Financial result is not the main goal for women starting their business

Businesswomen share why they start their business after childbirth

Especially for Amway Charitable Foundation «Responsible for the Future» MAGRAM MR held a research devoted to entrepreneurship specifics among mothers – entrepreneurs.

The total of 638 online interviews with female entrepreneurs, mothers of underage kids, were held across Russia.

Socio-demographic profile

68% of the respondents are 30-39 y. o., 13% - 19-29 y. o., 19% - are over 40 y. o.

30% of the respondents combine business and regular employment while the vast majority, i. e. 70%, run a business only.

It is interesting to note, that women combine two types of work irrespective of their business projects’ duration. Among those, whose business exists for less than a year, 34% have a payroll job, among those, who own business from 1 to 5 years, and the share of hired employees makes 30%, 5-10 years – 25%, over 10 years– 18%.

The majority of the respondents (83%) own their business for no more than five years.

The majority of women are registered as individual entrepreneurs (41%) or as self-employed (22%). However 28% of the respondents have not registered their businesses due to their irregular or insignificant income (69%).

62% of the respondents have business in the service industry, 21% - in the manufacture, 15% - in the trade industry and 2% - in HoReCa.

The total of 74% of the respondents used their own savings when starting their business, 16% applied for a loan, and 12% borrowed from friends and relatives. 11% managed to avoid investments, 9% got subsidies from the government.
At the same time in 55% of businesswomen's families husbands provide the main income. 30% share, that their incomes are comparable with their partner's, while 10% earn less than their partners.

Key entrepreneurship drivers

50% start their own business to have more free time. Only 15% mention, that with starting their own business they have more free time, 27% confess, that they have less free time. 44% believe, that with their own business they have a chance to manage their work hours to their liking.

Also a popular reason to start own business is an opportunity to implement an interesting idea. 31% of the respondents decided to become independent, another 31% expected higher income vs. wage employment. 21% of the respondents wished to show worth in such a way.

For the participants of 18-29 y. o. the intention to have a higher social status became a significant reason to start their own business. Such reasons as special type of character (25%) and independence (36%) were also mentioned as a reason more often than others. For the age group over 40 y. o. financial reasons are important (35%).

Domestic chores sharing

48% of the respondents do the most of their domestic chores themselves, 36% share their domestic chores with their partner, depending on the situation. 13% split their domestic chores equally, and only 1% of the respondents mention, that their domestic chores are their partner's responsibility. Another 1% delegate all their domestic chores to special servicing companies.

The most complicated stages of business

45% of the respondents believe, that the most complicated goal is to start getting a stable income, 41% believe, that advertising and promotion are the most complicated things. 29% mention that achieving the balance between work, family and kid is hard.

Females over 40 y. o. find it harder to get adapted to market changes (15%), while the youngest respondents believe business registration to be difficult (9%) as well as searching for suppliers (13%). In businesses existing for less than 1 year, searching for ideas is the hardest (10%), as well as business plan development (20%), while in businesses over 5 y. o. employee recruiting is the most complicated goal (35%).

Business success

65% of women believe their businesses to be successful. At the same time for the majority of the respondents success means the implementation of their lifetime project (66%). 57% believe, that success means society benefits, while 56% perceive success as independence and an opportunity to plan their lives on their own. Those, who are focused on their business in the first place, declare their business to be the most successful (70%), while among those, who combine business and wage employment, such answer is registered with 52% of the respondents.

Pandemic’s impact on business

33% of the respondents managed to avoid the negative consequences of the COVID-19 pandemic. 26% go on doing their business with the same efficiency, 7% managed to expand their business. 47% complained about their lack of efficiency due to the pandemic. 20% failed to keep their businesses.

24% of the respondents faced their revenues dropping to zero, 1.5 -2 times reduction was registered with 20%, 19% faced higher prices of raw materials due to ruble / dollar fluctuation, 19% of the respondents failed to pay rent.

33% of the respondents applied for the government support, i. e. 16% received government subsidies and 10% used the delayed rent option.