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Linking BusinessWomen Worldwide GLOBEWOMEN ENEWS ISSUE NO. LXIII, AUGUST 30, 2007
THIS ISSUE’S HIGHLIGHTS:
I. 2008 GLOBAL SUMMIT OF WOMEN – VIETNAM II. ERASING THE GENDER GAP ON CORPORATE BOARDS: PROGRESS REPORT ON NORWAY’S LEGISLATIVE INITIATIVE III. RANKING COUNTRIES ON WOMEN’S BUSINESS LEADERSHIP IV. STATUS REPORT ON U.S. WOMEN-OWNED BUSINESSES
I. 2008 GLOBAL SUMMIT OF WOMEN – VIETNAM Vietnam, the new Asian ‘tiger’ economy will host the 2008 Global Summit of Women in Ho Chi Minh City (Saigon) from May 29-31st. Posting an annual growth rate of 8%, Vietnam is an ideal venue for a global gathering of women business and government leaders to revisit the dynamic Asia-Pacific region, now viewed by economists as the “new center of gravity in the world’s economy” led by China and India. This is also a region where traditionally women have led countries as exemplified currently by the Presidents of India, Philippines, and New Zealand
In the world of business, whether corporate or entrepreneurial, Asia-Pacific women have had a long history of playing major roles, as confirmed by a recent survey summarized below. Vietnam itself has almost a third of its largest companies headed by women, as reported in the Wall Street Journal and summarized in the last issue of GlobeWomen eNews. Its largest company is headed by a woman and the agency charged with privatizing government-owned companies is also chaired by a woman. “We are looking forward to giving Summit delegates a window on the Asia-Pacific market in general, and the Vietnamese market, in particular, as well as showcasing the women business leaders in this vast region,” states Summit President Irene Natividad. “This area comprises two thirds of the world, and its economic growth impacts greatly the future of other economies around the globe, so savvy businesswomen must get to know it and establish networks within it,” she adds.
II. ERASING THE GENDER GAP ON CORPORATE BOARDS In its 2007 study, “Women Directors in the Fortune Global 200 Companies” released in Berlin at the June Global Summit of Women, Corporate Women Directors International reported that only 11.2% of corporate board seats are held by women in the 200 largest companies in the world. This paltry number does not reflect women’s important role as major stakeholders as workers, consumers, and investors in these companies. Norway has taken an innovative approach to addressing the lack of female board representation in Norwegian corporations by passing an innovative law in 2006 requiring that 40% of corporate board seats must be given to women within a two year period. Since then, other countries – Sweden, Finland, Iceland, Switzerland, Spain – have passed different versions of this model with varying percentages as requirements.
How is Norway progressing towards its goal? According to the Center for Corporate Diversity in Oslo, 60% of publicly listed companies have reached this target. At present, 80% of Norwegian companies have women on their boards, and it is expected that 90% will be reached by Fall 2007. The number of companies with no female directors has decreased considerably from 190 in March 2007 to 94 in July. What these results show is that the law has had a positive impact in accelerating the inclusion of women into corporate boards. At present, Norway has the highest proportion of women corporate directors than in any other country in the world. By the end of 2007, all of its companies must meet the 40% target for female directors, and those companies who do not comply face the threat of being dissolved by the government. Given Norway’s success in implementing a difficult mandate, several countries are now looking at the possibility of replicating this policy to establish board diversity in their companies. (Source: Center for Corporate Diversity, 7/1/07)
III. RANKING COUNTRIES ON WOMEN’S BUSINESS RESEARCH A March 2007 report by Grant Thornton International, an accounting and management consulting firm, found that 38% of medium-sized businesses in 32 countries (representing 81% of global GDP) had no women in senior management. Overall, less than a quarter (22%) of senior positions are held by women. The Philippines ranked first with 97% of medium-sized businesses having women in senior management positions.
Among the five countries with the lowest percentage, four are European countries – Netherlands (27%), Luxembourg (37%), Germany (41%) and Italy (42%). At the bottom of the entire ranking of 32 countries is Japan with only 25% female representation in senior management roles. Regionally, European businesses did not fare as well as the Americas in the percentage of female senior managers – 52% to 68%. Overall, Asian economies lead in having more women with responsible positions in businesses based there with not only the Philippines, but also China, Malaysia, Hong Kong, Thailand, Taiwan in the top ten ranking. In Africa, both South Africa and Botswana, with 77% and 74% respectively of women in senior posts, are also in the top tier. (Source: Grant Thornton, 3/07).
IV. STATUS REPORT ON U.S. WOMEN-OWNED BUSINESSES Women-owned businesses in the United States continue to grow in number and size. According to the Center for Women’s Business Research, women-owned firms grew at twice the rate of other businesses – 42% vs. 24% -- from 1997 to 2006. These businesses generate almost $2 trillion in sales and employ 13 million people. Women of color in the U.S. are just as actively involved in entrepreneurship. They own 2.4 million firms, employ 1.6 million people and generate $230 billion in sales. The Center’s current report also finds the majority of women business owners (83%) personally involved in selecting and purchasing technology for their businesses. (Source: Center for Women’s Business Research, 8/28/07)
A survey conducted online by FileMaker, Inc. of U.S. women-owned businesses with less than 100 employees also found opinions about entrepreneurship that are similar to those of women in other countries. The majority (61%) said the primary reason they started their own businesses was “independence to be my own boss,” while 13% wanted more convenient hours to balance work and family and only 8% said that “making more money” was their primary reason for starting their own businesses. What they discovered, however, was that “the business takes more of my time than I expected;” 43% found that “they made less money than I thought I would;” 36% were surprised that their business “requires more capital” than expected;” and 35% felt that running their own business “is more stressful than I expected.”
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