The rise of the female founder - why sisterhood works
HELP-Recruitment is proud to be a female-founded business!
In recent years there has been a significant increase in the number of women starting their own businesses. This is due to a number of reasons including the availability of venture capital making it more accessible, the rise of the sharing economy, and acceptance of female entrepreneurship. It has been proven that women-owned businesses are typically more efficient and profitable than their male counterparts.
The business case for funding female founders is simple
Female founders outperform their male counterparts. A recent study from Boston Consulting Group evaluated 350 companies that had been part of the MassChallenge program. The study revealed that, for every dollar of investment raised, female-run start-ups generated 78 cents in revenue, whereas male-run start-ups generated only 31 cents. As we might expect, women outperformed their male counterparts despite raising less money ($935K versus $2.12M).
What the data says
This data is consistent with several other studies. Data collected by First Round Capital, for example, found that the female-founder companies it had funded performed 63% better than the all-male founding teams it had funded. Adding even more credence, research from the Ewing Marion Kauffman Foundation found that women-led teams generate a 35% higher return on investment than all-male teams.
According to research by Illuminate Ventures, these motivations differ among males and females. Specifically, males are nearly eight times more likely to be motivated by financial gain. 15% of male entrepreneurs are motivated to start companies for financial gain compared to only 2% of female entrepreneurs. Scores of research confirm that money is not the most effective motivator for starting a business.
Women often possess a collaborative leadership style, emphasizing the importance of teamwork and inclusivity. This can lead to a more cooperative and cohesive work environment, enhancing productivity and creativity. These tools are all key ingredients to being successful leaders within our much-loved hospitality events & leisure industry.
Hayley O’shea