GEM 2024/2025 data reveals the hidden pressures pushing U.S. women out of entrepreneurship.
Women entrepreneurs in the United States are facing a unique and often invisible pressure: family responsibilities are pushing them out of business at far higher rates than men. According to the new GEM 2024/2025 Global Entrepreneurship Monitor, women worldwide are 47% more likely than men to close a business because of personal or family obligations—an imbalance that also reflects sharply in the U.S.
Globally, 29.4% of women who shut down their business in 2024 cited caregiving or household duties as the reason—double the 14.3% of men. The report warns that this gap highlights a persistent reality: women carry most of the unpaid care burden, even while launching and growing businesses.
In middle-income countries, the pressure is even worse. But the U.S. is not exempt. American women entrepreneurs report similar struggles: balancing childcare, schooling, elder care, and running a company—often with little institutional support.
The GEM report makes one thing clear: business closure isn’t about “personal choices.” It’s about systemic barriers, from lack of affordable childcare to limited access to capital. Women are also more likely to start businesses out of necessity—because traditional jobs don’t offer flexibility or economic security. Globally, 71% of women start a business due to a lack of employment opportunities, compared to 57% who do it for higher income.
Financing remains a major roadblock. Women entrepreneurs are more likely to operate in service sectors, which banks often view as high-risk, making loans harder to secure. In 2024, 16.1% of women who closed their business said funding struggles were a key factor.
If policymakers want more women-led businesses to survive, U.S. needs stronger support systems—affordable childcare, flexible business services, targeted financing, and gender-aware economic policies.
Because when women entrepreneurs are forced out of business by caregiving burdens, the entire economy loses.
