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Largest growing economic force and a threat
New global research released by the United States-based Boston Consulting Group (BCG) has revealed that women are increasingly defining the entrepreneurial economy and will create 70% of the global growth in income at the household level over the next five years. At executive level, however, they still lag behind. But the economic rise of women can also pose a threat to the economy.
The BCG research – which surveyed 12 000 women in 22 countries – found that women spend over 70% of consumer dollars worldwide. The study further found that women account for half of university students across the globe.
The findings led CNN to declare recently that, “the largest growing economic force in the world isn't China or India – it is women”.
Despite these gains, Michael Silverstein, a partner at BCG, said in the report that women still earn only 77 cents for every dollar men do. And the ranks of female chief executive officers are still thin. "Most of the big companies are worked by men, for men," he said.
Dr Marjolijn Dijksterhuis, director of the Women in Leadership Programme that runs at the University of Cape Town Graduate School of Business in May and July this year, argues that much needs to be done in order help women break through the glass ceiling that exists in many organisations.
“This increasing centrality of women to driving growth is not reflected at the senior level of business and government, where women are increasingly present, but still the minority,” she said.
“Women have a bigger role to play at the level where executive decisions are made.”
Also a threat
Research in Europe, however, seems to indicate that the economic rise of women contributes considerably to the decline of population in most European countries. This trend could pose a major threat to the economies of those countries in the medium- and longer term.
Many European countries are showing negative population growth, with Europe’s strongest economy – Germany – one of the worst hit by this trend. For a number of years now, that country’s population, even despite widespread migration from countries such as Turkey, has declined by about half a million people per year.
Researchers attribute this trend, among others, to the fact that by and large the work environment does not cater sufficiently to the needs of women with children. Most often, women have to chose between a professional career and raising a family.
While this situation may go some way to explain why women are not coming through in expected numbers at demanding executive levels, it is also true that increasing numbers of them do choose a career path. It is the latter who contribute heavily to declining population figures.
The GSB Women in Leadership Programme is one of a few in the country to target women at this level, and it has been designed to facilitate the jump to senior leadership by grooming proven women managers to become contemporary leaders able to deal with the complex and ever changing business world of today.
In fact, Dijksterhuis maintains that the shifting business landscape and the growing calls for something other than “business as usual” in the midst of the fallout from this year’s economic downturn could further count in women’s favour as they look to break into more senior positions.
“The increasing complexity and uncertainty of business in a globalised world are waking us up to the limitations of traditional management paradigms. It is becoming clearer that the ability to lead people through change and toward co-operation and innovation has become essential to the success of organisations, and companies are now looking for leaders who can inspire that change.
“I believe women have much to offer in terms of these more people-oriented demands,” she said.
Dijksterhuis, however, emphasised that the Women in Leadership Programme is not about creating an “us versus them” mentality, but instead recognises that women in the workplace often share similar experiences and challenges, and that understanding these is the first step to overcoming them.
The course is offered by the Executive Education Unit of the UCT GSB and runs this May. It is aimed at women in middle or senior level positions.
Contact Junita Abrahams on 021 406 1323 or e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
