How does paternity leave shape mothers’ entrepreneurship in Sweden?

Entrepreneurship is often framed as an individual choice—driven by passion, innovation, or necessity. But what if the most important driver isn’t individual at all, but relational? Specifically, what if a mother’s decision to start a business hinges not just on external factors like the economy or government policy, but on whether her partner shares household and childcare duties?

This is the central question of the study by Naldi, Baù, Ahl, and Markowska, which explores how gender dynamics within the home intersect with entrepreneurship in Sweden. A country widely known for its supportive welfare system and commitment to gender equality, Sweden provides a fertile ground for exploring how parental leave, particularly taken by fathers, can act as a catalyst for mothers’ business creation. The study challenges the dominant narrative that women start businesses primarily out of economic desperation, offering instead a more nuanced, empowering explanation rooted in family dynamics and institutional context.

What We Studied

The researchers constructed a unique, large-scale longitudinal dataset covering all Swedish mothers of newborns between 2000 and 2014—over 700,000 individuals. These mothers were observed for up to 8 years after childbirth to see whether they became entrepreneurs. Crucially, the study focused only on mothers who lived with a partner, to isolate the effect of gendered dynamics within dual-parent households.

The key variables tested included:

• Unemployment and immigrant status of the mother (representing external labor market disadvantages).
• Paternity leave taken by the partner (as a proxy for internal household equality).
• A range of controls including age, education, previous entrepreneurial experience, number of children, household income, and regional context.

The researchers employed Cox proportional hazards modeling to determine which factors were most significantly associated with mothers starting a business.

Key Insights

1. Entrepreneurship Isn’t Always Plan B

Contrary to traditional views, many mothers in Sweden do not enter entrepreneurship as a last resort. While unemployment and immigrant status are indeed associated with business creation, these factors alone do not fully explain the trend.

2. Paternity Leave Is a Stronger Predictor Than Unemployment

The standout finding is that the amount of paternity leave taken by the father is a stronger predictor of a mother starting a business than either unemployment or immigrant status. This suggests that when fathers take an active role in childcare, mothers gain the bandwidth—and perhaps the confidence—to pursue entrepreneurial opportunities.

3. The Myth of the "Supermom Entrepreneur"

The study challenges the narrative that successful entrepreneurial mothers are simply high-capacity individuals juggling it all. Instead, success often stems from supportive partnerships where caregiving responsibilities are more equitably shared.

4. Household Income and Education Matter—but in Surprising Ways

Higher household income reduced the likelihood of entrepreneurial entry, hinting that financial pressure remains a motivator. Interestingly, higher education levels were negatively correlated with business entry—possibly because educated women have better access to stable employment options.

5. Sweden’s Institutional Context Supports—but Doesn’t Guarantee—Equality

Sweden’s policies, such as 480 days of paid parental leave and affordable childcare, provide a strong foundation for gender equality. But the study reveals that how these policies are used within households—especially how leave is divided—is what truly shapes outcomes for mothers.

Takeaways

For Family Businesses and Entrepreneurs

• Support Systems Matter: Behind many successful mother-entrepreneurs is a partner who shares in childcare. Recognizing and fostering equality at home is not just ethically right—it’s good business strategy.
• Invest in Family Infrastructure: Family businesses can benefit from creating flexible roles or family-supportive policies that mirror those at the national level. This may lead to increased entrepreneurial engagement from female family members.

For Policymakers

• Encourage, Don’t Just Allow, Paternity Leave: It's not enough to make parental leave gender-neutral. Incentives and earmarked leave days for fathers can actively reshape household norms.
• View Family Policy as Economic Policy: Promoting shared parenting may stimulate business creation among women, contributing to broader economic growth.

For Researchers

• Households as Entrepreneurial Units: This study emphasizes the importance of looking at the family, not just the individual, in entrepreneurship research.
• Expand the Scope: Future research should investigate whether these dynamics hold in other cultural contexts and among diverse household types, such as single parents or same-sex couples.

Impact

This study breaks new ground by highlighting how informal household arrangements interact with formal public policy to shape entrepreneurial behavior. It redefines the concept of “opportunity” in entrepreneurship—not just in market terms, but in the lived reality of family life. Sweden’s progressive welfare model may be creating a new kind of entrepreneur: one who is empowered not in spite of family obligations, but because those obligations are more equally shared.

Beyond academia, the findings offer a roadmap for nations aiming to boost women's entrepreneurship. Gender-equal parenting—supported and normalized by policy—could be one of the most effective, yet underappreciated, tools in the economic empowerment toolbox.

Recommendations

• Adopt a Household Lens in Family Business Strategy: Decision-making and opportunity recognition often occur within the family unit. Encouraging equitable domestic arrangements can boost women’s entrepreneurial engagement.
• Reframe Paternity Leave as a Business Enabler: Promote the idea that fathers taking leave is not just good for family bonding—it’s a foundation for unleashing untapped economic potential.
• Normalize Gender-Neutral Entrepreneurship: Move beyond the stereotype of the “mompreneur” balancing it all alone. Emphasize co-parenting and mutual support in entrepreneurial success stories.
• Explore Gender Norms in Policy Communication: How governments and institutions frame policies (as women’s rights vs. family rights) can influence how they are used and perceived within households.

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