the pandemic on businesses but not on the root cause that led to disparity in the performance women with respect to men entrepreneurs during the pandemic.
Overall, our study highlights the higher barriers women entrepreneurs face especially in times of adversity and global crises like the COVID pandemic by triggering and perpetuating traditional gender roles. The effectiveness of health policies than economic support policies to tackle the gendered effect of the pandemic also alludes to the importance of policy interventions to address gender disparities in entrepreneurship when they target the root cause of the disparity than its consequences.
Addis G. Birhanu is an Associate Professor of Strategy at emlyon Business School, France. Her research interests are at the nexus of non-market strategy and corporate governance, and their implications on firm performance.
July
10jul17:3023:00Rising Star Awards Ceremony 2025
10/07/2025 17:30 - 23:00(GMT+00:00)
The Londoner Hotel
38 Leicester Square, London, WC2H 7DX
Now in their eleventh year, the Rising Star Awards continue
Now in their eleventh year, the Rising Star Awards continue to be the first to spotlight the achievements of women below the Senior Management or Director level – showcasing the female talent pipeline and the next generation of future leaders.
The awards also recognise the efforts of senior leaders who champion gender equality and put the spotlight on a “company of the year” that actively supports its female talent pipeline above and beyond industry norms.
The team at WeAreTheCity are excited to announce that we will be holding our Rising Star awards celebration for all winners, sponsors and judges on the evening of 10 July at The Londoner, Leicester Square.
Over the course of the evening we will be networking and celebrating the achievements of all of our 2025 winners, whilst enjoying the very best in entertainment from our live singers and strictly stars. An evening not to be missed!
For more information visit: wearethecity-risingstars.com
26julAll DayTessy's Brunches Presents: Engage HER
26/07/2025 All Day(GMT+00:00)
Stanley Stephenson Lounge
Crystal Palace Football Club, Holmesdale Road, London, SE25 6PU
Engage Her – July 26, 2025 Event Summary: Engage Her is a dynamic event focused on fostering meaningful connections and building a supportive
Event Summary: Engage Her is a dynamic event focused on fostering meaningful connections and building a supportive community of women. Through interactive workshops, networking opportunities, and engaging discussions, attendees will have the chance to share experiences, learn from one another, and grow together. This event aims to create a welcoming environment where women can support each other in their personal and professional journeys.
Highlights:
• Engaging workshops and interactive sessions encouraging active participation.
• Networking opportunities to expand personal and professional connections.
• Panel discussions with industry leaders sharing insights and experiences.
• Community-building activities to foster lasting relationships.
Mark your calendars for Engage Her on July 26, 2025, a vibrant event designed to connect and inspire women. Participate in interactive workshops, network with like-minded individuals, and join discussions with industry leaders. Build meaningful relationships and grow within a supportive community. Engage Her is your opportunity to connect, learn, and thrive together. Don’t miss out—register now!
Indulge in a sumptuous spread of delicious treats crafted to tantalize your taste buds.
Tickets are available for £50 and the event is open to all women. Let’s come together and support each other as we navigate the challenges of life. We can’t wait to see you there!
Tessy’s Brunches (www.tessysbrunches) is dedicated to creating a platform where unseen women become visible through networking and mentoring opportunities. Our mission is not only about recognising women but understanding and addressing their unique challenges.
Our aims are rooted in three core principles: Empower, Engage, and Elevate. We seek to empower women by inspiring personal growth and self-discovery. We aim to engage by fostering meaningful connections and building a supportive community. Finally, we strive to elevate by enhancing professional development and personal fulfilment. Through these pillars, we are dedicated to helping women overcome barriers, realize their potential, and achieve both personal and professional success.
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