Insight

Australia’s business landscape is undergoing a significant transformation, and women-owned businesses are at the forefront of this change. These enterprises are not only driving economic growth but also reshaping the way business is done in the country. As more women step into leadership roles and establish their own companies, they bring fresh perspectives, innovative solutions, and a commitment to diversity that is proving to be a game-changer for the Australian economy.

The Growing Influence of Women-Owned Businesses

Women-owned businesses in Australia are a powerful force, contributing significantly to the nation’s economic output. Women now make up 34.8% of all business operators in Australia, a number that continues to rise as more women venture into entrepreneurship. This growth is particularly notable in sectors such as technology, professional services, and retail, where women-led enterprises are thriving.

For example, Melanie Perkins, the co-founder and CEO of Canva, has transformed a simple design tool into a global powerhouse valued at over $40 billion. Perkins’ success is a clear demonstration of how women entrepreneurs are driving innovation and creating new market opportunities in traditionally male-dominated industries.

These businesses are not only creating jobs and generating revenue but also setting new standards for corporate culture. Recent findings by the Workplace Gender Equality Agency (WGEA) show that companies with female CEOs have increased their market value by 5%, a significant boost that highlights the financial benefits of gender-diverse leadership. Additionally, women-owned companies are more likely to implement flexible work policies and prioritise employee well-being, values that increasingly resonate with consumers who support companies that align with their personal values.

Challenges Faced by Women Entrepreneurs

Despite their success, women-owned businesses still face significant challenges that can hinder their growth and sustainability. Access to capital remains one of the most critical barriers. In 2023, it was reported that only 0.7% of private-sector funding went to startups founded solely by women. This disparity in funding is partly due to biases in the investment community, which can limit the ability of women-owned businesses to scale and compete on a larger stage.

Another challenge is the underrepresentation of women in certain industries, particularly in sectors like technology and finance. Only 16% of Australian tech startups are founded by women. This underrepresentation makes it difficult for women entrepreneurs to find mentors, networks, and role models who can guide them through the complexities of business ownership. Additionally, balancing the demands of running a business with personal and family responsibilities remains a significant hurdle for many women.

The Path to Greater Support and Success

To fully unlock the potential of women-owned businesses, it is essential to address these challenges head-on. One of the most effective ways to support women entrepreneurs is by increasing their access to funding. This can be achieved through initiatives like the Boosting Female Founders Initiative, which provides grants of up to $480,000 to female entrepreneurs, particularly those in rural and regional areas. Such targeted support can help women overcome financial barriers and scale their businesses more effectively.

Mentorship and networking opportunities are also critical. Programs like SheStarts - a tech-focused accelerator for women - are providing female founders with the resources, mentorship, and peer networks needed to succeed.

Corporate and government procurement policies can be powerful tools for driving change. The Women in Business Program in Victoria, for instance, offers a range of support, including grants, networking opportunities, and mentorship specifically for women entrepreneurs, such as:

• 
  Boosting Female Founders Initiative: Provides grants of up to $480,000 to support female entrepreneurs, particularly in rural and regional areas, in launching and scaling their businesses.
• Women in Business Program (Victoria): Offers a variety of support, including grants, networking opportunities, and mentorship, specifically tailored for women entrepreneurs in Victoria.
• Women’s Leadership and Development Program (WLDP): Funds projects that advance gender equality by improving outcomes for women, focusing on leadership and business opportunities.
• Entrepreneurs’ Programme: While not exclusively for women, this program offers funding and expert advice to help businesses innovate, compete, and grow. Many female-led businesses have successfully leveraged this program.
• Advancing Women in Business Initiative (Queensland): Supports female entrepreneurs through funding opportunities, leadership programs, and networking events designed to enhance business skills and access to markets.

The Broader Impact on the Economy

Supporting women-owned businesses isn’t just about fairness - it’s about smart economics. A recent report found that increasing the share of female key management personnel by 10 percentage points or more can lead to a 6.6% increase in the market value of Australian ASX-listed companies​ (Forbes Australia). By encouraging more women to start and grow their businesses, we can drive innovation, enhance competition, and create a more resilient economy.

As more and more women step into leadership roles and build successful enterprises, they are challenging traditional business models and setting new standards for innovation and inclusivity. However, to fully harness the potential of these businesses, it’s crucial that we continue to address the barriers they face and provide the support they need to thrive.

At EGC, we are committed to championing women entrepreneurs and fostering a business environment that values diversity and inclusion. By working together, we can build a more equitable and prosperous future for all.