A recent study by Valentina Rutigliano sheds light on how childbirth disproportionately affects women entrepreneurs, creating long-lasting challenges. The research found that women are 42% less likely to start a business during a childbirth year. For those who do run businesses, the aftermath of childbirth often results in a 21% drop in sales and profits, along with a 6–7% decline in profit margins and returns on assets. Survival rates for these businesses also diminish, with a 2.5% yearly reduction in operational likelihood.
Interestingly, men-led businesses show minimal changes after fatherhood, highlighting a stark gender disparity. The study attributes 47% of the sales gap and 54% of the profit gap in startups to the impact of children. Rutigliano emphasized that new businesses are especially vulnerable, as founders typically lack the established infrastructure to delegate responsibilities, making distractions caused by childcare even more detrimental.
Family support, particularly from retired grandmothers, plays a critical role in improving outcomes for entrepreneurial mothers. Proximity to grandparents can significantly enhance business performance, with retired grandmothers proving most impactful in regions lacking formal childcare options. The findings suggest that addressing childcare barriers and offering targeted support could help close the gender gap in entrepreneurship, enabling mothers to better balance family and business.
