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Nearly 1 in 4 female-owned businesses remain closed post lockdown in the UK, iwoca study shows

Thursday 27 August 2020 13:04 CET | News

Women business owners could be making even greater sacrifices than their male counterparts in 2020 as they contend with challenges from the pandemic, a new survey of small business owners has found.

The research, undertaken by European small business lender, iwoca, found that in the coming year a large majority (60%) of female small business owners do not expect to take time off work, whereas under half (47%) of men don’t expect to.

The research found that nearly a quarter of women-owned businesses are still closed following the lockdown, with 23% reporting they are not trading, compared with just 14% of male-owned businesses. Women were less likely than men to report having returned to pre-Covid activity, with 14% of women reporting business was at normal levels compared with 21% of men.

This could have wider implications for the UK economy as, according to the Department for Business, Energy and Industrial Strategy, women-led SMEs are estimated to contribute around GBP 85 billion to economic output.

When asked about what sacrifices they had made for their business, almost half (48%) of all UK business owners reported going without a salary, however, female small business owners were more likely to have forgone a salary during the pandemic. Half of the women (50%) responding to the survey reported that they had not taken a salary since the beginning of the lockdown, compared with 47% of men. Looking ahead, female business owners were more likely not to take a salary over the next 12 months, with 42% saying they expected to go without wages compared with 38% of men.

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Keywords: small business, SMEs, lending, accounting, iwoca, UK economy, study, business loans
Categories: Banking & Fintech
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Countries: United Kingdom
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