Starting your own business is often seen as a way to achieve greater work-life balance and flexibility, but our research into the reasons why women leave their jobs and the emotional impact it can have reveals that the reality for many female founders is quite different.
Researchers Dr Janine Swale (University of Auckland) and Dr Susan Marlow (University of Nottingham) conducted in-depth interviews with 16 female founders and found that all participants left their businesses for personal reasons, rather than financial or performance issues.
These reasons were related to gendered caregiving responsibilities for children and aging parents. Survey participants who have children or plan to have children said this was their main reason for leaving or selling their business.
Dr Swale, a senior lecturer in entrepreneurship and innovation, said although the study participants were from the UK, the findings had implications for New Zealand and the world at large.
Governments have a responsibility not to replicate the narrative that entrepreneurship is beneficial for everyone, because it is clear that for some women, this path can be financially and psychologically damaging.
Dr Janine Swale University of Auckland Business School
All of the women surveyed described their decision to withdraw from the business as a personal, i.e. voluntary, decision, and they often had to quit because it was impossible to meet the competing time demands of home and business.
“The evidence shows that participants are forced to exit or close their businesses, often without the allure of alternative (career) opportunities such as stable employment. This undermines the so-called choice and agency that is supposedly involved in an entrepreneurial career,” Dr Swale said.
“As a result, more women entrepreneurs are likely to be forced to sell, close or simply exit their businesses.”
In addition to childcare responsibilities as a mother being a major motivator for many women’s decisions to quit or sell their businesses, tensions over household finances were also an issue, and many business owners found themselves struggling with trade-offs between the time they spent on their business and the time they spent on their family.
In the face of these economic impacts, participants highlighted the disadvantages and problems of using entrepreneurship as a means to achieve flexible working and work-life balance.
As one interviewee put it, “Basically, I wanted to do something that was flexible. [business ownership] I think it gives you flexibility. I wanted a job where I didn’t have to work full time, but that was totally wrong, especially when it comes to starting your own business. I think it takes over your life and you just become a baby.”
The study authors say the common perception that entrepreneurship offers a route to earn a decent income while offering greater flexibility and choice about how, when and where you work could be dangerous.
Swail said nearly all of the study participants experienced strong negative emotions, including a sense of failure, immediately after closing or exiting their business.
“We need to take a more nuanced look at entrepreneurship and self-employment. We need to have difficult, realistic conversations about what it takes to set up and run a business from within a home, especially if you have a family or are considering starting one. Entrepreneurs, especially women, need to build relationships where they feel supported in terms of caregiving and finances. This is a conversation that doesn’t happen very openly in the startup ecosystem.”
Marlow and Swale say advocacy groups and government policy initiatives should refrain from presenting self-employment in a simplistic and overly optimistic way.
“Governments have a responsibility not to repeat the argument that entrepreneurship is beneficial for everyone, because it is clear that for women who at some point in their lives are burdened with caregiving responsibilities, the entrepreneurial path can be financially and psychologically damaging.”
The researchers say the many networking sites that exist to inspire female entrepreneurs and provide mentorship, role models and educational support should also provide a channel for women to share their more negative experiences with starting a business.
/University of Auckland Public Release. This material from the originating organization/author may be out of date and has been edited for clarity, style and length. Mirage.News takes no organizational stance or position and all views, positions and conclusions expressed here are solely those of the authors. Read the full article here.
