Recently Forbes came out with an article listing the “6 Emerging Female Entrepreneurs To Watch In Africa.” The article highlighted entrepreneurs from different countries within Africa. In the previous month the venture capital industry became aware of growing success of female entrepreneurs. This came to fruition by early stage venture firm First Round Capital. The firm announced their research which stated that the portfolio “companies with a female founder performed 63% better than our investments with all-male founding teams.” This find has been echoed by other research conducted by other studies and cases around the globe.
Many women face a glass ceiling in corporate industries spanning across continents. It is a well documented fact that predominantly male industries do not pay women equal compensation for equal work. The theory suggesting that this is the reason for an increase in female entrepreneurship could hold weight. However, First Round Capital Partner Josh Kopelman was not able to clearly define or pinpoint the reason for female founded companies to seeing this benefit. Kopelman believed that it may either be attributed to the positive benefits of a diverse thinking and skill or the pressure for women founders to perform much better due to bias in the industry.
The findings in the research, regardless of reasons attributing the statistics tells us there is a compelling wave and paradigm shift in how we should look at female entrepreneurship. This will be a good indication for investors who are looking for investments that can beat the probability of loss when discovering promising entrepreneurs to invest in.
Investment in more African female entrepreneurs is vital in the ever growing economies. For developing markets in Africa, where the investment culture was a novelty and is now being shaped, The right investments will echo to exponential growth in several industries on the continent.
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