Board rooms these days are still predominantly male, but when a female exec graces the table, she’s typically reporting higher company earnings, data shows. As women climb not just the corporate ladder but are increasingly starting companies all of their own – Birchbox, Tory Birch and Flickr were all started by women, to name a few – we figured it was time to weigh in with some stats and reflection about the female leader and entrepreneur.
Facts and Figures
The number of female startup founders is on the uptick. According to data from Tech Crunch[1], in 2009, 9.5% of startups had at least 1 female founder. By 2014, that percentage had nearly doubled, hitting 18%. In terms of overall businesses, the 2012 U.S. Census reports that women own 36% up from 30% in 2007.
On top of it, Women 2.0 reports that female execs achieve a 35% higher ROI[2].
Growth on all fronts.
It’s important to note that women face more significant hurdles in starting up: loan approval rates for female-owned businesses are 15-20% lower for female business owners and VC capital is typically harder to secure.
The Impact
What’s in this for consumers, industry, and larger culture? Lots. While data on how female entrepreneurs, small business owners, and execs influence business and culture is disparate and reflective of individual industries, the overarching pattern is the same: female business leadership inspires other women to take leadership roles and stimulates the economy.
To that end, we’ve identified four ways the rise of the female business leader is good for everyone.
Impact #1: Women business leaders inspire other women to lead in their own right, causing a ripple effect of women participating in and shaping new areas of culture. Oprah, Sheryl Sandberg, Arianna Huffington… the number of other women these trailblazers have inspired cannot be underestimated.
Impact #2: Women business leaders help continue to normalize the idea that women can and should determine their own futures. When we admire female business leaders, we’re also affirming that women self-determining is of high value.
Impact #3: Some female-run businesses create products that serve female consumers better. Whether it’s Thinx undergarments or Diane von Furstenberg’s famous wrap dresses, women are often driven to innovate in areas they’ve been moved by. Then, consumers reap the benefits!
Impact #4: Women innovate based on their life experiences, bringing a fresh perspective to the marketplace. Life would be very different without companies, campaigns, and brand stories inspired by the female experience.
The Takeaways
The growth of female business leaders in the workplace creates a more diverse and therefore more resilient economy – so the rise of the female business leader lifts all boats.
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And if you have any other points related to how women business leaders are impacting the world, leave them in the comments. We’d love to hear from you!
[1] http://www.forbes.com/sites/groupthink/2013/03/05/startup-weekends-focus-on-women-founders/#313cbb9a233b
[2] https://techcrunch.com/2015/05/26/female-founders-on-an-upward-trend-according-to-crunchbase/