Why Are Women Entrepreneurs The Future Of Small Businesses?
“The woman who follows the crowd will usually get no further than the crowd. The woman who walks alone is likely to find herself in places no one has ever been.” These were the words asserted by one of the great physicists of all time — Albert Einstein — that still echo loudly in the present times, and rightfully so. Certainly, it wouldn’t be wrong to state that women have been proving their mettle in various fields, including those majorly dominated by men, just by dint of willpower and ability. Running a business with considerable initiative and risk is no longer a male preserve. Despite the fact that only a handful of women can be found leading giant corporations or heading a country; an ever-increasing number of women are gradually shattering the glass ceilings and are taking up the challenge of building their own businesses right from scratch.
Not surprisingly, and also as per recent research by Harvard Business Review, women outscore men in most leadership as well as other key skills such as team working, innovation and problem-solving. According to another report by McKinsey, propelling women’s equality could add $12 trillion to the global economy by 2025. And in the best-case scenario, the same number could even leap to $28 trillion. This effect is similar to the size of the combined economies of China and the US today. Such research reports are a testament to the great untapped potential of women of today when given a more level field, such as mentoring, capacity building and their inherent leadership abilities fundamental to success in business, no matter the size. Let’s take a closer look at why women entrepreneurs are the future of making a small business big:
Better at understanding individuals on a profound level: It has been demonstrated consistently that pioneers with high emotional intelligence, which alludes to a high capacity to understand people on a deeper level, are more successful in managing teams. They lead with a groundbreaking leadership style and have a compassionate nature which supports a positive workplace environment in a company. Women entrepreneurs have frequently been noticed driving and leading with it, which unequivocally impacts the overall growth and development of emerging startup enterprises.
Dynamic as well as flexible: The working environment of small businesses is dynamic; hence, adaptability is critical for any leader, irrespective of his/her gender. It was found in a research report, conducted by Google and Bain & Company, that startups that are led by women founders are resilient as well as adaptable. The respondents of the survey were a few100 Indian women entrepreneurs and small business owners. Women often have confidence in the strategy of finding a problem and uncovering the solution consequently. They are also much better at performing various tasks than men because of conditioning, which assists them with zeroing in on numerous fronts of a business rather than just one.
Bring a high level of retention rate: Women founders as thought leaders are likely to have a significant degree of knowledge and expertise around monetary success than their male counterparts. This statement is supported by many studies as they indicate that when women are at the leading position in any business, higher revenues are generated. Their understanding of broader target markets leads to a high level of retention rate.
The inspiring element: Women entrepreneurs are less inclined to be spurred by money than male business pioneers. This statement is also substantiated by various researches that state that males are usually more likely to be motivated by financial gain than women leaders. This leads them to ponder long-haul monetary benefits as opposed to achieving short-term objectives. Hence, women leaders are better at driving the scope of any business.
The bottom line
Undoubtedly, for a considerable amount of time now, women have been fighting against widespread gender discrimination. Even after decades of struggle and trotting miles ahead in terms of empowerment, they still continue to face undeniable and hard-to-conquer struggles in all fields of life. However, fast forward to 2021, rather than nearly 2022, women are gradually making their mark. It’s simple, we cannot achieve meaningful businesses and innovations that are bespoke, relatable and inclusive unless and until we tap into the diversity for leadership representation.