As a woman-led company, we acknowledge the importance of the gender lens.
Funding women-led businesses not only have a huge positive impact, but it’s also a great alpha strategy! The evidence is in, and it’s obvious that conventional investors aren’t quite as quantitative, and numbers oriented as we give them credit for being. Investors who recognize the potential of women-led businesses and funds to generate strong financial returns while making a positive impact on society have an advantage over those who are still holding on to outdated notions of gender and profitability.
Numerous studies indicate a significant relationship between gender and company success. According to research, women who oversee businesses and financial portfolios typically outperform their male counterparts both locally and globally. Even though this “woman impact” is commonly known, the research community has not yet committed itself to explaining the success of women lead businesses. Millennials were among the first to understand that investing in women and diverse teams have outperformed across industries, size, and stage of firms since they were among the early adopters of impact investing in general and integrating “gender lens” tactics in particular.
According to a 2018 analysis by Morgan Stanley, there is a $4.4 trillion market potential that is being missed by not investing in women- and minority-owned firms.
Gender lenses as “Woman Effect”
A failure to explain the “woman effect” compellingly and intuitively may explain some of the differences between the actual and perceived performance of female leaders.
Although this effect is strong in boosting operational profitability and portfolio returns, the link between gender and company performance is still widely undefined. Numerous studies indicate a significant relationship between gender and company success. This discovery was pioneered in the last ten years by McKinsey’s “Women Matter” research, which most prominently shows that more management participation by women increases a company’s bottom line.
The conclusion is strong and startling: One of the several studies on the subject reveals that 15 significant female-led businesses had a return of over 50% in 2010, as opposed to an S&P average increase of 25%. In China, businesses operated by women were on average 8% more profitable than those controlled by men. In a recent analysis, Rothstein Kass found that compared to a worldwide index return of just 3%, an index of women-led funds generated a net return of 9%.
To fully realize this benefit, a thorough investigation of the cognitive mechanisms behind the “woman effect” is necessary. Strong decision-makers are a differentiator for female company executives. When a source of competitive advantage is discovered via research, strong markets often reflect the new information. For instance, fund allocations changed as a result of analysts’ reports that university endowments performed better when they concentrated on longer-term asset classes.
Women are more synergistic and search for chances that combine their financial goals with their ideals, whereas males have historically been better at compartmentalizing, separating finances from personal values and conventional charity initiatives. Because of this, women are far more inclined to look for investments (both public and private) that uphold their beliefs and produce the greater returns that diversity produces, such as supporting underappreciated women-led businesses. Young men and young women are both emphasizing an impact lens on their investments; therefore, their investment theses are starting to mirror each other more closely than in any previous generation when money passes intergenerationally from patriarch or matriarch to the next generation.
We think that building a network will eventually assist to widen the pool of alternatives available for women-owned or led enterprises. We also know the importance of helping women who have innovative ideas but are shut out of the economic environment. Empowering women in business is now easier than ever before.
In addition to acknowledging the importance of gender lenses, as a woman-led company, we also prioritize the following values:
- Diversity and Inclusion: We understand that diversity is not just about gender but encompasses different backgrounds, cultures, and perspectives. We believe that fostering an inclusive workplace is not only the right thing to do but also leads to better decision-making, innovation, and overall business success.
- Empowerment: We are committed to empowering women in all aspects of our business. This includes empowering our employees, partners, and customers to reach their full potential, as well as advocating for policies and initiatives that empower women at the societal level.
- Collaboration: We believe that collaboration is key to achieving our goals. We work with other organizations, including those that are not women-led, to create positive change in our communities and industries.
- Integrity: We hold ourselves accountable to the highest standards of integrity and ethical behavior. We believe that honesty and transparency are critical to building trust with our stakeholders.
- Continuous Learning: We are committed to continuous learning and growth, both as individuals and as an organization. We seek out opportunities to learn from others, whether through mentorship, training, or partnerships.
By upholding these values, we strive to create a business that not only benefits our stakeholders but also contributes to a more equitable and just world.
For more information about our company values contact us.
