More startup businesses are attracting interest from venture capitalists and investors worldwide. Many rightfully recognise the role that startup businesses play in the economy, especially ones that rely so much on technology. Yet, when it comes to gender, recent research indicates that approximately 4% of the UK’s fastest-growing tech startups are led by women. So why is this? It would be staggeringly shortsighted and dismissive to assume that women are not interested in entrepreneurship.
Software startups experience their fair share of hiccups along the way, and despite us successfully overcoming various stereotypical gender roles many still see the growing UK tech sector as a man’s world. What can we do to change this outdated perception? Let’s take a look at six key reasons why the UK tech industry needs more female-led startups.
1. Closing in on the gender pay gap
The gender pay gap is well documented and prevalently discussed. While the stats show that the gap has dramatically decreased in recent years, it still has a long way to go. However, increasing female representation at all levels in the UK tech industry can help challenge the perception that jobs are best suited to men.
Some women are hesitant to pursue leadership roles (particularly in the tech sector) because of a lack of role models for them. Actively promoting innovative and forward-thinking women into senior roles and celebrating the achievements of female leaders can collectively work to decrease this pay gap faster.
2. Encouraging greater representation in the industry
It’s great that many tech leaders are recognising the lack of female representation in the industry, but more needs to be done. When women occupy roles of prominence and influence, they can create even more opportunities for other women to succeed. Businesses led by women can succeed significantly and do so very quickly. But the lack of proper recognition of women has only stunted their career potential and the greater knock-on effects a thriving female-led business can have on the economy.
Only 26% of the 3 million people employed in the tech sector are women. Rightful recognition of female-led startups can be instrumental in attracting and retaining more women in the industry.
3. Evolving greater recognition and job satisfaction
Companies – particularly those in the top 50 employers for women in 2022 – have made strides in supporting women and helping them feel valued in their roles. Many of these companies are showing initiative in implementing policies that are important to women, such as parental leave, flexible working, maternal support, menopause and miscarriage assistance, and others. This, in turn, helps women to feel more secure and valued.
By attracting an influx of more women to strive towards long and prosperous careers in tech – influenced by their female leaders, entrepreneurs and role models – more companies will likely adopt similar practices.
4. Female-owned companies can generate more revenue
In today’s competitive world of business, the speed and legitimacy of results are increasingly important. There is growing evidence to suggest that female-founded businesses deliver better results financially than those founded by men.
Encouraging and supporting female business owners and founders to take their ideas and visions to market is only going to add fuel to this fire in the coming generations. Furthermore, there is another reason for female founders to step into the world of business…
5. Results attracts more outside investment
Investors and venture capitalists are always looking for successful, driven and motivated female entrepreneurs and business owners.
Women-owned businesses – backed by outside VC (venture capitalist) funds – achieved a 63% better return on investment than male-owned companies. But, ironically, many investors are crying out for more female founders to invest in.
There is a market trend that points to women-led businesses being driving forces in the UK tech sector and the greater economy as a whole. Companies, governments, investors and everybody in between must therefore work in collaboration to envision and create a pathway for more women to start businesses and take these ideas in new directions without fear of failure or intimidation.
6. The industry progresses
Starting a tech business – or any business for that matter – is never without risks. However, the tangible rewards a business owner can reap can be outstanding, not just from a personal and professional perspective, but from economic and social ones too.
The UK tech sector is in dire need of women to innovate and drive change in the industry, not just regarding its products and trends but for its greater worldwide perception. The more women that drive change in the market, the more likely the sector is to progress forward.
This is not an overnight change by any means. More leaders and creative thinkers need to inspire the next generation(s) of women to embrace this sector and, by extension, be integral to its change. While it’s never too late to foster a career move or start a business later in your career, those initial seeds can be sown from an early age, encouraging young girls to learn about technical subjects like IT, software, coding and cybersecurity.
Naturally, as businesses grow there will always be hiccups and bumps in the road. Particularly when it comes to tech or software startups, there is a plethora of information about the ‘right way’ to start and run a business and spearhead its growth. However, female leaders need to be confident enough to tackle that first hurdle and not be intimidated by these ‘growing pains’.
One small step for a leader can be a big step in progressing an industry in need of change.
