Posted by It is hard to make bets sometimes. It means taking sides, and eliminating possibilities. It means taking a stand. But as International Women’s Day approached, I was certain this was the bet I wanted to express. As I long for change in the way we think, organize ourselves, live and grow, women need to be part of this transformation. Maybe even own some of it.
Sustainable Growth
It is not light-heartedly that people say that by investing in a woman you invest in her community. When economically empowered, women’s allocation of resources differs significantly from their male counterparts, contributing to broader economic advancement. According to the World Bank, women tend to invest more in their families and communities, leading to a multiplier effect that supports education, health and poverty reduction – key components of sustainable development.
I spent the morning in a Women-led conference celebrating and promoting the voice of women in the future of Portugal. More than just talking, the conference finished with a groundbreaking manifesto detailing specific action items across 8 areas needing progress in the country.
“We need ambition and the belief that we can do big projects. We are not small.”
Isabel Neves
Different Perspectives
It is not new that diversity of thought is key to bringing new perspectives to business, driving innovation and creating jobs. I have seen this in teams of male and female, but also in teams that aggregate different backgrounds, different academic studies or different countries of origin. Importantly, the presence of women in leadership roles has also shown to promote a more inclusive culture, as well as more comprehensive solutions to corporate and public challenges. The diversity of thought is crucial for solving complex problems and for developing products and services that meet the needs of a wider segment of society.
If you want the data to back it up, a study by McKinsey revealed that companies in the top quartile for gender diversity on executive teams were 27% more likely to experience above-average profitability.
“Bottom line, the presence of women seems to diminish the problem of “pluralistic ignorance” —when individuals in a group underestimate the extent to which others may share their concerns. ”
Harvard Business Review
Leading with Empathy
Women in leadership roles are different leaders who bring to the table high levels of emotional intelligence, including empathy, making them stronger at connecting with key stakeholders, employees and customers. This connection often also leads to increased communication, conducive to higher employee satisfaction and improved customer loyalty.
Studies have consistently shown that empathy in leadership is closely linked to higher employee engagement. For example, research conducted by Catalyst found that employees with highly empathic senior leaders reported higher levels of creativity (61%) and engagement (76%) compared to those with less empathic senior leaders. This indicates a clear connection between a leader’s empathy and an employee’s feeling of being understood and valued, which in turn can foster an environment where innovation and commitment to work thrive.
“I think we all have empathy. We may not have enough courage to display it”
Maya Angelou
Greater Care
I am not coming at this with a fluffy topic, don’t worry. Women want to grow businesses that are profitable and yes, even make them rich. I see no big deal on that, especially as mentioned above, women wealth has a broader impact on their families and communities. But care here represents something different.
Care means risk management. Gender diversity on boards for example is associated with better risk management and corporate governance, according to Credit Suisse. Women’s approach to risk management often involves a more careful and comprehensive assessment of potential threats and opportunities, leading to a more stable and consistent performance over time, particularly in industries where volatility is a concern. It does not mean women are afraid, they just play out a broader set of risks. (Remember Lehman Brothers, not Sisters)
I get a lot of pitches from women entrepreneurs, and more often than not, they come with highly conservative scenarios and often with a short path to break even. It does not mean they are not ambitious, it means they are risk-aware in protecting their money and others.
Value on Impact
Women entrepreneurs are often solving a problem that affects a part of the population most investors are not a part of. In a world where women are about 15% of investors in US Venture Capital firms, it is not a surprise that the investors lack the expertise to invest in solutions that address the other half of the population.
By partnering with women investors and by investing in women-owned businesses, global businesses can emerge that address truly global solutions. Data from Pitchbook in 2019 indicates that companies founded solely by women garnered only 2.8% of the total capital invested in venture-backed startups. That is not to say women are creating less businesses – in fact, 42% of all businesses in the United States are women-owned, demonstrating a significant presence in the entrepreneurial landscape. These are not only Femtech businesses, be assured, they are businesses with a complex and comprehensive views on solving problems that affect large populations.
I have spent hours of training sessions dedicated to women, fixing the way we talk, position ourselves, work and put ourselves out there. They were all coming from a place of love I like to think. But some of the attributes you get trained to smoothen out, are attributes that make women a force to strengthen the current leadership circles. And to shake up some of them. My bet is on women.
Photo by Edge2Edge Media on Unsplash