Covid-19 changed almost every aspect of daily life in the UK, but the impact was not felt equally. For women in business, the disruption was especially sharp. 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 startup behaviour amongst women changed since the pandemic? The picture is mixed: aspirations are rising, but long-standing barriers around funding, childcare and workplace inequality remain.
What is holding women back from starting a business?
Women remain under-represented among UK business owners. According to the latest Office for National Statistics labour market data, there are around 4.4 million self-employed people in the UK, and roughly 1.7 million of them are women. That is a sizeable community, but it still means men outnumber women in business ownership by roughly two to one.
Research since 2022 suggests that around six in ten women would like to run their own business at some point. The biggest obstacle they report is access to finance. Women-led startups continue to receive a disproportionately small share of external investment: all-female founder teams attract only a tiny fraction of UK venture capital, while mixed-gender teams also raise 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.
Other barriers are just as entrenched. Childcare costs in the UK are among the highest in the developed world, making it difficult for mothers to take the financial risk of starting a business. Caring responsibilities, a lack of visible role models, and smaller professional networks all play a part. Since 2022, the cost-of-living crisis and rising energy bills have added new pressures, making the leap into self-employment feel riskier than ever.
The good news is that awareness of these barriers is growing. Specialist funding for women-led businesses, female-focused angel networks, and government-backed schemes such as the British Business Bank’s Start Up Loans are slowly improving access to capital. But more progress is needed before finance is truly gender-neutral.
Why do women want to become entrepreneurs?
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 for women in business
The post-pandemic landscape has created new routes into entrepreneurship. Digital tools, e-commerce platforms and social media have lowered the cost of starting a business, making it easier to test an idea while still in employment. Side hustles, freelance work and micro-businesses have become an increasingly common first step, allowing women to build confidence and revenue before committing full-time.
Sectors such as coaching, wellbeing, creative services, digital marketing and ethical retail have seen strong growth among women founders. Technology-enabled businesses are no longer the preserve of large cities or big budgets; a laptop and a strong network can be enough to get started. Online communities and peer support have also flourished, helping women share advice, find customers, and build confidence.
Policy attention has improved too. The Alison Rose Review of Female Entrepreneurship highlighted that boosting women’s entrepreneurship could add billions to the UK economy. Initiatives such as mentoring programmes, female founder networks, and enterprise support schemes are helping more women turn ambition into action. At Prowess, our resources, mentoring and networking pages are designed to connect women with the practical support they need.
Looking ahead
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. Startup behaviour amongst women 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.
