The most successful women entrepreneurs are significantly more likely to shut down their businesses if they experience sexual harassment, regardless of their profits.
April 1, 2026
Original Paper
Sexual Harassment and the Survival Rates of Women-owned Firms
SSRN · 6504819
The Takeaway
Economic theory usually suggests that higher profits keep firms in the market, but this study found that harassed women owners were 37% more likely to close their businesses even when they were outperforming their peers. It reveals that gender-based safety constraints can be powerful enough to override even strong economic success and financial incentives.
From the abstract
This paper examines sexual harassment and economic outcomes in entrepreneurship. Using a unique panel dataset of 790 women-owned firms in Ethiopia tracked over five years, we relate sexual harassment experienced by business owners to firm performance. First, we document the prevalence of sexual harassment among women business owners. We find over 16% of the women in our sample reported having been harassed in the prior 12 months, including incidences of sexual proposals and inappropriate physica