Women-led businesses have affirmed their prominent role in Vietnam startup ecosystem.
Female-founder startups generate 63% higher return on investment than all-male founding teams. Women-led teams earn twice as much as revenue per unit of dollar than all-male teams.
This data was revealed by Ms. Tu Thu Hien — Founder/CEO of Women’s Initiative For Startup And Entrepreneurship Social Joint Stock Company, at “Catalyzing Women’s Entrepreneurship: Creating a Gender-Responsive Entrepreneurial Ecosystem’’. This project was conducted by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) in collaboration with the Ministry of Planning and Investment of Vietnam on 17/2/2020 in Hanoi.
Ms. Hien said that women have enormous potential in business management and operation, but this hasn’t been realized. According to datas collected by the World Economic Forum, if the gender gap is eliminated, the nominal GDP and GPP will increase by 3–6% and 15–17% respectively.
Focusing on the micro index, WEF’s research tells us that startups with gender-diverse executive teams are likely to perform 15% better than all-men companies. The return on equity of the women-owned companies is 63% higher than that by man. Moreover, women-led teams work more efficiently, function more cost-effectively and could generate twice as much as revenue per unit of dollar than all-male teams.
According to Vietnam Chamber of Commerce and Industry (VCCI), Vietnam has the highest proportion of women-led business in the Asia-Pacific region, equivalent to 25%. In short, 1 of every 4 Vietnam businesses are owned by women.
In the past 2 decades, Vietnam has become one of the few countries to maintain the female labour-force participation rates in the world, equivalent to above 70%.
However, according to Ms. Hien, female entrepreneurs in Vietnam have to face a number of challenges and obstacles to engage in entrepreneurial activity. In fact, the gender gap in Vietnam, which has dropped 55 years in 2019, is now 257 years,
Besides, attitudes against female leaders in the workplace are still existing in some cases, which is a major stumbling block for women-led startups. Investing in female founders is not as high as that in men, due to the lack of confidence from men-lead investment funds.
In addition, there are some barriers (eg. family responsibilities, work-life balance, ) keeping women away from achieving leadership positions in the workplace and thus make them difficult in job advancement.
The workshop “Catalyzing Women’s Entrepreneurship — Creating a Gender-Responsive Entrepreneurial Ecosystem” discussed about 3 topics: Enabling environment for women entrepreneurship; Enabling role of digital technologies to increase access of finance for women entrepreneurs, Levering the power of ICT for women entrepreneurs.
Curated from Doanhnhantrevn.vn
Link in Vietnamese: https://doanhnhantrevn.vn/dau-tu-vao-start-up-do-phu-nu-lam-chu-dat-hieu-qua-63-so-voi-nam-gioi-175070.html
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