As we enter the second half of the 2020s, a new economy is unfolding and women are leading the way forward. In fact, female entrepreneurs and leaders are reshaping the economic landscape. And they’re replacing many traditional corporate approaches with ones that feel more intuitive — and are much-needed.
This isn’t to suggest that women haven’t had a hand in the economy until recently. For generations, they’ve been drivers of commerce and industry. (Organizations like the Female Founder Collective have given a huge assist along the way.) The difference now is that their roles have shifted more into the spotlight as we’re seeing more female CEOs, board chairs, and founders.
Indeed, female leadership is growing at a phenomenal rate. Almost four out of 10 companies are owned by women. Plus, women are outpacing men when it comes to the financial performance of their ventures.
What’s particularly remarkable (and inspiring) about the momentum behind the surge in female leadership is that they’re changing the conventional playbook — and they’re succeeding.
For instance, studies on women-led businesses have discovered that women generally prioritize more than just financial gain. Certainly, profitability remains top of mind; that’s to be expected. Nevertheless, women in positions of power are focusing their attention on being values-based leaders, not just bottom-line visionaries. Accordingly, they’re investing time, energy, and funds into ensuring their companies make a societal impact.
How are women commingling a broader sense of business purpose with performance, and thereby changing the face of modern corporate life? They’re putting several overarching mantras into practice.
1. More minds are better than one
Women who have risen through the ranks have often faced unique challenges, including gender and age bias. But instead of making future women leaders go through the same struggles, when these women start their own companies, they’re making themselves available as mentors, guides, and coaches. Additionally, they’re developing collaborative relationships with their peers so they can continue to grow and learn.
For instance, many women are joining groups like BrainTrust where they can maximize the potential of collective intelligence. The BrainTrust model of membership involves assigning their female members to incubator-style “Vault” groups. Each Vault is composed of around seven women who share experiences and expertise in safe, high-impact, and results-driven meetings. Vaults are meant to help members grow faster than they might alone toward the $1 million revenue milestone and beyond. And it’s working. According to BrainTrust, their members saw an average increase in revenue of 53% last year.
Although networking organizations have been a part of the corporate fabric for generations, women-led associations like BrainTrust are set up to drive accountability and prompt better decision-making and skills building. In turn, this helps women confidently move forward, knowing that other women see them as allies and confidants, not competitors.
2. Diversity in business extends beyond talent acquisition
Diversity is frequently associated with sourcing and hiring talent. And women excel at this type of diversity. According to one survey, 89% of women-owned businesses actively brought diversity into their hiring processes. Yet women entrepreneurs, CEOs, and executives aren’t limiting diversity to the human resources realm. On the contrary, they’re looking for other opportunities to diversify throughout their organizations.
An example is their penchant for purchasing from minority-owned or historically underrepresented business suppliers. That’s huge, given that supplier diversity programs are in a difficult state due to changing government proposals and regulations (at least in the United States).
Women are exploring other ways to promote belonging and accessibility, too. Take the case of one CEO living outside North America. She was looking for employees and decided to move her global company to a specific neighborhood in Central America to enable the workers she wanted to easily join her team. Hers wasn’t just an innovative measure; it was potentially life-changing for the people and communities she touched.
3. Philanthropic generosity spills over into social returns
Scientific research indicates that women are more philanthropic than men in terms of their amount and frequency of giving. When they’re in leadership positions, they double down on this gender-based trend by reinvesting in programs across their communities, as well as in corporate initiatives and benefits like paid volunteer days.
By elevating the importance of charity in the workplace, women are strengthening the infrastructure, education, marketing, and other entities that support their businesses and their employees. While the outcome of charity may not be immediately recognizable, it has meaning “down the road”.
Build-a-Bear is a prime case study of how a business built by women can use charitable giving to make positive waves. Thanks to its Build-a-Bear Foundation, the company has been able to help children develop their reading capabilities, feel comforted and secure while in difficult situations, and gain equitable access to educational materials. The results might not be visible immediately, but the children who are supported by the generosity of Build-a-Bear are more likely to become productive members of their communities — and perhaps continue passing along the kindness to others.
The framework for the next-gen economy is coming together, one piece at a time. As it does, women will continue to add their mark to its structure.