Study Reveals Motherhood Significantly Impacts Women’s Entrepreneurial Opportunities

A groundbreaking study from the Vancouver School of Economics has uncovered stark challenges facing women entrepreneurs after becoming mothers, revealing a significant barrier to women’s business success that experts argue requires immediate systemic intervention.

This content originally appeared in Motherly by Elizabeth Tenety.

Key Findings Highlight Entrepreneurial Obstacles
Research led by Valentina Rutigliano, published in the Social Science Research Network, analyzed nearly 1,000 mother-child pairs and delivered shocking statistics about motherhood’s impact on women’s business ventures:

• Women are 42% less likely to start a business in the year they give birth
• Female-led businesses experience substantial declines within five years of childbirth:
  • 21% drop in profits
  • 17% reduction in assets
  • 21% decrease in sales
• Approximately half the gender gap in entrepreneurial sales and profits can be directly attributed to motherhood

Systemic Challenges Compound the Problem
The United States’ lack of comprehensive support for working mothers exacerbates these challenges. Without universal paid parental leave and affordable childcare, women entrepreneurs face an uphill battle that their male counterparts largely avoid.

Notably, the study found that fathers experience minimal business impact after having children, highlighting the disproportionate burden placed on women.

Economic and Social Implications
Experts argue that these barriers not only harm individual women but also represent a significant lost economic opportunity. Women-led businesses often address critical community needs and drive innovation, making their marginalization a broader societal concern.

Potential Solutions
The research identified family support, particularly from grandparents, as a crucial factor in business survival for mother entrepreneurs. However, researchers emphasize that relying solely on family networks is not a sustainable solution.

Recommended systemic changes include:

• Implementing universal childcare access
• Establishing paid parental leave policies
• Developing flexible business funding that acknowledges caregiving responsibilities

Expert Perspective
The study serves as a critical call to action, urging policymakers, business leaders, and society to recognize and address the unique challenges faced by mother entrepreneurs.

As the research demonstrates, supporting mothers isn’t just a family issue—it’s an economic imperative that benefits everyone.

Head over Motherly to read the original content from Elizabeth Tenety.