Why more women in business leadership matters

In this blog, we share the importance of female leadership in firms supported by an Oxfam business development programme in their decent work environments and gender-balance workforces.

The Oxfam Novib’s impact SME development programme supports impact-driven enterprises globally through capacity building, access to finance and ecosystem development support. The programme collects impact measurement data from 460 SMEs that we provide business support to in Nigeria, Kenya, Uganda, Egypt, Cambodia, Vietnam and Pakistan.

Analysis shows that female-owned businesses are more likely to hire women. We also found that businesses with more women in senior management are more likely to provide decent work policies to staff while ultimately attracting more women to join such organisations.  

These findings are confirmed by the story of Olufunto Boroffice, the founder and CEO of Chanja Datti, a waste recycling company leading Nigeria’s green-revolution, which inspires us on how women in business leadership can drive positive work policies that attract and benefit women and the environment.

Female-owned businesses are likely to have more female staff

“We have more than 200 staff members and 67% of them are women – especially illiterate women. 50% of our senior management leadership are women. Besides driving environmental sustainability through plastic recycling, we are keen on improving the lives of female employees who are an integral part of our organisation” said Olufunto.

Oxfam Novib’s impact evaluation found that female entrepreneurs are more likely to recruit female candidates, which can help to create a more gender-balanced workforce. Likewise, companies with more women in the senior management positions are associated with more women in their staff.

In practice, we also see that female-owned businesses can serve as role models and mentors for other women in the industry. When women see other women succeeding as entrepreneurs and business leaders, it can help to break down stereotypes and inspire them to pursue their own career goals.

Organisations with more women in Senior Management positions are more likely to provide decent work policies

Companies with a higher percentage of women in senior management roles are more likely to have policies and practices that support a decent work environment, particularly sick leave, maternity or paternity leave, minimum wage, contributing financially to pensions for employees, and paying taxes over the salaries of employees, as showed Oxfam Novib’s impact evaluation. This may be because women in leadership positions are more likely to provide a more inclusive work environment and may be more attuned to the diverse challenges and barriers that employees face in the workplace.

Olufunto explains from her experience. “At Chanja Datti, we have initiated two major policies amongst others - Bottles for Books and Women Recyclers Empowerment Initiatives to enhance the livelihoods of our staff. Through Bottle for Books, we cater for the educational needs of children of women who work with us. Prior to joining our organisation, most of their children dropped out of school. To ensure that no child is left behind in accessing basic education, this initiative was introduced where people donate used plastic bottles to pay the school fee of a child. The funds are made accessible to these women to enrol their children back to school” Olufunto added.

Ensuring education for the children reduces the care burden and time poverty of women and therefore empowers them to dedicate more time to paid work. The case of Bottles for Books echoes our impact evaluation. A diverse workforce is often linked to companies becoming more averse to risks and increased innovation and profit evaluation.

Women in leadership also lead to better policies related to decent work, which in turn can help to attract more women to join these organisations.

Can you relate to these findings in your own organisation? Feel free to share with us.