Female board members boost male-led new ventures

Female board members have a clear impact on male-led new ventures that aim to grow rapidly. This is shown by a new study from Jönköping University (JU) and Erasmus University. The study highlights that their contribution to workforce development and recruitment can be crucial for the long-term success of companies.

Unlike in larger, more established companies, where board work often involves strategic decisions such as mergers and acquisitions, the research shows that female board members in new ventures instead play a central role in workforce development. They contribute by recruiting highly skilled employees, advocating for better wages and working conditions, and creating a more inclusive work environment.

Female board members can make a big difference

Researchers Lucia Naldi at Jönköping University and Zhiyan Wu at Erasmus University have analysed data from 47,365 Swedish new ventures, led by men, between 2004 and 2017. The results show that male-led new ventures that recruit at least one female board member increase their sales by approximately 45% on average.

"Our results show that female board members can make a big difference by influencing recruitment strategies and creating better working conditions. This is an aspect that is often overlooked in discussions about the role of the board, but it is crucial for male-led new ventures where talent and work environment are key factors," says Lucia Naldi, Professor of Business Administration at Jönköping International Business School, JU.

Challenging traditional assumptions

The study contradicts the idea of "tokenism" – that a single woman on the board would only have a symbolic role without real impact. On the contrary, the research shows that even a single female board member can play a crucial role by influencing the company's recruitment strategies and work climate.

"This is an important insight for both entrepreneurs and investors. Diversity on the board is not just a matter of equality – it is a matter of the company's success and competitiveness," continues Lucia Naldi.

The researchers argue that the results challenge traditional assumptions about women's roles on boards and show that their presence in male-led new ventures is not just about equality but also constitutes a strategic competitive advantage. By investing in workforce development and creating better conditions for their employees, startups can become more profitable and sustainable in the long term.

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