The COVID-19 pandemic brought unprecedented challenges, pushing many individuals to rethink their career paths. Notably, it has sparked a significant rise in women launching their own businesses across the United States. According to a recent study by Gusto, women now make up nearly half of all new entrepreneurs, a dramatic increase from pre-pandemic years.
The Gusto survey, conducted in 2021, revealed that women represented nearly 50% of startups in the U.S. This is a substantial rise from 2019, where women made up only about 30% of new business owners. The pandemic, with its widespread job losses and increased demand for flexibility, has driven many women to take the plunge into entrepreneurship. This shift is evident in the stories of women like Karli Shank, a mother of two with another on the way, who found a new calling as a business owner during the pandemic.
From Stay-at-Home Mom to Business Owner
Karli Shank’s journey into entrepreneurship began after spending three years as a stay-at-home mom. “I knew I needed to start working again,” Shank said. “Me and my husband were in the restaurant industry for 16 years, but I didn’t want to go back to that. So, I started thinking, ‘What am I going to do? Because I need to do something soon.'”
Shank co-owns Spark the Senses, an indoor playground for kids in Centennial, Colorado, which she opened in 2024 with her husband. The business not only fulfilled her professional aspirations but also allowed her to be with her children. “I love the idea of my kids being with me,” Shank said. “That was also a major reason why I wanted to own our own thing because I can bring them with me.”
Shank’s story is a testament to the growing trend of women seeking flexible work arrangements through entrepreneurship. Gusto’s survey found that 64% of women who started their businesses in 2022 did so to gain more flexibility, a need that has become increasingly important in the wake of the pandemic.
Economic Recovery and Female-Led Startups
The economic fallout from the pandemic resulted in numerous layoffs, particularly impacting women. Gusto’s study highlighted that 32% of women started their businesses because they were laid off during the pandemic. Dr. Kishore Kulkarni, an economist with Metro State University in Denver, noted this trend. “When recovery has begun, women are getting into more businesses with more vengeance than before,” he said. “We have women coming into the labor force and opening up new businesses more vigorously than men.”
This surge in female entrepreneurship is not just a temporary phenomenon but appears to be a sustained trend. Women have leveraged the challenges posed by the pandemic to create opportunities for themselves, leading to a more diverse and dynamic business landscape.
The Future of Women in Business
As the world continues to recover from the impacts of COVID-19, the entrepreneurial landscape is witnessing a significant transformation. Women like Karli Shank are not only creating businesses that cater to their needs but are also fostering environments that support other women. Shank’s indoor playground business has become a hub for other mothers who bring their laptops and work while their children play. “I do see a lot of stay-at-home moms that have side jobs here and there, and we’re just trying to make it work,” Shank said. “In this day and age, you kind of need two incomes.”
The rise in women entrepreneurs signifies a shift towards a more inclusive and flexible work environment. With the ability to balance professional aspirations and personal responsibilities, more women are stepping into leadership roles and driving innovation in various industries.
The growth of women-owned businesses is a positive development for the economy. It promotes diversity, encourages creative solutions, and contributes to economic resilience. As more women embark on entrepreneurial journeys, they pave the way for future generations, inspiring others to pursue their dreams and redefine success in the post-pandemic world.
