Are Women Really Producing a Better Bottom Line?

MergeLane was established on a simple principle: investing in women is not only the right thing to do – it is the smart thing to do. In the time I’ve been working with MergeLane, I’ve researched over 1,600 companies with at least one woman in leadership. I have watched our startup accelerator graduate eight startups in its first year and ten startups in its second. What amazes me most about these companies is the breadth of industries they represent. From clothing to transportation, from candy to cybersecurity, these startups demonstrate that successful female leadership can be found in any kind of business. But, I’ve been wondering…does the fact that these leaders are women really make a difference?

I believe that investing in women makes good business sense, but I’ve learned that not everyone is in agreement. The past several years have produced a wealth of data and opinions on the financial outcomes of gender diversity and female leadership in business. Many studies demonstrate the benefits of having more women in business, particularly in leadership positions. Others show the opposite: that increasing the amount of women in business shows no or even a negative effect on the bottom line.

Woman in BusinessSo what should we believe? I spent some time researching the recent data on this subject. Below are some of the most interesting statistics I’ve found. 

There have undoubtedly been some reputable reports demonstrating equal or even less success for companies with increased female representation:

Taking a broader view, however, the majority of recent data points in the other direction:

So….do women increase the bottom line?
I’ll let you come to your own conclusion. From my experience and all of this research, it is pretty easy for me to come to mine.

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