WOMEN: RAISING ENTREPRENEUR STANDARDS
The world, as we know it, is seeing a rise in businesses owned by women. Even then, statistics still show that the number of businesswomen is outnumbered by businessmen by a huge gap. Almost every list out there, whether it is Fortune 500 businesspersons or the Forbes’ annual list, we see men taking the lead. This makes me wonder, “Are men truly better entrepreneurs?”
So I decided to do a research on my own, and I powered my laptop on, switched my brain to the “research mode”, and started reading everything there is on the internet about the business world and when I connected the dots, well, read along to know what I discovered…
WHAT ARE THE CHANCES OF SUCCESS?
In the course of the period from 1997 to 2014, there is a massive increase of 68% in the businesses led by women. This data sounds very promising in women independence and empowerment; however, I realized the ratio of men starting their own business as compared to women is still 2:1.
The study also showed that if women are not able to achieve their goal, they have a tendency to start doubting their entrepreneurship skills and quit. Men, on the contrary, tend to give it another shot after an unsuccessful effort. Maybe this explains why Institute of Women’s Policy Research reported that of all the business owners in U.S., women constitute only 28.8%.
And when it comes to female business owners facing gender bias, this research didn’t bring any good news. Unfortunately, the times have not changed even now, and female owned businesses are still considered to be less investment-worthy and as compared to businesses owned by men.
But it’s not all bad news, contrary to what people believe, the study shows that industries and companies owned by women are more stable and profitable than male-owned ones.“Female business owners have a much lower failure rate compared to male-owned businesses”, said the reports. Click To Tweet
WHERE DO WOMEN TAKE THE LEAD?
It’s a fact that men and women naturally observe and risks with different perspectives. And when it comes to owning a business, risk management capabilities make all the difference.
According to this study, 62% of male business owners alleged that their companies were profiting well, while only 42% women claimed to be making decent profits. Surprisingly, the reality is opposite to these claims. As a matter of fact, female business owners enjoy higher profit rates. The same reported also revealed that while 80% of women interpret potential risks as opportunities, only 67% male business owners are able to do so. This is because women have better risk assessment skills as compared to men.
WHAT’S THE IMPORTANCE OF GROWTH IN FEMALE ENTREPRENEURSHIP?
Apart from improving gender equality in a firm, including female employees on directorial levels, or a woman starting her own business altogether has many benefits on the global economy. Let’s take a look how women contribute to improve the international business trends:
IMPROVED FISCAL PERFORMANCE
In a study conducted by the Credit Suisse Research Institute in the year 2012, which covered 2,360 international businesses, they reported that all-male executive boards lagged behind those boards which included women in their lineup. This proved that gender diverse teams are more progressive and show higher growth potentials.
If highly qualified and capable women are included in higher level management, a company’s productivity can increase in a spectrum of 3% to a massive 25%. Any sensible businessman knows how much difference even 3% can make, just imagine what 25% can do. Excluding such capable women from these industries will not only limit the talent pool, but also turn out to be counterproductive decision.
BETTER OVERALL PERFORMANCE
Companies, where competent women employees are given leadership ranks, are reported to achieve a superior overall performance in comparison to those where they had very few or no female staff on high ranks. Women are known to be better than men at multitasking, and their managerial skills are second to none.
WHAT’S IN IT FOR EVERYONE?
If we inculcate a woman’s skills and capabilities to their full potential, the horizons of success and prosperity in a business expand manifold. Everyone searches for a break, and once a woman gets the platform she truly deserves, she will soar to greatest of heights, taking your management and you company with her. Women also add to the balance of the work culture. Offices with a better ratio of male to female employees are known to have better working environment than offices with lesser or no female employees.
Having capable women on top ranks becomes a win-win situation for everyone. You let them explore and use their potential, and they’ll return you the favor with progress charts you’ve never imagined.
As a female entrepreneur, I only hope to inspire others to see their true potential in achieving things they once thought solely reserved for men.