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From Crisis to Confidence: How Women Entrepreneurs Fared During the Pandemic

Goldman SachsAsahi Pompey, Candice Tse, Allison Nathan, Mancha Feha
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  • Revenue declines are expected to be the most significant challenge for approximately 60% of respondents, with service-driven businesses in emerging economies facing disproportionate strain from lockdowns and income loss.
  • While 86% of alumni anticipate remaining in business, 8% face temporary closure and 3% face permanent closure; businesses reporting revenue declines are projected to be 10 percentage points more likely to encounter financing challenges.
  • A permanent pivot in business models is expected for 70% of entrepreneurs, driven largely by a major trend of increased digital adoption to enhance efficiency and balance personal lives with business operations.
  • Digital transformation is a central plan, with 74% of women investing or planning to invest in technology training and 70% viewing technological skills as a higher priority; this includes a new 10,000 Women course focused on digital tools, social marketing, and online sales scheduled relative to the June 10, 2021 recording date.
  • Family commitments are projected to impact 43% of entrepreneurs, causing 50% of the cohort to feel their work performance has declined, while 43% report increased pressure from personal obligations.
  • Optimism remains high at 78% globally, though confidence levels are predicted to decline most significantly in Latin American economies, specifically 48% in Mexico and 46% in Brazil, potentially leading to conservative decision-making and a status quo mindset.
  • Psychological burdens from the pandemic may slow growth potential short- and long-term, yet recovery is expected to spark renewed assurance as growth and activity normalize.
  • Women entrepreneurs are expected to remain underrepresented in high-growth sectors like agriculture, mining, and technology, while being overrepresented in industries hit harder by the pandemic.
  • Community contributions are projected to decrease by 13% due to financial constraints and time pressures, despite 86% of entrepreneurs continuing to give back and more than 70% maintaining the view that business must have a purpose beyond profit.
  • Strategic changes include a shift toward digital permanence, such as using online sales channels alongside in-person activities and recording events for residual income, alongside greater delegation to focus on high-value tasks.
  • Future needs identified include promoted training in technology, enhanced and affordable childcare, advanced access to capital, and expanded networks of women to support the 10,000 Small Business alumni cohort.
  • Risks involve the potential undoing of years of gender gap progress without broad support regarding capital, networks, and systemic changes, particularly for small and medium-sized businesses in emerging economies.
  • Economic forecasts correspond to the recording date of Thursday, June 10, 2021, and the statements do not constitute a recommendation to the listener.