Why Support Women in Business?
It’s often said that when a woman succeeds, we as a country succeed. The success of women in business is essential to our nation’s prosperity and is foundational to many industries. Without the right leadership and investment, women will struggle to advance equality in modern society.
We cannot have innovation without women. Women have been at the heart of every significant breakthrough our world has ever seen, from politics and science to commerce and art. In a study for a global European institution, McKinsey examined 46 countries worldwide over more than 100 years and found that women-led economies consistently perform better than those led by men, as measured by metrics like wages, GDP growth, competitiveness in export markets, or the percentage of women in the workforce.
1. Reasons Why Supporting Women Matters
Entrepreneurship is critical to the vitality of our economy. Female entrepreneurs are more likely than men to start a new business and industry, hold patents and develop innovations for the future. Women’s purchasing power has increased ten times in the past 25 years, from $12 trillion in 1988 to $120 trillion today. Competitive companies with a diversity plan supporting women outperform their competitors by 41%.
2. The Importance of Supporting Women in Business
In 2010, women-owned more businesses than men, and women accounted for 83% of all consumer purchases. Women are the fastest-growing segment of the entrepreneurial community, and women entrepreneurs create jobs — on average, nearly two jobs for every job created by a man. Women make up 46% of the labor force and contribute to 39% of small business revenues.
Women are more likely to start businesses in countries where more women hold a traditional leadership position, such as CEO and manager. They tend to be innovators, taking risks and driving change at a faster rate than men. In fact, Forbes reports that an average of 89% of innovations in Fortune 500 companies are from women-owned businesses.
3. Supporter Interactions with Women Leaders
Women are more likely to back each other as leaders. One study discovered that 82% of female investors were likely to invest in a company run by a woman, compared to 66% of male investors. Businesses with women in leadership positions have more sustainable growth and profitability. Studies have shown that organizations with the highest representation of women in leadership have higher profitability and market capitalization than those without.
Originally published on GeniaPhilip.com on February 28, 2022