How can women-run companies grow beyond SME level?

dubai - Women are transforming economies through growth and innovation

Women in business are transforming recovering economies with higher economic contributions and a growth rate of five times the national average.

Research by American Express has revealed that in the aftermath of the recession in 2007-08, the growth in the number of women-owned firms in the United States surged to an unprecedented 45 per cent wherein overall firm formation is "still to pick up". While total business employment declined by one per cent since 2007, women-owned businesses increased employment by 18 per cent.

Business revenues also grew at a 30 per cent higher rate, with comparative revenue growth of 35 per cent by women-led firms against 27 per cent among all firms. The National Association of Women Business Owners estimates that there are more than 9.1 million companies owned by women, employing nearly 7.9 million people and generating over $1.4 trillion in sales. These statistics clearly highlight that in times of recession, women-led businesses lead both growth and innovation.

There are a number of factors that are driving women-owned businesses, particularly start-ups, and these trends are expected to only continue into 2017. Equal representation in the workforce has had tremendous implications as women in business are getting over the "second generation bias" that previous generations suffered due to the lack of leadership representation in the workforce. Recent census data from the United States showed that women consisted of 47 per cent of the workforce while men comprised 53 per cent.

Closer to home in the UAE, more women complete secondary education and enrol in university and post-graduate institutions than men. Ninety five per cent girls who complete their secondary education enrol in a higher education institution in the UAE or travel abroad to study compared to 80 per cent of boys. As His Highness Shaikh Zayed bin Sultan Al Nahyan, founder of the UAE, once said: "The greatest use that can be made of wealth is to invest it in creating generations of educated and trained people."

Workforce participation
This vision is well-reflected in the presence of women in the UAE's economic and political decision-making processes, with eight serving in the UAE Cabinet, accounting for 20 per cent of Federal National Council members, holding two-thirds of all public sector posts, filling 30 per cent of senior decision-making positions and making up 20 per cent of the diplomatic corps.

While women have proven their capabilities to start small businesses and create employment, research shows that women-run businesses only receive seven per cent of venture capital funding. Finding capital as a start-up is always difficult, irrespective of gender, and further funding in order to scale into a medium-sized enterprise is even more complex. Raising capital is a skill set in itself but the foundation to the perfect pitch is the 15-second elevator pitch.

In a recent survey of small business owners, 65 per cent say an elevator pitch has been a valuable tool in selling their business while 85 per cent say it is a must-have communication tool for success. My recommendation for a small business owner looking to raise capital is to begin by preparing an elevator speech that highlights what your business proposition is, particularly, how it is different from what is already available.

By focusing on the problem you are providing a solution for, you may just draw the attention of an investor who sees the potential and the benefit to them.

I have found that asking for feedback is a great way to gauge interest but also find flaws in the business that need correction. It is also a great way to invite further conversation. Finally, the most important step is to close. One of the most difficult things for women to do that most men find easier is to simply ask for the sale. My recommendation is to take the plunge and ask - you will be surprised by how many people say yes!

The writer is the CEO and joint managing director, Aiana Hotels & Resorts. Views expressed are her own and do not reflect the newspaper's policies.