Throughout the world there’s a huge gender gap in regards to business, and even in modern society women are still heavily discriminated against in the workplace. However, according to Inc., in the United States and Asia female entrepreneurs are both more innovative and more successful than their male counterparts. Here are the top three reasons why.
Women Take Fewer Financial Risks
A study conducted by the International Finance Corporation states that women are “less risky” than men. Taking fewer financial risks often leads to less debt and a slower rate of growth. Rapid expansion, however, can drive businesses into bankruptcy. This is because as expenses grow, so do costs, and they will often find themselves unable to cope with the demand. Women often prefer to keep their businesses smaller so they can focus on delivering a quality service and retain a better work/life balance.
A recent trend in this regard is the lack and women signing long term lease agreements for offices; and instead, opting for short term serviced offices. Unlike traditional office spaces – which often require a contract term of 3-5 years – serviced offices can be rented for as little as 1 month; provide services and facilities without overheads; provide a more prestigious working address; and most importantly, lower financial risk. Skyline Offices have compiled a case study exploring the benefits of serviced offices.
Women Often Seek Advice During the Startup Stages
70% of women who start businesses will seek advice prior to investing any time or money in their venture; and many partake in some form of government run business course. In addition, women are known to develop more thorough business plans and give their ideas more thought than men. Business leaders that prepare significantly increase their chance of success.
While seeking advice isn’t an innovative approach to conducting business, it can certainly help boost confidence and trigger more innovative ideas; especially in today’s remote working environment where high proportions of female entrepreneurs are starting new businesses online.
Women Place More Emphasis on Social Media
According to Forbes, women use social media a lot more than men; therefore, women business leaders tend to place more emphasis on social media marketing. It’s estimated that most female entrepreneurs invest roughly 79% of their online marketing budget on social media. While this may seem high; unlike other forms of online marketing, social media is a one-time investment because when a lead “follows” or “likes” a social network page or profile, they’ll be subject to free marketing in the future.
In addition to this paid traffic, Google looks favourably upon businesses that have an active social media presence and will reward them with higher organic rankings in the search engines. This can lead to a constant steam of free exposure.
Sadly, women are 18% less likely to believe that they can achieve success in business, which puts many talented individuals off the idea altogether. It’s going to take more than statistics to change narrow mindedness and gender discrimination; however, if women continue to yield successful results in the future, perhaps the faces of up-and-coming businesses will start to change.
Photo Credit: Jodie Womack
About the Author: Helen Wallis is a 30 something mum of one who enjoys reading and is a passionate blogger. Having worked in the big smoke for many years, Helen now enjoys a quieter lifestyle and indulges in her passion for writing and cooking.