81% of family SMEs have women in leadership roles
According to the recently launched IFB Research Foundation The State of the Nation: The UK Family Business Sector 2019–20 report, 81.1% of all SME family firms have at least one woman in a leadership role, defined as an owner, partner, or director. The report also reveals that 22.6% of family-owned SMEs describe themselves as being “women-led”, that is with over half of owners, partners or directors being female.
Both figures exceed the equivalent findings for non-family SMEs, at 52.6 and 14.4% respectively.
Previous research by the IFB Research Foundation also found that the presence of a female on a board is associated with a higher profit margin and that promoting board gender diversity can support increased entrepreneurship and innovation.
Elizabeth Bagger, director general of the Institute for Family Business, said: “We are very encouraged to see that family businesses are leading the way when it comes to appointing female leaders and directors. Whilst we have come along way, there is more work to do to highlight the important contribution women leaders make to their family firms.
Research shows that gender diversity has a positive impact on business outcomes and can boost entrepreneurship. More representative companies can better understand what their customers want and need. We also know from experience that it matters to women to have other women – although not exclusively – as role models.”