Female-led firms are more successful in comparison to those with male leaders. No, there is no male v/s female competition to determine who is better. But the claims are something that the data suggests. As per House of Commons research, female-led firms outperform those dominated by men. The research states that women should play a major role in the UK’s post-pandemic economic recovery.
Anneliese Dodds accused the government of not paying heed to women’s needs during the coronavirus pandemic and side-lining them in recovery plans.
“When you’ve got more engagement from women when women are in the driving seat to the extent they should be, it makes for far more successful businesses,” she said. “Our commitment is to consider women’s concerns and other equality issues from the start. The problem with the current government is they’re not even tacking women’s concerns on at the end, they’re not considering them at all.”
Female-led SEMs generate £85 billion in economic activity
The study was published days before International Women’s Day. The data collected from the House of Commons library cited a McKinsey study. The study found institutions in the top quartile for gender diversity on executive teams were 25% more likely to perform above average. Moreover, companies with more than 30% female CEOs have a higher chance of outperforming companies with fewer female leaders.
The survey also establishes that female-led SMEs generate £85 billion in economic activity. According to a Beis study, women make up only 16% of small business employers and one out of every three entrepreneurs. According to the Fawcett Society’s Sex and Power report 2022; just eight women, none of them are women of color, are employed as CEOs in the FSTE 100. Women occupy only 14% of executive directorships and 38% of all directorships.
Further analysis implies that women have less access to finance and business loans; with women accounting for only 15% of bank financing applications and 22% of new primary business bank account openings. New global data from gender equity researcher Equileap, shows that in the UK, women make up only a fifth (20%) of executive team members, 13 companies (6%) have a female CEO, and 27 companies (13%) have a female CFO. NatWest is the only company with both a female CEO and CFO.