The critical factor in the growth of women entrepreneurship

Although women’s entrepreneurship is becoming increasingly important in the creation of new jobs and accelerating societies’ social and economic growth, their influence and participation in the leadership culture are still underrepresented.

Traditionally, women have been homemakers while men are considered to be the breadwinners. However, the world is now realising the importance of “making” over “winning” to achieve a broader objective. Modern women are ambitious and often find themselves in positions where they can offer employment to others, thanks to significant global societal shifts.

Unfortunately, women own just over 20 percent of all micro and small enterprises, compared to 80 percent of businesses that men own. Women also make up only 29 percent of senior management positions. Numerous studies suggest that women are better leaders than men.

Research also shows that women-led organisations yield more beneficial results than those managed by males.

A sustainable growth approach

Climate change and ESG (environmental and social governance) are both testaments that we should no longer compete over petty agendas but instead try to make the world a better place as a unified society.

Collaboration has become the norm in the corporate and the political world. Everyone agrees that it’s difficult to function in isolation. As a result, having a cohesive workforce is critical to success. Women are better at providing a feeling of security and compassion in general, which encourages colleagues to seek their help even at workplaces.

Businesses are rethinking titles such as general manager, executive, and vice president, favouring product leaders, creative leads, people officers, etc. All of this is made feasible by the convergence of diverse workforces. Today, startups have a goal-oriented structure rather than a tiered organisation to be on top of their game.

This is accomplished by recruiting people with the relevant skillset who align with the company’s vision, not just certified, experienced professionals.

The hiring and workplace norms are being challenged to make room for energetic innovation, leading to a sustainable future.

Achieving gender equality

Gender equality and the 2030 Agenda for Sustainable Development calls for women’s social and economic development. Although women account for half of the world’s human capital, they continue to be denied autonomy over their assets and decision-making.

Consequently, empowering women to fully use their potential and leadership in global business, politics, and society emerges as a critical component for thriving in a fast-paced market.

The inclusion of women leads to broader perspectives in all spheres. Most women tend to unpaid care duties, lowering their working hours and even forcing them to quit their paid jobs.

The effect of the pandemic has, thereby, led to reversing of gender equality. Gender discrimination, uneven distribution of resources, biased control in the family, existing preconceptions, and other factors are all contributory causes resulting in unfavourable development outcomes.

The importance of organisational diversity

Embracing diversity could be a critical factor in achieving long-term business goals. Even though it might sound complicated, numerous studies point out that diversity in an organisation could not only result in improved productivity and profitability but eventually lead to a higher level of innovation. The overall presence of women leaders and colleagues provides a fresh perspective to resolve recurring business issues.  

The time when organisations could operate in isolation is over. The traditional belief system that restricted women to a particular household role are no longer relevant. With an overall positive perspective on ESG, sustainability, and diversity management, one could acknowledge that women can make a significant difference in crucial leadership roles. Although the trends have changed significantly in the past few years, the future will see a more substantial role for women leaders in all sectors and positions.

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)