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Since its inception, the tech sector has had low representation of women; however, current statistics show that there is improved representation of women as founders and leaders of tech startups. Different studies prove that companies with more women in top positions perform better. Let’s take a closer look at some of the effects of female leadership on technology-based startups.

Why More Women Should Be in Leadership Positions

It’s important to have more women as startup founders and leaders for several reasons. First, technological products are useful to both men and women, and having a representation of the target consumers aids in making products suitable for all target users.

Second, it has been suggested in research that firms with higher levels of gender equality, including at the managerial level, are more financially profitable. Third, female leaders get more women into the industry by example and encouragement.

Although, the number of technology-based companies with female founders is on the rise, gender gaps persist. Female entrepreneurs control less than 10-15% of all the technology enterprises in the United States.

Some of the challenges include lack of funding for women-led startups. Despite the increasing attention to gender diversity in entrepreneurship, startups founded by only males increased to 83% of total VC funding between 2009-2017. However, there is a gradual shift as more female VCs are coming up to fund female founders.

How Women Lead Differently

Studies show some general distinctions between males and females in leadership styles that affect the culture and success of a startup. Women are particularly inclined to democratic or participative leadership styles, with an emphasis on collaboration and communication. This is advantageous in that it nurtures talents and fosters creativity which are vital in startups.

Research also reveals that female leaders perform well in transnational leadership by inspiring change wherein they act as role models and are mainly concerned with the growth of subordinates through skills and training. This results in increased levels of satisfaction and lower turnover among the employees.

Furthermore, women have higher results in the areas of emotional intelligence and empathy, which helps in identifying the needs and attitudes of employees. This fosters a startup culture where everyone is heard and appreciated in equal measure.

Challenges that Come with the Management of Women Leaders

It’s obvious that female leadership offers a great value, however, gender stereotyping and discrimination remain an issue in tech companies. Starting from the ways of getting a job and financing up to the reception of micro-aggressions every day, women face a lot of challenges. They’re often second-guessed, assumed to be inferior, and criticized more severely if they make a mistake, among other discriminations that cut across gender bias.

Sexual harassment has not been left behind either and 60% of women in STEM report that they have been harassed. Such a toxic environment contributes to the attrition of many gifted women entrepreneurs and executives. Moreover, the lack of guidance and support in the form of sponsors and limited networking opportunities are challenges that hinder the career development of women in technology.

Papaya Global is a perfect example of a successful startup company in the technology sector headed by a woman who is also the CEO of the company. You can visit their website at www.papayaglobal.com.

Positive Impacts Emerging

Despite all these challenges, women are coming out to fight and take more leadership roles in the startup ecosystem. And their leadership is catalyzing positive impacts within tech:

1. Financial Returns

Businesses with a minimum of one female entrepreneur yield greater ROI; they earn 2.2X as much per dollar invested compared to all-male counterparts.

2. Innovation

Diverse founding teams generate creativity by having individuals with different genders subconsciously influence their ideas. Patents created by mixed gender teams have more than 80% women inventors.

3. Values

Female tech leaders influence the culture and ensure that a company has policies that accept diversity, inclusion, and flexible working. This opens up opportunities for the marginalized in society.

4. Products

The two important aspects of product design that women have been proven to excel at are identifying various users and analyzing their needs and issues. This fosters creation of products that are easy to use, are human-centered, and enhance the lives of users regardless of their gender, ethnicity, or social status.

The Way Forward

It’s worth mentioning that great strides have been made in this direction, but the struggle for equal status of women as startup founders and leaders is far from complete. Key ways we can continue advancing gender diversity in tech leadership include:

• Increasing the availability of funds for women entrepreneurs
• Employing more female leaders at all organizational levels
• Developing a work culture promoting inclusion and freedom from harassment
• Developing leadership development and mentorship for men and women at the grassroots level
• Highlighting women’s startup stories to encourage the next generation

The message, therefore, cannot be clearer – female leadership is advantageous to tech startups in the financial, cultural, and social context. It’s essential to drive the advancement of more skilled female founders and leaders to achieve technology innovation as planned. Leadership participation from different members ensures high performance, opens doors for more marginalized people, and brings the industry closer to equality.