Why do women become entrepreneurs?
Whilst the business world is still dominated by men, more and more women decide to enter it. Women became entrepreneurs for different reasons than men. What are the reasons for women to become entrepreneurs?
Various research show flexibility as one of the main incentives to start a business. This is because the responsibility of bringing up children is still with women. In addition, women are often the primary caregivers to aging parents or poorly members of the family. Being their own boss gives them the ability to work around their own schedule and to marry it with family routines. That means choosing how many hours they can and want to work and setting their own deadlines.
Flexibility is so important that it is valued higher than high earnings.
Speaking of earnings, a number of women decide to leave their employment not because it restricts their time but because they feel undervalued. Whilst this may be an individual’s perception, the pay gap is still very real and the process of narrowing it is very sluggish. Being a business owner gives them the ability to set and demand their prices and be paid what they are worth. It may also have tax benefits.
Some women are born entrepreneurs and bursting with creativity and ideas. For them running their own business is the opportunity to unleash these abilities and to build something great. What is better than doing what you love and getting paid for it?
Starting a business allows creating something from scratch, putting in a foundation for an organisation that aligns with its owner’s core purpose and values. It allows the entrepreneur to choose their own workforce and train them to deliver products and services the way that the owner prefers. It puts the owner in a position to create employment, which is a great boost for the economy.
Again what’s better than working with people that share your ideas and values?
Some women are simply forced to fend for themselves because they have been made redundant, laid off or simply dismissed. Despite a common misconception, having a job does not guarantee infinite stability. Generally an employee can be dismissed if their contract and fair procedure are followed. In the UK a maximum statutory entitlement to a notice period is 12 weeks. Obviously the contract may give a more generous entitlement but still, it is not a lot.
Especially at the moment when due to Covid-19, the economy is shrinking and a number of companies will end up in liquidation causing great job losses. The companies that remain are unlikely to carry out massive recruitment operations and the level of unemployment is predicted to grow.
So it may be that neither the freedom nor the creativity will be the reason why women are forced to launch their own business but some businesses will be born out of necessity.
Necessity is the mother of invention. So what great inventions await?
Article prepared by
Solicitor and Partner at CLC LLP