Covid-19 forced a sudden reset in how UK women think about work. Six years on, that disruption has matured into a lasting shift in women’s startup behaviour. More women are choosing self-employment, but they are also starting leaner, more digital and more purpose-led ventures. The latest ONS labour market data, published in 2025, shows women make up a growing share of the UK’s self-employed workforce, although men still outnumber them. Since 2020, the profile of women founders has changed markedly.

The pandemic exposed deep inequalities. Sectors dominated by women, retail, hospitality, health and social care, and the creative industries, were among the first to close and the slowest to receive financial support. Many women running businesses from home found themselves juggling work with childcare, home schooling and caring responsibilities, often without the safety net available to larger employers. The United Nations warned that the pandemic risked unwinding decades of progress on gender equality.

Yet the same pressures also revealed the resilience, adaptability and community spirit of women entrepreneurs. Peer support networks, mutual aid groups and online communities stepped in where formal support was slow to arrive. As the economy reopened, that resilience began to reshape women’s ambitions. Rather than retreating from entrepreneurship, many women reconsidered what they wanted from work and how they wanted to build a business.

So how has women’s startup behaviour changed since the pandemic? The picture is mixed: aspirations are rising, but long-standing barriers around funding, childcare and workplace inequality remain.

The post-pandemic shift in women’s startup behaviour

Several clear trends have emerged since 2020. First, women are starting businesses later in their careers. ONS data shows self-employed women over 50 are a growing segment, with many using redundancy, caring breaks or pension flexibility as a springboard into consultancy, coaching, creative services or micro-retail. Experience is becoming a competitive advantage.

Second, the side-hustle-to-startup path is now mainstream. Digital tools, e-commerce platforms and social media have lowered the cost of testing an idea. Many women launch a business while still employed, building revenue and confidence before committing full-time. This reduces financial risk but also means growth can be slower and more fragile.

Third, sectors such as wellbeing, coaching, digital marketing, ethical retail, virtual assistance and creative services have seen strong growth among women founders. Technology-enabled businesses are no longer confined to large cities or big budgets; a laptop, a strong network and a clear niche can be enough to start.

Finally, values and flexibility are central to the new wave of women-led businesses. Founders are prioritising work-life balance, inclusive cultures, sustainable supply chains and mental health. Running a business is increasingly framed as a route to autonomy, fair pay and a working life that accommodates caring responsibilities.

The barriers still holding women back

The funding gap for women founders

Access to finance remains the biggest obstacle. Women-led startups continue to receive a disproportionately small share of external investment. According to Beauhurst analysis of 2024, the most recent full-year data available, all-female founder teams attracted around 2% of UK venture capital, while mixed-gender teams also raised far less than all-male teams. The gap is not limited to equity finance; many women also find mainstream business lending harder to access and report lower confidence in approaching investors. For a deeper look, see our guide to the female founder VC funding gap.

The British Business Bank has tried to address this through programmes such as Start Up Loans, which has lent more than £1 billion since 2012, with a significant share going to women. Newer initiatives, including women-focused funds and female angel networks, are also improving access to capital, but progress remains slow.

Childcare and caring costs

Childcare costs in the UK remain among the highest in the developed world. Coram Family and Childcare’s 2025 annual survey found that a full-time nursery place for a child under two can cost up to £15,000 a year in England. For mothers considering self-employment, that cost makes the leap into entrepreneurship feel risky, especially when income is uncertain in the first year.

Caring responsibilities disproportionately fall on women, and self-employed mothers often fall through gaps in statutory support. The expansion of government-funded childcare hours has helped some employed parents, but the self-employed still face complex eligibility rules and irregular income patterns that do not match nursery billing cycles.

Networks and role models

Smaller professional networks and a lack of visible women founders in high-growth sectors continue to limit ambition and access to opportunity. While board diversity has improved in large companies, the path from founder to chief executive remains steep. The Alison Rose Review of Female Entrepreneurship has repeatedly highlighted that boosting women’s entrepreneurship could add up to £250 billion to the UK economy, yet the pipeline from startup to scale-up remains leaky.

Why women still choose entrepreneurship

If the barriers are well known, the motivations are equally clear. For many women, the pandemic was a turning point in how they thought about work. Remote and hybrid working became normalised almost overnight, proving that flexibility and productivity can go hand in hand. When researchers ask women what matters most in a career, work-life balance and control over working hours consistently come top.

Autonomy is a powerful driver. Women often cite self-employment as a route away from unequal treatment, inflexible employers and the glass ceiling. The gender pay gap, limited progression opportunities and workplace cultures that do not accommodate caring responsibilities push talented women towards building something of their own. Running a business offers the chance to set fairer pay, design inclusive working practices and create a culture that reflects personal values.

There is also a growing sense that traditional employment no longer guarantees security. The pandemic showed how quickly jobs can disappear, while self-employment, despite its risks, can offer more control over income and direction. For some women, starting a business is not just about flexibility; it is about taking ownership of their financial future.

New opportunities in 2026

The post-pandemic landscape has created new routes into entrepreneurship. Artificial intelligence tools, no-code platforms and social commerce have lowered technical and financial barriers, making it easier to automate admin, reach customers and test ideas cheaply. Women founders are using these tools to run lean operations from home or shared workspaces.

Policy attention has improved too. The Flexible Working Act 2023, which took effect in April 2024, gives employees the right to request flexible working from day one, but it also signals a broader cultural shift that benefits women founders building flexible teams. Making Tax Digital for Income Tax Self Assessment is now rolling out from April 2026, changing how self-employed women manage records and submit returns. Our Making Tax Digital checklist for sole traders explains what to prepare.

Specialist support is also more visible. The British Business Bank, Innovate UK and regional growth hubs offer targeted programmes for women founders. Initiatives such as mentoring programmes, female founder networks and enterprise support schemes are helping more women turn ambition into action.

What needs to happen next

Closing the gap between ambition and opportunity requires systemic change. Policymakers and investors should focus on four areas:

• Finance: Increase the flow of venture capital, angel investment and debt finance to women-led businesses, with transparent reporting on gender splits.
• Childcare: Make childcare support genuinely accessible to the self-employed, including flexible payment models and eligibility rules that reflect irregular income.
• Networks: Expand mentoring, peer support and founder networks that connect women with investors, customers and experienced advisers.
• Procurement: Increase public and private sector spending with women-led suppliers to create reliable revenue streams.

Action steps if you are starting or growing a business

While systemic change matters, individual founders can take practical steps now to improve their odds:

• Map your funding options early. Explore British Business Bank Start Up Loans, regional grants, female angel networks and revenue-based finance before you need the capital.
• Build your network deliberately. Join women founder groups, attend sector events and find a mentor who has scaled a similar business.
• Model childcare into your business plan. Treat childcare as a fixed cost and research tax-free childcare, government-funded hours and informal care options that fit irregular income.
• Get your tax and compliance house in order. With Making Tax Digital now rolling out, use compatible software and set aside money for tax from your first sale.
• Start small and test fast. Use side projects, landing pages and low-cost digital tools to validate demand before leaving employment or taking on debt.

The outlook for women’s startup behaviour

The pandemic did not create gender inequality in entrepreneurship, but it did expose and intensify it. It also showed what women can achieve when given flexibility, community support and access to digital tools. Women’s startup behaviour has shifted towards more flexible, purpose-driven and digitally enabled businesses, but turning that ambition into sustainable growth still requires systemic change.

Closing the funding gap, reducing childcare costs and expanding access to mentoring and networks would unlock a huge reservoir of talent. Women are already starting businesses in greater numbers and reshaping the UK economy in the process. The task now is to make sure they have the support to thrive.