Here’s How Women Leadership Can Drive Innovation in Business

Remarkable changes in the contemporary business landscape have prompted businesses to integrate change management strategies that leverage the empowerment of women, often leading to an upsurge in profits. By embracing these impactful initiatives, businesses are acknowledging what numerous research papers have been echoing – that women-led businesses reflect enhanced financial performance, improved organisational climate, and increased corporate social responsibility. According to a 2021 report by the EdelGive Foundation, women-owned businesses are likely to witness a 90% growth over the next five years. Women entrepreneurs are paving the way for a remodelled business ecosystem that nurtures innovation and holistic progress for organisations. Hence, investing in women proves to be not only a sound business practice but also positions female entrepreneurs and leaders as catalysts for powerful business transformation.

The Global Leadership Forecast 2018 indicated that organisations with as little as 30% women in leadership are 1.4 times more likely to experience sustained profitable growth. This is further corroborated by a McKinsey study showing that companies in the top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians. It is clear that enhancing women’s economic participation translates into innovative ideas and stronger economies, indisputably leading to life improvement across the spectrum.

Women leaders and entrepreneurs cultivate a culture that builds, nurtures, and sustains innovation in business through various approaches:

Leading with Diversity

Coming from communities facing systemic intersectional challenges, women deeply understand the importance of diverse perspectives. They seek new opportunities by bringing in different voices and advocate for innovative approaches in business. According to research from Harvard Business Review, companies with high levels of diversity are 45% more likely to report growth in market share over the previous year and 70% more likely to report capturing new markets. Organisations owned and led by women prioritise representation and inclusion, recognising that gender equity in leadership is crucial for fostering diverse perspectives.

Being One with Customers

It’s widely recognised that women either serve as end-users or significantly influence consumption choices across various products. Women leaders offer invaluable insights for building products or services in a world largely designed with men as the default. Their ability to relate to end-users enables them to identify gaps and turn them into opportunities for organisations.

Driving Gender-centric Policies

Women leaders are well-positioned to incorporate a gender lens in business settings, allowing organisations to address human resources critically. By being “gender intentional” — defining strategies and measures with a focus on gender, setting targets, and measuring results on gender equality — companies can systematically work to overcome bias, under-representation, and homogeneity.

Being Multi-taskers With a High-risk Appetite

Most women possess ingrained multitasking skills and the ability to juggle various roles simultaneously. According to a survey by psychologists at the University of Hertfordshire, when given two tasks at the same time, women slowed by 61%, whereas men slowed by 77%. Women entrepreneurs leverage this ability and agility to efficiently manage dynamic businesses. Additionally, women leaders are known to be risk-takers, with almost 43% of women willing to take significant career advancement risks, according to a survey by KPMG. This potent combination of traits uniquely positions women entrepreneurs to envision innovative opportunities for their businesses.

Adaptability to Change & a Higher EQ

Women inherently possess a dynamic ability to adapt, pivot, and reshape. During the Covid-19 pandemic, countries praised for their prompt responses often had women leaders. This pattern of women standing tall and resilient in high-pressure, crisis situations is evident globally.

A survey conducted by Bain & Company, Google, and AWE Foundation of 350 women solopreneurs and small company owners in urban India noted that companies run by women founders were resilient and quicker to adapt to change during the Covid-19 onslaught. The results also highlighted a universally accepted fact: women have a higher emotional quotient (EQ). This ability to empathetically remodel strategies according to changing circumstances is an essential pillar for spurring innovation in organisations.

Women in India are driving a cultural revolution, establishing their businesses, leading organisations, and paving the way for generations of young women. Research consistently reaffirms that women entrepreneurs and leaders are more inclusive of diverse team members, work to strengthen diverse personalities, and foster innovation through collaboration. Increasing leadership roles for women is thus certain to have a holistic impact on driving innovation in businesses and boosting the economy.