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Giving Compass' Take:
• Geri Stengel, writing for Forbes, discusses the disproportionate economic impact of the COVID-19 shutdown on women entrepreneurs compared to men.
• Why are women entrepreneurs of color at an even greater disadvantage? How does childcare play a role in the disparity? What can you do to support women entrepreneurs through the pandemic's economic hardship?
• Learn more about the impact of COVID-19 on women entrepreneurs in India.
The economic price paid by women entrepreneurs during the coronavirus pandemic is far higher than that paid by their male counterparts. Because entrepreneurs are increasingly women, post-pandemic economic recovery is threatened.
Community Revival in the Wake of Disaster Lessons in Local Entrepreneurship finds that entrepreneurs drive economic recovery and help communities rebound after disasters. Entrepreneurs—more and more of them women—help communities survive and bounce back from destructive events.
While men are still more likely to engage in Total Entrepreneurial Activity (TEA), the gender gap narrowed between 2018 and 2019 in the United States: the ratio was 7.5 to 10 and 9 to 10 respectively, according to GEM.
Women held about 60% of the jobs that have been lost. Necessity entrepreneurship was dramatically higher for women than men during the 2007-2008 recession, according to GEM. Necessity entrepreneurs cannot find quality employment or are unemployed, so their only viable employment option is to start a business.
More women may turn to entrepreneurship for flexibility to accommodate childcare issues, according to research commissioned by the National Women’s Business Council.
With Covid-19 cases surging throughout the United States, looming lock downs, even if only partial, will continue to shock the economy in waves. The pandemic will have severe consequences on small businesses, especially those owned by women of color.
There are encouraging signs that federal, state, and local governments, as well as large corporations, are helping small businesses recover. But more can be done. A 14-year panel study of GEM finds women’s entrepreneurship thrives when there is supportive government policy towards entrepreneurship, minimal commercial and legal infrastructure, and a normative culture that supports entrepreneurship.
Read the full article about women entrepreneurs during COVID-19 by Geri Stengel at Forbes.