Women entrepreneurs are looking at a bright future in India's business scenario as more investors plan to invest in women-owned businesses in the coming days. Investing in women-led businesses tends to bring in more social and financial returns on investments. It is believed that businesses owned or led by women gain rapid momentum globally by providing a widespread talent pool and increase in productivity. Various research shows that investing in women entrepreneurs provides an opportunity to transform local and global markets.
Reasons Behind Investors Choosing to Invest in Women Entrepreneurs
Customers today have changed from worshipping men in leadership positions to encouraging businesses led by women who treat their employees fairly. While it is understandable why investors look for successful entrepreneurs to invest their money on, investing in women entrepreneurs is a long-term strategic move, with gender-smart investing now becoming a thing in the industry.
Investors have seen growing evidence that women-led startups and businesses are financially more successful than their male counterparts in the last few years. Women leaders help people identify better ways to meet their needs, and with their businesses, they come up with such solutions. Slowly but surely, women-led ventures are opening up more competitive opportunities in the industry, and they are emerging as winners, attracting the attention of customers.
Here is why investors in India are investing in women entrepreneurs:
- Emotional intelligence: It is a known fact that leaders with higher emotional intelligence can lead a team more effectively, which is the case with business scenarios too. Women are naturally empathetic and have higher emotional intelligence that transforms a working environment into a nurturing one.
When employees feel valued and validated, they perform well, in turn helping the companies they work for climb the ladders of success easily. The performance of employees matters in emerging startups, thus making women-led startups more successful in little time.
- Adaptable: When you are leading a startup, adaptability is extremely vital for the team leader. When they set their minds on a project, women entrepreneurs are resilient and will adapt according to the requirements. Women are also good at multi-tasking, which is a proven fact that makes it easier for them to dissect a business-related problem, find its root, and come up with solutions.
- Better retention rate: According to a study conducted by Boston Consulting Group, businesses owned and led by women generate 12% higher revenues annually, with a higher retention rate for their customers. They also use one-third of capital than male-led startups, which is a huge investment opportunity for investors in India to earn high ROI with less investment.
Takeaway
In most cases, women-led businesses are not motivated by money and profit percentage, allowing them to focus on problem-solving rather than looking for making quick money. Investing in women entrepreneurs is an intelligent decision that investors are making for long-term profit goals.