According to a study by IBEF (India Brand Equity Foundation), India has 432 million working-age women, and as many as 13.5 million to 15.7 million of those firms are owned by women, providing more than 22 million individuals with direct employment. This data underlines the fact that women entrepreneurs are considerably rising in India, which in turn is substantially impacting the social and economic demography of the nation. Whether it is electronic, automobile, technology, or e-commerce, modern-day women have not left any stone unturned, making significant contributions in nearly all industries.
Recognizing the efforts of new-age women entrepreneurs and promoting their growth for better development of the country, the Government of India has also stepped up and introduced WEP (Women Entrepreneurship Platform). In collaboration with NITI Aayog, WEP aims to promote a favourable ecosystem for women's entrepreneurship in India. The time when women needed the support of a male counterpart to launch new endeavours is long behind. The self-sufficient women of today are making better business owners and advancing significantly in every sector they set foot in.
Factors contributing to the faster growth of women-run businesses
Better business performance: Women are known to be risk-takers, which is one of the main reasons why businesses led by them are thought to operate very efficiently. As per a survey by KPMG, 43% of women are often willing to take more risks. This, as a result, puts them in an ideal position to envision better opportunities and benefit from them in the long run. In addition, the diversity of viewpoints that women-led workforces cultivate enables the associated organization to profit from their uniquely designed strategies with a motive to produce measurable gains. According to a survey by Bain & Company, women-driven start-ups have a 35% higher return on investment than start-ups run by men. This data emphasizes how women are better equipped in terms of knowledge and understanding needed to kickstart a venture which results in higher returns and improved company performance over the years.
Improved culture: Improved communication, collaboration, and room for both personal and professional growth is what makes a positive company culture that fosters better employee retention. A study by the Journal of Organizational Behaviour found that women-led teams were more cooperative, communicative, and open to learning, whether they were managed in-person or remotely. Consequently, this leads to better job satisfaction amongst employees and enhances their overall working experience as well.
Superior multitaskers: Acting in multiple roles at the same time and catering to various priorities simultaneously is what makes women better multitaskers. As a result, when exposed to numerous business responsibilities and challenging environments, women are known to adapt and manage better, yielding more positive outcomes than men. According to a survey by Bain & Company, Google, and the AWE Foundation, businesses founded by women in India were robust and quick to adapt.
Shaping the future of India!
From a time when owning a bank account was considered to be a major milestone for women to an era of women entrepreneurs dominating the business ecosystem, the role of women has substantially evolved over the years. This revolutionary shift clearly demonstrates the power and potential of new-age women.
Given the noteworthy contributions that women are making in the present-day business world, it is safe to anticipate the future will witness a rise in women-led organizations. According to IBEF, women-owned firms are predicted to increase by 90% over the next five years. As a result, this could be a game changer for the country's future, thereby, positively improving its economic picture.
The article is authored by Nidhi Singh, Co Founder Samosa Singh
