Research by Reckon on small business ownership in Australia reveals both progress and challenges in women’s entrepreneurship, highlighting persistent gender gaps in income, industry representation, and work-life balance.

Combining ABS data with a survey of 1,000 small business owners, the report paints a detailed picture of the hurdles—and triumphs—that women face in the world of small business.

Women are building businesses, but the gender divide an issue

The good news? Female business ownership is growing. In fact, the number of women running their own businesses has skyrocketed by over 77 per cent since 1991—a much faster rate than their male counterparts. Yet, despite this surge, women still account for just 35 per cent of small business owners in Australia, showing that the gender gap remains a tough nut to crack.

The industries women enter are telling: more women are setting up shop in fields like Health Care and Education, with female representation at around 64 per cent and 62 per cent, respectively. Meanwhile, male-dominated sectors like Construction and Utilities continue to have minimal female ownership, revealing that industry choices remain divided along gender lines.

The pay gap exists in small business too

One of the most eye-opening findings in this report is the income disparity between male and female business owners. While the majority of female business owners (70 per cent) pay themselves a salary, it’s still less than the 78 per cent of men who do the same. But the real kicker is in the numbers themselves: men are taking home a median salary of $59,500, whereas women are at $40,000—nearly 50 per cent less.

Average salaries show an even starker contrast, with men pocketing $89,759, while women earn only $48,729 on average. Even when comparing full-time equivalent salaries, women’s earnings still fall short, reflecting deep-rooted inequalities in pay that continue despite women’s strong business presence. And for many women, taking home just a fraction of their business revenue is common; more than one in five female owners report earning between 0-10 per cent of their total revenue, compared to just 15 per cent of men.

Imposter syndrome and respect in the business world

Running a small business is no walk in the park for anyone, but this report highlights some challenges women uniquely experience. Issues like “work-life balance” and “financial pressure” rank as the top struggles for both men and women. However, “imposter syndrome” is one area where women are particularly affected: 16 per cent of female business owners report experiencing this self-doubt, compared to just 6 per cent of men.

This lack of confidence is impacted by another reality: only half of the female respondents felt they were respected by stakeholders at the outset of their ventures. Men fare only slightly better here (58 per cent), but the difference is a reminder that confidence and respect are still uphill battles for many women in the business world.

What drives women to start their own businesses?

While women are overcoming these challenges to run successful businesses, their motivations often differ from men’s. Yes, financial independence and flexibility are major drivers, but passion and personal fulfilment rank even higher for many female business owners. It’s clear that women are drawn to business ownership for reasons beyond just profit—they’re looking for ways to follow their interests, achieve a sense of purpose, and take charge of their own work-life balance.

Interestingly, men tend to start businesses after spotting a market opportunity more often than women, while women often enter business ownership because they’re passionate about a particular field or want more control over their schedules. This focus on balance and personal interest hints at a different approach to business and could help explain why women are more likely to own businesses in fields that support community and wellbeing.

The time crunch: Men working more hours, women juggling priorities

The report also shows that male business owners are often putting in longer hours than their female counterparts, with nearly 28 per cent of men clocking over 40 hours a week, compared to just 14 per cent of women. The reason isn’t necessarily lack of ambition—many women are balancing business ownership with other responsibilities, including family care and household management, which may restrict the time they can invest in their businesses.

For those running side hustles, the contrast is even starker: over half of female side hustlers spend less than 10 hours per week on their businesses, compared to 40 per cent of men. This time crunch is likely a factor in the earnings gap, suggesting that women may need more support in managing the many hats they wear as business owners and family managers.

Bridging the gap for women in small business

So, where does this leave us? Despite the impressive strides women have made, there’s still a fair way to go. Jess Morris, Head of People & Culture at Reckon, sees room for improvement.

“We’ve seen strong growth in female business ownership, but the earnings gap and other disparities make it clear that there’s more work to be done. We need to support and empower women so they can thrive as entrepreneurs.”

Empowering female entrepreneurs isn’t just about closing the gender gap—it’s about fuelling the economic power of Australia’s 97 per cent small business sector. As more women join the world of small business, there’s an opportunity for policies and programs that offer mentoring, networking, and resources designed to help them succeed.

Addressing unique challenges, like imposter syndrome and access to male-dominated industries, is just one piece of the puzzle.  Morris believes that with the right support, women can continue to close these gaps and transform Australia’s small business landscape, one venture at a time.

Read the full report

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