Woman business owner numbers in Finland dropping

An owner of an events business is planning to put her company on ice as soon as she finds a full-time job.

Solo entrepreneur Kati Vasell is one of the woman business owners who is considering winding up their business.

Vasell has been searching for salaried employment for two years, so far without results.

“I’m still thinking of closing down my business, but in spite of active search, I haven’t found a job. So, I’m continuing to invoice my work gigs as a self-employed person,” Vasell, from Pirkanmaa, says. 

She has over 15 years’ experience in the events industry, but has seen business drop significantly in recent years.

“I’ve hosted and produced events, done work for restaurants, and this summer helped festivals provide cloakroom services. In other words: anything and everything.

At the same time, Vasell feels she has run out of energy. The Covid pandemic was particularly hard for the events industry, and it was followed by a series of crises which have kept work from returning to pre-Covid levels.

“With fewer gigs and clients, sales and marketing are hard,” she says.

Vasell has applied for several paid jobs in the events industry, such as producer and account manager roles. She hopes to put her years of entrepreneurial experience to use in a salaried job.

Woman business owner numbers falling

We recently reported on the numbers of woman entrepreneurs, which are in a concerning decline.

“The number of woman business owners has dropped steeply in recent years: by over 20,000 in the past three years,” says Katja Rajala, the chair of Suomen Yrittäjänaiset, the women’s branch of Suomen Yrittäjät.

The pension system reform, VAT increase, and resulting VAT relief abolition are considered to have made business ownership for difficult for women.

The most recent Yrittäjägallup survey found that just 31% of all business owners are women.

Service industry business owners in difficulty

Kati Vasell has discussed the situation facing woman business owners with fellow self-employed women. She says many female business owners’ faith in the future is being put to the test.

“The VAT increase and reduction of the household expense tax credit have made things worse, particularly for service businesses,” she says.

She says the drop in woman business owners’ numbers is a result of political decisions which hit predominantly female sectors. Simultaneously, consumers’ confidence in their own finances has dropped.

“Consumer retail is hard, as purchasing power is decreasing and the VAT rise needs to be passed on directly. When people can only afford the basics any more, they cut back on services, and corporate clients stop holding events,” Vasell says.

She plans to keep running her own business for the moment, but if she finds a salaried position, she will wind her business up.

“I have to make ends meet. At the moment, the easiest way for me to make an income is self-employment.”

Vasell hopes that running her own business will help her find a job. She has heard comments to the opposite effect.

“Someone on LinkedIn said that an employer might not want to hire a former business owner, because they are used to independent work and might want to stir things up too much. My own experience from job interviews is that self-employment is considered a positive. Someone who ran their own business has a broader understanding of how businesses work. My impression is that start-ups and smaller companies have a better understanding of business operations.”

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