This year in Aotearoa we are witnessing the highest business closure rates since 2015 with 282 companies entering liquidation, receivership or voluntary administration in March alone. High-profiled women-owned businesses such as Supy, Sunfed and Mina have all closed their doors. According to the Global Entrepreneurship Monitor 2023, family commitments, as well as the pandemic, posed bigger hurdles for women entrepreneurs than their male counterparts. In a survey carried out in 49 countries, 18 percent of female entrepreneurs who quit or exited a business did so for personal and family reasons, compared to just 12.6 percent of men.
Janine Swail conducted a recent study that delved deeper into the personal and family reasons that women entrepreneurs cited that led to their decision to exit their businesses, revealing a societal paradox that traps women entrepreneurs: forced voluntarism. She interviewed 16 women founders in the UK who exited their start-ups for personal reasons largely unrelated to financial or performance issues. These reasons typically involved balancing household and business demands and often included gendered responsibilities for child and eldercare.
Read more on The Conversation website.
To read the full academic article, follow this open access link below:
Swail, J. and Marlow, S. (2024). ‘Involuntary exit for personal reasons’ – A gendered critique of the business exit decision. International Small Business Journal 42(8), pp. 966–983.