 "Women, Vedica for women")
Ivanka Trump’s visit put a spotlight on the gender gap in the Indian workforce, reinforcing that India must unleash the entrepreneurial potential of women in order to move up the world economic order.
Entrepreneurs drive growth and innovation, and in 2016 they added US$ 4 billion in funding to the Indian economy. In 2017 alone more than 1,000 start-ups were launched in India, augmenting its position among the top three start up economies globally. Yet, the number of women heading start-ups is abysmally low, with an estimated 5 percent of funded ventures having women founders. India is also among the bottom five of 54 nations on an Index of Women Entrepreneurs.
Successful women founders inspire others, but it’s their impact as employers that makes the big difference. Research indicates that women are more likely than men to look beyond the gender bias - hiring, retaining and growing women - creating a virtuous cycle of inclusion and growth.
Gender bias is a key suppressor of their potential, and a complicated one to address due to its deep socio-cultural roots. There are other as important hurdles that are easier to overcome - inadequate access to capital, lack of women leaders in venture capital firms, and lack of support structures being three of them. Counteracting these requires a multi-pronged, collaborative approach by the ecosystem comprising government, businesses and VCs.
The government made an early start with initiatives enabling women to partake in the post liberalization boom of the early 1990s. The recent ‘Stand Up India’ scheme mandating each of the 1.25 lakh bank branches across India to provide loans between Rs 10 lakhs and Rs 1 crore to at least one-woman borrower for setting up a greenfield enterprise, provides a much-needed push.
Private investors need a similar focus. In the U.S. although women focused venture funds exist, women represent only 11 per cent of VC leadership. It’s a similar situation in India, which lacks women leaders with the power to make investment decisions.
Mentors play a crucial role in developing leaders. A Harvard Business Review article makes a compelling case for women co-opting the ‘Old Boys’ Club,’ as it discusses challenges including the idea that self-promotion is ‘unladylike’. Support networks set up and steered by experienced women leaders serve as the collaboration and coaching platforms that can help women become more aware of their options, establish the right connections, and overcome attitudinal barriers rooted in social conditioning.
As employers, large businesses can focus on hiring more women, and on developing women leaders - directly affecting the number of women with the skills, courage and financial strength to take the entrepreneurial plunge. They can take inspiration from SAP Labs which allows women employees to take a two-year sabbatical to try their hand at entrepreneurship. Enterprises can also drive change through their extensive supplier networks, by partnering with organizations such as SEWA to support local capacity building.
Country level investments in education are equally important. They bring more women into the workforce, and keep them there. According to research from Accenture, developing STEM skills, and continuous tech immersion help women build and maintain differentiating skills as they advance in their careers. In addition, ‘Digital Fluency’ or the knowledge of everyday technologies, helps them become more connected, realize new job opportunities and balance work with other priorities, like family.
Applying an economic lens to discuss women’s empowerment will undoubtedly boost women’s socio-economic conditions. We need to invest in women’s education and enable their entrepreneurial abilities urgently, because when women miss out, it’s India that loses.
The author is chairman and senior managing director, Accenture in India
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper
