In the wake of a national trend of women experiencing work disruption and leaving the workforce altogether because of the coronavirus pandemic, local experts are seeing an increase in women returning to work by starting their own small businesses.
In 2021, a national study by the Kaiser Family Foundation found that 11% of women surveyed quit their jobs due to pandemic-related reasons, with half of those citing school and daycare closures as a reason and 42% reporting they did not feel safe at work due to the risk of COVID-19.
But metro-area business and education officials are seeing an increase in women starting their own businesses and a high demand for affordable childcare to support parents returning to work.
The North Metro Denver Small Business Development Center at Front Range Community College typically sees a 50-50 split between men and women-owned businesses who use their consulting services, said Assistant Director Hannah Curtis. That’s increased to 60% women-owned businesses in recent years.
For women-owned businesses starting up, the numbers have risen from 63% in 2019 to 69% in 2020, 73% in 2021 and 83% so far this year.
“I think the pandemic for everyone gave us a chance to reflect, especially those who were needing more flexibility and control in their day-to-day,” Curtis said. “Some of them may feel starting their own business may provide that.”
Curtis has heard from new business owners that the pandemic gave them the push they needed to take an idea that had been floating around their heads for a while and make it a reality, she said.
Childcare is also a significant factor, Curtis said, including women seeking to start childcare businesses amid a statewide and national shortage of childcare providers. Since September 2020, the center has hosted nine cohorts of childcare workshops to help people start, sustain or expand a childcare business.
Front Range’s Associate Vice President of Workforce Development Janel Highfill helped launch a nonprofit organization, Springboard Child Care, in response to the need for more support for childcare entrepreneurs.
Finding high-quality, affordable childcare is a barrier for economic advancement and for the workforce, Highfill said.
“We are looking at creative solutions to address this need related to childcare, because when you dig into it, childcare entrepreneurs get into business because they love children, not because they love running a business,” Highfill said. “But if they’re not given supports to run a business, it’s not sustainable.”
It’s too soon to say whether increasing inflation is driving more people to return to work, Highfill said, but it could eat away at any progress made at closing the gender pay gap.
“The wage gap disparity between men and women is still there and still very real,” she said. “Starting your own business or getting an additional skill or credential you need to advance your career are important steps to close that wage gap.”
