21 Women Owned Startup Business Statistics and Trends

Value of Women in Startups

Gender Disparities Among Women Entrepreneurs

Today’s society is concerned with equalizing the disparities which have previously existed and continue to exist between men and women for centuries. Society is concerned with the lack of opportunity available to women in particular especially in the business market.

Gender inequalities exist both in the Unites States and in other countries, yet the disparities present among entrepreneurs in the business industry are quite profound. Disparities and inequalities have always existed between females and males; however, females are beginning to equalize those disparities. Despite the numerous strives women have made over the past several decades women are still faced with certain obstacles and limitations.

Women are beginning to embark on this societal change especially when regarding female entrepreneurs. Women are no longer taking the back seat and allowing men to run companies, they are stepping up to the forefront and making their mark as executives and part of successful management teams.

Studies have shown that females are starting up their own businesses, which is revolutionizing the stereotypes associated with the gender inequality that males are, indeed, better entrepreneurs than females. Not only are females beginning to start-up more businesses their companies have exhibited successful returns on investment are deemed quite successful.

Since women possess natural leadership qualities, they are becoming much more valuable in start-up businesses. For example, private technology companies run by a female tend to do better financially thus earning a 35% higher return on investment. Technology based companies managed by females generate a 12% higher revenue than their male counterparts. This shows that females can, in fact, manage a company that is financially efficient. Hence, the wide gap which previously existed between male and female entrepreneurs is beginning to narrow at a very steady rate.

More people are pursuing college degrees. Moreover, even more women are earning advanced degrees as compared to men. Although women are pursuing higher education and obtaining bachelor degrees, master degrees, and other advanced degrees including doctorate-level degrees at a rate of almost 50%, females are not part of many management teams in Silicon Valley. Since women are earning approximately 50% of degrees, why are women still underrepresented among entrepreneurs?

Females in leadership roles affect the ultimate success of start-up companies. The percentage of women starting up technology companies is astronomically low, at about a 3% rate. The most common positions held by female executives were within sales and marketing thus accounting for 27% of the total population.

The median of female executives demonstrate that 7.1% of females have successful companies while 3.1% of females have unsuccessful companies. The success of companies run my female executives is more than double the rate of unsuccessful companies, which exemplifies the value women bring to a management team. Therefore having more females in executive positions improves the company’s chance of being successful.