In Australia, we celebrate our small business owners. But who owns small businesses here? Specifically, what is the gender balance between men and women in small business ownership?
Reckon released a report examining the gender imbalance in Australian small businesses.
Jessica Morris, our Head of People and Culture, shared her take on the societal factors that contribute to gender inequality and the path towards empowering our women in small business ownership.
This interview has been edited for length and clarity.
Hi, Jessica. Thanks for speaking with me. Women ownership in small business has boomed since 1991, yet women still only share a third of the small business market.
What barriers do women face that lead to this gap?
“Women face several barriers, whether in small or large businesses, that contribute to the gap.”
“Small business ownership is lower among women, and the main barriers, I think, are around work-life balance expectations, access to funding, and industry representation. A culmination of these leads to a lower share of small business ownership.”
“There are many industries where men dominate regarding representation. You’ll find the same lower percentage of female small business ownership in industry occupations across many sectors. Take STEM, for example; women represent only 15% of all people working in science, technology, engineering, and mathematics.”
“Underrepresentation leads to lower access to funding, and as time goes on, we see that the gap between men and women remains. Unfortunately, we still have issues regarding discrimination and stereotypes that are applied to women, which makes it more challenging to achieve that 50/50 balance.”
Women business owners tend to represent more in healthcare and education, whereas men dominate construction, electricity, gas, water, and waste services.
Why are women still underrepresented in certain industries?
“This leads to what we were talking about: access. Society expects women to fill caregiver roles, and there is less emphasis on branching out to industries that men occupy more.”
“We have seen improvements across sectors, but as you mentioned, the utility and waste industry, which is male-dominated, still has a way to go.”
Two out of five women who own a small business have a tertiary education compared to just a quarter of men.
Why do you think women who own a business have a higher education than their male counterparts?
“We should celebrate and be proud of this. It is a sign of societal change, and education can serve as a pathway to overcoming the systemic challenges and biases that women face. It helps build credibility for women in the business industry and broadens their network.”
“Education gives women more opportunities to meet like-minded people and aspiring business owners, opening pathways to overcoming society’s current challenges.”
“I think we should be optimistic about the report’s findings, but it also sheds some light on the extra steps that women have to make to be successful.”
This report reveals a wide gender pay gap. On hours adjusted, women who own small businesses earn a median salary of $67,473, compared to $80,408 for men. Women also take home less of their revenue compared to men.
What factors contribute to the gender wage gap?
“The wage gap is compounded by the different industries that men and women work in and their representation in those industries. Women are more represented in the education and caregiving sectors, which attract lower salaries than the male-dominated construction and STEM fields.”
“It’s the industry that makes a big impact.”
“There is also the lack of flexibility to accommodate outside-of-work responsibilities that women are more likely to fill, such as domestic and caretaking roles. This leads to fewer hours worked and higher rates of part-time roles. So, even if they are running a small business, the hours women contribute can’t always be the same.”
The report shows that a higher percentage of men work more than 40 hours per week than women for their small businesses.
What factors lead to the difference in hours worked between men and women?
“The main and probably the most dominant one returns to women’s larger share of caring responsibilities, leading to higher levels of part-time work and unpaid hours to fit in a work week.”
“There is improvement, but it’s a process. There isn’t an instant fix to these types of things, especially in the hours worked. Hopefully, over the next few decades, we will see a balanced share of outside-of-work responsibilities between men and women.”
What should small business owners and Aussies in general, take away from this report?
“I feel the report isn’t about focusing on the question of fairness but rather about the progress we have made as a society and the areas that need improvement.”
“We know that businesses have a strategic advantage when they embrace a team of men and women—a balance of the two taps into different perspectives, skills, and solutions. The report shows that women face issues when it comes to small business ownership, but if we can improve representation across all industries, everyone benefits.”
“If we achieve crossover, we can foster more innovation, build better customer bases, and build a more resilient foundation for future decision-making. Studies continuously show that diverse teams are more effective at problem-solving and adapting to change—two essential things for small business survival.”
“So, ultimately, I feel gender diversity is improving, and it starts with representation. If we address representation, I think we’ll bridge the gap.”
Thank you for your time, Jessica! To find out more about gender equality in the small business space, check out the Gender Imbalance Report.
Jessica Morris – Head of People and Culture
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