Female Board Members Drive Growth in Male-Led Startups
Photo by Jason Goodman__source unsplash
A new study from Jönköping University (JU) and Erasmus University highlights the significant impact female board members have on male-led startups aiming for rapid growth. Their contributions to workforce development and recruitment are shown to be crucial for a company’s long-term success.
Unlike in larger, more established firms—where board responsibilities often focus on strategic decisions such as mergers and acquisitions—this research demonstrates that in startups, female board members play a pivotal role in talent acquisition and workplace development. They contribute by attracting top talent, advocating for competitive wages and improved working conditions, and fostering a more inclusive work environment.
A Measurable Impact on Business Performance
Researchers Lucia Naldi (MMTC, Jönköping University) and Zhiyan Wu (Erasmus University) analyzed data from 47,365 Swedish startups led by men between 2004 and 2017. The findings reveal that startups with at least one female board member experience an average sales increase of approximately 45%.
“Our findings show that female board members can make a substantial difference by shaping recruitment strategies and enhancing working conditions. This aspect is often overlooked in discussions about board roles, yet it is essential for male-led startups where talent and workplace environment are key drivers of success,” says Lucia Naldi
Challenging Traditional Assumptions
The study challenges the notion of "tokenism"—the idea that a single woman on a board serves only a symbolic role without real influence. Instead, the research demonstrates that even one female board member can have a transformative impact on hiring strategies and company culture.
“This is a critical insight for both entrepreneurs and investors. Board diversity is not just about gender equality—it is a fundamental driver of business success and competitiveness,” adds Naldi.
The researchers emphasize that these findings question traditional assumptions about women's roles on boards. Their presence in male-led startups is not solely about equality but also represents a strategic competitive advantage. By prioritizing workforce development and enhancing workplace conditions, startups can drive profitability and ensure long-term sustainability.
- Professor Business Administration
- Jönköping International Business School
- lucia.naldi@ju.se
