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Female Entrepreneurship and the Childcare Crisis: Impacts on Economic Growth and Innovation

Year: 2025

Type: article

Abstract: This study aims to examine the impact of the ongoing childcare crisis on female entrepreneurship. It specifically explores how insufficient and unaffordable childcare presents barriers to business growth, innovation, and participation in the economy by women entrepreneurs, and how these challenges affect broader goals of economic sustainability and inclusive development. This study employs a mixed-methods approach, using a systematic review of peer-reviewed literature, economic reports, and organizational publications. Secondary data from sources like the Kauffman Foundation, United WE, and the Federal Reserve were analyzed to identify policy gaps. Research tools included database searches via ProQuest and Google Scholar using relevant keywords and thematic content analysis of selected sources. Findings reveal that lack of affordable childcare significantly restricts the capacity, innovation, and scalability of women-owned businesses. Many female entrepreneurs must reduce business activity or exit entrepreneurship entirely due to caregiving demands. These barriers limit economic output, reduce workforce participation, and stall the progress of women in business leadership and innovation. This research is applicable in the fields of economic development, entrepreneurship, gender studies, labor policy, and public administration. It is especially useful to policymakers, small business support organizations, and advocacy groups focused on equity, economic resilience, and inclusive innovation ecosystems for women entrepreneurs.This study uniquely links the childcare crisis to constraints in female entrepreneurship and positions childcare policy as a key lever for economic innovation. It offers new insights and targeted policy recommendations that highlight entrepreneurship as a critical area for reform, reframing caregiving challenges as structural economic barriers requiring immediate attention.

Source: Research in Social Sciences

DOI: 10.53935/26415305.v8i3.408

Author: Jacquelyn Irene Eidson

Institution: University of Kansas

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, Gender equality, Industry, innovation and infrastructure, No poverty

Open Access status: diamond

Funder: Ewing Marion Kauffman Foundation