WOMEN CAN BOOST GLOBAL GDP BY 2 PER CENT
Says more women staff can add $150b to Indian GDP
DESPITE THE soaring rate of female entrepreneurs, Ms Trump said women, who want to start a business, still face steep obstacles such as access to capital, access to networks and mentors, and access to equitable laws.
Ivanka Trump, the adviser of the US President, on Tuesday said that families, economies, and societies reach their fullest potential only when women are empowered to thrive.
Speaking on the Global Entrepreneurship Summit’s theme “Women First, Prosperity For All” at the inaugural session, Ms Trump said that “fueling the growth of women-led businesses isn’t simply good for our society – it’s good for our economy. One study estimates that closing the gender entrepreneurship gap worldwide could grow our global GDP by as much as two per cent.”
If India closes the labourforce gender gap by half, she said the country’s economy could grow by over $150 billion in the next three years.
“When women work, it creates a unique multiplier effect. Women are more likely than men to hire other women, and to give them access to capital, mentorship and networks. Women are also more likely to reinvest their income back in their families and communities,” Ms Trump explained.
In the last decade, she said women in the US have made remarkable strides in starting new businesses.
“Globally, between 2014 and 2016, entrepreneurship activity among women increased by 10 per cent. In the United States, within the last decade, the number of women-owned firms has grown by 45 per cent. Even more promising, minority women have started nearly eight in 10 new womenowned businesses. Today, more than 11 million women in the United States own businesses. They employ nearly nine million workers, and generate over $1 trillion dollars in revenue.”
Despite the soaring rate of female entrepreneurs, Ms Trump said women, who want to start a business, still face steep obstacles such as access to capital, access to networks and mentors, and access to equitable laws.
“In developing countries, 70 per cent of women-owned small and medium-sized businesses are denied access to capital. The result has been a nearly $300 billion annual credit deficit for women entrepreneurs in the developing world,” she said.
The adviser to the US President said women entrepreneurs
received less than three per cent of venture capital funding in 2016.
Quoting a Harvard Business Review report, Ms Trump said investors ask men questions about their potential for gains whereas they ask women questions about their potential for loss. “We are working to reverse this trend. The US Small Business Administration, for example, increased its lending to women by over $500 million dollars this year alone.”
She said the US administration is promote greater opportunity for women around the world, both through domestic and international initiatives.
Ms Trump said the United States joined a new initiative with the World Bank – the Women Entrepreneurs Finance Initiative, or WeFi.
This, she said, provides access to capital, networks, and mentorship for women in developing countries by leveraging in excess of $1 billion in investment.