The health crisis has highlighted the persistent inequalities between men and women entrepreneurs. Companies founded by women, particularly very small businesses, have suffered from financial fragility and, for the most part, fear having to close down.
More than half of all female entrepreneurs have lost half their business
According to Initiative France's survey of 9,000 VSE managers, 69% of women entrepreneurs were forced to suspend their business during the lockdown, compared with 49% of men. The survey also revealed that 66% of women entrepreneurs were unable to earn a living during this period (compared to 55% of men). The family context was a factor, with some female managers seeing their activity relegated to " a supplementary income ", says the network. However, the situation is " more egalitarian " for the heads of larger companies.
Another study carried out by Lab Bouge ta Boîte takes stock of the consequences of Covid-19 on the activity of VSEs run by women. Unsurprisingly, the picture is rather bleak: more than one in two women entrepreneurs claim to have suffered a drop in business of more than 50% since the deconfinement, and believe they are in danger of losing their business by the end of the year. The survey identifies a number of obstacles to recovery: loss of customers or contracts, a sluggish market, childcare issues.
Insufficient government aid?
85% of women executives surveyed have activated government measures. 75% have benefited from deferred repayment and almost 50% have taken advantage of the Solidarity Fund, which runs until December 31, 2020. By contrast, only 16% of those surveyed had obtained a government-backed loan.
The women's network study shows that women entrepreneurs were reactive during and after the lockdown, trying to find a solution to the crisis. Half of them took the opportunity to take training courses or increase their presence on social networks. Many women entrepreneurs have also redesigned their websites or expanded their product or service ranges.
Generally speaking, the support offered by the government to women entrepreneurs seems insufficient. Indeed, 16% of them fear closure in September. According to Bernadette Sozet, Executive Director of Initiative France, interviewed by AFP, this is because women have less savings to start up, and banks are logically more reticent. As a result, businesses run by women often have less solid financial foundations to withstand a crisis.
According to the Initiative France network and Lab Bouge ta Boîte, there are a number of areas in need of improvement, including the support and financing mechanisms available to women entrepreneurs, and the 50% financing of the first year's membership of a network or collective.