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We need more women entrepreneurs. As president of a bank, being outnumbered by Y chromosomes in a conference room is an all too familiar experience for me. However, unlike the traditional male-dominated financial sector, are other sectors – such as technology startups – more successful in promoting equal opportunities?
It is not so simple. Worldwide, leadership in start-up companies remains largely prohibited to women. For example, according to some estimates, they represent only 10% of entrepreneurs on the Internet.
Regional bright spot for women business leaders
Some of the most positive numbers, however, are those of the Middle East: it has been calculated that one-third or more of the technology entrepreneurs here are women, which is a larger share than in Silicon Valley. In the UAE alone, more than 30 per cent of businesses created and run by women earn more than $ 100,000. This compares to only 13% in the United States.
The region is also home to the largest proportion of women entrepreneurs, sole owners of their business. They represent 40% of Lebanese women entrepreneurs; in Bahrain, this figure is 60%.
Overall, the annual growth in the number of startups in the Middle East over the last three years has been estimated at 46.2% – a quarter of these new businesses being created by women.
Good for the economy, good for equality
These figures are without a doubt promising indicators of gender equality. They underscore the private sector's ability to bring about profound changes in the real economy. After all, while every new business is helping to create jobs, more women-owned businesses would help balance the workforce, which – especially in the Middle East – remains far from divided into 50:50. More and more women entrepreneurs will serve as role models for girls and girls, gradually reducing social pressures on working women.
More than that, of course, it will put money in their pockets, making them less dependent on their husbands and their families and allowing them to contribute more actively to the local economy.
Overall, the positive effects on employment and economic development could be considerable. Some believe that if women continue to enter the labor market at the current rate, they could add some $ 600 billion to regional GDP over the next decade, which would increase by over 47%.
Finance must help maintain momentum
The challenges remain however. Last year, nearly 70% of start-up businesses run by women in the Middle East were denied funding. Women entrepreneurs need access to finance if they want to unleash the potential of their businesses and in doing so, encourage other women entrepreneurs to become successful.
We need a change in the mentality of the financial sector. A woman can know that she can run a profitable business. his company and his colleagues may know it too. But investors and banks – who hold the keys to financing that will allow their business to grow and prosper – need to do more to open up to this idea. We also need the banking sector so that financial inclusion continues to grow in the Middle East.
In this part of the world, women remain seriously under-served by the financial sector. they are already overrepresented among the "unbanked" world population (those who do not have access to basic financial services). Without sustained progress on financial inclusion, women risk losing the growth potential of the region.
The promising steps taken in the Middle East are essential to enhance the influence, respect and power of women in the region. It is clear that women find a way to gain equality, both in boardrooms and at home. But the financial sector must do its part and do more to support such progress.
The author is chairman of Hinduja Bank, chairman of Hinduja Foundation US, co-chairman and director of Hinduja Global Solutions. The opinions expressed are his own and do not reflect the policy of the newspaper.
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