The “Global Women Entrepreneur Leaders Scorecard” ranked those countries based on key criteria such as business environment, access to resources, leadership and rights, existing pipelines for entrepreneurship, potential women leaders in entrepreneurship and government practices. It also examined key indicators such as the percentage of women chief executives and number of women on company boards.
It is a fascinating report and despite the US topping the scorecard, it shows much remains to be done in America and elsewhere to improve the environment for female entrepreneurs.
For example, as compared to men, fewer women perceive they have the skills to start up a business or know an entrepreneur personally. And even though there are more women in leadership positions than in many other countries, only 5 per cent of chief executives and 20 per cent of executive boards are women. This also reflects itself in the ownership and management of high growth firms with only 15 per cent of businesses receiving venture capital having women on the executive team.
So what can be done to improve the current situation for female entrepreneurship?
The report suggests that this is not down to one group in society to make a difference but for a holistic approach at all levels from governments to individuals.
In terms of public and political support, one of the positive actions that can be taken is a gendered public policy procurement policy. Indeed, it is estimated that only 1 per cent of all public procurement contracts globally are awarded to women and this needs to change.
One way to do this is to follow the lead of the USA and South Africa through having procurement policy for government contracts that positively discriminate for women owned businesses. For example, the USA has a formally established annual target of 5 per cent of the total value of all government contracts for women-owned businesses whereas women-owned businesses in South Africa are given additional bid points when competing for government contracts.
Similarly, the private sector can leverage their buying power by making sure that there are more women-owned businesses in their supply chains. However, the main difference that businesses can make is by diversifying their leadership and ensuring that more women get the opportunity to apply for senior executive positions. This is already happening in several countries around the World - for example, the Catalyst Accord has asked Canada’s top listed companies to make a voluntary commitment to raise the overall proportion of board seats held by women in Canada to 25 per cent by 2017.
In terms of the media, only a quarter of global coverage features women as subjects in print, radio and television, with nearly half of this reinforcing gender stereotypes. This is despite the important role that can be played by the media industry in ensuring an increase in the coverage of high-impact female entrepreneurs.
One way this is being done in the UK is via the Women for Media UK database that compiles a list of female leaders who are available for media comment on current affairs and connects journalists to these experts with the aim of raising women’s profiles and visibility.
Individuals and organisations can also make a difference by being advocates for change in the way that others view female entrepreneurship.
For example, Barclays Bank launched the Barclays Women in Leadership Total Return Index (WIL) in 2014. To be included in the index, a company must, among other things, have a female CEO and/or at least 25 per cent female members on the board of directors.
Finally, female entrepreneurs themselves can help improve the environment for women in enterprise by using their position to raise awareness and acting as role models, mentors and investors.
They also need to work, either by themselves or with government and other agencies, to ensure that they are promoting female entrepreneurship in the way that makes a difference.
One great example of how this can be done positively is that of Sara Blakley, the billionaire owner of the shapewear business SPANX. She has not only started her own foundation to help female entrepreneurs but has established the ‘Give Women a Leg Up’ initiative to expand the client base for women entrepreneurs by showcases their businesses in SPANX catalogues.
Therefore, there are positive messages that emerge from this report on how women-owned businesses can be developed and backed in different ways.
Certainly, things are slowly changing here in Wales, with the WRU Board appointing their first ever women director and successful entrepreneurs such as Hayley Parsons and Helen Molyneux leading the way in male-dominated industries such as professional and financials services. However, much remains to be done to ensure that female entrepreneurs are fully encouraged and supported to make a real and lasting contribution to the growth of the Welsh economy, and many other economies around the World.