Female entrepreneurs are outperforming their male colleagues in job creation internationally. So says a new study just published by EY. The results, based on a survey conducted among 2,673 business owners in 12 economies, are shared in a summary of the EY Global Job Creation survey 2016, entitled “Does disruption drive job creation?”
While secondary to the main findings of the report, which are that more entrepreneurs today (59%), compared to one year ago (47%), are planning to increase hiring, and that companies that are more innovative and/or more disruptive are even more bullish on growth, the survey found that:
the women entrepreneurs surveyed expect to increase the size of their workforces by 10.9%, a rate that is 31% higher than that of the men surveyed,
women were 10% more likely (43% versus 39%) to say they added more jobs last year than they anticipated, and
the women surveyed were actually 24% more likely than the men surveyed (6.2% compared to 5%) to be running $1B+ enterprises.
Fully 40% of those surveyed were women, 30% of respondents have been in business less than five years, and 30% are under 35. For all that, 43% employ more than 250 workers. A fascinating pool of entrepreneurs, and very interesting findings that bode well for the global economy.
Read the EY news post HERE to learn more about the study, and to download the free 20-page report.
At a recent event in their Washington DC headquarters, the Inter-American Development Bank’s Multilateral Investment Fund showcased the results of a new survey conducted among high-growth women entrepreneurs in Latin America and the Caribbean (LAC).
Undertaken in concert with Ernst & Young, the study, WEGRow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean, utilizes a blend of qualitative and quantitative methods, focuses on nine countries (Argentina, Brazil, Chile, Columbia, Costa Rica, Jamaica, Mexico, Peru, and Uruguay), and explores the issue of what makes high-growth women entrepreneurs tick. High-growth in this case means that the firms in question have grown by 20% or more for at least the past three years.
What did the study find? Among other things that:
the women are likely to come from entrepreneurial families,
they started with a growth intention from day one, and
these high-growth women entrepreneurs have strong support networks which allow them to shoulder the responsibility that a high-growth enterprise entails.
Recommendations for future action? Strengthening the entrepreneurial ecosystem to provide better support networks for these and other women, providing better access to capital, and promoting policies that can enable growth and provide better support for women to “balance” for the many roles they juggle. Just as important, perhaps – showcasing these women as role models, in order to make them less unique and increase community acceptance of women business owners who are not afraid to dream big.
This study comes on the heels of a ground-breaking effort, the WEVentureScope, published by the IADB-MIF last year. Muchas gracias, MIF!
For more about the report, including video commentary from some of the women entrepreneurs profiled in the report, visit: wegrow.fomin.org
Back in February of this year, the management consultancy Ernst & Young published a well-designed report, “Groundbreakers,” that synthesized and summarized the growing body of evidence that investing in the empowerment and inclusion of women can reap economic rewards. Focusing largely on women in corporate settings, the report made the point that diversity is “an equation for success” and pointed out the need to get beyond token inclusion to the adoption of diversity as a central tenet of leadership development and team-building.
In their latest report in what they are now calling their “Groundbreakers” series, Ernst & Young turns their attention to women’s entrepreneurship. “Scaling up: Why women-owned businesses can recharge the global economy” gathers up many sources familiar to we womenablers and again compiles an easy-on-the-eyes summary of key points, such as:
legal and cultural barriers currently set many women business owners on a lower growth trajectory,
access to markets, networks and capital are all challenges, and
education and business support often does not get women past the ABC’s of starting a business and on a path to thinking bigger.
What does the report suggest in the way of possible solutions to these challenges? More mentoring and roles models, programs to expand professional networks for women, and nurturing high-potential women business owners with coaching and other forms of personalized support – such as those offered by the ATHENA PowerLink mentoring program, Count Me In’s Make Mine a Million $ Business initiative, Goldman Sachs’ 10,000 Women initiative and Ernst & Young’s own “Winning Women” program launched last year.
The report ends with this call to arms:
“As it is used in sociology, the term ‘tipping point’ — popularized
by author Malcolm Gladwell in his bestselling book of that name —
describes the transformation that results when a movement
for change reaches the point where it becomes an inexorable
force. Gladwell calls it ‘the moment of critical mass, the threshold,
the boiling point.’ Women are at the threshold. As we emerge
from a historic economic downturn, a vital push is needed
to make women’s enterprises an unstoppable force for