The Great SHE-cession is Here

Economic Effects of Pandemic Don't Bode Well for the Future of Women in Business

Every year in March, we celebrate Women’s History Month, and while there is still plenty to celebrate when it comes to women overcoming the challenges that 2020 and beyond have presented, there is an emerging and alarming trend we should all be paying attention to.

While the business effects of COVID-19 have varied widely depending on industry, women-owned small businesses are on the front lines of the impact. According to a recent survey by the U.S. Chamber of Commerce, the number of female business owners who ranked the overall health of their business as “somewhat or very good” fell 13 points during the pandemic, from 60% in January to 47% in July 2020. By contrast, the number of male business owners reporting a “good” business health status only fell five points in the same period (67% to 62%).

In this study conducted by the U.S. Chamber, it also showed that female small-business owners are less likely to expect future success in the coming year compared to male owners:

• Revenue: Less than half of the female owners surveyed in July believe their revenues will increase in 2021, while 57% of male owners believe the same.
• Investments: Roughly one-third of women plan to increase investments in their business, compared to 39% of men.
• Staffing: Thirty-six percent of male-owned businesses expect to increase the size of their staff. Just 24% of female-owned businesses agreed.

Minority women-owned businesses face even sharper downturns. While many male-owned businesses have been impacted by this recession, as well, the sharp decrease in net jobs by women-owned businesses is now being called the great “SHE-cession.”

According to McKinsey & Company’s “Women in the Workplace 2020” study, due to challenges created by the COVID-19 crisis, as many as 2 million women are considering taking a leave of absence or leaving the workforce altogether. This is the first time the group has seen signs of women leaving the workforce at higher rates than men; in the previous five years of this study, women and men left their companies at similar rates. The study concludes that “if these women feel forced to leave the workforce, we’ll end up with far fewer women in leadership — and far fewer women on track to be future leaders. All the progress we’ve seen over the past five years would be erased.”

Women-owned businesses now more than ever need to be arming themselves with education and seeking out the sources that can assist them with recovery. We have great local resources right here in Brevard County including the weVENTURE WBC program at Florida Institute of Technology, the Small Business Administration and more. As we celebrate Women’s History Month, I ask that we collectively turn our attention specifically to the female-owned businesses right here in our own backyard that are in need of help. 

Jennifer Sugarman, President and CEO of the Cocoa Beach Regional Chamber of Commerce, is a busy working mom to son, Emmett. She formed the Cocoa Beach Chamber’s Young Professionals Group in 2016, currently serves on the board for United Way of Brevard and is an active member in Brevard County’s business community.

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