"female entrepreneurship was at its highest in 2020 and 2021.”
A report has found that in India, women are in front when it comes to entrepreneurs.
LinkedIn partnered with World Economic Forum for the Global Gender Gap Report 2022.
It found that between 2016 and 2021, the number of women founding companies grew by 2.68x. Meanwhile, the number of male founders grew by 1.79x during the same period.
The report also noted that India has a disproportionately low representation of women in the workforce (18%).
It is inferred that there are more women entrepreneurs because there is a lack of opportunities for growth as employees.
Another piece of information that supports this argument is:
“The growth rate of female entrepreneurship was at its highest in 2020 and 2021.”
The Covid-19 pandemic was at its peak at this time and the corporate world was out of balance.
Ruchee Anand, senior director, India Talent and Learning Solutions, LinkedIn, said:
“Our new data is indicative of one thing: working women in India are being held back by more barriers in the workplace when compared to men.
“But despite the adversity, many women remain undeterred and continue to chart their own path by pivoting to entrepreneurship and building careers that allow them to work on their own terms with greater flexibility.
“We saw this, especially in the years of the pandemic (2020 and 2021) when women sheltered from a shrinking job market by starting their own businesses that also created opportunities for other women.”
As well as being underrepresented in leadership roles, the data also found that women are not being promoted internally to leadership in companies at the same rate as men, with men being 42% more likely to be promoted into leadership positions than women.
The research mentions that this could be a reason why women in leadership roles also increasingly lag behind their male counterparts in the senior stages of their careers, with the proportion of women in the workforce decreasing along the corporate ladder.
The report says in India, the representation of female leaders drops from 29% at the senior level to just 18% at the managerial level.
Despite the obstacles women face, the data also found some progress in terms of women being hired in leadership roles, with the number registering an 1.36x increase since 2015.
But despite the increase, women in leadership roles are still way behind the required percentage.