As women continue making strides in business, it’s becoming increasingly apparent that their participation, particularly as leaders and decision makers, is not just good for women but a win-win for everyone.
Watching President Claire Underwood reveal her new, all-female cabinet for the first time in the latest series of House of Cards no doubt tickled anyone even remotely engaged in the battle for gender equality.
Of course, in the real world (at least for now), such a scenario is a bit pie in the sky: even in developed nations, women are seriously under represented around ministerial and boardroom tables. But the tide is slowing turning. Here in Australia we’ve witnessed a swathe of entrepreneurial women starting their own businesses, and evidence is mounting that increasing the number of women in leadership positions directly correlates with organisational, and therefore economic success.
Pursuing their own path
The pursuit of work/family balance and career fulfilment, coupled with technological advances, has prompted significantly more women to go it alone, and at a faster rate than men. Today, women own more than a third of Australia’s small businesses, representing a 46 per cent increase over the past two decades compared to a 27 per cent increase for men.
A large number are also carving their niche in areas previously untapped by male entrepreneurs. According to the 2017 Startup Muster report, more than 60 per cent of start-up founders started a business to solve a problem they personally encountered – and there are plenty of issues pertinent to women that have been largely overlooked. As a result, any pain point that forms part of the female experience is potentially a viable business idea that has most likely never occurred to a man.
Improving the female experience
Starting a business as a woman is one such stumbling block – hence the proliferation of ventures such as Business Chicks, which is all about giving women the tools they need to propel themselves and their businesses forward. Since buying the fledgling concept in 2006, Emma Isaacs has presided over its transformation into a community of thousands of engaged women, not just in Australia, but across 11 cities and two continents.
Recruitment company Beam has a similar ethos at its heart, offering skilled parents and more open-minded businesses a marketplace for exchanging flexibility for talent. The business was started by Victoria Stuart and Stephanie Reuss, who have both felt the pain of juggling work and family demands firsthand and are on a mission to change the narrative.
As companies like Beam have recognised, there’s much to gain from harnessing the expertise and skills of women: talent is one of the most essential factors for growth and competitiveness. But while we have plenty of well-qualified women coming through our education system – with 45 per cent of women aged 25-29 years holding a bachelor degree or above, compared to just 32 per cent of men – until we do a better job of hiring, retaining and promoting them, we’re losing out on a wealth of capacity.
Economic and organisational gains
According to research from McKinsey Global Institute, by improving parity between men and women we could add a whopping $US225 billion (12 per cent) to Australia’s annual GDP in 2025. Meanwhile, there’s plenty of other evidence to show the benefits of having more women in leadership roles on both a local and more singular level.
A report from Deloitte on behalf of the Queensland government, for instance, found that, overall, gender equality on boards would improve productivity of the Queensland population by $87 million. The same report goes on to highlight how gender diversity and inclusion on boards, either by bringing a greater breadth of perspective or enhancing the group dynamic, facilitates higher decision quality and greater innovation, giving the organisation a competitive advantage.
Research also demonstrates a relationship between the presence of women on boards and, subsequently, in executive ranks, which may in turn impact on broader employee engagement, too.
Women in executive roles bring traits and skills to their teams that are less commonly associated with their male counterparts. For example, a study by the Pew Research Center found that a far greater number of workers believe women are more likely to be honest and ethical and better at mentoring than men, than the other way around. And greater trust coupled with a more nurturing environment can only help to foster more high performing teams.
Ultimately, at the most simple level, women and girls represent just over half (50.7 per cent) of Australia, so isn’t it time we ensured their unique views, perspectives and talents gained the exposure they rightfully deserve? While momentum is building particularly in SME spheres, there is still much room for improvement in the areas of economic participation and opportunity and political empowerment. And it’s only by addressing these gaps that we can enable all Australian women to realise their full potential.
This article was first published on the Optus Yes Business hub in July, 2019.
