While more women have joined the workforce, the trend is slower when it comes to entrepreneurs and those in key management roles, said Kwang.
SINGAPORE: Women entrepreneurs need more targeted support in areas like networking and mentorship to overcome societal barriers that might hinder them from growing their businesses, given that these make up only a small proportion of high-growth companies across the Asia-Pacific.
The observation is gleaned from a report by JPMorgan released on Wednesday, which found that just 5.7%, or 848 companies, of 15,000 high-growth private businesses in the region were founded, co-founded, led or managed by women as at the end of 2021.
High-growth businesses refer to companies that have secured significant funding in recent years – through Series A to J funding, private equity or private debt – and have potential to raise more capital for future growth.
Commenting on the report during a visit to Singapore last week, JPMorgan’s Asia-Pacific private bank chief executive Kwang Kam Shing said: “We have been serving ultra-high net worth individuals and families in the region, and I have to say, women are not well represented.
“For the most part, the decision-makers we are dealing with are men.
“But this is changing. We are seeing more and more women, whether they are first-generation founders or entrepreneurs of their own businesses, or daughters of founders. When they take over, we can see the value-add they bring to the business.”
While more women have joined the workforce, the trend is slower when it comes to entrepreneurs and those in key management roles, she added.
The report, which studied “women-powered” businesses across 12 Asia-Pacific markets – where women are founders or co-founders, or hold C-suite management positions – also found that Singapore had the second-highest proportion of women-powered businesses in the region, at 13% of all high-growth businesses here.
Malaysia emerged top, with 16%. Japan had the lowest proportion, at 2.5%, followed by Taiwan at 4.1% and China at 5%.
These figures are not enough, said Kwang.
“Half the world is made up of men and the other half is women, so in everything we do, half of the representation should come from women,” she said, citing McKinsey research estimating that advancing women’s equality could add US$4.5 trillion (RM20 trillion) to the Asia-Pacific’s collective annual gross domestic product in 2025.
Singapore women-powered businesses raised the second-highest volume of US$2.4bil (RM11bil) among the 12 Asia-Pacific markets. This accounted for 6.7% of the total funds raised by these businesses in the region as at April 2022.
China took first place due to its large size, with women-powered businesses there raising US$27bil (RM122bil), or 72%, of total funds raised by these companies in the Asia-Pacific.
Still, Kwang noted the persistence of a funding gap, adding: “The portion of capital (women-powered businesses) raised is really a much smaller proportion of what’s available in the market.”
Fifteen of the 98 high-growth, women-powered companies in Singapore made it to a list compiled by JPMorgan of the top 100 such businesses in the region.
The ranking uses methodology by professional services firm EY that considers a company’s revenue and workforce size, total funding since its inception, investor confidence and industry.
More than half of the Singapore list-makers came from the tech sector, a key driver of Singapore’s economy, noted JPMorgan.
To further boost women’s presence, the government and business community can create more platforms to help them build their expertise and learn from one another, say industry players.
Jennifer Zhang, chief executive and co-founder of Singapore-based artificial intelligence start-up WIZ.AI, which was featured on the list, suggested introducing more mentorship opportunities and a wider range of programmes to nurture women’s and girls’ interest in technology.
There can also be more opportunities for them to discuss emerging trends and products in the tech space, as well as develop their management skills, added Zhang, who started her company in 2019.
“Most of the time, I think if you present a valuable company, idea and products, and you have a fitting personality and a good team, it shouldn’t be too much of a challenge (to get funding).
“No matter what, money is driven by facts more than gender,” she said.
Her company’s Talkbots can converse in various languages and colloquial forms of English such as Singlish and Taglish (a form of Filipino English).
It has more than 200 large clients, including in banking, telecommunications and healthcare, in addition to smaller companies.
Kwang noted that the Singapore government has grown the entrepreneurship ecosystem through platforms such as Startup SG, which provides mentorship, funding and opportunities for private sector investments.
“But these are generic; more concerted efforts by the government to help women entrepreneurs will beef up the percentage here,” added Kwang, who previously headed JPMorgan in Singapore.
There is also a lack of networking opportunities for women entrepreneurs to learn from their peers and secure funding crucial to growing their businesses, she said.
“We have to create ecosystems that will help them get started so they can move on from there. Networking is really important when it comes to business,” she said, adding that these initiatives need to be improved in both the public and private sectors. — The Straits Times/ANN
