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Doing business management like a successful woman

Dr Biz • Sep 22, 2020

Women often face unique challenges in business management. In what is still a male dominated world, getting a business off the ground is not always easy. A recent study from Boston Consulting Group, for example, found that business women in the US tend to attract significantly less investment than men, with female-led start-ups winning an average of USD $935,000 in initial funding compared to $2.1 million for their male-led counterparts.

Interestingly, however, the same study found that once the business was running, new companies led by women tended to generate more than double the revenue of those led by men, at 78 cents on the dollar compared to just 31 cents for men. So, could it be that women are better business managers than men? As lower risk takers with a more conservative and considered approach, women are proving to be some of the business world’s most effective managers.

Time management like a boss-woman

Search ‘business management for women’ and you are likely to face a barrage of articles explaining how difficult it is for women to manage their busy lives and run a business at the same time. This, according to the Harvard Business School, is one of the many myths that still pervades when it comes to women in business, which is often a result of the idea that - as birth-givers typically shouldering the responsibility of raising children - women have much less time for business than men.

Again, though, the results don’t back this assumption up. In a 360 degree review of businesses in the US, Harvard found that women leaders scored higher than men in a number of categories pertaining to time management, including establishing and stretching goals (women scored 52.6 compared to 49.7 for men), solving problems and analysing issues (51.5 vs. 50.4) and leadership speed (51.5 vs. 50.5). As the old saying goes: if you want something done, give it to a busy woman!

Honesty and patience win the day

Now, no-one is saying that men are liars - of course not! However, the Boston Consulting Group did find that one of the reasons women tend to attract less investment than men is because they tend to be much more conservative (some might say ‘realistic’) when it comes to projecting revenue and growth. While not impressing as much as the big ball-park figures thrown around by their male counterparts, this honesty and patience did, as we saw above, lead to better business management results - much better, in-fact.

Similarly, Harvard found that honesty can hold women back at the start of their careers, with women less likely than men to apply for a role they are not fully qualified for. While females will wait until they have the qualifications, skills and experience a role requires before going for it, men are more likely to ‘have a go’ anyway. Again, though, women's honesty and patience tends to lead to better results. In-fact, in the Harvard study mentioned above, women leaders scored higher than male leaders in 17 out of the 19 categories covered in the review, with ‘displays high honesty and integrity’ an area female bosses had one of the strongest leads (4.9 points) over male bosses.

Take the lead and inspire others

Considering the above, many might be surprised to learn the category that female bosses took the strongest lead in business management over their male colleagues: taking initiative. That’s right! It turns-out that being more cautious, realistic, honest and patient, doesn’t prevent bold leadership and initiative taking. Quite the opposite! We need only look to some of Singapore’s most inspiring female entrepreneurs for evidence of this: when it comes to championing a new idea or new way of doing business, women are more likely to find innovative ways to tackle past problems and fresh challenges.

Developing, inspiring and motivating others is another area that women take a strong lead, with female bosses tending to spend more time searching out and developing the strengths of their employees. Indeed, the only area that women tend to score poorly is confidence. The Harvard study found that, when women were asked to assess themselves, they actually gave lower ratings than their male colleagues, who consistently rated their female coworkers highly in almost every category.

The biggest difference in confidence is among women under 25, who are statistically much less bold than their male counterparts. This does, however, start to change around the age of 40. Those women that do succeed in business management, report the same levels of confidence in their abilities as men do around middle age. Then at age 60, womens’ belief in their abilities actually starts to out-pace mens’, whose confidence begins to decline. It could be possible, then, that starting out with lower confidence is a woman’s superpower - leading to caution, honesty and patience that ends in stronger long-term results.

At Dr Biz, we provide tailored and comprehensive solutions for our client's business needs. From incorporation to accountancy, tax and payroll, to professional advisory services, we help businesses in Singapore assess potential risks and become more cost effective and efficient.

To find out more, please feel free to contact us.

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