Every economic crisis is a stress test. For women-led small businesses in Uganda, COVID-19 was a particularly revealing one — and the lessons it surfaced should shape how we prepare for the next shock.
The asymmetric hit
Crises don’t hit evenly. Women-led businesses are more likely to operate in sectors most affected by lockdowns and mobility restrictions (food service, beauty, informal retail) and are more likely to run on thin cash reserves.
Care work doubles while income collapses
The most under-appreciated impact is the doubling of unpaid care work during school closures and movement restrictions. Women entrepreneurs were simultaneously losing income and being asked to absorb more family responsibility — a pincer that closed many businesses permanently.
“The businesses that survived the 2020 shock had two things in common: reserves, and a network.”
What the survivors did
The businesses that survived the 2020 shock had two things in common: cash reserves of at least three months, and an active network they could tap for orders, introductions and emergency loans. Both of those are investments you have to make before the crisis, not during it.
What must change
First: emergency finance mechanisms designed specifically for women-led micro and small businesses, with application processes that don’t require physical presence at a bank branch. Second: public investment in affordable, accessible childcare — the single biggest economic unlock for women entrepreneurs. Third: retailer and buyer commitments to honour purchase orders to women-led suppliers during demand shocks.
What CWEN is doing
We’re piloting a crisis response toolkit for members covering cash reserves, bookkeeping, and digital resilience — and advocating for permanent policy change on the three asks above. This is a long game. But the next shock is coming, and preparation is not optional.
