Harassment makes women's businesses fail, even when they're profitable

A new study shows that sexual harassment makes women-owned businesses 37% more likely to close within five years. This happens even if the businesses are initially profitable, suggesting harassment is a direct cause of failure.

Development programs have long focused on giving women entrepreneurs access to capital or training. This paper shows that even when women build profitable businesses, harassment can still force them to close. It means that efforts to support women's economic independence must also address safety and the social environment.