When It Comes To Business Here’s Why Everyone Wins When Females Are Backed

Women make up over half of Aotearoa’s population. But, according to a recent Westpac economic report, less than a third of our businesses are owned by women. The kicker? It’s not because women aren’t good at business. Studies show women perform just as well as men in business, if not better.

When we dig deeper the challenge is that many women still face extra hurdles when it comes to starting and scaling a business, from accessing capital, to building the networks and connections that can help take an idea from “I’ve got a good concept” to “I’ve built something huge.”

At the heart of it is this picture we’ve traditionally had of a high-achieving entrepreneur. And you don’t need to pull a tarot card to guess that this image hasn’t always represented the full range of people building brilliant businesses today.

While things are changing, old patterns and established networks can still influence who gets access to investment and opportunities to grow. And that means Aotearoa could be missing out on some seriously big potential. In fact, supporting more women-led businesses could unlock an estimated $25 billion boost to New Zealand’s GDP. (For anyone who skipped economics class, GDP stands for gross domestic product—it’s basically a measure of how big an economy is.)

So, to get to the bottom of what’s holding women back, and what happens when ambition gets the backing it deserves, we teamed up with the legends at Westpac. Here's what they have to say. 

The Real Barriers Holding Women Back

The Encouraging More Women-Led Businesses report found that in 2024, women-owned businesses in Aotearoa got less than 3% of total venture capital, but businesses owned by men snagged 60% of the pie.

But here’s the thing: this isn’t about a lack of talent or big ideas. Actually it’s far from it.

A study by Boston Consulting Group found companies founded or co-founded by women generated 78 US cents in revenue for every dollar invested, compared with 31 US cents for startups founded by men. Translation? Women-led businesses are delivering serious results.

One of the biggest challenges comes down to access. Many early-stage investors rely on existing networks and connections when deciding which businesses to back. But because those networks haven’t always been equally accessible, some founders can find it harder to get in the room, make the right connections and have their ideas recognised.

Without early-stage funding, scaling a business quickly becomes a much bigger challenge. As a result, many women build businesses around sustainable, long-term growth. And while there’s nothing wrong with that (in fact, these businesses are often incredibly valuable), traditional venture capital has historically favoured rapid-growth models—meaning some high-potential businesses may not get the opportunity to reach their full potential.

The good news? Aotearoa already has a strong foundation to build from. New Zealand was ranked 2nd in the 2021 Mastercard Index of Women Entrepreneurs for our “strong institutions, education and support settings that enable women’s participation in business.”

But there’s still plenty of room to level up.

What It Looks Like When Ambition Is Properly Backed

When more women have the opportunity to start and scale businesses, everyone wins.

More diverse products and services make their way into the world, more communities see their needs reflected, and successful women entrepreneurs go on to create jobs, mentor others and help grow the next generation of founders.

Basically, backing women in business isn’t just good for women—it’s good for Aotearoa’s economy.

That’s why initiatives like Westpac’s $100m lending commitment for startup businesses, with a focus on women-led businesses, matter. Alongside this, their partnership with re:amped by Marisa Fong gives Westpac’s women business clients access to 12 months of free networking, mentoring and coaching. Because sometimes the difference between a good idea and a great business is having the right support system around you.

And there’s already progress worth celebrating. In the early 2000s, just 6% of women in Aotearoa were entrepreneurs compared to 13% of men. Today, that figure has grown to 10%—a pretty impressive shift when you consider the hurdles many women have had to navigate along the way.

The more we recognise the value, ambition and potential of women-led businesses, the more Aotearoa benefits. Because when great ideas get the backing they deserve, everyone gets to share in the win.

Editor’s note: This article is sponsored by Westpac and proudly endorsed by The Urban List. To find out more about who we work with and why, read our editorial policy here.

Image credit: Supplied