New research from the University of Surrey indicates that businesses led by women faced greater challenges in recovering from the pandemic compared to those run by men. The study, conducted on a global scale using data from over 11,000 firms across 34 countries, found that women-led businesses tended to have less access to external financial resources, occupied weaker positions in professional networks, and were more affected by personal constraints such as school closures.

The study assessed the resilience of these businesses by examining changes in their sales compared to the previous year. The findings shed light on the disparities faced by female-led businesses in navigating the economic impacts of the pandemic.

Increasing support

“Our research underscores the critical need to bolster support for women in leadership, particularly in times of crisis. Female-led businesses faced unique challenges during the COVID-19 pandemic, stemming from limited access to external resources. Addressing these disparities is vital,” the researchers explain.

“By providing better access to financial, network, and governmental resources, we can fortify the resilience of female-led businesses, empowering them to thrive in testing times.”

The research also pinpointed strategies that bolstered resilience. Businesses with multiple departments and those that innovated their business models, such as by introducing new delivery services, demonstrated better adaptation to the challenges posed by the COVID-19 pandemic.