A study carried out by the Boston Consulting Group and MassChallenge, a network of accelerators, reveals that entrepreneurial projects led by women generate higher income and are more profitable.
The report took into account a analysis of 350 Silicon Valley startups, from which it has been possible to clarify that in the last 5 years, women have received 56% less funding for their entrepreneurial projects than men. However, despite lower investment, female entrepreneurial projects have been able to generate up to 10% more profits.Companies created by women received 935,000 dollars in investment, compared to 2.12 million dollars accumulated by companies founded by the male gender. Even so, data indicate that women-led companies generated $730,000, 10% of the $662,000 that male-led companies managed to generate.In this regard, Andrés Anavi, Senior Partner of the Boston Consulting Group (BCG) explains that “there is a double return for every dollar invested in a female venture.” But then, if we observe this trend of profitability of female companies, Why do we continue to invest more in men's entrepreneurial projects? The Report also explains why people are more committed to funding men's initiatives. Among the reasons stated, the time to present the company to investors stands out. When investors question the presentations presented by women entrepreneurs, women, instead of refuting the questions posed by investors, take on a more comprehensive and self-critical role, taking as feedback this questioning from investors. On the other hand, women entrepreneurs tend to make much more realistic and conservative assumptions in their presentations compared to the riskier financial estimates and projections usually presented by men. These more ambitious data, in terms of financial profits, for investors would also play a central role in decision-making and investment betting. The report concludes with a more promising vision towards equity between investments and profitability of female and male entrepreneurial projects. Until now, as there is less economic support for women's projects, there is less competition, but this trend is expected to change in the very near future.Source: Boston Consulting Group
