Quarter of Female Small Business Owners Take Pay Cuts Amid Economic Downturn

One in four female small business owners in the US took a pay cut in the past year due to the down economy. The top struggles for these entrepreneurs include funding, growing their business, and inflation, with many making sacrifices to keep their businesses afloat.

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Quarter of Female Small Business Owners Take Pay Cuts Amid Economic Downturn

Quarter of Female Small Business Owners Take Pay Cuts Amid Economic Downturn

A recent article has revealed that one in four female small business owners in the United States have taken a pay cut in the past year due to the down economy. The research, reveals, female, small, business owners and highlighted the struggles they face in keeping their businesses afloat amidst economic uncertainty.

Why this matters: This trend has significant implications for the overall economy, as small businesses are a crucial driver of growth and job creation. Moreover, the struggles faced by female entrepreneurs may have a ripple effect on their families and communities, exacerbating existing social and economic inequalities.

The article found that 53% of female business owners said the past year has been the hardest for their business, with funding (39%) and growing their business (30%) being the top struggles. To keep their businesses running, 37% of small businesses have raised the price of their product or service, while 27% are actively seeking less expensive resources.

Inflation (39%) and funding (25%) are the top concerns for female small business owners in the next year. The article also revealed that 42% of respondents said being a business owner has made it more difficult to balance their outside work responsibilities, with one in eight feeling they need to choose between their family and their profession every week.

Despite the challenges, female small business owners remain committed to making a positive impact in their communities, with 21% of respondents saying success is all about making a difference. A fifth (21%) also included innovation as a success marker. To overcome challenges, they are cutting back on working hours, taking time for quiet reflection, and being willing to take a day off as necessary.

Kevin Moffitt, executive vice president of The ODP Corporation and president of Office Depot, emphasized the company's commitment to supporting female entrepreneurs, stating, "The number of women entrepreneurs has grown significantly in recent years, and it is our privilege to support these business owners so they can position themselves for future growth." article He added, "Small business is the cornerstone of this country. Our goal is to help every small business succeed."

The survey, conducted between April 3 and April 12, 2024, was a random double opt-in survey of 1,000 female small business owners, half of whom are minorities. It sheds light on the significant sacrifices and challenges faced by female entrepreneurs in the current economic climate, as they strive to keep their businesses running while balancing their personal lives and responsibilities.

Key Takeaways

  • 1 in 4 female small business owners in the US took a pay cut in the past year due to the down economy.
  • 53% of female business owners said the past year was the hardest for their business, citing funding and growth as top struggles.
  • Inflation (39%) and funding (25%) are top concerns for female small business owners in the next year.
  • 42% of respondents said being a business owner makes it harder to balance outside work responsibilities, with 1 in 8 feeling they must choose between family and profession weekly.
  • Despite challenges, female small business owners prioritize making a positive impact in their communities, with 21% defining success as making a difference.