This study aims to analyze the possibilities of reducing poverty by increasing women’s employment in small businesses. Poverty is considered not only as income deprivation, but also as a complex socio-economic phenomenon closely linked to employment, human capital, and institutional opportunities. Within the framework of the study, an empirical analysis was conducted based on a small business entity in which women’s labor is actively involved and formal employment arrangements are in place. The research applies methods of analysis and synthesis, abstract-logical reasoning, and scientific generalization. The results indicate the existence of a stable and positive inverse relationship between women’s employment and poverty levels. Formal employment of women in small businesses contributes to the formation of a regular source of income, reduces informal employment, and lowers the risk of economic vulnerability.