Despite efforts to improve gender equality in the workplace in the Asia-Pacific (APAC) region, progress toward gender parity continues to be uneven. At a time when uncertainty and challenges are affecting us all, the entrepreneurial gender gap should be front and center.
With plummeting economic activity, women are particularly vulnerable to layoffs and loss of livelihood.
Even before the pandemic, women’s participation in the labor market was already 26% lower than that of men — and as of September 2020, women’s employment was projected to be 19% more at risk than their male counterparts.
Although the onus to fix the wider problem sits firmly with governments and policymakers, there are actions businesses can take now to help bridge the gap and support women in the workforce.
To help better understand the factors behind the gap and to propose potential solutions, the Women Will initiative — a Google program supporting women’s economic potential through digital skills and community building — surveyed women in APAC, Latin America and Sub-Saharan Africa on the drivers and barriers they face in entrepreneurship.
The result is Advancing Women in Entrepreneurship, a global report exploring women’s views on starting a business, the factors affecting their ability to launch a successful venture, and the skills they value for getting ahead.
Here, we explore some of our findings, along with thought-starters on how individuals and organizations can make a difference to push toward closing the gender gap.
1. Look to sponsor networking or training opportunities
In our survey, less than half the women said they had access to mentors or supportive social groups. But that doesn’t mean they’re not eager to learn. In fact, 80% of both current and aspiring entrepreneurs said they are interested in learning and improving their self-confidence, basic business, money management, digital and marketing skills as well as enhance their social media experience.1
Cover business network membership and event fees for women. Subsidize the costs of technology and offer training on virtual tools because these types of events have become primarily virtual due to COVID-19. For example, Procter & Gamble created a program to support the development of women entrepreneurs in Singapore and APAC to provide training in management skills and other business support to women owners of small and medium-sized businesses.
Create or facilitate training courses or mentorship programs on small business financial literacy, self-confidence, and other skills such as marketing to help address the gender gaps in financial knowledge and confidence. For example, less than 10% of developers in China are women, with many facing problems advancing their careers. To address this, Google hosted women development sessions to empower and support women developers at the Google Developer Summit, the largest developer event in APAC.
2. Support positive perceptions of women — especially caregivers — in the workforce
Societal perceptions of women, especially those based on existing gender biases significantly reduce their participation in the labor market and entrepreneurial ecosystem. Women are often viewed as the primary person responsible for household chores and childcare, and mothers who choose to pursue full-time work are perceived unfavorably in some countries.
Businesses should be deliberate in building out inclusive marketing strategies and considering what internal and external-facing pledges or campaigns they can promote to help normalize the return of caregivers to the workforce and cultivate meaningful dialogue about gender equity.
In a small change that sends a bigger message, Japan Airlines scrapped the introduction, “ladies and gentlemen,” in favor of gender-neutral greetings — a commitment to not discriminate based on gender, sexual orientation, gender identity, or other personal attributes.
3. Commit to gender diversity in your vendor ecosystem or supply chain
Although over one-third of businesses globally are owned by women, it is estimated that only 1% of the total global procurement spend by large companies goes to women-owned businesses.2
To help improve this number, commit to increased spending in women-owned businesses in your organization’s supply chain. This could be a percentage of your total contract spend per year, or a percentage of all vendors your organization does business with. Not only is this a way to address economic inequality, but this initiative also financially invests in women-owned businesses to foster greater diversity in your local entrepreneurial community.
Unilever has committed to working with more businesses run by women and underrepresented groups to ensure its entire supply chain earns a living wage. By 2025, the company has said it will spend US$2.43 billion annually with suppliers owned and managed by women, underrepresented racial and ethnic groups, people with disabilities, and LGBTQI+ individuals. Additionally, the company will look to support its growth via a new supplier development program that provides access to skills, financing, and networking opportunities.
4. Offer flexible work arrangements and explore ways to mitigate work-life balance challenges for employees
The survey found that many women entrepreneurs have another job in addition to their own business. Across the 12 countries in our study, on average 44% of current women entrepreneurs say their venture is their secondary source of income.3
With this in mind, small steps can be made to offer flexible work arrangements to help ease the work-life balance pressures that women already face. By implementing and promoting work flexibility practices, your company could also be more attractive to new and existing employees.
In a world where many people’s working environments and schedules have changed, Google has introduced a new calendar feature to help businesses empower their employees to communicate their work availability, and encourage them to have flexible working hours. Adding to the existing feature of set working hours, Google is now introducing an improvement to its calendar service, to allow for “segmented” working hours, meaning multiple slots can be set aside each day — automatically declining meetings that occur during those hours.
5. Fund more women-owned businesses
Generally speaking, women have less access to external financing, and most women entrepreneurs in our study said they fund their ventures with personal savings.
Consider ways your organization can help close the gap on access to external funding, such as directing a committed amount of funding or grants each year towards women entrepreneurs and women-led venture capital firms. Think about involving women in decisions about programs to support or fund women-owned businesses.
At the same time, consider how your organization can provide financial support for women entrepreneurs who are in the informal economy or from low-income backgrounds. Without sufficient personal savings, connections to investors, or access to informal finance, it’s impossible for some of these women to meet the requirements for entering the formal economy, such as paying business registration, or notary fees.
In November 2020, Stacy’s Pita Chips released limited edition “Female Founder Finder” bags. The featured artwork was created by illustrator Libby VanderPloeg, and each bag had a QR code that when scanned, directed people to women-founded businesses nearby. The Female Founder directory is also searchable online, and features over 13,000 women-owned businesses.