There is a solid reason why entrepreneurs are among the most unusual and thought-provoking people in society. They support the expansion of the economy and our ever rising standard of living. They benefit everyone else as well as themselves by expanding their business and achieving their goals. Talking about women in business particularly, today's women are not just homemakers; they are also money-makers. With each passing day, more women are taking over the business sector. Women have increased their interest in and involvement in entrepreneurship during the past few years. When women are at the forefront of business, innovation is boosted, productivity soars, creativity blossoms, and ultimately the economy expands.
According to new LinkedIn statistics released, even while Indian women are underrepresented in leadership positions in the workforce (18%), they are currently looking for more entrepreneurial possibilities than men. According to data from the World Economic Forum's 2022 Global Gender Gap Report, the proportion of female founders increased 2.68 times between 2016 and 2021 compared to 1.79 times for men. During the pandemic, the years 2020 and 2021 saw the highest growth rates for female entrepreneurs.
The study also showed that women are not promoted internally to leadership in businesses at the same rate as males, which is another factor contributing to their underrepresentation in leadership positions. Men are 42 percent more likely than women to be promoted to leadership roles.
This may help to explain why, as women's employment rates decline along the corporate ladder, they fall more behind their male counterparts in senior career stages and in leadership positions. In India, the proportion of women in leadership positions has plummeted from 29% at the senior level to a startling 18% at the managerial level.
"Our new data is indicative of one thing: working women in India are being held back by more barriers in the workplace when compared to men. But despite the adversity, many women remain undeterred and continue to chart their own path by pivoting to entrepreneurship and building careers that allow them to work on their own terms with greater flexibility," said Ruchee Anand, Senior Director, India Talent & Learning Solutions at LinkedIn, in a statement.
"We saw this, especially in the years of the pandemic (2020 and 2021) when women sheltered from a shrinking job market by starting their own businesses that also created opportunities for other women," Anand added. However, the new data also reveals that there is progress being made. More women are being hired into leadership roles from eight years ago, shooting up to 24 percent this year -- 1.36x since 2015. However, more needs to be done.
"As employers navigate this challenge of making work 'work' for women, they must remember that factors like internal mobility, fair hiring practices with a focus on skills, and flexibility are going to prove key in not just leveling the playing field for women, but also improving efficiency through balanced representation, diversity of perspectives and inclusive leadership at the workplace," Anand said. Further, to support female entrepreneurs, and women in the workforce, LinkedIn has also unlocked some of its courses for free until August 22. These include Gender in Negotiation; Getting to Yes: Advice for Female Founders on How to Get Funded; Leadership Strategies for Women; and Success Strategies for Women in the Workplace.
Why Women are Better Entrepreneurs than Men: Productivity, innovation, and creativity
Women business entrepreneurs are renowned for identifying gaps and unmet needs in their communities before developing goods or services to address those needs specifically. Women are more likely than males to establish their own businesses because they sense a need for it.
Because they are aware that enterprises of this nature are more likely to produce significant amounts of revenue over time, other business owners might launch an enterprise such as a tech company.
It's hardly surprising that, as evidenced in women, problem-solving and creativity are frequently associated. In the realm of entrepreneurship, women are essential because they identify issues and present the ideal, original approach to resolve them. Every type of industry needs their unmatched inventiveness and ingenuity.
When common problems are resolved, society gains from increased productivity, and industry gain from the introduction and application of these innovations. Businesses are increasingly competing with one another as they look for the best alternative. Women should be encouraged to launch their own businesses, regardless of whether they do so out of necessity, as a way to augment their income, or for other reasons. We require more female entrepreneurs.
The case for women's economic empowerment is compelling from both an economic and social perspective: more gender equality fosters economic growth, which in turn improves development results.
Women, on average, reinvest their income into their families, communities, and neighbourhoods at higher rates than males do; by expanding women's access to wealth and opportunity, women greatly strengthen our communities overall.
Women have a crucial role in entrepreneurship and will drive change for many years to come. They contribute to economic growth, innovation, creativity, and productivity through their ingenuity. They also encourage other women and people to start their own businesses.
To put it another way, the world requires more female entrepreneurs. The sooner, the better.
The report is based on LinkedIn data, which was compiled from the 830 million global users' anonymized and aggregated profile data. The percentage of women in leadership is calculated by dividing the total number of women who hold director, vice president, chief executive officer, or partner roles by the combined number of men and women who occupy similar positions.
