Truthfully, workplaces have become more diverse in 2022, but there's still a long way to go. Even now, women in many countries have been systemically excluded from the labor market. In addition, the opportunities for professional growth and development have also been limited. After all, we don't see many women in leadership roles. From the wealthiest man in the world, Elon Musk, to the most prominent entrepreneur, Jeff Bezos – it is a male-centric world.
Despite the persistent gender stereotypes, women have made their place in a male-dominant world. 'Entrepreneurship' has been the answer for millions of women who want to make their place in the corporate world. Women have turned their startups into successful multinational organizations with impeccable leadership qualities. In addition to technical skills, they possess soft skills such as empathy, honesty, and collaboration that keep teams together.
Not only this, but women are also incredible negotiators. Whether it is getting the best price of raw materials from a supplier or settling repayment terms with the bank – women entrepreneurs negotiate the best deal. If you want to learn more about this, have a look below. Here we are highlighting seven reasons why women-led businesses are more successful.
1. Better Company Culture
Women have been super successful in creating a positive company culture. The Journal of Organizational Behavior found that teams led by women were more open to learning and collaboration. After all, female entrepreneurs create a purpose-driven business culture. For instance, they offer venture capitalists and shareholders hefty financial benefits. Likewise, they promote a healthy work-life balance for their workforce. They ensure all workers have access to childcare services, keeping employees' personal lives in mind. More importantly, they also give their workforce professional development and growth opportunities. Since they're aware of the significance and benefits of pursuing higher online education, they encourage workers to follow suit.
Most of them enroll in online MBA programs since they're manageable for corporate employees while also proving beneficial for their career advancement prospects. Building a learning and development environment, women entrepreneurs urge employees to pursue business education to become more apt in the corporate world. This company culture improves job satisfaction as employees enjoy working under a genuinely caring boss. It directly impacts their performance, the organization's KPIs, and success.
2. Encourage Honest Behavior
By nature, women are more honest than men in life and business, according to WE Forum research. It also states that women are more inclined towards business ethics. Similarly, women are also more talkative than men; hence, they are less restrained when expressing their thoughts. They don't hesitate in verbalizing their suggestions, making it easy to communicate with the team. Furthermore, women own up to their mistakes and shortcomings. They aren't afraid of sharing their failures and encourage employees to do the same.
Women's honesty makes it easier for them to ask for help, which is one way of avoiding mistakes. In addition, they remain honest with business practices. Besides having ethical policies, they only indulge in fair dealing to prevent the conflict of interest. This characteristic makes them better equipped to run a business. Moreover, having an honest leader won't be anything less than a role model for employees, allowing them to adopt similar practices.
3. Women are Emotionally Intelligent
Undoubtedly, women are more empathetic than men. That's because they can assess the employees' non-verbal cues and body language. It allows them to understand how the employees feel about their decision and what the team prefers. Likewise, they show a significant consideration for all stakeholders the business interacts with – suppliers, customers, partners, etc. After all, they believe in maintaining camaraderie and treating people with respect.
Having an emotionally intelligent leader allows employees to discuss their problems without hesitation. Similarly, the other key stakeholders can reach out to their leaders and discuss matters of concern. In addition to reducing employee turnover, this helps women entrepreneurs become aware of things happening around them. In simple words, women value relationships, and they leverage these relationships to advance the business.
4. Enhanced Decision-Making
When it comes to making decisions for the business, entrepreneurs have to expose their company to many risks. Sometimes, there is a risk of financial loss, whereas, at times, certain activities can create reputational risks. Surprisingly, women tend to second guess themselves. Every decision they make accounts for all the what-ifs, ultimately reducing risk exposure. They assess the situation first to determine whether the business can take a risk.
Moreover, women entrepreneurs conduct a detailed cost-benefit analysis of every decision. They weigh the pros and cons instead of betting all money into something super risky. This way, they can save the company from taking any miscalculated risks and making wrong decisions. They are more realistic about the dangers ahead and account for them beforehand.
However, this doesn't mean women are afraid of taking risks. Instead of chasing every opportunity available, women leaders choose an appropriate course of action. They critically analyze the opportunities that will bring a maximum return for the business with the lowest risk exposure.
5. Women have a Long-Term View
For many entrepreneurs, the most crucial thing is to grow the business as quickly as possible. They get caught in the short-term goals, losing sight of the bigger picture. Fortunately, that's not the case with women. Women believe in investing in sustainable growth that generates consistent revenue and keeps the doors open for investment. For instance, they reinvest profits into the business alongside distributing them among shareholders.
These long-term strategies increase profitability and save the business from taking debt. After all, the profits fund asset purchases instead of loans. This focus on long-term planning keeps the company afloat and secures its going concern.
6. Promote Collaboration and Teamwork
In today's era, where connecting and engaging with customers are core pillars of success, women have a distinct advantage over men. They like to work together in teams and don't hesitate to get input from others. They understand that having more ideas and suggestions can add value and develop something intuitive. Hence, they promote collaboration and teamwork at the workplace, giving autonomy to employees.
Firstly, they build a common vision shared by all the employees to ensure everyone is on the same page. Being aware of the core values makes the staff feel more responsible, encouraging them to work hard. Second, women entrepreneurs are more willing to accept different points of view and suggestions. Thus, one could say that women's leadership makes companies more democratic and inclusive to everyone involved.
7. Women are More Resilient
The matter of fact is that both men and women face discrimination at some point in time. Unfortunately, women experience unfair treatment more often. Some face undetectable prejudices from lenders, whereas many think they can take advantage of women because they don't know much. Instead of letting these things bring them down and break their spirit, they take it as an excuse to do better and succeed. Their resilient behavior allows them to thrive and climb the stairs of success.
Moreover, a resilient attitude goes a long way in achieving business goals. Women entrepreneurs negotiate with the suppliers until they agree to the given terms and conditions. Likewise, they know how to turn the odds in their favor through patience and consistency. In addition, they can deliver different point-of-views to problem-solving, allowing each stakeholder to arrive at a viable decision.
Despite the insistent challenges, women continue to persevere in the business sector. They are running successful businesses with advanced knowledge, honesty, and resilience. They also have incredible people skills that make employees feel included and valued. Likewise, women adopt a long-term view that ensures business survival and fosters decision-making. Hence, one could say; women of today aren't only homemakers but also moneymakers.