The National Bureau of Economic Research has found that the pandemic has eliminated a quarter of women-owned businesses, confirming that COVID-19 has had an increasingly negative impact on women and people of color.
The closure of early-stage companies, such as women-focused coworking spaces, will have a broader impact as they tend to be homes for women-owned businesses, which could enhance gender inequality in ownership.
Over the past few years, women-oriented companies had been opening across the globe, with firms like New York’s the Wing nurturing communities designed for women.
Another example is Cate Luzia’s company Luminary, which is a physical space and community built to advance women in the workforce.
Luzia said that since founding the company, she has expanded a network of women’s spaces to better support members. Now, as these operators are facing closures and employees continue to work remotely, revenues have been seeing all-time lows.
“Although I was able to reopen Luminary, so many of our partner communities and other spaces around the country weren’t able to survive the virtual reality we are living through,” wrote Luzia. “Now, there’s the ripple effect as some of these essential spaces and communities close their doors forever.”
Many of these companies have pivoted to digital platforms to stay afloat as the pandemic rages on, and getting through the “shecession” will require a strong sense of community among these businesses.