In the last few decades, the role of women in the workplace has changed dramatically. In 1950, roughly 30% of women were participants in the workforce. Fast forward fifty years, and that percentage has increased to almost 50%. Women now have seats at some of the most important tables — and women-owned businesses have become the norm.
That being said, there are still stark gendered differences in business performance and opportunity. Despite incredible progress, women continue to be underestimated at many junctures in their careers. Yet, study after study shows that female-led companies tend to outperform projections — and often exceed the performance of their male-led counterparts.
Here are the top reasons why women-owned businesses succeed, and what today’s market can learn from them.
Women Are Undervalued
According to a comprehensive study by the Boston Consulting Group, startups founded or cofounded by women receive less than 50% of the venture capital funding awarded to male-founded companies. In fact, women-owned companies receive just 4.4% of all venture deals — only 2% of total funding — even after controlling for variables like education level and quality of the pitch.
Despite their growing role in the workforce, female entrepreneurs and women in leadership continue to be undervalued by investors.
Women Generally Deliver Better Results
Some assume that lower funding means lower-quality ideas. The data tells a different story.
Despite receiving less than half the capital, women-owned businesses generate more revenue on average than those founded by men. Companies founded or co-founded by women generate an average of $730,000, compared to $662,000 for male-founded companies — and they do it with fewer resources.
That translates to women-owned companies producing 78 cents per dollar invested, compared to just 31 cents for male-founded companies.
The reasons for the disparity likely include that women’s presentations are more likely to receive pushback. Men are more likely to overstate projections and oversell their ideas.
Women-owned recruiting firms, consultancies, and startups alike more than account for the unequal playing field — and often excel because of their resilience, collaboration, and strategic leadership.
Women Draw From Experience
Thirdly, and most importantly, women tend to have a strong grasp of what their target market wants. Many male investors have little to no familiarity with products and services marketed specifically to women, so their invested dollars are easily misallocated. Over 90% of venture capital investors are men, so their judgment of which women-based ideas have the most merit cannot possibly be accurate.
Women founders often build solutions around real needs — drawing from personal and professional insights that directly inform their products, services, and talent acquisition strategies. Men are less likely to do so, relying on intuition and projections. Since many new products cater to women, those startups that have women in leadership roles have a higher chance of succeeding.
TalentSpark – A Proud Women-Owned Business and Recruiting Firm
At TalentSpark, we’re proud to be a women-owned recruiting firm helping organizations across Idaho and beyond find the right leaders for lasting success.
Our team combines decades of experience in executive recruiting, professional recruiting services, and leadership hiring to help businesses grow with confidence. We’re deeply connected to the Idaho recruiting market, giving us an edge in finding top talent that aligns with your company’s culture and goals.
Whether you’re looking to add strong finance and accounting leadership or build a more inclusive team, TalentSpark is your trusted partner. We know firsthand that women-led companies don’t just succeed — they lead with purpose, strategy, and heart.
Reach out to our team today to learn how our women-owned business can help you find your next great hire.
