Famous women entrepreneurs in India

In India, women comprise about 30 percent of corporate senior management positions, which is notably higher than the global average (24 percent). But in the overall workforce, India is one of the worst countries in the world — 113th out of 135 — when it comes to the gender gap. And women entrepreneurs constitute only 10 percent of the total number of entrepreneurs in the country.

We believe that women entrepreneurs have an edge over male entrepreneurs. Edges matter to investors. And the numbers back this up outside India. I believe that this is also true in India.

One of the most obvious reasons to invest in women leaders in India is that women control the vast majority of household spending. So unless you are a business that is focussed mostly on men, women are more likely to better understand customer perspective. Another is that women are often better at building long-term relationships than men. Lasting relationships benefit a business tremendously, as only so much can be achieved without trust†with employees, customers, suppliers, shareholders, government, etc.

There is also the factor of having diversity in a leadership team. Multiple studies, including Kellogg’s Better Decisions Through Diversity, argue that “socially different group members do more than simply introduce new viewpoints or approaches†diverse groups outperformed more homogeneous groups not because of an influx of new ideas, but because diversity triggered more careful information processing that is absent in homogeneous groups”. In a world of information overload, having better information analysis capacity and doing smarter things with the information you have will provide a competitive edge.

A Dow Jones study called Women at the Wheel: Do Female Executives Drive Startup Success? offers some interesting conclusions:

• The overall median proportion of female executives in successful companies is 7.1 percent, compared to 3.1 percent at unsuccessful companies.
• A company’s odds of success increase with female executives at the VP and director levels.
• Statistically significant evidence shows that there is dependence between a company having female executives and its success.

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