The rising cost of living is weighing on female entrepreneurs, with almost half predicting it will be their biggest business challenge in 2023, new research shows.
The economy was the chief concern for Australian women business owners in a new GoDaddy survey that explored the motivations and mindsets of women entrepreneurs.
The survey of 1011 Australian aspiring and current women business owners revealed the economic conditions are biting, with annual inflation in the December quarter the highest since 1990, a record run of interest rate rises and energy cost pressures.
Amid these cautionary conditions, 47 per cent said the rising cost of living would be the year’s biggest business challenge, followed by 45 per cent who nominated turning a profit.
As household spending tightens, two in five women business owners were also concerned about marketing and the ability to reach new customers or retain existing customers.
A quarter of women in business also nominated staying ahead of their competitors as the main challenge for the year ahead.
Encouragingly, the research revealed the lingering impacts of the pandemic like illness, supply chain challenges and fears of new restrictions are fading with 15 per cent of business owners concerned about these potential challenges in 2023.
And, even with historically low unemployment levels, eight per cent of women entrepreneurs said they were worried about finding or retaining staff.
Women in business remain optimistic about 2023
Despite widespread concerns about the economy, women entrepreneurs maintained a sunny outlook for the year ahead, with many expecting to flourish.
Almost a third of women entrepreneurs with a business or side hustle said they were most excited about growing their brand and business.
A quarter was also planning to invest in themselves, saying they were most looking forward to undertaking professional development and growing their skills.
Even with predictions household spending will slow, women entrepreneurs were aiming to innovate with 17 per cent saying they planned to expand their product or service offering.
Women entrepreneurs were also excited about 2023 to pursue:
- Travel opportunities (nine per cent).
- Venturing into new marketing channels (TikTok, email etc) (six per cent).
- Starting or building a team (five per cent).
- Selling or expanding internationally (three per cent).
Female entrepreneurs chasing flexibility and financial security
The research was also an insight into the factors driving women to pursue entrepreneurial endeavours, with the survey finding three quarters felt there was more opportunity in owning their own business than in working for someone else.
Most women entrepreneurs (43 per cent) said they started a business or side hustle to pursue greater financial opportunities.
A quarter of women said flexibility to work to their own schedule, anywhere and anytime was the main motivator to go into business while other reasons given included:
- To have the autonomy to be their own boss (12 per cent).
- Because the COVID-19 pandemic impacted their work (six per cent).
- After they lost their job (four per cent).
- Because they could not find a job they liked (three per cent).
The research also found that five out of six (83 per cent) working women surveyed have experienced burnout at some point in their careers.
The rise in popularity of e-commerce during the pandemic period was also reflected in the survey results with 86 per cent of aspiring women entrepreneurs saying they plan to have a website for their business.
Of these, 39 per cent backed themselves to build their own website, while 47 per cent expected they would need help.
At a time when cost of living is a growing challenge and unemployment remains low, it’s clear that many women are prepared to take their financial future into their own hands and back themselves to launch a business.
