Why you should invest in women-led businesses

5 minute read
Women in leadership roles

Female leadership is evaluated from different perspectives in many ways and corporate policies are developed accordingly. Leadership is the act of guiding people or a group of people who view the person as the sole light and follow them diligently in various situations, such as in a business. 

Leadership, in the political struggle for women’s rights, is supported by statistical data and institutional reports. It has been demonstrated that, beyond stereotypes and concerns, women's leadership has brought efficiency to organisations and carried them forward.

Organisations that genuinely strive to achieve gender equality in leadership positions experience great financial success over the years due to diversity, which also drives progress. 

Diversity leads to higher entrepreneurship levels and market orientation. It also results in the implementation and development of significant products and it is directly linked with the description of financial success in terms of revenue, profits, stockholders' equity, and assets. 

A study entitled ‘Global Women Leaders Survey 2018/The Digital Age – The Women’s Era’, conducted for the first time by KPMG, surveyed 699 global women leaders from 14 sectors in 42 countries. Some 37 percent of respondents ran companies with annual revenues of more than $500 million. In total, 62 percent were in companies with under $500 million. The study also showed that the courageous, confident, and realistic women’s characteristics rise to prominence in the business world. Women possess skills that can improve a company’s total output or even the overall quality and thus generate more business.

In the past, women’s intimidation was a vice but a blessing in disguise. The act led to an increased willingness to learn and when taught they appeared to grasp new skills quickly. With this trait and eagerness, women had a lot of effect as leaders and proved that they can perform as equally as men. Research has proven that a significant percentage of women are hardworking and women leaders tend to employ this type of characteristic, which leads to great results in business. 
According to the International Finance Corporation, 2017, women’s persistence has also been a great charm in the business world. For instance, in the marketing sector, getting to seal a deal needs persistence and perseverance; hence, more business thrives among women since they can simultaneously reach many customers and investors.

When research data and the leadership roles developed by women are examined, it is clear that in many cases they are more effective and efficient than men. Women leaders tend to be innovative and inclined to promote the development of their business without displaying sexist tendencies. They are likely to attract new talent to the institution and increase productivity and competency. Perhaps it might be because of different motivations, including constant competition, wanting to prove themselves while countering prejudice, but the outcome is impressive. 

Women leaders are optimistic about the growth potential, growth strategies, and employment in business, which is experiencing a paradigm shift with digitalisation. Economical growth is in the form of creating new jobs, increasing the number of firms, and capital stock. With an optimistic nature, they can easily penetrate the market and acquire more business as they usually do not give up easily. Women are also outstanding in interacting and socialising; hence, they can be instrumental in networking and forming business ties that might benefit a company a great deal.

Again, according to the International Finance Corporation, 2017, 77 percent of global female leaders view technological dominance as an opportunity, not a threat. They are adventurous and not afraid to take advantage of the possibilities of the technology to transform their business models. For example, the speed at which decisions regarding customer expectations are made is increasing exponentially. Women leaders have the ability and power to run their companies in these challenging and exciting times. Women in leadership merit further support and encouragement, even in decision-making.

Having women in leadership positions will also attract female customers as most women find it easier relating to fellow women than men. In the long run, the business market will expand considering how women can be excellent consumers. Women are the primary shoppers of household items, for instance, and research shows that women offer half or even more of the total household income. 

Women can also be outstanding mentors. Those personality traits can assure the continuation of business ideas and good business moral traits are passed on to the younger generation, including work ethics. When women take up leadership roles, it can help curb labour shortages, especially in countries with such problems. Women will also offer the same labour skills since they will now be able to enjoy equal empowerment and, even at times, a stronger working spirit.

Additionally, it now seems only natural and wise to have more women as leaders due to the current movement for female empowerment. A company that includes women on their executive boards will make more revenue due to the increased business following the recent movement. Regarding investors, they would also have an interest in investing in companies with women leaders as it is now an era the world is shifting towards and this can only result in higher revenue, benefitting them in the long run. States and non-governmental organisations are also supporting women’s empowerment.

In conclusion, women have a vital role in business success at a leadership level. The above examples show that it is a happy marriage of female and male contributions operating under the logic that recognises the role of women in leadership; it makes sense to back them financially through a specialised vehicle in a currently sparsely populated investment sector. 

It is evident from current statistics that businesses or organisations which are run by women leaders have the upper hand in thriving economically. The article has highlighted the unique skills that women possess which ensures their economic success in their business roles. 

According to the data mentioned above, women consumers can easily relate to women leaders or business owners, increasing market share and business growth. It is also evident that women are more receptive to technological change and are more likely to explore new ventures of technology due to their optimistic characteristics.